Stock Code: 601689 Abbr.: Tuopu Group
Ningbo Tuopu Group Co., Ltd.
Semi-annual Report
2021
August 2021
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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. This semi-annual report has not yet been audited.
IV. Jianshu Wu, a person in charge of the Company, Tieyang Hong, 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
No profit distribution or conversion of public reserve funds into additional share capital is made in
this reporting period
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
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 III Discussion and Analysis of Business Conditions" under this report.
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XI. Other
√Applicable □Non-applicable
On 28 August 2020, China Securities Regulatory Commission (CSRC) approved the private
offering of A-shares of the Company by issuing the “Approval on private offering of shares by Ningbo
Tuopu Group Co., Ltd.” (Zheng Jian Permit [2020] No.1982).
On 23 February 2021, the Company completed this private offering of shares and go through the
recording, custody and restricted sales procedures in relation to additional shares in this private offering
at the premises of China Securities Depository and Clearing Corporation Limited Shanghai Branch.
In this private offering, the Company issued 47,058,823 ordinary shares at a price of RMB 42.50/share,
the total amount of raised funds is RMB 1,978,417,846.74.
The restricted period for the shares subscribed by the intended subjects is 6 months from the end of
the private offering. These shares will be available for trading on August 23, 2021. In case of legal
holidays or rest days, it will be postponed to the next immediately trading day.
This report is prepared in Chinese and English and if there is any disprepancy between two texts,
the Chinese text shall apply.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Contents
Section I Definitions ................................................................................................................................... 5
Section II Company Profile and Key Financial Indicators.......................................................................... 5
Section III Discussion and Analysis of Operation Conditions .................................................................... 8
Section IV Corporate Governance ............................................................................................................ 23
Section V Environmental and Social Responsibility................................................................................. 24
Section VI Significant Events ................................................................................................................... 32
Section VII Changes in Shares and Shareholders .................................................................................. 39
Section VIII Information about Preference Shares ................................................................................... 48
Section IX Information of Corporate Bonds ............................................................................................. 48
Section X Financial Report ....................................................................................................................... 49
(1) Full text and extracts of this semi-annual report affixed with the signature of
the company's legal representative and common seal.
(2) Financial statements signed and sealed by the legal representative of the
Catalogue of Files for company, the officer in charge of accounting work and the person in charge of
Future Inspection the accounting institution.
(3) Original and manuscript of all company documents and announcements that
are disclosed on the information disclosure media designated by the company
during the reporting period
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Section 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, 2021 to June 30, 2021
Board of Directors, Board of Refers to Board of Directors, Board of Supervisors, General Meeting
Supervisors, General Meeting of Shareholders of Ningbo Tuopu Group Co., Ltd.
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 Ningbo Tuopu Group Co., Ltd.
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 Jianshu Wu
II. Contact Person and Contact Information
Security of the Board Representative of Securities Affairs
Name Mingzhen Wang Yuchao Gong
Contact Address 268 Yuwangshan Rd, Beilun 268 Yuwangshan Rd, Beilun
District, Ningbo District, Ningbo
Tel. 0574-86800850 0574-86800850
Fax 0574-86800877 0574-86800877
E-mail wmz@tuopu.com gyc@tuopu.com
