意见反馈 手机随时随地看行情
  • 公司公告

公司公告

拓普集团:Tuopu Group Annual Report 20202021-06-03  

                        Stock Code: 601689                     Abbr.: Tuopu Group




               Ningbo Tuopu Group Co., Ltd.
                   Annual Report 2020




                        April 2021
Ningbo Tuopu Group Co., Ltd.                                                          Annual Report 2020




                                          Important Notes
I. The Board of Directors, Board of Supervisors, Directors, Supervisors and Senior Management
of Ningbo Tuopu Group Co., Ltd. hereby guarantee that the information presented in this report
shall be authentic, accurate and complete and free of any false records, misleading statements or
material omissions, and they will bear joint and several liability for such information.

II. All directors attended the meeting of the Board of Directors.

III. BDO China Shu Lun Pan Certified Public Accountants LLP (Special General Partnership)
issued a standard and unqualified audit report for the Company.

IV. Wu Jianshu, a person in charge of the Company, Hong Tieyang, an officer in charge of
accounting work and accounting institution (Accounting Officer) hereby declare and warrant that
the financial statements in the annual report are authentic, accurate, and complete.

V. The profit distribution plan for the reporting period or the plan for converting public reserve
funds into additional share capital after consideration by the Board of Directors
      As audited by BDO China Shu Lun Pan Certified Public Accountants LLP (Special General
Partnership), Ningbo Tuopu Group Co., Ltd. (“The Parent Company”) realized a net profit at RMB
620,890,219.47 in 2020, after a statutory surplus reserve at RMB 62,089,021.95 is withdrawn at 10% of
the realized net profit, the profit available for distribution in the year is RMB 558,801,197.52; with the
undistributed profit at the beginning of the year at RMB 2,539,788,223.59 added, and the cash dividends
at RMB 200,447,672.31 distributed in 2020 deducted, the cumulative profit available for distribution at
the end of 2020 is RMB 2,898,141,748.80.
      According to the resolution passed at the 6th meeting of the fourth Board of Directors of the
Company, the profit distribution plan laid down for 2020 is: with a total of 1,102,046,572 shares on the
date of plan announcement as the base number, RMB 1.72 per 10 shares (tax included) will be
distributed to all shareholders as cash dividends. Then the gross amount of cash dividends proposed for
distribution is RMB 189,552,010.38 (tax included), in 30.17% of the net profit attributable to
shareholders of public company. The remaining undistributed profit rolls over to the next year. The
Company will not convert any public reserve funds into additional share capital or issue any bonus
shares this year.
      If there is a change in the said total shares in the period from the date of the announcement of profit
distribution plan to the record date for distribution, the Company is prepared to keep the gross amount of
cash dividends as stated above, adjust the proportion of dividend per share, and otherwise announce the
particulars of adjustment.
      The above profit distribution plan is prospectively submitted to the general meeting of the
Company for consideration.


VI. Risk statement of forward-looking statements
√Applicable □Non-applicable
      The forward-looking description of the future development strategy, business plan, performance
forecast and other aspects in relation to the Company as contained herein will not constitute a substantial
commitment to investors. All investors of the Company are advised to be cautious about the investment
risks.
VII. Whether there is any non-operating capital occupation by the controlling shareholder and its
affiliates
No
VIII. Whether there is any external guarantee provided in violation of the prescribed decision
procedures
No


                                                   2 / 225
Ningbo Tuopu Group Co., Ltd.                                                        Annual Report 2020


IX. Whether there are more than half of the directors who cannot guarantee the annual report
disclosed by the Company as to its authenticity, accuracy and completeness
No
X. Significant risk statement
     The Company has described the significant risks that may adversely affect the future development
of the Company and the realization of its business objectives herein. More details are available in
"Section IV Discussion and Analysis of Business Conditions" under this report.


XI. Other
√Applicable □Non-applicable
     On 28 August 2020, China Securities Regulatory Commission (CSRC) approved the non-public
issuance of A-shares of the Company by issuing the “Approval on non-public issuance of shares by
Ningbo Tuopu Group Co., Ltd.” (Zheng Jian Permit [2020] No.1982).
     On 23 February 2021, the Company completed this non-public issuance of shares and go through
the recording, custody and restricted sales procedures in relation to additional shares in this non-public
issuance at the premises of China Securities Depository and Clearing Corporation Limited Shanghai
Branch.
     In this non-public issuance, the Company issued 47,058,823 ordinary shares at a price of RMB
42.50/share, the total amount of raised funds is RMB 1,999,999,977.50. With the issuance expense at
RMB 21,582,130.76 (tax exclusive) deducted, the net amount of raised funds is RMB 1,978,417,846.74.




                                                 3 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                               Annual Report 2020




                                                                    Contents

Section I Definitions ................................................................................................................................... 5
Section II Company Profile and Key Financial Indicators.......................................................................... 5
Section III Corporate Business Overview ................................................................................................. 11
Section IV Discussion and Analysis of Operation Conditions .................................................................. 15
Section V Significant Events..................................................................................................................... 32
Section VI Changes in Common Shares and Shareholders ....................................................................... 53
Section VII Information about Preferred Shares ....................................................................................... 59
Section VIII Directors, Supervisors, Officers and Employees .................................................................. 60
Section IX Corporate Governance ............................................................................................................ 67
Section X Information of Corporate Bonds .............................................................................................. 70
Section XI Financial Report ................................................................................................................... 71
Section XII Documents Available for Reference .................................................................................... 225




                                                                        4 / 225
Ningbo Tuopu Group Co., Ltd.                                                         Annual Report 2020



                                          Section I Definitions


I. Definitions

In this report, unless the context requires otherwise, the following words and terms shall be construed as:
Common terms and definitions
The Company, issuer, Tuopu       Refers to   Ningbo Tuopu Group Co., Ltd.
MECCA HK                         Refers to   MECCA INTERNATIONAL HOLDING (HK) LIMITED,
                                             the controlling shareholder of the Company
Reporting Period                 Refers to    From January 1, 2020 to December 31, 2020
Board of Directors, Board of     Refers to   Board of Directors, Board of Supervisors, General Meeting
Supervisors,         General                 of Shareholders of Ningbo Tuopu Group Co., Ltd.
Meeting of Shareholders
1.00 Yuan, 10,000 Yuan, 100      Refers to   1.00, 10,000.00, 100,000,000.00
million Yuan




                 Section II Company Profile and Key Financial Indicators

I. Company Information
Company Name in Chinese                        宁波拓普集团股份有限公司
Company Abbreviation in Chinese                拓普集团
Company Name in English                        Ningbo Tuopu Group Co.,Ltd.
Company Abbreviation in English                Tuopu Group
Legal Representative of the Company            Wu Jianshu



II. Contact Person and Contact Information

                                        Security of the Board             Representative of Securities
                                                                                     Affairs
Name                           Wang Mingzhen                           Gong Yuchao
Contact Address                268 Yuwangshan Rd, Beilun District,     268 Yuwangshan Rd, Beilun
                               Ningbo                                  District, Ningbo
Tel.                           0574-86800850                           0574-86800850
Fax                            0574-86800877                           0574-86800877
E-mail                         wmz@tuopu.com                           gyc@tuopu.com



III. General Informaiton Summary
Registered Address of the 268 Yuwangshan Rd, Daqi Street, Beilun District, Ningbo, Zhejiang
Company
Postal Code of Registered Address 315806

                                                  5 / 225
 Ningbo Tuopu Group Co., Ltd.                                                         Annual Report 2020


 Office Address of the Company       268 Yuwangshan Rd, Daqi Street, Beilun District, Ningbo, Zhejiang
 Postal Code of Office Address       315806
 Website                             www.tuopu.com
 E-mail                              tuopu@tuopu.com

 IV.      Information Disclosure and Location
 The Media Selected by the Company for Disclosure 
 Website Designated by CSRC for Publishing Annual SSE website (www.sse.com.cn)
 Report
 Location for Annual Report of the Company        Office of Board Secretary


 V. Overview of Stock Information
Overview of Stock Information
                                                                                       Stock Abbreviation
Stock Type             Stock Exchange       Stock Abbreviation Stock Code              Before Change
                                                                                       -
A-share                Shanghai      Stock Tuopu Group           601689
                       Exchange


 VI. Other Related Information
 Accounting         Name                         BDO China Shu Lun Pan Certified Public Accountants
 firm appointed                                  LLP (Special General Partnership)
 by         the     Office Address               5/F, 61 East Nanjing Rd, Shanghai
 Company            Name of Undersigned          Zhu Wei, Tang Wei
 (domestic)         Accountants
 The      sponsor   Name                         China Merchants Securities Co. Ltd
 institution        Office Address               111 Fuhua First Rd, Futian Street, Futian District,
 hired by the                                    Shenzhen, Guangdong
 company       to   Name of undersigned          Xiao Yan, Tan Guotai
 perform      the   sponsor’s representatives
 continuous         Period of      continuous    201From July 26, 2016 to the date of using up the raised
 supervision in     supervision                  funds
 the reporting
 period




                                                   6 / 225
  Ningbo Tuopu Group Co., Ltd.                                                                 Annual Report 2020



  VIII. Key Acccoutning Data and Financial Indicators over the Past Three Years




   (1) Key Acounting Data

                                                                                       Unit:Yuan Currency:RMB
                                                                   Increase/decrea
                                                                                                           2018
Key Accounting                                                       se compared
                           2020                  2019
     Data                                                           with previous
                                                                                       Post-adjustment           Pre-adjustment
                                                                         year
Operating
income               6,511,094,914.05      5,358,953,813.60        21.50               5,984,017,661.79     5,984,017,661.79
Net         profit
attributable to
shareholders of
the         listed
Company              628,200,888.31        456,205,818.45          37.70               753,316,112.69       753,316,112.69
Net         profit
attributable to
shareholders of
the         listed
company after
deducting
non-recurring
gains and losses     574,682,817.67        414,524,818.47          38.64               678,177,958.16       678,177,958.16
Net cash flow
generated       by
operational
activities           1,123,685,580.01      1,239,421,359.40        -9.34               605,331,546.49       605,331,546.49
                                                                   Increase/Decrea                  End of 2018
                                                                    se at the end of
                                                                   the current year
                       End of 2020           End of 2019            compared with
                                                                     the end of the    Post-adjustment           Pre-adjustment
                                                                     previous year
                                                                           (%)
Net        assets
attributable to
shareholders of
the         listed
company              7,786,994,893.67      7,375,492,362.88        5.58                7,220,835,805.87     7,220,835,805.87
Total assets         12,115,228,519.89     11,234,314,273.34       7.84                10,900,694,959.54    10,900,694,959.54


   (2) Key Financial Indicators
                                                                Increase/Decrease at                        2018
                                                               the end of the current
   Key Financial Indicators              2020                    year compared with
                                                  2019                                    Post-adjustment         Pre-adjustment
                                                                    the end of the
                                                                  previous year (%)
Basic Earnings per Share
                                          0.60        0.43                       39.53                    0.71                 1.04
(RMB/Share)
Diluted Earnings per Share
                                          0.60        0.43                       39.53                    0.71                 1.04
(RMB/Share)
                                                         7 / 225
 Ningbo Tuopu Group Co., Ltd.                                                             Annual Report 2020


Basic Earnings per Share after
deducting non-recurring gains          0.54        0.39                   38.46                  0.64               0.93
and losses (RMB/Share)
Weighted Average ROE                   8.29        6.25     Increased by 2.04%                  11.01              11.01
Weighted Average ROE after
deducting non-recurring gains          7.58        5.68     Increased by 1.90%                   9.91               9.91
and losses (%)

 Notes to the key accounting data and financial indicators over the previous three years at the end of the
 reporting period
 √Applicable □Non-applicable
      According to the resolution passed at 2018 Annual General Meeting, the Company distributed
 RMB 4.12 per 10 shares (tax included) to all shareholders as cash dividends with total shares on the
 record date for distribution plan as the base number, and converted public reserve funds into additional
 share capital, with 4.5 additional shares per 10 shares. This event increased the share capital by RMB
 327,409,991.00.


 IX. Differences in Accounting Data under Chinese and International Accounting Standards
   (1) Differences in net profit and net assets attributable to shareholders of listed company in the
 financial reports disclosed under international accounting standards and Chinese accounting
 standards
 □Applicable √Non-applicable
   (2) Differences in net profit and net assets attributable to shareholders of listed company in the
 financial report disclosed under international accounting standards and Chinese accounting
 standards
 □Applicable √Non-applicable
   (3) Notes to differences between international and Chinese accounting standards:
 □Applicable √Non-applicable

 X. Key financial data of 2020 by quarter

                                                                             Unit:Yuan Currency:RMB
                                     Q1                  Q2                   Q3                     Q4
                                (From January       (From April to        (From July to        (From October
                                  to March)             June)             September)            to December)
 Operating income               1,208,384,143.64    1,353,631,671.20      1,756,645,009.48      2,192,434,089.73
 Net profit attributable
 to shareholders of the          113,693,185.36       102,290,053.14       171,449,829.91        240,767,819.90
 listed company
 Net profit attributable
 to shareholders of the
 listed company after
                                 107,615,907.77           90,235,416.32    161,358,808.52        215,472,685.06
 deducting
 non-recurring gains and
 losses

                                                    8 / 225
Ningbo Tuopu Group Co., Ltd.                                                                Annual Report 2020


Net cash flow
generated by operating            83,589,140.53       403,804,427.13            298,420,433.65         337,871,578.70
activities


Notes to differences between quarterly data and disclosed periodic report data
□Applicable √Non-applicable


XI.        Non-recurring Gains and Losses Items and Amounts
√Applicable □Non-applicable
                                                                                   Unit: Yuan Currency: RMB
Non-recurring Gains and Losses               Amount        in   Note      (if    Amount          in   Amount        in
Items                                       2020                applicable)      2019                 2018
Gains and losses from disposal of
                                            8,703,377.39                         -5,661,936.43        -728,657.09
non-current assets
Approval beyond authority, or
without formal approval document,
or incidental tax rebates, deducts and
exempts
Government subsidies included in
the current profit and loss, but
closely associated with the regular
business operations of the Company,
except for government subsidies that 34,350,267.41               XI, VII, 84     27,118,972.85        22,700,566.96
are consistent with national policies
and continuously granted at a fixed
quota or amount under certain
national standard
Payment for the use of funds charged
from non-financial enterprises that is
included in current profit and loss
Income      generated       from     the
investment cost of the Company in
acquiring subsidiaries, associates and
joint ventures that is less than the fair
value of the identifiable net assets
held by the invested entity at the
acquisition of investment
Gains and losses from exchange of
non-monetary assets
Gains and losses from the
engagement of others in investment
or management
Provisions for impairment of various

                                                    9 / 225
Ningbo Tuopu Group Co., Ltd.                                        Annual Report 2020


assets due to force majeure factors
including natural disasters
Gains and losses from restructuring
of debts
Expenses incurred in enterprise
restructuring,  including  those
incurred in staff placement and
integration
Gains and losses from the part of
transactions whose prices are clearly
unfair in excess of the fair value
Net profits and losses for the current
period from the beginning of the
period to the date of the merger
arising from a business combination
under the same control
Profits and losses generated from
contingent events that are unrelated
to the regular business operations of
the Company
Profits and losses resulting from the
changes in fair value for holding
trading financial assets, derivative
financial assets and trading financial
liabilities,   derivative     financial
liabilities and investment income
from disposal of trading financial
                                         18,164,183.51     30,527,989.21   68,297,157.27
assets, derivative financial assets,
trading      financial      liabilities,
derivative financial liabilities and
other obligatory right investments,
except for valid hedging businesses
associated with the regular business
operations of the Company
Reversal of the receivables and
contract assets depreciation reserves
for separate impairment test
Gains and losses from external                             311,202.83      626,442.15
entrusted loans
Profits and losses generated from a
change in the fair value of
investment real estates that are
subsequently measured by the fair
value model
                                                10 / 225
Ningbo Tuopu Group Co., Ltd.                                                     Annual Report 2020


Impact of one-off adjustment to the
current profit and loss under the
requirements of taxation, accounting
and other laws and regulations on the
current profit and loss
Custody fee income from entrusted
operations
Non-operating income and expenses
                                        2,813,550.60                  -3,171,370.86    -1,699,235.47
other than the above
Other gains and losses items that fit
the definition of non-recurring gains
and losses
Impact of minority equity               -312,026.70                   -78,791.53       -227,419.81
Impact of income tax                    -10,201,281.57                -7,365,066.09    -13,830,699.48
Total                                   53,518,070.64                 41,680,999.98    75,138,154.53


XII.        Items Measured by Fair Value
√Applicable □Non-applicable
                                                                      Unit:Yuan Currency:RMB
                    Opening              Ending                      Changes in         Impact on
        Item
                    Balance              Balance                    Current Period     Current Profit
Equity                                   176,111.00                     176,111.00
instrument
investments
        Total                            176,111.00                     176,111.00


XIII.      Other

√Applicable □Non-applicable


                            Section III Corporate Business Overview
I. Main business operations, business model and profile of industry during the reporting period
1. Main business operations
     The Company is mainly engaged in R&D, production and sales of automobile parts and its main
product lines include automobile NVH vibration control parts, acoustic system, lightweight power
chassis system, intelligent driving system, and thermal management system. Its main customers are
carmakers and innovative automobile enterprises at home and abroad. Sticking to the philosophy of
creating value for customers, the Company persists in R&D and innovation, rolls out the global mapping
and enhances overall competitiveness, and has been a more trusted partner for carmakers.
2. Business process and model




                                                11 / 225
Ningbo Tuopu Group Co., Ltd.                                                       Annual Report 2020




II. Notes to material changes in the main assets held by the Company during the reporting period
√Applicable □Non-applicable
Including: overseas assets RMB 408,538,187.19 (Unit: Yuan Currency: RMB), in 3.37% of total assets.
III. Analysis of core competitiveness during the reporting period
√Applicable □Non-applicable
    The Company has been pooling its efforts to enhance core competitiveness, raise the threshold of
competition, and construct moat over three decades since its incorporation.

1. Strength of equity.
    The Company is run and operated by founder, which in turn maintains the prudence of major
decisions, values long-term benefits and development, makes quick decisions and assures good
execution. The founder holds a higher percentage of shares, keeps a clear equity structure, exercises
longstanding control on the Company from the top-level design, in order to keep the Company running
steadily for a long time and have an ample potential for capital expansion. The members of the Board of
Directors led by the chairman demonstrate impressive experience, have clear division of work, keep a
low profile, keep ambitious and energetic, and use their best endeavors to drive the Company to the
forefront of the industry in the right way.
2. Strength of management.
     Under the IATF16949 quality system, the Company has established a specific management system
with typical features through years of innovation efforts. For management structure, the division-based
management structure is laid down for the group, which can relieve the stress of management, highlight
the business operations, improve the efficiency of operation, and lead to relative competition; divisions

                                                12 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020


are subject to the horizontal flat management with sales activities standing in the core, in order to enable
organization to be market-oriented, pool resources and make quick response; business units are subject
to the pyramid organization and enforce standard processes to improve efficiency and reduce cost.
      For management system, the Company has established a full set of standard processes, management
systems and assessment indicators as directed by process, information, standardization, and lean
production, and is leveraging some information tools such as SAP, PLM, OA, and MES to implement
exact processes, which in turn improves the efficiency of management and decision.
      For incentive mechanism, the Company lays up a career platform that is adequately authorized for
staff members, in which the Company tapes into internal development and promotion mode that is fair
and just, in order to keep the channel of promotion smooth, fit to the growth strategy, and form a
positive cycle for business growth and career path.
3. Strength of talents.
      The Company puts the screening and training of talents in priority. The post-doctoral workstation
within the Company solicits and recruits technical specialists globally. Adhering to the concept of
“recruiting and promoting members on their merits”, the Company is committed to building a
competitive management team.
      The Company encourages for the formation of a learning organization that is fully authorized, and
forges a young and experienced international team specialized in sales, R&D activities and production
who can pave the way for leapfrog development of the Company.
4. Strength of product lines.
      With a clear awareness of the industry development, the Company is rolling out the "2+3"
industrial mapping: automobile NVH vibration control parts, acoustic system and lightweight Power
chassis system as one of the core in-vehicle systems decides the key performance indicators such as
controllability and stability, which is subject to technical barriers and capital thresholds. It is the priority
product developed by the world’s large automobile parts companies. Power chassis system is composed
of subframes, suspensions, and steering knuckles. The Company has cultivated in this sector for nearly
20 years, solved and maintained a number of key technologies and processes, and attained more
favorable competitive edge.
      EV thermal management system comprises three modules: cabin air conditioning system, battery
thermal management system, and electronic control thermal management system. The thermal
management system with extraordinary features has integrated the three modules to optimize the use of
energy and solve the driving range of EV, especially the rapid charge decay in winter and the cold
region. Leveraging the electronic control and precision manufacturing capabilities in R&D activities of
IBS, the Company has developed heat pump assemblies, electronic expansion valves, electronic water
valves, electronic water pumps, gas-liquid separators, and heat exchangers. Thermal management
system is an incremental project for EVs, the amount of mounting per vehicle is RMB 6,000-8,000 and
the market scale is enormously large, so more production resources are needed. In addition, the
Company has demonstrated the strength in R&D of overall solution package, system integration and
software control.
      The intelligent driving system includes the intelligent braking system(IBS), the electric power
steering system(EPS), the electronic vacuum pump (EVP), and intelligent cockpit product. IBS and EPS
are considered as the two core executive ends of ADAS, in which IBS is the “bottlenecking project” in
China. The Company is able to provide IBS+EPS solutions for its customers, an integration of IBS and
EPS via the domain control unit (DCU) will make it more convenient for communication interface,

                                                    13 / 225
Ningbo Tuopu Group Co., Ltd.                                                       Annual Report 2020


performance matching, and product calibration, which would in turn substantially reduce the R&D
workload of carmakers and bring extra values to customers.
      The Company has a wide range of product lines which can provide customers with one-stop,
system-grade and modularized products and services, and some products are scarce in the global market
of automobile parts, which in turn enhances customer satisfaction and paves the way for the Company to
get bigger and stronger.
5. Strength of customer group.
      The Company undertakes the mission statement of creating values for its customers and has been
generally accepted by customers in cooperation. The TUOPU brand reputation has been enhanced, along
with higher loyalty level of customers. Capitalizing on the core competitiveness generated from QSTP,
the Company has established and maintained stable cooperations with domestic and overseas carmakers,
and its major customers include GM, Ford, Fiat-Chrysler, Daimler, BMW, Volkswagen, Audi, Honda,
Toyota and other global carmakers, as well as some domestic independent brands.
      Given the latest trends in the automotive industry, the Company has proactively collaborated with
some leading automakers such as RIVIAN, NIO, Xiaopeng, and Lixiang, experimented the Tier0.5
grade cooperation, rendered to customers synchronous R&D and supply services of all product lines, and
led a new change in the division of labor.
6. Strength of R&D.
      The only way leading to a world-class automobile parts enterprise is to improve capabilities of
R&D and innovation. Sticking to R&D and innovation, the Company was the first participant within the
industry to lay down the forward R&D development strategy as early as twenty years ago. After the
technological accumulation for years, the Company has demonstrated the system-grade synchronous
forward R&D capabilities with respect to five modules and the integrated R&D capabilities of machines,
electronic control, and software, and has a number of independent intellectual property rights such as
invention patents. With uninterrupted investments in system construction, recruitment of talents and
testing capacity, the Company maintains the average percentage of annual R&D investments in
operating income at a level about 5%, signaling the continuous improvement of R&D competitiveness.
      With R&D centers set up in North America, Europe, Shanghai, Shenzhen, and Ningbo, the
Company is able to provide better services to global customers and recruit quality talents at home and
abroad. Thanks to its efforts, the Company has put a scientific research team consisting of nearly 2,000
members in place, including more than 100 holders of doctoral and master degrees.
      The Company has set up a test center of global excellence which has the testing and validation
capabilities with respect to materials, products, systems and vehicles. With certified CNAS
ISO/IEC17025 system, the Company has been appointed by many automakers to conduct in-vehicle
tests.
7. Strength of plant layout
      The Company has set up manufacturing bases in Ningbo, Chongqing, Wuhan and other places
encircling major automobile industry clusters in China. To render better services to global customers, the
Company has established manufacturing plants or warehouse centers in the United States, Canada,
Brazil and Malaysia, the prospective plants in Poland and Mexico are in process. Under this plant layout,
the Company is able to render faster and more efficient services to its customers and guarantee the
business development on global platforms. In addition, the automobile industry requires a large-sum
investment a in the plant layout, the construction period is long and the complex equipment and process
are involved, so it can hardly be replaced like the cellphone industry chain.

                                                 14 / 225
Ningbo Tuopu Group Co., Ltd.                                                       Annual Report 2020


      Under the capacity request and the forecasts, the Company currently has 1,500 mu (1mu=666 ㎡)
lands under construction, and reached a general intention of construction as to 1,500 mu lands, which in
turn guarantees the resources for the 2025 development plan.
8. Strength of culture.
      The Company undertakes the mission statement of “making our customers, employees,
shareholders, the community and partners satisfied, and becomes a corporate citizen of excellence.
      The Company gives its employees an access to comfortable workplace, equal interpersonal
relationships, appealing salary and benefits, and an extraordinary career development platform, in order
to tap into the potentials of all employees. The Company has established partnerships with suppliers,
respected the business philosophy of seeking equality and win-win results, and driven the common
development of the supply chain. Adhering to the operation concept of legal compliance, the Company
undertakes social responsibility and is committed to infusing positive energy into social development.
      The Company values and protects the interests of investors, strictly abides by the rules governing
information disclosure and other provisions, and distributes dividends to investors even though the
capital expenditures have been increased. All staff members are united to improve operating
performance, in order to maximize the benefits to investors.
9. Strength of risk control.
      The Company keeps the debt-to-equity ratio at low level and has an abundant cash flow. The
well-established financial system and the strict risk control system can in turn guarantee the
implementation of strategic plan and investment plan, and allow the Company to seek mergers and
expansion whenever appropriate.

            Section IV Discussion and Analysis of Operation Conditions
1. Discussion and analysis of operation conditions
      In the context of economic downturn in 2020, the automobile industry has been subject to two
drastic changes: first, the dispute over the development track of NEVs has been resolved, legacy
automakers have proceeded to NEVs. Second, despite the sharp decline in production and sales, NEVs
still maintain a good growth, especially in China.
      Thanks to the forward-looking layout in NEVs, the Company has maintained a good growth in all
operations and seen increases in income from sales and profit in spite of the economic recession. More
details are described as follows:
       (1) Marketing and sales.
      The Tier0.5 level strategy rolled out by the Company has led to an exemplary success, and the
amount of mounting per vehicle is higher. This way of cooperation is expected to be implemented for
other customers, the Company is having close negotiations with some customers and has reached an
extensive consensus with innovative automakers. Thanks to the product lines, R&D capabilities and
other comprehensive factors in NEVs, the Company has been approved by Toyota and Honda as
designated supplier and receives the order of electronic vacuum pumps from Volkswagen. New orders
received in 2020 has increased significantly compared with prior years, which in turn boosts the fast and
sustainable development in future.
      (2) New project development.
      Lightweight chassis is a product widely used on NEVs. With a variety of lightweight chassis
technologies on hands, the Company maintains a privileged presence in the industry. One-piece
aluminum alloy vacuum casting chassis has been accepted by customers and supplied in batches.
                                                15 / 225
Ningbo Tuopu Group Co., Ltd.                                                          Annual Report 2020


Aluminum alloy casting welded chassis has been approved by FORD and RIVIAN and is ready for
supply in batches.
     IBS and EPS are stepping up verification and matching, and are recognized and praised by
customers.
     Leveraging the electronic control and precision manufacturing capabilities in R&D activities of IBS,
the Company has developed heat pump assemblies, electronic expansion valves, electronic water valves,
electronic water pumps, gas-liquid separators, and heat exchangers, and is quickly bringing these
products available in the market.
     For NVH vibration control parts and acoustic system, the Company is make efforts to use
innovative materials, processes and equipment in line with the precise needs of NEVs.
     (3) Capacity layout.
     With respect to new orders, the Company has paced up the speed of capacity layout and promoted
the construction of Xiangtan Base, Phase II and III bases of Ningbo Hangzhou Bay New Area, and
Yinzhou Production Base of Ningbo as soon as practicable.
     (4) Cost control.
     During the reporting period, the cost of raw materials and labor services has obviously risen, the
Company implements cost control by purchasing in large quantity, technological innovation, strict
budget control and other measures. Its R&D expenditures have increased dramatically because of many
projects under development and recruitment of many technological specialists. The need for capacity
expansion and a substantial increase in capital expenditures have led to a drastic increase in the
percentage of depreciation and amortization. In future, R&D cost and capital expenditures are expected
to be diluted with the sales growth, so that a reasonable gross profit level would be maintained.
     (5) Intelligent manufacturing.
     The Company proceeds digital factory, implements MES management system, enables effective
management in respect of quality control, product traceability, lean production, equipment management,
and promotes the interconnectivity between the company-wide data and customer data, in order to build
an smart factory accredited with Industry 4.0.
     (6) Equity financing.
     The lightweight chassis refinancing project has been approved and the Company issued additional
stocks in February 2021, which in turn enhances the financial strength of the Company and guarantees
the fast development of the project.


II. Main business operations during the reporting period
      As of the end of the reporting period, total assets is RMB 12.115 billion, an increase of 7.84% over
the previous year; total liabilities is RMB 4.328 billion, with debt-to-equity ratio at 35.72%; the owners’
attributable to the parent company is RMB 7.787 billion, an increase of 5.58% over the previous year.
      During the reporting period, the operating income is RMB 6.511 billion, an increase of 21.50%
over the previous year; the net profit attributable to shareholders of public company is RMB 628 million,
an increase of 37.70% over the previous year.
 (1) Analysis of main business operations
1. Analysis of changes in related subjects of income statement and cash flow statement
                                                                             Unit: Yuan Currency: RMB
            Subject                         Amount in the       Amount           in    Change              as

                                                  16 / 225
Ningbo Tuopu Group Co., Ltd.                                                      Annual Report 2020


                                            current period    previous period     percentage (%)
Operating income                           6,511,094,914.05    5,358,953,813.60                    21.50
Operating cost                             5,034,014,528.39    3,949,993,344.06                    27.44
Cost of sales                               123,896,252.24      287,078,723.04                   -56.84
Overhead expenses                           233,071,874.47      229,643,454.40                      1.49
R&D cost                                    354,851,747.66      314,307,191.22                     12.90
Financial expenses                            44,118,562.59        3,098,025.81               1,324.09
Net cash        flow    from   operating   1,123,685,580.01    1,239,421,359.40                    -9.34
activities
Net cash        flows   from   investing   -587,280,804.65    -1,026,254,249.95                     NA
activities
Net cash        flow    from   financing   -564,960,874.38      -241,140,065.30                     NA
activities
    Note: A significant decrease in cost of sales during the current period is mainly attributed to the
new income standard, by which the Company recorded the transportation cost and storage cost at RMB
197,271,674.62 incurred in sales of goods as operating cost.




                                                 17 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                             Annual Report 2020



2. Analysis of revenue and cost
√Applicable □Non-applicable
    The revenue and cost of the Company in 2020 can be summarized as:
 (1). Overview of main business operations by industry, product and region
                                                                                                                                 Unit:Yuan Currency:RMB
                                                            Main business operations by industry

                                                                                      Increase/Decrease of                             Increase/Decrease of
                                                                                                              Increase/Decrease of
                   Operating income                              Gross profit rate   operating income over                             gross profit rate over
 By industry                               Operating cost                                                    operating cost over the
                                                                       (%)           the previous year (%)                             the previous year (%)
                                                                                                                previous year (%)
Automobile             6,293,917,541.95      4,961,882,743.49                21.16                  21.81                      27.55
parts                                                                                                                                  Decreased by 5.55%
                                                            Main business operations by product
                                                                                      Increase/Decrease of    Increase/Decrease of     Increase/Decrease of
                                                                 Gross profit rate
  By product        Operating income       Operating cost                            operating income over   operating cost over the   gross profit rate over
                                                                       (%)
                                                                                     the previous year (%)      previous year (%)      the previous year (%)
Vibration              2,560,423,000.05      1,882,426,992.83                26.48                    9.33                     13.26   Decreased by
control system                                                                                                                         2.55%
Trimming               2,224,062,619.20      1,824,283,222.51                17.98                  34.82                      42.59   Decreased by
system                                                                                                                                 4.47%
Power chassis          1,330,664,135.05      1,127,407,190.32                15.27                  27.03                      31.05    Decreased by 2.60%
system
Mechatronic              178,767,787.65       127,765,337.83                 28.53                  39.62                      44.47    Decreased by 2.40%
system
                                                            Main business operations by region
  By region         Operating income       Operating cost        Gross profit rate   Increase/Decrease of    Increase/Decrease of      Increase/Decrease of


                                                                          18 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                                        Annual Report 2020

                                                                          (%)           operating income over      operating cost over the        gross profit rate over
                                                                                        the previous year (%)        previous year (%)            the previous year (%)
Overseas               1,657,519,862.72         1,214,464,803.41                26.73                   46.35                            60.19    Decreased by 6.33%
Domestic               4,636,397,679.23         3,747,417,940.08                19.17                   14.92                            19.64    Decreased by
                                                                                                                                                  3.19%


Notes to main business operations by industry, product and region
     The gross profit rate in the reporting period decreased by 3.55% over the previous year is mainly attributed to the revised revenue standards, by which the
Company recorded the transportation cost and warehouse cost at RMB 197,271,674.62 incurred in sales of goods into operating cost, resulting in a decrease of gross
profit rate by 3.14%.


 (2). Analysis of production output and quantity sold
√Applicable □Non-applicable
                                                                                     Increase/Decrease of       Increase/Decrease of             Increase/Decrease of
                                   Production                       Quantity of
  Main product          Unit                       Quantity sold                     production output over     quantity sold over the           inventories over the
                                     output                         inventories
                                                                                     the previous year (%)      previous year(%)                 previous year(%)
Vibration control    10,000 sets          550.84          548.27          170.95                        6.08                        10.27                          1.53
system
Trimming system      10,000 sets          271.40          269.58           18.74                       42.18                        37.43                         10.75
Power      chassis   10,000 sets          166.95          164.48           17.25                       22.31                        23.99                         16.73
system
Mechatronic          10,000 sets           67.20           66.46             2.87                      42.65                        41.70                         34.89
system
(3). Cost analysis
                                                                                                                                                            Unit:Yuan
                                                                      Summary by industry
    By industry         Construction of       Amount in the        As a percentage      Amount in previous          As a          Change in the amount         Remark


                                                                             19 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                              Annual Report 2020

                               cost       current period     of total cost in the          year          percentage of      in the current period as
                                                             current period (%)                          total cost in          a percentage of
                                                                                                         previous year        previous period (%)
Automobile parts         Direct cost of   3,834,145,459.25                77.27       2,992,780,159.80              76.93                     28.11
                           material
Automobile parts         Direct cost of    332,857,963.49                   6.71       274,507,293.54                7.06                     21.26
                         labor service
Automobile parts        Manufacturing      794,879,320.74                 16.02        622,951,230.64               16.01                     27.60
                          expenses
                                                                  Summary by product
                                                                                                                             Change in the amount
                                                              As a percentage                            As a percentage
                        Construction of   Amount in the                             Amount in previous                      in the current period as
    By product                                               of total cost in the                        of total cost in                              Remark
                             cost         current period                                 year                                   a percentage of
                                                             current period (%)                           previous year
                                                                                                                              previous period (%)
Vibration control        Direct cost of   1,407,114,177.14                28.36       1,242,919,491.57              31.95                     13.21
system                     material
Vibration control        Direct cost of    152,476,586.42                   3.07       136,292,321.89                3.50                     11.87
system                   labor service
Vibration control       Manufacturing      322,836,229.27                   6.51       282,889,672.99                7.27                     14.12
system                    expenses
Trimming system          Direct cost of   1,414,731,639.06                28.51        986,534,121.32               25.36                     43.40
                           material
Trimming system          Direct cost of     97,599,152.40                   1.97         74,588,171.80               1.92                     30.85
                         labor service
Trimming system         Manufacturing      311,952,431.05                   6.29       218,263,157.95                5.61                     42.92
                          expenses
Power        chassis     Direct cost of    896,288,716.30                 18.06        682,228,161.60               17.54                     31.38



                                                                         20 / 225
Ningbo Tuopu Group Co., Ltd.                                                                  Annual Report 2020

system                         material
Power chassis            Direct cost of    78,016,577.57     1.57      60,221,905.82   1.55      29.55
system                   labor service
Power        chassis   Manufacturing      153,101,896.45     3.09     117,862,872.81   3.03      29.90
system                 expenses
Mechatronic system       Direct cost of   116,010,926.75     2.34      81,098,385.31   2.08      43.05
                           material
Mechatronic system       Direct cost of     4,765,647.10     0.10       3,404,894.04   0.09      39.96
                         labor service
Mechatronic system      Manufacturing       6,988,763.98     0.14       3,935,526.88   0.10      77.58
                          expenses




                                                           21 / 225
Ningbo Tuopu Group Co., Ltd.                                                              Annual Report 2020


(4). Main customers and main suppliers
√Applicable □Non-applicable
The sales amount from the top five customers is RMB 4,048.2756 million, in 62.18% of the annual sales
amount; in which, the sales amount from the related parties of the top five customers is 0, in 0% of the
annual sales amount.
The purchase amount from the top five suppliers is RMB 496.7419 million, in 9.24% of the annual
purchase amount; in which, the purchase amount from the related parties of the top five suppliers is 0, in
0% of the annual purchase amount.
3. Expenses
√Applicable □Non-applicable
  Subject            2020                     2019               Change as          Reason for Change
                                                                Percentage
                                                                   (%)
                                                                             Attributed to the transportation
                                                                             cost and storage cost incurred in
   Cost of
                123,896,252.24          287,078,723.04              -56.84   the current period recorded into
   sales
                                                                             operating cost under the revised
                                                                             revenue standards
                                                                             Attributed to the increase in
 Overhead
                233,071,874.47          229,643,454.40                1.49   depreciation and amortization of
 expenses
                                                                             the current period
                                                                             Attributed to the further extent
                                                                             of R&D innovation and the
 R&D cost       354,851,747.66          314,307,191.22               12.90
                                                                             increase in R&D cost in the
                                                                             current period
                                                                           Attributed to the increase in
 Financial
                  44,118,562.59           3,098,025.81            1,324.09 exchange losses during the
 expenses
                                                                           current period


4. R&D investment
 (1). Particulars of R&D investment
√Applicable □Non-applicable
                                                                                                 Unit:Yuan
Expendable R&D investment in the                                                              354,851,747.66
current period
Capitalized R&D investment in the                                                                           0
current period
Total R&D investment                                                                          354,851,747.66
Total R&D investment as a percentage of                                                                  5.45
operating income (%)
Number of      R&D     members     in   the                                                             1,729
Company

                                                     22 / 225
Ningbo Tuopu Group Co., Ltd.                                                       Annual Report 2020


Number of R&D members as                 a                                                      18.96
percentage of total staff members (%)
Percentage     of    capitalized      R&D                                                            0
investment (%)


 (2). Particulars
□Applicable √Non-applicable
5. Cash flow
□Applicable √Non-applicable
      Item                     2020          2019                  Change        Reason for change
                                                                  as
                                                                  percentage
                                                                  (%)
                                                                               Attributed     to  the
Net cash flow                                                                  increase in the amount
from operating        1,123,685,580.01        1,239,421,359.40         -9.34   of payment due for
activities                                                                     notes payable in the
                                                                               current period
Net cash flow
from investing         -587,280,804.65        -1,026,254,249.95          NA
activities
Net cash flow
from financing         -564,960,874.38         -241,140,065.30           NA
activities


 (2) Explanation of major changes in profits caused by operations other than main operations
□Applicable √Non-applicable




                                                23 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                                        Annual Report 2020



 (3) Analysis of assets and liabilities
√Applicable □Non-applicable
Assets and liabilities
                                                                                                                                                          Unit:Yuan
                                                                                                      (%)
                                                                                                    Change in
                                                                                      (%)        the amount
                                                 Amount at
                                                                                    Amount at     at the end of
                                                  the end of
                                                                                    the end of     the current
                                                 the current
                          Amount at the end                                          previous      period as a
          Item                                   period as a   Amount at the end                                                        Remark
                         of the current period                                      period as a    percentage
                                                 percentage    of previous period
                                                                                    percentage        of the
                                                    of total
                                                                                      of total      amount at
                                                 assets (%)
                                                                                       assets       the end of
                                                                                                     previous
                                                                                                   period (%)
Trading      financial            176,111.00           0.00        780,000,000.00          6.94         -99.98    Attributed to the decrease in bank financial
assets                                                                                                            management products subscribed by the Company
                                                                                                                  in the current period
Notes receivable               296,283,951.73          2.45        440,734,534.85          3.92         -32.77    Attributed to the decrease in bank acceptance notes
                                                                                                                  received by the Company in the current period
Notes receivable            1,783,267,007.65          14.72      1,357,020,447.94         12.08          31.41    Attributed to the substantial increase in the
                                                                                                                  operating income in Q4 of the current period
Other receivable                31,087,166.38          0.26         13,981,969.00          0.12        122.34     Attributed to the increase in deposits and guarantees
                                                                                                                  paid in the current period
Construction       in          943,993,396.96          7.79        611,737,763.71          5.45          54.31    Attributed to the increase in plants and equipment


                                                                               24 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                       Annual Report 2020

progress                                                                                          under construction in the current period
Other      non-current         296,957,402.06    2.45     97,855,571.08          0.87   203.46    Attributed to the increase in received prepayments
assets                                                                                            for construction and equipment in the current period
Accounts payable          1,898,255,116.17      15.67   1,458,517,214.69        12.98    30.15    Attributed to the increase in material purchases in
                                                                                                  the current period
Received                                                  24,717,751.02          0.22   -100.00   Attributed to the reclassification         under   the
Prepayments                                                                                       accounting standards
Contract liabilities            22,685,660.41    0.19                                   100.00    Attributed to the reclassification         under   the
                                                                                                  accounting standards
Other payable                   15,722,105.17    0.13       8,181,531.69         0.07    92.17    Attributed to the increase in deposits and guarantees
                                                                                                  received in the current period
Non-current                                                                                       Attributed to the repayment of bank loans due in the
liabilities due within                                    62,837,810.76          0.56   -100.00   current period
1 year
Other          current           1,507,896.52    0.01                                   100.00    Attributed to the reclassification         under   the
liabilities                                                                                       accounting standards
Long-term loans                                          182,500,000.00          1.62   -100.00   Attributed to the repayment of long-term loans in
                                                                                                  the current period
Deferred income                214,204,302.56    1.77    172,340,145.15          1.53    24.29    Attributed to the increase in government grants
                                                                                                  related to assets received in the current period
Other                          -20,631,668.74    NA        -4,380,983.53                370.94    Attributed to the conversion difference of foreign
comprehensive                                                                    NA               currency financial statements for the current period
income




                                                                     25 / 225
Ningbo Tuopu Group Co., Ltd.                                                     Annual Report 2020




1. Major asset restrictions as of the end of the reporting period,
√Applicable □Non-applicable
               Item                 Book value at the end of the        Reason for restricted use
                                             period
Monetary Funds                                      112,257,224.37   Margins for bank acceptance
                                                                     notes
Notes receivable                                    296,225,046.21   Pledge
Inventories
Fixed Assets                                         47,372,168.16   Mortgage
Intangible Assets                                     6,804,936.88   Mortgage
Receivable financing                                618,586,352.87   Pledge
               Total                             1,081,245,728.49                   /


2. Other Notes
□Applicable √Non-applicable


 (4) Analysis of industry operational information
□Applicable √Non-applicable




                                              26 / 225
Ningbo Tuopu Group Co., Ltd.                                                           Annual Report 2020



Analysis of Operational Information in Automobile Manufacturing Industry
1. Production capacity
□Applicable √Non-applicable
2. Production output and quantity sold of vehicles
□Applicable √Non-applicable
3. Production output and quantity sold of automobile parts
√Applicable □Non-applicable
Categorized by parts
√Applicable □Non-applicable

                                Quantity sold                               Production output
                        Cumulati Cumulati          Cumulative       Cumulati Cumulati         Cumulative
                            ve          ve       increase/decre         ve          ve      increase/decre
                         amount      amount          ase as a        amount      amount         ase as a
 Category of parts
                         in the         in        percentage of      in the         in       percentage of
                         current    previous      previous year      current     previous    previous year
                           year        year            (%)             year        year           (%)
Vibration control
                          548.27       497.21               10.27     550.84      519.26             6.08
system
Trimming system           269.58       196.15               37.43     271.40      190.89            42.18
Power chassis
                          164.48       132.66               23.99     166.95      136.50            22.31
system
Mechatronic system          66.46       46.90               41.70      67.20       47.11            42.65

      Note: Production output and quantity sold are measured in the unit of 10,000 sets.
Categorized by market
□Applicable √Non-applicable
4. NEVs
□Applicable √Non-applicable
5. Automobile financing
□Applicable √Non-applicable
6. Other Notes
□Applicable √Non-applicable
  (5) Investment condition
1. Ovverall analysis of external equity investments
□Applicable √Non-applicable
  (1) Significant equity investment
□Applicable √Non-applicable




                                                 27 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                                Annual Report 2020




  (2) Significant non-equity investment
□Applicable √Non-applicable
1. Condition of purchased land
(1) In May 2020, Ningbo Tuopu Mechatronic System Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use about 135 mu state-owned
construction land in Hangzhou Bay New Zone, Ningbo, at a consideration of RMB 27.06 million in bidding process.
(2) In July 2020, Ningbo Tuopu Chassis System Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use about 197 mu state-owned
construction land in Yinzhou Development Zone, Ningbo, at a consideration of RMB 64.75 million in bidding process.
(3) In December 2020, Tuopu EV Thermal Management System (Ningbo) Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use 302
mu state-owned construction land in Hangzhou Bay New Zone, Ningbo, at a consideration of RMB 60.4 million in bidding process.
2. Updates of investments
NO.         Date of        Reference          Title of                     Main content                                     Update of event
            Signing        number of      announcement
                        announcement
                                                                                                        In January 2017, Ningbo Tuopu Mechatronic System
                                                                                                        Co., Ltd., a wholly-owned subsidiary of the Company,
                                                                                                        was awarded the right to use about 503 mu state-owned
                                                                                                        construction land in Hangzhou Bay New Zone, Ningbo
                                                                                                        (Phase I), at a consideration of RMB 84.55 million in
                                                             The Company signed the "Investment bidding process, and this project has been completed
                                        Tuopu      Group’s Agreement" with the Development and and put into operation.
                                        announcement on Construction Management Committee of In May 2020, Ningbo Tuopu Mechatronic System Co.,
         November                       the     investment Ningbo Hangzhou Bay New Zone, and Ltd., a wholly-owned subsidiary of the Company, was
1                       2016-076
         2016                           agreement signed prospectively invests and constructs a awarded the right to use about 135 mu state-owned
                                        with     Hangzhou production base intended for the construction land in Hangzhou Bay New Zone, Ningbo
                                        Bay New Zone         automobile parts production project in (Phase II), at a consideration of RMB 27.06 million in
                                                             Ningbo Hangzhou Bay New Zone.              bidding process, which is intended for implementing the
                                                                                                        "Hangzhou Bay Phase II Lightweight Power Chassis
                                                                                                        System Module Project" as a non-public offering equity
                                                                                                        investment project in 2020. To date, the main works
                                                                                                        have been substantially completed and it proceeds to the
                                                                                                        equipment installation.
                                        Tuopu      Group’s The Company and the Administration In May 2020, the Company was awarded the right to
                                        announcement on Committee of Xiangtan Economic and use about 210 mu state-owned construction land in
2        January 2018 2018-002
                                        the     investment Technological Development Zone signed Xiangtan Economic and Technological Development
                                        intent agreement the "Investment and Entry Contract" in Zone, at a consideration of RMB 47.07 million, which
                                                                            28 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                            Annual Report 2020




                                   signed in Xiangtan    relation to Hunan Production Base           is intended for implementing "Hunan Factory
                                                         Project, and prospectively constructs the   Lightweight Power Chassis System Module Project" as
                                                         trimming system project with an annual      a non-public offering equity investment project in 2020.
                                                         capacity of 300,000 sets and the chassis    To date, the main works have been substantially
                                                         system production base project with an      completed and it proceeds to the floor construction
                                                         annual capacity of 600,000 sets in          phase.
                                                         Xiangtan Economic and Technological
                                                         Development Zone.
                                                         Taizhou Tuopu Automobile Parts Co.,         In February 2018, Taizhou Tuopu Auto Parts Co., Ltd.
                                                         Ltd., a wholly-owned subsidiary of the      was awarded the right to use about 47 mu state-owned
                                   Tuopu      Group’s   Company, signed the "Investment             construction land in Toumen Port Economic
                                   announcement on       Attraction    Agreement"     with     the   Development Zone, Linhai, at a consideration of RMB
                                   the     investment    Administration Committee of Toumen          16 million. To date, the plant works have been
       February
3                       2018-004   intent agreement      Port Economic Development Zone of           completed and it proceeds to the equipment acceptance
       2018
                                   signed    by    its   Zhejiang, and prospectively invests and     and installation phase.
                                   wholly-owned          constructs the NVH trimming system
                                   Subsidiary            project with an annual capacity of
                                                         300,000 sets in Toumen Port Economic
                                                         Development Zone.
                                                         Baoji Tuopu Maigao Automobile Parts         Terminated.
                                                         Co., Ltd., a wholly-owned subsidiary of
                                   Tuopu      Group’s   the       Company,       signed       the
                                   announcement on       "Memorandum" with the Administration
        November
4                       2018-049   the     investment    Committee of Baoji High-tech Industrial
       2018
                                   intent agreement      Development Zone, and prospectively
                                   signed in Baoji       invests and constructs the automobile
                                                         parts production base Baoji High-tech
                                                         Industrial Development Zone.




                                                                       29 / 225
Ningbo Tuopu Group Co., Ltd.
Annual Report 2020



  (3) Financial assets measured at fair value
□Applicable √Non-applicable
  (6) Disposal of major assets and equity
□Applicable √Non-applicable
  (7) Analysis of major controlling and participating companies
√Applicable □Non-applicable
                                                             Unit:in 10,000 Yuan Currency:RMB
                                                 Total        Total net     Operating
                                    Total assets                                        Net profit
                                                 liabilities  assets in     income in
                       Registere in the                                                   in the
Company name                                     in the       the           the
                       d capital    reporting                                            current
                                                 reporting    reporting     reporting
                                    period                                                period
                                                 period       period        period
  Ningbo Intelligent
                         5,000.00      4,891.44     1,167.41     3,724.03     18,076.98     205.75
         Brake
Tuopu Imp&Exp. 20,000.00 16,974.48                  2,957.43    14,017.05 125,972.70     -4,069.50
     Tuopu Parts        20,000.00     94,491.79    73,452.45    21,039.34 264,534.14        197.37
  Tuopu Acoustics
                        20,000.00     72,264.57    57,185.63    15,078.94 213,387.10     -1,718.33
       Vibration
    Sichuan Tuopu        2,000.00      6,451.65     4,278.68     2,172.97     16,659.00     625.98
    Yantai Tuopu         6,280.00      8,073.80     2,397.76     5,676.04      9,339.93     201.97
    Pinghu Tuopu        20,800.00     27,947.60    10,860.99    17,086.61     32,528.56   1,142.12
   Sichuan Maigao       15,000.00     24,200.98     4,806.53    19,394.45     21,111.11     -13.86
   Zhejiang Towin       18,000.00     55,508.97    11,636.98    43,871.99     36,221.32   1,497.65
Tuopu Mechatronic       150,000.0
                                     219,234.27    53,324.47 165,909.80 138,495.59      16,636.14
        System                   0
   Ningbo Qianhui        2,725.86      9,077.96     2,412.51     6,665.45      6,462.02     475.81
     Tuopu North
                              5.00     9,954.30    10,207.58       -253.28    38,874.81     -98.60
    American Ltd
   Tuopu Electrical
                         5,000.00     17,507.11     4,963.22    12,543.89     10,895.21   1,475.88
      Appliances
   Ningbo Borgers        2,100.00     22,934.33     7,360.85    15,573.47     40,165.02   3,126.45
    Antolin Tuopu        1,464.22      8,074.33     5,346.72     2,727.62     11,522.61       20.72

  (8) Structured entities controlled by the Company
□Applicable √Non-applicable
III. Discussion and Analysis on the Future Development of the Company
  (1) Industry structure and trend
√Applicable □Non-applicable
      At present, the “electrified, intelligent and connected” trend of the automobile industry has been
recognized globally. The business format, profit model and operation model of the automobile industry
have been subject to drastic changes, the supply chain of the automobile industry remains to be
restructured and innovated on a full scale, the relationship between suppliers of auto parts and
automakers has changed, so there is an urgent need for platform-based automobile parts enterprise with
overall competitiveness and Tier0.5 grade cooperation model, for the following reasons:
      1. The need of automakers for rebuilding an innovative "circle of competence". The future
automobile will pool together major human innovation technologies, including IoT, 5G, cloud
computing, big data, AI, chips, AR/VR, voice/image recognition, new energy, which are expected to
challenge the operation pattern, knowledge reserves and integration capabilities of automakers. The
industrial division of works requires an innovative supply chain model, which is the precondition for
making automakers focused on new circle of competence.

                                                 30 / 225
Ningbo Tuopu Group Co., Ltd.
Annual Report 2020

     In addition, automakers, ICT enterprises and the government are advised to identify their presences,
interact and integrate each other ranging from smart cars to smart transportation, smart city, to smart
community, which in turn occupies enormous resources of automakers.
     2. The need for the revolution of industrial value chain. The future features software and
data-defined vehicles. The core value, competitiveness and value added of automakers is to control and
operate data, thus fueling on the automatic evolution of cars and intelligent driving. The traditional drive,
operating stability and other characteristics of cars tend to be homogenized, automobile software and
hardware are separated from each other, and automobile hardware is more standard. With some changes
happened in the industry value chain in the new age of automobiles, automakers are advised to focus on
the areas that create core value added.
     3. The need for cost reduction. Over a century, the legacy automobile industry is susceptible to
redundancy, complex process, refined division of labor forces, unaffordable cost, and low efficiency.
Innovative carmakers cross the boundaries of the legacy automobile industry in respect of capital,
resources, and accumulated experience, but capitalize on the strengths of platform-based parts
manufacturers for R&D capabilities, R&D resources and testing competence, which would in turn help
them streamline size, reduce cost, improve efficiency and enhance competitiveness.
     4. The inherent demand for the revolution of the automobile industry chain. Firstly, as
large-scale international manufacturers are engaged in supplying parts to legacy models, there is no
capacity and funds available for NEVs, the business transformation may end up with a failure; secondly,
SMEs may feel pressure on rising costs and meager profit, it is not feasible to stay on the track of
innovation and development. The only way is to seeking integration.

  (2) Development strategy of the Company
√Applicable □Non-applicable
      In the new age featuring drastic changes in the automotive industry, the Company is committed to
becoming a large-scale, technology-intensive, and platform-based supplier with a wide range of
industrial layout, intensive product technologies, impressive R&D capabilities, and resourceful customer
groups, establishing Tier0.5 grade cooperation with customers, leading a change in the relationship
between parts suppliers and automakers, striving to be a domestic giant in the field of auto parts and a
global auto parts manufacturer, empowering the industrial development of NEVs, and contributing to the
initiative of peak carbon dioxide emissions and carbon neutrality.
      1. Product strategy. To provide customers with one-stop, system-level, modularized products and
services, kill the pain points caused by major changes in the automobile industry, and enhance customer
satisfaction and loyalty, the Company is rolling out "2+3" Industrial strategy, maintaining the privileged
presence of the automobile NVH vibration control parts and acoustic system in home market, and
prospectively laying out the lightweight power chassis system, thermal management system, and
intelligent driving system. With a wide array of product lines, the amount of mounting per vehicle is up
to RMB 15,000, which would pave the way for rapid growth of the Company in the next decade and its
product lines are further extended.
2. Market strategy. Capitalizing on strength of product lines, R&D strength and QSTP overall strength
(Quality, Service, Technology, Price), the Company is constructing the new Tier0.5 supply chain model,
and increasing the average amount of mounting per vehicle from RMB 5,000 to RMB 10,000. The
Company is boosting the business growth in Japanese cars market and European cars market. The
effective development of the above market will be a significant growth pole for rapid development of the
Company in future.
3. Operation strategy. The Company continues to promote digital operations and digital manufacturing,
build an Industry 4.0 Smart Factory, and enhances own competitiveness. The Company rolls out the
strategy of concurrent strategy of endogenous growth and mergers and acquisitions, adheres to business
startup within the company, and never gives up any chance of making value-added merger and
acquisition.

