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620,890,219.47 in 2020, after a statutory surplus reserve at RMB 62,089,021.95 is withdrawn at 10% of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