III. General Information Summary
Registered Address of the Company 268 Yuwangshan Rd, Daqi Street, Beilun District, Ningbo,
Zhejiang
Change History of Registered Address On 16 June 2020, the company address was changed from
“215 Huangshan West Road, Beilun, Ningbo, Zhejiang” to
“268 Yuwangshan Rd, Daqi Street, Beilun District,
Ningbo, Zhejiang”
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
Search index of changes during the reporting NA
period
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IV. Information Disclosure and Location
The Media Selected by the Company for
Disclosure
Website Designated by CSRC for Publishing SSE website (www.sse.com.cn)
Semi-annual Report
Location for Annual Report of the Company Office of Board Secretary
Search index of changes during the reporting NA
period
V. Overview of Stock Information
Stock Type Stock Exchange Stock Abbreviation Stock Code Stock Abbreviation
Before Change
A-share Shanghai Stock Tuopu Group 601689 -
Exchange
VI. Other Related Information
√Applicable □Non-applicable
VII. Key Accounting Data and Financial Indicators over the Past Three Years
(1) Key Accounting Data
Unit：Yuan Currency：RMB
During this reporting Increase/decrease
Figures in previous
Key Accounting Data period compared with
period
(January-June) previous year (%)
Operating income 4,916,747,063.20 2,562,015,814.84 91.91
Net profit attributable to
shareholders of the listed 459,702,187.79 215,983,238.50 112.84
Company
Net profit attributable to
shareholders of the listed
444,689,918.25 197,851,324.09 124.76
company after deducting
non-recurring gains and losses
Net cash flow generated by
745,334,877.96 487,393,567.66 52.92
operational activities
Increase/Decrease
at the end of the
End of this reporting current year
End of previous year
period compared with the
end of the previous
year (%)
Net assets attributable to
shareholders of the listed 10,037,497,070.47 7,786,994,893.67 28.90
company
Total assets 15,616,389,881.17 12,115,228,519.89 28.90
(2) Key Financial Indicators
During this Figures
Increase/decrease
reporting in
Key Financial Indicators compared with
period previous
previous year (%)
(January-June) period
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Basic Earnings per Share (RMB/Share) 0.42 0.20 110.00
Diluted Earnings per Share (RMB/Share) 0.42 0.20 110.00
Basic Earnings per Share after deducting
0.41 0.19 115.79
non-recurring gains and losses (RMB/Share)
Weighted Average ROE Increased by
4.81 2.93
1.88%
Weighted Average ROE after deducting Increased by
4.65 2.68
non-recurring gains and losses (%) 1.97%
Notes to the key accounting data and financial indicators over the previous three years at the end of the
reporting period
√Applicable □Non-applicable
The operating income for the current period increased by 91.91% over the previous period, which is
attributed to a substantial increase in NEV customers during the current period. The net profit, basic EPS
and diluted EPS attributable to shareholders of listed companies increased by 112.84%, 110.00% and
110.00% respectively over the previous period, which is attributed to the expansion of sales scale and
the increase in operating income.
IX. Differences in Accounting Data under Chinese and International Accounting Standards
□Applicable √Non-applicable
IX. Non-recurring Gains and Losses Items and Amounts
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Non-recurring Gains and Losses Items Amount Note (if
applicable)
Gains and losses from disposal of non-current assets -1,258,747.17
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 Note X, VII, 84
closely associated with the regular business operations of the
Company, except for government subsidies that are consistent with 13,938,042.57
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 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
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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,
1,711,141.42
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 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 3,641,696.58
Other gains and losses items that fit the definition of non-recurring
gains and losses
Impact of minority equity -56,934.88
Impact of income tax -2,962,928.98
Total 15,012,269.54
X. Other
□Applicable √Non-applicable
Section III Discussion and Analysis of Management
I. Main business operations, business model and profile of industry during the reporting period
(1) Main business operations
The Company is a modular supplier engaged in R&D, production and sales of automobile core
parts and its main product lines include dampers, interior trims, chassis products, automobile electronics,
and thermal management system.