  (3) Business operation plan
√Applicable □Non-applicable
      In 2021, the Company will further develop the market, pace up the project mass production,
enhance management, control cost, fuel on the rapid development and prepare for attaining the mid-term
strategic goal in accordance with the predefined strategy.
                                                  31 / 225
Ningbo Tuopu Group Co., Ltd.
Annual Report 2020

     1. Sales and marketing. Capitalizing on the overall strengths, the Company continues to promote
the Tier 0.5 level cooperation, and expand the innovative automakers and the international and domestic
business operations.
     2. New project development. Increase R&D investments, implement the project and attain the
production target, and further expand product lines.
     3. Capacity layout. In 2021, the Company is expected to complete 1,500 mu plant project under
construction and kick off the planning work for the next industrial park covering 1,500 mu.
     4. Cost control. Promote the budget control system and lean production system, and reduce cost.
     5. Digital factory. Promote the construction of digital plant as role model. Other works including
quality control, lean production and system innovation are in process.
     6. Profit forecast. It is estimated that the annual operating income and the net profit will reach
RMB 12 billion and 1.2-15 billion, respectively.
     The Company brings the attention of investors to: the performance forecast does not represent its
commitment to investors, whether it can be realized or not depends on plenty of variable factors such as
macro policies and market conditions. Investors are advised to notice the potential risks.

  (4) Potential risks
√Applicable □Non-applicable
      1. The Company makes large-sum investments in NEVs industry chain, and capital expenditures
have increased significantly year by year. If the development direction of NEVs becomes ambiguous, its
fixed assets can hardly be returned, the surging percentage of depreciation and amortization will expose
it to an enormous risk.
      2. The Company is expected to resolve other risks such as exchange rate, tariffs, raw material price
fluctuations by enhancing its overall competitiveness.

  (5) Others
□Applicable √Non-applicable
IV. The Company fails to make disclosure in accordance with the standards and the reasons for
such failure
□Applicable √Non-applicable



                                    Section V Significant Events
I. The plan for the profit distribution of common stocks or the transfer of capital reserves
  (1) The making, implementation or adjustment of cash dividend policy
√Applicable □Non-applicable
      To maintain the continuity and stability of the profit distribution policy, make the transparency and
operability of dividend distribution decisions more transparent and viable, and protect the legitimate
rights and interests of small and medium shareholders, the Company drafted the “Plan for Dividend
Distribution to Shareholders in the Next Three Years (2018-2020)” under the relevant regulations
released by CSRC, SSE and other authorities, as well as the “Articles of Association”, which was
considered and passed at the general meeting of 2018. The above plan was disclosed on SSE website on
20 April 2018.
      The above plan sets out: if the Company is available for distributing cash dividends, then it is
prioritized to distribute dividends in cash. Profit can be distributed in cash, stocks or a combination of
both. Where the conditions for dividend distribution are satisfied, with an adequate amount of statutory
reserve funds and surplus reserve funds retained, if there is no event of significant cash expenditures, the
profit distributed in cash in a single year shall be in principle no less than 30% of the profit available for
distribution in the current year.
      The Company is strictly implementing the above plan of dividend distribution to shareholders.




                                                   32 / 225
Ningbo Tuopu Group Co., Ltd.
Annual Report 2020

 (2) The dividend distribution plan or response plan of common stocks, the plan or response plan
of capital reserves converted into additional shares in the past three years (including the reporting
period)
                                                                      Unit:Yuan Currency:RMB
                                                                     Net         profit attributable
                           Number
                                                                     attributable to to common
                               of        Number
               Number                                                common             shareholders
                          dividends         of
               of bonus                                              shareholders of      of public
 Dividend                 distributed   additional   Amount of cash
                issues                                               public company company as
distribution                (Yuan)        shares     dividends (with
               (stocks)                                              in            the a percentage
    year                   (with tax     (stocks)     tax included)
               every 10                                              consolidated          in the
                          included)      every 10
                shares                                               statement      of consolidated
                           every 10       shares
                                                                     dividend            statement
                             shares
                                                                     distribution year       (%)
2020                  0         1.72             0   189,552,010.38 628,200,888.31              30.17
2019                  0         1.90             0   200,447,672.31 456,205,818.45              43.94
2018                  0         4.12           4.5   299,762,036.30 753,316,112.69              39.79


  (3) The circumstances under which the shares repurchased in cash are recorded in cash dividends
□Applicable √Non-applicable
  (4) If the parent company is profitable during the reporting period and the profit distributable to
ordinary shareholders is positive, but has not yet submitted a plan for the cash profit distribution
of ordinary shares, the Company shall disclose the exact reasons and the intended use and plan of
undistributed profits
□Applicable √Non-applicable




                                                33 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                        Annual Report 2020




II. Performance of commitments
  (1) Commitments made by actual controllers, shareholders, related parties, acquirers of the Company, and the Company and other related parties
making commitments during the reporting period or continuing to the reporting period
√Applicable □Non-applicable
                                                                                                                           If such
                                                                                                                                         If such
                                                                                                    Whether     Whether commitments
                                                                                        Date and                                         commitments
                                                                                                    there is a  performe cannot be
 Background       Type of                                                              deadline of                                       cannot be
                                Committed by          Content of commitment                        deadline for d strictly completed
      of        commitment                                                             commitmen                                         completed
                                                                                                   performanc      and     timely, state
 commitment                                                                                 t                                            timely, state
                                                                                                        e        timely    the specific
                                                                                                                                         the next plan
                                                                                                                           reason
Commitment
related to the
share reform
Commitment
made in the
report of
acquisition
or the report
of equity
change
Commitment
related to
significant
asset
restructuring
                                              Within 36 months from the date of
                                              listing, it is prohibited to transfer or
                              MECCA
Commitment Restricted                         entrust any other person to manage March
                              INTERNATIONA
related to      sale of                       the shares of Tuopu Group held prior 2015, 36        Yes          Yes        NA            NA
                              L HOLDING
IPO             shares                        to this issuance, Tuopu Group is not months
                              (HK) LIMITED
                                              allowed to repurchase such shares
                                              held by the Company; if the shares

                                                                       34 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                          Annual Report 2020




                                                held by the Company reduce within
                                                two years after the expiry of the
                                                lock-up period, the price at which the
                                                shares are reduced must not be lower
                                                than the issue price; if the closing
                                                price of shares is lower than the issue
                                                price for 20 trading days in a row
                                                within 6 months after Tuopu Group
                                                goes listed, or the closing price at the
                                                end of the 6-month period after the
                                                day of listing is lower than the issue
                                                price, the lock-up period in respect of
                                                the shares held by the Company shall
                                                automatically extend by 6 months.
                                                If the issuer’s shares are reduced
                                                within two years after the expiry of
                                                the lock-up period, total shares
                                                cumulatively reduced in a year shall
                                                not exceed 5% of the issuer’s shares
                                                after this issuance; the reduction of
                                                shares held is required to comply with
                                                applicable laws and regulations and
                               MECCA            the provisions of SSE, the shares held
Commitment     Restricted      INTERNATIONA     can be reduced by centralized price        March
related to     sale of         L HOLDING        bidding on secondary market and            2015, 5   Yes   Yes   NA        NA
IPO            shares                           other legal means approved by SSE;         years
                               (HK) LIMITED
                                                the price at which the shares held are
                                                reduced shall not be lower than the
                                                issue price (if the issuer’s shares are
                                                subject to distribution of dividends,
                                                issuance of bonus shares, transfer of
                                                capital reserves into additional shares
                                                and other ex-right and ex-dividend
                                                events, the issue price shall be treated
                                                as appropriate). If the issuer’s shares

                                                                           35 / 225
Ningbo Tuopu Group Co., Ltd.                                             Annual Report 2020




                               are reduced within two years after the
                               expiry of the lock-up period, total
                               shares cumulatively reduced in a year
                               shall not exceed 5% of the issuer’s
                               shares after this issuance; the
                               reduction of shares held is required to
                               comply with applicable laws and
                               regulations and the provisions of
                               SSE, the shares held can be reduced
                               by centralized price bidding on
                               secondary market and other legal
                               means approved by SSE; the price at
                               which the shares held are reduced
                               shall not be lower than the issue price
                               (if the issuer’s shares are subject to
                               distribution of dividends, issuance of
                               bonus shares, transfer of capital
                               reserves into additional shares and
                               other ex-right and ex-dividend events,
                               the issue price shall be treated
                               accordingly). And MECCA (HK)
                               further commits: the intention to
                               reduce the issuer’s shares shall be
                               disclosed by issuer by making an
                               announcement three trading days
                               earlier, and shall be governed by the
                               "Company Law", "Securities Law",
                               and the rules of CSRC and SSE.
                               MECCA (HK) further commits that
                               the issuer’s shares are reduced in
                               violation of the above commitments
                               (“Violating Reduction of Shares”, the
                               proceeds from the violating reduction
                               of shares shall be owned by the
                               issuer. Otherwise, the issuer may

                                                         36 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                            Annual Report 2020




                                                withhold a part of the cash dividends
                                                payable to MECCA (HK) bearing the
                                                amount equivalent to the proceeds
                                                from the violating reduction shall be
                                                owned by the issuer.
                                                The shares subscribed for this
                                                non-public offering of the Company
Commitment     Restricted                       must not be transferred within 36         September
related to     sale of         Wu Jianshu       months from the date of listing of        2016, 36     Yes   Yes   NA        NA
refinancing    shares                           additional shares. After the expiry of    months
                                                the period of restricted sales, subject
                                                to the provisions of CSRC and SSE.
                                                1. The Company/Enterprise does not
                                                have, and will not be directly or
                                                indirectly engaged in, or by any form
                                                including but not limited to holding,
                                                participating of shares, joint venture,
                                                associate partnership, lease, agent
                                                operation, trust or other similar form
                                                engage in any operation or activity
                                                that may have constituted or
                                 MECCA          substantially constitute a current or
Commitment                     INTERNATIONA     potential competition against the
               intratype                                                                  June 2016,
related to                     L HOLDING        existing and future operations of                      Yes   Yes   NA        NA
               competition                                                                continuous
refinancing                                     Tuopu Group and its holding
                               (HK) LIMITED
                                                subsidiaries. 2. For companies and
                                                economic      entities    directly   or
                                                indirectly     controlled     by    the
                                                Company/Enterprise,                 the
                                                Company/Enterprise will procure
                                                such companies and economic
                                                entities to perform the obligations of
                                                avoiding competition as contained in
                                                the letter of commitment having
                                                equivalent      standards     to    the
                                                                          37 / 225
Ningbo Tuopu Group Co., Ltd.                                                 Annual Report 2020




                               Company/Enterprise by sending out
                               institutions and persons (including
                               but not limited to directors, managing
                               directors, financial officers) or by
                               gaining the controlling status (e.g.:
                               shareholders’      rights,     directors’
                               rights), so as to keep such companies
                               and      economic       entities     from
                               competing against Tuopu Group and
                               its subsidiaries. 3. If any change in
                               policies and regulations or other
                               reasons that are not attributable to the
                               Company/Enterprise          unavoidably
                               causes other companies or economic
                               entities          controlled            by
                               Company/Enterprise or any company
                               or economic entity that the
                               Company/Enterprise may impose
                               significant impact has constituted or
                               may         potentially        constitute
                               competition, Tuopu Group shall have
                               the right of first refusal as to the
                               trusted management (contracting
                               operation, leasing operation) or
                               acquisition in respect of such
                               operations that have constituted or
                               may         potentially        constitute
                               competition.       4.     The       above
                               commitments are unconditional, if a
                               violation of the above commitments
                               inflicts any financial loss to Tuopu
                               Group, the Company/Enterprise will
                               indemnify other shareholders or
                               interested parties of Tuopu Group
                               against such losses as comprehensive,

                                                            38 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                            Annual Report 2020




                                            prompt and sufficient. 5. This letter of
                                            commitment shall remain in force and
                                            effect           whenever              the
                                            Company/Enterprise           and      any
                                            company        controlled       by     the
                                            Company/Enterprise are related to
                                            Tuopu Group.
                                            1. I does not have, and will not be
                                            directly or indirectly engaged in, or
                                            by any form including but not limited
                                            to holding, participating of shares,
                                            joint venture, associate partnership,
                                            lease, agent operation, trust or other
                                            similar form engage in any operation
                                            or activity that may have constituted
                                            or substantially constitute a current or
                                            potential competition against the
                                            existing and future operations of
                                            Tuopu Group and its holding
                                            subsidiaries. 2. For companies and
Commitment     Resolve
                                            economic       entities     directly    or    June 2016,
related to     intratype       Wu Jianshu                                                              Yes   Yes   NA        NA
                                            indirectly controlled by I, I will            continuous
refinancing    competition
                                            procure      such     companies       and
                                            economic entities to perform the
                                            obligations of avoiding competition
                                            as contained in the letter of
                                            commitment        having       equivalent
                                            standards to I by sending out
                                            institutions and persons (including
                                            but not limited to directors, managing
                                            directors, financial officers) or by
                                            gaining the controlling status (e.g.:
                                            shareholders’      rights,     directors’
                                            rights), so as to keep such companies
                                            and      economic       entities     from

                                                                         39 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                               Annual Report 2020




                                                     competing against Tuopu Group and
                                                     its subsidiaries. 3. If any change in
                                                     policies and regulations or other
                                                     reasons that are not attributable to I
                                                     unavoidably causes other companies
                                                     or economic entities controlled by
                                                     Company/Enterprise or any company
                                                     or economic entity that I may impose
                                                     significant impact has constituted or
                                                     may         potentially      constitute
                                                     competition, Tuopu Group shall have
                                                     the right of first refusal as to the
                                                     trusted management (contracting
                                                     operation, leasing operation) or
                                                     acquisition in respect of such
                                                     operations that have constituted or
                                                     may         potentially      constitute
                                                     competition.      4.     The    above
                                                     commitments are unconditional, if a
                                                     violation of the above commitments
                                                     inflicts any financial loss to Tuopu
                                                     Group, I will indemnify other
                                                     shareholders or interested parties of
                                                     Tuopu Group against such losses as
                                                     comprehensive,         prompt      and
                                                     sufficient. 5. This letter of
                                                     commitment shall remain in force and
                                                     effect whenever I and any company
                                                     controlled by I are related to Tuopu
                                                     Group.
                               14 specific           The shares subscribed by New China
Commitment     Restricted      investors including   Asset Management Co., Ltd., UBS
                                                                                               February
related to     sale of         New China Asset       AG, CITIC Securities Co., Ltd.                       Yes   Yes   NA        NA
                                                                                               2021, 6
refinancing    shares          Management Co.,       (Self-run), China Securities Co., Ltd.,
                                                                                               months
                               Ltd.                  HFT Investment Management Co.,

                                                                               40 / 225
Ningbo Tuopu Group Co., Ltd.                                             Annual Report 2020




                               Ltd., CITIC Securities Co., Ltd.
                               (Asset Management), New China
                               Fund Management Co., Ltd., China
                               Galaxy Securities Co., Ltd., Huaneng
                               Guicheng Trust Co., Ltd., Goldman
                               Sachs & Co. LLC, MORGAN
                               STANLEY               &             CO.
                               INTERNATIONAL PLC., Zhejiang
                               Zhonghao Investment Co., Ltd.,
                               Chengdu Fusen-Noble House Co.,
                               Ltd., Beijing Renaissance Era
                               Investment Management Co., Ltd. as
                               14 specific issuance targets are locked
                               for 6 months from the date of end of
                               non-public issuance.
Commitment
related to
equity
incentives
Other
commitments
made to the
small and
medium
shareholders
of the
Company
Other
commitments




                                                         41 / 225
Ningbo Tuopu Group Co., Ltd.                                                          Annual Report 2020




  (2) There is an expected profit as to the assets or projects of the Company, and the reporting
period still falls in the profit expectation period, the Company states whether the assets or projects
attain the original profit expectation and gives the reason
□Attained □Not attained √Non-applicable

  (3) The status of performance of commitments and its impact on the goodwill impairment test
□Applicable √Non-applicable

III. Occupancy of funds and progress of debt clearing during the reporting period
□Applicable √Non-applicable
IV. Notes of the Company to the "Modified Audit Opinion Report" Released by the Accounting
Firm
□Applicable √Non-applicable
V. Notes to Analysis of the Reasons and Impact of Changes in Accounting Policies, Accounting
Estimates or Corrections of Major Accounting Errors
  (1) Notes to analysis of the Reasons and Impact of Changes in Accounting Policies or Accounting
Estimates
√Applicable □Non-applicable
      In 2017, the Ministry of Finance revised the "Accounting Standards for Business Enterprises No.
14-Revenue". The revised standards stipulates that when these standards are initially applied, the amount
of retained earnings and other related items as contained in the financial statements should be adjusted
according to the cumulative impact, and the information for the comparable period is not adjusted.
      The Company adopts the revised revenue standards from January 1, 2020. Under these standards,
when these standards are initially applied, the amount of retained earnings in the early 2020 and other
related items as contained in the financial statements should be adjusted according to the cumulative
impact, and the information for the comparable period is not adjusted.

  (2) Notes to Analysis of the Reasons and Impact of the Correction of Major Accounting Errors
□Applicable √Non-applicable
  (3) Communication with the Former Accounting Firm
□Applicable √Non-applicable
  (4) Other Notes
□Applicable √Non-applicable
VI. Appointment and Dismissal of Accounting Firm
                                                            Unit:in 10,000 Yuan Currency:RMB
                                                                Current Accounting Firm
Name of domestic accounting firm                         BDO China Shu Lun Pan Certified Public
                                                       Accountants LLP (Special General Partnership)
Remuneration paid to domestic accounting firm                             160
Audit period of domestic accounting firm                                   10

                                                  Name                             Remuneration
Accounting firm responsible      BDO China Shu Lun Pan Certified                                      30
for internal control audit       Public Accountants LLP (Special
                                 General Partnership)
Sponsor                          China Merchants Securities Co. Ltd                                  NA

Notes to appointment and dismissal of accounting firm
√Applicable □Non-applicable
     The 2019 general meeting convened by the Company on June 8, 2020 considered and passed the
“Resolution on Renewal of the Appointment of Audit Institution for 2020”, and decided to renew the
                                                42 / 225
Ningbo Tuopu Group Co., Ltd.                                                         Annual Report 2020


appointment of BDO China Shu Lun Pan Certified Public Accountants LLP (Special General
Partnership) as the audit institution, who will provide audit and internal control audit services of the
financial report of 2020 for the Company.
Notes to change of accounting firm during the reporting period
□Applicable √Non-applicable
VII. Exposure to the risk of suspension of listing
  (1) Reason for suspension of listing
□Applicable √Non-applicable
  (2) Proposed responses by the Company
□Applicable √Non-applicable
VIII. Exposure to the risk of delisting and the reason behind it
□Applicable √Non-applicable
IX. Events concerning bankruptcy and reorganization
□Applicable √Non-applicable
X. Significant Lawsuits and Arbitrations
□The Company is involved in any significant lawsuits and arbitrations in the current year √The
Company is not involved in any significant lawsuits and arbitrations in the current year

XI. Penalties and Rectification of Listed Company and Its Directors, Supervisors, Senior
Managers, Controlling Shareholders, Actual Controllers, and Acquirers
□Applicable √Non-applicable

XII. Notes to the Credit Standing of the Company and Its Controlling Shareholders and Actual
Controllers during the Reporting Period
□Applicable √Non-applicable
XIII. Conditions and Impact of Equity Incentive Plan, ESOP(employee stock ownership plan) or
Other Employee Incentive Measures of the Company
  (1) Related incentive events have been disclosed in the provisional announcement and there is no
progress or change in subsequent implementation
□Applicable √Non-applicable
(2) Incentives that are not disclosed in the provisional announcement or there is a progress in
subsequent implementation
Conditions of equity incentives
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
ESOP
□Applicable √Non-applicable
Other incentive measures
□Applicable √Non-applicable
XIV. Significant Related-party Transactions
  (1) Related-party transactions related to daily operations
1. Events that have been disclosed in the provisional announcement and there is no progress or
change in subsequent implementation
□Applicable √Non-applicable
2. Events that have been disclosed in the provisional announcement, but there is no progress or
change in subsequent implementation
□Applicable √Non-applicable
3. Events that are not disclosed in the provisional announcement
□Applicable √Non-applicable
                                                43 / 225
Ningbo Tuopu Group Co., Ltd.                                                  Annual Report 2020


  (2) Related-party transactions in the acquisition or sale of assets or equity
1. Events that have been disclosed in the provisional announcement and there is no progress or
changes in subsequent implementation
□Applicable √Non-applicable

2. Events that have been disclosed in the provisional announcement, but there is a progress or
change in subsequent implementation
□Applicable √Non-applicable
3. Events that are not disclosed in the provisional announcement
□Applicable √Non-applicable
4. Where there is a performance agreement involved, the performance achieved during the
reporting period shall be disclosed
□Applicable √Non-applicable

  (3) Significant related-party transactions of joint external investment
1. Events that have been disclosed in the provisional announcement and there is no progress or
changes in subsequent implementation
□Applicable √Non-applicable

2. Events that have been disclosed in the provisional announcement, but there are progress or
changes in subsequent implementation
□Applicable √Non-applicable

3. Events that are not disclosed in the provisional announcement
□Applicable √Non-applicable

  (4) Related credits and liabilities
1. Events that have been disclosed in the provisional announcement, but there is no progress or
change in subsequent implementation
□Applicable √Non-applicable

2. Events that have been disclosed in the provisional announcement, but there is a progress or
change in subsequent implementation
□Applicable √Non-applicable

3. Events that have not been disclosed in the provisional announcement
□Applicable √Non-applicable
  (5) Others
□Applicable √Non-applicable

XV. Significant Contracts and Performance of Contracts
  (1) Events of trusteeship, contracting and leasing
1. Trusteeship
□Applicable √Non-applicable

2. Contracting
□Applicable √Non-applicable



                                             44 / 225
Ningbo Tuopu Group Co., Ltd.                                                   Annual Report 2020


3. Leasing
□Applicable √Non-applicable

  (2) Guarantee
□Applicable √Non-applicable

 (3) Entrusting others to manage cash assets
1. Entrusted financial management
 (1) General conditions of entrusted financial management

√Applicable □Non-applicable
                                                         Unit:in 10,000 Yuan Currency:RMB
                                                          Unmatured        Unrecovered amount
        Type         Source of funds   Amount incurred
                                                            amount          after the maturity
Structured             Raised funds          84,000.00                 0                       0
deposits

Other Conditions
□Applicable √Non-applicable




                                              45 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                                    Annual Report 2020




  (2) Individual entrusted financial management
√Applicable □Non-applicable
                                                                                                                              Unit:10000Yuan Currency: RMB
                                                                                                                                                  If   Exte
                                                                                                                                                there nt of
                      Type
                                                                                                                                                  is   impa
                        of                                                                                Exp                              If
                                                                                  U                                                              any   irme
                      entru    Amount of    Start date of   End date of                                   ecte                           subje
                                                                                  se   Metho     Annua                                          entru    nt
                       sted     entrusted    entrusted       entrusted    Sour                              d      Actual                 ct to
                                                                                  of     d of     lized                        Actual            sted  prov
      Trustee         finan     financial     financial      financial    ce of                           retur    returns               statut
                                                                                  fu    fixing   return                       recovery          finan ision
                       cial    managemen    managemen       managemen     funds                            ns     or losses               ory
                                                                                  n    returns       s                                           cial    (if
                      mana          t             t              t                                         (if                           proce
                                                                                  ds                                                            mana any)
                      geme                                                                                any)                            dure
                                                                                                                                                geme
                        nt
                                                                                                                                                  nt
                                                                                                                                                 plan
SPDB Ningbo           Struc                                                            Guaran
Economic and          tured                                               Raise        teed
Technological         depos     10,000.00   2020/4/15       2020/7/15     d            non-fix   3.75%               92.71    10,000.00   Yes
Development           its                                                 funds        ed
Zone Sub-branch                                                                        returns
SPDB Ningbo           Struc                                                            Guaran
Economic and          tured                                               Raise        teed
Technological         depos     14,000.00   2020/4/15       2020/7/15     d            non-fix   3.75%              129.79    14,000.00   Yes
Development           its                                                 funds        ed
Zone Sub-branch                                                                        returns
SPDB Ningbo           Struc
Economic and          tured                                                            Guaran
                                                                          Raise
Technological         depos                                                            teed
                                14,000.00   2020/6/23       2020/9/22     d                      3.30%              114.22    14,000.00   Yes
Development           its                                                              non-fix
                                                                          funds
Zone Sub-branch                                                                        ed
                                                                                       returns
SPDB Ningbo           Struc                                               Raise
Economic and          tured     12,000.00   2020/6/29       2020/9/28     d                      3.30%               99.00    12,000.00   Yes
Technological         depos                                               funds
                                                                            46 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                               Annual Report 2020




Development           its
Zone Sub-branch
SPDB Ningbo           Struc
Economic and          tured                                                       Guaran
                                                                     Raise
Technological         depos                                                       teed
                                 5,000.00   2020/6/29   2020/9/28    d                      3.30%    41.25    5,000.00   Yes
Development           its                                                         non-fix
                                                                     funds
Zone Sub-branch                                                                   ed
                                                                                  returns
SPDB Ningbo           Struc                                                       Guaran
Economic and          tured                                          Raise        teed
Technological         depos      5,000.00   2020/7/8    2020/10/9    d            non-fix   3.20%    40.00    5,000.00   Yes
Development           its                                            funds        ed
Zone Sub-branch                                                                   returns
SPDB Ningbo           Struc                                                       Guaran
Economic and          tured                                          Raise        teed
Technological         depos     16,000.00   2020/9/24   2020/12/24   d            non-fix   3.10%   124.00   16,000.00   Yes
Development           its                                            funds        ed
Zone Sub-branch                                                                   returns
SPDB Ningbo           Struc
Economic and          tured                                                       Guaran
                                                                     Raise
Technological         depos                                                       teed
                                 8,000.00   2020/9/28   2020/12/28   d                      3.10%    62.00    8,000.00   Yes
Development           its                                                         non-fix
                                                                     funds
Zone Sub-branch                                                                   ed
                                                                                  returns

Other Conditions
□Applicable √Non-applicable




                                                                       47 / 225
Ningbo Tuopu Group Co., Ltd.                                                          Annual Report 2020




  (3) Impairment provision for entrusted financial management
□Applicable √Non-applicable

2. Conditions of entrusted loans
  (1) General conditions of entrusted loans
□Applicable √Non-applicable
Other conditions
□Applicable √Non-applicable

  (2) Individual entrusted loans
□Applicable √Non-applicable
Other Conditions
□Applicable √Non-applicable

  (3) Impairment provision for entrusted loans
□Applicable √Non-applicable

3. Other Conditions
□Applicable √Non-applicable

  (4) Other Significant Contracts
□Applicable √Non-applicable

XVI. Notes to Other Significant Events
□Applicable √Non-applicable

XVII. Proactive Performance of Social Responsibilities
  (1) Poverty relief condition of listed company
□Applicable √Non-applicable

  (2) Fulfillment of social responsibility
√Applicable □Non-applicable
1. Conduct business in accordance with laws and regulations, and protect the legitimate rights and
interests of all shareholders and related parties.
      During the reporting period, the Company strictly followed the "Company Law", "Securities Law",
the applicable regulations of CSRC and SSE and the provisions under the "Articles of Association" ,
establish the corporate governance structure well, improve the internal control system, run the internal
control system effectively, and the general meeting, Board of Directors, Board of Supervisors,
independent directors and management strictly act in compliance with the internal control system, and
protect the legitimate rights and interests of the Company, shareholders and other related parties.
2. Perform the obligation of information disclosure and maintain good relations with investors.
      The Company acts in accordance with all regulations on information disclosure and make sure that
relevant information would be disclosed truthfully, accurately, completely, timely and fairly, to the
extent that all investors can obtain information unbiasedly.
3. Pay taxes in accordance with the law, and economic and social benefits will grow together.
      From the date of incorporation, the Company has been running business in good faith and paying
taxes as required by law, with due contribution made to local economic development.
4. Secure the rights and interests of staff members.
      Adhering to the people-oriented principle and seeking economic benefits, the Company also
pursues maximum social benefits. In the course of growth and expansion, the wages distributed to staff
members are increasing at a high rate; with a high awareness of production safety, the Company delivers
                                                48 / 225
Ningbo Tuopu Group Co., Ltd.                                                             Annual Report 2020


all kinds of training sessions on job skills and production safety practice to staff members, which in turn
makes them better adapted to jobs and skills.
5. Protect the legitimate rights and interests of customers and suppliers.
      The Company considers it important to protect the rights and interests of the upstream and
downstream chains. Provide customers with products that have stable quality, prompt delivery and
competitive price in order to protect the rights and interests of customers; offer reasonable price to
suppliers and make timely payment in order to protect the rights and interests of suppliers.
6. Respond to the outbreak of COVID-19 and proactively fulfill social responsibilities.

    In February 2020, the Company responded to the outbreak of COVID-19 and donated 6,200
protective suits at a value of RMB 403,000 to Ningbo Beilun Charity Federation.

  (3) Information about environment
1. Notes to the environmental protection conditions of companies and their important subsidiaries
announced by the environmental protection authority as key emission entities
√Applicable □Non-applicable
  (1) Information about emissions
√Applicable □Non-applicable
      During the reporting period, the key emissions of relevant companies or subsidiaries announced by
the environmental protection authorities are provided as follows:
       (1) Under the "Notice of Ningbo Municipal Bureau of Ecology and Environment on printing and
handing out the list of key emission entities in Ningbo in 2020", as circulated by Ningbo Municipal
Bureau of Ecology and Environment on April 30, 2020, the plant addressed at Guanhai Road, Chunxiao
Street, Beilun District, Ningbo (“Chunxiao Plant”) is included on the list of key water environment
emission entities and the list of key soil environment supervised entities.
      (2) Under the "Notice on release of the list of key emission entities in Jinhua (updated)”, as
circulated by Jinhua Ecological Environment Bureau on November 27, 2020, Zhejiang Towin
Automobile Parts Co., Ltd., (“Zhejiang Towin”), the wholly-owned subsidiary addressed at Wuxi
County Baihuashan Industrial Park, Jinhua, is included on the list of key water environment emission
entities and the list of key soil environment supervised entities.
       (3) Under the "Notice on the list of key emission units in Sichuan in 2020 (Suining)”, as circulated
by Suining Ecological Environment Bureau on March 31, 2020, Sichuan Maigao Automobile Parts Co.,
Ltd. (“Sichuan Maigao”, the wholly-owned subsidiary addressed at Industrial Concentration
Development Zone of Anju, Suining, is included on the list of key soil environment supervised entities.

  (2) Construction and operation of pollution control facilities
√Applicable □Non-applicable
      All plants of the Company arrange production facilities in a reasonable way, improve processes and
increase the recycling of water, and reduce the emissions of sewage, waste liquid, general solid wastes
and hazardous wastes. The automatic waste monitoring system is running normally and transmitting data
to the environment protection authority in real time, allowing environment protection authorities at all
levels to perform real-time monitoring. Each plant has set up a yard for storage of hazardous wastes in
accordance with the measures applicable to the control of hazardous wastes, taken reasonable
measures against seepage, leakage and overflowing, maintained the hazardous waste management
account and transfer form, and subjected hazardous wastes to the transfer form system.
      The construction and operation of pollution control facilities in the plants or subsidiaries included
on the list of key emission entities are as follows:
      (1) Chunxiao Plant: diversion of rainwater and sewage, diversion of clean water and sewage, obtain
the permit for urban sewage to the drainage pipeline system, and the emission permits granted by
Ningbo Ecological Environment Bureau. The serial numbers of emission permits are
91330200761450380T001V,                 91330200761450380T002U,              91330200761450380T003W,
91330200761450380T004Y              ,       91330200761450380T006Z,          91330200761450380T005W,
91330200761450380T007Y.
      Production wastewater: the production wastewater as gathered from the plant area via the pipeline
to the regulating tank of sewage treatment station are subject to neutralization, flocculation, coarse
                                                  49 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020


sedimentation, air flotation, acidifying, aerobic biochemistry reaction, sedimentation and regulating.
Once acceptable to the standard, the production wastewater will be discharged to the municipal sewage
pipeline, an intelligent sewage treatment control system that can prevent any unacceptable sewage from
accessing to the municipal sewage pipeline. An automatic monitoring system is implemented in the plant
area, which allows the environmental protection authority to monitor how the sewage station operates in
the plant area.
      Domestic sewage: The oily wastewater generated in the canteen is pretreated by the oil trapping
facility, and the domestic sewage is treated by the septic tank. Once acceptable to the pipeline
conveyance standard designated by Chunxiao Sewage Treatment Plant, the domestic wastewater will be
discharged to the municipal sewage pipeline system.
      The above wastewater and sewage subject to the treatment process are finally discharged to
Chunxiao municipal sewage pipeline system via a drain outlet, finally to Chunxiao Sewage Treatment
plant. The normative standard applicable to sewage discharge of Chunxiao Plant: total zinc is subject to
Grade 1 standard as contained in Table 4 of the "Integrated Wastewater Discharge Standard"
(GB8978-1996), other contents are subject to the pipeline conveyance standard of Chunxiao Sewage
Treatment Plant. Actual data of production wastewater test: total zinc is 0.038mg/L, pH value is 8.31,
suspended matter is 10mg/L, COD is 55mg/L; domestic wastewater test data: pH value is 7.60,
suspended matter is 97mg/L, COD It is 354mg/L, all data are acceptable.
      In Chunxiao Plant, rubber scraps, non-conforming products in production, and scrap metal
generated by mold repair are identified as general solid wastes, sorted out by category, then disposed and
recycled. Waste activated carbon, waste paint slags, pickling and phosphate slags, and waste oil
generated in the production process are identified as hazardous wastes, a yard for storage of hazardous
wastes has been set up in accordance with the national applicable provisions. The application for transfer
of hazardous wastes has been submitted in accordance with the applicable management provisions of
Ningbo Ecological Environment Bureau. And the agreements for disposal of hazardous wastes have
been signed with Ningbo Beilun Environmental Solid Waste Disposal Co., Ltd., Hangzhou Fuyang
Shenneng Solid Waste Environmental Recycling Co., Ltd., and Ningbo Zhende Environmental
Technology Co., Ltd.
      (2) Zhejiang Towin: diversion of rainwater and sewage, diversion of clean water and sewage,
obtain the permit for urban sewage to the drainage pipeline system, serial no.: Zhe Wu Wu Pai Zi No.
2017069; obtain the emission permit granted from Jinhua Ecological Environment Bureau, serial no.:
91330723MA29PBM72F001U.
      Production wastewater: the production wastewater as gathered from the plant area via the pipeline
to the regulating tank of sewage treatment station are subject to neutralization, flocculation, coarse
sedimentation, air flotation, acidifying, aerobic biochemistry reaction, sedimentation and regulating.
Once acceptable to the standard, the production wastewater will be discharged to the municipal sewage
pipeline of the Development Zone. An automatic monitoring system is implemented to prevent any
unacceptable sewage from accessing to the municipal sewage pipeline. The environmental protection
authorities at all levels across the nation can monitor how the sewage station operates in the plant area
and the emission indexes.
      Domestic sewage: The oily wastewater generated in the canteen is pretreated by the oil trapping
facility, and the domestic sewage is treated by the septic tank. Once acceptable to the pipeline
conveyance standard designated by Wuyi NO.1 Sewage Treatment Plant, the domestic wastewater will
be discharged to the municipal sewage pipeline system.
      The above wastewater and sewage subject to the treatment process are finally discharged to the
municipal sewage pipeline system of Wuyi Baihuashan Industrial Park via a drain outlet, finally to Wuyi
Sewage Treatment plant.
      The normative standard applicable to sewage discharge of Zhejiang Towin total zinc is subject to
Grade 3 standard of "Integrated Wastewater Discharge Standard" (GB8978-1996), the sewage subject to
treatment process is discharged into the municipal pipeline system. Actual data of production wastewater
test: pH value is 7.10, COD is 145mg/L, ammonia nitrogen is 7.71mg/L, all data are acceptable.
      In Zhejiang Towin Plant, rubber scraps, non-conforming products in production, and scrap metal
generated by mold repair are identified as general solid wastes, collected, then disposed and utilized.
Waste paint slags, pickling and phosphate slags, and waste oil generated in the production process are
identified as hazardous wastes, a dedicated storehouse for hazardous wastes is set up under the national
provisions applicable to collection, packaging, storage, conveyance and disposal of hazardous wastes,
the storage registration account is created on Zhejiang Solid Wastes Monitoring Information System,
                                                 50 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020


and the agreements for disposal of hazardous wastes have been signed with Zhejiang Red Lion
Environmental Protection Co., Ltd. and Zhejiang Yulong Environmental Protection Technology Co.,
Ltd.
      Zhejiang Towin Plant arranges production facilities in a reasonable way, improves processes and
increase the recycling of water, and reduces the emissions of sewage. The automatic waste monitoring
system is running normally and transmitting data to the environment protection authority in real time.
The access control facility (environmental protection authorities at the central, provincial, municipal and
county level can perform real-time monitoring) is added. The plant has set up a yard and storehouse for
hazardous wastes in accordance with the measures applicable to the control of hazardous wastes, and
maintained the hazardous waste management account and transfer form.
      (3) Sichuan Maigao: diversion of rainwater and sewage, diversion of clean water and sewage,
obtain the permit for urban sewage to the drainage pipeline system, and the emission permit granted
from Suining Ecological Environment Bureau of Sichuan (serial no.: 91510904071417225P001U).
      Production wastewater: the production wastewater as gathered from the plant area via the pipeline
to the regulating tank of sewage treatment station are subject to neutralization, flocculation, coarse
sedimentation, air flotation, acidifying, aerobic biochemistry reaction, sedimentation and regulating.
Once acceptable to the standard, the production wastewater will be discharged to Longyanjing Sewage
Treatment Plant. An automatic monitoring system is implemented, which allows the environmental
protection authorities at all levels in Sichuan to monitor how the sewage station operates in the plant
area and the emission indexes.
      Domestic sewage: The oily wastewater generated in the canteen is pretreated by the oil trapping
facility, and the domestic sewage is treated by the septic tank. Once acceptable to the pipeline
conveyance standard designated by Wuyi NO.1 Sewage Treatment Plant, the domestic wastewater will
be discharged to the municipal sewage pipeline system.
      The above wastewater and sewage subject to the treatment process are discharged into the
municipal sewage pipeline of Anju Industrial Concentration Development Zone, finally to Longyanjing
Sewage Treatment Plant.
      The normative standard applicable to sewage discharge of Sichuan Maigao is Grade 3 standard of
"Integrated Wastewater Discharge Standard" (GB8978-1996).The sewage subject to treatment process is
discharged into the municipal pipeline system. Actual data of production wastewater test: total zinc is
<0.17mg/L, pH value is 7.66, COD is 256mg/L; ammonia nitrogen is 8.6mg/L, total phosphorus is
0.38mg/L, petroleum is 0.11mg/L. Actual data of domestic wastewater test: pH value is 7.48, COD is
32mg/L, ammonia nitrogen is 158mg/L, all data are acceptable.
      In Sichuan Maigao Plant, rubber scraps, non-conforming products in production, and scrap metal
generated by mold repair are identified as general solid wastes, collected, then disposed and utilized.
Waste paint slags, pickling and phosphate slags, and waste oil generated in the production process are
identified as hazardous wastes, a dedicated yard and storehouse for hazardous wastes is set up under the
national provisions applicable to collection, packaging, storage, conveyance and disposal of hazardous
wastes, the application for transfer of hazardous wastes has been submitted in accordance with the
applicable management provisions of Anju Environmental Protection Bureau, and the agreements for
disposal of hazardous wastes have been signed with Xide County Liangzai Silicon Industry Co., Ltd.,
Mianyang XinkeYuan Environmental Protection Technology Co., Ltd., and Sichuan Zhongming
Environmental Treatment Co., Ltd.
      Sichuan Maigao has been approved in the environmental protection acceptance procedure by
Suining Enviromental Protection Bureau and filed for urban rainwater and sewage pipeline. Acting in
strict accordance with the national emission standards, Sichuan Maigao is committed to improving the
environment, with minor impact on the surrounding environment.The sludge, waste oil, and waste paint
slag generated from the sewage station are disposed by Xide County Liangzai Silicon Industry Co., Ltd.,
Mianyang XinkeYuan Environmental Protection Technology Co., Ltd., and Sichuan Zhongming
Environmental Treatment Co., Ltd. Sichuan Maigao has set up storage spaces for all wastes (general
wastes and hazardous wastes), taken reasonable measures against seepage, leakage and overflowing,
and subjected hazardous wastes to the transfer form system.




                                                 51 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020




(3) EIA of construction projects and administrative permits granted to other environmental
protection
√Applicable □Non-applicable
     All construction projects in each plant are subject to the project-specific EIA requirement and
comply with the national emission standards, approved by the environmental protection acceptance and
filed for urban rainwater and sewage pipeline. All environmental impact factors are acceptable to the
project-specific EIA requirement. Each plant is committed to improving the environment.

  (4) Emergency response for environmental contingencies
√Applicable □Non-applicable
      The Company has laid down the integrated and dedicated emergency responses to environmental
contingencies, which can direct the rescue operations in case of environmental contingencies. The
Company makes announcement on Zhejiang Business Announcement Platform for Environmental
Contingencies, under the record number: 330206-2015-007-L.

  (5)In-house environmental monitoring plan
√Applicable □Non-applicable
      The Company tests wastewater, waste gas, and noise at plant boundaries in all plants at regular
intervals every year, which are found to be acceptable under the national standards; the plan for disposal
of hazardous wastes is submitted earlier each year.

  (6) Other environmental information that should be disclosed
□Applicable √Non-applicable
2. Notes to the environmental protection of the companies other than key emission entities
□Applicable √Non-applicable
3. Notes to the reasons for any company other than key emission entities who fails to disclose the
environmental information
√Applicable □Non-applicable
      Except for Chunxiao Plant, the subsidiaries Zhejiang Towin and Sichuan Maigao as included on the
list of key emission entities, other subsidiaries as included in the scope of consolidated statements are
not the key emission entities released by the ecological environment supervision authority.
      During the reporting period, the Company and all of its subsidiaries strictly act in accordance with
the national provisions concerning environmental protection, and have laid down strict environmental
operation codes, there is no violation of environmental protection provisions or dispute over pollution
accident, and there is no circumstance under which they are imposed the administrative punishment by
any environmental protection authority due to violation of environmental protection provisions.

4. Notes to the subsequent progress or changes in the environmental information disclosure during
the reporting period
□Applicable √Non-applicable
  (4) Other Notes
□Applicable √Non-applicable
XVIII. Convertible Corporate Bonds
□Applicable √Non-applicable




                                                 52 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020



              Section VI Changes in Common Shares and Shareholders
1. Changes in capital of common shares
  (1) Changes in common shares
1. Changes in common shares
During the reporting period, there is no change happened to the total number of common shares and the
share capital structure of the Company.
2. Notes to changes in common shares
□Applicable √Non-applicable
3. Impact of changes in common shares on financial indexes such as EPS and net assets per share
in the most recent year and the most recent period (if any)
□Applicable √Non-applicable
4. Other content as the Company deems necessary to disclose or required by the securities
regulatory institution
□Applicable √Non-applicable
  (2) Changes in restricted sale of shares
□Applicable √Non-applicable
                                                                                          Unit: shares
                                                        Number
                              Number of Number
               Number of                               of shares
                                 shares         of
                shares on                                  on
                               removed     additional
  Name of       restricted                             restricted Reason for       Date of removal of
                                  from     shares on
shareholder sale at the                                  sale at   restricted sale   restricted sale
                               restricted  restricted
                beginning                               the end
                              sale in this   sale in
               of the year                               of the
                                  year      this year
                                                          year
                                                                   36-month
                                                                   lock-up period
     Wu
                 4,521,626 4,521,626                 0           0 of shares in May 24th, 2020
   Jianshu
                                                                   non-public
                                                                   issuance
    Total        4,521,626 4,521,626                 0           0          /               /


II. Issuance of Securities and Public Listing
  (1) Issuance of securities as of the reporting period
□Applicable √Non-applicable
Notes to the issuance of securities as of the reporting period (if there are bonds applicable to different
interest rates in the period, state the reasons separately):
□Applicable √Non-applicable

  (2) Total number of common shares of the Company, changes in the shareholder structure, and
changes in the Company's assets and liabilities structure
□Applicable √Non-applicable
  (3) Existing employee shares
□Applicable √Non-applicable
III. Shareholders and actual controllers
  (1) Total shareholders
Total number (accounts) of common shareholders
                                                                                       28,314
as of the end of the reporting period
Total number (accounts) of common shareholders                                         33,807
                                                 53 / 225
Ningbo Tuopu Group Co., Ltd.                               Annual Report 2020


at the end of the previous month prior to the
disclosure of this annual report
Total number (accounts) of preferred shareholders
whose voting rights have been restored as of the                          NA
end of the reporting period
Total number (accounts) of preferred shareholders
whose voting rights were restored at the end of the
previous month prior to the disclosure of this                            NA
annual report




                                                54 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                                    Annual Report 2020




 (2) Shares held by the top ten shareholders and top ten tradable shareholders (or shareholders not subject to restricted sale) as of the end of the reporting
period
                                                                                                                                                      Unit: Shares
                                                             Shares held by the top ten shareholders
                                                                                                                Number     Condition of pledge
                                                                                  Number of                     of shares      of freezing
                                                              Increase/Decrea shares held                       held
                   Name of Shareholder                                                          Percentage                                           Nature of
                                                                se during the      at the end                   subject                 Number
                       (Full Name)                                                                   (%)                   Status of               shareholders
                                                              reporting period       of the                     to                         of
                                                                                                                            shares
                                                                                     period                     restricte                shares
                                                                                                                d sale
MECCA INTERNATIONAL HOLDING (HK) LIMITED                                        693,680,00
                                                                                                       65.75             0    No
                                                                                                                                                 Foreign
                                                                                             0                                                   corporate
Hong Kong Securities Clearing Company Limited                                     25,858,056            2.45               Unknown               Unknown
CITIC Securities-CITIC Bank-CITIC Securities Dividend
Value One-year Commingled Collective Asset Management                             15,689,597            1.49               Unknown               Unknown
Plan
Kuwait Investment Authority – Own funds                                            9,826,261           0.93               Unknown               Unknown
Agricultural Bank of China Co., Ltd.-CIFM Emerging Power
                                                                                    8,233,474           0.78               Unknown               Unknown
Commingled Securities Investment Fund
Industrial and Commercial Bank of China Co.,
Ltd.-Rongtong China Wind No. 1 Tactic Assets Allocation                             8,018,336           0.76               Unknown               Unknown
Commingled Securities Investment Fund
Industrial and Commercial Bank of China Co., Ltd.-Baoying
                                                                                    7,283,265           0.69               Unknown               Unknown
AI-themed Equity Securities Investment Fund
Wu Jianshu                                                                          7,210,308           0.68             0    No                 Foreign person
Bank of Communications Co., Ltd.-Baoying
                                                                                    5,862,774           0.56               Unknown               Unknown
Innovation-Driven Stock Securities Investment Fund
Ningbo Zhuyue Investment Management Co., Ltd.                                                                                                    Foreign
                                                                                    5,407,630           0.51             0    No                 non-state-owned
                                                                                                                                                 corporate
                                               Shares held by the top ten shareholders not subject to restricted sale
                                    Name of Shareholder                                         Number of tradable               Class and number of shares

                                                                             55 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                                   Annual Report 2020




                                                                                                   shares held not subject
                                                                                                                                                     Number of
                                                                                                   to restricted sale               Class
                                                                                                                                                      shares
MECCA INTERNATIONAL HOLDING (HK) LIMITED                                                                     693,680,000    RMB common shares       693,680,000
Hong Kong Securities Clearing Company Limited                                                                   25,858,056    RMB common shares        25,858,056
CITIC Securities-CITIC Bank-CITIC Securities Dividend Value One-year Commingled                                 15,689,597                             15,689,597
                                                                                                                              RMB common shares
Collective Asset Management Plan
Kuwait Investment Authority – Own funds                                                                          9,826,261   RMB common shares         9,826,261
Agricultural Bank of China Co., Ltd.-CIFM Emerging Power Commingled Securities                                    8,233,474                             8,233,474
                                                                                                                              RMB common shares
Investment Fund
Industrial and Commercial Bank of China Co., Ltd.-Rongtong China Wind No. 1 Tactic                                8,018,336                             8,018,336
                                                                                                                              RMB common shares
Assets Allocation Commingled Securities Investment Fund
Industrial and Commercial Bank of China Co., Ltd.-Baoying AI-themed Equity Securities                             7,283,265                             7,283,265
                                                                                                                              RMB common shares
Investment Fund
Wu Jianshu                                                                                                        7,210,308   RMB common shares         7,210,308
Bank of Communications Co., Ltd.-Baoying Innovation-Driven Stock Securities Investment                            5,862,774                             5,862,774
                                                                                                                              RMB common shares
Fund
Ningbo Zhuyue Investment Management Co., Ltd.                                                                  5,407,630 RMB common shares              5,407,630
Notes to the associated relationship or concerted action of the above shareholders                 Among these shareholders:

                                                                                                   1. Mr. Wu Jianshu holds 100% of the shares in MECCA
                                                                                                   INTERNATIONAL HOLDING (HK) LIMITED.
                                                                                                   2. Ningbo Zhuyue Investment Management Co., Ltd. is a
                                                                                                   wholly-owned sub-subsidiary of MECCA INTERNATIONAL
                                                                                                   HOLDING (HK) LIMITED, the controlling shareholder of the
                                                                                                   Company, and is a person acting in concert.
                                                                                                   In addition, the Company doesn’t know whether there is an
                                                                                                   associated relationship among the above shareholders or whether
                                                                                                   they are parties acting in concert.
Notes to the preferred shareholders whose voting rights have been restored and the number of       NA
shares held

Number of shares held by the top ten shareholders subject to restricted sale and the conditions of restricted sales
□Applicable √Non-applicable

                                                                                 56 / 225
Ningbo Tuopu Group Co., Ltd.                                                  Annual Report 2020




  (3) Strategic investors or general legal persons becoming the top ten shareholders due to the
placement of new shares
□Applicable √Non-applicable

IV. Controlling Shareholder and Actual Controller
  (1) Information about controlling shareholders
1 Corporate
√Applicable □Non-applicable
Name                                  MECCA INTERNATIONAL HOLDING (HK) LIMITED
Head or legal representative          Wu Jianshu
Date of Incorporation                 July 21st, 2008
Main business operations              Investment
Shareholding status of other NA
domestic and overseas listed
companies that hold or participate in
shares during the reporting period
Other notes                           NA

2 Natural person
□Applicable √Non-applicable
3 Special notes to no controlling shareholders in the Company
□Applicable √Non-applicable
4 Index and date of changes in controlling shareholders during the reporting period
□Applicable √Non-applicable
5 Block diagram of the equity rights and control relations between the Company and controlling
shareholders
√Applicable □Non-applicable




                                            57 / 225
Ningbo Tuopu Group Co., Ltd.                                                    Annual Report 2020


  (2) Actual controllers
1 Corporate
□Applicable √Non-applicable
2 Natural person
√Applicable □Non-applicable
Name                                                         Wu Jianshu
Nationality                                                  Hong Kong
Whether the above person has                                    Yes
acquired the right of residence in
other countries or regions
Jobs and titles                       Formerly as Chairman of Ningbo Tuopu Vibration control
                                      System Co., Ltd., Chairman of Ningbo Tuopu Soundproof
                                      System Co., Ltd., Chairman of Ningbo Tuopu Coupling Co.,
                                      Ltd., Chairman of Ningbo Tuopu Automobile Special Rubber
                                      Co., Ltd., Chairman of Ningbo Tuopu Brake System Co., Ltd.
                                      Currently in the capacity of Chairman of MECCA
                                      INTERNATIONAL HOLDING (HK) LIMITED, Chairman of
                                      Ningbo Tuopu Group Co., Ltd.
Domestic      or    overseas listed                               NA
companies controlled by the above
person in the past 10 years

3 Special notes to no controlling shareholders in the Company
□Applicable √Non-applicable
4 Index and date of changes in controlling shareholders during the reporting period
□Applicable √Non-applicable
5 Block diagram of the equity rights and control relations between the Company and controlling
shareholders
□Applicable √Non-applicable




6. Actual controller who controls the company through trust or other asset management methods
□Applicable √Non-applicable



                                             58 / 225
Ningbo Tuopu Group Co., Ltd.                                                      Annual Report 2020


  (3) Other information about the controlling shareholder and actual controller
□Applicable √Non-applicable

V. Other corporate shareholders holding more than 10% of the shares
□Applicable √Non-applicable
VI. Notes to restricted reduction of shares
□Applicable √Non-applicable

                     Section VII Information about Preferred Shares
□Applicable √Non-applicable




                                              59 / 225
 Ningbo Tuopu Group Co., Ltd.                                                                                                               Annual Report 2020

                                        Section VIII Directors, Supervisors, Officers and Employees

I. Changes in Shares Held and Remuneration
  (1) Changes in shares held and remuneration of current and resigned directors, supervisors and officers during the reporting period
√Applicable □Non-applicable
                                                                                                                                                   Unit:Shares
                                                                                                                                    Total pre-tax      Whether
                                                                                                                                    remuneration        receive
                                                                            Number of                                   Reason
                                                                                           Number of      Increase/D              received from the remunerat
                                                 Date of                    shares held                                   for
                                Gend                           Date of                     shares held     ecrease in             Company during       ion from
  Name        Capacity (Note)           Age      taking                        at the                                   increas
                                 er                            leaving                    at the end of    shares in                the reporting       related
                                                 office                      beginning                                  e/decre
                                                                                             the year       the year              period (in 10,000 parties of
                                                                            of the year                                   ase
                                                                                                                                        Yuan)             the
                                                                                                                                                      Company
Wu              Chairman,       Male    57     2020-10-19    2023-10-18       7,210,308     7,210,308              0                              0       No
Jianshu          Director
Wang Bin        Chairman,       Male    46     2020-10-19    2023-10-18               0              0             0                           200      No
                Managing
                 Director
Pan           Chairman, Vice    Male    41     2020-10-19    2023-10-18               0              0             0                           200      No
Xiaoyong         President
Wu            Chairman, Vice    Male    44     2020-10-19    2023-10-18               0              0             0                           200      No
Weifeng          President
Jiang         Chairman, Vice    Male    50     2020-10-19    2023-10-18               0              0             0                           200      No
Kaihong          President
Zhou           Independent      Fema    44     2020-10-19    2023-10-18               0              0             0                             5      No
Ying              director         le
Zhao           Independent      Fema    51     2020-10-19    2023-10-18               0              0             0                          2.90      No
Xiangqiu          director      le
Wang           Independent       Male   64     2020-10-19    2023-10-18               0              0             0                          1.25      No
Yongbin           director
Wang          Board Secretary   Male    42     2020-10-19    2023-10-18               0              0             0                            60      No
Mingzhen
Yan Qunli    Board Chairman,    Male    49     2020-10-19    2023-10-18               0              0             0                            63      No


                                                                          60 / 225
 Ningbo Tuopu Group Co., Ltd.                                                                                                             Annual Report 2020

                Supervisor
Duan            Supervisor      Male     39     2020-10-19    2023-10-18               0             0            0                           65       No
Xiaochen
g
Wang          Supervisor on     Male     40     2020-10-19    2023-10-18               0             0            0                        25.60       No
Chengcai      Behalf of Staff
                 Members
Hong             Financial      Male     43     2020-10-19    2023-10-18               0             0            0                           40       No
Tieyang          Director
Zhou           Independent      Male     58     2014-03-15    2020-04-27               0             0            0                          2.5       No
Jingyao           director
Wang           Independent      Male     56     2014-09-22    2020-10-18               0             0            0                         4.20       No
Minquan           director
   Total              /           /       /          /             /           7,210,308     7,210,308            0      /              1,069.45        /


  Name                                                                      Working Experience
   Wu        Formerly as Chairman of Ningbo Tuopu Vibration control System Co., Ltd., Chairman of Ningbo Tuopu Soundproof System Co., Ltd., Chairman of
 Jianshu     Ningbo Tuopu Coupling Co., Ltd., Chairman of Ningbo Tuopu Automobile Special Rubber Co., Ltd., Chairman of Ningbo Tuopu Brake System Co.,
             Ltd. Currently in the capacity of Chairman of MECCA INTERNATIONAL HOLDING (HK) LIMITED, Chairman and Director of the Company.
Wang Bin     Formerly as Vice general manager of Ningbo Economic and Technological Development Zone Tuopu Industrial Co., Ltd., Director and general
             manager of Ningbo Tuopu vibration control System Co., Ltd., General manager of Ningbo Tuopu Import and Export Co., Ltd., Vice general manager
             and Director of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director and President of the Company.
  Pan        Formerly as Vice general manager of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., Manager of System Development Department of
Xiaoyong     Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., and Director of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director
             and Vice President of the Company.
  Wu         Formerly as Director of of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., general manager of Ningbo Tuopu Automobile Special Rubber
 Weifeng     Co., Ltd., President of Ningbo Bahe Mould Co., Ltd., Vice general manager of Ningbo Tuopu Soundproof System Co., Ltd., Vice general manager and
             Director of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director and Vice President of the Company.
 Jiang       Formerly as Manager of Engineering Department of Ningbo Economic and Technological Development Zone, Director of R&D Center of Ningbo
Kaihong      Tuopu vibration control System Co., Ltd., general manager of Ningbo Tuopu Automobile Parts Co., Ltd., Vice general manager of Electronic System
             Division of Ningbo Tuopu Brake System Co., Ltd. Currently in the capacity of Director and Vice President of the Company.
Zhou Ying    CPA, CPV. Formerly worked in Beilun Finance Bureau, currently serve Ningbo Donghai Accounting Firm. Currently in the capacity of independent
             director of the Company.
  Zhao       Formerly as a practicing lawyer in Zhejiang Fanxin Law Firm, currently as a lawyer, partner and executive director of Zhejiang Yahui Law Firm.


                                                                           61 / 225
 Ningbo Tuopu Group Co., Ltd.                                                                                                               Annual Report 2020

Xiangqiu     Currently as an independent director of the Company.
 Wang        Formerly taught in Zhejiang Agricultural University at Ningbo after graduation, formerly as a professor of machinery at Zhejiang Wanli University,
Yongbin      the first tutor of master candidates, President of the Institute of Mechatronic System Technology, Director of Mechatronic System Technology
             Laboratory, now retired. Currently as an independent director of the Company, concurrently hold the office of independent director in Ningbo Jifeng
             Auto Parts Co., Ltd. (603997.SH), NBTM New Materials Group Co., Ltd. (600114.SH), Zhejiang LERA New Energy Power Technology Co., Ltd.,
             and Ningbo Da Zhi Machine Technology Co., Ltd.
  Wang       Formerly as general manager of Ningbo Tuopu Import and Export Co., Ltd.., Supervisor of Ningbo Tuopu Group Co., Ltd. Currently as Board
Mingzhen     Secretary of the Company.
Yan Qunli    Formerly as Director of Mold Center, Project Manager of Engineering Department and Manager of Engineering Department of Ningbo Ningbo
             Economic and Technological Development Zone Tuopu Industrial Co., Ltd., Vice general manager of Marketing of Ningbo Tuopu Automobile Parts
             Co., Ltd., general manager of vibration control System NO.1 Department of Ningbo Tuopu Brake System Co., Ltd., and Director and Vice President of
             Ningbo Tuopu Brake System Co., Ltd. Current as the chairman of Board of Supervisors of the Company.
  Duan       Formerly as System Integration Section Chief of Ningbo Tuopu Acoustics Vibration Technology Co., Ltd., Chief Engineer of R&D Center of Ningbo
Xiaocheng    Tuopu Group Co., Ltd., and Vice general manager of R&D Center of Ningbo Tuopu Group Co., Ltd. Currently in the capacity of general manager of
             Electronic Control System of Electronics Division of Ningbo Tuopu Group Co., Ltd. and Supervisor of the Company.
 Wang        Holder of Master Degree of Laws, Economist. Formerly as a lecturer at the School of Humanities and Social Sciences of Jingchu Institute of
Chengcai     Technology, part-time lawyer at Hubei Fazhixing Law Firm, legal counsel assistant of China Youngman Automobile Group Co., Ltd., legal specialist
             of SELF Electronics Co., Ltd., Manager of Legal Department of Ningbo Cixing Co., Ltd. Currently as Legal Director and Supervisor of the Company.
  Hong       Formerly as Financial Officer of Ningbo Huazhong Plastic Products Co., Ltd., Project Manager of Ningbo Zhongcheng Tax Accountant Firm, and
 Tieyang     Financial Manager of Ningbo Tuopu Group Co., Ltd. Currently as Financial Director of the Company.
  Zhou       Formerly as the head of Zhejiang Fanxin Law Firm, council member of Ningbo Lawyers Association, arbitrator of Ningbo Arbitration Commission,
 Jingyao     and legal counselor of Beilun People's Government. Concurrently as an independent director of Ningbo Xusheng Auto Technology Co., Ltd.
   (left)    (603305.SH), and independent director of Ningbo Orient Cable Co., Ltd. (603606.SH). Independent director of the second and third sessions of Board
             of Directors of the Company, left from the office due to expiration of tenure in April 2020.
 Wang        Formerly as the head of Electrical Experiment Center of Huaihai Institute of Technology, and Director of Automation Program of Ningbo Polytechnic,
Minquan      currently as a teacher at Ningbo Polytechnic, concurrently as a member of Automation Teaching Steering Committee in Zhejiang Higher Vocational
 (left)      Colleges, procurement specialist of electromechanical equipment appointed by Ningbo government, member of the Ninth CPPCC in Beilun District,
             and member of “Teachers’ Textbook Instrument” Specialized Committee of China Vocational Education Association. Concurrently as an independent
             director of Ningbo Xusheng Auto Technology Co., Ltd. (603305.SH). Independent director of the second and third sessions of Board of Directors of
             the Company, left from the office due to expiration of tenure in October 2020.

Other Notes
√Applicable □Non-applicable
1. On April 27, 2020, Mr. Zhou Jingyao as an independent director resigned the office of independent director of the third session of Board of Directors of the
Company and the chief member of Nomination Committee and member of Remuneration and Evaluation Committee, due to expiration of tenure. After resignation,
he will no longer hold any position in the Company.

                                                                            62 / 225
 Ningbo Tuopu Group Co., Ltd.                                                                                                                Annual Report 2020

2. On April 27, 2020, the company held the 19th meeting of the Third Session of Board of Directors, Mrs. Zhao Xiangqiu was nominated as the independent director
candidate of the Third Session of Board of Directors of the Company. At the subsequent general meeting of 2019, the resolution on by-election of Mrs. Zhao
Xiangqiu as independent director of the Third Session of Board of Directors was passed.
3. On September 28, 2020, because the term of the Third Session of Board of Directors was about to expire, the Company convened the 23rd meeting of the Third
Session of Board of Directors, where the “Resolution on re-election of Board of Directors” was considered and passed, the Board of Directors nominated Mr. Wu
Jianshu, Mr. Wang Bin, Mr. Wu Weifeng, Mr. Pan Xiaoyong, and Mr. Jiang Kaihong as non-independent director candidates of the Fourth Session of Board of
Directors; Mrs. Zhou Ying, Mrs. Zhao Xiangqiu, and Mr. Wang Yongbin were nominated as the independent direct candidates for the Fourth Session of Board of
Directors of the Company. At the subsequent first extraordinary general meeting of 2020, the resolution on election of Mr. Wu Jianshu, Mr. Wang Bin, Mr. Wu
Weifeng, Mr. Pan Xiaoyong, and Mr. Jiang Kaihong as non-independent director candidates of the Fourth Session of Board of Directors of the Company was passed,
and the resolution on election of Mrs. Zhou Ying, Mrs. Zhao Xiangqiu, and Mr. Wang Yongbin as the independent director candidates of the Fourth Session of
Board of Directors of the Company was passed.
4. On September 28, 2020, because the term of the Third Session of Board of Supervisors was about to expire, the Company convened the 17th meeting of the Third
Session of Board of Supervisors, where the “Resolution on re-election of Board of Supervisors” was considered and passed, Mr. Yan Qunli and Mr. Duan
Xiaocheng were nominated by the Board of Supervisors as the supervisor candidates on behalf of shareholders of the Fourth Session of Board of Supervisors. At the
subsequent first extraordinary general meeting of 2020, this resolution was passed. On September 28, 2020, the Company convened the congress of workers and
staff, where Mr. Wang Chengcai was elected as the supervisor on behalf of staff members of the Fourth Session of Board of Supervisors. Mr. Yan Qunli, Mr. Duan
Xiaocheng and Mr. Wang Chengcai formed the Fourth Board of Supervisors of the Company.
5. On October 19, 2020, the Company held the first meeting of the Fourth Board of Directors, where Mr. Wu Jianshu was elected as Chairman of the Fourth Board
of Directors, with the same tenure as that in the Fourth Session of Board of Directors; Mr. Wang Bin was appointed as President of the Company, with a tenure of
three years; Mr. Pan Xiaoyong, Mr. Wu Weifeng and Mr. Jiang Kaihong were appointed as Vice President of the Company, with a tenure of three years; Mr. Wang
Mingzhen was appointed as Board Secretary of the Company, with the same tenure as that in Fourth Session of Board of Directors; Mr. Hong Tieyang was
appointed as Financial Director of the Company, with a tenure of three years;

6. On October 19, 2020, the Company held the first meeting of the Fourth Board of Supervisors, where Mr. Yan Qunli was elected as Chairman of the Fourth Board
of Supervisors, with the same tenure as that in the Fourth Session of Board of Supervisors.

  (2) The equity incentives granted to directors and officers during the reporting period
□Applicable √Non-applicable

II. Office held by current and resigned directors, supervisors and officers during the reporting period
  (1) Office held in corporate shareholder
√Applicable □Non-applicable
                                                                              Office held in corporate
   Name of persons in office         Name of corporate shareholder                                             Date of office held       Date of end of office
                                                                                    shareholder
          Wu Jianshu                  MECCA INTERNATIONAL                            Chairman                     2008-07-21


                                                                            63 / 225
 Ningbo Tuopu Group Co., Ltd.                                                                                                               Annual Report 2020

                                        HOLDING (HK) LIMITED
Note to office held             in                                                             No
corporate shareholder




(2) Office held in other entities
√Applicable □Non-applicable
   Name of persons in office                   Name of other entity           Office held in other entity     Date of office held       Date of end of office
          Zhou Ying                  Ningbo Donghai Accounting Firm                    Manager
        Zhao Xiangqiu                Zhejiang Yahui Law Firm                  Partner, executive director
        Wang Yongbin                 Ningbo Jifeng Auto Parts Co., Ltd.         Independent director
        Wang Yongbin                 NBTM New Materials Group Co., Ltd.         Independent director
        Wang Yongbin                 Zhejiang LERA New Energy Power             Independent director
                                     Technology Co., Ltd.
        Wang Yongbin                 Ningbo Da Zhi Machine Technology Co.,       Independent director
                                     Ltd.
         Zhou Jingyao                Zhejiang Fanxin Law Firm
         Zhou Jingyao                Ningbo Orient Cable Co., Ltd.               Independent director
         Zhou Jingyao                Ningbo Xusheng Auto Technology Co.,         Independent director
                                     Ltd.
       Wang Minquan                  Ningbo Polytechnic                                Teacher
       Wang Minquan                  Ningbo Xusheng Auto Technology Co.,         Independent director
                                     Ltd.
 Notes to office held in other       No
           entities


III. Remuneration of Directors, Supervisors and Officers
√Applicable □Non-applicable
Decision-making procedure as to the Under the “Articles of Association”, the remuneration of directors and supervisors is decided at the general
remuneration of directors, supervisors and meeting; the remuneration of officers is decided by the Board of Directors.
officers
Basis for fixing the remuneration of directors, Fixed according to the industry and local conditions, by referring to the comparable standard of similar listed


                                                                             64 / 225
 Ningbo Tuopu Group Co., Ltd.                                                                                                               Annual Report 2020

supervisors and officers                        companies and the actual condition of the Company, where applicable
Actuap payment of the remuneration of           The remuneration of directors, supervisors and officers have been paid
directors, supervisors and officers
Total remuneration received by all directors,   RMB 10.6945 million
supervisors and officers at the end of the
reporting period


IV. Changes in directors, supervisors and officers
√Applicable □Non-applicable
                Name                                 Office held                                Changes                             Reason for change
             Zhou Jingyao                        Independent director                            Left                    At the expiration of tenure
            Wang Minquan                         Independent director                            Left                    At the expiration of tenure
            Zhao Xiangqiu                        Independent director                           Elected                  By-election after the expiration of
                                                                                                                         tenure of other independent directors
            Wang Yongbin                         Independent director                            Elected                 Re-election


V. Notes to punishments imposed by securities regulatory instutitons over the past three years
□Applicable √Non-applicable




                                                                            65 / 225
 Ningbo Tuopu Group Co., Ltd.                                                           Annual Report 2020



VI. Staff Members of the Parent Company and Major Subsidiaries
 (1) Staff members
Number of staff members serving the parent                                                            4,463
company
Number of staff members serving major                                                                 4,655
subsidiaries
Total number of staff members in service                                                              9,118
Number of retiring employees to whom the parent
company and other subsidiaries have to bear costs
and expenses
                                      Composition of job positions
             Category of job positions                             Number of specialsits
                 Production staff                                                                     4,879
                 Marekting staff                                                                        398
                 Technical staff                                                                      2,329
                  Financial staff                                                                       150
               Administrative staff                                                                   1,362
                                                                                                      9,118
                       Total
                                        Education Background
             Category of education                           Number of members (persons)
       Holders of doctoral, master degrees                                                              118
           Holders of bachelor degrees                                                                1,088
Graduated from junior college, technical                                                              3,267
secondary school
                     Others                                                                           4,645
                      Total                                                                           9,118

  (2) Salary policy
√Applicable □Non-applicable
      In line with the strategic development needs of the Company and considering the general salary of
the industry and local salary level, the Company has prepared a package of incentive salary rules that are
more favorable to strategic talents. The Company has been adhering to the concept of sustainable
development. Along with the development process, the Company provides more favorable benefits and
salary to staff members, allowing them to share the gains from the development. According to the
situation of development, availability of talents, and the general salary of the industry, the salary policy
applicable to staff members may be properly adjusted from time to time, in order to meet the needs of
sustainable development.

  (3) Training plan
√Applicable □Non-applicable
      Given the characteristics of the automobile industry and the company-specific development plan,
the Company has developed a well-organized and efficient training system, in order to prepare necessary
talents for R&D, processes, tests, quality, production, purchasing activities, transportation, marketing
sales, finance, IT and human resources. The Company provides staff members with an access to all sorts
of professional learning, take part in industry technical exchanges and management forums. In turn, staff
members at all levels can attend well-organized training sessions, acquire good job-related skills,
improve business and management capabilities, and provide ample talent reserves for the long-term
sustainable development.

  (4) Outsourcing of labor services
□Applicable √Non-applicable


                                                  66 / 225
 Ningbo Tuopu Group Co., Ltd.                                                          Annual Report 2020


VII. Others
□Applicable √Non-applicable

                                Section IX Corporate Governance
I. Notes to Corporate Governance
√Applicable □Non-applicable
      During the reporting period, the Company acted in strict compliance with the "Company Law",
"Securities Law", relevant regulations of CSRC and SSE, and the provisions under the "Articles of
Association", in order to improve the corporate governance structure, improve internal control system,
and operate the internal control system. General meeting, Board of Directors, Board of Supervisors,
independent directors and the management operated precisely by following the internal control
procedure, in order to secure the legitimate rights and interests of the Company and its shareholders.
      General meeting: During the reporting period, the Company convened 2 general meetings in the
form of online voting and on-site voting. The calling, summoning and voting procedure in respect of
general meetings are compliant and valid, to the extent that all shareholders, especially small and
medium shareholders, were able to exercise their rights, and the legitimate rights and interests of all
shareholders were secured. During the reporting period, the events granted in the scope of powers and
functions were considered at the general meetings in accordance with relevant regulations and rules of
proceedings, and the legitimate rights and interests of all shareholders were secured. During the
reporting period, significant events including regular reports, profit distribution, reappointment of audit
institution, related-party transactions, use of raised funds, kick-off of non-public offerings of 2020, and
re-election of Board of Directors were considered at the general meetings and valid resolutions as to
these events were passed.
      Board of Directors: During the reporting period, the Company convened 7 board meetings in which
all directors were present. During the reporting period, the Board of Directors considered the events such
as regular reports, day-to-day operations, external investments, related-party transactions, kick-off of
non-public offering of 2020, re-election of Board of Directors, and use of funds raised from non-public
offerings and passed valid resolutions as to these events in accordance with applicable regulations and
rules of proceedings. The Board of Directors also fulfilled its due role in submitting the events to be
considered at general meeting to the general meeting promptly.
      Board of Supervisors: During the reporting period, the Company convened 5 meetings of the Board
of Supervisors in which all supervisors were present. In addition, all supervisors attended all board
meetings convened during the reporting period. During the reporting period, the Board of Supervisors
conducted effective supervision on certain significant events such as regular reports, significant
decisions on production and operation, use of raised funds, kick-off of non-public offerings in 2020, and
related-party transactions in accordance with applicable regulations and rules of proceedings. The Board
of Supervisors substantially fulfilled it role in supervising these events.
      Independent directors: Since the independent directors of the third and fourth sessions of Board of
Directors took office, subject to applicable provisions and “Work Procedure of Independent Directors”,
they actively took part in the decision-making process, leveraged their expertise in finance, law and
technology, held the interests of all shareholders harmless, and drove for the reinforcement of corporate
governance structure. During the reporting period, independent directors gave pre-approval opinions or
independent opinions on certain significant events, such as regular reports, internal control evaluation,
use of raised funds, related-party transactions, profit distribution, re-appointment of audit institution,
kick-off of non-public offerings in 2020, and made no contest to any decision made at all board
meetings.
      Special Committee: During the reporting period, all special committees under the Board of
Directors considered certain events such as the financial standing of the Company, whose establishment
and operation effectively improved the operational efficiency of the Board of Directors, the
reasonableness of decisions and the effectiveness of supervision, and drove for the reinforcement of
corporate governance structure.

Whether there are significant differences between corporate governance and the the relevant regulations
of CSRC; if so, state the reason


                                                 67 / 225
 Ningbo Tuopu Group Co., Ltd.                                                               Annual Report 2020


□Applicable √Non-applicable
II. Brief Information about General Meetings
                                                                The search index
                                                                                         Date of disclosure to
                                                                 of the specified
             Session                  Date of convention                                    publication of
                                                                website to publish
                                                                                             resolutions
                                                                   resolutions
2019 general meeting                 June 8, 2020               www.sse.com.cn             June 9, 2020
2020 first extraordinary general       October 19, 2020         www.sse.com.cn            October 20, 2020
meeting

Notes to general meetings
□Applicable √Non-applicable
III. Performance of Duties by Directors
  (1) Information about the presences of directors in board meeting and general meeting
                                                                                                       Presenc
                                                                                                        es in
                                                Presences in board meeting
                                                                                                       general
                                                                                                       meeting
           Whether      Number
                                                                                          Whether
 Name          as           of
                                                                                           failed to
   of      independ     mandator     Number        Number of      Number
                                                                              Numb          present
director       ent          y            of       attendances         of                               Numbe
                                                                               er of        in two
            director    attendan     attendan          by         attendan                               r of
                                                                              absenc      consecuti
                          ces in      ces in      communicat       ces by                              presenc
                                                                                es            ve
                          board       person       ion means       proxy                                  es
                                                                                          meetings
                        meeting
                                                                                          in person
                        this year
   Wu          No                7          7              0           0             0        No             2
Jianshu
  Wang         No                7          7              0           0             0        No             2
   Bin
   Pan         No                7          7              0           0             0        No             2
Xiaoyo
    ng
   Wu          No                7          7              0           0             0        No             2
Weifen
    g
  Jiang        No                7          7              0           0             0        No             2
Kaihon
    g
  Zhou        Yes                7          7              0           0             0        No             2
  Ying
  Zhao        Yes                5          5              0           0             0        No             1
Xiangqi
    u
  Wang        Yes                2          2              0           0             0        No             0
Yongbi
    n
  Zhou        Yes                2          2              0           0             0        No             1
Jingyao
Wang          Yes                5          5              0           0             0        No             2
Minqua
n
Notes to failure to be present in two consecutive meetings board meetings
□Applicable √Non-applicable
                                                   68 / 225
 Ningbo Tuopu Group Co., Ltd.                                                      Annual Report 2020


Number of board meetings convened in the year                              7
Including: number of on-site meetings                                      7
Number of meetings convened by communication                               0
means
Number of meetings convened on site by                                     0
communication means

  (2) Contests concerning relevant events made by independent directors to the Company
□Applicable √Non-applicable

  (3) Others
□Applicable √Non-applicable
IV. Significant opinions and suggestions put forward by special committees under the Board of
Directors when performing their duties during the reporting period, if there is any contest,
disclose the specific circumstances
□Applicable √Non-applicable
V. Notes to Risks Identified by the Board of Supervisors
□Applicable √Non-applicable
VI. Notes to failure of the Company to guarantee independence and maintain independent
operation capabilities in respect of business, human resources, assets, institutions, finance between
the Company and its controlling shareholder
□Applicable √Non-applicable
Where is a competition, the solutions, progress and subsequent work plan adopted by the Company
□Applicable √Non-applicable

VII. During the reporting period, the evaluation mechanism for officers, as well as the condition of
establishment and implementation of the incentive mechanism
√Applicable □Non-applicable
     The Board of Directors has considered actual performance and specific positions, and laid down
appropriate assessment criteria, in order to get operators motivated and enhance the progressive mind
and sense of responsibility of officers in listed company.

VIII. Whether the evaluation report of internal control has been disclosed
√Applicable □Non-applicable
    The Company publishes the “2020 Tuopu Group’s Evaluation Report of Internal Control” on the
SSE website while disclosing the annual report for the year 2020 ended.
Notes to significant deficiencies in internal control during the reporting period
□Applicable √Non-applicable

IX. Notes to the Internal Control Audit Report
√Applicable □Non-applicable
     The Company publishes the “2020 Tuopu Group’s Evaluation Report of Internal Control” on the
SSE website, as issued by BDO China Shu Lun Pan Certified Public Accountants LLP (Special General
Partnership), while disclosing the annual report for the year 2020 ended.
Whether the internal control audit report has been disclosed: Yes
Type of internal control audit report: Standard and unqualified audit report

X. Others
□Applicable √Non-applicable




                                               69 / 225
 Ningbo Tuopu Group Co., Ltd.                                       Annual Report 2020



                         Section X Information of Corporate Bonds
□Applicable √Non-applicable




                                        70 / 225
 Ningbo Tuopu Group Co., Ltd.                                                             Annual Report 2020



                                   Section XI Financial Report
1. Audit report
√Applicable □Non-applicable
Audit Report

      Xin Kuai Shi Bao Zi [2021] No. ZF10400
To the shareholders of Ningbo Tuopu Group Co., Ltd.
       I. Opinion
We have audited the financial statements of Ningbo Tuopu Group Co., Ltd. (hereinafter referred to as
“Tuopu Group”), including the parent company's and the consolidated balance sheet dated December 31,
2020, the parent company's and the consolidated income statement, the parent company's and the
consolidated cash flow statement and the parent company's and the consolidated statement of changes in
owners' equity for the year 2020 ended, as well as the notes to relevant financial statements.
In our opinion, the attached financial statements are prepared, in all material respects, in accordance with
“Accounting Standards for Business Enterprises” , which fairly reflected the consolidated and the parent
company’s financial position of Ningbo Tuopu Group Co., Ltd. as at December 31, 2020 and the
consolidated and the parent company’s operating results and cash flows for the year 2020 ended.
       II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in
China. Our responsibilities under those standards are further described in the CPA's Responsibilities for
the Audit of the Financial Statements section of our report. According to the “Code of Ethics for Chinese
Certified Public Accountants”, we are independent of Tuopu and have fulfilled our other ethical
responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
       III.     Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
   The key audit matters identified during the audit are summarized as follows:
                Key Audit Matters                         How the matter was addressed in the audit
(1) Recognition of revenue
More details about the accounting policies for       Our main audit procedures for the above key audit
revenue recognition and the analysis of              matters related to recognition of revenue are as
revenue are available in the accounting              described below:
policies as referred to in Note 38 of “V.           1. Understand the internal control system in relation to
Significant      Accounting        Policies    and   revenue recognition and the design and implementation
Accounting Estimates" and Note 61 of “VII.          of the financial accounting system, and test the
Notes to Items of the Consolidated Financial         effectiveness of its operation;
Statements”.                                        2. We understand and evaluate whether the revenue
In 2020, Tuopu Group’s income from main             recognition policy of the Company is appropriate or not
business operations is RMB 6,293,917,500.            by reviewing sales contracts and interviews with
Because       revenue   is   one    of   the   key   management;
performance indexes of Tuopu Group, there is         3. Perform an analytical review of revenue and gross
an inherent risk of management manipulating          profit based on product types and customer types, and
                                                     71 / 225
 Ningbo Tuopu Group Co., Ltd.                                                              Annual Report 2020



the time point of revenue recognition in order     determine whether there are abnormal fluctuations in
to achieve specific goals or expectations. In      the amount of revenue during the current period;
this regard, we regard Tuopu Group's revenue       4. Classify sales regions, select samples from the
recognition as a key audit matter.                 income transactions as recorded in respect of this year,
                                                   check invoices, sales contracts, delivery orders,
                                                   customs declaration forms, B/Ls and other supporting
                                                   documents, and evaluate whether the relevant revenue
                                                   recognition complies with the revenue recognition
                                                   accounting policies of the Company;
                                                   5. Conduct cut-off test on the operating income
                                                   recognized before and after the balance sheet date in
                                                   order to evaluate whether the operating income is
                                                   recognized in the appropriate period;
                                                   6. Make external confirmation of the account
                                                   receivable balance and sales of major customers, and
                                                   confirm whether the account receivable balance at the
                                                   end of the period and the current income amount are
                                                   true and accurate;
                                                   7. Check whether the information related to operating
                                                   income has been properly presented in the financial
                                                   statements.
 (2) Impairment of goodwill
The details and analysis of the accounting         Our main audit procedures in respect of the above key
policies for impairment of goodwill are            audit matters related to the impairment of goodwill are
available in the accounting policies as referred   as follows:
to in Note 30 of “V. Significant Accounting       1. We evaluate and test the effectiveness of the design
Policies and Accounting Estimates" and Note        and implementation of internal controls related to the
28 of “VII. Notes to Items of the Consolidated    goodwill impairment test, including the adoption of key
Financial Statements”.                            assumptions and the review and approval of the amount
As of December 31, 2020, the original book         of impairment provision;
value of Tuopu Group's goodwill is RMB             2.   Referring    to   industry    practices,        assess   the
286,784,900, and the amount of provision for       appropriateness of the valuation method used by the
impairment is RMB 33,474,800.                      management for cash flow forecasts;
The management conducts an impairment test         3. Comparing key input values such as revenue growth
on the goodwill formed by the business             rate, perpetual growth rate and cost increase with past
combination at the end of each year. The           performance, perform prudent evaluation on the key
result of the impairment test of goodwill is       assumptions      and   judgments     used       in     preparing
                                                   72 / 225
 Ningbo Tuopu Group Co., Ltd.                                                             Annual Report 2020



fixed by the estimation report of relevant asset   discounted cash flow forecasts;
group recoverable value as prepared by the         4. Discuss with the management and others about the
management. The recoverable amount of the          reasonableness of the methods used in the process of
relevant asset group is calculated and fixed by    goodwill impairment test, the assumptions of key
the present value of the estimated future cash     assessments, the selection of parameters, the forecast of
flow. The discounted cash flow forecasts are       future income and the discount rate of cash flow;
prepared by using major judgments and              5. Conduct a retrospective review by comparing the
estimates, especially determining the growth       forecast of the previous year with the performance of
rate during the forecast period, perpetual         this year to assess the reliability and historical accuracy
growth rate, gross profit margin, discount         of the management's forecasting process;
rate.                                              6. Evaluate the competence, professionalism and
Since the process of goodwill impairment test      objectivity of the specialists appointed by the
is very complex, which relates to significant      management, and reach a consensus on the content of
management estimates and judgments, we             their works;
regard the impairment of goodwill as a key         7. Check whether the information related to the
audit matter.                                      impairment of goodwill has been properly presented
                                                   and disclosed in the financial statements.

       IV.      Other Information
    The management of Tuopu Group(hereinafter referred to as the Management) is responsible for the
other information. The other information includes the information covered in Tuopu’s annual report for
the year 2020 ended, other than the financial statements and our audit report.
    Our opinion on the financial statements does not cover the other information and we do not and will
not express any form of assurance conclusion thereon.
    In combination with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated.
       If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this regard.
        V. Responsibilities of Management and Those Charged with Governance for the Financial
                Statements
The Management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for
designing, implementing and maintaining necessary internal control to ensure that the financial
statements are free from material misstatements, whether due to frauds or errors.
   In preparing the financial statements, the Management is responsible for assessing Tuopu’s ability to
continue operating, disclosing matters related to continuous operation (if applicable) and using the
hypothesis of continuous operation unless there is a plan to liquidate, terminate operations or no other
realistic options.
The management is responsible for supervising the financial reporting process of Tuopu.
       VI.    CPA's Responsibilities for the Audit of the Financial Statements
     Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an audit report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the audit standards will always detect a material misstatement when
                                                   73 / 225
 Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020


it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users made on the
basis of these financial statements.
      As part of an audit in accordance with the audit standards, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:

         (1) Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
           (2) Obtain an understanding of internal control relevant to the audit in order to design
appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control.
          (3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Management.
           (4) Conclude on the appropriateness of using the going concern assumption by the
Management. At the same time, draw a conclusion, based on the audit evidence obtained, on whether
there is significant uncertainty in matters or situations that may cause major doubts about Tuopu's ability
in continuous operation. If we conclude that a material uncertainty exists, we are required to draw
attention in our audit report to the related disclosures in the financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the information available up to the
date of our audit report. However, future events or conditions may result in Tuopu 's inability to continue
operating.
           (5) Evaluate the overall presentation (including the disclosures), structure and content of the
financial statements, and whether the financial statements fairly reflect the relevant transactions and
events.
           (6) Obtain sufficient and appropriate audit evidence regarding the financial information of the
entities or business activities within Tuopu to express an opinion on the financial statements. We are
responsible for guiding, supervising and implementing the group audit, and remain solely responsible for
our audit opinion.
        We have communicated with those charged with governance on such matters as the scope of audit
as planned, the schedule and material audit findings, including the defects in the internal control that are
worth paying attention to found in this audit.
        We have also provided those charged with governance with a statement on observing the
professional ethics related to independence, and communicated with those charged with governance on
all the relationships and other matters that might be reasonably deemed to affect our independence, and
relevant preventative measures (if applicable).
       From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our audit report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that
a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.


  BDO China Shu Lun Pan Certified Public Accountants LLP Chinese CPA: Zhu Wei
  (Special General Partnership)                                      (Project partner)



                                 Chinese CPA: Tang Wei



                   Shanghai, China            Date: 29 April 2021

                                                  74 / 225
 Ningbo Tuopu Group Co., Ltd.                                                   Annual Report 2020



II. Financial Statements
                                 Consolidated Balance Sheet
                                    As of 31 December 2020
Prepared by: Ningbo Tuopu Group Co., Ltd.
                                                                         Unit:Yuan Currency:RMB
                  Item                              2December 31, 2020       December 31, 2019
                                        Note
Current assets:
                                                           787,123,646.45          822,457,801.96
  Cash and Bank Balances
                                       7.1
  Deposit Reservation for Balance
  Loans to Banks and Other Financial
Institutions
  Trading Financial Assets             7.2                     176,111.00          780,000,000.00
  Derivative Financial Assets
  Notes receivable                     7.4                  296,283,951.73         440,734,534.85
  Accounts receivable                  7.5                1,783,267,007.65       1,357,020,447.94
  Receivables Financing                7.6                  742,203,122.21         587,351,790.19
  Prepayments                          7.7                   42,883,818.40          35,367,527.97
  Premium Receivable
  Reinsurance Accounts Receivable
  Reinsurance Contract Reserves
Receivable
  Other Receivables                    7.8                  31,087,166.38           13,981,969.00
  Including: interest receivable
           Dividends Receivable
  Buying Back the Sale of Financial
Assets
  Inventory                            7.9                1,502,751,836.88       1,239,786,152.44
  Contract Assets
  Holding for-sale assets
  Non-current Assets Due within 1
Year
  Other Current Assets                 7.13                 173,824,691.82         156,215,913.11
      Subtotal of Current Assets                          5,359,601,352.52       5,432,916,137.46
Non-current Assets:
  Granting of loans and advances
  Investment in Creditor's Rights
  Investment in Other Creditor's
Rights
  Long-term Receivables
  Long-term Equity Investment          7.17                150,295,983.58          125,215,950.32
  Investment in Other Equity
Instruments
  Other Non-current Financial Assets
  Investment Property                  7.20                  31,603,418.12          30,960,256.31
  Fixed Assets                         7.21               4,248,257,966.73       3,941,027,638.25
  Projects under Construction          7.22                 943,993,396.96         611,737,763.71
  Productive Biological Assets
  Oil and gas assets
  Right-of-use Assets
  Intangible Assets                    7.26                678,561,105.86          605,767,648.14
  Development Expenditure
  Goodwill                             7.28                253,310,074.24          253,310,074.24
                                               75 / 225
 Ningbo Tuopu Group Co., Ltd.                                                  Annual Report 2020


  Long-term unamortized expenses         7.29                  57,679,259.94       58,311,175.02
  Deferred Income Tax Assets             7.30                  94,968,559.88       77,212,058.81
  Other Non-current Assets               7.31                 296,957,402.06       97,855,571.08
     Total Non-current Assets                               6,755,627,167.37    5,801,398,135.88
        Total Assets                                       12,115,228,519.89   11,234,314,273.34
Current Liabilities:
  Short-term loan                        7.32                400,378,888.89       500,318,635.16
  Borrowings from the Central Bank
  Borrowings from Banks and Other
Financial Institutions
  Transactional financial liabilities
  Derivative Financial Liabilities
  Notes Payable                          7.35               1,471,327,551.91    1,184,846,663.26
  Accounts Payable                       7.36               1,898,255,116.17    1,458,517,214.69
  Received Prepayments                   7.37                                      24,717,751.02
  Contract liabilities                   7.38                 22,685,660.41
  Financial Assets Sold for
Repurchase
  Deposit Taking and Interbank
Deposit
  Receiving from Vicariously Traded
Securities
  Receiving from Vicariously Sold
Securities
  Payroll payable                        7.39                138,292,361.67       118,780,048.70
  Tax Payable                            7.40                 82,865,303.29        68,557,861.25
  Other Payables                         7.41                 15,722,105.17         8,181,531.69
  Including: interest payable
           Dividends Payable
  Service Charge and Commission
Payable
  Reinsurance Accounts Payable
  Holding for-sale liabilities
  Non-current Liabilities Due within 1   7.43                                      62,837,810.76
Year
  Other Current Liabilities              7.44                   1,507,896.52
     Subtotal of Current Liabilities                        4,031,034,884.03    3,426,757,516.53
Non-current Liabilities:

Insurance Contract Reserves
  Long-term loan                         7.45                                     182,500,000.00
  Bonds Payable
  Including: Preferred Stocks
          Perpetual Bonds
  Lease Liabilities
  Long-term Payables
  Long-term payroll payable
  Expected Liabilities
  Deferred Income                        7.51                214,204,302.56       172,340,145.15
  Deferred Income Tax Liabilities        7.30                 51,907,987.42        48,067,326.66
  Other Non-current Liabilities
     Total Non-current Liabilities                            266,112,289.98      402,907,471.81
       Total Liabilities                                    4,297,147,174.01    3,829,664,988.34
Owners’ Equity (or Shareholders'
                                                76 / 225
 Ningbo Tuopu Group Co., Ltd.                                                    Annual Report 2020


Equity):
  Paid-in capital (or share Capital)   7.53                1,054,987,749.00       1,054,987,749.00
  Other Equity Instruments
  Including: Preferred Stocks
         Perpetual Bonds
                                                           3,409,439,863.07       3,409,439,863.07
  Capital Reserves
                                       7.55
  Less: Treasury Share
  Other Comprehensive Incomes          7.57                  -20,631,668.74          -4,380,983.53
  Special Reserves
  Surplus Reserves                     7.59                 474,769,630.86          412,680,608.91
  General Risk Reserves
  Undistributed Profits                7.60                2,868,429,319.48       2,502,765,125.43
  Total Shareholders' Equity
                                                           7,786,994,893.67       7,375,492,362.88
Attributable to the Parent Company
  Minority Shareholders' Equity                               31,086,452.21          29,156,922.12
     Total Shareholders' Equity                            7,818,081,345.88       7,404,649,285.00
       Total Liabilities and
                                                          12,115,228,519.89      11,234,314,273.34
Shareholders' Equity

Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution
Officer: Hong Tieyang


                             Balance Sheet of the Parent Company
                                    As of 31 December 2020
Prepared by: Ningbo Tuopu Group Co., Ltd.
                                                                         Unit: Yuan Currency:RMB
                 Item                   Note         December 31, 2020          December 31, 2019
Current Assets:
  Cash and Bank Balances                                    191,701,837.06          381,471,584.55
  Trading Financial Assets                                                          780,000,000.00
  Derivative Financial Assets
  Notes receivable
  Accounts receivable                  17.1                1,840,937,312.96       1,251,021,599.94
  Receivables Financing
  Prepayments                                                20,784,751.77           15,387,320.53
  Other Receivables                    17.2                  76,146,034.58           49,355,223.60
  Including: interest receivable
         Dividends Receivable
  Inventory                                                 658,887,785.40          569,539,150.24
  Contract Assets
  Holding for-sale assets
  Non-current Assets Due within 1
Year
  Other Current Assets
     Subtotal of Current Assets                            2,788,457,721.77       3,046,774,878.86
Non-current Assets:
  Investment in Creditor's Rights
  Investment in Other Creditor's
Rights
  Long-term Receivables
  Long-term Equity Investment          17.3                4,071,774,944.06       3,437,103,706.24
  Investment in Other Equity
                                               77 / 225
 Ningbo Tuopu Group Co., Ltd.                                          Annual Report 2020


Instruments
  Other Non-current Financial Assets
  Investment Property                                  31,603,418.12       30,960,256.31
  Fixed Assets                                      2,125,534,955.22    2,163,880,764.04
  Projects under Construction                         324,037,109.77      255,670,050.01
  Productive Biological Assets
  Oil and gas assets
  Right-of-use Assets
  Intangible Assets                                  261,540,370.50       263,906,427.20
  Development Expenditure
  Goodwill
  Long-term unamortized expenses                       18,012,648.52       24,317,606.15
  Deferred Income Tax Assets                           33,565,021.69       25,299,141.67
  Other Non-current Assets                             53,576,040.76       28,726,157.69
     Total Non-current Assets                       6,919,644,508.64    6,229,864,109.31
        Total Assets                                9,708,102,230.41    9,276,638,988.17
Current Liabilities:
  Short-term loan                                    400,378,888.89       500,318,635.16
  Transactional financial liabilities
  Derivative Financial Liabilities
  Notes Payable                                       165,480,933.26
  Accounts Payable                                  1,070,753,965.63      886,276,735.51
  Received Prepayments                                                     10,850,973.20
  Contract liabilities                                 1,448,964.90
  Payroll payable                                     73,653,497.54        63,291,315.71
  Tax Payable                                         54,138,713.22        43,013,189.57
  Other Payables                                       5,126,892.30        31,414,682.50
  Including: interest payable
           Dividends Payable
  Holding for-sale liabilities
  Non-current Liabilities Due within 1                                     62,837,810.76
Year
  Other Current Liabilities                               188,365.44
     Subtotal of Current Liabilities                1,771,170,221.18    1,598,003,342.41
Non-current Liabilities:
  Long-term loan                                                          182,500,000.00
  Bonds Payable
  Including: Preferred Stocks
           Perpetual Bonds
  Lease Liabilities
  Long-term Payables
  Long-term payroll payable
  Expected Liabilities
  Deferred Income                                     70,962,922.25        53,152,160.61
  Deferred Income Tax Liabilities                     28,630,095.25        26,087,040.58
  Other Non-current Liabilities
     Subtotal of Non-current                          99,593,017.50       261,739,201.19
Liabilities
        Total Liabilities                           1,870,763,238.68    1,859,742,543.60
Owners’ Equity (or Shareholders'
Equity):
  Paid-in Capital (or Share Capital)                1,054,987,749.00    1,054,987,749.00
  Other Equity Instruments
  Including: Preferred Stocks
                                         78 / 225
 Ningbo Tuopu Group Co., Ltd.                                                     Annual Report 2020


          Perpetual Bonds
  Capital Reserves                                        3,409,439,863.07            3,409,439,863.07
  Less: Treasury Share
  Other Comprehensive Incomes
  Special Reserves
  Surplus Reserves                                          474,769,630.86              412,680,608.91
  Undistributed Profits                                   2,898,141,748.80            2,539,788,223.59
    Total Owners’ Equity (or                             7,837,338,991.73            7,416,896,444.57
Shareholders' Equity)
       Total Liabilities and Owners’
                                                          9,708,102,230.41            9,276,638,988.17
Equity (or Shareholders' Equity)

Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution
Officer: Hong Tieyang

                                   Consolidated Income Statement
                          For the Period from January 2020 to December 2020
                                                                         Unit: Yuan    Currency: RMB
                     Item                         Note            2020                    2019
I. Total Operating Revenue                                    6,511,094,914.05        5,358,953,813.60
Including: Operating Revenue                    7.61          6,511,094,914.05        5,358,953,813.60
        Interest Income
        Earned Premiums
        Service Charge and Commission
Income
II. Total Operating Cost                                      5,848,025,496.26        4,834,412,471.77
Including: Operating Cost                      7.61          5,034,014,528.39         3,949,993,344.06
        Interest Expenditures
        Service Charge and Commission
Expenses
        Surrender Value
        Net Claims Paid
        Net Amount of Withdrawn Reserve
for Insurance Liability Contract
        Policyholder Dividend Expense
        Reinsurance Cost
        Taxes and Surcharges                   7.62            58,072,530.91            50,291,733.24
        Sales Expenses                         7.63           123,896,252.24           287,078,723.04
        Administration expenses                7.64           233,071,874.47           229,643,454.40
        Research and development expense       7.65           354,851,747.66           314,307,191.22
        Financial Expenses                     7.66            44,118,562.59             3,098,025.81
        Including: interest expenses                           19,744,058.04            28,508,893.08
                Interest Income                                17,108,552.05            24,504,258.91
   Add: Other income                           7.67            33,135,066.17            26,527,210.85
        Investment Income (Mark"-" for         7.68            43,244,216.77            51,436,523.06
Loss)
        Including: Investment Income from                       25,080,033.26           24,507,700.52
Affiliates and Joint Ventures
               Profits from derecognition of
Financial Assets at Amortized Cost
        Exchange Gains (Mark"-" for Losses)
        Profit of Net Exposure Hedging
(Mark"-" for Loss)
        Incomes from changes in fair value
                                               79 / 225
 Ningbo Tuopu Group Co., Ltd.                                                   Annual Report 2020


(losses marked with "-")
        Credit Impairment Losses (Mark"-"           7.71       -19,654,766.99      -15,023,695.09
for Loss)
                                                    7.72       -22,439,872.62      -50,422,877.45
         Asset Impairment Losses (Mark"-"
for Loss)
         Asset Disposal Income (Mark"-" for         7.73         8,747,482.63        -5,522,498.81
Loss)
III. Operating Profit (Mark"-" for Loss)                       706,101,543.75      531,536,004.39
   Add: Non-operating Revenues                      7.74         5,654,672.25        1,290,893.65
   Less: Non-operating Expenses                     7.75         1,670,025.65        4,074,491.48
IV. Total Profit (Mark"-" for Total Loss)                      710,086,190.35      528,752,406.56
   Less: Income Tax Expense                         7.76        79,951,976.75       68,705,774.54
V. Net Profit (Mark"-" for Net Loss)                           630,134,213.60      460,046,632.02
  (1) Classified by operation continuity
      1. Net Profit as a Going Concern
                                                               630,134,213.60      460,046,632.02
(Mark"-" for Net Loss)
      2. Net Profit of Discontinued Operation
(Mark"-" for Net Loss)
  (2). Classified by the attribution of ownership
      1. Net Profit Attributable to
                                                               628,200,888.31      456,205,818.45
Shareholders of Parent Company
      2. Minority Shareholders' Profit and
                                                                 1,933,325.29         3,840,813.57
Loss
VI. Net Amount of Other Comprehensive                          -16,254,480.41        -1,678,822.61
Incomes after Tax
     (1) Net Amount of Other Comprehensive                     -16,250,685.21        -1,787,225.14
Incomes after Tax Attributable to the Parent
Company's Owner
      1, Other comprehensive income that
cannot be reclassified as P/L
      (1) Re-measure the variation of the
defined benefit plan
      (2) Other comprehensive income that
cannot be transferred to P/L under the equity
method
      (3) Changes in the fair value of
investment in other equity instruments
      (4) Changes in the fair value of the
credit risk of the enterprise
      2. Other comprehensive income that will                  -16,250,685.21        -1,787,225.14
be reclassified as P/L
   (1) Other comprehensive income that can
be transferred to P/L under the equity method
   (2) Changes in the fair value of investment
in other creditor's rights
   (3) Financial assets reclassified into other
comprehensive income
   (4) Provisions for the credit impairment of
investment in other creditor's rights
   (5) Cash flow hedge reserves
   (6) Currency translation difference                         -16,250,685.21        -1,787,225.14
   (7) Others
   (2) Net Amount of Other Comprehensive
Incomes After Tax Attributable to Minority                          -3,795.20           108,402.53
Shareholders
                                                    80 / 225
 Ningbo Tuopu Group Co., Ltd.                                                         Annual Report 2020


VII. Total Comprehensive Income                                  613,879,733.19          458,367,809.41
     (1) Total Comprehensive Income                              611,950,203.10          454,418,593.31
Attributable to the Parent Company's Owner
  (2) Total Comprehensive Income                                   1,929,530.09            3,949,216.10
Attributable to Minority Shareholders
VIII. Earnings per Share:
  (1) Basic Earnings per Share                                              0.60                    0.43
  (2) Diluted Earnings per Share                                            0.60                    0.43

If there is a business combination under the same control in the current period, the net profit earned by
the combined party before the combination is: RMB 0, and the net profit earned by the combined party
in the previous period is: RMB 0.
Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution
Officer: Hong Tieyang

                                   Income Statement of the Parent Company
                              For the Period from January 2020 to December 2020
                                                                              Unit:Yuan Currency:RMB
                       Item                          Note             2020                 2019
I. Operating Revenue                                XVII.4        3,812,588,627.87     3,471,451,830.55
    Less: Operating Cost                            XVII.4        2,834,521,118.72     2,521,299,294.61
         Taxes and Surcharges                                        34,558,652.15        27,102,285.18
         Sales Expenses                                               3,458,522.18        47,128,965.03
         Administration expenses                                    116,526,814.41       107,566,520.28
         Research and development expense                           291,842,003.68       251,484,563.46
         Financial Expenses                                          14,801,082.01        13,143,010.17
         Including: interest expenses                                19,206,506.13        28,474,119.42
                  Interest Income                                     4,849,517.72        15,930,424.41
    Add: Other income                                                14,345,810.36         9,863,172.06
         Investment Income (Mark"-" for             XVII.5          180,416,534.81        49,915,639.66
Loss)
         Including: Investment Income from
                                                                     25,080,033.26        24,507,700.52
Affiliates and Joint Ventures
                Profits from Derecognition of
Financial Assets at Amortized Cost
         Profit of Net Exposure Hedging (loss
in "-")
         Incomes from changes in fair value
(loss in "-")
         Credit Impairment Losses (loss in "-")                     -38,718,677.92       -13,484,285.65
         Asset Impairment Losses (loss in "-")                       -5,058,272.24       -14,824,404.44
         Asset Disposal Income (loss in "-")                           -601,831.86        -5,558,792.96
II. Operating Profit (loss in "-")                                  667,263,997.87       529,638,520.49
    Add: Non-operating Revenues                                       1,864,571.67            57,956.38
    Less: Non-operating Expenses                                        448,631.07         2,942,718.95
III. Total Profit (total loss in “-“)                             668,679,938.47       526,753,757.92
      Less: Income Tax Expense                                       47,789,719.00        61,114,737.93
IV. Net Profit (Mark for Net Loss)                                  620,890,219.47       465,639,019.99
     (I) Net Profit as a Going Concern (net
                                                                    620,890,219.47       465,639,019.99
loss in “-“)
     (II) Net Profit of Discontinued Operation
(net loss in “-“)
V. Net Amount of Other Comprehensive
Incomes After Tax
     (1) Other comprehensive income that
                                                81 / 225
 Ningbo Tuopu Group Co., Ltd.                                                   Annual Report 2020


cannot be reclassified as P/L
      1. Re-measure the variation of the
defined benefit plan
      2. Other comprehensive income that
cannot be transferred to P/L under the equity
method
      3. Changes in the fair value of
investment in other equity instruments
      4. Changes in the fair value of the credit
risk of the enterprise
    (2) Other comprehensive income that will
be reclassified as P/L
      1. Other comprehensive income that can
be transferred to P/L under the equity method
      2. Changes in the fair value of
investment in other creditor's rights
      3. Financial assets reclassified into other
comprehensive income
      4. Provisions for the credit impairment
of investment in other creditor's rights
      5. Cash flow hedge reserves
      6. Currency translation difference
      7. Others
VI. Total Comprehensive Income                                 620,890,219.47      465,639,019.99
VII. Earnings per Share:
       (I) Basic Earnings per Share                                      0.59                 0.44
       (II) Diluted Earnings per Share                                   0.59                 0.44

Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution
Officer: Hong Tieyang


                                  Consolidated Cash Flow Statement
                          For the Period from January 2020 to December 2020
                                                                      Unit:Yuan Currency:RMB
                     Item                      Note            2020                 2019
I. Cash Flow Generated by Operational
Activities:
   Cash from Sales of Merchandise and                       6,530,642,868.71     5,881,514,603.58
Provision of Services
   Net Increase in Customer's Bank
Deposits and Interbank Deposits
   Net Increase in Borrowings from the
Central Bank
   Net Increase in Borrowings from Other
Financial Institutions
   Cash Arising from Receiving Premiums
for the Original Insurance Contract
   Net Amount Arising from Reinsurance
Business
   Net Increase in Deposits and Investments
from Policyholders
   Cash Arising from Interests, Service
Charges and Commissions
   Net Increase in Borrowings from Banks
and Other Financial Institutions
                                                    82 / 225
 Ningbo Tuopu Group Co., Ltd.                                                 Annual Report 2020


   Net Increase in Repurchase Business
Funds
   Net Amount of Cash Received from the
Vicariously Traded Securities
   Tax Refund                                               181,015,889.86       190,669,266.10
   Other Received Cashes Related to            VII.7        120,356,568.18        94,979,182.94
Operational Activities                         8
     Subtotal of cash inflow from                          6,832,015,326.75    6,167,163,052.62
operational activities
   Cash Paid for Merchandise and Services                  4,171,704,603.08    3,457,045,690.09
   Net Increase in Loans and Advances to
Customers
   Net Increase in Deposits with Central
Bank and Other Financial Institutions
   Cash Paid for Original Insurance Contract
Claims
   Net increase of funds lent
   Cash Paid for Interests, Service Charges
and Commissions
   Cash Paid for Policy Dividends
   Cash Paid to and for Employees                           863,443,268.09       739,569,655.01
   Cash Paid for Taxes and Surcharges                       339,305,713.24       270,854,621.73
   Other Paid Cashes Related to Operational    VII.7        333,876,162.33       460,271,726.39
Activities                                     8
     Subtotal of cash outflow from                         5,708,329,746.74    4,927,741,693.22
operational activities
        Net cash flow generated by                         1,123,685,580.01    1,239,421,359.40
operating activities
II. Cash Flow from Investment Activities:
   Cash Arising from Disposal of                           1,678,164,183.51    2,671,428,822.54
Investments
   Cash Arising from Investment Incomes
   Net Cash Arising from Disposal of Fixed                   20,542,230.33          1,266,764.21
Assets, Intangible Assets and Other
Long-term Assets
   Net Cash Arising from Disposal of
Subsidiaries and Other Business Units
   Other Received Cashes Related to
Investment Activities
     Subtotal of cash inflow from                          1,698,706,413.84    2,672,695,586.75
investment activities
   Cash Paid for Purchase and Construction                 1,405,987,218.49      939,849,836.70
of Fixed Assets, Intangible Assets and
Other Long-term Assets
   Cash Paid for Investments                                880,000,000.00     2,727,000,000.00
   Net Increase in Pledge Loans
   Net Cash Paid for Acquisition of                                               32,100,000.00
Subsidiaries and Other Business Units
   Other Paid Cashes Related to Investment
Activities
     Subtotal of Cash Outflow from                         2,285,987,218.49    3,698,949,836.70
Investment Activities
        Net amount of cash flow generated                  -587,280,804.65    -1,026,254,249.95
by investment activities
III. Cash Flow from Financing Activities:
   Cash Arising from Absorbing
                                                83 / 225
 Ningbo Tuopu Group Co., Ltd.                                                        Annual Report 2020


Investments
   Including: Cash Arising from
Subsidiaries Absorbing Investments by
Minority Shareholders
   Cash Arising from Borrowings                             576,775,000.00              532,000,000.00
   Other Received Cashes Related to
Financing Activities
     Subtotal of cash inflow from financing                 576,775,000.00              532,000,000.00
activities
   Cash Paid for Debts Repayment                            921,675,000.00              445,000,000.00
   Cash Paid for Distribution of Dividends                  220,060,874.38              328,140,065.30
and Profits or Payment of Interests
   Including: Dividends and Profits Paid to
Minority Shareholders by Subsidiaries
   Other Paid Cashes Related to Financing
Activities
     Subtotal of cash outflow from                         1,141,735,874.38             773,140,065.30
financing activities
         Net cash flow generated by                         -564,960,874.38            -241,140,065.30
financing activities
IV. Impact of Fluctuation in Exchange                        -11,759,547.02              11,482,675.93
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash                             -40,315,646.04             -16,490,279.92
Equivalents
   Add: Cash and Cash Equivalents at the                    715,182,068.12              731,672,348.04
Commencement of the Period
VI. Cash and Cash Equivalents at the                        674,866,422.08              715,182,068.12
End of the Period

Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution
Officer: Hong Tieyang


                             Cash Flow Statement of the Parent Company
                           For the Period from January 2020 to December 2020
                                                                         Unit:Yuan    Currency:RMB
                     Item                       Note            2020                    2019
I. Cash Flow Generated by Operational
Activities:
   Cash from Sales of Merchandise and                        2,328,443,759.77         2,456,914,650.08
Provision of Services
   Tax Refund                                                                            12,413,742.54
   Other Received Cashes Related to                             52,156,057.09            50,231,719.37
Operational Activities
     Subtotal of cash inflow from                            2,380,599,816.86         2,519,560,111.99
operational activities
   Cash Paid for Merchandise and Services                    1,086,508,531.20           753,950,126.40
   Cash Paid to and for Employees                              477,432,560.14           414,522,563.71
   Cash Paid for Taxes and Surcharges                          244,443,630.66           194,690,785.38
   Other Paid Cashes Related to Operational                    198,896,378.47           195,358,401.90
Activities
     Subtotal of cash outflow from                           2,007,281,100.47         1,558,521,877.39
operational activities
   Net cash flow generated by operating                        373,318,716.39           961,038,234.60
activities
II. Cash Flow from Investment
                                              84 / 225
 Ningbo Tuopu Group Co., Ltd.                                                Annual Report 2020


Activities:
   Cash Arising from Disposal of                          1,691,336,501.55    2,449,907,939.14
Investments
   Cash Arising from Investment Incomes                    150,000,000.00
   et Cash Arising from Disposal of Fixed                  128,809,847.55       108,441,556.92
Assets, Intangible Assets and Other
Long-term Assets
   Net Cash Arising from Disposal of
Subsidiaries and Other Business Units
   Other Received Cashes Related to                         16,003,000.00
Investment Activities
      Subtotal of cash inflow from                        1,986,149,349.10    2,558,349,496.06
investment activities
   Cash Paid for Purchase and Construction                 418,264,872.95       468,426,007.27
of Fixed Assets, Intangible Assets and
Other Long-term Assets
   Cash Paid for Investments                              1,515,591,204.56    2,947,003,013.09
   Net Cash Paid for Acquisition of
Subsidiaries and Other Business Units
   Other Paid Cashes Related to Investment                  50,050,000.00        11,950,000.00
Activities
      Subtotal of Cash Outflow from                       1,983,906,077.51    3,427,379,020.36
Investment Activities
         Net amount of cash flow generated                    2,243,271.59     -869,029,524.30
by investment activities
III. Cash Flow from Financing Activities:
   Cash Arising from Absorbing
Investments
   Cash Arising from Borrowings                            400,000,000.00       532,000,000.00
   Other Received Cashes Related to
Financing Activities
      Subtotal of cash inflow from financing               400,000,000.00       532,000,000.00
activities
   Cash Paid for Debts Repayment                           744,900,000.00       445,000,000.00
   Cash Paid for Distribution of Dividends                 220,031,735.47       328,105,291.64
and Profits or Payment of Interest
   Other Paid Cashes Related to Financing
Activities
      Subtotal of cash outflow from                        964,931,735.47       773,105,291.64
financing activities
         Net cash flow generated by                       -564,931,735.47      -241,105,291.64
financing activities
IV. Impact of Fluctuation in Exchange
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash                          -189,369,747.49      -149,096,581.34
Equivalents
   Add: Cash and Cash Equivalents at the                   381,071,584.55       530,168,165.89
Commencement of the Period
VI. Cash and Cash Equivalents at the                       191,701,837.06       381,071,584.55
End of the Period


Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution
Officer: Hong Tieyang


                                               85 / 225
     Ningbo Tuopu Group Co., Ltd.                                                                                                                                                                           Annual Report 2020

                                                                             Consolidated Statement of Changes in Owners' Equity
                                                                               For the Period from January 2020 to December 2020
                                                                                                                                                                                                 Unit:Yuan Currency:RMB
                                                                                                                                               2020