During the reporting period, the Company’s main business by industry, product, and region is listed
below:
Unit:Yuan Currency: RMB
Main business operations by industry
Gross Increase/Decr Increase/Decr Increase/Decr
By Operating Operating
profit ease of ease of ease of gross
industry income cost
rate operating operating cost profit rate
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(%) income over over the over the
the previous previous year previous year
year (%) (%) (%)
Automob 4,771,583,403. 3,848,796,98 Decreased by
19.34 92.86 97.39
ile parts 09 0.15 1.85%
Main business operations by product
Increase/Decr Increase/Decr Increase/Decr
Gross ease of ease of ease of gross
Operating Operating profit operating operating cost profit rate
By product
income cost rate income over over the over the
(%) the previous previous year previous year
year (%) (%) (%)
AVS 1,701,953,814 1,291,943,0 Decreased by
24.09 68.60 73.93
Products .51 66.33 2.33%
Interior 1,529,285,656 1,286,788,6 Decreased by
15.86 77.02 80.78
trims .54 66.00 1.74%
Chassis 890,104,120.9 748,079,805 Decreased by
15.96 68.92 69.13
products 5 .64 0.10%
Mechatroni 59,520,323. Decreased by
80,898,354.46 26.43 9.65 12.48
cs 30 1.84%
Thermal
569,341,456.6 462,465,118
manageme 18.77 NA NA NA
3 .89
nt system
Main business operations by region
Increase or decrease of
By
Operating income in the current period operating income over the
region
previous period (%)
Domestic 3,500,559,144.09 98.27
Overseas 1,271,024,259.00 79.39
(2) Industry updates
In the first half of 2021, the global automotive market drove to the lane of recovery. According to
data from MarkLines Global Automobile Information Platform, in the period of January 2021 to June
2021, the global automobile production and sales exceeded 40 million units, with a YoY growth of over
25%. In which, the cumulative sales of NEVs reached 2.5468 million units, in 6.3% of the global
automotive market sales.
The production and sales of NEVs still outperforms fuel vehicles, both the month-on-month and
year-on-year rates can maintain rapid growth and break the record high. According to statistics from the
China Association of Automobile Manufacturers and the Ministry of Public Security, from January to
June 2021, the production and sales of NEVs in Chinese market reached 1.215 million and 1.206 million
untis respectively, with YoY growth of two folds. The production and sales increased by 94.4% and
92.3% respectively over the same period in 2019. As of the end of June 2021, the car parc of NEVs
reached 6.03 million units. In the first half of 2021, the number of registered NEVs was 1.103 million
units, with a YoY growth of 234.9%, an increase of 74.9% over the first half of 2019, breaking the
record high. The number of registered NEVs accounts for 7.8% of total registered units.
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In the first half of 2021, as the global auto market is recovering, it is also impacted by short supply
of chips, raw material prices and rising freight rates. At present, uncertain factors cannot completely
eliminated.
II．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
are subject to the horizontal flat management with sales activities standing in the core, for
market-oriented construction of the organization, pool resources and make quick response; under the
pyramid organization, business units 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
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“recruiting and promoting members on their merits”, the Company is committed to building a
competitive management team. The Company has established an integrated, specific and open financial
indicator system to transform officers from managers to operators and entrepreneurs.
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 has prospectively programmed
the NEV track and is rolling out the "2+3" industrial mapping: automobile NVH vibration control
system, vehicle acoustic sets and lightweight chassis products, thermal management system, and
intelligent driving system.
Chassis products 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. Chassis products is
composed of sub-frames, AVS products, 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,
performance matching, and product calibration, which would in turn substantially reduce the R&D
workload of carmakers and bring value added 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
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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 in 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,
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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.
Under the capacity request and the forecasts, the Company currently has 1,500 mu 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.
III. Discussion and Analysis of Operation Conditions
In the first half of 2021, the automotive industry was impacted by several factors such as shortage
of chips, skyrocketing material price, and rising freight rates. Owing to the prospective programming of
the NEV industry, pooled efforts in the expansion of product line and customer group, and many orders
received, the Company maintained the fast growth rate and earned revenue at RMB 4,916,747,100, an
increase of 91.91％; its net profit attributed to the parent company was RMB 459,702,200, an increase
of 112.84%.
As the shortage of chips is expected to ease up in the second half of the year and the peak season
comes, coupled with the rapid release of key models from key clients, and the batch supply of new
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products to FORD, RIVIAN and other new clients, it is expected that revenue and profits will maintain a
high growth rate and the future outcome is about to release quickly in the second half of the year.
In the first half of 2021, the Company will concentrate on the following tasks:
(1) Marketing and sales.
As a platform-based company accessible to many product lines, the Company has implemented
Tier0.5 model with success. This model features a plurality of automotive components at higher amounts,
which can greatly improve efficiency and reduce costs for clients.