                                                                     Shareholders' Equity Attributable to the Parent Company's Owner
                                                                                                                                                                                                              Minority
          Item                                                                                  Less:                                                 General                                                                  Total
                                                Other Equity Instruments                                                                                                                                    Shareholders
                           Paid-in Capital                                                                  Other        Special                                                                                           Shareholder s'
                                                                                 Capital       Treasur                               Surplus           Risk      Undistributed    Other                       'Equity
                                                                                                                                                                                             Subtotal                         Equity
                              (or Share      Preferre    Perpetua    Other                               Comprehensiv    Reserve                                                    s
                                                                                Reserves         y                                   Reserves         Reserve       Profits
                              Capital)       d Stocks    l Bonds       s                                  e Incomes         s
                                                                                               Shares                                                    s
                           1,054,987,749.0                                   3,409,439,863.0             -4,380,983.53             412,680,608.9                2,502,765,125.4           7,375,492,362.8   29,156,922.1   7,404,649,285.0
I. Balance at                            0                                                 7                                                   1                              3                         8              2                 0
the End of Last
Year
Add: Changes
in Accounting
Policies
     Correctio
n of Errors in
the Previous
Period
     Consolida
ted under the
Same Control
     Others
II. Balance at the Start   1,054,987,749.0                                   3,409,439,863.0             -4,380,983.53             412,680,608.9                2,502,765,125.4           7,375,492,362.8   29,156,922.1   7,404,649,285.0
of This Year                             0                                                 7                                                   1                              3                         8              2                 0
                                                                                                         -16,250,685.2             62,089,021.95                365,664,194.05            411,502,530.79    1,929,530.09   413,432,060.88
III. Increases                                                                                                       1
or Decreases
in This Period
(Decreases in
"-")
                                                                                                         -16,250,685.2                                          628,200,888.31            611,950,203.10    1,929,530.09   613,879,733.19
  (I) Total                                                                                                          1


Comprehensiv
e
Income


                                                                                                                86 / 225
    Ningbo Tuopu Group Co., Ltd.                                                                Annual Report 2020

 (II)
Shareholders'
Contribution
and Reduction
in Capital
 1. Common
stock invested
by the owner
2. Capital
Invested by
Holders of
Other Equity
Instruments

3. Amount of

Share-based

Payments

Recorded into

Shareholders'
Equity
4. Others
                                              62,089,021.95   -262,536,694.2   -200,447,672.3               -200,447,672.3
 (III) Profit                                                              6                1                            1
Distribution
                                              62,089,021.95   -62,089,021.95
1.
Appropriation
of Surplus
Reserves
 2.
Appropriation
of General
Risk Reserves
                                                              -200,447,672.3   -200,447,672.3               -200,447,672.3
3. Distribution                                                            1                1                            1




                                   87 / 225
      Ningbo Tuopu Group Co., Ltd.              Annual Report 2020

to Owners (or
Shareholders)
4. Others
  (IV) Internal
Carry-forward
of
Shareholders'
Equity
1. Capital
Reserves
Transferred
into Capital (or
Share Capital)
2. Surplus
Reserves
Transferred
into Capital (or
Share Capital)
3. Surplus
Reserves
Covering
Losses
4.
Carry-forward
retained
earnings of the
variation of the
defined benefit
plan
 5.        Other
 Carry-forward
 Retained
 Earnings of
 the



                                     88 / 225
      Ningbo Tuopu Group Co., Ltd.                                                                                                                                                               Annual Report 2020

 Comprehensiv
 e
Income
6. Others
 (V) Special
Reserves
1. Withdrawal
in this period
2. Used in this
period
 (VI) Others
                    1,054,987,749.0                                 3,409,439,863.0             -20,631,668.7              474,769,630.8             2,868,429,319.4           7,786,994,893.6   31,086,452.2    7,818,081,345.8
IV. Balance at                    0                                               7                         4                          6                           8                         7              1                  8
the End of
This Period

                                                                                                                                   2019

                                                                       Shareholders' Equity Attributable to the Parent Company's Owner

       Item                                                                                                                                Genera     Undistribute
                                                                                                                                                                                                    Minority
                                                                                                                                                                                                  Shareholders
                                                                                                                                                                                                                      Total
                                                                                                                                                                                                                  Shareholders'
                   Paid-in Capital                                   Capital           Less:       Other                     Surplus
                                                                                                                 Special                   l Risk          d           Other                        ' Equity         Equity
                     (Or Share        Preferre   Perpetu                              Treasur   Comprehensi                                                                        Subtotal
                                                                                                                                                                         s
                                          d         al     Other    Reserves                                     Reserve     Reserves      Reserve
                      Capital)         Stocks    Bonds       s                        y Share   ve Incomes                                               Profits
                                                                                                                    s                         s
                   727,577,758.00                                  3,736,849,854.                -2,593,758.39              366,116,706.              2,392,885,245.            7,220,835,805.    25,207,706.0    7,246,043,511.
I. Balance at                                                                 07                                                     91                          28                        87                2               89
the End of
Last Year
Add: Changes
in Accounting
Policies
     Correcti
on of Errors
in the
Previous
Period
     Consolid
ated under the


                                                                                                       89 / 225
    Ningbo Tuopu Group Co., Ltd.                                                                                      Annual Report 2020

Same Control
       Others
                 727,577,758.00    3,736,849,854.   -2,593,758.39    366,116,706.   2,392,885,245.   7,220,835,805.    25,207,706.0   7,246,043,511.
II. Balance at                                07                              91               28               87                2              89
the Start of
This Year
                 327,409,991.00    -327,409,991.0   -1,787,225.14    46,563,902.0   109,879,880.15   154,656,557.01    3,949,216.10   158,605,773.11
III. Increases                                  0                               0
or Decreases
in This Period
(Decreases in
“-“)
                                                    -1,787,225.14                   456,205,818.45   454,418,593.31    3,949,216.10   458,367,809.41
(I) Total

Comprehensi
ve
Income
 (II)
Shareholders'
Contribution
and
Reduction in
Capital
1. Common
stock invested
by the owner
2. Capital
Invested by
Holders of
Other Equity
Instruments
3. Amount of
Share-based
Payments
Recorded into
Shareholders'
Equity


                                                          90 / 225
    Ningbo Tuopu Group Co., Ltd.                                                                                Annual Report 2020

4. Others
                                                               46,563,902.0   -346,325,938.3   -299,762,036.3               -299,762,036.3
(III) Profit                                                              0                0                0                            0
Distribution
                                                               46,563,902.0   -46,563,902.00
1.                                                                        0
Appropriation
of Surplus
Reserves
2.
Appropriation
of General
Risk Reserves
                                                                              -299,762,036.3   -299,762,036.3               -299,762,036.3
3.                                                                                         0                0                            0
Distribution
to Owners (or
Shareholders)
4. Others
                  327,409,991.00   -327,409,991.0
  (IV) Internal                                 0
Carry-forwar
d of
Shareholders'
Equity
                  327,409,991.00   -327,409,991.0
1. Capital                                      0
Reserves
Transferred
into Capital
(or Share
Capital)
2. Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3. Surplus
Reserves
Covering

                                                    91 / 225
     Ningbo Tuopu Group Co., Ltd.                                                                                                                                                                    Annual Report 2020

Losses
4.
Carry-forwar
d retained
earnings of
the variation
of the defined
benefit plan
5. Other
Carry-forwar
d Retained
Earnings of
the
Comprehensi
ve Income
6. Others
 (V) Special
Reserves
1. Withdrawal
in this period
2. Used in
this period
(VI) Others
                      1,054,987,749.                                     3,409,439,863.                  -4,380,983.53           412,680,608.            2,502,765,125.             7,375,492,362.   29,156,922.1      7,404,649,285.
IV. Balance at                   00                                                 07                                                    91                        43                         88               2                 00
the End of
This Period

Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution Officer: Hong Tieyang

                                                                Statement of Changes in Owners' Equity of the Parent Company
                                                                       For the Period from January 2020 to December 2020
                                                                                                                                                                                         Unit:Yuan Currency:RMB
                                                                                                                                   2020
                                                                     Other Equity Instruments                                                   Other
                                                                                                                                Less:           Compr                                                                  Total
               Item                    Paid-in Capital (or
                                                                                                            Capital Reserves   Treasury
                                                                                                                                                          Special
                                                                                                                                                                      Surplus Reserves
                                                                                                                                                                                            Undistributed
                                                                                                                                                                                                                    Shareholders'
                                         Share Capital)      Preferred        Perpetual                                                                  Reserves                             Profits
                                                              Stocks           Bonds
                                                                                                Others                          Share           ehensi                                                                 Equity
                                                                                                                                                ve


                                                                                                               92 / 225
   Ningbo Tuopu Group Co., Ltd.                                                                          Annual Report 2020

                                                                        Income
                                                                        s
                                  1,054,987,749.00   3,409,439,863.07            412,680,608.91   2,539,788,223.59   7,416,896,444.57
I. Balance at the End of
Last Year
Add: Changes in
Accounting Policies
      Correction of Errors
in the Previous Period
      Others
                                  1,054,987,749.00   3,409,439,863.07            412,680,608.91   2,539,788,223.59   7,416,896,444.57
II. Balance at the Start of
This Year
                                                                                  62,089,021.95    358,353,525.21     420,442,547.16
III. Increases or Decreases
in This Period (Decreases
in “-“)
                                                                                                   620,890,219.47     620,890,219.47
  (1) Total comprehensive
income
II) Shareholders'
Contribution and
Reduction in Capital
1. Common stock
invested by the owner
2. Capital Invested by
Holders of Other Equity
Instruments
3. Amount of Share-based
Payments Recorded into
Shareholders' Equity
4. Others
                                                                                  62,089,021.95   -262,536,694.26    -200,447,672.31
(III) Profit Distribution
                                                                                  62,089,021.95     -62,089,021.95
1. Appropriation of
Surplus Reserves
                                                                                                  -200,447,672.31    -200,447,672.31
2. Distribution to Owners
(or Shareholders)
3. Others
(IV) Internal


                                                       93 / 225
   Ningbo Tuopu Group Co., Ltd.                                                                                                                                                 Annual Report 2020

Carry-forward of
Shareholders' Equity
1. Capital Reserves
Transferred into Capital
(or Share Capital)
2. Surplus Reserves
Transferred into Capital
(or Share Capital)
3. Surplus Reserves
Covering Losses
4. Carry-forward retained
earnings of the variation
of the defined benefit plan
 5. Other Carry-forward
Retained Earnings of the
Comprehensive Income
6. Others
(V) Special Reserves
1. Withdrawal in this
period
 2. Used in This Period
 (VI) Others
                                  1,054,987,749.00                                                3,409,439,863.07                                     474,769,630.86    2,898,141,748.80   7,837,338,991.73
IV. Balance at the End of
This Period

                                                                                                                         2019
                                                             Other Equity Instruments                                            Other
                                                                                                                                                                                                Total
                                                                                                                      Less:
           Item               Paid-in Capital (Or
                                                                                                 Capital Reserves    Treasury   Comprehe    Special                      Undistributed
                                Share Capital)       Preferred      Perpetual                                                              Reserves   Surplus Reserves     Profits          Shareholders'
                                                                                        Others                        Share
                                                      Stocks         Bonds                                                       nsive
                                                                                                                                                                                               Equity
                                                                                                                                Incomes
                                   727,577,758.00                                                 3,736,849,854.07                                     366,116,706.91    2,420,475,141.90   7,251,019,460.88
I. Balance at the End of
Last Year
Add: Changes in
Accounting Policies


                                                                                                    94 / 225
   Ningbo Tuopu Group Co., Ltd.                                                               Annual Report 2020

       Correction of Errors
in the Previous Period
       Others
                                  727,577,758.00   3,736,849,854.07   366,116,706.91   2,420,475,141.90   7,251,019,460.88
II. Balance at the Start of
This Year
                                  327,409,991.00   -327,409,991.00     46,563,902.00    119,313,081.69     165,876,983.69
III. Increases or
Decreases in This Period
(Decreases in “-“)
                                                                                        465,639,019.99     465,639,019.99
  (I) Total
Comprehensive Income
  (II) Shareholders'
Contribution and
Reduction in Capital
1. Common stock
invested by the owner
2. Capital Invested by
Holders of Other Equity
Instruments
3. Amount of
Share-based Payments
Recorded into
Shareholders' Equity
  4. Others
                                                                       46,563,902.00   -346,325,938.30    -299,762,036.30
  (III) Profit Distribution
                                                                       46,563,902.00     -46,563,902.00
  1. Appropriation of
Surplus Reserves
                                                                                       -299,762,036.30    -299,762,036.30
2. Distribution to Owners
(or Shareholders)
3. Others
                                  327,409,991.00   -327,409,991.00
  (IV) Internal
Carry-forward of
Shareholders' Equity
                                  327,409,991.00   -327,409,991.00
1. Capital Reserves
Transferred into Capital
(or Share Capital)


                                                     95 / 225
   Ningbo Tuopu Group Co., Ltd.                                                                                                          Annual Report 2020

 2. Surplus Reserves
 Transferred into Capital
 (or Share Capital)
 3. Surplus Reserves
 Covering Losses
 4. Carry-forward retained
 earnings of the variation
 of the defined benefit
 plan
 5. Other Carry-forward
 Retained Earnings of the
 Comprehensive Income
 6. Others
  (V) Special Reserves
 1. Withdrawal in this
 period
 2. Used in this period
 (VI) Others
                                  1,054,987,749.00                    3,409,439,863.07                          412,680,608.91   2,539,788,223.59   7,416,896,444.57
 IV. Balance at the End of
 This Period

Legal Representative: Wu Jianshu Accounting Work Officer: Hong Tieyang Accounting Institution Officer: Hong Tieyang




                                                                        96 / 225
     Ningbo Tuopu Group Co., Ltd.                                                           Annual Report 2020

     III. Basic Information about the Company
     1. Company Profile
     √Applicable □Non-applicable
          Ningbo Tuopu Group Co., Ltd. (hereinafter referred to as "Company" or "The Company"), a
     company limited by shares changed from Ningbo Tuopu Brake System Co., Ltd., incorporated by
     MECCA INTERNATIONAL HOLDING ( HK ) LIMITED, Ningbo Jinlun Equity Investment
     Partnership (Limited Partnership) and Ningbo Jinrun Equity Investment Partnership (Limited
     Partnership), holder of the Corporate Business License (Registration No.: 91330200761450380T), listed
     on Shanghai Stock Exchange (SSE) in March 2015, is specialized in manufacturing - automobile
     manufacturing.
          As of December 31, 2020, the Company has issued a total of 1,054,987,749 shares, with a
     registered capital of RMB 1,054,987,749 million, registered address: 268 Yuwangshan Road, Daqi
     Street, Beilun District, Ningbo, Zhejiang, headquartered in 268 Yuwangshan Road, Daqi Street, Beilun
     District, Ningbo, Zhejiang, is engaged in production and sales of automobile parts. MECCA
     INTERNATIONAL HOLDING (HK) LIMITED is the parent company of the Company is, and Wu
     Jianshu is the actual controller of the Company.
          This financial statement was approved for release by the Board of Directors on April 19, 2021.

     2. Scope of consolidated statement
     √Applicable □Non-applicable
          As of December 31st, 2020, the subsidiaries included in the scope of consolidated statement of the
     Company are as follows:
                                             Name of Subsidiary

1.Ningbo Tuopu Import and Export Co., Ltd. (hereinafter referred to as "Tuopu Imp&Exp.")
2. Ningbo Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Tuopu Parts")

3. Ningbo Tuopu Acoustics Vibration Technology Co., Ltd. (hereinafter referred to as "Tuopu Acoustics
Vibration")
4. Yantai Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Yantai Tuopu")
5. Liuzhou Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Liuzhou Tuopu")
6. Shenyang Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Shenyang Tuopu")

7. Ningbo Tuopu Intelligent Brake System Co., Ltd. (hereinafter referred to as "Tuopu Intelligent Brake")
8. Tuopu North American Ltd (hereinafter referred to as " North American ")
9. Ningbo Qianhui Automobile Trim Parts Co., Ltd. (hereinafter referred to as "Ningbo Qianhui")
10. Tuopu North American USA Limited,INC (hereinafter referred to as " Tuopu North American USA")
11. Sichuan Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Sichuan Tuopu")
12. Wuhan Tuopu Maigao Automobile Parts Co., Ltd. (hereinafter referred to as "Wuhan Tuopu")
13. Pinghu Tuopu Special Fabric Co., Ltd. (hereinafter referred to as "Pinghu Tuopu")

14. Shanghai Towin Automotive Technology Co., Ltd. (hereinafter referred to as "Shanghai Towin")
15. Ningbo Tuopu Industrial Automation Co., Ltd. (hereinafter referred to as "Tuopu Industrial Automation")
16. Ningbo Tuopu Investment Co., Ltd. (hereinafter referred to as "Tuopu Investment")
17. Ningbo Yuxiang E-commerce Co., Ltd. (hereinafter referred to as "Yuxiang E-commerce")


                                                      97 / 225
     Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020


                                             Name of Subsidiary

18. Tuopu Group International Co., Ltd. (hereinafter referred to as "Tuopu International")
19. Baoji Tuopu Maigao Automobile Parts Co., Ltd. (hereinafter referred to as "Baoji Tuopu")
20. Taizhou Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Taizhou Tuopu")

21. Ningbo Tuopu Mechatronic System Co., Ltd. (hereinafter referred to as "Tuopu Mechatronic System")
22. Tuopu Do Brasil Autopeas Ltda. (hereinafter referred to as "Tuopu Brasil")
23. Tuopu Sweden Technology AB (hereinafter referred to as "Tuopu Sweden")

24. Jinzhong Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Jinzhong Tuopu")
25. Shenzhen Towin Automotive Technology Co., Ltd. (hereinafter referred to as "Shenzhen Towin")
26. Zhejiang Towin Automobile Parts Co., Ltd. (hereinafter referred to as "Zhejiang Towin")
27. Sichuan Maigao Automobile Parts Co., Ltd. (hereinafter referred to as "Sichuan Maigao")

28. Hunan Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as "Hunan Tuopu")
29. TUOPU (MALAYSIA) SDN.BHD. (hereinafter referred to as "Tuopu Malaysia")

30. Tuopu USA, LLC (hereinafter referred to as "Tuopu USA")
31. Ningbo Tuopu Chassis System Co., Ltd. (hereinafter referred to as "Tuopu Chassis")
32. Tuopu EV Thermal Management System (Ningbo) Co., Ltd. (hereinafter referred to as "Tuopu Thermal
Management")
        More details about the changes in the scope of consolidation are available in “VIII. Changes in the
    scope of consolidation”.

     IV. Basis for Preparing the Financial Statement
     1. Basis for the preparation
          The Company prepares the financial statement, as a going concern.
     based on transactions and matters that have actually occurred, in accordance with “Accounting
     Standards for Business Enterprises - Basic Standards” issued by the Ministry of Finance and all specific
     accounting standards, application guidelines for accounting standards for business enterprises,
     explanations on the accounting standards for business enterprises and other related regulations
     (hereinafter collectively as "Accounting Standards for Business Enterprises"), and the disclosure
     provisions in the “Preparation Rules for Information Disclosures by Companies Offering Securities to
     the Public No. 15 - General Provisions on Financial Reports” issued by CSRC.
     2. Going concern
     √Applicable □Non-applicable
     The Company has the capability to continue as a going concern for at least 12 months as of the end of
     current reporting period, without any significant item affecting the capability for continuing as a going
     concern.
     V. Significant Accounting Polices and Accounting Estimates
     Notes to specific accounting policies and accounting estimates:
     √Applicable □Non-applicable
     The following disclosures cover the specific accounting policies and accounting estimates formulated
     by the Company according to the characteristics of its production and operation.




                                                      98 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

1.   Statement on compliance with Accounting Standards for Business Enterprises
This financial statement is in compliance with the requirements in the Accounting Standards for
Business Enterprises promulgated by the Ministry of Finance and presents truly and completely the
financial position, operating results and cash flows of the Company.

2. Accounting Period
The accounting period of the Company is from 1 January to 31 December of each calendar year.

3. Operating cycle
√Applicable □Non-applicable
    The Company's operating cycle is 12 months.

4. Functional currency
   The reporting currency is RMB ("RMB").

5. The accounting treatment of business combinations involving enterprises under common control
and business combinations not involving enterprises under common control
√Applicable □Non-applicable
Business combination under common control: The assets and liabilities acquired by the merging party
in business combination shall be measured at the book value of the assets, liabilities of the merged party
(including goodwill incurred in the acquisition of the merged party by ultimate controlling party) in the
consolidated financial statements of the ultimate controlling party on the date of combination. The
difference between the book value of the net assets obtained and the book value of the consideration
paid for the combination (or total nominal value of the issued shares) is adjusted to capital premium in
capital reserve. Adjustments shall be made to retained earnings in the event that the share premiums in
the capital reserves are not sufficient for write-down.

Business combinations involving entities not under common control: The assets paid and liabilities
incurred or committed as a consideration of business combination by the merging party were measured
at fair value on the date of acquisition and the difference between the fair value and its book value shall
be charged to the profit or loss for the period. Where the cost of combination is higher than the fair
value of the identifiable net assets acquired from the merging party in business combination, such
difference shall be recognized as goodwill; where the cost of combination is less than the fair value of
the identifiable net assets acquired from the merging party in business combination, such difference
shall be charged to the profit or loss for the period. The identifiable assets, liabilities and contingent
liabilities of the merged party obtained in business combination that meet the recognition conditions are
measured at their fair values on the purchase date.

The fees which are directly related to the business combination shall be recognized as the profit or loss
in the period when the costs are incurred; the transaction expenses of issuing equity securities or debt
securities for business merger shall be initially capitalized for equity securities or debt securities.


6. Preparation method of consolidated financial statements
√Applicable □Non-applicable
      (1). Scope of Consolidation
The scope of consolidation of the consolidated financial statements is based on controlling interests
and includes the Company and all the subsidiaries. Control means that the Company has the rights

                                                  99 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

over the investee, enjoys variable returns through participating in relevant activities of the investee,
and has the ability to influence the amount of returns by exercising its rights over the investee.
      (2). Procedures of Consolidation
The Company regards the Enterprise Group as an accounting entity and prepares consolidated
financial statements in accordance with unified accounting policies to reflect the overall financial
position, operating result and cash flow of the Enterprise Group. The influence of internal
transactions between the Company and the Subsidiaries and between the Subsidiaries shall be offset.
Where internal transaction indicates the occurrence of impairment loss to relevant assets, such loss
shall be recognized in full. In preparing the consolidated financial statements, where the accounting
policies and the accounting periods are inconsistent between the Company and subsidiaries, the
financial statements of subsidiaries are adjusted where necessary in accordance with the accounting
policies and accounting period of the Company.

   The owner's equity, the net profit or loss and the comprehensive income attributable to minority
shareholders of a subsidiary of the current period are presented separately under the owners' equity in
the consolidated balance sheet, the net profit and the total comprehensive income in the consolidated
income statement respectively. Where losses attributable to the minority shareholders of a subsidiary
of the current period exceed the minority shareholders' interest entitled in the shareholders' equity of
the subsidiary at the beginning of the period, the excess is allocated against the minority shareholders
interest.
     (1) Acquisition of subsidiaries or Business
    For acquisition of subsidiaries or business due to business combination involving entities under
common control during the reporting period, the operating results and cash flows of such subsidiaries
or business from the beginning to the end of the reporting period when the acquisition occurs shall be
included in the consolidated financial statements. Adjustments shall be made to the opening balance
of the consolidated financial statements and the related items in the comparative statements
simultaneously as if the consolidated reporting entity has been in existence since the beginning of the
control by the ultimate controlling party.

    Where the control over the investee under common control is made possible due to additional
investment or other reasons, the equity investment held before gaining control of the combined party
is recognized as relevant profit or loss, other comprehensive income and changes of other net assets
at the later of the date of acquisition of the original equity and the date when the combining and the
combined parties are under common control, and shall be written down to the opening retained
earnings or current profit or loss in the comparative reporting period.

    For acquisition of subsidiaries or business due to business combination involving entities not
under common control during the reporting period, the identifiable assets, liabilities and contingent
liabilities shall be included in the consolidated financial statements based on the fair value
determined on the date of the acquisition.

    In connection with imposing control over the investee not under joint control due to additional
investment and other reasons, the equity of acquiree held before acquisition date shall be remeasured
by the Company at the fair value of such equity on the acquisition date and the difference between
fair value and book value shall be recognized as investment income in current period. Other
comprehensive income related to the equity held by the Acquiree before the acquisition date which

                                                 100 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

can be reclassified into future profit or loss, and other changes of owners’ equity accounted for under
equity
     (2) Disposal of Subsidiaries or Business
     General Treatment
    When losing control of the investee due to partial disposal of the equity investment, or any other
reasons, the remaining equity investment is remeasured at fair value at the date in which control is lost.
The sum of consideration received from disposal of equity investment and the fair value of the
remaining equity investment, net of the difference between the sum of the Company's previous share of
the subsidiary's net assets recorded from the acquisition date or combination date and the sum of
goodwill, is recognized in investment income in the period in which control is lost. Other comprehensive
income related to the equity investment of the original subsidiary that can be reclassified into future
profit or loss, and other changes of owners’ equity accounted for under equity method shall be
recognized in investment income in the period in which control is lost.
     Disposal of Subsidiary Achieved by Stages
When disposal of equity interests of subsidiaries through multiple transaction until the control is lost,
generally transactions in stages are treatment as a package deal in accounting if the transaction terms,
conditions, and economic impact of disposal of the subsidiary's equity interests comply with one or more
of the following:
       i. These transactions are achieved at the same time or the mutual effects on each other are
considered;
     ii. A complete set of commercial results can be achieved with reference to the series of
transactions as a whole;
     iii. Achieving a transaction depends on at least achieving of one of the other transaction;
     iv. One transaction recognized separately is not economical, but it is economical when considered
together with other transactions.
     When losing control of a subsidiary in disposal of equity interests through multiple transactions is
recognized as a package deal, these transactions shall be in accounting treated as loss control of a
subsidiary in disposal of equity interests achieved. However, the differences between price on each
disposal and disposal of investment on the subsidiary's net assets shall be recognized in other
comprehensive income in the consolidated financial statements, and included in profit or loss for the
period when the control is lost.
When all transactions in disposal of equity interests of subsidiaries are not a package deal, accounting
treatment for partial disposal of equity investments of subsidiary without losing control shall be applied
before control is lost. When the control is lost, general accounting treatment for disposal of a subsidiary
shall be used.
     (3) Acquisition of Minority Interest of Subsidiaries
    The Company shall adjust the share premium in the capital reserve of the consolidated balance sheet
with respect to any difference between the long-term equity investment arising from the purchase of
minority interest and the net assets attributing to the parent company continuously calculated on the
basis of the newly increased share proportion as of the acquisition date or date of combination, adjust the
retained earnings if the share premium in the capital reserve is insufficient for write-down.
         (4) Partial Disposal of Equity Investment in Subsidiaries without Losing Control
     Disposal price and disposal of long-term equity investment shall be entitled to the difference
between the shares of the net assets of the subsidiaries calculated continuously from the date of purchase
or acquisition. Adjustments shall be made to the equity premiums in the capital reserve of consolidated
balance sheet. When the equity premiums in the capital reserve are not sufficient for write-down, the
retained earnings shall be adjusted.

7. Classification of Joint Arrangement and Accounting Treatment Methods of Joint Operation
√Applicable □Non-applicable
     Joint arrangement can be divided into joint operation and joint venture.
     Joint operation refers to a joint arrangement in which the parties have rights to the assets and
obligations for the liabilities relating to the joint operation.
     The Company recognizes the following items related to the share of interests in the joint operation:


                                                 101 / 225
Ningbo Tuopu Group Co., Ltd.                                                               Annual Report 2020

        (1)     Recognize the assets held separately by the Company and the assets jointly held in
accordance with the share of the Company;
        (2)     Recognize the liabilities assumed separately by the Company and the liabilities jointly
assumed in accordance with the share of the Company;
        (3)     Recognize the income generated through the sale of the Company's share of the output of
the joint operation;
       (4) Recognize the income generated through the sale of the output of the joint operation in
accordance with the share of the Company;
       (5) Recognize the expenses incurred separately, and the expenses incurred in joint operation in
accordance with the share of the Company .
The Company's investment in joint venture is accounted for by the equity method, as specified in the
note “V. 21. Long-term Equity Investment”.

8.   Recognition criteria of cash and cash equivalents
Cash equivalents refer to investments held by the Company featuring short duration (it generally refers
to the maturity within three months from the purchase date), strong liquidity, easy conversion into cash
of known amount and low risk of changes in value.

9. Conversion of transactions and financial statements denominated in foreign currencies
√Applicable □Non-applicable
      (1) Foreign currency transactions
    Foreign currency transactions shall be translated into RMB at the spot exchange rate on the day
when the transactions occurred, or at an exchange rate fixed in accordance with a systematic and
reasonable method that is similar to the spot exchange rate on the day when the transactions occurred.

    Balance sheet date foreign currency monetary items shall be translated using the spot exchange rate
at the balance sheet date. The resulting exchange differences are recognized in profit or loss for the
current period, except for those differences related to the principal and interest on a specific-purpose
borrowing denominated in foreign currency for acquisitions, construction or production of the qualified
assets, which should be capitalized as cost of the assets.
     2. Translation of foreign currency financial statements
     All assets and liabilities items in balance sheet are translated based on spot exchange rate on the
balance sheet date; owners' equity items other than "undistributed profits" are translated at a spot
exchange rate when accrued. Revenue and expense items as contained in the income statement are
translated at a spot exchange rate at the transaction occurrence date. For disposal of overseas operation,
the translation difference as stated in the foreign currency financial statements relating to overseas
operation, is accounted for in the profit and loss account in the current period from owners' equity
items.



10. Financial instruments
√Applicable □Non-applicable
     The Company recognizes a financial asset, financial liability or equity instrument when it becomes
a party to a financial instrument contract.
     1. Classification of the financial instruments
According to the Company's business model for management of the financial assets and the contractual
cash flow features of the financial assets, the financial assets, when initially recognized, are classified as:
financial assets at amortized cost, financial assets at fair value through other comprehensive income and
financial assets at fair value through profit or loss.

                                                   102 / 225
Ningbo Tuopu Group Co., Ltd.                                                             Annual Report 2020

    For financial assets that meet the following conditions and are not designated to be measured at fair
value through the current profit or loss, the Company classifies them as financial assets at amortized
cost:
     — The business model is aimed at collecting contract cash flow;
     — Contract cash flow is the payment of principal and interest based on the outstanding principal
          amount.
      For financial assets that meet the following conditions and are not designated to be measured at
fair value through current profit or loss, the Company classifies them as financial assets at fair value
through other comprehensive income (debt instruments).
     — The business model is aimed at both collecting contract cash flows and selling financial asset;
     — Contract cash flow is the payment of principal and interest based on the outstanding principal
          amount.
The Company will, at the time of initial recognition, irrevocably designate non-trading investments in
equity instruments as financial assets measured at fair value and the change shall be included in other
comprehensive income (equity instrument). The designation is made on the basis of independent
investment, and the related investments fit the definition of an equity instrument from an issuer’s
perspective.
In addition to the aforementioned financial assets at amortized cost and at fair value through other
comprehensive income, the Company classifies all other financial assets as financial assets at fair value
through current profit or loss. At the time of initial recognition, for financial assets that should have
been classified as financial assets at amortized cost or fair value through other comprehensive income,
the Company can irrevocably designate them as financial assets at fair value through current profit or
loss in order to eliminate or significantly reduce the accounting mismatch.

The financial liabilities, when initially recognized, are classified as: financial liabilities at fair value
through profit or loss and financial liabilities at amortized cost.

Financial liabilities which meet one of the following conditions will be, when initially measured,
designated as financial liabilities at fair value through profit or loss:
     1) Such designation may be able to eliminate or significantly reduce the accounting mismatch.
    2) The portfolio of financial liabilities or the portfolio of financial assets and financial liabilities
shall be subject to management and performance evaluation on the basis of fair value according to the
enterprise risk management or investment strategy contained in the formal documentations, and a
report shall be made to the key management personnel within the enterprise on this basis.
     3) Such financial liabilities shall contain embedded derivatives to be split separately.
     2. Recognition and measurement of financial instruments
      (1) Financial assets at amortized cost
Financial assets at amortized cost include notes receivable, accounts receivable, other receivables,
long-term receivables and creditors investment, which shall be initially measured at fair value, and the
relevant transaction expenses should be initially capitalized; The accounts receivable that do not
contain material financing compositions and those for which the Company decides to not take into
account the financing compositions of no more than one year shall be initially measured at the contract
transaction price.

    The interest calculated by effective interest method during the holding period is recorded into the
current profit and loss.

  At the time of recovery or disposal, the difference between the price obtained and the book value

                                                  103 / 225
Ningbo Tuopu Group Co., Ltd.                                                               Annual Report 2020

shall be included in the current profit or loss.
       (2) Financial assets measured at fair value and its changes are included in other comprehensive
income (debt instruments)
     Financial assets measured at fair value and its changes are included in other comprehensive
income (debt instruments) include receivables financing and investments in other creditor's rights.
They are initially measured at fair value, and the value, other than the interest, the impairment loss or
profit and the profit or loss on foreign exchange, shall be included in other comprehensive income.

Upon derecognition, the cumulative profits or losses previously included in other comprehensive
income shall be removed from other comprehensive income and included in the profit or loss for the
period.

     (3) Financial assets at fair value through other comprehensive income (equity instruments)
    Financial assets at fair value through other comprehensive income (equity instruments) include
investment in other equity instruments. They are initially measured at fair value, and the transaction
expenses shall be initially capitalized. These financial assets are subsequently measured at fair value,
and the change in fair value shall be included in other comprehensive income. The dividends obtained
shall be included in the profit or loss for the period.

   Upon derecognition, the cumulative profits or losses previously included in other comprehensive
income shall be removed from other comprehensive income and included in the carry-forward retained
earnings.
    (4) Financial assets at fair value through profit or loss in this period
    Financial assets at fair value through profit or loss include trading financial assets, derivative
financial assets and other non-current financial assets. They are initially measured at fair value, and the
transaction expenses related to them are included in the profit or loss for the period. These financial
assets are subsequently measured at fair value, and the change in fair value shall be included in the
profit or loss for the period.

     (5) Financial Liabilities Measured in Fair Value with Changes Recorded into Current Profit and
Loss
Financial liabilities at fair value through profit or loss include trading financial liabilities and derivative
financial liabilities. They are initially measured at fair value, and the transaction expenses related to
them are included in the profit or loss for the period. These financial liabilities are subsequently
measured at fair value, and the change in fair value shall be included in the profit or loss for the period.

Upon derecognition, the difference between their book value and the consideration paid is included in
the profit or loss for the period.
      (6) Financial liabilities at amortized cost
Financial liabilities at amortized cost include short-term loans, notes payable, accounts payable, other
payables, long-term loans, bonds payable, and long-term payables. They are initially measured at fair
value, and the transaction expenses shall be initially capitalized.
The interest calculated by effective interest method during the holding period is recorded into the current
profit and loss.
Upon derecognition the difference between the consideration paid and the book value of these financial
liabilities is included in the current profit or loss.
      3. Derecognition and transfer of financial assets
                                                   104 / 225
Ningbo Tuopu Group Co., Ltd.                                                               Annual Report 2020

The Company derecognizes financial assets when any one of the following conditions is satisfied:
     -   The contractual right to receive cash flows of the financial assets has been terminated;
     -   The financial asset have been transferred and virtually all the risks and rewards related to the
         ownership of the financial asset shave been transferred to the transferee;
     -   The financial assets have been transferred, and while the Company has neither transferred nor
         retained virtually all of the risks and rewards related to the ownership of the financial assets, it
         has not retained control of the financial assets.
     The financial assets have been transferred, and while the Company has neither transferred nor
retained virtually all of the risks and rewards related to the ownership of the financial assets, it has not
retained control of the financial assets.
The substance-over-form principle shall be adopted while making judgment on whether the transfer of
financial assets satisfies the above conditions for termination of recognition.
The transfer of financial assets can be classified into entire transfer and partial transfer. If the transfer of
an entire financial asset satisfies the conditions for termination of recognition, the difference between the
two amounts below shall be recorded into profit or loss for the period:
    (1) The book value of the financial asset transferred;
    (2) The consideration received as a result of the transfer, plus the accumulative amount of the change
in fair value previously recorded into the owners' equities (in cases where the transferred financial assets
are financial assets at fair value through other comprehensive income (debt instruments)).
      If the partial transfer of financial assets satisfies the conditions for termination of recognition, the
overall book value of the transferred financial asset shall be apportioned according to their respective
relative fair value between the recognition terminated part and the remaining part, and the difference
between the two amounts below shall be recorded into profit or loss for the current period:
    (1) The book value of the recognition terminated portion;
    (2) The sum of consideration of the recognition terminated portion and the corresponding portion of
accumulated change in fair value previously recorded into owners' equity (in cases where the transferred
financial assets are financial assets at fair value through other comprehensive income (debt
instruments)).
Financial assets will still be recognized if they fail to satisfy the conditions for termination of recognition,
with the consideration received recognized as a financial liability.
      4. Recognition for termination of financial liabilities
When the current obligation under a financial liability is completely or partially discharged, the
recognition of the whole or relevant portion of the liability is terminated; an agreement is entered
between the Company and a creditor to replace the original financial liabilities with new financial
liabilities with substantially different terms, terminate the recognition of the original financial liabilities
as well as recognize the new financial liabilities.

If all or part of the contract terms of the original financial liabilities are substantially amended, the
recognition of the original financial liabilities will be terminated in full or in part, and the financial
liabilities whose terms have been amended shall be recognized as a new financial liability.

When recognition of financial liabilities is terminated in full or in part, the difference between the book
value of the financial liabilities terminated and the consideration paid (including transferred non-cash
assets or new financial liability) is recognized in profit or loss for the current period.

Where the Company repurchases part of its financial liabilities, the book value of such financial
liabilities will be allocated according to the relative fair value between the continued recognized part
and terminated part on the repurchase date. The difference between the book value of the financial
liabilities terminated and the consideration paid (including transferred non-cash assets or new financial
liability) is recognized in profit or loss for the current period.

                                                   105 / 225
Ningbo Tuopu Group Co., Ltd.                                                              Annual Report 2020

     5. Method of determining the fair values of financial assets and liabilities
The fair value of a financial instrument that is traded in an active market is determined at the quoted
price in the active market. The fair value of a financial instrument that is not traded in an active market
is determined by using a valuation technique. The Company uses the valuation technique when it is
applicable under current conditions and there are enough available data and other information to support
and the technique should maximize the use of relevant observable. It chooses the inputs which are
consistent with the asset or liability's characteristics considered by market participants in the transaction
of the relevant asset or liability and makes the maximum use of relevant observable inputs.
Unobservable inputs are used under the circumstance that the relevant observable inputs cannot be
obtained or not feasible.
     6. Test method and accounting treatment for impairment of financial assets
The Company estimates the expected credit loss on the financial assets at amortized cost and the
financial assets at fair value through other comprehensive income (debt instruments), and financial
guarantee contracts, either alone or in combination.

The Company calculates the probability-weighted amount of the current value of the difference between
the cash flows receivable under the Contract and the cash flows expected to receive, and recognizes the
expected credit loss, by taking into account all the reasonable and well-founded information, including
past events, current condition and forward-looking economic situation, and weighting the risk of
default.

If the credit risk of this financial instrument has been significantly increased upon initial recognition, the
Company measures its loss provision in accordance with the amount equivalent to the expected credit
loss of the financial instrument throughout the duration; if the credit risk of this financial instrument is
not significantly increased upon initial recognition, the Company will measure the loss provision of this
financial instrument by the amount of its expected credit loss in the twelve months to come. The
increased or reversed amount of the loss provision resulting therefrom is included in the current profit or
loss as the impairment loss or profit.

The Company recognizes the relative changes in the risk of default within the expected duration of
financial instruments, and assesses whether the credit risk of financial instruments has significantly
increased since the initial recognition by comparing the risk of default of financial instruments on the
balance sheet date with the risk of default on the initial recognition date. If the financial instrument
becomes overdue for more than 30 days, the Company believes that the credit risk of this financial
instrument has been significantly increased, unless there are concrete evidences that the credit risk of
this financial instrument has not been significantly increased upon initial recognition.

If the financial instrument carries low credit risk at the balance sheet date, the Company believes that
the credit risk of this financial instrument is not significantly increased upon initial recognition.

If there are objective evidences showing that a certain financial asset has been subject to credit
impairment, the Company will accrue impairment provision for this financial asset on the individual
asset basis.

The Company will always measure the loss provision for the accounts receivable and contract assets
generated by transactions regulated by “Accounting Standards for Enterprises No. 14 – Revenue”
(2017), whether they contain material financing compositions or not, by the amount of the expected
credit loss throughout the duration.
                                                  106 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

The Company will always measure the loss provision for the lease receivable by the amount of the
expected credit loss throughout the duration.

The Company shall write down the book balance of a financial asset directly if it no longer reasonably
expects that the contract cash flow of the financial asset can be recovered in whole or in part.



11. Notes receivable
Determination method and accounting treatment method of expected credit loss of notes
receivable
□Applicable √Non-applicable
12. Accounts receivable
Determination method and accounting treatment method of expected credit loss of accounts
receivable
□Applicable √Non-applicable
13. Receivables financing
□Applicable √Non-applicable
14. Other accounts receivable
Determination method and accounting treatment method of expected credit loss of other accounts
receivable
□Applicable √Non-applicable
15. Inventories
√Applicable □Non-applicable

      1. Category and cost of inventories
      Inventories are classified as raw materials, turnover materials, commodity stocks, products in
progress and materials commissioned for processing.
      Inventories are initially measured at cost. Inventory costs include procurement costs, processing
costs, and other expenses incurred to bring the inventory to its current location and condition.
      2. Determination of cost for delivered inventory
      Cost of inventories is determined using the weighted average method.
      3. Basis for the determination of net realizable value and different type of inventories
      On the balance sheet date, inventories shall be measured at the lower of cost and net realizable
value. A provision shall be made for inventory price drops if inventory costs exceed the net realizable
value. Net realizable value refers to the amount after deducting the estimated costs to be incurred at the
time of completion, the estimated selling expenses and taxes from the estimated sales price of
inventories during daily activities.
      Net realizable value of held-for-sale commodity stocks, such as finished goods, goods-in-stock, and
held-for-sale raw materials, during the normal course of production and operation, shall be determined
by their estimated sales less the related selling expenses and taxes; the net realizable value of material
inventories, which need to be processed, during the normal course of production and operation, shall be
determined by the amount after deducting the estimated cost of completion, estimated selling expenses
and relevant taxes from the estimated selling price of finished goods; the net realizable value of
inventories held for execution of sales contracts or labor contracts shall be calculated on the ground of
the contracted price. If an enterprise holds more inventories than the quantity stipulated in the sales
contract, the net realizable value of the exceeding part shall be calculated on the ground of general
selling price.
      The inventory falling price reserves withdrawn shall be reversed within the amount withdrawn, and
the reversed amount shall be included in current profit or loss, if the net realizable value of an inventory
is higher than its book value after the withdrawal due to the disappearance of the factors that influence
the writing-down of its value.
      4. Inventory system
      The perpetual inventory system is adopted.
                                                 107 / 225
Ningbo Tuopu Group Co., Ltd.                                                           Annual Report 2020

     5. Amortization of low-value consumables and packaging materials
         Low-value consumables are amortized using the immediate write-off method;
         Packaging materials are amortized using the immediate write-off method.

16. Contract Assets
  (1). Recognition methods and standards of contract assets
√Applicable □Non-applicable
      Accounting policies adopted from January 1, 2020
      The Company shall show the contract assets or contract liabilities in the balance sheet in
accordance with the relationship between the performance of the contract obligations and the Customer
payment. The Company shall list its right to receive consideration due to the transfer of goods or
services to the Customer (and such rights are subject to factors other than the passage of time) as
contractual assets. Contract assets and contract liabilities under the same contract shall be shown on a
net basis. The Company’s unconditional right (depending solely on the passage of time) to collect
consideration from the Customer shall be shown separately as a receivable.

  (2). Determination method and accounting treatment for the expected credit loss of contract
assets
√Applicable □Non-applicable
      Accounting policies adopted from January 1, 2020
See “10. 6. Testing methods and accounting treatment methods for impairment of financial assets”
for specified determination method and accounting treatment for the expected credit loss of
contract assets.


17. Held-for-sale assets
□Applicable √Non-applicable
18. Debt investment
  (1). Determination method and accounting treatment method of expected credit loss of debt
investment
□Applicable √Non-applicable

19. Other debt investment
  (1). Determination methods and accounting treatment methods of expected credit losses of other
debt investments
□Applicable √Non-applicable

20. Long-term receivables
(1) Determination method and accounting treatment method of long-term expected credit loss of
    receivables
□Applicable √Non-applicable

21. Long-term Equity Investment
√Applicable □Non-applicable
     1. Joint control or significant influence criterion
Joint control is the contractually agreed sharing of control of an arrangement, and exists only when
requiring the unanimous consent of the parties sharing control before making decisions about the
relevant activities of the arrangement. The Company together with the other joint venture parties can
jointly control over the investee and are entitled to the right of the net assets of the investee, as the
investee is joint venture of the Company.

                                                108 / 225
Ningbo Tuopu Group Co., Ltd.                                                              Annual Report 2020

Significant influence refers to the power to participate in making decisions on the financial and
operating policies of an enterprise, but not the power to control, or jointly control, the formulation of
such policies with other parties. Where the Company can exercise significant influence over the
investee, the investee is an associate of the Company.
      2. Determination of initial investment cost
      (1) Long-term equity investments formed through business combination of entities
      For long-term equity investment in a subsidiary generated due to business combinations involving
entities under common control, the share of the book value in the consolidated financial statements of
the ultimate controlling party on the date of combinations shall be taken as the initial investment cost of
the long-term equity investments. For difference between the initial cost of long-term equity investment
and the book value of the consideration paid, adjustments shall be made to the equity premiums in the
capital reserve. When the equity premiums in the capital reserve are not sufficient for write-down, the
retained earnings shall be adjusted. Where control over the investee under common control is available
due to additional investment or other reasons, for difference between the initial cost of long-term equity
investment recognized in accordance with the above principles, and the sum of the book value of
long-term equity investment prior to the combination and the book value of newly paid consideration for
the acquisition of further shares on the date of combination, adjustments shall be made to equity
premiums. When the equity premiums are not sufficient for write-down, the retained earnings shall be
written down.
      For long-term equity investment in a subsidiary generated due to business combinations involving
entities not under common control, the cost of the combination recognized on the date of combination
shall be taken as the initial investment cost of the long-term equity investments. In relation to imposing
control over the investee not under common control as a result of additional investment and other
reasons, the initial investment shall be the sum of the book value of the equity investment originally held
and the newly increased investment cost.
     (2) Long-term equity investments acquired by means other than business combination
      The initial cost of a long-term equity investment obtained by cash payment shall be the purchase
costs actually paid.
      The initial cost of investment of a long-term equity investment obtained by means of issuance of
equity securities shall be the fair value of the equity securities issued.
      3. Subsequent measurement and recognition of profit or loss
      (1) Long-term equity investment calculated by cost method
      Long-term equity investment in subsidiaries of the company is calculated by cost method, unless
the investment meets the conditions for holding for sale. except for the actual consideration paid for the
acquisition of investment or the declared but not yet distributed cash dividends or profits which are
included in the consideration, investment gains are recognized as the Company' shares of the cash
dividends or profits declared by the investee.
     (2) Long-term equity investment accounted for by equity method
      Long-term equity investments of associates and jointly controlled entities are calculated using
equity method. Where the initial investment cost exceeds the investment, the difference between the
share of the fair value of the investee’s identifiable net assets shall be enjoyed and no adjustment shall be
made to the initial investment cost of long-term equity investment; where the initial investment cost is
less than the investment, the difference between the share of the fair value of the investee’s identifiable
net assets shall be enjoyed and be included in current profit or loss, and adjustments shall be made to the
initial investment cost of long-term equity investment.
      The Company recognizes the investment income and other comprehensive income according to the
shares of net profit or loss and other comprehensive income realized by the investee which it shall be
entitled or shared respectively, and simultaneously makes adjustment to the book value of long-term
equity investments; the book value of long-term equity investment shall be reduced by attributable share
of the profit or cash dividends for distribution declared by the investee; in relation to other changes of
owner's equity except for net profits and losses, other comprehensive income and profit distributions of
the investee (hereinafter referred to as "changes in other owners' equity"), the book value of long-term
equity investments shall be adjusted and included in owner's equity.
      When recognizing the amount of proportion of net profit or loss, other comprehensive income and
other changes of owner’s equity, in the investee which it entitles, fair value of the identifiable assets of

                                                  109 / 225
Ningbo Tuopu Group Co., Ltd.                                                             Annual Report 2020

the investee at the time when the investment is obtained shall be used as basis, and adjustment shall be
made to the net profit, other comprehensive income and others of the investee in accordance with the
accounting policies and accounting period of the Company.
      The unrealized profit or loss resulting from internal transactions between the Company and its
associate or joint venture shall be offset in portion to its equity interests, based on which investment
income shall be recognized, except when the assets invested or sold constitute transaction. Any losses
resulting from transactions, which are attributable to impairment of assets, shall be fully recognized.
      The Company shall be liable for net loss incurred by the Company to the joint venture or associate,
and shall write it down to zero with the book value of the long-term equity investment and other
long-term equity which substantially constitute net investment in the joint venture or associate. Where a
joint venture or associate later realizes net profits, the Company shall resume recognition of its share of
income after the share of income has made up for the unrecognized share of loss.
      (3) Disposal of long-term equity investments
      For disposal of long-term equity investment, the difference between the book value and the
consideration actually received shall be included in the current profit or loss.
      For long-term equity investments accounted by partial equity disposal method, the remaining equity
is still accounted by the equity method. Other comprehensive income recognized by the original equity
method shall be carried forward in a corresponding proportion on the same basis as the direct disposal of
related assets or liabilities by the investee. Changes in the interests of the owners are carried forward to
the current profit and loss on a pro ratio basis.
      When losing joint control or significant influence over the investee due to disposal of equity
investment or other reasons, other comprehensive income of the original equity investment recognized
accounted by equity method shall be treated using the same basis as the direct disposal of related assets
or liabilities by the investee upon the termination of the use of equity methods. Other changes of owner’s
equity shall be converted to the current profit or loss upon the termination of use of equity methods.
      When losing the control over the investee due to partially disposal of equity investment and other
reasons, the remaining equities after disposal shall be accounted for under equity method in preparation
of individual financial statements provided that joint control or significant influence over the investee
can be imposed, and shall be adjusted as if such remaining equities has been accounted for under the
equity method since they are obtained. Other comprehensive income recognized prior to the acquisition
of controls over the investee shall be carried over proportionally using the same basis as the direct
disposal of related assets or liabilities by the investee. Other changes of owner’s equity due to the use of
equity method shall be carried over into the current profit or loss proportionally. Where the remaining
equities after disposal cannot impose joint control or significant influence over the investee, it shall be
recognized as financial asset, and the difference between fair value and the book value on the date of
losing control shall be included in the current profit or loss. All the other comprehensive incomes and
other changes of owners’ equity recognized prior to the acquisition of controls over the investee shall be
carried over.
      When losing control over a subsidiary in step-by-step disposal of its equity interests through
multiple transactions is recognized as a package deals, these transactions shall be in accounting treated
as loss of control of a subsidiary in disposal of equity interests. The differences between price on each
disposal prior to loss of control and the long-term equity investment book value of the disposed equity
shall be recognized as other comprehensive income in individual financial statements, and included in
the current profit or loss when the control is lost. Transactions not recognized as a package deal shall be
accounted for separately.

22. Investment property
 (1). In case of cost measurement:
Depreciation or amortization method
     Investment property refers to the real estate held to generate rental income or capital appreciation,
or both, including leased land use rights, land use rights held for transfer after appreciation, and leased
buildings (including buildings that are leased after completion of self-construction or development
activities and buildings in construction or development that are used for rental in the future).
     Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when
the relevant economic benefits are likely to flow in and the cost can be measured reliably; otherwise, it
shall be included in the current profit and loss when occurred.

                                                  110 / 225
Ningbo Tuopu Group Co., Ltd.                                                              Annual Report 2020

     The Company adopts the cost mode to measure the existing investment property. Other subsequent
expenditures shall be included in current profit or loss at the time of occurrence. Investment property
measured at cost - buildings held for leasing shall adopt the same depreciation policy for fixed assets of
the company, land use rights held for leasing shall adopt the same amortization policy for the intangible
assets.

23. Fixed Assets
  (1). Conditions for recognition of fixed assets
√Applicable □Non-applicable
      Fixed assets are tangible assets that are held for use in the production or supply of goods or services,
for rental to others, or for administrative purposes; and have a service life of more than one accounting
year. Fixed asset is recognized when it meets the following conditions:
    (1) It is probable that the economic benefits associated with the fixed asset will flow to the
enterprise;
    (2) Its cost can be reliably measured.
      Fixed assets are initially measured at cost (with the influence of expected disposal costs taken into
consideration).
      Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets when
the relevant economic benefits are likely to flow in and the cost can be measured reliably; the book value
of the replaced part is derecognized; other subsequent expenditures shall be included in current profit or
loss at the time of occurrence.

  (2). Methods for depreciation
√Applicable □Non-applicable
                       Depreciation         Useful Lives of                                   Annual
     Category                                                       Residual Ratio
                          Method              Depreciation                                  Depreciation
Housing and         Straight-line          20                     10%                    4.50%
building            method
Machinery and       Straight-line          5-10                   10%                    18.00%-9.00%
equipment           method
Means of            Straight-line          5                      10%                    18.00%
transportation      method
Office equipment Straight-line             5                      10%                    18.00%
and others          method
                                           Land use
                                           certificate
Buildings for        Straight-line         indicates the
                                                                  10%
commercial use       method                remaining years
                                           but no longer than
                                           40 years

  (3). Recognition basis, valuation and depreciation method of fixed assets under financing lease
□Applicable √Non-applicable

24. Projects under construction
√Applicable □Non-applicable
     Construction in progress is measured at the actual costs incurred. The actual cost includes
construction costs, installation costs, borrowing costs that meet the capitalization conditions, and other
necessary expenditures incurred before the construction in progress reaches its intended use status.
Construction in progress reaching predetermined serviceable conditions shall be converted to fixed
assets and begin counting for depreciation the following month.

25. Borrowing Costs
√Applicable □Non-applicable
                                                  111 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

      1. Criteria for recognition of capitalized borrowing costs
      For borrowing costs incurred by the Company that are directly attributable to the acquisition,
construction or production of assets qualified for capitalization, the costs will be capitalized and
included in the costs of the related assets. Other borrowing costs shall be recognized as expense in the
period in which they are incurred and included in profit or loss for the current period.
      Assets qualified for capitalization are assets (fixed assets, investment property, inventories, etc.)
that necessarily take a substantial period of time for acquisition, construction or production to get ready
for their intended use or sale.
      2. Capitalization period of borrowing costs
      The capitalization period shall refer to the period between the commencement and the cessation of
capitalization of borrowing costs, excluding the period in which capitalization of borrowing costs is
temporarily suspended.
      Capitalization of borrowing costs begins when the following three conditions are fully satisfied:
      (1) Expenditures for the assets (including cash paid, transferred non-currency assets or expenditure
for holding debt liability for the acquisition, construction or production of assets qualified for
capitalization) have been incurred;
    ((2) Borrowing costs have been incurred;
       (3) Acquisition, construction or production that are necessary to enable the asset reach its intended
usable or salable condition have commenced.
      Capitalization of borrowing costs shall be suspended during periods in which the qualifying asset
under acquisition and construction or production ready for the intended use or sale.
      3. Suspension of capitalization period
      Capitalization of borrowing costs shall be suspended during periods in which the acquisition,
construction or production of a qualifying asset is interrupted abnormally, when the interruption is for a
continuous period of more than 3 months; if the interruption is a necessary step for making the
qualifying asset under acquisition and construction or production ready for the intended use or sale, the
capitalization of the borrowing costs shall continue. The borrowing costs incurred during such period
shall be recognized as profits and losses of the current period. When the acquisition and construction or
production of the asset resumes, the capitalization of borrowing costs commences.
      4. Calculation of capitalization rate and amount of borrowing costs
      Specific borrowings for the acquisition, construction or production of assets qualified for
capitalization, borrowing costs of the specific borrowings actually incurred in the current period minus
the interest income earned on the unused borrowing loans as a deposit in the bank or as investment
income earned from temporary investment will be used to determine the amount of borrowing costs for
capitalization.
      General borrowings for the acquisition, construction or production of assets qualified for
capitalization, the to-be-capitalized amount of interests on the general borrowing shall be calculated and
determined by multiplying the weighted average asset disbursement of the part of the accumulative asset
disbursements minus the specifically borrowed loans by the capitalization rate of the general borrowing
used. The capitalization rate shall be calculated and determined according to the weighted average
interest rate of the general borrowing.
      During the period of capitalization, the exchange balance on the principals and interests of special
foreign currency borrowings shall be capitalized and shall be included in the cost of assets eligible for
capitalization. The exchange balance on the principals and interests of foreign currency borrowings other
than the special foreign currency borrowings shall be included in current profit or loss.

26. Biological Assets
□Applicable √Non-applicable
27. Oil and Gas Assets
□Applicable √Non-applicable
28. Right-of-use assets
□Applicable √Non-applicable




                                                 112 / 225
Ningbo Tuopu Group Co., Ltd.                                                               Annual Report 2020

29. Intangible Assets
  (1). Valuation method, useful life, impairment test
√Applicable □Non-applicable
      1. Intangible assets are initially measured at cost upon acquisition
    (1) Intangible assets are initially measured at cost upon acquisition
      The costs of an externally purchased intangible asset include the purchase price, relevant taxes and
expenses paid, and other expenditures directly attributable to putting the asset into condition for its
intended use.
      (2) Subsequent measurement
      The service life of intangible assets shall be analyzed and judged upon acquisition.
      As for intangible assets with a finite service life, they are amortized using the straight-line method
over the term in which economic benefits are brought to the firm; If the term in which economic benefits
are brought to the firm by an intangible asset cannot be estimated, the intangible asset shall be taken as
an intangible asset with indefinite service life, and shall not be amortized.
      2. Estimated useful lives for the intangible assets with finite service life
           Item                Estimated useful lives    Amortization Method                  Basis
Land use rights            38-50 years                  Straight-line method       Land use certificate
Software                   2-10 years                   Straight-line method       Expected benefited period
Emission rights             5 years              Straight-line method       Emission permits
     3. basis for the judgment of intangible assets with uncertain service life and the procedure for
reviewing their service life
     As of December 31st, 2020, the Company has no intangible assets with uncertain useful life.
      4. Specific     criteria for the division of research phase and development phase
      The expenses for internal research and development projects of the Company are divided into
expenses in the research phase and expenses in the development phase.
      Research phase: Scheduled innovative investigations and research activities to obtain and
understand scientific or technological knowledge.
      Development phase: Apply the research outcomes or other knowledge to a plan or design prior to a
commercial production or use in order to produce new or essentially-improved materials, devices,
products, etc.
      5. Specific     condition for capitalizing expenditure during the development phase
      Expenses in the research phase are recorded into the profits and losses for the current period when
they occur. Expenditure during the development phase that simultaneously satisfies the following
conditions shall be recognized as intangible assets. Otherwise shall be included in current profit or loss:
       (1) It is technically feasible to complete such intangible asset so that it will    be available for use
or for sale;
       (2) There is intention to complete the intangible asset for use or sale;
       (3) The intangible asset can produce economic benefits, including there is evidence that the
products produced using the intangible asset has a market or the intangible asset itself has a market; if
the intangible asset is for internal use, there is evidence that there exists usage for the intangible asset;
       (4) There is sufficient support in terms of technology, financial resources and other resources in
order to complete the development of the intangible asset, and there is capability to use or sell the
intangible asset;
       (5) The expenses attributable to the development stage of the intangible asset can be measured
reliably.
      The R&D expenditures incurred shall be included in current profit or loss if it is impossible to
distinguish expenditure during the research phase and expenditure during the development phase.

  (2). Accounting policies for internal research and development expenditures
□Applicable √Non-applicable



                                                    113 / 225
Ningbo Tuopu Group Co., Ltd.                                                                 Annual Report 2020

30. Impairment of long-term assets
√Applicable □Non-applicable
      Long-term assets, such as long-term equity investment, investment properties, fixed assets and
construction in progress that measured at cost, and intangible assets and oil and gas assets with limited
service life, are tested for impairment if there is any indication that an asset may be impaired on the
balance sheet date. If the result of the impairment test indicates that the recoverable amount of the asset
is less than its book value, a provision for impairment and an impairment loss are recognized for the
amount by which the asset's book value exceeds its recoverable amount. The recoverable amount is the
higher of an asset's fair value less costs to sell and the present value of the future cash flows expected to
be derived from the asset. Provision for asset impairment is determined and recognized on the individual
asset basis. If it is not possible to estimate the recoverable amount of an individual asset, the recoverable
amount of a group of assets to which the asset belongs to is determined. A group of assets is the smallest
group of assets that is able to generate cash inflows independently.
      Goodwill formed due to business combination, intangible assets with uncertain service life and
intangible assets that have not yet reached serviceable conditions, shall be tested for impairment at least
at the end of each year, regardless of whether there is any indication of impairment.
      When the Company carry out impairment test to goodwill, the Company shall, as of the purchasing
day, allocate on a reasonable basis the book value of the goodwill formed by merger of enterprises to the
relevant asset groups, or if there is a difficulty in allocation, to allocate it to the sets of asset groups. The
relevant asset group or combination of asset groups is the asset group or combination of asset groups
that can benefit from the synergies of business combination.
      For the purpose of impairment test on the relevant asset groups or the sets of asset groups
containing goodwill, if any evidence shows that the impairment of asset groups or sets of asset groups
related to goodwill is possible, an impairment test will be made first on the asset groups or sets of asset
groups not containing goodwill, thus calculating the recoverable amount and comparing it with the
relevant book value so as to recognize the corresponding impairment loss. Asset group or combination
of group assets containing goodwill are tested for impairment and the book value and recoverable
amount shall be compared. If the recoverable amount is less than the book value, the amount of
impairment loss shall be deducted and apportioned to the book value of goodwill in asset group or
combination of asset groups, before deducting to the book value of all other assets proportionally based
on the proportion of the book value of all assets other than goodwill in the asset group or combination of
asset groups. Once the above asset impairment loss is recognized, it will not be reversed in the
subsequent accounting periods.

31. Long-term prepaid expenses
√Applicable □Non-applicable
     Long-term prepaid expenses are expenses which have occurred but will benefit over 1 year and
shall be amortized over the current period and subsequent periods.
                  Item                            Expected useful live                      Basis

Renovation cost                       5 years                               Expected benefited period

Software maintenance fee              5 years                               Expected benefited period

Others                                3-5 years                             Expected benefited period



32. Contract liabilities
  (1).Recognition method of contract liabilities
√Applicable □Non-applicable
      Accounting policies adopted from January 1, 2020
      The Company shall show the contract assets or contract liabilities in the balance sheet in
accordance with the relationship between the performance of the contract obligations and the Customer
payment. The Company’s obligation to transfer goods or provide services to customers for which


                                                       114 / 225
Ningbo Tuopu Group Co., Ltd.                                                              Annual Report 2020

consideration has been received or receivable are presented as contractual liabilities. Contract assets and
contract liabilities under the same contract shall be shown on a net basis.
33. Employee remuneration
  (1). Accountant arrangement method of short-term remuneration
√Applicable □Non-applicable
      During the accounting period when the staff provides service, the Company will recognize the
short-term remuneration actually incurred as liabilities, and the liabilities would be charged into current
profits and loss or costs of assets.
      The Company will pay social insurance and housing funds, and will make provision of trade union
funds and staff education costs in accordance with the requirements. During the accounting period when
the staff provides service, the Company will determine the relevant amount of employee benefits in
accordance with the required provision basis and provision ratios.
      The expenses on employee benefit incurred by the Company shall be included in the current profit
or loss or related asset cost based on the actual amount when actually incurred, and the non-monetary
benefit shall be measured at its fair value.

  (2).Accounting treatment method of retirement benefit plan
√Applicable □Non-applicable
    (1) Defined contribution plan
      The Company will pay basic pension insurance and unemployment insurance in accordance with
the relevant provisions of the local government for the staff. During the accounting period when the staff
provides service, the Company will calculate the amount payable in accordance with the local stipulated
basis and proportions which will be recognized as liabilities, and the liabilities would be charged into
current profits and loss or costs of assets.
      (2) Defined benefit plan
      The welfare responsibilities generated from defined benefit scheme based on the formula
determined by projected unit credit method would be vested to the service period of the staff and
charged into current profits and loss or costs of assets.
      The deficit or surplus formed by the present value of obligations of the defined benefit plan minus
the fair value of the assets of the defined benefit plan is recognized as a net liability or net asset of the
defined benefit plan. If there is a surplus in the defined benefit plan, the Company shall use the lower of
the surplus of the defined benefit plan and the asset ceiling to measure the net assets of the defined
benefit plan.
      All defined benefit plan obligations, including obligations expected to be paid within twelve
months after the end of the annual reporting period in which employees render services, are discounted
at the market rate of return in respect of the national debts matching the term and currency of the defined
benefit plan, or in respect of high-quality corporate bonds available on the active market on the balance
sheet date.
      The service cost incurred by the defined benefit plan and the net interest of the net liabilities or net
assets of the defined benefit plan are included in the current profit and loss or the related asset cost; the
changes in the net liabilities or net assets of the defined benefit plan are recorded in other comprehensive
income, and it will not be reversed to profit or loss in the subsequent accounting period. When the
original defined benefit plan is terminated, all that originally included in other comprehensive income
will be carried forward to undistributed profit within the scope of equity.
      At the settlement of the defined benefit plan, the gain or loss from the settlement is recognized by
the difference between the present value of the obligation of the defined benefit plan and the settlement
price determined on the settlement date.

  (3).Accountant arrangement method of termination benefits
√Applicable □Non-applicable
Where the Company pays termination benefit to employees, the liabilities of employee remuneration
generated by termination benefit shall be recognized at the earlier of the following date and included in
the current profit or loss: when the company cannot unilaterally withdraw termination benefit provided
by labor relationship termination plan or layoff proposal; when the Company recognizes costs or
expenses related to a restructuring of the payment of termination benefits.

                                                  115 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

  (4).Accountant arrangement method of other long-term employee benefits
□Applicable √Non-applicable

34. Lease liabilities
□Applicable √Non-applicable
35. Estimated liabilities
□Applicable √Non-applicable
36. Share-based payment
□Applicable √Non-applicable
37. Preference shares, perpetual bonds and other financial instruments
□Applicable √Non-applicable
38. Revenue
  (1). Accounting policies for revenue recognition and measurement
√Applicable □Non-applicable
      The Company has fulfilled its contractual obligation to recognize income when the Customer
obtains control over the relevant goods or services. Obtaining control over related goods or services
means to be able to dominate the use of the goods or services and obtain virtually all economic benefits
from it.
      Where the Contract contains the performance of two or more obligations, the Company shall, on
the commencement date of the Contract, apportion the transaction price to each individual performance
obligation on the basis of the relative proportion of the individual selling price of the goods or service
committed by each individual performance obligation. The Company shall measure its income on the
basis of the transaction price apportioned to each individual performance obligation.
      The transaction price refers to the amount of consideration the Company is expected to be entitled
to receive for the transfer of goods or services to the Customer, excluding payments received on behalf
of third parties and the amounts expected to be refunded to the Customer. The Company determines the
transaction price in accordance with Contract terms and by taking into consideration its past practices. In
determining the transaction price, it takes into consideration the impact of variable consideration,
material financing elements in the Contract, non-cash consideration, consideration payable to customers
and other factors. The Company determines the transaction price that includes the variable consideration
at an amount not exceeding the amount of accumulated recognized income which is not likely to be
materially reversed when the relevant uncertainty is eliminated. Where there is material financing
components in the Contract, the Company shall determine the transaction price on the basis of the
amount payable based on the assumption that the Customer pays in cash upon obtaining control over the
goods or services, and shall amortize the difference between the transaction price and the Contract
consideration by effective interest method during the Contract period.
      It shall be deemed as fulfilling performance obligation within a certain period of time if one of the
following conditions is satisfied. Otherwise, it shall be deemed as fulfilling performance obligation at a
certain point in time:
      The Customer obtains and consumes the economic benefits arising from the Company's
performance of obligations at the same time of that the Company perform its obligations.
 The Customer can control the goods under construction during the process that the Company perform
its obligations.
      The product produced by the Company during the performance of its obligations is irreplaceable in
use, and the Company shall be entitled to receive payment for the accumulated part of the performance
completed so far during the whole Contract period.
      For obligations performed within a certain period of time, the Company shall recognize income on
the basis of the performance progress during that period, except when the performance progress cannot
be reasonably determined. The Company will adopt output method or input method to determine the
performance progress by taking the nature of the goods or services into consideration. Where the
performance progress cannot be reasonably determined and the costs incurred are expected to be
compensated, the Company shall recognize income on the basis of the costs incurred until the
performance progress can be reasonably determined.

                                                 116 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

      For obligations performed at a certain point of time, the Company recognizes income at the point
when the Customer obtain control over relevant goods or services. The Company takes the following
indications into consideration when determining whether the Customer has obtained control over
relevant goods or services:
      The Company is entitled to collect payment in respect of the goods or services immediately, i.e. the
Customer is obliged to make payment in respect of the goods or services immediately
      The Company has transferred legal ownership of the goods to the Customer, i.e. the Customer has
legal ownership of the goods.
      The Company has physically transferred the goods to the Customer, i.e. the Customer has
physically possessed the goods.
      The Company has transferred the principal risks and rewards in the ownership of the goods to the
Customer, i.e. the Customer has obtained the principal risks and rewards in the ownership of the goods.
      The Customer has received the goods or services, etc.
      Accounting policy adopted prior to January 01, 2020
      1. General principles for the recognition of revenue from commodity sales
      (1)Revenue from the sale of goods is recognized when all the significant risks and rewards of
ownership of the goods have been transferred to the buyer;
      (2)The Company does not retain either continuing managerial involvement to the degree usually
associated with ownership or effective control over the sold goods;
      (3)The amount of revenue can be reliably measured;
      (4)It is probable that the economic benefits associated will flow to the Company;
      (5)The relevant amount of costs incurred or to be incurred can be measured reliably.
      2. Specific principles
        (1) Domestic company
      1) Domestic sales
For sales to domestic carmakers, the goods received by customer and the notice of issuing an invoice is
treated as the time point of revenue recognition. For domestic after-sales market sales, the time of
delivery is treated as the time point of revenue recognition.
      2) Overseas
      For general trade sales, customs declaration and export are treated as the revenue confirmation time
point. For the sales based on DDU and DDP as contained in the sales contract, the time of arrival at the
destination and the acknowledgment of receipt by customer is treated as the time point of revenue
recognition.
         (2) Tuopu North American Ltd
      The time of shipment and the acknowledgment of receipt by customer is treated as the time point of
revenue recognition.

  (2). Different business models adopted for similar businesses leading to differences in revenue
recognition accounting policies
□Applicable√ Non-applicable
39. Contract costs
√Applicable □Non-applicable
      Accounting policies effective from January 1, 2020
      Contract costs include contract performance costs and contract acquisition costs.
      The Company recognizes the costs incurred for performing the contract and that not fall within the
scope of inventories, fixed assets or intangible assets as stipulated by related standards as an asset when
the following conditions are met:
       The cost is directly related to a current or anticipated contract.
       The cost increases the Company's future resources to perform obligations.
       The cost is expected to be recovered
      The Company regards the incremental cost incurred to acquire the contract and that are expected to
be recovered as contract acquisition costs, and recognizes them as an asset.
      Assets related to contract costs shall be amortized using the same basis as income recognition of
goods or services related to the asset. However, the Company shall include the amount in current profit
or loss if the amortization period of the contract acquisition cost is less than one year.

                                                 117 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

      The Company shall draw an impairment provision for the excess part when the book value of an
asset related to the contract cost is higher than the difference between the following two items, and
recognize it as an impairment loss of the asset:
      1. The remaining consideration expected to be obtained due to the transfer of goods or services
related to the asset;
      2. Estimated costs to be incurred for the transfer of goods or services related to the asset.
      The Company shall reverse the impairment provision withdrawn and include it in current profit or
loss if the impairment factors of the previous period change and cause the aforementioned difference
higher than the book value of the asset. However, the book value of the asset after reverse shall not
exceed the book value of the asset on the reverse date under the assumption that no provision for the
impairment is withdrawn.

40. Government subsidies
√Applicable □Non-applicable
     1. Type
     Government grants are monetary assets and non-monetary assets acquired by the Company from
the government free of charge. Government grants are classified into government grants related to assets
and government grants related to revenue.
     Government grants related to assets refer to government grants acquired by the Company for the
purpose of purchasing or constructing or otherwise forming long-term assets. Government grants related
to revenue refer to the government grants other than those related to assets.
     The company classifies government grants into asset-related grants in accordance with the
following criteria:
     If the government document specifies the specific intended project of subsidies, it will be classified
according to the relative ratio of the amount paid of the asset and the amount paid included in the
expenses as part of the specific project, and the classification ratio needs to be checked and if necessary,
changed on each balance sheet date.
     The company classifies government grants into revenue-related grants in accordance with the
following criteria:
     The government document only makes a general statement on the use and no item is specified, as
revenue-related government subsidies.
     2. Confirmation of time point
     Government subsidies are confirmed when the company can meet its attached conditions and can
be received.
     3. Accounting treatment
     Government grants related to assets shall write off the book value of relevant assets or be
recognized as deferred income. When recognized as deferred income, the government grant related to
assets will be period by period credited to the profits and losses of the current period in a reasonable and
systematic manner within the service life of relevant assets (those related to the Company's daily
activities shall be recognized as other income; those unrelated to the Company's daily activities shall be
recognized as non-operating income).
     The revenue-related government grants shall be recognized as deferred income if they are used to
compensate relevant expenses or losses in subsequent periods, and they shall be included in profit and
loss of the current period (those related to Company's routine activities shall be included in other income;
those unrelated to the Company's routine activities shall be included in non-operating income) or used to
offset relevant expenses or losses during the recognition of related expenses or losses; the grants used to
compensate related expenses or losses incurred shall be included in profit and loss of the current period
(those related to Company's routine activities shall be included in other income; those unrelated to the
Company's routine activities shall be included in non-operating income) or used to offset relevant
expenses or losses.

41. Deferred income tax assets/deferred income tax liabilities

√Applicable □Non-applicable

    Income tax includes current income tax and deferred income tax. The Company will include current
income tax and deferred income tax in the current profit or loss, except for income tax arising from
                                                 118 / 225
Ningbo Tuopu Group Co., Ltd.                                                               Annual Report 2020

business combination and transaction or event directly included in the owners’ equity (including other
comprehensive income).
      Deferred income tax assets and deferred income tax liabilities shall be calculated and recognized on
the basis of the difference (temporary difference) between the tax basis of the assets and liabilities and
their book value.
      Deferred income tax assets are recognized to the extent that it is probable that future taxable profits
will be available against which deductible temporary differences can be utilized. For deductible losses
and tax credits that can be reversed in the future period, deferred tax assets shall be recognized to the
extent that it is probable that taxable profit will be available in the future to offset the deductible losses
and tax credits.
      Save as the exceptions, deferred income tax liabilities shall be recognized for the taxable temporary
difference.
      Special circumstances in which deferred income tax assets or deferred income tax liabilities are not
recognized include:
        Initial recognition of goodwill;
        Transaction or event that is not a business combination and would not affect accounting profit and
taxable income (or deductible loss) at the time of occurrence.
For taxable temporary differences related to investments in subsidiaries, associates and joint ventures,
deferred income tax liability is recognized, unless the Company can control the timing of reversal of
such temporary differences and such temporary differences are not likely to be reversed in the
foreseeable future. For deductible temporary differences related to the investments of subsidiaries,
associates and joint ventures, deferred tax asset is recognized when the temporary differences are likely
to be reversed in the foreseeable future and the taxable income amount used to offset the deductible
temporary differences is likely to be obtained in the future.
      On the balance sheet date, the Company reviews the book value of the deferred income tax assets.
The book value of the deferred income tax asset will be written down if sufficient taxable income is not
likely to be obtained to offset the benefit of the deferred income tax asset in the future period. The
write-down amount will be reversed when sufficient taxable income is likely to be obtained.
      After granted the legal rights of net settlement and with the intention to use net settlement or obtain
assets and repay debt at the same time, the net amount after offsetting its current income tax assets and
current income tax liabilities shall be recorded.
      On the balance sheet date, deferred income tax assets and deferred income tax liabilities shall be, as
stipulated by tax law, measured by the applicable tax rate of the period of expected recovery of the
relevant assets or settlement of the relevant liabilities.
        The taxpayer has the legal right to settle the current income tax assets and current income tax
liabilities on a net basis;
        Deferred income tax assets and deferred tax liabilities are related to the income tax to be paid by
the same entity liable to pay tax to the same tax collection and management authority or related to
different entities liable to pay tax. The relevant entity liable to pay tax is intended to apply net settlement
of current income tax assets and liabilities or, at the same time, obtain assets and repay debt in every
future period that deferred income tax assets and liabilities with importance would be reversed.

42. Lease
(1). Accounting of operating lease
√Applicable □Non-applicable
      (1) As the lessee of operating leases, rental payments under operating leases are recognized as costs
or expenses on a straight line basis over the lease term (including rent free periods). Initial direct costs
that are attributable to an operating lease incurred by the Company are charged to current profit and loss.
      When the lesser bears the lease related expenses which should be undertaken by the Company, the
Company shall deduct this part of expense from the rent and amortize the net amount over the lease
term.
      (2) Leasing charges received by the Company for the assets leased out shall be amortized in a
straight-line basis over the lease term without deducting the rent-free periods, and recognized as leasing
income. The initial direct fee related to the leasing transactions paid by the Company shall be charged to
current expenses; if the mount is significant, it shall be capitalized and charged to current income evenly
on the same basis as the leasing income is recognized over the lease term. When the Company bears the
                                                   119 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

lease related expenses which should be undertaken by the lessee, the Company shall deduct this part of
expense from the rent income, and amortize the net amount over the lease term.

(2). Accounting treatment method of financing lease
□Applicable √Non-applicable
(3). Determination method and accounting treatment method of lease under the new lease
standard
□Applicable √Non-applicable
43. Other significant accounting policies and accounting estimates
□Applicable √Non-applicable
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√Applicable □Non-applicable
                                                                           Remark (Name and amount of
  Content and reason of changes
                                           Approval procedure              the items subject to significant
      in accounting policies
                                                                                        impact)
The Ministry of Finance issued      "Accounting Standards for            The Company will implement
the "Accounting Standards for       Business Enterprises No.             the updated version of revenue
Business Enterprises No.            14-Revenue (2017 Revision)"          standards from January 1, 2020,
14-Revenue (2017 Revision)"         (Cai Kuai [2017] No. 22)             and       adjust   the     received
(Cai Kuai [2017] No. 22) on                                              prepayments          at       RMB
July 5, 2017, the Company will                                           24,717,751.02 as contained in
implement the updated version                                            the consolidated balance sheet at
of revenue standards from                                                the beginning of the year to
January 1, 2020.                                                         contract liabilities at RMB
                                                                         21,874,115.95 and other current
                                                                         liabilities at RMB 2,843,635.07,
                                                                         respectively; adjust the received
                                                                         prepayments          at       RMB
                                                                         10,850,973.20 as contained in
                                                                         the balance sheet of the parent
                                                                         company at the beginning of the
                                                                         year to contract liabilities at
                                                                         RMB 9,602,631.15 and other
                                                                         current liabilities at RMB
                                                                         1,248,342.05, respectively.
Other Notes
      In 2017, the Ministry of Finance revised the "Accounting Standards for Business Enterprises No.
14-Revenue". The revised standard provides that the amount of retained earnings and other relevant
items as contained in the financial statements at the beginning of the year should be adjusted given the
cumulative impact for the initial implementation of the standard, and no adjustment should be
implemented to comparable period information.
      The Company will implement the updated version of revenue standard from January 1, 2020. Under
the updated standard, the Company only adjusts the retained earnings at the beginning of 2020 and the
amount of other related items in the financial statements for the cumulative impact of contracts that have
not been completed on the date of initial implementation, and no adjustment should be implemented to
comparable period statements.

(2). Changes in significant accounting estimates
□Applicable √Non-applicable
(3). Since 2020, the company first implemented the revised revenue standards, the new rent
standards, and adjusted related items of the financial statements at the beginning of the year
√Applicable □Non-applicable
                                     Consolidated Balance Sheet
                                                 120 / 225
Ningbo Tuopu Group Co., Ltd.                                                    Annual Report 2020

                                                                   Unit: Yuan     Currency: RMB
                                     December 31st,
               Item                                      January 1st, 2020      Adjusted amount
                                         2019
Current assets:
   Cash and Bank Balances              822,457,801.96       822,457,801.96
Deposit Reservation for Balance
   Loans to Banks and Other
Financial Institutions
   Trading Financial Assets            780,000,000.00       780,000,000.00
   Derivative Financial Assets
   Notes receivable                     440,734,534.85      440,734,534.85
   Accounts receivable                1,357,020,447.94    1,357,020,447.94
   Receivables Financing                587,351,790.19      587,351,790.19
   Prepayments                           35,367,527.97       35,367,527.97
   Premium Receivable
   Reinsurance Accounts
Receivable
   Reinsurance Contract Reserves
Receivable
   Other Receivables                     13,981,969.00       13,981,969.00
   Including: interest receivable
          Dividends Receivable
   Buying Back the Sale of
Financial Assets
   Inventory                          1,239,786,152.44    1,239,786,152.44
   Contract Assets
   Holding for-sale assets
   Non-current Assets Due within
1 year
   Other Current Assets                 156,215,913.11      156,215,913.11
      Subtotal of Current Assets      5,432,916,137.46    5,432,916,137.46
Non-current Assets:
   Granting of loans and advances
   Investment in Creditor's Rights
   Investment in Other Creditor's
Rights
   Long-term Receivables
   Long-term Equity Investment         125,215,950.32       125,215,950.32
   Investment in Other Equity
   Other Non-current Financial
Assets
   Investment Property                   30,960,256.31       30,960,256.31
   Fixed Assets                       3,941,027,638.25    3,941,027,638.25
   Projects under Construction          611,737,763.71      611,737,763.71
   Productive Biological Assets
   Oil and gas assets
   Right-of-use Assets
   Intangible Assets                   605,767,648.14       605,767,648.14
   Development Expenditure
   Goodwill                            253,310,074.24       253,310,074.24
   Long-term unamortized                58,311,175.02        58,311,175.02
expenses
   Deferred Income Tax Assets            77,212,058.81       77,212,058.81
   Other Non-current Assets              97,855,571.08       97,855,571.08
      Subtotal of Non-current         5,801,398,135.88    5,801,398,135.88

                                           121 / 225
Ningbo Tuopu Group Co., Ltd.                                                  Annual Report 2020

Assets
         Total Assets                 11,234,314,273.34   11,234,314,273.34
Current Liabilities:
   Short-term loan                       500,318,635.16     500,318,635.16
   Borrowings from the Central
Bank
   Borrowings from Banks and
Other Financial Institutions
   Transactional financial
liabilities
   Derivative Financial Liabilities
   Notes Payable                       1,184,846,663.26    1,184,846,663.26
   Accounts Payable                    1,458,517,214.69    1,458,517,214.69
   Received Prepayments                   24,717,751.02                          -24,717,751.02
   Contract liabilities                                      21,874,115.95        21,874,115.95
   Financial Assets Sold for
Repurchase
   Deposit Taking and Interbank
Deposit
   Receiving from Vicariously
Traded Securities
   Receiving from Vicariously
Sold Securities
   Payroll payable                       118,780,048.70     118,780,048.70
   Tax Payable                            68,557,861.25      68,557,861.25
   Other Payables                          8,181,531.69       8,181,531.69
   Including: interest payable
            Dividends Payable
   Service Charge and Commission
Payable
   Reinsurance Accounts Payable
   Holding for-sale liabilities
   Non-current Liabilities Due            62,837,810.76      62,837,810.76
within 1 Year
   Other Current Liabilities                                   2,843,635.07        2,843,635.07
      Subtotal of Current Liabilities  3,426,757,516.53    3,426,757,516.53
Non-current Liabilities:
   Insurance Contract Reserves
   Long-term loan                        182,500,000.00     182,500,000.00
   Bonds Payable
   Including: Preferred Stocks
            Perpetual Bonds
   Lease Liabilities
   Long-term Payables
   Long-term payroll payable
   Expected Liabilities
   Deferred Income                       172,340,145.15     172,340,145.15
   Deferred Income Tax Liabilities        48,067,326.66      48,067,326.66
   Other Non-current Liabilities
      Subtotal of Non-current            402,907,471.81     402,907,471.81
Liabilities
         Total Liabilities             3,829,664,988.34    3,829,664,988.34
Owners’ Equity(or Shareholders' Equity):
   Paid-in Capital (or Share           1,054,987,749.00    1,054,987,749.00
Capital)

                                            122 / 225
Ningbo Tuopu Group Co., Ltd.                                                         Annual Report 2020

   Other Equity Instruments
   Including: Preferred Stocks
          Perpetual Bonds
   Capital Reserves                      3,409,439,863.07      3,409,439,863.07
   Less: Treasury Share
   Other Comprehensive Incomes              -4,380,983.53          -4,380,983.53
   Special Reserves
   Surplus Reserves                        412,680,608.91        412,680,608.91
   General Risk Reserves
   Undistributed Profits                 2,502,765,125.43      2,502,765,125.43
   Total Owners’ Equity
(Shareholders' Equity) Attributable      7,375,492,362.88      7,375,492,362.88
to the Parent Company
   Minority Shareholders' Equity            29,156,922.12         29,156,922.12
     Total Owners’ Equity(or
                                         7,404,649,285.00      7,404,649,285.00
Shareholders' Equity)
        Total Liabilities and Total
Owners’ Equity(or Shareholders'        11,234,314,273.34     11,234,314,273.34
Equity)

Notes to adjustment of all items:
√Applicable □Non-applicable
     The Company will implement the updated version of revenue standards from January 1, 2020, and
adjust the received prepayments at RMB 24,717,751.02 as contained in the consolidated balance sheet at
the beginning of the year to contract liabilities at RMB 21,874,115.95 and other current liabilities at
RMB 2,843,635.07, respectively;

                                 Balance Sheet of the Parent Company
                                                                      Unit: Yuan Currency: RMB
               Item                   December 31st, 2019     January 1st,2020  Adjusted amount
Current assets:
  Cash and Bank Balances                    381,471,584.55         381,471,584.55
  Trading Financial Assets                  780,000,000.00         780,000,000.00
  Derivative Financial Assets
  Notes receivable
  Accounts receivable                      1,251,021,599.94      1,251,021,599.94
  Receivables Financing
  Prepayments                                 15,387,320.53         15,387,320.53
  Other Receivables                           49,355,223.60         49,355,223.60
  Including: interest receivable
          Dividends Receivable
  Inventory                                 569,539,150.24         569,539,150.24
  Contract Assets
  Holding-for-sale assets
  Non-current Assets Due within
1 Year
  Other Current Assets
    Subtotal of Current Assets             3,046,774,878.86      3,046,774,878.86
Non-current Assets:
  Investment in Creditor's Rights
  Investment in Other Creditor's
Rights
  Long-term Receivables
  Long-term Equity Investment              3,437,103,706.24      3,437,103,706.24
  Investment in Other Equity

                                               123 / 225
Ningbo Tuopu Group Co., Ltd.                                                Annual Report 2020

Instruments
   Other Non-current Financial
Assets
   Investment Property                   30,960,256.31      30,960,256.31
   Fixed Assets                       2,163,880,764.04   2,163,880,764.04
   Projects under Construction          255,670,050.01     255,670,050.01
   Productive Biological Assets
   Oil and gas assets
   Right-of-use Assets
   Intangible Assets                   263,906,427.20     263,906,427.20
   Development Expenditure
   Goodwill
   Long-term unamortized                24,317,606.15      24,317,606.15
expenses
   Deferred Income Tax Assets            25,299,141.67      25,299,141.67
   Other Non-current Assets              28,726,157.69      28,726,157.69
      Subtotal of Non-current         6,229,864,109.31   6,229,864,109.31
Assets
         Total Assets                 9,276,638,988.17   9,276,638,988.17
Current Liabilities:
   Short-term loan                     500,318,635.16     500,318,635.16
   Transactional financial
liabilities
   Derivative Financial Liabilities
   Notes Payable
   Accounts Payable                    886,276,735.51     886,276,735.51
   Received Prepayments                 10,850,973.20                          -10,850,973.20
Contract liabilities                                        9,602,631.15         9,602,631.15
   Payroll payable                      63,291,315.71      63,291,315.71
   Tax Payable                          43,013,189.57      43,013,189.57
   Other Payables                       31,414,682.50      31,414,682.50
   Including: interest payable
            Dividends Payable
   Holding for-sale liabilities
   Non-current Liabilities Due          62,837,810.76      62,837,810.76
within 1 Year
   Other Current Liabilities                                 1,248,342.05        1,248,342.05
      Subtotal of Current                                1,598,003,342.41
                                      1,598,003,342.41
Liabilities
Non-current Liabilities:
   Long-term loan                      182,500,000.00     182,500,000.00
   Bonds Payable
   Including: Preferred Stocks
            Perpetual Bonds
   Lease Liabilities
   Long-term Payables
   Long-term payroll payable
   Expected Liabilities
   Deferred Income                      53,152,160.61      53,152,160.61
   Deferred Income Tax                  26,087,040.58      26,087,040.58
Liabilities
   Other Non-current Liabilities
      Subtotal of Non-current          261,739,201.19     261,739,201.19
Liabilities
         Total Liabilities            1,859,742,543.60   1,859,742,543.60

                                          124 / 225
Ningbo Tuopu Group Co., Ltd.                                                           Annual Report 2020

Owners’ Equity(or Shareholders' Equity):
  Paid-in Capital (or Share            1,054,987,749.00             1,054,987,749.00
Capital)
  Other Equity Instruments
  Including: Preferred Stocks
         Perpetual Bonds
  Capital Reserves                     3,409,439,863.07             3,409,439,863.07
  Less: Treasury Share
  Other Comprehensive Incomes
  Special Reserves
  Surplus Reserves                        412,680,608.91              412,680,608.91
  Undistributed Profits                2,539,788,223.59             2,539,788,223.59
    Total Owners’ Equity(or
                                             7,416,896,444.57       7,416,896,444.57
Shareholders' Equity)
        Total Liabilities and Total
Owners’ Equity(or Shareholders'             9,276,638,988.17       9,276,638,988.17
Equity)

Notes to adjustment of all items:
√Applicable □Non-applicable
      The Company will implement the updated version of revenue standards from January 1, 2020, and
adjust the received prepayments at RMB 10,850,973.20 as contained in the balance sheet of the parent
company at the beginning of the year to contract liabilities at RMB 9,602,631.15 and other current
liabilities at RMB 1,248,342.05, respectively.
(4). Notes to compared data before and after the adjustment according to the first implementation
of the new revenue recognition standard and the new lease accounting standard in 2020
□Applicable √Non-applicable
45. Others
□Applicable √Non-applicable
VI. Taxes
1.      Major categories of taxes and tax rates
Main categories of taxes and tax rates
√Applicable □Non-applicable
                                            Taxation basis                          Tax rate
          Tax Type
VAT                               According to the provisions of the     13%, 9%, 6% (Note 1)
                                  tax law, the sales tax shall be
                                  calculated on the basis of the
                                  income by selling goods and
                                  taxable services. After deducting
                                  the input tax that is allowed to be
                                  deducted from the sales tax in the
                                  current period, the difference shall
                                  be the value added tax
Consumption tax
Business tax
Urban Maintenance and             Calculated based on the actual         7%, 5%, 1% (Note 2)
Construction Tax                  VAT paid
Enterprise income tax             Calculated based on the taxable        34%、28%、25%、24%、22.2%、
                                  income                                 16.5%、15%、13%
Education Surcharges              Calculated based on the actual         3%
                                  VAT paid
Local Education Surcharges        Calculated based on the actual         2%, 1.5% (Note 3)

                                                 125 / 225
Ningbo Tuopu Group Co., Ltd.                                                              Annual Report 2020

                                  VAT paid

     Note 1: The VAT tax of technology development service fees are calculated at 6% of the taxable
income; if other VAT taxable sales activities are occurred in the Company, under the “Announcement of
the Ministry of Finance, the State Administration of Taxation, and the General Administration of
Customs on deepening the policies of VAT reform" (Announcement of the Ministry of Finance, the
State Administration of Taxation, and the General Administration of Customs, 2019 No.39), the tax rate
applicable to VAT will be adjusted to 13% and 9% from April 1st, 2019.
     Note 2: If there are taxable entities applicable to different corporate city maintenance and
construction tax rates, make a disclosure of statement:


                 Name of Taxpayer                         Urban Maintenance and Construction Tax Rate
Liuzhou Tuopu                                                                                             5%
Ningbo Qianhui                                                                                            5%
Sichuan Tuopu                                                                                             5%
Pinghu Tuopu                                                                                              5%
Taizhou Tuopu                                                                                             5%
Tuopu Mechatronic System                                                                                  5%
Zhejiang Towin                                                                                            5%
Sichuan Maigao                                                                                            5%
Shanghai Towin                                                                                            1%
Other companies                                                                                           7%

    Note 3: If there are taxpayers applicable to different corporate local education surcharge rates,
make a disclosure of the description:
                 Name of Taxpayer                                Local Education Surcharges Rate
Wuhan Tuopu                                                                                             1.5%
Other company                                                                                             2%

If there are taxable entities applicable to different corporate income tax rates, disclose statement
√Applicable □Non-applicable
                  Name of Taxpayer                                      Income Tax Rate (%)
The Company                                                                                                15
Ningbo Qianhui                                                                                             15
Tuopu Intelligent Brake                                                                                    15
Baoji Tuopu                                                                                                15
Tuopu Mechatronic System                                                                                   15
Zhejiang Towin                                                                                             15
Sichuan Maigao                                                                                             15
Tuopu North American Ltd                                                                                   28
Tuopu North American USA Limited, INC                                                                      13
Tuopu International                                                                                     16.50
Tuopu Sweden                                                                                            22.20
TUOPU (MALAYSIA) SDN.BHD.                                                                                  24
Tuopu Brasil                                                                                               34
Other company                                                                                              25
                                                  126 / 225
Ningbo Tuopu Group Co., Ltd.                                                               Annual Report 2020


2. Preferential tax rate
√Applicable □Non-applicable
      1. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”
(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-tech
enterprises” (Guo Ke Fa Huo [2016] No.195), Ningbo Science and Technology Bureau, Ningbo Finance
Bureau, and Ningbo Tax Service, SAT issued the certificate of hi-tech enterprise (No.
GR201833100473). As set out in the certificate, the Company was accredited as a hi-tech enterprise and
this accreditation is valid for 3 years. Within this period of validity, the preferential tax rate for corporate
income tax is 15%, which is effective from 2018 to 2020. The corporate income tax rate for 2020 is
15%.
      2. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”
(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-tech
enterprises” (Guo Ke Fa Huo [2016] No.195), Ningbo Science and Technology Bureau, Ningbo Finance
Bureau, and Ningbo Tax Service, SAT issued the certificate of hi-tech enterprise (No.
GR202033100564). As set out in the certificate, Ningbo Qianhui was accredited as a hi-tech enterprise
and this accreditation is valid for 3 years. Within this period of validity, the preferential tax rate for
corporate income tax is 15%, which is effective from January 1st, 2020 to December 31st, 2022. The
corporate income tax rate for 2020 is 15%.
      3. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”
(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-tech
enterprises” (Guo Ke Fa Huo [2016] No.195), Ningbo Science and Technology Bureau, Ningbo Finance
Bureau, and Ningbo Tax Service, SAT issued the certificate of hi-tech enterprise (No.
GR201833100196). As set out in the certificate, Tuopu Smart Brake was accredited as a hi-tech
enterprise and this accreditation is valid for 3 years. Within this period of validity, the preferential tax
rate for corporate income tax is 15%, which is effective from 2018 to 2020. The corporate income tax
rate for 2020 is 15%.
      4. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”
(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-tech
enterprises” (Guo Ke Fa Huo [2016] No.195), Shaanxi Department of Science and Technology, Shaanxi
Department of Finance, and Shaanxi Tax Service, SAT issued the certificate of hi-tech enterprise (No.
GR201961001257). As set out in the certificate, Baoji Tuopu was accredited as a hi-tech enterprise and
this accreditation is valid for 3 years. Within this period of validity, the preferential tax rate for corporate
income tax is 15%, which is effective from 2019 to 2021. The corporate income tax rate for 2020 is
15%.
      5. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”
(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-tech
enterprises” (Guo Ke Fa Huo [2016] No.195), Ningbo Science and Technology Bureau, Ningbo Finance
Bureau, and Ningbo Tax Service, SAT issued the certificate of hi-tech enterprise (No.
GR201933100261). As set out in the certificate, Tuopu Mechatronic System was accredited as a hi-tech
enterprise and this accreditation is valid for 3 years. Within this period of validity, the preferential tax
rate for corporate income tax is 15%, which is effective from 2019 to 2021. The corporate income tax
rate for 2020 is 15%.
      6. Under the provisions of the “Administrative measures for the accreditation of hi-tech enterprises”
(Guo Ke Fa Huo [2016] No. 32) and the “Guidelines for the accreditation management of hi-tech
enterprises” (Guo Ke Fa Huo [2016] No.195), the Office of the Steering Group for the National Hi-tech
Enterprise Accrediation Management Work announced the list of hi-tech enterprises prospectively
accredited in Zhejiang Province in 2019, in which Zhejiang Towin was accredited as a hi-tech enterprise.
The preferential tax rate for corporate income tax is 15%, which is effective from 2019 to 2021. The
corporate income tax rate for 2020 is 15%.
      7. Under the "Notice of the Ministry of Finance, the General Administration of Customs, and the
State Administration of Taxation on taxation policy issues concerning the further implementation of the
Western Development Strategy" (Cai Shui [2011] No. 58), any enterprise engaged in an encouraged
industry in Western China will pay corporate income tax at 15% from January 1st, 2011 to December
31st, 2020. Under the “Letter of confirming the main operations of Sichuan Maigao as the state
encouraged industry” (Chuan Jing Xin Gui Chan Han No. [2019]890), as circulated by Sichuan

                                                   127 / 225
Ningbo Tuopu Group Co., Ltd.                                                         Annual Report 2020

Department of Economic and Information, the main operations of Sichuan Maigao are confirmed as the
state encouraged industry in the “Catalogue of Guidelines for Adjustment of Industrial Structure” and
“Catalogue of Encouraged Industries in Western China”, so the tax reduction policy applies. The
corporate income tax rate for 2020 is 15%.

3. Others
□Applicable √Non-applicable

VII. Notes to the Items in the Consolidated Financial Statement
1. Cash and bank balances

√Applicable □Non-applicable
                                                                     Unit: Yuan Currency: RMB
                                                                           Balance at the Beginning of
               Item                   Balance at the End of the Period
                                                                                   the Period
Cash on Hand                                                  8,899.73                         8,113.38
Bank Balance                                           674,857,522.35                    715,173,954.74
Other Cash and Bank Balances                           112,257,224.37                    107,275,733.84
Total                                                  787,123,646.45                    822,457,801.96
  Including: Total Amount                               70,846,825.02                     30,805,176.27
Deposited in Overseas Banks

Other notes
     Schedule of the cash and bank balances restricted for use
Item                               Balance at the End of the Period   Balance at the End of Previous
                                                                      Year
Documentary Credit Deposit                           112,257,224.37                   106,875,733.84
L/C Guarantee deposits                                                                    400,000.00
Total                                                112,257,224.37                   107,275,733.84

2. Trading Financial Assets
√Applicable □Non-applicable
                                                                       Unit:Yuan Currency:RMB
                                             Balance at the End of the    Balance at the Beginning of
                   Item
                                                      Period                      the Period
Financial assets that are measured at fair                   176,111.00                780,000,000.00
value and whose changes are included in
the current profit and loss
Including:
        Short-term financial products                                                  780,000,000.00
        Equity instrument investment                        176,111.00
Financial assets that are designated to be
measured at fair value and whose
changes are included in the current
profit and loss
Including:


                  Total                                     176,111.00                 780,000,000.00

Other Notes
□Applicable √Non-applicable
3. Derivative Financial Assets
□Applicable √Non-applicable
                                                128 / 225
Ningbo Tuopu Group Co., Ltd.                                                            Annual Report 2020

4. Notes Receivable
(1) Notes receivable presented by category
√Applicable □Non-applicable
                                                                          Unit:Yuan Currency:RMB
                                                                          Balance at the Beginning of the
              Item                   Balance at the End of the Period
                                                                                       Period
Bank Acceptance Notes                                  296,283,951.73                     422,499,894.27
Commercial Acceptance Notes                                                                 19,194,358.51
Provision for impairment of                                                                   -959,717.93
commercial acceptance bills
              Total                                    296,283,951.73                      440,734,534.85

(2). Notes receivable pledged by the Company at the end of the period
√Applicable □Non-applicable
                                                                    Unit:Yuan Currency:RMB
                      Item                             Pledged amount by the end of period
Bank Acceptance Notes                                                             296,225,046.21
Commercial Acceptance Notes
                      Total                                                       296,225,046.21

(3). Notes receivable that the Company has endorsed or discounted at the end of the period and
that have not yet expired on the balance sheet date
□Applicable √Non-applicable
(4). Notes that the Company has transferred to accounts receivable due to a failure of contract
performance at the end of the period.
□Applicable √Non-applicable
(5). Categorical disclosure of accounts receivable
□Applicable √Non-applicable
Provision for bad debts by single item:
□Applicable √Non-applicable
Provision for bad debts by combination:
□Applicable √Non-applicable
If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure of
other receivables:
□Applicable √Non-applicable
(6). Provision for bad debts
√Applicable □Non-applicable
                                                                        Unit: Yuan Currency:RMB
                     Balance at the        Amount Changed in the Current Period              Balance at the
     Category         Beginning of                      Withdrawal or                          End of the
                                         Provision                           Write-off
                       the Period                          Reversal                              Period
Provision for bad
debts of
                        959,717.93                          959,717.93
commercial
acceptance bills
        Total           959,717.93                          959,717.93

Significant withdrawal or reversal amount of provision for bad debts in the current period:
□Applicable √Non-applicable
(7). Notes receivable actually written off in the current period
□Applicable √Non-applicable
□Applicable √Non-applicable

                                                 129 / 225
Ningbo Tuopu Group Co., Ltd.                                         Annual Report 2020

5. Accounts receivable
(1). Disclosure by aging
√Applicable □Non-applicable
                                                           Unit:Yuan Currency:RMB
                       Aging                    Book Balance at the End of the Period
Within 1 year
Including: sub-item within 1 year
Within 1 year                                                         1,852,308,912.50
Subtotal within 1 year                                                1,852,308,912.50
1 to 2 years                                                             17,017,466.57
2 to 3 years                                                             10,380,883.70
Over 3 years                                                              8,279,853.97
3 to 4 years
4 to 5 years
Over 5 years                                                              5,627,793.14
Provision for bad debts                                                -110,347,902.23
                       Total                                          1,783,267,007.65




                                    130 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                                                       Annual Report 2020



(2). Categorical disclosure by provision for bad debts
√Applicable □Non-applicable
                                                                                                                                            Unit:Yuan Currency:RMB
                                            Balance at the End of the Period                                            Balance at the Beginning of the Period
                                 Book Balance         Bad Debt Provision                                       Book Balance          Bad Debt Provision
       Category                              (%)                    Accrued
                                                                                                                               Perce                    Accrued
                                            Perce                    Proporti           Book Value
                                Amount                Amount                                                 Amount            ntage                    Proporti       Book Value
                                            ntage                       on                                                              Amount
                                                                                                                                (%)                     on (%)
                                             (%)                       (%)
Bad debt provision                 7,929,510.12    0.42     7,929,510.12   100.00                               7,790,842.99     0.54    7,790,842.99      100.00
accrued based on single
item
Including:
Bad debt provision                 7,929,510.12    0.42     7,929,510.12   100.00                               7,790,842.99     0.54    7,790,842.99      100.00
accrued based on single
item
Bad debt provision             1,885,685,399.76   99.58   102,418,392.11       5.43      1,783,267,007.65   1,434,544,085.11    99.46   77,523,637.17           5.40    1,357,020,447.94
accrued based on
combinations
Including:
Bad debt provision             1,885,685,399.76   99.58   102,418,392.11       5.43      1,783,267,007.65   1,434,544,085.11    99.46   77,523,637.17           5.40    1,357,020,447.94
accrued based on aging
combinations
         Total                 1,893,614,909.88    /      110,347,902.23   /             1,783,267,007.65   1,442,334,928.10     /      85,314,480.16       /           1,357,020,447.94


Bad debt provision accrued based on single item
√Applicable □Non-applicable
                                                                                                                                                 Unit:Yuan Currency:RMB
                                                                                        Balance at the End of the Period
               Name
                                                   Book Balance                Bad Debt Provision         Accrued Proportion (%)                        Reason for Accrual
Henan Dongqi Chenfei Rubber and                           2,438,745.39                   2,438,745.39                       100.00                Expected to be unable to
Plastic Co., Ltd.                                                                                                                                 recover
Chongqing Hyosow Parts Co., Ltd.                          4,682,782.60                        4,682,782.60                              100.00    Expected to be unable to


                                                                                      131 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                                          Annual Report 2020

                                                                                                                                         recover
Zhejiang Green Field Motor Co.,                           414,778.13                        414,778.13                         100.00    Expected to be unable to
Ltd.                                                                                                                                     recover
Chongqing Lifan Passenger Vehicle                         393,204.00                        393,204.00                         100.00    Expected to be unable to
Co., Ltd.                                                                                                                                recover
              Total                                     7,929,510.12                    7,929,510.12                           100.00                   /

Notes to Bad debt provision accrued based on single item:
□Applicable √Non-applicable
Bad debt provision accrued based on combinations
√Applicable □Non-applicable
Accrued items based on combinations: accounts receivable with bad debt provision by aging portfolio
                                                                                                                                        Unit:Yuan Currency:RMB
                                                                                        Balance at the End of the Period
               Name
                                                   Accounts Receivable                        Bad Debt Provision                         Accrued Proportion(%)
Within 1 year (including 1 year)                              1,852,308,912.50                                92,615,445.62                                           5.00
1-2 years (including 2 years)                                    17,017,466.57                                  1,701,746.65                                         10.00
2-3 years (including 3 years)                                      9,966,105.57                                 2,989,831.67                                         30.00
3-5 years (including 5 years)                                      3,203,867.37                                 1,922,320.42                                         60.00
Over 5 years                                                       3,189,047.75                                 3,189,047.75                                        100.00
                Total                                         1,885,685,399.76                               102,418,392.11

Recognition criteria for and notes to bad debt provision by combinations
□Applicable √Non-applicable
If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure of other receivables:
□Applicable √Non-applicable
(3). Bad debt provision
√Applicable□Non-applicable
                                                                                                                                         Unit:Yuan Currency:RMB
                                Balance at the                                Amount Changed in the Current Period
                                                                                                                                                    Balance at the End
        Category               Beginning of the                                Withdrawal or
                                                          Provision                                   Write-off                Other Changes          of the Period
                                   Period                                        Reversal
Bad debt provision                  7,790,842.99               138,667.13                                                                                  7,929,510.12
accrued based on single
item

                                                                                132 / 225
Ningbo Tuopu Group Co., Ltd.                                                                  Annual Report 2020

Bad debt provision               77,523,637.17            24,894,754.94                         102,418,392.11
accrued based on
combinations
         Total                   85,314,480.16            25,033,422.07                         110,347,902.23

Significant withdrawal or reversal amount of provision for bad debts in the current period:
□Applicable √Non-applicable

(4). Accounts receivable actually written off in the current period
□Applicable √Non-applicable




                                                                              133 / 225
Ningbo Tuopu Group Co., Ltd.                                                                          Annual Report 2020




(5). Accounts receivable of the top five closing balances collected by debtors

√Applicable □Non-applicable


                                                             Balance at the End of the Period
                                                                       Proportion in Total
         Name of Entity
                                       Accounts Receivable                 Accounts                Bad Debt Provision
                                                                        Receivable (%)
               No.1                             442,999,760.20                          23.39              22,149,988.01
               No.2                             337,923,690.04                          17.85              16,896,184.50
               No.3                             206,946,830.18                          10.93              10,347,341.51
               No.4                                79,593,506.53                           4.2              3,979,675.33
               No.5                                46,199,384.89                         2.44               2,309,969.24
               Total                         1,113,663,171.84                           58.81              55,683,158.59

(6).Accounts receivable derecognized due to the transfer of financial assets
□Applicable √Non-applicable

(7). Amount of assets and liabilities formed by the transfer of accounts receivable and continued
involvement
□Applicable √Non-applicable

Other Notes:
□Applicable √Non-applicable

6. Receivables Financing
√Applicable □Non-applicable
                                                                                        Unit:Yuan Currency:RMB
                                                Balance at the End of the               Balance at the Beginning of the
                Item
                                                         Period                                      Period
Notes receivable                                             742,203,122.21                             587,351,790.19
               Total                                         742,203,122.21                             587,351,790.19

Changes in the financing of receivables and changes in fair value in the current period:
√Applicable □Non-applicable
Item           Balance at Increase in Derecognition Other                   Balance at                     Cumulative
               the End of the Current in the Current Changes                the End of                     loss provision
               Previous      Period          Period                         the Period                     recognized in
               Year                                                                                        other
                                                                                                           comprehensive
                                                                                                           income
Bank           587,351,790.19   4,499,901,156.99    4,372,392,149.83                      714,860,797.35
Acceptance
Notes
Commercial                      40,692,965.07       11,911,570.48       -1,439,069.73     27,342,324.86


                                                       134 / 225
Ningbo Tuopu Group Co., Ltd.                                                                         Annual Report 2020


Acceptance
Notes
Total           587,351,790.19   4,540,594,122.06   4,384,303,720.31     -1,439,069.73   742,203,122.21


If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure of
other receivables:
□Applicable √Non-applicable
Other Notes:
√Applicable □Non-applicable
      1. Notes receivable pledged by the Company at the end of the period
Item                                                 Pledged amount by the end of period
Bank Acceptance Notes                                                                    605,111,448.46
Commercial Acceptance Notes                                                               13,474,904.41
Total                                                                                    618,586,352.87

     2. Notes receivable that the Company has endorsed or discounted at the end of the period and that
have not yet expired on the balance sheet date
Item                                Derecognised amount at the end Not derecognised amount at the
                                    of the period                     end of the period
Bank Acceptance Notes                             1,118,453,642.11
Total                                             1,118,453,642.11

     3. Provision for impairment of accounts receivable financing
     As of December 31st, 2020, the amount of commercial acceptance notes was RMB 28,781,394.59,
the Company managed the unmatured commercial acceptance notes as accounts receivable according to
the principle of prudence and made a provision for bad debts of unmatured commercial acceptance notes
in RMB 1,439,069.73 according to the principle of continuous calculation in respect of the age of its
corresponding accounts receivable.

7. Prepayments
(1). Aging analysis of prepayments is as follows
√Applicable □Non-applicable
                                                                                    Unit:Yuan Currency:RMB
                        Balance at the End of the Period                      Balance at the Start of the Period
   Aging
                        Amount              Percentage(%)                      Amount              Percentage(%)
Within 1 year           38,834,366.57                   90.56                 33,352,625.65                    94.30
1-2 years                2,579,881.03                    6.02                   1,379,449.26                     3.90
2-3 years                  838,134.84                    1.95                      89,812.40                     0.25
Over 3 years               631,435.96                    1.47                     545,640.66                     1.55
    Total               42,883,818.40                  100.00                 35,367,527.97                   100.00

(2).Particulars of advance payment of the top five closing balances by prepayment parties
√Applicable □Non-applicable


                                                                                                 Proportion in total
                                                              Balance at the end of
                Prepayments made to                                                           balance of prepayments
                                                                       the period
                                                                                              at the end of the period
 GLOBAL GLORY GROUP LIMITED                                                2,454,288.53                           5.72
 Sri Trang Agro-Industry (Shanghai) Co., Ltd.                              2,286,718.89                           5.33
   Ningbo Wanguhui Li Plastic Chemical                                     1,546,245.00                           3.61

                                                       135 / 225
Ningbo Tuopu Group Co., Ltd.                                                        Annual Report 2020



                                                                                Proportion in total
                                                     Balance at the end of
               Prepayments made to                                            balance of prepayments
                                                           the period
                                                                              at the end of the period
 Trading Co., Ltd.
 Lianyi Dawang Rubber Co., Ltd.                                1,321,874.65                       3.08
 Johnson Electric (Guangdong) Co., Ltd.                         951,906.22                        2.22
                        Total                                  8,561,033.29                     19.96

Other Notes
□Applicable √Non-applicable
8. Other Receivables
Presentation of items
√Applicable □Non-applicable
                                                                         Unit:Yuan Currency:RMB
                                                                        Balance at the beginning of the
                Item                 Balance at the end of the period
                                                                                    period
Interest receivable
Dividend receivable
Other Receivables                                      31,087,166.38                    13,981,969.00
Total                                                  31,087,166.38                    13,981,969.00

Other Notes:
□Applicable √Non-applicable
Interest receivable
(1). Category of interest receivable
□Applicable √Non-applicable
(2). Important late payment interest
□Applicable √Non-applicable
(3). Particulars of bad debt provision
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Dividend receivable
(4). Dividend Receivable
□Applicable √Non-applicable
(5). Important dividend receivable with an aging over 1 year
□Applicable √Non-applicable
(6). Particulars of bad debt provision
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Other Receivables
(7). Disclosure by aging
√Applicable □Non-applicable
                                                                     Unit:Yuan Currency:RMB
                       Aging                               Book Balance at the End of the Period

                                               136 / 225
Ningbo Tuopu Group Co., Ltd.                                                           Annual Report 2020


Within 1 year
Including: sub-item within 1 year
Within 1 year                                                                               31,493,515.91
Subtotal within 1 year                                                                      31,493,515.91
1-2 years                                                                                      600,751.95
2-3 years                                                                                      453,930.00
Over 3 years                                                                                   774,746.23
3-4 years
4-5 years
Over 5 years                                                                                   339,600.00
Bad debt provision                                                                          -2,575,377.71
                       Total                                                                31,087,166.38

(8). Categorized by the nature of funds
                                                            √Applicable □Non-applicable Currency:RMB
                                         Book balance at the end of the     Book balance at the beginning
         Nature of Funds
                                                   period                           of the period
Export tax rebate receivable                                                                  3,067,052.92
 Petty cash funds                                             122,815.13                        670,096.10
 Security deposit                                         29,417,358.76                      15,633,181.45
 Others                                                    4,122,370.20                       3,045,023.12
               Total                                      33,662,544.09                      22,415,353.59

  (9). Particulars of bad debt provision
√Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
                           Phase 1                 Phase 2               Phase 3
                                              Expected credit        Expected credit
                           Expected
      Bad debt                              loss throughout the   loss throughout the
                        credit loss in                                                    Total
     provision                              duration (no credit     duration (credit
                         the next 12
                                                impairment          impairment has
                           months
                                                 occurred)             occurred)
 Balance        on
                         8,433,384.59                                                        8,433,384.59
January 1, 2020
 Balance of the
current period on
January 1, 2020
 --Transfer     to
Phase 2
 --Transfer     to
Phase 3
 --Transfer     to
Phase 2
 --Transfer     to
Phase 1
 Provision made
in the current
period
 Reversal in the
                         5,858,006.88                                                        5,858,006.88
current period
 Write-off in the
current period
 Write-off in the
current period

                                                   137 / 225
Ningbo Tuopu Group Co., Ltd.                                                           Annual Report 2020


 Other changes
 Balance on
December 31,             2,575,377.71                                                        2,575,377.71
2020

    Notes to significant changes in the book balance of other receivables that have changed in the current
period:
  □Applicable √Non-applicable
  Amount of bad debt provision in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly:
  □Applicable √Non-applicable

 (10). Particulars of bad debt provision
 √Applicable □Non-applicable
                                                                 Unit: Yuan       Currency: RMB
                                             Amount Changed in the Current Period
                           Balance at                                             Oth    Balance at
      Category          the Beginning               Withdrawal                  er C the End of the
                         of the Period   Provision  or Reversal    Write-off hange        Period
                                                                                    s
 Accounts
receivable with bad
                        8,433,384.59                   5,858,006.88                         2,575,377.71
debt accrued based
on aging portfolio
        Total           8,433,384.59                   5,858,006.88                         2,575,377.71
 Bad debt provision in the current period with significant amount of withdrawal or reversal:
 □Applicable √Non-applicable

 (11). Particulars of other receivables actually written off in the current period
 □Applicable √Non-applicable

 (12). Particulars of other receivables of the top five closing balances collected by debtors
 √Applicable □Non-applicable
                                                                   Unit: Yuan Currency: RMB
                                                                      Proportion in      Balance of
                                       Balance at the                  total other        bad debt
                         Nature of
    Name of Unit                         end of the                  receivables at   provision at the
                          funds                            Aging
                                           period                    the end of the      end of the
                                                                       period (%)          period
 Ningbo
Hangzhou Bay
New Zone
                       Security                            Withi
Administration                          19,831,703.00                          58.91       991,585.15
                      deposit                              n1
Committee for
                                                           year
Development and
Construction
 Special account
for online security
                       Security                            Withi
deposits of Cixi                         6,040,000.00                          17.94       302,000.00
                      deposit                              n1
Public Resources
                                                           year
Trading Center




                                                 138 / 225
Ningbo Tuopu Group Co., Ltd.                                                       Annual Report 2020


 Special custody
account of Beilun
                         Security                         Withi
Customs of the                            2,039,571.58                        6.06        101,978.58
                        deposit                           n1
People’s Republic
                                                          year
of China
 Zhejiang Geely
Holding Group            Security                         Withi
                                           500,000.00                         1.49         25,000.00
Automobile Sales        deposit                           n1
Co., Ltd.                                                 year
 Liu Hongsong
                                                          Withi
                         Other             455,000.00                         1.35        200,100.00
                                                          n1
                                                          year
        Total                  /        28,866,274.58        /               85.75      1,620,663.73

  (13). Accounts receivable related to government subsidies
□Applicable √Non-applicable
  (14). Other accounts receivable derecognised due to transfer of financial assets
  □Applicable √Non-applicable
  (15). Amount of assets and liabilities generated due to transfer of other receivables and continued
involvement
  □Applicable √Non-applicable

Other Notes:
□Applicable √Non-applicable




                                              139 / 225
Ningbo Tuopu Group Co., Ltd.                                                                                                               Annual Report 2020

 9. Inventories
(1).Category of inventories

√Applicable □Non-applicable
                                                                                                                             Unit:Yuan Currency:RMB
                                              Balance at the End of the Period                               Balance at the Start of the Period
                                                  Inventory depreciation                                         Inventory depreciation
           Item                                     provision or contract                                          provision or contract
                                Book Balance                                   Book Value        Book Balance                                   Book Value
                                                      performance cost                                               performance cost
                                                   impairment provision                                           impairment provision
Raw materials                    217,685,102.37                                217,685,102.37    174,632,264.90                                174,632,264.90
WIPs
Finished goods                   617,392,628.62           38,312,844.14        579,079,784.48    479,800,587.16            24,824,483.78     454,976,103.38
Revolving materials               15,283,612.95                                 15,283,612.95     11,017,609.64                               11,017,609.64
Consumptive biological
assets
Contract performance cost
Production cost                   244,417,226.39                               244,417,226.39     209,879,246.83                              209,879,246.83
Delivered goods                   446,286,110.69                               446,286,110.69     389,280,927.69                              389,280,927.69
          Total                 1,541,064,681.02          38,312,844.14      1,502,751,836.88   1,264,610,636.22           24,824,483.78    1,239,786,152.44

(2). Inventory depreciation provision and contract performance cost impairment provision
√Applicable □Non-applicable
                                                                                                                             Unit:Yuan Currency:RMB
                                                            Increase in the Current Period          Decrease in the Current Period
                                     Balance at the                                                                                    Balance at the End
              Item                                                                                 Reversal or
                                   Start of the Period      Accrued               Others                                  Others         of the Period
                                                                                                    Write-off
Raw materials
WIPs
Finished goods                         24,824,483.78       20,176,862.13                             6,688,501.77                              38,312,844.14
Revolving materials
Consumptive biological assets
Contract performance cost
             Total                     24,824,483.78       20,176,862.13                             6,688,501.77                              38,312,844.14


                                                                           140 / 225
 Ningbo Tuopu Group Co., Ltd                                                           Annual Report 2020


 (3). Notes to the balance at the end of the inventory period with the capitalized amount of
 borrowing costs
 □Applicable √Non-applicable
 (4). Notes to the amortized amount in the current period of contract performance cost
 □Applicable √Non-applicable
 Other Notes
 □Applicable √Non-applicable
 10. Contract Assets
 (1). Particulars of contract assets
 □Applicable √Non-applicable
 (2). Amount and reason for the significant change in the book value during the reporting period
 □Applicable √Non-applicable
 (3). Particulars of impairment provision of contract assets in the current period
 □Applicable √Non-applicable
 If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure of
 other receivables:
 □Applicable √Non-applicable
 Other Notes:
 □Applicable √Non-applicable
 11. Holding-for-sale assets
 □Applicable √Non-applicable
 12. Non-current assets due within one year
 □Applicable √Non-applicable
 Important debt investments and other debt investments at the end of the period:
 □Applicable √Non-applicable
 13. Other Current Assets
 □Applicable √Non-applicable
                                                                           Unit:Yuan Currency:RMB
                                           Balance at the End of the        Balance at the Beginning of
                 Item
                                                    Period                           the Period
 Contract acquisition cost
 Return cost receivable
Unpaid VAT                                              168,424,657.71                    151,599,906.30
Prepaid income tax                                         5,400,034.11                      4,616,006.81
                Total                                   173,824,691.82                    156,215,913.11

 14. Debt Investment
 (1). Particulars of debt investment
 □Applicable √Non-applicable
 (2). Important debt investment at the end of the period
 □Applicable √Non-applicable
 (3). Particulars of provision for impairment
 □Applicable √Non-applicable
 The amount of impairment provision for the current period and the basis for assessing whether the credit
 risk of financial instruments has increased significantly
 □Applicable √Non-applicable
 Other Notes
 □Applicable √Non-applicable



                                                 141 / 225
Ningbo Tuopu Group Co., Ltd                                                            Annual Report 2020


15. Other Debt Investments
(1). Particulars of other debt investments
□Applicable √Non-applicable
(2). Other important debt investments at the end of the period
□Applicable √Non-applicable
(3). Particulars of provision for impairment
□Applicable √Non-applicable
The amount of impairment provision for the current period and the basis for assessing whether the credit
risk of financial instruments has increased significantly
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
16. Long-term Receivables
(1). Particulars of long-term receivables
□Applicable √Non-applicable
(2). Particulars of provision for bad debts
□Applicable √Non-applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit
risk of financial instruments has increased significantly
□Applicable √Non-applicable
(3). Long-term receivables derecognized due to the transfer of financial assets
□Applicable √Non-applicable
(4). The amount of assets and liabilities formed by the transfer of long-term receivables and
continued involvement
□Applicable √Non-applicable
□Applicable √Non-applicable




                                                142 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                      Annual Report 2020



17. Long-term Equity Investment
√Applicable □Non-applicable
                                                                                                                                Unit: Yuan      Currency: RMB
                                                                               Decrease/Increase in the current period
                                                                                                                                                              Balan
                                                                                                                                                              ce of
                                                                                                 Adjust            Cash
                                                              Inv    Inv                                                    Provi                            impair
                                                                                Investment        ment    Other   dividen
                                            Balance at the     est    est                                                    sion                             ment
                                                                              profit and loss      on     chan     ds or            O
             Invested Entity               Beginning of the    me     me                                                      for         Balance at the     provis
                                                                            recognized under      other    ges     profit           th
                                               Period           nt    nt                                                    impai        End of the Period    ion at
                                                                                the equity      compre      in    declare           er
                                                              Incr   Dec                                                    rment                              the
                                                                                 method          hensiv   equit     d to             s
                                                               eas   reas                                                   accru                            end of
                                                                                                    e       y     distrib
                                                               ed     ed                                                      ed                               the
                                                                                                income              ute
                                                                                                                                                             period
 I. Joint ventures
 Tuopu Electrical Appliances Co.,
Ltd. (hereinafter referred to as “Tuopu     55,128,214.81                      7,448,199.22                                                62,576,414.03
Electrical Appliances”)
 Ningbo Borgers Tuopu Automobile
Parts Co., Ltd. (hereinafter referred to     59,530,818.39                     17,551,044.91                                                77,081,863.30
as “Ningbo Borgers)
 Subtotal                                   114,659,033.20                     24,999,244.13                                              139,658,277.33
 II. Affiliates
 Chongqing Antolin Tuopu Overhead
System Co., Ltd. (hereinafter referred       10,556,917.12                         80,789.13                                                10,637,706.25
to as “Chongqing Antolin”)
 Subtotal                                    10,556,917.12                         80,789.13                                               10,637,706.25
                   Total                    125,215,950.32                     25,080,033.26                                              150,295,983.58




                                                                              143 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                       Annual Report 2020



 18. Other equity instrument investments
 (1). Particulars of other equity instrument investments
 □Applicable √Non-applicable
 (2). Particulars of investment in non-trading equity instruments
 □Applicable √Non-applicable
 Other Notes:
 □Applicable √Non-applicable
 19. Other non-current financial assets
 □Applicable √Non-applicable
 Other Notes:
 □Applicable √Non-applicable
 20. Investment property
 Measurement options of investment property
 (1). Investment properties measured by cost method
                                                                                                                       Unit: Yuan Currency: RMB
                                                       Buildings and                                       Projects under
                        Item                                                         Land use rights                                   Total
                                                       constructions                                       Construction
 I . Original book value
      1. Balance at the beginning of the period              44,143,733.52                  6,689,012.00                             50,832,745.52
      2. Increased in the Current Period                      4,919,549.41                                                            4,919,549.41
      (1) Purchase
       (2) Transfer-in of Inventory\Fixed                     4,919,549.41                                                            4,919,549.41
assets\Construction in progress
      (3) Increase from business combination
      3. Decreased in the Current Period
       (1) Disposal
       (2) Other Transfer-out
       4. Balance at the end of the period                   49,063,282.93                  6,689,012.00                             55,752,294.93
 II. Accumulated Depreciation and Amortization
         1. Balance at the beginning of the period           17,571,599.87                  2,300,889.34                             19,872,489.21


                                                                         144 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                         Annual Report 2020

       2. Increased in the Current Period                     4,115,851.31                 160,536.29                                    4,276,387.60
       (1) Accrual or Amortization                            2,135,859.41                 160,536.29                                    2,296,395.70
       (2) Transfer of fixed assets                           1,979,991.90                                                               1,979,991.90
       3. Decreased in the Current Period
       (1) Disposal
       (2) Other transfer-out
       4. Balance at the end of the period                  21,687,451.18                 2,461,425.63                                  24,148,876.81
 III. Provision for Impairment
       1. Balance at the beginning of the period
       2. Increased in the Current Period
       (1) Accrual
       3. Decreased in the Current Period
         (1) Disposal
         (2) Other Transfer-out
       4. Balance at the end of the period
 IV. Book value
      1. Book value at the end of the period                27,375,831.75                 4,227,586.37                                  31,603,418.12
      2. Book value at the beginning of the period          26,572,133.65                 4,388,122.66                                  30,960,256.31

(2). Particulars of investment property without the property right certificate granted
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
21. Fixed assets
Presentation of items
√Applicable □Non-applicable
                                                                                                                   Unit: Yuan Currency: RMB
                              Item                                Balance at the end of the period          Balance at the beginning of the period
 Fixed assets                                                                            4,248,257,966.73                             3,941,027,638.25
 Disposal of fixed assets
                              Total                                                      4,248,257,966.73                            3,941,027,638.25


                                                                         145 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                              Annual Report 2020


 Other Notes:
 □Applicable √Non-applicable
 Fixed Assets
 (1). Particulars of fixed Assets
 √Applicable □Non-applicable
                                                                                                                           Unit: Yuan   Currency: RMB
                                                                                                        Office
                                                Houses and         Means of        Machinery and                       Buildings for
                   Item                                                                             equipment and                           Total
                                                buildings       transportation      equipment                        commercial use
                                                                                                        others
 I . Original book value
       1. Balance at the beginning of the
                                             2,024,581,827.43   32,905,724.82    3,189,999,047.12   175,950,529.18    68,200,328.83      5,491,637,457.38
period
       2. Increased in the Current Period      72,090,392.25      1,935,483.59     689,516,728.60    23,248,604.92                         786,791,209.36
           (1) Purchase                         1,556,559.87      1,935,483.59     128,468,737.46    11,106,440.76                         143,067,221.68
           (2) Transfer-in of construction
                                               70,533,832.38                       561,047,991.14    12,142,164.16                         643,723,987.68
in progress
           (3) Increase from business
combination
       3. Decreased in the Current
                                               23,408,214.96      2,852,595.19      33,381,264.33      198,405.74                           59,840,480.22
Period
           (1) Disposal or scrapping           18,488,665.55      2,852,595.19      33,381,264.33      198,405.74                           54,920,930.81
           (2) Transfer-in of investment
                                                 4,919,549.41                                                                                4,919,549.41
property
       4. Balance at the end of the period   2,073,264,004.72   31,988,613.22    3,846,134,511.39   199,000,728.36    68,200,328.83      6,218,588,186.52
 II. Accumulated Depreciation
       1. Balance at the beginning of the
                                              272,893,395.21    24,022,884.89    1,175,732,815.18    77,065,969.77       894,754.08      1,550,609,819.13
period
       2. Increased in the Current Period      91,563,567.14      2,562,088.83     327,479,371.69    17,457,307.16     1,533,864.14        440,596,198.96
          (1) Accrual                          91,563,567.14      2,562,088.83     327,479,371.69    17,457,307.16     1,533,864.14        440,596,198.96
       3. Decreased in the Current
                                                 7,250,756.33     2,697,140.79      10,182,059.21      745,841.97                           20,875,798.30
Period
           (1) Disposal or scrapping             5,270,764.43     2,697,140.79      10,182,059.21      745,841.97                           18,895,806.40
           (2) Transfer-in of investment         1,979,991.90                                                                                1,979,991.90


                                                                             146 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                         Annual Report 2020

property
       4. Balance at the end of the period    357,206,206.02    23,887,832.93   1,493,030,127.66    93,777,434.96    2,428,618.22   1,970,330,219.79
 III. Provision for Impairment
       1. Balance at the beginning of the
period
       2. Increased in the Current Period
          (1) Accrual
       3. Decreased in the Current
Period
          (1) Disposal or scrapping
       4. Balance at the end of the period
 IV. Book value
       1.Book value at the end of the
                                             1,716,057,798.70    8,100,780.29   2,353,104,383.73   105,223,293.40   65,771,710.61   4,248,257,966.73
period
       2. Book value at the beginning of
                                             1,751,688,432.22    8,882,839.93   2,014,266,231.94    98,884,559.41   67,305,574.75   3,941,027,638.25
the period




                                                                           147 / 225
Ningbo Tuopu Group Co., Ltd                                                           Annual Report 2020




(2). Particulars of temporarily idle fixed assets
□Applicable √Non-applicable
(3). Particulars of fixed assets rented under financial leasing
□Applicable √Non-applicable
Fixed assets rented under operating leases
□Applicable √Non-applicable
(5). Particulars of fixed assets without property right certificate granted
√Applicable □Non-applicable
                                                                        Unit:Yuan Currency:RMB
                                                                       Reason for non-granted property
               Item                          Book Value
                                                                               right certificate
Houses and buildings                                487,949,105.78                In process

Other Notes:
√Applicable □Non-applicable
The above factories are under construction with a full set of documents and relevant procedures are gone
through. The process of obtaining property right certificates is expedited, some construction projects
have been accepted and recorded by competent authority, and there is no substantial obstacle in this
process.
Disposal of Fixed Assets
√Applicable □Non-applicable
22. Construction in progress
Presentation of items
√Applicable □Non-applicable
                                                                         Unit:Yuan Currency:RMB
                                         Balance at the End of the       Balance at the Beginning of the
                Item
                                                   Period                             Period
Construction in progress                               943,993,396.96                    611,737,763.71
Construction supplies and
materials
               Total                                   943,993,396.96                    611,737,763.71

Other Notes:
□Applicable √Non-applicable




                                               148 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                Annual Report 2020



Construction in Progress
(1). Details of construction in progress
√Applicable □Non-applicable
                                                                                                                              Unit:Yuan Currency:RMB
                                                 Balance at the end of the period                          Balance at the beginning of the period
              Item                                        Provision for                                            Provision for
                                     Book Balance                                 Book value      Book Balance                            Book value
                                                        decline in value                                           decline in value
Equipment and software               682,154,841.45                              682,154,841.45    511,861,666.03                              511,861,666.03
installation project
Molds of the group under              83,278,532.30                              83,278,532.30      51,944,098.87                              51,944,098.87
fabrication
Intelligent Brake project of the      10,760,304.53                              10,760,304.53       3,223,901.07                               3,223,901.07
group headquarter
Wuhan Tuopu Project                    5,106,988.41                               5,106,988.41       1,944,635.96                               1,944,635.96
Liuzhou Tuopu Project                                                                                   77,878.41                                  77,878.41
Taizhou Tuopu Project                 43,526,245.62                              43,526,245.62      15,962,027.86                              15,962,027.86
Mechatronic System Phase II           25,674,905.15                              25,674,905.15
Project
Zhejiang Towin Project                                                                              19,480,780.07                              19,480,780.07
Sichuan Maigao Project                11,545,959.74                              11,545,959.74       6,525,794.31                               6,525,794.31
Hunan Tuopu Project                   27,462,126.30                              27,462,126.30         716,981.13                                 716,981.13
Tuopu Thermal Management              10,706,712.33                              10,706,712.33
Project
Tuopu Chassis Project                 43,776,781.13                              43,776,781.13
               Total                  943,993,396.96                             943,993,396.96    611,737,763.71                            611,737,763.71

(2). Changes in significant construction in progress during the current period
√Applicable □Non-applicable


                                                                                                                             Unit:Yuan Currency:RMB




                                                                            149 / 225
      Ningbo Tuopu Group Co., Ltd                                                                                                                                      Annual Report 2020

                                                                                                                                                                  Capitali
                                                                                                                Project                              Including
                                                                                                                                                                   zation
                                                                               Other                         accumulativ                  Accum           :
                               Balance                          Transfer                                                                                           rate of
                                               Increased                       amounts                             e                      ulated     capitalize
                                at the                         amounts of                    Balance at                     Project                                  the       Capital
                                                 in the                        decrease                       investment                  capitali   d interest
   Item          Budget        Start of                           fixed                      the End of                     progres                               interest
                                                current                        d in                               as a                    zed        amount in                 Source
                                 the                            assets in                    the Period                        s                                    in the
                                                 period                        current                        percentage                  interest      the
                               Period                          this period                                                                                        current
                                                                               period                            of the                   amount      current
                                                                                                                                                                   period
                                                                                                             budget (%)                                period
                                                                                                                                                                     (%)
Equipmen
t and                                                                                                                       Under
                               511,861,666.0   677,083,967.9   501,203,495.7   5,587,296.7   682,154,841.4                                                                   Self-funded
software                                   3               2               9             1               5
                                                                                                                            constructio
                                                                                                                            n                                                or raised
installatio
n project
Molds of
the group                                                                                                                   Under
under                          51,944,098.87   45,280,158.23   13,945,724.80                 83,278,532.30                  constructio                                      Self-funded
                                                                                                                            n
fabricatio
n
Intelligent
Brake
project of                                                                                                                  Under                                            Self-funded
               530,000,000.0
                                3,223,901.07   76,651,802.77   69,115,399.31                 10,760,304.53         96.86%   constructio
the group                  0                                                                                                n                                                or raised
headquart
er
Taizhou                                                                                                                     Under
Tuopu          45,000,000.00   15,962,027.86   27,890,810.25     326,592.49                  43,526,245.62         97.45%   constructio                                      Self-funded
                                                                                                                            n
Project
Mechatro
nic
System                                         27,792,808.60   27,792,808.60                                                As built
Phase I
Sporadic
Project




                                                                                             150 / 225
     Ningbo Tuopu Group Co., Ltd                                                                                                            Annual Report 2020

Mechatro
nic                                                                                                                       Under
              130,000,000.0                                                                                                                      Self-funded
System                    0
                                              25,674,905.15                                 25,674,905.15       19.75%    constructio
                                                                                                                          n                      or raised
Phase II
Project
Zhejiang
Towin         45,000,000.00   19,480,780.07    6,790,583.75   26,271,363.82                                     100.00%   As built               Self-funded
Project
Other
houses                                                                                                                    Under
                               9,265,289.81   94,401,879.97    5,068,602.87                 98,598,566.91                 constructio            Self-funded
and                                                                                                                       n
structures
              750,000,000.0   611,737,763.7   981,566,916.6   643,723,987.6   5,587,296.7   943,993,395.9   /                /          /             /
   Total                  0               1               4               8             1               6


     (3). Provision for impairment of construction in progress in the current period
     □Applicable √Non-applicable
     Other Notes
     □Applicable √Non-applicable




                                                                                            151 / 225
Ningbo Tuopu Group Co., Ltd                                Annual Report 2020




Construction materials and supplies
(4). Particulars of construction materials and supplies
□Applicable √Non-applicable
23. Productive biological assets
(1). Productive biological assets measured at cost
□Applicable √Non-applicable
(2). Productive biological assets measured at fair value
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
24. Oil and gas assets
□Applicable √Non-applicable
25. Right-of-use assets
□Applicable √Non-applicable




                                              152 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                   Annual Report 2020



  26. Intangible assets
  (1). Particulars of intangible assets
√Applicable □Non-applicable
                                                                                                                Unit: Yuan   Currency: RMB
                                                                           Non-patented
              Item                    Land use rights      Patent rights                  Softwares       Emission rights         Total
                                                                           technologies
 I . Original book value
                                          612,079,126.53                                  67,174,814.04       1,548,222.50      680,802,163.07
1. Opening Balance
      2. Increased in the                 103,547,459.95                                    731,827.92                          104,279,287.87
Current Period
         (1) Purchase                     103,547,459.95                                    731,827.92                          104,279,287.87
         (2) Internal research
and development
         (3) Acquisition
 3. Decreased in the Current               12,232,811.96                                     58,923.97                           12,291,735.93
Period
          (1) Disposal                     12,232,811.96                                     58,923.97                           12,291,735.93
   4. Balance at the end of the           703,393,774.52                                  67,847,717.99       1,548,222.50      772,789,715.01
period
 II. Accumulated amortization
       1. Balance at the                   54,261,479.05                                  20,348,778.00         424,257.88       75,034,514.93
beginning of the period
       2. Increased in the                 14,762,313.13                                   5,473,209.45         309,644.50       20,545,167.08
Current Period
           (1) Accrual                     14,762,313.13                                   5,473,209.45         309,644.50       20,545,167.08
       3. Decreased in the                  1,198,387.35                                    152,685.51                            1,351,072.86
Current Period
          (1) Disposal                      1,198,387.35                                    152,685.51                            1,351,072.86
       4. Balance at the end of            67,825,404.83                                  25,669,301.94         733,902.38       94,228,609.15
the period

                                                                           153 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                        Annual Report 2020

 III. Provision for Impairment
       1. Balance at the
beginning of the period
       2. Increased in the
Current Period
          (1) Accrual
       3. Decreased in the
Current Period
          (1) Disposal
       4. Balance at the end of
the period
 IV. Book value
       1.Book value at the end         635,568,369.69                                                 42,178,416.05              814,320.12            678,561,105.86
of the period
       2.Book value at the             557,817,647.48                                                 46,826,036.04            1,123,964.62            605,767,648.14
beginning of the period

 Intangible assets formed through the R&D activities within the company at the end of the period as a percentage in the balance of intangible assets
 (2). Particulars of land use rights without property right certificate granted
 □Applicable √Non-applicable
 Other Notes:
 □Applicable √Non-applicable




                                                                              154 / 225
Ningbo Tuopu Group Co., Ltd                                                         Annual Report 2020




27. Development expenditure
□Applicable √Non-applicable
28. Goodwill
(1) Original book value of goodwill
√Applicable □Non-applicable
                                                                        Unit:Yuan Currency:RMB
                                                                         Decreased
                                                       Increased in the    in the
                                                        current period    current
                                   Balance at the                         period
 Name of invested entity or                                                         Balance at the
                                  beginning of the     Generated
  matter forming goodwill                                                          end of the period
                                       period             from
                                                                         Disp
                                                        business
                                                                         osal
                                                       combinati
                                                           on
Tuopu North American USA               1,080,371.29                                    1,080,371.29
Limited,INC
Ningbo Qianhui                         6,058,537.77                                      6,058,537.77
Goodwill formed by the
acquisition of chassis
                                     279,645,980.89                                   279,645,980.89
business from Zhejiang
Towin and Sichuan Maigao
            Total                    286,784,889.95                                   286,784,889.95



(1).     Provision of impairment in goodwill

√Applicable □Non-applicable
                                                                       Unit:Yuan Currency:RMB
                                                       Increased in    Decreased in
                                    Balance at the      the current     the current Balance at the
   Name of invested entity or
                                   beginning of the       period          period      end of the
    matter forming goodwill
                                        period                                          period
                                                      Accrual         Disposal
Goodwill formed by the
acquisition of chassis business
                                     33,474,815.71                                      33,474,815.71
from Zhejiang Towin and
Sichuan Maigao
              Total                  33,474,815.71                                      33,474,815.71

(1). Information about the asset group or combination of asset groups where the goodwill is a part
√Applicable □Non-applicable
For the goodwill impairment test concerning Zhejiang Towin and Sichuan Maigao, the chassis business
comprising Zhejiang Towin and Sichuan Maigao, and Tuopu Parts that ultimately carries out the sales of
the chassis business are deemed as asset groups for impairment testing. The main cash inflows are
independent of cash inflows from other assets or asset groups.
(2). Explain the process of impairment testing of goodwill, key parameters (for example, the
forecast period growth rate, stable period growth rate, profit rate, discount rate, forecast period,
etc., if applicable) and business Recognition method of reputation impairment loss
√Applicable □Non-applicable
      (1) Impairment test of goodwill formed by the acquisition of chassis business of Zhejiang Towin
and Sichuan Maigao

                                                155 / 225
Ningbo Tuopu Group Co., Ltd                                                              Annual Report 2020


      The recoverable amount of goodwill is calculated at the present value of the expected future cash
flow. The expected cash flow is based on the cash flow forecast approved by the Company for a period
of five years(the period from 2021 to 2025 and the stable period after 2025), and estimated from sales
revenue growth rate, gross profit and other key data determined based on the historical experience and
market development forecast. The discount rate applicable to the Company is a pre-tax interest rate that
reflects the time value of currency in the current market and the particular risks of related asset group.
(3). Impact of goodwill impairment test
√Applicable □Non-applicable
After testing, the recoverable amount of the asset group containing goodwill formed by the acquisition
of chassis business of Zhejiang Towin and Sichuan Maigao exceeds the book value of the asset group
containing goodwill. Referring to the result of impairment test, no provision for goodwill impairment is
required at the end of the period.
Other Notes
□Applicable √Non-applicable
29. Long-term prepaid expenses
√Applicable □Non-applicable
                                                                           Unit:Yuan Currency:RMB
      Item         Balance at the     Increased in        Prepaid        Other Amounts Balance at the
                   beginning of        the current     Expenses in         Decreased            End of the
                     the period          period         This Period                               Period
Decoration         25,395,786.69       8,417,595.79 10,427,214.10             771,061.01       22,615,107.37
cost et al.
Others             32,915,388.33 49,890,848.32 36,503,461.10 11,238,622.98                     35,064,152.57
      Total        58,311,175.02 58,308,444.11 46,930,675.20 12,009,683.99                     57,679,259.94

30. Deferred income tax assets/deferred income tax liabilities
(1). Deferred income tax assets not written off
                                           √Applicable □Non-applicable Unit:Yuan Currency:RMB
                                                                       Balance at the beginning of the
                                Balance at the end of the period
                                                                                   period
           Item                   Taxable                                Taxable
                                                 Deferred Income                        Deferred Income
                                 temporary                              temporary
                                                  Tax Liabilities                        Tax Liabilities
                                 difference                             difference
   Provision for               152,675,193.81       33,337,345.97     119,526,467.48      25,959,050.93
impairment of assets
   Unrealized profits from     111,200,512.26       25,696,889.57      101,961,915.76        23,798,120.81
internal transactions
   Deductible loss
   Deferred income             214,204,302.56       35,934,324.34      172,340,145.15        27,454,887.07
            Total              478,080,008.63       94,968,559.88      393,828,528.39        77,212,058.81

(2). Deferred income tax liabilities not written-off
√Applicable □Non-applicable
                                                                          Unit:Yuan Currency:RMB
                                                                        Balance at the beginning of the
                               Balance at the end of the period
                                                                                    period
          Item                   Taxable                                 Taxable
                                                 Deferred Income                         Deferred Income
                                temporary                               temporary
                                                  Tax Liabilities                         Tax Liabilities
                                difference                              difference
Assessed appreciation of
assets from business
                                46,761,294.44       11,690,323.61       50,076,548.48        12,519,137.12
combination of the
companies not under the

                                                 156 / 225
Ningbo Tuopu Group Co., Ltd                                                              Annual Report 2020


same control
Changes in the fair value
of other equity
instrument investments
Changes in the fair value
of other debt investments
Accelerated depreciation      268,117,758.73        40,217,663.81       236,987,930.23      35,548,189.54
of fixed assets
           Total              314,879,053.17        51,907,987.42       287,064,478.71      48,067,326.66


(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Offset

□Applicable √Non-applicable
(4).Particulars of unrecognized deferred income tax asset
□Applicable √Non-applicable
(5). The deductible losses of unrecognized deferred income tax assets will expire in the following
years
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
(2). Other non-current assets
√Applicable □Non-applicable
                                                                     Unit:Yuan Currency:RMB
                      Balance at the end of the period       Balance at the beginning of the period
                                 Provisio                                   Provisio
     Item                          n for                                      n for
                Book balance                   Book value   Book balance                Book Value
                                  decline                                    decline
                                 in value                                   in value
Contract
acquisition
cost
Contract
performance
cost
Return cost
receivable
Contract
assets
Prepayments      296,957,402.                 296,957,402.0 97,855,571.0                97,855,571.0
or                         06                             6            8                            8
construction
equipment
                 296,957,402.                 296,957,402.0 97,855,571.0                97,855,571.0
     Total
                           06                             6            8                            8

(3) Short-term loans
(1). Categories of short-term loan
√Applicable □Non-applicable
                                                                           Unit:Yuan Currency:RMB
                                                                          Balance at the beginning of the
              Item                   Balance at the end of the period
                                                                                      period
Pledge loan
                                                 157 / 225
Ningbo Tuopu Group Co., Ltd                                                             Annual Report 2020


Mortgage loan                                       400,378,888.89                      500,318,635.16
Guaranteed loan
Credit loan
             Total                                  400,378,888.89                      500,318,635.16

(2). Short-term loans that have been late for repayment
□Applicable √Non-applicable
Significant short-term loans that have been late for repayment:
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable
(4)Transactional financial liabilities
□Applicable √Non-applicable
(5) Derivative financial liabilities
□Applicable √Non-applicable
(6) Notes payable
(1).Presentation of notes payable
√Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
                                                                       Balance at the beginning of the
        Category                Balance at the end of the period
                                                                                   period
Commercial acceptance
bill
Bank acceptance bill                             1,471,327,551.91                       1,184,846,663.26
         Total                                   1,471,327,551.91                       1,184,846,663.26

At the end of the current period, total amount of notes payable that have not yet been paid is 0 Yuan.

(7) Accounts payable
(1). Presentation of accounts payable
√Applicable □Non-applicable
                                                                        Unit:Yuan Currency:RMB
             Item                     Balance at the end of the        Balance at the beginning of the
                                              period                               period
Within 1 year (including 1                      1,853,269,995.18                        1,407,097,012.11
year)
1-2 years (including 2 years)                      31,986,841.31                           42,806,138.81
2-3 years (including 3 years)                       7,239,675.36                            4,545,216.35
Over 3 years                                        5,758,604.32                            4,068,847.42
             Total                              1,898,255,116.17                        1,458,517,214.69

(2). Important accounts payable aged over 1 year
□Applicable √Non-applicable
Other Notes
□Applicable √Non-applicable

(8) Advance receipts
(1). Presentation of advance receipts
□Applicable √Non-applicable
(2). Important accounts payable aged over 1 year
□Applicable √Non-applicable

                                                 158 / 225
Ningbo Tuopu Group Co., Ltd                                                         Annual Report 2020


Other Notes
□Applicable √Non-applicable
(9) Contract liabilities
(1). Particulars of contract liabilities
√Applicable □Non-applicable
                                                                         Unit:Yuan Currency:RMB
              Item                                                     Balance at the beginning of the
                                    Balance at the end of the period
                                                                                   period
Within 1 year (including 1                            11,522,861.56                      17,236,132.93
year)
1-2 years (including 2 years)                          6,673,269.49                      1,058,243.59
2-3 years (including 3 years)                            838,769.34                      1,478,054.64
Over 3 years                                           3,650,760.02                      2,101,684.79
              Total                                   22,685,660.41                     21,874,115.95

(2). The amount and reason for significant change in the book value during the reporting period
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable




                                                159 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                  Annual Report 2020



(10) Payroll payable
(1). Presentation of payroll payable
√Applicable □Non-applicable
                                                                                                                                Unit:Yuan Currency:RMB
                                                Balance at the Beginning     Increased in the current    Decreased in the current     Balance at the End of the
                     Item
                                                     of the Period                   period                      period                        Period
I . Short-term remuneration                               118,223,468.37              867,319,746.28              847,365,105.18                138,178,109.47
II. Demission benefits - defined contribution                  556,580.33               15,736,450.33               16,178,778.46                    114,252.20
scheme
III. Dismissal benefits
IV. Other benefits due within 1 year
                     Total                                118,780,048.70                883,056,196.61            863,543,883.64               138,292,361.67

(2). Presentation of short-term remuneration
                                                                                                                               Unit:Yuan Currency:RMB

                                                Balance at the Beginning     Increased in the current    Decreased in the current    Balance at the End of the
                     Item
                                                     of the Period                   period                      period                       Period
1. Wages or salaries, bonuses, allowances                 112,070,603.88              737,879,686.59              714,014,521.90               135,935,768.57
and subsidies
2. Staff welfare                                              140,000.00                 52,259,436.97              52,292,876.17                   106,560.80
3. Social insurance contributions                             325,905.23                 32,779,101.13              32,900,852.09                   204,154.27
Including: medical insurance premium                          270,457.28                  6,471,171.61               6,582,153.15                   159,475.74
        Work injury insurance premium                          26,896.10                 24,943,816.83              24,972,393.01                    -1,680.08
        Birth insurance premium                                28,551.85                  1,364,112.69               1,346,305.93                    46,358.61
4. Housing funds                                               78,708.00                 36,191,139.54              36,159,452.54                   110,395.00
5. Labor union and education funds                          5,608,251.26                  8,210,382.05              11,997,402.48                 1,821,230.83
6. Short-term paid absences
7. Short-term profit sharing plan
                     Total                                118,223,468.37                867,319,746.28            847,365,105.18               138,178,109.47




                                                                            160 / 225
Ningbo Tuopu Group Co., Ltd                                                                Annual Report 2020




(3). Presentation of defined contribution plan
 √Applicable □Non-applicable
                                                                         Unit: Yuan Currency: RMB
                                 Balance at the         Increased in       Decreased in  Balance at the
            Item                beginning of the        the current        the current    end of the
                                     period               period             period         period
 1. Basic pension insurance          532,289.25        14,580,697.02       15,008,591.35    104,394.92
premium
 2. Unemployment                      24,291.08         1,155,753.31        1,170,187.11            9,857.28
insurance premium
 3. Corporate annuity
payment
            Total                    556,580.33        15,736,450.33       16,178,778.46          114,252.20

 Other Notes
 □Applicable √Non-applicable

 (11) Taxes payable
 √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
                                                                          Balance at the beginning of the
              Item                    Balance at the end of the period
                                                                                      period
 VAT                                                   37,476,861.48                       12,909,472.50
 Consumption tax
 Business tax
 Enterprise Income Tax                                   13,247,733.04                        30,198,542.41
 Individual income tax                                    1,126,989.40                         1,900,456.99
 Urban Maintenance and                                    2,555,965.45                           866,128.41
Construction Tax
 Property tax                                            17,409,122.91                        14,423,301.45
 Education surcharges                                     1,124,111.62                           380,160.53
 Local education surcharges                                 748,551.75                           253,440.39
 Land use tax                                             8,463,193.68                         7,091,250.59
 Environmental protection tax                                   454.86                               546.99
 Disabled security fund                                     313,642.20                           207,441.16
 Special funds for water                                      8,547.00                             8,323.08
conservancy construction
 Stamp duty                                                 390,129.90                           318,796.75
              Total                                      82,865,303.29                        68,557,861.25

 (12) Other payables
 Presentation of items
 √Applicable □Non-applicable
                                                                     Unit: Yuan Currency: RMB
                                           Balance at the end of the       Balance at the beginning of
                 Item
                                                   period                         the period
 Interest Payable
 Dividends Payable
 Other payables                                            15,722,105.17                        8,181,531.69
 Total                                                     15,722,105.17                        8,181,531.69

 Other Notes:
 □Applicable √Non-applicable
                                                   161 / 225
Ningbo Tuopu Group Co., Ltd                                                              Annual Report 2020




 Interest Payable
 (1). Presentation by category
 □Applicable √Non-applicable
 Dividends payable
 (2). Presentation by category
 □Applicable √Non-applicable
 Other payables
(1) Other payables presented by nature of funds
 √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
               Item                   Balance at the end of the period   Balance at the beginning of the
                                                                                     period
 Security deposits                                       8,120,598.94                       3,416,048.96
 Others                                                  7,601,506.23                       4,765,482.73
             Total                                      15,722,105.17                       8,181,531.69

 (2). Significant other payables aged over 1 year
 □Applicable √Non-applicable
 Other Notes:
    □Applicable √Non-applicable
 (2) Held-for-sale liabilities
 □Applicable √Non-applicable
 (3) Non-current liabilities due within 1 year
 √Applicable □Non-applicable
                                                                         Unit: Yuan Currency: RMB
               Item                   Balance at the end of the period      Balance at the beginning of the
                                                                                        period
 Long-term loans due within 1                                                                 62,837,810.76
year
 Bonds payable due within 1
year
 Long-term payables due
within 1 year
 Lease liabilities due within 1
year
               Total                                                                         62,837,810.76

 (4) Other current liabilities
 Particulars of other current liabilities
 √Applicable □Non-applicable
                                                                          Unit: Yuan Currency: RMB
                                      Balance at the end of the period     Balance at the beginning of the
             Item                                                                      period
  Short-term bonds payable
  Return payment payable
 Prepaid and deferred output                             1,507,896.52                         2,843,635.07
tax
              Total                                      1,507,896.52                         2,843,635.07



                                                   162 / 225
Ningbo Tuopu Group Co., Ltd                                                            Annual Report 2020


 Changes in short-term bonds payable:
 □Applicable √Non-applicable
 Other Notes:
 □Applicable √Non-applicable
 (5) Long-term loans
 (1). Category of long-term loans
 √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
               Item                   Balance at the end of the period    Balance at the beginning of the
                                                                                      period
 Pledge loans
 Mortgage loans                                                                           182,500,000.00
 Guaranteed loans
 Credit loans
              Total                                                                       182,500,000.00

 Other notes, including interest rate range:
 □Applicable √Non-applicable
 (6) Bonds payable
 (1). Bonds payable
 □Applicable √Non-applicable
 (2). Changes in bonds payable: (excluding preferred stocks, perpetual bonds and other financial
instruments classified as financial liabilities)
 □Applicable √Non-applicable
 (3). Conversion conditions and time of convertible corporate bonds
 □Applicable √Non-applicable
 (4). Notes to other financial instruments classified as financial liabilities
 General particulars of other financial instruments such as preferred stocks and perpetual bonds issued at
the end of the period
 □Applicable √Non-applicable
 Changes in financial instruments such as preferred stocks and perpetual bonds issued at the end of the
period
 □Applicable √Non-applicable
 Notes to the basis for classification of other financial instruments as financial liabilities:
 □Applicable √Non-applicable
 Other Notes:
 □Applicable √Non-applicable
 (7) Lease liabilities
 □Applicable √Non-applicable

 (8) Long-term payables
 Presentation of items

□Applicable √Non-applicable
  Other Notes:
  □Applicable √Non-applicable
  Long-term payables
(1). Long-term payables presented by the nature of payments
□Applicable √Non-applicable


                                                163 / 225
Ningbo Tuopu Group Co., Ltd                                  Annual Report 2020


 Special payables
 (2). Special payables presented by the nature of payments
 □Applicable √Non-applicable
 (9) Long-term payroll payable
 □Applicable √Non-applicable
 (10) Estimated liabilities
 □Applicable √Non-applicable




                                            164 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                       Annual Report 2020



 (11) Deferred income
 Deferred income
 √Applicable □Non-applicable
                                                                                                                                  Unit: Yuan Currency: RMB
                                   Balance at the                                         Decreased in the       Balance at the end of
           Item                                          Increased in the period                                                               Reason
                              beginning of the period                                         period                 the period
 Government grants                    172,340,145.15              56,728,451.00                14,864,293.59           214,204,302.56
        Total                         172,340,145.15              56,728,451.00                14,864,293.59           214,204,302.56             /

 Items related to government grants:
 √Applicable □Non-applicable
                                                                                                                                Unit: Yuan      Currency: RMB
                                                                           Amount              Amount
                                                          Additional
                                       Balance at the                    included in        included in               Balance at the
                                                            grants                                            Other
                Item                   beginning of                     non-operating      other income                end of the      Assets-related/income-related
                                                         increased in                                       changes
                                        the period                      income in the      in this period                period
                                                          the period
                                                                           period
  Machine substitution for human        2,714,000.00                                          472,000.00               2,242,000.00     Assets-related
project with an annual capacity of
700,000 sets of vibration control
products
  Automobile composite fiber             541,666.67                                           100,000.00                441,666.67      Assets-related
production project
  Tuopu Intelligent Mechatronic        16,504,166.67    10,000,000.00                         983,928.57              25,520,238.10     Assets-related
System Industrial Park Project
 Production line transformation         3,307,428.00                                          551,238.00               2,756,190.00     Assets-related
project of high-performance
vibration control system for cars
 Production and application             5,249,999.96                                          874,999.96               4,375,000.00     Assets-related
technology transformation project
of lightweight materials for
vehicles
  Technological Transformation          6,285,946.52     1,638,992.00                         794,849.79               7,130,088.73     Assets-related


                                                                              165 / 225
Ningbo Tuopu Group Co., Ltd                                                                                             Annual Report 2020

Project of Automobile
High-Performance Vibration
control System
 Technological Transformation         6,067,981.05   1,539,712.00                729,926.93     6,877,766.12    Assets-related
Project of Automobile Interior
and Exterior Trimming System
 Technological Transformation         6,117,222.31   1,663,312.00                777,533.25     7,003,001.06    Assets-related
Project of Automobile
Lightweight Control Arms
 Technological Transformation         6,363,749.43   1,769,472.00                811,169.86     7,322,051.57    Assets-related
Project of Automobile
Lightweight Parts Production
Line
 Technological Transformation                        1,723,800.00                               1,723,800.00    Assets-related
Project of Automobile
High-Performance Vibration
control System
 Technological transformation                        1,875,120.00                               1,875,120.00    Assets-related
project of lightweight auto parts
 Digital workshop project with an                    3,696,000.00                               3,696,000.00    Assets-related
annual capacity of 120,000 sets of
intelligent brake systems
 Auto parts production and           84,666,861.65                              4,500,000.00   80,166,861.65    Assets-related
industrial automation projects
 Technological transformation         9,226,229.99    537,200.00                 973,140.06     8,790,289.93    Assets-related
project for the production line of
automotive lightweight alloy
parts with an annual capacity of
300,000 sets
 Technological Transformation                        5,564,300.00                 92,738.34     5,471,561.66    Assets-related
Project of Automobile
High-Performance Vibration
control System
 Shenyang Tuopu Auto Parts             687,500.05    1,000,000.00                388,888.85     1,298,611.20   Assets-related
Base Project
 Intelligent factory construction      815,833.31                                110,000.00      705,833.31     Assets-related

                                                                    166 / 225
Ningbo Tuopu Group Co., Ltd                                                                                         Annual Report 2020

project with an annual capacity of
2 million sets of automotive
trimming system
  Technological transformation       1,155,000.00                              165,000.00     990,000.00    Assets-related
project of car roof, carpet
assembly and other trimming
system with an annual capacity of
1.6 million sets
  Auto Parts Production Project of   1,446,790.70                               84,279.07    1,362,511.63   Assets-related
Liudong New District
  Automobile Fabric Production        379,112.15    3,677,000.00               369,302.10    3,686,810.05   Assets-related
Line Project
  Pinghu Tuopu Auto Parts            6,149,750.00   7,235,000.00               651,150.00   12,733,600.00   Assets-related
Production Project
  Production line project with an     748,340.50                                86,798.28     661,542.22    Assets-related
annual capacity of 300,000 sets of
related auto parts
  Automobile chassis parts project   4,610,917.54                              103,229.50    4,507,688.04   Assets-related
with an annual capacity of
500,000 sets
  Tuopu Chassis Auto Parts                          8,000,000.00                             8,000,000.00   Assets-related
Industry Base Project
  Auxiliary project outside the      4,519,916.40   2,268,553.00               303,202.77    6,485,266.63   Assets-related
factory
  Hunan Xiangtan Auto Parts                         2,000,000.00                             2,000,000.00   Assets-related
Industry Base Project
  Relocation project with an          884,750.38                               110,593.80     774,156.58    Assets-related
annual capacity of 300,000 sets of
automotive trimming system
  Technological transformation       1,921,712.84                              378,110.76    1,543,602.08   Assets-related
project for the production line of
automobile front and rear axle
with an annual output of 200,000
sets
  Technological transformation        322,936.40                                48,688.54     274,247.86    Assets-related


                                                                   167 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                       Annual Report 2020

project of automobile suspension
chassis production line with
annual capacity of 300,000 sets
 Production line of automobile         1,652,332.63                                         240,498.68                 1,411,833.95     Assets-related
suspension chassis with an annual
capacity of 300,000 sets
 Passenger vehicle chassis                              2,539,990.00                        163,026.48                 2,376,963.52     Assets-related
suspension project with an annual
capacity of 500,000 sets
 Total                               172,340,145.15    56,728,451.00                      14,864,293.59             214,204,302.56

 Other Notes:
 √Applicable □Non-applicable
       1. Under the "Notice of Ningbo Economic and Information Commission on Announcement of 2016 As-built Technical Transformation Projects in Ningbo"
Yong Jing Xin Ji Gai [2016] No. 95, as circulated by Ningbo Economic and Information Commission, the Company received the grants at RMB 4,720,000.00 for
machine substitution for human project with an annual capacity of 700,000 sets of vibration control products. As of September 30, 2015, the said project was
substantially completed and put into production operation. Amortized by the depreciation years (10 years) corresponding to the machinery and equipment purchased
using the above grants, as of December 31, 2020, there was a remaining sum of RMB 2,242,000.0 to be amortized over the remaining years.
       2. Under the “Notice on releasing incentives for 2016 Ningbo Strategic Emerging Industry Development Projects” Yong Cai Zheng Fa 【2016】 No.584, as
circulated by Ningbo Finance Bureau, the Company received the grants at RMB 1,000,000.00 for automobile composite fiber production project in September 2016.
As of September 30, 2015, the said project was substantially completed and put into production operation. Amortized by the depreciation years (10 years)
corresponding to the machinery and equipment transformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 441,666.67 to be
amortized over the remaining years.
       3. The Company received two grants at RMB 17,000,000.00 and RMB 10,000,000.00 respectively in September 2016 and October 2020, in a gross sum of
RMB 27,000,000.00, and used the sums for Tuopu Intelligent Mechatronic System Industrial Park Project. In May 2019, this project was completed step by step and
put into production operation. Amortized by the depreciation years (20 years) corresponding to the buildings and structures constructed using the above grants, as of
December 31, 2020, there was a remaining sum of RMB 25,520,238.10 to be amortized over the remaining years.
       4. Under the “Notice on releasing the subsidies for the first and second batches of district-level partial as-built projects of 2017 Industrial Investment
(Technical Transformation) in Ningbo” Lun Jing Xin 【2018】 No.55, as circulated by Beilun District Finance Bureau of Ningbo, the Company received the
automobile composite fiber production project. The Company received the grants at RMB 4,409,904.0 for automobile composite fiber production project in
September 2018. As of January 2018, the said project was substantially completed and put into production operation. Amortized by the depreciation years
corresponding to the machinery and equipment purchased using the above grants, as of December 31, 2020, there was a remaining sum of RMB 2,756,190.00 to be
amortized over the remaining years.
       5. Under the “Notice on releasing the subsidies for the first and second batches of district-level partial as-built projects of 2017 Industrial Investment
(Technical Transformation) in Ningbo” Lun Jing Xin 【2018】 No.55, as circulated by Beilun District Finance Bureau of Ningbo, the Company received the grants


                                                                              168 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                      Annual Report 2020

at RMB 7,000,000.00 for production and application technology transformation project of lightweight materials for vehicles. As of January 2018, the said project
was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipment purchased using
the above grants, as of December 31, 2020, there was a remaining sum of RMB 4,375,000.00 to be amortized over the remaining years.
       6. The Company received three grants at RMB 2,772,000.00, RMB 3,840,000.00 and RMB 1,638,992.00 respectively in February 2019, November 2019 and
July 2020 respectively, and used the sums for Technological Transformation Project of Automobile High-Performance Vibration control System. As of December
2018, the said project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and
equipment transformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 7,130,088.73 to be amortized over the remaining
years.
       7. The Company received three grants at RMB 2,654,400.00, RMB 3,600,000.00 and RMB 1,539,712.00 respectively in February 2019, December 2019 and
July 2020 respectively, and used the sums for Technological Transformation Project of Automobile Interior and Exterior Trimming System. As of June 2019, the
said project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipment
transformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 6,877,766.12 to be amortized over the remaining years.
       8. The Company received three grants at RMB 2,532,000.00, RMB 3,890,000.00 and RMB 1,663,312.00 respectively in February 2019, November 2019 and
July 2020 respectively, and used the sums for Technological Transformation Project of Automobile Lightweight Control Arms. As of December 2018, the said
project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipment
transformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 7,003,001.06 to be amortized over the remaining years.
       9. The Company received three grants at RMB 2,544,000.00, RMB 4,130,000.00 and RMB 1,769,472.00 respectively in February 2019, November 2019 and
July 2020 respectively, and used the sums for Technological Transformation Project of Automobile Lightweight Parts Production Line. As of December 2018, the
said project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipment
transformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 7,322,051.57 to be amortized over the remaining years.
       10. The Company received the grants at RMB 1,723,800.00 in September 2020 and used the sums for Technological Transformation Project of Automobile
High-Performance Vibration control System. As of December 31, 2020, this project has not yet been completed and no amortization is made in this period.
       11. The Company received the grants at RMB 1,875,120.00 in September 2020 and used the sums for technological transformation project of lightweight auto
parts. As of December 31, 2020, this project has not yet been completed and no amortization is made in this period.
       12. The Company received the grants at RMB 3,696,000.00 in September 2020 and used the sums for digital workshop project with an annual capacity of
120,000 sets of intelligent brake systems. As of December 31, 2020, this project has not yet been completed and no amortization is made in this period.
       13. Tuopu Mechatronic System received two grants at RMB 60,000,000.00 and RMB 30,000,000.00 in August 2017 and December 2018 and used the sums
for auto parts production and industrial automation projects. The said project was substantially completed and put into production operation in 2018. Amortized by
the depreciation years (20 years) corresponding to the buildings and structures constructed using the above grants, as of December 31, 2020, there was a remaining
sum of RMB 80,166,861.65 to be amortized over the remaining years.
       14. Tuopu Mechatronic System received two grants at RMB 9,462,800.00 and RMB 537,200.00 in October 2019 and July 2020 and used the sums for
technological transformation project for the production line of automotive lightweight alloy parts with an annual capacity of 300,000 sets. As of December 2018, the
said project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipment
transformed using the above grants, as of December 31, 2020, there was a remaining sum of RMB 8,790,289.93 to be amortized over the remaining years.
       15. Tuopu Mechatronic System received the grants at RMB 5,564,300.00 in November 2020 and used the sums for technological transformation project for
Technological Transformation Project of Automobile High-Performance Vibration control System. As of November 2020, the said project was substantially


                                                                             169 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                    Annual Report 2020

completed and put into production operation. Amortized by the depreciation years corresponding to the machinery and equipment transformed using the above
grants, as of December 31, 2020, there was a remaining sum of RMB 5,471,561.66 to be amortized over the remaining years.
       16. Tuopu Mechatronic System received two grants at RMB 1,000,000.00 and RMB 1,000,000.00 in October 2018 and August 2020 respectively, in a gross
sum of RMB 2,000,000.00, and used the sums for Shenyang Tuopu Auto Parts Base Project. The said project was completed and put into operation in 2013.
Amortized by the depreciation years corresponding to the fixed assets using the above grants, as of December 31, 2020, there was a remaining sum of RMB
1,298,611.20 元 to be amortized over the remaining years.
       17. Under the “Notice on issuing special funds for information and industrial development of Guangxi Zhuang Autonomous Region in 2017” Gui Cai Gong
Jiao 【2017】 No.57, as circulated by Department of Finance of Guangxi Zhuang Autonomous Region, Liuzhou Tuopu received the technological transformation
project funds at RMB 1,100,000.00 and used the sums for Intelligent factory construction project with an annual capacity of 2 million sets of automotive trimming
system in August 2017. As of May 31, 2017, the said project was substantially completed and put into production operation. Amortized by the depreciation years
corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there was a remaining sum of RMB 705,833.31 to be
amortized over the remaining years.
       18. Under the “Notice on issuing the first batch of Liuzhou enterprise support funding project investment plans in 2017” Liu Gong Xin Tong 【2017】 No.164,
as circulated by Liuzhou Industry and Information Technology Commission and Liuzhou Finance Bureau, Liuzhou Tuopu received the potential exploitation
transformation funds at RMB 1,650,000.00 and used the sums for technological transformation project of car roof, carpet assembly and other trimming system with
an annual capacity of 1.6 million sets in December 2017. As of December 26, 2016, the said project was substantially completed and put into production operation.
Amortized by the depreciation years (10 years) corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there was
a remaining sum of RMB 990,000.00 to be amortized over the remaining years.
       19. Liuzhou Tuopu received the grants at RMB 1,510,000.00 and used the sums for Auto Parts Production Project of Liudong New District in April 2019. As
of February 2017, the said project was substantially completed and put into production operation. Amortized by the depreciation years corresponding to the
buildings and structures constructed and acquired using the above grants, as of December 31, 2020, there was a remaining sum of RMB 1,362,511.63 to be
amortized over the remaining years.
       20. Wuhan Tuopu received the grants at RMB 427,000.00,RMB 1,767,000.00 and RMB 1,910,000.00 in January 2019, April 2020 and June 2020
respectively, and used the sums for Fabric Production Line Project. As of November 2017, the said project was substantially completed and put into production
operation. Amortized by the depreciation years corresponding to the machinery and equipment purchased using the above grants, as of December 31, 2020, there
was a remaining sum of RMB 3,686,810.05 to be amortized over the remaining years.
       21. Pinghu Tuopu received two grants at RMB 7,235,000.00 and RMB 7,235,000.00 in January 2016 and May 2020 respectively, in a gross sum of RMB
14,470,000.00, and used the sums for Automotive Trimming System Production Project. As of January 2017, the said project was substantially completed and put
into production operation. Amortized by the depreciation years (20 years) corresponding to the buildings and structures constructed and acquired using the above
grants, as of December 31, 2020, there was a remaining sum of RMB 12,733,600.00to be amortized over the remaining years.
       22. Under the “Request for application of special funds for Technological Transformation and Transformation and Upgrading of Sichuan Province in 2015”
Sui Jing Xin 【2015】 No.28, as circulated by Suining Industrial and Information Technology Commission and Suining Finance Bureau, Sichuan Maigao received
the technological transformation and upgrading funds in October 2015 at RMB 1,110,000.00, and used the sums for production line project with an annual capacity
of 300,000 sets of related auto parts. As of October 2015, the said project was substantially completed and put into production operation. Amortized by the
depreciation years (20 years) corresponding to the purchased machinery and equipment and constructed plants using the above funds, as of December 31, 2020,
there was a remaining sum of RMB 661,542.22 to be amortized over the remaining years.

                                                                             170 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                          Annual Report 2020

       23. Under the “Investment Agreement” Nr. B-ZS-GY/(2013)4 signed between and by Anju Industrial Concentration Development Committee of Suining and
Zhejiang Fortuna Auto Parts Co., Ltd. On January 28, 2013, Sichuan Maigao received land subsidies at RMB 5,032,438.00 in December 2015 and used the sums for
Automobile chassis parts project with an annual capacity of 500,000 sets. As of December 2015, the said project was substantially completed and put into
production operation. Amortized by the depreciation years (48.75 years) corresponding to the land subsidies, as of December 31, 2020, there was a remaining sum
of RMB 4,507,688.04 to be amortized over the remaining years.
       24. Tuopu Chassis received the grants at RMB 8,000,000.00 in September 2020 and used the sums for Tuopu Chassis Auto Parts Industry Base Project. As of
December 31, 2020, this project has not yet been completed and no amortization is made in this period.
       25. Under the investment contract made between Yantai Tuopu and the Investment Promotion Bureau of Yantai Economic and Technological Development
Zone, Yantai Tuopu received five grants at RMB 2,330,000.00, RMB 290,000.00, RMB 301,458.00, RMB 1,810,000.00 and RMB 2,268,533.00 in July 2018, May
2019, July 2019, December 2019 and September 2020 respectively, and used the sums for auxiliary project outside the factory. As of July 2018, the said project was
substantially completed and put into production operation. Amortized by the depreciation years corresponding to the buildings and structures using the above grants,
as of December 31, 2020, there was a remaining sum of RMB 6,485,266.63 to be amortized over the remaining years.
       24. Tuopu Chassis received the grants at RMB 2,000,000.00 in September 2020 and used the sums for Hunan Xiangtan Auto Parts Industry Base Project. As
of December 31, 2020, this project has not yet been completed and no amortization is made in this period.
       27. Under the “Notice on issuing special fiscal funds for provincial industrial and information development of Linhai in 2018” (Lin Cai Qi [2018]30), as
circulated by Linhai Finance Bureau and Linhai Economic and Information Bureau, Taizhou Tuopu received four grants at RMB 175,100.00, RMB 193,300.00,
RMB 70,900.00 and RMB 526,000.00 in September 2018, November 2019 and December 2019, and used the sums for relocation project with an annual capacity of
300,000 sets of automotive trimming system. As of January 2018, the said project was substantially completed and put into production operation. Amortized by the
depreciation years corresponding to the machinery and equipment purchased using the above grants, as of December 31, 2020, there was a remaining sum of RMB
774,156.58 to be amortized over the remaining years.
       28. Under the “Review comment on the second batch of technological renovation and industrial and information project grants for industrial enterprises in
2016”, as circulated by Wuxi County People’s Government and Wuyi County Economic and Commercial Bureau, Zhejiang Towin received the technological
transformation and upgrading funds at RMB 3,056,045.00 in December 2016, and used the sums for technological transformation project for the production line of
automobile front and rear axle with an annual output of 200,000 sets. As of December 2016, the said project was substantially completed and put into production
operation. Amortized by the depreciation years corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there
was a remaining sum of RMB 1,543,602.08 to be amortized over the remaining years.
       29. Under the “Review comment on the first batch of technological renovation and industrial and information project grants for industrial enterprises in 2017”,
as circulated by Wuxi County People’s Government and Wuyi County Economic and Commercial Bureau, Zhejiang Towin received the county-level robot purchase
grants at RMB 448,715.00 in May 2017, and used the sums for Technological transformation project of automobile suspension chassis production line with annual
capacity of 300,000 sets. As of May 2017, the said project was substantially completed and put into production operation. Amortized by the depreciation years
corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there was a remaining sum of RMB 274,247.86 to be
amortized over the remaining years.
       30. Under the “Notice on appropriating special fiscal funds (Investment and Development) for provincial industrial and information development in 2016”, as
circulated by Wuyi County Economic and Commercial Bureau and Wuyi County Finance Bureau, Zhejiang Towin received technological transformation funds at
RMB 2,133,330.00 in December 2017 and used the sums for technological transformation project of automobile suspension chassis production line with annual
capacity of 300,000 sets. As of January 2018, the said project was substantially completed and put into production operation. Amortized by the depreciation years


                                                                               171 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                            Annual Report 2020

corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there was a remaining sum of RMB1,411,833.95 to be
amortized over the remaining years.
      31. Zhejiang Towin received technological transformation funds at RMB 2,539,990.00 for passenger vehicle chassis suspension project with an annual
capacity of 500,000 sets in July 2020. As of July 2020, the said project was substantially completed and put into production operation. Amortized by the
depreciation years corresponding to the machinery and equipment purchased using the above funds, as of December 31, 2020, there was a remaining sum of RMB
2,376,963.52 to be amortized over the remaining years.




                                                                         172 / 225
Ningbo Tuopu Group Co., Ltd                                                            Annual Report 2020




 (12) Other non-current liabilities
 □Applicable √Non-applicable
 (13) Equity
 √Applicable □Non-applicable
                                                                     Unit: Yuan Currency: RMB
                                         Increased or decreased amount in this period
                                                             (+/-)
                 Balance at the                            Shares
                                                                                        Balance at the
                beginning of the                        converted
                                                                                      end of the period
                     period            New Bonus           from
                                                                   Others Subtotal
                                       issue issue        capital
                                                         reserves
    Total          1,054,987,749.00                                                   1,054,987,749.00
   shares

 (14) Other equity instruments
 (1). Basic information of other financial instruments such as preferred stocks and perpetual
bonds issued at the end of the period
 □Applicable √Non-applicable
 (2). Changes in financial instruments such as preferred stocks and perpetual bonds issued at the
end of the period
 □Applicable √Non-applicable
 Changes in other equity instruments during the current period, the reason for the changes, and the basis
for related accounting treatments:
 □Applicable √Non-applicable
 Other Notes
 □Applicable √Non-applicable
 (15) Capital reserve
 √Applicable □Non-applicable
                                                                     Unit: Yuan Currency: RMB
                                    Balance at the
                                                          Increased   Decreased    Balance at the end of
            Item                   beginning of the
                                                            in the      in the         the period
                                        period
                                                            period     period
 Capital premium (equity              3,409,429,514.29                                 3,409,429,514.29
premium)
 Other capital reserves                      10,348.78                                        10,348.78
           Total                      3,409,439,863.07                                 3,409,439,863.07

 (16) Treasury stocks
 □Applicable √Non-applicable




                                                  173 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                        Annual Report 2020



 (17) Other comprehensive income
 √Applicable □Non-applicable
                                                                                                                                      Unit: Yuan Currency: RMB
                                                                                           Amount incurred in the current period
                                                                                                      Less:
                                                                                     Less:
                                                                                                Recorded into
                                                                                recorded into
                                                                                                      other
                                               Balance at         Amount             other
                                                                                               comprehensive
                                                  the            incurred      comprehensive                         Less:                   Attributable  Balance at
                                                                                                  incomes in                  Attributable
                    Item                       beginning          before          incomes in                       Income                       to the    the end of
                                                                                                    previous                     to the
                                                 of the        income tax          previous                          Tax                       minority   the period
                                                                                                  period and                   Company
                                                period        in the current      period and                      Expense                    shareholders
                                                                                                transferred to                  after tax
                                                                  period        transferred to                                                 after tax
                                                                                                    retained
                                                                                P/L in current
                                                                                                   income in
                                                                                    period
                                                                                                current period
 1. Other comprehensive income that
cannot be reclassified into profit and loss
 Including: re-measurement of changes
in defined benefit plans
 Other comprehensive income that
cannot be transferred to profit and loss
under the equity method
    Changes in the fair value of other
equity instrument investments
    Changes in fair value of the
enterprise's own credit risk
 2. Other comprehensive income that           -4,380,983.53   -16,254,480.41                                               -16,250,685.21     -3,795.20   -20,631,668.74
will be reclassified into profit and loss
 Including: other comprehensive income
that can be transferred to profit or loss
under the equity method
 Changes in the fair value of other debt
investments
    Amount of financial assets


                                                                                  174 / 225
Ningbo Tuopu Group Co., Ltd                                                                               Annual Report 2020

reclassified and included in other
comprehensive income
    Provision for impairment of other
debt investment
 Cash flow hedge reserves
 Translation difference of foreign      -4,380,983.53   -16,254,480.41               -16,250,685.21   -3,795.20   -20,631,668.74
currency financial statements
 Total                                  -4,380,983.53   -16,254,480.41               -16,250,685.21   -3,795.20   -20,631,668.74




                                                                         175 / 225
Ningbo Tuopu Group Co., Ltd                                                          Annual Report 2020




 (18) Special reserves
 □Applicable √Non-applicable

 (19) Surplus reserve
 √Applicable □Non-applicable
                                                                   Unit: Yuan Currency:人 RMB
        Item            Balance at the      Increased in the      Decreased in the Balance at the end
                      beginning of the      current period        current period    of the period
                           period
 Statutory surplus     412,680,608.91        62,089,021.95                              474,769,630.86
reserve
 Discretionary
surplus reserve
 Reserve fund
 Business
development fund

 Others
        Total            412,680,608.91         62,089,021.95                          474,769,630.86
 Notes to the surplus reserve, including the changes in the current period and the reason for such
changes:
       The statutory surplus reserve at RMB 62,089,021.95 shall be withdrawn at 10% of the parent
company's net profit in 2020.
 (20) Undistributed profit
 √Applicable □Non-applicable
                                                                        Unit: Yuan Currency: RMB
                            Item                                 Current period        Previous period
 Undistributed Profit before Adjustment at the End of             2,502,765,125.43      2,392,885,245.28
Previous Period
 Adjust the total undistributed profits at the start of the
period (increase +, decrease -)
 Undistributed Profit after Adjustment at the Start of            2,502,765,125.43      2,392,885,245.28
the Period
 Add: net profit attributable to parent company's owner             628,200,888.31        456,205,818.45
in current period
 Less: withdrawal of statutory surplus reserve                        62,089,021.95        46,563,902.00
       Withdrawal of discretionary surplus reserve
       Withdrawal of general risk reserve
       Ordinary stock dividend payable                              200,447,672.31        299,762,036.30
       Ordinary stock dividends converted into equity
 Undistributed profit at the end of the period                    2,868,429,319.48      2,502,765,125.43
 Adjust the particulars of undistributed profit at the beginning of the period:
 1. The impact of the retrospective adjustment of the "Accounting Standards for Business Enterprises"
and updated regulations on undistributed profit at the beginning of the period is RMB 0.
 2. The impact of changes in accounting policies on undistributed profit at the beginning of the period is
RMB 0.
 3. The impact of the correction of major accounting errors on undistributed profit at the beginning of
the period is RMB 0.
 4. The impact of change in the scope of business combination as a result of the same control on
undistributed profit at the beginning of the period is RMB 0.
 5. The gross impact of other adjustments on the undistributed profit at the beginning of the period is
RMB 0.

                                                176 / 225
Ningbo Tuopu Group Co., Ltd                                                        Annual Report 2020


 Other notes to undistributed profits:
       According to the resolution passed at 2019 Annual General Meeting, the Company distributed
RMB 1.90 per 10 shares (tax included) to all shareholders as cash dividends with total shares on the
record date for distribution plan as the base number, and total dividends at 200,447,672.31 were
distributed.

 (21) Operating income and operating cost
 (1). Particulars of operating income and operating cost
 √Applicable □Non-applicable
                                                                   Unit: Yuan Currency: RMB
                     Amount incurred in the current period      Amount incurred in previous period
       Item
                         Income                 Cost               Income                Cost
  Main               6,293,917,541.95     4,961,882,743.49     5,167,036,145.83    3,890,238,683.98
 operation
  Other                 217,177,372.10       72,131,784.90       191,917,667.77          59,754,660.08
 operations
      Total          6,511,094,914.05     5,034,014,528.39     5,358,953,813.60      3,949,993,344.06

 (2). Particulars of the income generated from contract
 □Applicable √Non-applicable
 Notes to the income generated from contract:
 □Applicable √Non-applicable
 (3). Notes to discharge of obligation
 □Applicable √Non-applicable
 (4). Notes to allocation to remaining performance obligations
 □Applicable √Non-applicable
 (22) Taxes and surcharges
 √Applicable □Non-applicable
                                                                     Unit: Yuan Currency: RMB
                                    Amount incurred in the current       Amount incurred in previous
              Item
                                              period                              period
 Consumption tax
 Business tax
 Urban Maintenance and                               13,570,057.87                       11,262,152.38
Construction Tax
 Education Surcharges                                 5,956,703.64                        5,016,149.58
 Resource tax
 Property tax                                        20,117,208.23                       17,752,678.64
 Land use tax                                        10,461,916.66                       10,165,783.97
 Vehicle and vessel use tax                              10,234.20                           20,703.80
 Stamp duty                                           3,021,739.93                        2,737,793.40
 Local education surcharges                           3,971,135.24                        3,332,064.93
 Environmental protection tax                            10,262.22                            4,406.54
 Franchise tax                                            8,272.92
 Land VAT                                               945,000.00
              Total                                  58,072,530.91                       50,291,733.24

 (23) Sales expense
 √Applicable □Non-applicable
                                                                     Unit: Yuan Currency: RMB
                                           Amount incurred in the          Amount incurred in previous
                 Item
                                             current period                         period
                                               177 / 225
Ningbo Tuopu Group Co., Ltd                                                        Annual Report 2020


 Transportation and vehicle
                                                                                        135,879,033.92
expenses
 Service expense                                           37,448,497.63                 36,716,218.98
 Payroll                                                   31,090,097.76                 27,053,953.83
 Business hospitality expense                              17,554,681.58                 26,722,100.66
 Storage fee                                                                             29,408,219.61
 Repair cost                                           26,297,852.61                     19,652,605.57
 Travel expense                                         1,427,006.29                      3,488,768.15
 Packaging fee                                          3,833,817.82                      1,625,847.62
 Vehicle cost                                           1,982,733.62                      2,308,113.24
 Exhibition fee                                            28,514.85                        185,679.24
 Others                                                 4,233,050.08                      4,038,182.22
                Total                                 123,896,252.24                    287,078,723.04

 Other Notes:
       According to the revised revenue standard, the Company will include the transportation and
storage fees related to the sales of goods of RMB 197,271,674.62 into the operating cost.
 (24) Overhead expense
 √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
                      Item                         Amount incurred in the         Amount incurred in
                                                      current period                previous period
 Payroll                                                   129,407,881.39                 124,126,882.92
 Depreciation expense                                        30,504,149.76                 24,364,820.33
 Business hospitality expense                                 2,659,235.25                  2,457,752.71
 Vehicle cost                                                 3,513,929.80                  3,591,320.09
 Taxes                                                        2,128,205.29                  1,938,578.48
 Travel expenses                                              1,812,974.57                  4,026,965.61
 Amortization of intangible assets                           15,182,606.65                 15,128,248.66
 Office expenses                                              4,061,233.20                  6,614,027.93
 Insurance premiums                                           3,745,476.72                  3,784,683.44
 Intermediary fee                                             3,219,840.84                  2,905,434.21
 Utility bills                                                2,460,308.10                  3,262,667.44
 Service charge                                              11,734,847.31                 13,168,122.20
 Rent                                                           719,363.07                  1,849,888.81
 Others                                                      21,921,822.52                 22,424,061.57
                      Total                                233,071,874.47                 229,643,454.40

 (25) R&D expenses
 √Applicable □Non-applicable
                                                                   Unit: Yuan Currency: RMB
                     Item                         Amount incurred in the      Amount incurred in
                                                    current period             previous period
 Material                                                 109,027,532.14             85,965,457.50
 Payroll                                                  147,953,842.51            142,560,480.32
 Depreciation and amortization                             58,210,594.82             42,347,773.52
 Transportation and storage fee                             2,864,077.02              5,285,814.38
                                                           14,812,836.86             15,012,653.31
 Energy consumption fee

 Travel expense                                                 2,872,311.90              4,367,891.16
 Trial production expense                                       4,015,146.73              7,958,697.31
 Others                                                        15,095,405.68             10,808,423.72
                    Total                                     354,851,747.66            314,307,191.22

                                               178 / 225
Ningbo Tuopu Group Co., Ltd                                                       Annual Report 2020




 (26) Financial expense
 √Applicable □Non-applicable
                                                                 Unit: Yuan Currency: RMB
                      Item                      Amount incurred in the      Amount incurred in
                                                  current period             previous period
 Interest expense                                        19,744,058.04              28,508,893.08
 Interest income                                        -17,108,552.05             -24,504,258.91
 Gain and loss from exchange                             39,191,206.52              -3,143,730.18
 Handling charge                                          2,291,850.08               2,237,121.82
                   Total                                 44,118,562.59               3,098,025.81

 (27) Other income
 √Applicable □Non-applicable
                                                                     Unit: Yuan Currency: RMB
               Item                 Amount incurred in the current       Amount incurred in previous
                                              period                              period
 Government grants                                 33,135,066.17                       26,527,210.85
            Total                                  33,135,066.17                       26,527,210.85

  Other Notes:
        Government grants included in other income:
              Item                Amount in         Amount in          Assets-related/Income-related
                                 the current     previous period
                                    period
  Special       funds       for                       820,000.00     Income-related
promoting            industrial
restructuring
  Technology            project      60,000.00      1,010,900.00     Income-related
subsidies
  Information          support                      3,100,000.00     Income-related
subsidies
  Special subsidies for             182,600.00        800,000.00     Income-related
patents
  Foreign economic and              518,600.00         50,000.00     Income-related
trade support funds
  R&D patent subsidies               72,184.00      2,231,577.50     Income-related
  Investment        promotion                       1,759,000.00     Income-related
incentives
  Stable          employment        522,523.95        154,358.55     Income-related
subsidies
  Tax subsidies                     395,862.09      2,925,895.58     Income-related
  Social security premium           121,216.54      1,732,996.40     Income-related
subsidies
  Technology project funds        2,103,600.00        300,000.00     Income-related
  Industrial        enterprise                        594,664.00     Income-related
subsidies
  Energy-saving evaluation          130,000.00          5,000.00     Income-related
report subsidies
  Incentives for overfulfill        300,000.00         50,000.00     Income-related
production       target     by
business enterprises
  Intellectual property rights                        120,000.00     Income-related
subsidies

                                              179 / 225
Ningbo Tuopu Group Co., Ltd                                                        Annual Report 2020


 Power bill subsidies             50,000.00          100,000.00   Income-related
 Corporate          funding        2,000.00          100,000.00   Income-related
subsidies

  Innovation               and                       100,000.00   Income-related
entrepreneurship subsidies
  Subsidies for small and                            100,000.00   Income-related
micro enterprises featuring
innovation and business
startups
  Bonus       for   enterprise                        20,000.00   Income-related
above designated size
  Enterprise transformation      321,600.00          299,100.00   Income-related
and upgrading incentives
  Machine substitution for       472,000.00          472,000.00   Assets-related
human project with an
annual capacity of 700,000
sets of vibration control
products
  Automobile       composite     100,000.00          100,000.00   Assets-related
fiber production project
  Tuopu            Intelligent   983,928.57          495,833.33   Assets-related
Mechatronic           System
Industrial Park Project
  Production              line   551,238.00          551,238.00   Assets-related
transformation project of
high-performance vibration
control system for cars
  Production               and   874,999.96          875,000.04   Assets-related
application       technology
transformation project of
lightweight materials for
vehicles
  Wuhan Automobile Fabric        369,302.10           47,887.85   Assets-related
Production Line Project
  Shenyang Tuopu Auto            388,888.85          249,999.96   Assets-related
Parts Base Project
  Intelligent          factory   110,000.00          110,000.00   Assets-related
construction project with an
annual capacity of 2 million
sets       of     automotive
trimming system
  Technological
transformation project of
car roof, carpet assembly
                                 165,000.00          165,000.00   Assets-related
and other trimming system
with an annual capacity of
1.6 million sets
  Auto Parts Production           84,279.07           63,209.30   Assets-related
Project of Liudong New
District
  Auxiliary project outside      303,202.77          150,225.81   Assets-related
the factory
  Pinghu Tuopu Auto Parts        651,150.00          361,750.00   Assets-related
Production Project
  Relocation project with an     110,593.80           43,709.62   Assets-related

                                              180 / 225
Ningbo Tuopu Group Co., Ltd                                                       Annual Report 2020


annual capacity of 300,000
sets      of       automotive
trimming system
  Auto parts production and      4,500,000.00        4,246,468.39    Assets-related
industrial         automation
projects
  transformation project for
the production line of
automotive         lightweight    973,140.06           236,570.01    Assets-related
alloy parts with an annual
capacity of 300,000 sets
  Technological                   378,110.76           378,110.72    Assets-related
transformation project of
production        line     for
automobile front and rear
axle with annual output of
200,000 sets
  County-level subsidies for       48,688.54            48,688.56    Assets-related
purchasing robots
  2017         Technological      240,498.68           240,498.76    Assets-related
Transformation Project
  Production line project          86,798.28            86,798.28    Assets-related
with an annual capacity of
300,000 sets of related auto
parts
  Automobile chassis parts        103,229.50           103,229.50    Assets-related
project with an annual
capacity of 500,000 sets
  Technological                   794,849.79           326,053.48    Assets-related
Transformation Project of
Automobile
High-Performance
Vibration control System
  Technological                   729,926.93           186,418.95    Assets-related
Transformation Project of
Automobile Interior and
Exterior Trimming System
  Technological                   777,533.25           304,777.69    Assets-related
Transformation Project of
Automobile       Lightweight
Control Arms
  Technological                   811,169.86           310,250.57    Assets-related
Transformation Project of
Automobile       Lightweight
Parts Production Line
  Incentive post-subsidies        600,000.00                        Income-related
for the transformation of
scientific and technological
achievements                of
automotive            trimming
system
  Technology subsidies           1,607,000.00                        Income-related
  "One District, Multiple          500,000.00                        Income-related
Parks" Development Fund
  Design report grants of         100,000.00                         Income-related
initial      solution      for

                                                181 / 225
Ningbo Tuopu Group Co., Ltd                                               Annual Report 2020


intelligent transformation
  VAT        exemption       for      9,000.00                Income-related
veterans
  Industrial production and        1,700,000.00               Income-related
capacity expansion rewards
  Import discount subsidies        1,344,164.00               Income-related
  Information               and      100,000.00               Income-related
industrialization
management               system
certification
  Annual fee grants for               4,680.00                Income-related
domestic            authorized
invention patents
  Funding grants for science        795,000.00                Income-related
and       technology       plan
projects
  Strategic          emerging
industry development funds
(recognized by the National        1,000,000.00               Income-related
Enterprise        Technology
Center)
  Talent grants                     647,650.00                Income-related
  Intellectual         property      35,600.00                Income-related
project subsidies
  2018 invention patent                 720.00                Income-related
annual fee grants
  2018             technology        59,000.00                Income-related
transaction post grants
  2019 “Going Global”             178,500.00                Income-related
project grants
  Enterprise              R&D       892,800.00                Income-related
post-grants
  Subsidies for resumption         1,144,872.00               Income-related
of work and epidemic
response supplies
  High-tech         Enterprise      100,000.00                Income-related
Award
  Construction fund for              30,000.00                Income-related
slope protection project in
Guang'an High-tech Zone
  Statistical           funding      86,000.00                Income-related
subsidies granted from
Economic and Information
Bureau
  2020 Industrial Special           697,900.00                Income-related
Fund Subsidies
  “2-year exemption, 3-year       1,347,700.00               Income-related
collection of corporate
income tax by half”
government subsidies
  Premium          investment        50,000.00                Income-related
project award on the "
Leaderboard"        of     New
District Industrial Economy
  High-tech          enterprise     400,000.00                Income-related
grants

                                                  182 / 225
Ningbo Tuopu Group Co., Ltd                                                                Annual Report 2020


 2019 pollution source                  60,000.00                         Income-related
monitoring          system
operation and maintenance
subsidies
 Automobile                             92,738.34                         Assets-related
high-performance vibration
control system production
project
 Passenger vehicle chassis             163,026.48                         Assets-related
suspension project with an
annual capacity of 500,000
sets
 Total                               33,135,066.17      26,527,210.85


 (28) Investment income
 √Applicable □Non-applicable
                                                                         Unit: Yuan        Currency: RMB
                                                                 Amount incurred in        Amount incurred in
                              Item
                                                                 the current period         previous period
 Long-term equity investment income calculated by the                  25,080,033.26            24,507,700.52
equity method
 Investment income from disposal of long-term equity
investments
 Investment income of trading financial assets during
the holding period
 Dividend income from other equity instrument
investments during the holding period
 Interest income from debt investment during the
holding period
 Interest income from other debt investments during
the holding period
 Investment income from disposal of trading financial
assets
 Investment income from the disposal of other equity
instrument investments
 Investment income from disposal of debt investment
 Investment income from the disposal of other debt
investments
 Investment income from financial management                            18,164,183.51            26,928,822.54
products
                         Total                                          43,244,216.77            51,436,523.06


 (29) Net exposure hedging income
 □Applicable √Non-applicable

 (31) Credit impairment loss
 √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
                                                 Amount incurred in the         Amount incurred in
                   Item
                                                   current period                previous period
 Bad debt loss on accounts receivable                         479,351.80                    959,717.93
 Bad debt loss on accounts receivable                      25,033,422.07                 11,866,290.11

                                                     183 / 225
Ningbo Tuopu Group Co., Ltd                                                           Annual Report 2020


 Bad debt loss on other receivables                           -5,858,006.88                  2,197,687.05
 Impairment loss of debt investment
 Impairment loss of other debt
investment
 Bad debt loss of long-term receivables
 Impairment loss of contract assets
                  Total                                       19,654,766.99                 15,023,695.09

 (32) Asset impairment loss
 √Applicable □Non-applicable
                                                                        Unit: Yuan Currency: RMB
                                             Amount incurred in the         Amount incurred in previous
                 Item
                                               current period                        period
 1. Loss of bad debts

 2. Loss of inventory falling price
and loss of contract performance cost                   22,439,872.62                       16,948,061.74
impairment
 3. Long-term equity investment
impairment losses
 4. Impairment loss of investment
real estate
 5. Impairment loss of fixed assets
 6. Impairment loss of construction
materials
 7. Impairment loss of construction
in progress
 8. Impairment loss of productive
biological assets
 9. Impairment losses of oil and gas
assets
 10. Intangible assets impairment
loss
 11. Goodwill impairment loss                                                               33,474,815.71
 12. Others
                  Total                                 22,439,872.62                       50,422,877.45

 (33) Income from disposal of assets
 √Applicable □Non-applicable
                                                                       Unit: Yuan Currency: RMB
               Item                     Amount incurred in the current     Amount incurred in previous
                                                  period                            period
 Income from disposal of assets                          8,747,482.63                     -5,522,498.81
             Total                                       8,747,482.63                     -5,522,498.81

 (34) Non-operating income
 √Applicable □Non-applicable
                                                                        Unit: Yuan     Currency: RMB
                                                                                       Amount included
                                        Amount incurred in      Amount incurred in       in the current
               Item
                                        the current period       previous period      non-recurring profit
                                                                                            and loss
 Total gains from disposal of
non-current assets
                                                  184 / 225
Ningbo Tuopu Group Co., Ltd                                                        Annual Report 2020


 Including: gains from disposal
of fixed assets
 Gains from disposal of
intangible assets
 Gains from debt restructuring
 Gains from non-monetary asset
exchange
 Capital from donation
 Government grants                         1,215,201.24             591,762.00            1,215,201.24
 Compensation income                       3,168,618.05              66,366.70            3,168,618.05
 Others                                    1,270,852.96             632,764.95            1,270,852.96
                Total                      5,654,672.25           1,290,893.65            5,654,672.25

 Government grants included in current profit and loss
 √Applicable □Non-applicable
                                                                   Unit: Yuan      Currency: RMB

                                  Amount incurred     Amount incurred
             Item
                                   in the current    in previous period   Assets-related/Income-related
                                       period
  Foreign economic and trade                               167,600.00                   Income-related
subsidies
  Stable employment                    296,701.24             5,612.00                  Income-related
subsidies
  Enterprise upgrade and                                     50,000.00                  Income-related
level-up incentives
  Industrial strong district                                 40,000.00
subsidies                                                                               Income-related
  Real economy booster                                          800.00
incentives                                                                              Income-related
  Science and technology                                   100,000.00                   Income-related
project subsidies
  Step-up subsidies                                        100,000.00                   Income-related
 Poverty relief subsidies                                   50,000.00                   Income-related
  SMEs subsidies                                             9,000.00                   Income-related
  VAT incentive subsidies                                   30,000.00                   Income-related
  Subsidies for recruitment of                              38,750.00                   Income-related
veterans
  Zhejiang Cloud-based                 100,000.00                                       Income-related
Benchmark Enterprise
  Epidemic response subsidies          500,000.00                                       Income-related
for foreign trade enterprise
  "Two direct subsidies" for            20,000.00                                       Income-related
small and micro enterprises
  Business cultivation                  10,000.00                                       Income-related
incentives from Shanxi
Finance Bureau
  Information and                      283,500.00                                       Income-related
industrialization management
system certification
  2019 invention patents                  5,000.00                                      Income-related
  Total                               1,215,201.24         591,762.00


 Other Notes:
 □Applicable √Non-applicable
                                               185 / 225
Ningbo Tuopu Group Co., Ltd                                                       Annual Report 2020


 (35) Non-operating expenses
 √Applicable □Non-applicable
                                                                    Unit: Yuan Currency: RMB
                                     Amount                                 Amount included in the
                                                     Amount incurred in
             Item                incurred in the                          current non-recurring profit
                                                      previous period
                                 current period                                     and loss
 Total loss from disposal of           44,105.24             139,437.62                      44,105.24
non-current assets
 Including: Loss on disposal           44,105.24             139,437.62                     44,105.24
of fixed assets
         Loss on disposal of
intangible assets
 Loss from debt
restructuring
 Loss from exchange of
non-monetary assets
 External donation                    466,097.35              52,000.00                    466,097.35
 Special funds for water               88,561.51              64,551.35
conservancy construction
 Others                              1,071,261.55           3,818,502.51                 1,071,261.55
             Total                   1,670,025.65           4,074,491.48                 1,581,464.14

 (36) Income tax expense
 (1). Schedule of income tax expense
 √Applicable □Non-applicable
                                                                  Unit: Yuan Currency: RMB
                                           Amount incurred in the       Amount incurred in previous
                Item
                                             current period                      period
 Income tax expense in the current                    93,867,817.06                   60,522,841.72
period
 Deferred income tax expense                           -13,915,840.31                    8,182,932.82
              Total                                     79,951,976.75                   68,705,774.54

 (2). Adjustment process of accounting profit and income tax expense
 √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
                                      Item                                       Amount incurred in
                                                                                 the current period
 Total profits                                                                         710,086,190.35
 Income tax expense calculated at the statutory/applicable tax rate                    106,512,928.55
 Impact of different tax rates applied to subsidiaries                                   8,556,115.80
 Adjusted impact of income tax in prior periods
 Impact of non-taxable income
 Impact of non-deductible costs, expenses and losses                                     4,803,754.01
 Impact of using deductible losses of deferred income tax assets that have not
been recognized in the previous period
 Impact of deductible temporary differences or deductible losses on
unrecognized deferred income tax assets in the current period
 Impact of additional tax deductions for enterprise research and development           -39,920,821.61
 Others
 Income tax expense                                                                     79,951,976.75

 Other Notes:

                                                186 / 225
Ningbo Tuopu Group Co., Ltd                                                      Annual Report 2020


 □Applicable √Non-applicable

 (37) Other Comprehensive Income
 √Applicable □Non-applicable
 More details are available in“Note VII. 57. Other comprehensive income”

 (38) Cash flow statement items
 (1). Other cash received related to operating activities
 √Applicable □Non-applicable
                                                                   Unit: Yuan Currency: RMB
                 Item                       Amount incurred in the       Amount incurred in previous
                                              current period                      period
  Receipt of temporary loans                          22,053,972.32                   12,213,952.22
  Interest income                                     17,108,552.05                   24,504,258.91
  Government grants                                   76,335,520.04                   57,325,812.03
  Income from compensation and                                                             42,366.70
fines                                                  3,169,158.05
  Others                                               1,689,365.72                      892,793.08
                  Total                              120,356,568.18                   94,979,182.94

 (2). Other cash paid related to operating activities
 √Applicable □Non-applicable
                                                                   Unit: Yuan Currency: RMB
                 Item                       Amount incurred in the     Amount incurred in previous
                                              current period                    period
 Payment of temporary loans                           28,824,851.17                  1,891,089.29
 Transportation expense                                                            135,879,033.92
 Storage expense                                                                    29,408,219.61
 Business hospitality expense                         20,213,916.83                 29,179,853.37
 Repair cost                                          26,285,029.83                 19,652,605.57
 R&D spending                                        148,687,310.33                129,384,072.21
 Travel expense                                        3,239,980.86                  7,515,733.76
 Insurance premium                                     3,745,476.72                  3,784,683.44
 Office expense                                        4,061,233.20                  6,614,027.93
 Vehicle expense                                       5,496,663.42                  5,899,433.33
 Service charge                                       49,183,344.94                 49,884,341.18
 Intermediary fee                                      2,409,261.29                  2,905,434.21
 Packaging fee                                         3,833,817.82                  1,625,847.62
 Utility bill                                          2,460,308.10                  3,262,667.44
 Rent                                                    719,363.07                  2,886,877.27
 Others                                               34,715,604.75                 30,497,806.24
                Total                                333,876,162.33                460,271,726.39

 (3). Other cash received related to investment activities
 □Applicable √Non-applicable

 (4). Other cash paid related to investment activities
 □Applicable √Non-applicable

 (5). Other cash received related to financing activities
 □Applicable √Non-applicable


                                               187 / 225
Ningbo Tuopu Group Co., Ltd                                                           Annual Report 2020


 (6). Other cash paid related to financing activities
 □Applicable √Non-applicable

 (39) Additional information on cash flow statement
 (1). Additional information on cash flow statement
 √Applicable □Non-applicable
                                                                     Unit: Yuan Currency: RMB
                                                               Amount in the         Amount in
                  Additional Information
                                                               current period     previous period
  1. Reconciliation of net profit to cash flows from
operational activities:
  Net Profit                                                     630,134,213.60            460,046,632.02
  Add: provision for impairment of assets                         22,439,872.62             50,422,877.45
  Credit impairment provision                                     19,654,766.99             15,023,695.09
  Depreciation of fixed assets, oil and gas assets,              442,576,190.86            341,112,804.96
productive biological assets
  Depreciation of right-of-use assets
  Amortization of Intangible Assets                                20,545,167.08             19,263,054.98
  Amortization of long-term prepaid expenses                       46,930,675.20             27,942,088.74
  Losses on disposal of fixed assets, intangible assets and        -8,747,482.63              5,522,498.81
other long-term assets (income as in “-”)
  Losses on scrapping of fixed assets (income as in “-”)               44,105.24              139,437.62
  Losses on fair value changes (income as in “-”)
  Financial expenses (income as in “-”)                          14,740,711.65             15,347,394.54
  Losses on investment (income as in “-”)                       -43,244,216.77            -51,436,523.06
  Decrease on deferred income tax assets (increase as in          -17,756,501.07             -6,997,345.49
“-”)
  Increase on deferred income tax liabilities (decrease as             3,840,660.76          15,180,278.31
in “-”)
  Decrease on inventories (increase as in “-”)                -271,657,035.93            -32,905,566.69
  Decrease on operational receivables (increase as in “-”)    -385,860,564.15            110,183,234.16
  Increase on operational payables (decrease as in “-”)        650,045,016.56            270,576,797.96
  Others
  Net cash flow generated by operating activities              1,123,685,580.01          1,239,421,359.40
  2. Major investing and financing activities not
involving cash receipts and payment:
  Conversion of debt into capital
  Convertible corporate bonds due within one year
  Fixed assets under financing lease
  3. Net changes in cash and cash equivalents:
  Closing balance of cash                                        674,866,422.08            715,182,068.12
  Less: opening balance of cash                                  715,182,068.12            731,672,348.04
  Add: closing balance of cash equivalents
  Less: opening balance of cash equivalents
  Net additions to balance of equivalents                         -40,315,646.04            -16,490,279.92


 (2). Net cash receipts from disposal of subsidiaries in this period

 □Applicable √Non-applicable

 (3). Net cash received from disposal of subsidiaries in the current period
 □Applicable √Non-applicable

                                                   188 / 225
Ningbo Tuopu Group Co., Ltd                                                         Annual Report 2020




 (4). Composition of cash and cash equivalents
 √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
                                            Balance at the end of the       Balance at the beginning of
                 Item
                                                    period                         the period
 1. Cash                                                674,866,422.08                   715,182,068.12
 Including: cash on hand                                       8,899.73                        8,113.38
       Bank deposits that can be used                   674,857,522.35                   715,173,954.74
for payment at any time
       Other currency funds that can
be used for payment at any time
       Deposits in the central bank
that can be used for payment
       Deposits in Other Financial
Institutions
       Call loans from Other
Financial Institutions
 2. Cash equivalents
 Including: bond investments due
within three months
 3. Balance of cash and cash                                674,866,422.08               715,182,068.12
equivalents at the end of the period
 Including: cash and cash
equivalents that are restricted for us
by the parent company or subsidiary
within the group

  Other Notes:
  √Applicable □Non-applicable
      “Balance of cash and cash equivalents at the end of the period” as contained in the current cash
flow statement is RMB 112,257,224.37 less than the "monetary funds" at the end of the period as
contained in the consolidated balance sheet, because the note margin deposit for security at RMB
112,257,224.37 is not deemed as cash and cash equivalents.

 (40) Notes to items in the statement of changes in owners' equity
 Give the name of the item “others” adjusting the balance at the end of previous year and the amount of
adjustment:
 □Applicable √Non-applicable
 (41) Assets with restricted ownership or use rights
 √Applicable □Non-applicable
                                                                        Unit: Yuan Currency: RMB
                Item                      Book value at the end of the          Reason for restricted use
                                                     period
 Monetary funds                                           112,257,224.37        Bank Acceptance Draft
                                                                                       Deposit
 Notes receivable                                         296,225,046.21                Pledge
 Inventories
 Fixed assets                                              47,372,168.16               Mortgage
 Intangible assets                                          6,804,936.88               Mortgage
 Receivables financing                                    618,586,352.87                Pledge
                Total                                   1,081,245,728.49                   /


                                                189 / 225
Ningbo Tuopu Group Co., Ltd                                                          Annual Report 2020


 (42) Foreign currency balance at the end of the period
 (1). Foreign currency balance at the end of the period
 √Applicable □Non-applicable
                                                                                             Unit: Yuan
                                     Foreign currency                                Balance converted
                                                            Converted exchange
              Item                 balance at the end of                            to RMB at the end of
                                                                   rate
                                        the period                                  the period
 Monetary funds                                         -                      -            60,893,777.03
 Including: USD                            4,934,280.28                   6.5249            32,195,685.40
      EUR                                    393,352.18                    8.025             3,156,651.24
        CAD                                  726,129.80                   5.1161             3,714,952.67
        AUD                                         0.56                  5.0163                     2.81
        BRL                               17,381,926.34                   1.2557            21,826,484.91
 Accounts receivable                                    -                      -          322,987,297.71
 Including: USD                           32,221,918.03                   6.5249          210,244,792.96
        EUR                                2,464,813.94                    8.025            19,780,131.83
        CAD                               14,340,054.16                   5.1161            73,365,151.09
        GBP                                     3,931.20                  8.8903                34,949.55
        BRL                               15,578,778.60                   1.2557            19,562,272.29
 Long-term loans                                        -                      -
 Including: USD
        EUR
         HKD
 Accounts payable                                     -                        -           75,271,306.14
 Including: USD                            6,098,864.80                   6.5249           39,794,482.93
        EUR                                  996,419.00                    8.025            7,996,262.48
         CAD                               4,963,830.08                   5.1161           25,395,451.07
        BRL                                1,660,515.78                   1.2557            2,085,109.66

 (2). Notes to overseas business entities, overseas business locations, functional currency and the
basis for selection in respect of important overseas business entities should be disclosed; if there is
a change in the functional currency, the reason for the change should be further disclosed.
 √Applicable □Non-applicable
 The Company has seven subsidiaries outside of China, i.e.: Tuopu North American USA Limited,INC,
currently operating in Canada and with Canadian dollars as the functional currency; Tuopu North
American USA Limited, INC, currently operating in the United States and with U.S. dollars as the
functional currency; Tuopu Brasil, currently operating in Brasil and with Brasilian Real as the functional
currency; Tuopu Sweden, currently operating in Sweden and with Swedish krona as the functional
currency; Tuopu International, currently operating in Hong Kong and with Hong Kong dollar as the
functional currency; TUOPU (MALAYSIA) SDN.BHD., currently operating in Malaysia and with
Ringgit as the functional currency; Tuopu USA, LLC,, currently operating in the United States and with
U.S. dollars as the functional currency.

 (43) Hedging
 □Applicable √Non-applicable

 (44) Government subsidies
 (1). General information of government subsidies
 √Applicable □Non-applicable
                                                                     Unit: Yuan     Currency: RMB
                                                                                           Amount
                                                                           Presented
                     Category                           Amount                          included into
                                                                             Item
                                                                                        current profit

                                                190 / 225
Ningbo Tuopu Group Co., Ltd                                                          Annual Report 2020


                                                                                             and loss
  Machine substitution for human project with             4,720,000.00    Deferred            472,000.00
an annual capacity of 700,000 sets of vibration                          income
control products
  Automobile composite fiber production                   1,000,000.00    Deferred            100,000.00
project                                                                  income
  Tuopu Intelligent Mechatronic System                   27,000,000.00    Deferred            983,928.57
Industrial Park Project                                                  income
  Production line transformation project of               4,409,904.00    Deferred            551,238.00
high-performance vibration control system for                            income
cars
  Production and application technology                   7,000,000.00    Deferred            874,999.96
transformation project of lightweight materials                          income
for vehicles
  Technological Transformation Project of                 8,250,992.00    Deferred            794,849.79
Automobile High-Performance Vibration                                    income
control System
  Technological Transformation Project of                 7,794,112.00    Deferred            729,926.93
Automobile Interior and Exterior Trimming                                income
System
  Technological Transformation Project of                 8,085,312.00    Deferred            777,533.25
Automobile Lightweight Control Arms                                      income

  Technological Transformation Project of                 8,443,472.00    Deferred            811,169.86
Automobile Lightweight Parts Production Line                             income
  Technological Transformation Project of                 1,723,800.00    Deferred
Automobile High-Performance Vibration                                    income
control System
  Lightweight auto parts technological                    1,875,120.00    Deferred
transformation project                                                   income
  Digital workshop project with an annual                 3,696,000.00    Deferred
capacity of 120,000 sets of intelligent brake                            income
systems
  Auto parts production and industrial                   90,000,000.00    Deferred          4,500,000.00
automation projects                                                      income
  Technological transformation project for the
                                                                          Deferred
production line of automotive lightweight alloy          10,000,000.00                        973,140.06
                                                                         income
parts with an annual capacity of 300,000 sets
  Automobile high-performance vibration                                   Deferred
                                                          5,564,300.00                         92,738.34
control system production project                                        income
  Shenyang Tuopu Auto Parts Base Project                  2,000,000.00    Deferred            388,888.85
                                                                         income
 Intelligent factory construction project with            1,100,000.00    Deferred            110,000.00
an annual capacity of 2 million sets of                                  income
automotive trimming system
 Technological transformation project of car
roof, carpet assembly and other trimming                                  Deferred
                                                          1,650,000.00                        165,000.00
system with an annual capacity of 1.6 million                            income
sets
 Auto Parts Production Project of Liudong                 1,510,000.00    Deferred             84,279.07
New District                                                             income
 Wuhan Automobile Fabric Production Line                  4,104,000.00    Deferred            369,302.10
Project                                                                  income
 Pinghu Tuopu Auto Parts Production Project              14,470,000.00    Deferred            651,150.00
                                                                         income
 Relocation project with an annual capacity of            1,110,000.00    Deferred             86,798.28

                                                  191 / 225
Ningbo Tuopu Group Co., Ltd                                                             Annual Report 2020


300,000 sets of automotive trimming system                                  income
 Automobile chassis parts project with an                  5,032,438.00      Deferred             103,229.50
annual capacity of 500,000 sets                                             income
 Tuopu Chassis Auto Parts Industry Base                    8,000,000.00      Deferred
Project                                                                     income
 Auxiliary project outside the factory                     7,000,011.00      Deferred             303,202.77
                                                                            income
 Hunan Xiangtan Auto Parts Industry Base                   2,000,000.00      Deferred
Project                                                                     income
 Relocation project with an annual capacity of                 965,300.00    Deferred             110,593.80
300,000 sets of automotive trimming system                                  income
 Technological transformation project of                   3,056,045.00      Deferred             378,110.76
production line for automobile front and rear                               income
axle with annual output of 200,000 sets
 Technological transformation project of                       448,715.00    Deferred              48,688.54
production line with annual capacity of                                     income
300,000 sets of automobile suspension chassis
 Technological transformation project of                   2,133,330.00      Deferred             240,498.68
production line with annual capacity of                                     income
300,000 sets of automobile suspension chassis
 Passenger vehicle chassis suspension project              2,539,990.00      Deferred             163,026.48
with an annual capacity of 500,000 sets                                     income
 Science and technology project subsidies                       60,000.00    Other                 60,000.00
                                                                            income
 Special subsidies for patents                                 182,600.00    Other                182,600.00
                                                                            income
 Foreign economic and trade support funds                      518,600.00    Other                518,600.00
                                                                            income


 R&D patent subsidies                                           72,184.00    Other                 72,184.00
                                                                            income
 Stable employment subsidies                                   522,523.95    Other                522,523.95
                                                                            income
 Tax subsidies                                                 395,862.09    Other                395,862.09
                                                                            income
 Social security premium subsidies                             121,216.54    Other                121,216.54
                                                                            income
 Technology project funds                                  2,103,600.00      Other              2,103,600.00
                                                                            income
 Energy-saving evaluation report subsidies                     130,000.00    Other                130,000.00
                                                                            income
 Incentives for overfulfill production target by               300,000.00    Other                300,000.00
business enterprises                                                        income
 Power bill subsidies                                           50,000.00    Other                 50,000.00
                                                                            income
 Corporate funding subsidies                                     2,000.00    Other                  2,000.00
                                                                            income
  Enterprise transformation and upgrading                      321,600.00    Other                321,600.00
incentives                                                                  income
  Incentive post-subsidies for the                             600,000.00    Other                600,000.00
transformation of scientific and technological                              income
achievements of automotive trimming system
  Technology subsidies                                     1,607,000.00      Other              1,607,000.00
                                                                            income
 "One District, Multiple Parks" Development                    500,000.00    Other                500,000.00

                                                   192 / 225
Ningbo Tuopu Group Co., Ltd                                                          Annual Report 2020


Fund                                                                       income
 Design report grants of initial solution for                 100,000.00    Other              100,000.00
intelligent transformation                                                 income
 VAT exemption for veterans                                     9,000.00    Other                9,000.00
                                                                           income
 Industrial production and capacity expansion             1,700,000.00      Other            1,700,000.00
rewards                                                                    income
 Import discount subsidies                                1,344,164.00      Other            1,344,164.00
                                                                           income
 Information and industrialization                            100,000.00    Other              100,000.00
management system certification                                            income
 Annual fee grants for domestic authorized                      4,680.00    Other                4,680.00
invention patents                                                          income
 Funding grants for science and technology                    795,000.00    Other              795,000.00
plan projects                                                              income
 Strategic emerging industry development
                                                                            Other
funds (recognized by the National Enterprise              1,000,000.00                       1,000,000.00
                                                                           income
Technology Center)
 Talent grants                                                647,650.00    Other              647,650.00
                                                                           income
 Intellectual property project subsidies                       35,600.00    Other               35,600.00
                                                                           income
 2018 invention patent annual fee grants                         720.00     Other                  720.00
                                                                           income
 2018 technology transaction post grants                       59,000.00    Other               59,000.00
                                                                           income
 2019 “Going Global” project grants                         178,500.00    Other              178,500.00
                                                                           income
 Enterprise R&D post-grants                                   892,800.00    Other              892,800.00
                                                                           income
 Subsidies for resumption of work and                     1,144,872.00      Other            1,144,872.00
epidemic response supplies                                                 income
 High-tech Enterprise Award                                   100,000.00    Other              100,000.00
                                                                           income
 Construction fund for slope protection project                30,000.00    Other               30,000.00
in Guang'an High-tech Zone                                                 income
 Statistical funding subsidies granted from                    86,000.00    Other               86,000.00
Economic and Information Bureau                                            income
 2020 Industrial Special Fund Subsidies                       697,900.00    Other              697,900.00
                                                                           income
 “2-year exemption, 3-year collection of                 1,347,700.00      Other            1,347,700.00
corporate income tax by half” government                                  income
subsidies
 Premium investment project award on the "                     50,000.00    Other               50,000.00
Leaderboard" of New District Industrial                                    income
Economy
 High-tech enterprise grants                                  400,000.00    Other              400,000.00
                                                                           income
 2019 pollution source monitoring system                       60,000.00    Other               60,000.00
operation and maintenance subsidies                                        income
 Stable employment subsidies                                  296,701.24                       296,701.24
                                                                           Non-operating
                                                                           income
 Zhejiang Cloud-based Benchmark Enterprise                    100,000.00                       100,000.00
                                                                           Non-operating
                                                                           income
                                                  193 / 225
Ningbo Tuopu Group Co., Ltd                                                          Annual Report 2020


 Epidemic response subsidies for foreign trade               500,000.00                       500,000.00
enterprise                                                                Non-operating
                                                                          income
 "Two direct subsidies" for small and micro                   20,000.00                        20,000.00
enterprises                                                               Non-operating
                                                                          income
 Business cultivation incentives from Shanxi                  10,000.00                        10,000.00
Finance Bureau                                                            Non-operating
                                                                          income
 Information and industrialization                           283,500.00                       283,500.00
management system certification                                           Non-operating
                                                                          income
 2019 invention patents                                        5,000.00                         5,000.00
                                                                          Non-operating
                                                                          income
 Total                                                266,168,814.82                       34,350,267.41

 (2). Refund of government subsidies
 □Applicable √Non-applicable
 (45) Others
 □Applicable √Non-applicable

 VIII. Changes in the scope of consolidation

 1. Business combination not under common control
 □Applicable √Non-applicable

 2. Business combination under the same control
 □Applicable √Non-applicable

 3. Reverse purchase
 □Applicable √Non-applicable




                                                 194 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                  Annual Report 2020




4. Disposal of subsidiaries
Whether there is a situation where a single disposal of the investment in the subsidiary will immediately lead to loss of control
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable

5. Changes in the scope of consolidation due to other reasons
Notes to changes in the scope of consolidation due to other reasons (e.g.: incorporated new subsidiaries, subsidiaries on liquidation) and relevant conditions:
√Applicable □Non-applicable
     1. Two combined entities were added during the reporting period, due to:
     The Company incorporated Ningbo Tuopu Chassis System Co., Ltd. and Tuopu Electric Vehicle Thermal Management System (Ningbo) Co., Ltd., which were
included into the scope of consolidation from the date of establishment.
     2. Two combined entities were decreased during the reporting period, due to:
     The Company struke off its subsidiaries Qingdao Maigao Auto Parts Co., Ltd. and Ningbo Tuopu Drive Technology Co., Ltd. in this period, which were
excluded from the scope of consolidation fromthe date of strike-off.

6. Others
□Applicable √Non-applicable




                                                                               195 / 225
Ningbo Tuopu Group Co., Ltd                                                         Annual Report 2020



 IX. Equity in Other Entities
 1. Equity in Subsidiaries
 (1). Composition of the group
 √Applicable □Non-applicable
                                                             Percentage of
                       Principal                 Nature       Shares (%)
     Name of
                       Business    Registered     of                           Method of Acquisition
    Subsidiary
                         Site       Address     Business    Direct   Indirec
                                                                        t
                       Ningbo       Ningbo                  100.00              Business combination
Tuopu Imp&Ex                                    Trading                        under the same control
p.
 Tuopu Parts           Ningbo       Ningbo                  100.00              Business combination
                                                Trading                        under the same control
 Tuopu Acoustics       Ningbo       Ningbo                  100.00              Business combination
Vibration                                       Trading                        under the same control
 Yantai Tuopu          Yantai       Yantai                  100.00              Business combination
                                                Manufac                        under the same control
                                                turing
 Liuzhou Tuopu         Liuzhou      Liuzhou                 100.00              Business combination
                                                Manufac                        under the same control
                                                turing
 Shenyang Tuopu                                             100.00                 Establishment
                      Shenyang     Shenyang     Manufac
                                                turing
 Tuopu Intelligent     Ningbo       Ningbo                  100.00                 Establishment
Brake                                           Manufac
                                                turing
 Tuopu North           Canada       Canada                   51.00             Business combination
American                                        Trading                         not under the same
                                                                                      control
 Ningbo Qianhui        Ninghai      Ninghai                  51.00             Business combination
                                                Manufac                         not under the same
                                                turing                                control
 Tuopu North           USA          USA          Service              51.00        Establishment
American USA
Limited, INC
 Sichuan Tuopu         Lingshui     Lingshui                100.00                 Establishment
                                                Manufac
                                                turing
 Wuhan Tuopu           Wuhan        Wuhan                   100.00                 Establishment
                                                Manufac
                                                turing
 Pinghu Tuopu          Jiaxing      Jiaxing                                        Establishment
                                                Manufac     100.00
                                                turing
 Shanghai Towin        Shanghai     Shanghai                100.00                 Establishment
                                                Manufac
                                                turing
 Tuopu Industrial      Ningbo       Ningbo                  100.00                 Establishment
Automation                                      Manufac
                                                turing
Tuopu Investment       Ningbo       Ningbo                  100.00                 Establishment
                                                Investm
                                                ent
                                                196 / 225
Ningbo Tuopu Group Co., Ltd                                                                Annual Report 2020


 Yuxiang               Ningbo          Ningbo       Service    100.00                      Establishment
E-commerce
 Tuopu                 Hong         Hong                       100.00                      Establishment
International         Kong         Kong            Investm
                                                   ent
 Baoji Tuopu           Baoji           Baoji                   100.00                      Establishment
                                                   Manufac
                                                   turing
 Taizhou Tuopu         Linhai          Linhai                  100.00                      Establishment
                                                   Manufac
                                                   turing
 Tuopu                 Ningbo          Ningbo                  100.00                      Establishment
Mechatronic                                        Manufac
System                                             turing
 Tuopu Brasil          Brasil          Brasil                      99.96     0.04          Establishment
                                                   Manufac
                                                   turing
 Tuopu Sweden          Sweden          Sweden       R&D                    100.00          Establishment
 Jinzhong Tuopu        Jinzhong        Jinzhong                100.00                      Establishment
                                                   Manufac
                                                   turing
 Shenzhen Towin                                                100.00                      Establishment
                      Shenzhen     Shenzhen        Manufac
                                                   turing
 Zhejiang Towin        Jinhua          Jinhua                  100.00                 Business combination
                                                   Manufac                             not under the same
                                                   turing                                    control
 Sichuan Maigao        Suining         Suining                 100.00                 Business combination
                                                   Manufac                             not under the same
                                                   turing                                    control
 Hunan Tuopu           Xiangtan        Xiangtan                100.00                     Establishment
                                                   Manufac
                                                   turing
 TUOPU                 Malaysia        Malaysia                            100.00          Establishment
(MALAYSIA)                                         Manufac
SDN.BHD.                                           turing
 Tuopu USA,            USA             USA                     100.00                      Establishment
LLC                                                Trading
 Tuopu Chassis         Ningbo          Ningbo                  100.00                      Establishment
                                                   Manufac
                                                   turing
 Tuopu Thermal         Ningbo          Ningbo                  100.00                      Establishment
Management                                         Manufac
                                                   turing

 (2). Important non-wholly owned subsidiaries
 √Applicable □Non-applicable
                                                                             Unit: Yuan      Currency: RMB
                                                Profit and loss                                 Balance of
                       Percentage of                                      Dividends
                                               attributable to                                  minority
    Name of           shares held by                                declared to minority
                                                  minority                                    shareholders'
   Subsidiary            minority                                    shareholders in the
                                             shareholders in the                            equity at the end
                       shareholders                                    current period
                                               current period                                 of the period
 Tuopu North                    49.00%               -398,125.85                               -1,543,869.72
American USA
Limited, INC
                                                   197 / 225
Ningbo Tuopu Group Co., Ltd                                                           Annual Report 2020




 Notes to the percentage of shares held by minority shareholder that is different from the percentage of
voting rights:
 □Applicable √Non-applicable
 Other Notes:
 □Applicable √Non-applicable




                                                198 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                                                 Annual Report 2020




 (3). Main financial information of important non-wholly-owned subsidiaries
 √Applicable □Non-applicable
                                                                                                                                                       Unit: Yuan Currency: RMB
                                        Balance at the end of the period                                                       Balance at the beginning of the period
 Name of
subsidiar      Current                         Total          Current                       Total         Current                         Total          Current                       Total
                            Non-curren                                     Non-curren                                   Non-curren                                    Non-curren
   y           assets                         assets        liabilities                  Liabilities      assets                         assets        liabilities                  Liabilities
                             t assets                                      t liabilities                                 t assets                                     t liabilities
 Tuopu
North
American     17,873,744.6
                              6,467,320.70
                                             24,341,065.3   27,491,819.9
                                                                                         27,491,819.92
                                                                                                         86,433,797.0
                                                                                                                         5,105,967.08
                                                                                                                                        91,539,764.1   93,870,271.6
                                                                                                                                                                                    93,870,271.64
USA                     8                               8              2                                            7                              5              4
Limited,
INC

                                            Amount incurred in the current period                                              Amount incurred in previous period
                                                                   Total           Cash flow                                                         Total         Cash flow
   Name of Subsidiary            Operating                                                                          Operating
                                               Net profit comprehensive from operating                                            Net profit comprehensive from operating
                                  income                                                                             income
                                                                 income            activities                                                      income         activities
 Tuopu North American         394,096,953.97 -812,501.74        -812,501.74       -6,673,583.68                  422,562,875.82 4,729,398.22     4,950,627.86     9,022,087.34
USA Limited, INC




                                                                                          199 / 225
Ningbo Tuopu Group Co., Ltd                                                             Annual Report 2020




 (4). Significant restrictions on the use of group assets and the settlement of group debts
 □Applicable √Non-applicable
 (5). Financial support or other support provided to structured entities included in the scope of
consolidated financial statements
 □Applicable √Non-applicable
 Other Notes:
 □Applicable √Non-applicable
 2. Transactions leading to a change in the share of owner's equity in the subsidiary and the
control over the subsidiary remains
 □Applicable √Non-applicable
 3. Rights and interests in joint ventures or associates
 □Applicable √Non-applicable
 (1). Important joint ventures or associates
 √Applicable □Non-applicable
                                                                         Unit: Yuan Currency: RMB
                                                               Percentage of
 Name        of    Principal                                                      Accounting treatment
                                                Business     Shares Held (%)
joint venture Business         Registered                                        of investment in joint
                                                Nature
or associate         Site       Address                                          ventures or associate
                                                             Direct Indirect
 Tuopu            Ningbo        Ningbo                       50.00               Equity method
Electrical                                   Manufacturing
Appliances
 Ningbo           Ningbo        Ningbo                       50.00               Equity method
Borgers                                      Manufacturing
 Antolin                                                     39.00               Equity method
Tuopu            Chongqing Chongqing Manufacturing

 (2). Main financial information of important joint ventures
 √Applicable □Non-applicable
                                                                         Unit: Yuan Currency: RMB
                                         Balance at the end of the       Balance at the beginning of the
                                     period/Amount incurred in the        period/Amount incurred in
                                             current period                     previous period
                                         Tuopu            Ningbo            Tuopu             Ningbo
                                      Electrical          Borgers         Electrical         Borgers
                                      Appliances                         Appliances
  Current assets                    138,270,376.94 195,623,586.03      118,735,688.53 160,188,647.78
  Including: cash and cash           21,987,735.55     37,219,502.34    20,725,262.95     15,455,285.23
equivalents
  Non-current assets                 36,800,692.85    33,719,670.26     39,174,903.00      38,287,224.08
  Total assets                      175,071,069.79   229,343,256.29    157,910,591.53     198,475,871.86
  Current liabilities                49,632,204.32    73,608,535.10     47,230,496.81      74,005,621.65
  Non-current liabilities
  Total liabilities                  49,632,204.32    73,608,535.10     47,230,496.81      74,005,621.65
  Minority shareholders' equity
  Equity        attributable   to   125,438,865.47   155,734,721.19    110,680,094.72     124,470,250.21
shareholders of the parent
company
  Share of net assets calculated     62,719,432.74    77,867,360.60     55,340,047.36      62,235,125.11
at the percentage of shares held
  Adjusted events                      -143,018.70      -785,497.31       -211,832.55      -2,704,306.72
--Goodwill
                                                200 / 225
Ningbo Tuopu Group Co., Ltd                                                            Annual Report 2020


  --Unrealized profits from           -143,018.70     -785,497.31        -211,832.55      -2,704,306.72
internal transactions
-
-Others
  Book      value    of   equity   62,576,414.04    77,081,863.29      55,128,214.81      59,530,818.39
investment in joint ventures
  Fair     value    of    equity
investment in joint ventures
with public offers
  Operating income                108,952,145.74 401,650,158.77       114,834,878.54     415,941,250.33
  Financial expenses                  -379,571.01       78,053.73        -332,604.61         460,535.38
  Income tax expense                1,757,999.77     1,083,664.74       2,227,985.94       7,646,950.43
  Net profit                       14,758,770.75    31,264,470.98      16,818,130.01      32,815,829.76
  Net profit from discontinued
operations
  Other comprehensive income
  Total comprehensive income       14,758,770.75    31,264,470.98      16,818,130.01      32,815,829.76
  Dividends received from joint
ventures in this year
  (3). Main financial information of important associates
  √Applicable □Non-applicable
                                                                        Unit: Yuan Currency: RMB
                                          Balance at the end of the     Balance at the beginning of the
                                      period/Amount incurred in the      period/Amount incurred in
                                              current period                  previous period
                                         Antolin                          Antolin
                                         Tuopu                            Tuopu
 Current assets                       74,131,960.92                    92,197,475.73
 Non-current assets                    6,611,365.37                    10,122,468.68
 Total assets                         80,743,326.29                   102,319,944.41
 Current liabilities                  53,467,156.43                    75,250,926.16
 Non-current liabilities
 Total Liabilities                    53,467,156.43                    75,250,926.16
 Minority shareholders' equity
 Equity        attributable     to    27,276,169.86                    27,069,018.25
shareholders of the parent
company
 Share of net assets calculated       10,637,706.25                    10,556,917.12
by the percentage of shares held
 Adjusted events
 --Goodwill
 --Unrealized profits from
internal transactions
 --Others
 Book       value     of    equity    10,637,706.25                    10,556,917.12
investment in associates
 Fair      value      of    equity
investment in associates with
public offers
 Operating income                    115,226,112.33                   115,671,649.03
 Net profit                              207,151.61                       285,664.43
 Net profit from discontinued
operations
 Other comprehensive income

                                                 201 / 225
Ningbo Tuopu Group Co., Ltd                                                                 Annual Report 2020


 Total comprehensive income              207,151.61                            285,664.43
 Dividends received from
associates in this year

 (4). Summary of financial information of unimportant joint ventures and associates
 □Applicable √Non-applicable

 (5). Notes to significant restrictions on the ability of joint ventures or associates to transfer funds
to the Company
 □Applicable √Non-applicable
 (6). Excess losses suffered by joint ventures or associates
 □Applicable √Non-applicable

 (7). Unconfirmed commitments related to joint venture investment
 □Applicable √Non-applicable

 (8). Contingent liabilities related to investment in joint ventures or associates
 □Applicable √Non-applicable

 4. Important joint operations
 □Applicable √Non-applicable

 5. Equity in structured entities not included in the scope of consolidated financial statements
 Notes to structured entities not included in the scope of the consolidated financial statements:
 □Applicable √Non-applicable
 6. Others
 □Applicable √Non-applicable

  X. Risks related to financial instruments
  √Applicable □Non-applicable
       The Company faces various financial risks in the course of its operations: credit risk, liquidity risk
and market risk (including exchange rate risk, interest rate risk and other price risks). The said financial
risks and the risk management policies adopted by the Company to reduce these risks are described
below:
       The Board of Directors is responsible for planning and establishing the risk management structure
applicable to the Company, laying down the risk management policies and guidelines, and supervising
the implementation of risk management measures. The Company has laid down some risk management
policies to identify and analyze the risks exposed to it. These risk management policies clearly identify
specific risks, ranging from market risk, credit risk to liquidity risk management. The Company assesses
the market environment and changes in its business activities at regular intervals in order to decide
whether to update the risk management policy and system or not. Its risk management is carried out by
the financial department in accordance with the policies approved by the Board of Directors. Financial
Division will identify, evaluate and avoid related risks by maintaining a close cooperation with other
business units within the Company. The internal audit division conducts regular audits on risk
management control and procedures, and reports the audit results to the Auditing Committee of the
Company.
       The Company carries out the diversification of risks in financial instruments through appropriate
diversified investment and business portfolios, and prepares appropriate risk management policies to
reduce the risk concentrated in a single industry, specific region or specific counterparty.
       (1) Credit risk
       Credit risk refers to the risk of the company's financial losses due to the failure of the counterparty
to perform its contractual obligations.

                                                  202 / 225
Ningbo Tuopu Group Co., Ltd                                                                Annual Report 2020


       The credit risk exposed to the Company mainly arises from monetary funds, notes receivable,
accounts receivable, accounts receivable financing, other receivables, as well as those debt instrument
investments and derivative financial assets that are not included in the scope of impairment assessment
and are measured at fair value and whose changes are included in the current profit and loss. On the
balance sheet date, the book value of the Company's financial assets has represented its maximum credit
risk exposure.
       The monetary funds owned by the Company are mainly bank deposits deposited in well-reputated
state-owned banks with high credit ratings and other large and medium-sized listed banks. In the opinion
of the Company, there is no significant credit risk, and there will be almost no critical loss caused by
bank defaults.
       The Company lays down relevant policies to control credit risk exposure in respect of notes
receivable, accounts receivable, financing receivables and other receivables. The Company assesses the
credit profile of each customer and defines the credit term based on its financial standing, the possibility
of obtaining guarantees from a third party, credit record and other factors such as current market
condition. The Company will monitor the credit record of each customer at regular intervals. For those
found with poor credit record, the Company will maintain its overall credit risk to the extent controllable
by written demand, shortening or cancellation of credit term.
       (2) Liquidity risk
       Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation of
settlement by cash or other financial assets.
       The Company's policy is to ensure that there is sufficient cash to repay the liabilities due. The
liquidity risk is under the concentrated control of the Company's Financial Department. Through
monitoring the balance of cash and securities cashable at any time and rolling forecasting the cash flow
in the next 12 months, the Financial Department ensures that the Company has sufficient funds to repay
its debts under all reasonable predictions. And it will continue to monitor whether the Company
complies with the provisions of the borrowing agreement and obtains commitments from major financial
institutions to provide sufficient reserve funds to meet its funding needs, whether short term or long
term.
       (3) Market risk
       The market risk of financial instruments refers to the risk of fluctuation at fair value of financial
instruments or future cash flows with the change of market prices, including exchange rate risk, interest
rate risk and other price risks.
       1. Interest rate risk
       The interest rate risk refers to the risk in which the fair value or future cash flow of financial
instruments changes due to the change of market interest rate.
       Interest-bearing financial instruments applicable to fixed interest rates and floating interest rates
bring the Company up to fair value interest rate risk and cash flow interest rate risk respectively. The
Company ascertains the ratio of fixed interest rates to floating interest rate instruments based on the
market environment, and maintains an appropriate portfolio of fixed and floating interest rate
instruments at regular intervals. If necessary, the Company will adopt interest rate swap instruments to
hedge interest rate risk.
       On December 31, 2020, if other variables remain the same, the borrowing interest rate calculated
by floating interest rate rises or falls by 100 base points, the Company's net profit will decrease or
increase by RMB 4,003,788.89. In the opinion of the management,100 base points can reasonably reflect
the reasonable range of possible changes in interest rates in the next year.
       2. Exchange rate risk
       Exchange rate risk refers to the risk that the fair value of financial instruments or future cash flows
will fluctuate due to changes in foreign exchange rates.
       The Company will try its best to match the revenues with the expenses in foreign currency, to
lower the exchange rate risk. In addition, the Company may also sign forward foreign exchange
contracts or currency swap contracts to avoid exchange rate risks. In the current period and the previous
period, the company did not sign any forward foreign exchange contracts or currency swap contracts.
       The exchange rate risk faced with by the Company is mainly from financial assets and liabilities in
USD. The amounts of assets and liabilities in foreign currencies and converted into RMB are presented
as below:
                          Balance at the end of the period           Balance at the beginning of the year
         Item
                             US        Other        Total         US             Other foreign         Total
                                                  203 / 225
Ningbo Tuopu Group Co., Ltd                                                                   Annual Report 2020


                        dollars       foreign                    dollars         currencies
                                     currencie
                                         s
  Monetary funds 32,195,685.40 28,698,091.63 60,893,777.03 22,817,284.07              8,210,455.99
                                                                                                   31,027,740.0
                                                                                                              6
      Accounts         210,244,792. 112,742,504. 322,987,297. 122,207,238.
                                                                                     98,880,833.02
                                                                                                   221,088,071.
     receivable                 96           75           71           03                                   05

      Accounts         39,794,482.9 35,476,823.2 75,271,306.1 11,245,861.8
                                                                                     99,380,742.65
                                                                                                   110,626,604.
      payable                     3            1            4            2                                  48
                       282,234,961. 176,917,419. 459,152,380. 156,270,383.                         362,742,415.
        Total                   29           59           88           92
                                                                                    206,472,031.66
                                                                                                            59
       On December 31, 2020, if all other variables remain the same, if the exchange rate of RMB
against any of foreign currencies (principally USD, Euro, CAD, BRL) appreciates or depreciates by 5%,
the Company will Increase or decrease the net profit by RMB 15,430,488.43. In the opinion of the
management, 5% can reasonably reflect the reasonable range of possible changes in the exchange rate of
RMB against USD in the next year.
       3. Other price risks
       Other price risk refers to the risk that the fair value or future cash flow of financial instruments
will fluctuate due to changes in market prices other than exchange rate risk and interest rate risk.
       Other price risks exposed to the Company mainly arise from investments in various equity
instruments, and there is a risk of changes in the price of equity instruments.

 XI. Disclosure of Fair Values
 1. Fair values of the assets and liabilities at the end of the period
 √Applicable □Non-applicable
                                                                               Unit: Yuan      Currency: RMB
                                                       Fair value at the end of the period
                                     Fair value           Fair value           Fair value
            Item
                                  measurement at      measurement at       measurement at             Total
                                   the first-level    the second-level      the third-level
 I. Constant
measurement at fair
value
 (I) Trading Financial                 176,111.00                                                   176,111.00
Assets
 1. Financial assets at fair           176,111.00                                                   176,111.00
value through profit or
loss in this period
 (1) Investment in debt
instruments
   (2) Investment in                   176,111.00                                                   176,111.00
equity instrument
 3)Derivative Financial
Assets
 2. Designated financial
assets that are measured
at fair value and whose
changes are included in
the current profit and loss
 (1) Investment in debt
instruments
 (2) Investment in equity
instrument
 (II) Investment in Other
Creditor's Rights
 (III) Investment in Other
Equity Instruments
                                                     204 / 225
Ningbo Tuopu Group Co., Ltd                                                     Annual Report 2020


  (IV) Investment
Property
  1. Land use rights for
lease
  2. Rented buildings
  3. Land use rights held
and prepared to transfer
after appreciation
  (V) Biological assets
  1. Consumable
biological assets
  2. Productive Biological
Assets
  (VI) Receivables                                             742,203,122.21     742,203,122.21
Financing
  Total assets constantly
                               176,111.00                      742,203,122.21     742,379,233.21
measured at fair value
  (VIII) Transactional
financial liabilities
  1. Financial liabilities
that are measured at fair
value and whose changes
are included in the
current profit and loss
  Including: issued trading
bonds
          Derivative
Financial Liabilities
          Others
  2. Designated Financial
Liabilities Measured in
Fair Value with Changes
Recorded into Current
Profit and Loss
  Total amount of
liabilities constantly
measured at their fair
values
  II. Non-continuous fair
value measurement
  (1) Holding-for-sale
assets
  Total assets that are
not continuously
measured at fair value
  Total liabilities not
continuously measured
at fair value

 2. Determination basis for the market price of continuous and non-continuous first-level fair
value measurement projects
 □Applicable √Non-applicable
 3. Qualitative and quantitative information on the valuation techniques used and important
parameters for continuous and non-continuous second-level fair value measurement items
 □Applicable √Non-applicable
                                            205 / 225
Ningbo Tuopu Group Co., Ltd                                                              Annual Report 2020


 4. Continuous and non-sustainable third-level fair value measurement projects, qualitative and
quantitative information on valuation techniques and important parameters used
 □Applicable √Non-applicable
 5. Continuous third-level fair value measurement items, adjustment information between the
book value at the beginning of the period and that at the end of the period and sensitivity analysis
of unobservable parameters
 □Applicable √Non-applicable
 6. Continuous fair value measurement items, if there is a conversion between levels occurred in
the current period, the reasons for the conversion and the policies for determining the time point
of the conversion
 □Applicable √Non-applicable
 7. Changes in valuation technique in the current period and reasons for the changes
 □Applicable √Non-applicable
 8. The fair value of financial assets and financial liabilities not measured at fair value
 □Applicable √Non-applicable

 9. Others
 □Applicable √Non-applicable
 XII.     Related Parties and Related-party Transactions
 1. The parent company
 √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: HKD
                                                                        Percentage of    Percentage of the
   Name of parent                    Nature of        Registered      the Company’s    Company’s voting
                       Registered
     company                         business          capital       shares held by the rights held by the
                        address
                                                                      parent company     parent company
 MECCA
INTERNATIONAL   Hong
                                                     1,000,000.00                65.75                  65.75
HOLDING (HK) Kong                 Investment
LIMITED

       The ultimate controlling party of the Company is Wu Jianshu.
 2. Subsidiaries of the Company
 More details of the subsidiaries of the Company are available in the notes.
 √Applicable □Non-applicable
       More details of the subsidiaries of the Company are available in “Note IX. Equity in Other
Entities”.
 3. Joint ventures and associates of the Company
 More details of the subsidiaries of the Company are available in the note.
 √Applicable □Non-applicable
       More details of important joint ventures or associates of the Company are available in “Note IX.
Equity in Other Entities”.
 The situation of other joint ventures or associates that have related party transactions with the company
during the current period or the balance of the related party transactions with the Company in the
previous period is listed as follows.
 √Applicable □Non-applicable
    Name of Joint Ventures or Associates                       Relationship with the Company
 Tuopu Electrical Appliances                                    Joint venture of the Company
 Ningbo Borgers                                                 Joint venture of the Company
 Antolin Tuopu                                                    Associate of the Company

 Other Notes
                                                 206 / 225
Ningbo Tuopu Group Co., Ltd                                                             Annual Report 2020


 √Applicable □Non-applicable
 4. Other Related Parties
 √Applicable □Non-applicable
                 Name of Other Related Party                         Relationship between Other Related
                                                                           Party and the Company
 Ninghai Jinsuoer Auto Parts Factory (hereinafter referred to      A company controlled by the niece of
as "Ninghai Jinsuoer")                                            the actual controller of the Company
 Ninghai Jinsuoer Auto Parts Factory (hereinafter referred to      A company controlled by the niece of
as "Ninghai Jinsuoer")                                            the actual controller of the Company
 Ninghai Saipu Rubber and Plastic Parts Factory (hereinafter       A company controlled by the niece of
referred to as "Ninghai Saipu")                                   the actual controller of the Company
                                                                   A company controlled by the young
 Ninghai Jinxin Packaging Co., Ltd. (hereinafter referred to as
                                                                  sister of the actual controller of the
"Ninghai Jinxin")
                                                                  Company
                                                                  An officer’s brother-in-law holds 40%
 Ninghai Zhonghao Plastic Products Co., Ltd. (hereinafter
                                                                  of the shares and serves as an executive
referred to as "Ninghai Zhonghao")
                                                                  director of the company
                                                                   A company controlled by the elder
 Ninghai Xidian Qingqing Plastic Factory (hereinafter
                                                                  sister and brother-in-law of the officer
referred to as "Ninghai Qingqing")
                                                                  of the Company
                                                                   A company controlled by the niece’s
 Ningbo Hongke Auto Parts Co., Ltd. (hereinafter referred to
                                                                  husband of the actual controller of the
as "Ningbo Hongke")
                                                                  Company
 Ningbo Gloyel Intelligent Technology Co. Ltd. (hereinafter        Other company controlled by the
referred to as "Gloyel Intelligent”)                             actual controller of the Company
 Ningbo Gloyel Motor Technology Co., Ltd. (hereinafter             Other company controlled by the
referred to as "Ningbo Gloyel”)                                  actual controller of the Company

        Note: Ningbo Gloyel Intelligent Technology Co. Ltd. was formerly known as “Ningbo Gloyel
Precision Machinery Co., Ltd.” before October 2020.

 5. Related party transactions
 (1). Related-party transactions of purchase and sale of goods, rendering and acceptance of labor
services
 List of purchase of goods/acceptance of labor services
                                                        √Applicable □Non-applicable Currency: RMB
                                  Related-party           Amount incurred in       Amount incurred in
       Related party
                                   transaction            the current period         previous period
 Ninghai Jinsuoer             Material                          11,279,423.57             11,977,259.01
 Ninghai Saipu                Material                            2,352,171.89             2,466,379.94
 Ninghai Jinxin               Material                            8,944,151.65             4,216,114.02
 Tuopu Electrical             Material                               67,985.88             1,307,347.51
Appliances
 Ninghai Zhonghao             Material                          12,318,377.23             11,145,970.34
 Ninghai Qingqing             Material                            6,178,391.42             5,385,836.82
 Ningbo Borgers               Material                          11,172,984.21             12,901,108.60
 Ningbo Hongke                Material                          69,767,683.10             57,495,964.42
 Gloyel Intelligent           Equipment                             575,203.54             1,491,777.87
 Gloyel Motor                 Material, equipment               33,186,089.13             11,977,626.48
 Total                                                         155,842,461.62            120,365,385.01

 List of sale of goods/rendering of labor services
 □Applicable √Non-applicable
                                                                     Unit: Yuan       Currency: RMB

                                                 207 / 225
Ningbo Tuopu Group Co., Ltd                                                            Annual Report 2020


                                 Content of related         Amount incurred in     Amount incurred in
         Related party
                                   transaction              the current period      previous period
 Tuopu Electrical                                                   5,173,521.78          5,313,812.77
Appliances                    Goods, labor services,
                              et al.
 Ningbo Borgers                Goods, labor                      108,487,714.27          108,828,334.13
                              services, et al.
 Antolin Tuopu                 Goods, labor                       10,605,090.50                90,805.25
                              services, et al.
 Gloyel Intelligent            Goods, labor                           51,403.31                48,708.26
                              services, et al.
 Total                                                           124,317,729.86          114,281,660.41

 Notes to related-party transactions in the purchase and sale of goods, rendering and acceptance of labor
services
 □Applicable √Non-applicable
 (2). Related trusteeship management/contracting and entrusted management/outsourcing
 List of trusteeship management/contracting of the Company:
 □Applicable √Non-applicable
 Related trusteeship/contracting
 □Applicable √Non-applicable
 List of entrusted management/outsourcing
 □Applicable √Non-applicable
 Related management/outsourcing
 □Applicable √Non-applicable
 (3). Related leases
 The Company as landlord:
 √Applicable □Non-applicable
                                                                       Unit: Yuan Currency: RMB
                                                     Rental income
                                                                              Rental income recognized
   Name of tenant       Kind of lease assets    recognized in the current
                                                                                  in previous period
                                                         period
 Ningbo Borgers        Houses and                              619,266.06                      633,551.77
                      structures
 Gloyel Motor          Houses and                              198,165.14                      198,165.14
                      structures
 Total                                                         817,431.20                      831,716.91

  The Company as tenant:
  □Applicable √Non-applicable
  Affiliated leases
  □Applicable √Non-applicable
  (4). Related guarantees
  The Company as guarantor
  □Applicable √Non-applicable
  The Company as guaranteed party
  □Applicable √Non-applicable
  Notes to related guarantees
  □Applicable √Non-applicable
  (5). Borrowed funds from related parties
□Applicable √Non-applicable
  (6). Asset transfer and debt restructuring of related parties
  √Applicable □Non-applicable

                                                208 / 225
Ningbo Tuopu Group Co., Ltd                                                                      Annual Report 2020


 (7). Remuneration of key management members
 √Applicable □Non-applicable
                                                                         Unit: Yuan Currency: RMB
                                              Amount incurred in the current       Amount incurred in
                   Item
                                                        period                      previous period
 Remuneration from key                                         10,694,500.00               10,535,000.00
management members

 (8). Other related-party transactions
 □Applicable √Non-applicable
 6. Accounts receivable and payable of related parties
 (1). Items of receivable
 √Applicable □Non-applicable
                                                                              Unit: Yuan Currency: RMB
                                                                              Balance at the beginning of the
                                     Balance at the end of the period
                     Related                                                              period
    Item
                     party                                  Bad debt                               Bad debt
                                     Book balance
                                                           provision         Book balance         provision
                                      29,293,492.21        1,464,674.61       26,408,959.54       1,320,447.98
Accounts
                  Ningbo
receivable
                  Borgers
                   Tuopu               2,638,160.39          131,908.02           2,534,988.97         126,749.45
Accounts
                  Electrical
receivable
                  Appliances
Accounts           Antolin             2,326,696.22          116,334.81            102,609.93             5,130.50
receivable        Tuopu
Accounts           Gloyel                                                          216,000.00            10,800.00
receivable        Motor
Other             Gloyel              16,200,000.00
non-current       Intelligent
assets

 (2). Items of payable
 √Applicable □Non-applicable
                                                                                  Unit: Yuan Currency: RMB
           Item                    Related party          Book balance at the            Book balance at the
                                                          end of the period           beginning of the period
 Accounts payable               Ningbo Borgers                  5,202,246.00                      11,296,473.75
 Accounts payable               Ninghai Jinsuoer                5,293,108.17                       4,467,887.02
 Accounts payable               Ninghai Saipu                   1,108,699.60                         989,169.44
 Accounts payable               Ninghai Jinxin                  5,191,550.61                       1,950,672.19
                                Tuopu Electrical                   160,365.20                        812,456.00
 Accounts payable
                               Appliances
  Accounts payable              Ninghai Zhonghao                   4,949,234.52                      4,552,653.23
 Accounts payable               Ninghai Qingqing                   2,135,445.47                      1,614,046.32
 Accounts payable               Ningbo Hongke                     35,419,299.60                     28,377,443.19
 Accounts payable               Gloyel Motor                       7,111,998.16                      2,518,944.01
 Accounts payable               Gloyel Intelligent                                                     155,500.00

 7. Related-party commitments
 □Applicable √Non-applicable
 8. Others
 □Applicable √Non-applicable
                                                      209 / 225
Ningbo Tuopu Group Co., Ltd                                                          Annual Report 2020


 XIII. Share-based payment
 1. General situation of share-based payment
 □Applicable √Non-applicable
 2. Particulars of equity-settled share-based payment
 □Applicable √Non-applicable
 3. Particulars of cash-settled share-based payment
 □Applicable √Non-applicable
 4. Modification and termination of share-based payment
 □Applicable √Non-applicable
 5. Others
 □Applicable √Non-applicable

 XIV. Commitments and Contingencies
 1. Important commitments
 √Applicable □Non-applicable
 Important external commitments, nature, and amount on the balance sheet date
        (1) On 13 July 2020, the Company signed a loan contract with the Export-Import Bank of China
Ningbo Branch, with the granted credit line at RMB 210 million, under the loan contract number (2020)
Jin Chu Yin (Yong Xin He) No. 1-061, the length of maturity of short-term loans is up to 24 months, the
revolving use of credit loans is allowed, with the length of each sum up to 12 months. The form of
guarantee is setting houses and structures on mortgage, under the guarantee contract number (2020) Jin
Chu Yin (Yong Zui Xin Di) No. 1-004. As of December 31, 2020, the short-term loan balance under the
contrtact is RMB 210 million, the original value and net value of properties on mortgage is RMB
118,839,780.32 and RMB 47,372,168.16 respectively; the original value and net value of land on
mortgage is RMB 10,659,462.00 and RMB 6,804,936.8 respectively.
      (1) On 27 August 2020, the Company signed a loan contract with the Export-Import Bank of
China Ningbo Branch, with the granted credit line at RMB 190 million, under the loan contract number
(2020) Jin Chu Yin (Yong Xin He) No. 1-068, the length of maturity of short-term loans is up to 24
months, the revolving use of credit loans is allowed, with the length of each sum up to 12 months. The
form of guarantee is setting houses and structures on mortgage, under the guarantee contract number
(2020) Jin Chu Yin (Yong Zui Xin Di) No. 1-004. As of December 31, 2020, the short-term loan balance
under the contrtact is RMB 190 million, the original value and net value of properties on mortgage is
RMB 118,839,780.32 and RMB 47,372,168.16 respectively; the original value and net value of land on
mortgage is RMB 10,659,462.00 and RMB 6,804,936.88 respectively.
        (3) On April 18, 2016, the Company signed the state-owned construction land use rights
assignment contract No. 3302062016A21006 with Ningbo Bureau of Land and Resources, and signed
the industrial land investment agreement with Administration Committee of Ningbo Economic &
Technological Development Zone (NETD). Under the said industrial land investment agreement, if the
Company fails to pay taxes at RMB 20.00/mu in any year within the period from October 31, 2019 to
October 31, 2022, it must pay RMB 5 million as penalty to Ningbo Economic & Technological
Development Zone (NETD).
      On July 21, 2016, the Company signed the "Irrevocable Bank Guarantee" at the maximum sum of
RMB 5 million with Bank of China Ningbo Branch in the beneficiary of Administration Committee of
Ningbo Economic & Technological Development Zone (NETD), under the bank guarantee number
GC1901316000107, with the term of bank guarantee effective from 1 May 2022 to 30 April 2023. The
bank guarantee specifies that the Company must pay a penalty up to RMB 5 million to Administration
Committee of Ningbo Economic & Technological Development Zone (NETD), upon the time in which
the Bank of China Ningbo Branch receives the original written notice of notice in printed form and the
proof of default from Administration Committee of Ningbo Economic & Technological Development
Zone (NETD).
        (4) Tuopu Parts signed the note pool cooperation agreement 33100000 Zhe Shang Piao Chi Zi
2017 No.01470, the asset pool cooperation agreement 33100000 Zhe Shang Zi Chan Chi Zi 2017
No.01470, and the asset pool pledge guarantee contract 33100000 Zhe Shang Zi Chan Chi Zi 2017
No.01471 with China Zheshang Bank Beilun Branch. As of December 31, 2020, there were bank
                                               210 / 225
Ningbo Tuopu Group Co., Ltd                                                            Annual Report 2020


acceptance notes in a sum of RMB 497,822,268.70 under pledge and accordingly, the notes payable in a
sum of RMB 492,826.372.62 were issued.
      (5) Tuopu Acoustics Vibration signed the note pool cooperation agreement 33100000 Zhe Shang
Piao Chi Zi 2017 No.01472, the asset pool cooperation agreement 33100000 Zhe Shang Zi Chan Chi Zi
2017 No.01472, and the asset pool pledge guarantee contract 33100000 Zhe Shang Zi Chan Chi Zi 2017
No.01473 with China Zheshang Bank Beilun Branch. As of December 31, 2020, there were bank
acceptance notes in a sum of RMB 296,225,046.21 under pledge and accordingly, the notes payable in a
sum of RMB 363,014,210.16 were issued.
       (6) On July 5, 2018, Tuopu Parts signed the note pool cooperation and note pledge agreement
05101PC20188002 with Bank of Ningbo Beilun branch, and 7 November 2018, signed the additional
note pool cooperation and note pledge agreement 05101PC20188002 with Bank of Ningbo Beilun
branch. As of December 31st, 2020, there were bank acceptance notes in a sum of RMB 94,235,731.30
under pledge and accordingly, the notes payable in a sum of RMB 60,772,323.25 were issued.
       (7) Tuopu Intelligent Brake signed the note pool cooperation agreement 9411202000000006 and
the maximum pledge contract ZZ9411202000000006 with SPDB Ningbo Development Zone
Sub-branch. As of December 31st, 2020, the bank acceptance notes in a sum of RMB 19,150,000.00
were put under pledge and the notes payable in a sum of RMB 10,258,954.96 were issued.
       (8) Ningbo Qianhui signed the maximum pledge contract 06001PC20198005 with Bank of
Ningbo Ninghai Branch. As of December 31, 2020, there were bank acceptance notes in a sum of RMB
7,378,352.87 under pledge and a part of notes receivable were discharged and converted to the bank
deposits under pledge in a sum of RMB 3,085,111.32 upon the maturity and accordingly, the notes
payable in a sum of RMB 9,768,277.75 were issued.

 2. Contingencies
 (1). Important contingencies existing on the balance sheet date
 □Applicable √Non-applicable
 (2). Even if the Company has no important contingencies to be disclosed, also state:
 □Applicable √Non-applicable
 3. Others
 □Applicable √Non-applicable

 XV. Events after the Balance Sheet Date
 1. Important non-adjusting events
 □Applicable √Non-applicable
 2. Profit distribution
 √Applicable □Non-applicable
                                                                     Unit: Yuan      Currency: RMB
 Proposed distribution of profits or                                                    189,552,010.38
dividends
 Profits or dividends declared after                                                     189,552,010.38
deliberation and approval

       According to the resolution passed at the 6th meeting of the fourth Board of Directors of the
Company dated April 19, 2021, the profit distribution plan laid down for 2020 is: with a total of
1,102,046,572 shares on the date of plan announcement as the base number, RMB 1.72 per 10 shares
(tax included) will be distributed to all shareholders as cash dividends. Then the gross amount of cash
dividends proposed for distribution is RMB 189,552,010.38 (tax included), in 30.17% of the net profit
attributable to shareholders of public company. The remaining undistributed profit rolls over to the next
year. The Company will not convert any public reserve funds into additional share capital or issue any
bonus shares this year. The said profit distribution plan remains to be submitted to the 2020 general
meeting of the Company for consideration.
  3. Sales return
  □Applicable √Non-applicable
                                                211 / 225
Ningbo Tuopu Group Co., Ltd                                                          Annual Report 2020


  4. Notes to Other Events after the Balance Sheet Date
  □Applicable √Non-applicable
  VI. Other Significant Events
  1. Correction of previous accounting errors
  (1). Retrospective restatement
  □Applicable √Non-applicable
  (2). Prospective application
  □Applicable √Non-applicable
  2. Debt restructuring
  □Applicable √Non-applicable
  3. Replacement of assets
  (1). Exchange of non-monetary assets
  □Applicable √Non-applicable
  (2). Exchange of other assets
  □Applicable √Non-applicable
  4. Annuity plan
  □Applicable √Non-applicable
  5. Discontinuing operation
  □Applicable √Non-applicable
  6. Segment information
  (1). Determination basis and accounting policies of the reportable segment
  □Applicable √Non-applicable
  (2). Financial information of the reportable segment
  □Applicable √Non-applicable
  (3). If the Company has no reportable segments or cannot disclose the total assets and total
liabilities of individual reportable segment, state the reason
  □Applicable √Non-applicable
  (4). Other notes
  □Applicable √Non-applicable
  7. Other significant transactions and event that have an impact on investors' decisions
  □Applicable √Non-applicable
  8. Others
  □Applicable √Non-applicable
  XVII. Notes to the Main Items of the Financial Statements of the Parent Company
  1. Accounts receivable
  (1). Disclosure by age
  √Applicable □Non-applicable
                                                                    Unit: Yuan Currency: RMB
                        Aging                                Book balance at the end of the period
  Within 1 year
  Including: sub-items within 1 year
  Within 1 year                                                                        1,738,258,183.77
  Subtotal within 1 year                                                               1,738,258,183.77
  1 to 2 years                                                                           152,316,371.05
  2-3 years                                                                               75,010,434.91
  Over 3 years
  3 to 4 years
  4 to 5 years
                                               212 / 225
Ningbo Tuopu Group Co., Ltd                Annual Report 2020


 Over 5 years                                    323,215.01
 Bad debt provision                         -124,970,891.78
                       Total               1,840,937,312.96




                               213 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                                  Annual Report 2020




 (2). Categorical disclosure by provision for bad debts
 √Applicable □Non-applicable
                                                                                                                                     Unit: Yuan Currency: RMB
                                          Balance at the End of the Period                                           Balance at the Beginning of the Period
                                Book Balance           Bad Debt Provision                                     Book Balance           Bad Debt Provision
       Category                                                     Accrued                Book                                                  Accrued     Book
                              Amount   Percentage     Amount Proportion                   Value             Amount   Percentage     Amount     Proportion   Value
                                          (%)                        (%)                                                (%)                        (%)
 Bad debt provision
accrued based on
single item
 Including:


 Bad debt provision
accrued based on          1,965,908,204.74       100.00   124,970,891.78       6.36   1,840,937,312.96   1,330,943,270.95       100.00   79,921,671.01       6.00   1,251,021,599.94
single item
 Including:
 Bad debt provision
accrued based on          1,965,908,204.74       100.00   124,970,891.78       6.36   1,840,937,312.96   1,330,943,270.95       100.00   79,921,671.01       6.00   1,251,021,599.94
aging combinations
          Total           1,965,908,204.74   /            124,970,891.78   /          1,840,937,312.96   1,330,943,270.95   /            79,921,671.01   /          1,251,021,599.94




                                                                                  214 / 225
Ningbo Tuopu Group Co., Ltd                                                            Annual Report 2020




 Bad debt provision accrued based on single item:
 □Applicable √Non-applicable
 Bad debt provision accrued based on combinations
 √Applicable □Non-applicable
 Accrued items based on combinations: accounts receivable with bad debt provision by aging portfolio
                                                               Unit: Yuan Currency: RMB
                                                Balance at the End of the Period
         Name                                                                         Accrued
                          Accounts Receivable         Bad Debt Provision
                                                                                  Proportion(%)
 Within 1 year                 1,738,258,183.77               86,912,909.19                      5.00
 1 to 2 years                    152,316,371.05               15,231,637.11                     10.00
 2 to 3 years                     75,010,434.91               22,503,130.47                     30.00
 3 to 5 years                                                                                  100.00
 Over 5 years                        323,215.01                  323,215.01                    100.00
         Total                 1,965,908,204.74              124,970,891.78

 Recognition criteria for and notes to bad debt provision by combinations
 □Applicable √Non-applicable
 If the bad debt provision is made by the general expected credit loss model, e refer to the disclosure of
other receivables:
 □Applicable √Non-applicable
 (3). Bad debt provision
 √Applicable □Non-applicable
                                                                     Unit: Yuan Currency: RMB
                                         Amount Changed in the Current Period
                    Balance at                                                             Balance at the
   Category      the Beginning                                                  Other        End of the
                                     Provision     Withdrawal
                  of the Period                                  Write-off Changes             Period
                                                    or Reversal
 Bad debt
provision
accrued          79,921,671.01 45,049,220.77                                              124,970,891.78
based on
combinations
     Total       79,921,671.01 45,049,220.77                                              124,970,891.78

 Significant withdrawal or reversal amount of provision for bad debts in the current period:
 □Applicable √Non-applicable
 (4). Accounts receivable actually written off in the current period
 □Applicable √Non-applicable
 Write-off of significant accounts receivable
 □Applicable √Non-applicable
 (5). Accounts receivable of the top five closing balances collected by debtors
 √Applicable □Non-applicable

                                                 Balance at the End of the Period
    Name of Entity             Accounts              Proportion in Total Accounts           Bad Debt
                              Receivable                    Receivable (%)                 Provision
  No.1                        423,965,566.97                                   21.57      21,198,278.35
  No.2                        379,908,659.48                                   19.32      18,995,432.97
  No.3                        361,078,264.66                                   18.37      20,217,547.57

                                                215 / 225
Ningbo Tuopu Group Co., Ltd                                                              Annual Report 2020



                                                  Balance at the End of the Period
    Name of Entity               Accounts             Proportion in Total Accounts           Bad Debt
                               Receivable                     Receivable (%)                Provision
  No.4                         216,857,080.61                                    11.03     10,842,854.03
  No.5                         142,887,408.14                                     7.27      9,663,608.14
          Total               1,524,696,979.86                                  77.56      80,917,721.06


 (6).Accounts receivable derecognized due to the transfer of financial assets
 □Applicable √Non-applicable
 (7). Amount of assets and liabilities formed by the transfer of accounts receivable and continued
involvement
 □Applicable √Non-applicable

 Other Notes:
 □Applicable √Non-applicable
 2. Other Receivables
 Presentation of items
 √Applicable □Non-applicable
                                                                        Unit: Yuan Currency: RMB
                                            Balance at the end of the         Balance at the beginning of
                  Item
                                                    period                           the period
 Interest receivable
 Dividend receivable
 Other Receivables                                        76,146,034.58                     49,355,223.60
                Total                                     76,146,034.58                     49,355,223.60

 Other Notes:
 □Applicable √Non-applicable

 Interest receivable
 (1). Category of interest receivable
 □Applicable √Non-applicable
 (2). Important late payment interest
 □Applicable √Non-applicable

  (3). Particulars of bad debt provision
  □Applicable √Non-applicable
  Other Notes:
  □Applicable √Non-applicable
  Dividend receivable
  (4). Dividend Receivable
  □Applicable √Non-applicable
  (5). Important dividend receivable with an aging over 1 year
  □Applicable √Non-applicable
  (6). Particulars of bad debt provision
□Applicable √Non-applicable
                                                  216 / 225
Ningbo Tuopu Group Co., Ltd                                                              Annual Report 2020


 applicable
 (7). Particulars of bad debt provision
 □Applicable √Non-applicable
Other Notes:
 □Applicable √Non-applicable
 Other Receivables
 (1). Disclosure by aging
 √Applicable □Non-applicable
                                                                       Unit: Yuan Currency: RMB
                        Aging                                    Book Balance at the End of the Period
Within 1 year
Including: sub-item within 1 year
Within 1 year                                                                               50,728,275.68
Subtotal within 1 year                                                                      50,728,275.68
1 to 2 years                                                                                20,371,000.00
2 to 3 years                                                                                11,745,400.00
Over 3 years                                                                                 3,496,231.71
3 to 4 years
4 to 5 years
Over 5 years                                                                                    205,800.00
Provision for bad debts                                                                     -10,400,672.81
                       Total                                                                 76,146,034.58

(2). Categorical disclosure by provision for bad debts
√Applicable□Non-applicable
                                                                   Unit: Yuan Currency: RMB
       Nature of Funds                  Book balance at the end of         Book balance at the
                                                the period               beginning of the period
Temporary borrowings                                   84,615,981.71                  50,568,981.71
Petty cash funds                                           88,700.00                      84,000.00
Security deposit                                           19,250.00                  13,948,225.00
Others                                                  1,822,775.68                   1,485,232.55
              Total                                    86,546,707.39                  66,086,439.26

(2). Categorized by the nature of funds
√Applicable □Non-applicable
                                                                       Unit: Yuan Currency: RMB
                              Phase 1            Phase 2                Phase 3
                                             Expected credit          Expected credit
                          Expected
    Bad Debt                               loss throughout the     loss throughout the          Total
                       credit loss in
    Provision                              duration (no credit       duration (credit
                        the next 12
                                               impairment            impairment has
                          months
                                                occurred)               occurred)
 Balance        on     16,731,215.66                                                        16,731,215.66
January 1, 2020
 Balance of the
current period on
January 1, 2020
 --Transfer     to
Phase 2
 --Transfer     to

                                                  217 / 225
Ningbo Tuopu Group Co., Ltd                                                             Annual Report 2020


Phase 3
 --Transfer    to
Phase 2
 --Transfer    to
Phase 1
 Provision made
in the current
period
 Reversal in the         6,330,542.85                                                        6,330,542.85
current period
 Write-off in the
current period
 Write-off in the
current period
 Other changes
Balance on
December 31,           10,400,672.81                                                        10,400,672.81
2020

  Notes to significant changes in the book balance of other receivables that have changed in the current
period:
  □Applicable √Non-applicable
  Amount of bad debt provision in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly:
  □Applicable √Non-applicable
  (4). Particulars of bad debt provision
  √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
                          Balance at         Amount Changed in the Current Period             Balance at
       Category        the Beginning                 Withdrawal                   Other the End of the
                        of the Period Provision or Reversal Write-off Changes                  Period
  Accounts             16,731,215.66               6,330,542.85                            10,400,672.81
receivable with
bad debt accrued
based on aging
portfolio
         Total         16,731,215.66               6,330,542.85                            10,400,672.81

 Bad debt provision in the current period with significant amount of withdrawal or reversal:
 □Applicable √Non-applicable
 (5). Particulars of other receivables actually written off in the current period
 □Applicable √Non-applicable
 (6). Particulars of other receivables of the top five closing balances collected by debtors
 √Applicable □Non-applicable
                                                                      Unit: Yuan Currency: RMB
                                                                       Proportion in
                                                                                         Balance of bad
                                    Balance at                          total other
                    Nature of                                                          debt provision at
                                  the end of the        Aging       receivables at the
Name of Unit          funds                                                              the end of the
                                      period                        end of the period
                                                                                             period
                                                                            (%)
 Shanghai          Temporary 53,115,981.71              1 to 4                   61.37      8,194,589.03
Towin             borrowings                            years
 Hunan             Temporary 31,500,000.00             Within 2                  36.40      1,622,500.00
Tuopu             borrowings                            years

                                                 218 / 225
Ningbo Tuopu Group Co., Ltd                                                         Annual Report 2020


 Liu               Other           455,000.00        Within 2                0.53          200,100.00
Hongsong                                             years
 Li Dongmei        Other           255,800.00        Within 1                0.30          229,800.00
                                                      year
 Xu Longhui        Other           153,500.00         1 to 2                 0.18           14,375.00
                                                     years
     Total              /       85,480,281.71           /                  98.78       10,261,364.03

  (7). Accounts receivable related to government subsidies
□Applicable √Non-applicable
  (8). Other accounts receivable derecognised due to transfer of financial assets
  □Applicable √Non-applicable
  (9). Amount of assets and liabilities generated due to transfer of other receivables and continued
involvement
  □Applicable √Non-applicable
  Other Notes:
  □Applicable √Non-applicable




                                                219 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                     Annual Report 2020




 3. Long-term Equity Investment
 √Applicable □Non-applicable
                                                                                                                                Unit: Yuan Currency: RMB
                                                         Balance at the end of the period                          Balance at the beginning of the period
                   Item                                            Impairment                                                    Impairment
                                               Book balance                             Book value         Book balance                              Book value
                                                                    provision                                                     provision
 Investments in subsidiaries                 3,921,478,960.48                        3,921,478,960.48    3,311,887,755.92                         3,311,887,755.92
 Investments in joint ventures and             150,295,983.58                          150,295,983.58      125,215,950.32                           125,215,950.32
associates
                  Total                      4,071,774,944.06                       4,071,774,944.06     3,437,103,706.24                        3,437,103,706.24

 (1). Investments in subsidiaries
 √Applicable □Non-applicable
                                                                                                                                  Unit: Yuan   Currency: RMB
                                                                                                                                Impairment      Balance at the end
                                      Balance at the
                                                            Increased in         Decreased in       Balance at the end      provision accrued    of the period of
        Invested Entity              beginning of the
                                                           current period       current period       of the period            in the current       impairment
                                          period
                                                                                                                                  period            provision
 Tuopu Imp&Exp.                        178,081,940.48                                                   178,081,940.48
 Tuopu Parts                           196,984,594.91                                                   196,984,594.91
 Tuopu Acoustics Vibration             184,685,004.03                                                   184,685,004.03
 Yantai Tuopu                           62,800,000.00                                                    62,800,000.00
 Liuzhou Tuopu                         100,000,000.00                                                   100,000,000.00
 Shenyang Tuopu                         10,000,000.00                                                    10,000,000.00
 Tuopu Intelligent Brake                20,000,000.00                                                    20,000,000.00
 Ningbo Qianhui                         31,210,000.00                                                    31,210,000.00
 Sichuan Tuopu                          20,000,000.00                                                    20,000,000.00
Qingdao Maigao                           2,800,000.00        17,200,000.00        20,000,000.00
 Wuhan Tuopu                           150,000,000.00                                                   150,000,000.00
 Pinghu Tuopu                          208,000,000.00                                                   208,000,000.00
Shanghai Towin                          10,000,000.00                                                    10,000,000.00
 Tuopu Industrial Automation            17,700,000.00                                                    17,700,000.00
                                                                             220 / 225
Ningbo Tuopu Group Co., Ltd                                                                                                                          Annual Report 2020




 Tuopu Investment                              100,000.00                                                           100,000.00
 Yuxiang E-commerce                          3,300,000.00            200,000.00                                   3,500,000.00
 Qudong Technology                           6,000,000.00                                 6,000,000.00
 Baoji Tuopu                                18,980,000.00                                                        18,980,000.00
 Taizhou Tuopu                              50,000,000.00        14,650,000.00                                   64,650,000.00
 Tuopu Mechatronic System                1,031,750,000.00       426,050,000.00                                1,457,800,000.00
 Tuopu Brasil                               32,623,203.41                                                        32,623,203.41
 Jinzhong Tuopu                             11,900,000.00          1,900,000.00                                  13,800,000.00
 Shenzhen Towin                             53,653,013.09                                                        53,653,013.09
 Zhejiang Towin                            571,320,000.00                                                       571,320,000.00
 Sichuan Maigao                            290,000,000.00                                                       290,000,000.00
 Hunan Tuopu                                50,000,000.00                                                        50,000,000.00
 Tuopu USA, LLC                                                  35,091,204.56                                   35,091,204.56
 Tuopu Chassis                                                  107,500,000.00                                  107,500,000.00
 Tuopu Thermal Management                                        33,000,000.00                                   33,000,000.00
            Total                        3,311,887,755.92       635,591,204.56          26,000,000.00         3,921,478,960.48

 (2). Investments in joint ventures and associates
 √Applicable □Non-applicable
                                                                                                                                  Unit: Yuan        Currency: RMB
                                                                    Decrease/Increase in the current period

                                                            Investment                                                                                      Balance of
                  Balance at                                                 Adjustme                    Cash
                                                             profit and                                               Provision            Balance at      impairment
  Invested           the             Investme    Investme                      nt on        Other     dividends
                                                                loss                                                     for              the End of       provision at
   Entity       Beginning of             nt         nt                         other      changes      or profit                  Other
                                                            recognized                                               impairment           the Period        the end of
                 the Period           Increase   Decrease                    comprehe    in equity   declared to
                                                             under the                                                 accrued                              the period
                                         d           d                         nsive                  distribute
                                                               equity
                                                                              income
                                                              method
 I. Joint ventures
 Tuopu
Electrical           55,128,214.81                            7,448,199.22                                                                 62,576,414.03
Appliances
 Ningbo              59,530,818.39                           17,551,044.91                                                                 77,081,863.30

                                                                                   221 / 225
Ningbo Tuopu Group Co., Ltd                                             Annual Report 2020




Borgers
 Subtotal         114,659,033.20   24,999,244.13               139,658,277.33
 II. Associates
 Antolin           10,556,917.12      80,789.13                 10,637,706.25
Tuopu
 Subtotal          10,556,917.12      80,789.13                 10,637,706.25
     Total        125,215,950.32   25,080,033.26               150,295,983.58




                                                   222 / 225
Ningbo Tuopu Group Co., Ltd                                                              Annual Report 2020




 4. Operating Income and Operating Cost
 √Applicable □Non-applicable
                                                                       Unit: Yuan       Currency: RMB
                                  Amount incurred in the current
                                                                       Amount incurred in previous period
           Item                             period
                                   Income               Cost               Income                Cost
 Main business                3,596,392,949.37 2,699,235,104.32       3,260,143,299.90    2,382,543,990.84
operations
 Other business                 216,195,678.50    135,286,014.40       211,308,530.65       138,755,303.77
operations
          Total               3,812,588,627.87   2,834,521,118.72     3,471,451,830.55    2,521,299,294.61

 (2). Income generated by contracts
 □Applicable √Non-applicable
 (3). Notes to discharge of obligations
 □Applicable √Non-applicable
 (4). Notes to allocation to remaining discharge of obligations
 □Applicable √Non-applicable
 5. Investment income
 √Applicable □Non-applicable
                                                                      Unit: Yuan      Currency: RMB
                                                             Amount incurred in      Amount incurred in
                         Item
                                                             the current period       previous period
  Long-term equity investment income measured by                   150,000,000.00
cost method
  Long-term equity investment income measured by                    25,080,033.26            24,507,700.52
equity method
  Investment income from disposal of long-term                    -12,827,681.96
equity investment
  Investment income of trading financial assets
during the holding period
  Dividend income from other equity instrument
investments during the holding period
  Interest income from debt investment during the
holding period
  Interest income from other debt investments during
the holding period
  Investment income from disposal of trading
financial assets
  Investment income from the disposal of other
equity instrument investments
  Investment income from disposal of debt
investments
  Investment income from the disposal of other debt
investments
  Investment income from wealth management                          18,164,183.51            25,407,939.14
products
                        Total                                     180,416,534.81             49,915,639.66

 6. Others
 □Applicable √Non-applicable

                                                 223 / 225
Ningbo Tuopu Group Co., Ltd                                                            Annual Report 2020


 XVIII. Additional Information
 1. Current non-recurring profit and loss schedule
 √Applicable □Non-applicable
                                                                          Unit: Yuan     Currency: RMB
                                       Item                                           Amount         Note
  Gains and losses from disposal of non-current assets                                8,703,377.39
  Approval beyond authority, or without formal approval document, or
incidental tax rebates, deducts and exempts
  Government subsidies included in the current profit and loss, but
closely associated with the regular business operations of the Company,
                                                                                                     XI、
except for government subsidies that are consistent with national                   34,350,267.41
policies and continuously granted at a fixed quota or amount under                                  VII、84
certain national standard
  Payment for the use of funds charged from non-financial enterprises
that is included in current profit and loss
  Income generated from the investment cost of the Company in
acquiring subsidiaries, associates and joint ventures that is less than the
fair value of the identifiable net assets held by the invested entity at the
acquisition of investment
  Gains and losses from exchange of non-monetary assets
  Gains and losses from the engagement of others in investment or
management
  Provisions for impairment of various assets due to force majeure
factors including natural disasters
  Gains and losses from restructuring of debts
  Expenses incurred in enterprise restructuring, including those incurred
in staff placement and integration
  Gains and losses from the part of transactions whose prices are clearly
unfair in excess of the fair value
  Net profits and losses for the current period from the beginning of the
period to the date of the merger arising from a business combination
under the same control
  Profits and losses generated from contingent events that are unrelated
to the regular business operations of the Company
  Profits and losses resulting from the changes in fair value for holding
trading financial assets, derivative financial assets and trading financial
liabilities, derivative financial liabilities and investment income from
disposal of trading financial assets, derivative financial assets, trading          18,164,183.51
financial liabilities, derivative financial liabilities and other obligatory
right investments, except for valid hedging businesses associated with
the regular business operations of the Company
  Reversal of the receivables and contract assets depreciation reserves for
separate impairment test
  Gains and losses from external entrusted loans
  Profits and losses generated from a change in the fair value of
investment real estates that are subsequently measured by the fair value
model
  Impact of one-off adjustment to the current profit and loss under the
requirements of taxation, accounting and other laws and regulations on
the current profit and loss
  Custody fee income from entrusted operations
  Non-operating income and expenses other than the above                              2,813,550.60
  Other gains and losses items that fit the definition of non-recurring
gains and losses
  Impact of income tax                                                             -10,201,281.57

                                                 224 / 225
Ningbo Tuopu Group Co., Ltd                                                            Annual Report 2020


 Impact of minority equity                                                           -312,026.70
                                   Total                                           53,518,070.64

 For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement
on Information Disclosure for Companies Offering Their Securities to Public - Non-recurring Gains and
Losses, or non-recurring gains and losses items listed in the said document defined as recurring ones,
state the reasons.
 □Applicable √Non-applicable

 2. ROE and EPS
 √Applicable □Non-applicable
                                        Weighted                                 EPS
 Profit for the reporting period
                                    Average ROE (%)             Basic EPS                 Diluted EPS
 Net profit attributable to
common shareholders of the                        8.29                      0.60                        0.60
Company
 Net profit attributable to
common shareholders of the
                                                  7.58                      0.54                        0.54
Company after deducting
non-recurring gains and losses

 3. Differences between international and Chinese accounting standards
 □Applicable √Non-applicable

 4. Others
 □Applicable √Non-applicable




            Section XII Documents Available for Reference


     Directory of       Financial statements affixed with the signatures and seals of the legal
     Documents         representative of the Company, the officer in charge of accounting work and
    Available for      accounting institution
     Reference
     Directory of       Original audit report affixed with the seal of the accounting firm and the
     Documents         signature and seal of CPAs
    Available for
     Reference
     Directory of       All original company documents and announcements disclosed on the website
     Documents         designated by CSRC during the reporting period
    Available for
     Reference
                                                                                   Chairman: Wu Jianshu
                                                Date of Submission to Board of Directors: April 20, 2021


 Revisions
 □Applicable √Non-applicable



                                                 225 / 225