With this model accepted by intelligent EV enterprises, the Company has established strategic
partnerships with some car makers and solicited many orders. In particular, the value of components per
vehicle partnered with RIVIAN is up to RMB 11,000. The Company initiated some products such as
lightweight chassis products for key models along with Chonqqing Jinkang, and initiated some products
related to thermal management system along with Huawei.
Thanks to broad product line, R&D capacity, fast response and other integrated factors in the field
of NEV, the Company received many orders in the first half of the year, which in turn paves the road for
fast-track sustainable development in the future.
(2) New project development.
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, and is pacing up the R&D and validation of V2.0 heat pump
assemblies.
In joint development of digital QC technology partnered with some clients, the Company readily
built up the capacity for the volume supply of integrated heat pump assemblies, maintained the
zero-defect quality level, received good reviews from clients, and paved the road for soliciting more
follow-up orders.
Lightweight chassis is a product extensively used on NEVs, the Company is equipped with some
technologies in relation with lightweight chassis and maintains the privileged presence in the industry
and first-mover advantage. The aluminum alloy one-piece vacuum casting chassis was approved by
clients and supplied in batches, and the aluminum alloy casting welded chassis was approved by some
clients including FORD and RIVIAN and supplied in batches.
Ongoing efforts are made to hurry in the verification and matching of intelligent brake system and
steering system, and to seek approval of clients. Ongoing efforts are made to make materials, process
and equipment of dampers and vehicle acoustic sets in line with the NEV requirements.
(3) Capacity layout.
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With respect to new orders, the Company has paced up the capacity layout. The Company is
accelerating the construction of Xiangtan Base, Phase II, Phase III, Phase IV, Phase V bases in Ningbo
Hangzhou Bay New Area, and the production base in Yinzhou, Ningbo, in order to meet the surging
orders. The Company set up new factories in Shanghai, Huzhou, and Xi'an in order to render better
services to its clients.
Given the fact that the Company is receiving more orders for chassis, integrated heat pump
assemblies and interior trims, the maximum value of components per vehicle is about RMB 6,000, the
Company made further investments in Poland and accelerated the building of production capacity in
order to render better services to clients. To reduce tariffs and distribution cost, render better services to
clients and support global platform project, the Company paced up the preparation for Mexican factory
at the client request, the Phase 1 project investment at USD 150 million is intended for capacity build-up
of lightweight chassis, thermal management, and interior trims. If the designed capacity of the above
project can be reached, the Company anticipates greater economic benefits.
(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) Photovoltaic business.
The Company is highly aware of eco-friendly development and plans to construct 150MW
distributed photovoltaic power station on available roofs, which not only delivers good economic
benefits, but also contributes to carbon peak and neutrality.
Significant changes in operating conditions of the Company during the reporting period, as well as
events that significantly impact its operating conditions during the reporting period and are
expected to have a significant impact in the future
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
IV. Main business operations during the reporting period
(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 current Amount in previous Change as
period period percentage (%)
Operating income 4,916,747,063.20 2,562,015,814.84 91.91
Operating cost 3,890,647,152.66 1,972,469,869.51 97.25
Cost of sales 67,811,133.02 48,374,902.80 40.18
Overhead expenses 138,616,680.48 100,232,074.78 38.30
Financial expenses -875,186.94 14,651,080.49 -105.97
R&D cost 233,873,710.58 165,130,113.43 41.63
Net cash flow from operating
745,334,877.96 487,393,567.66 52.92
activities
Net cash flows from investing
-1,866,786,551.76 -167,283,521.77 NA
activities
Net cash flow from financing
2,153,875,320.02 -227,474,369.47 NA
activities
Note to the reason for changes in operating income: mainly due to a substantial increase in the orders
placed by NEV clients during the current period.
Note to the reason for changes in operating cost: mainly due to the year-on-year increase in operating
income for the current period.
Note to the reason for changes in cost of sales: mainly due to a substantial increase in operating income
during the current period, and an increase in sales service fees and business entertainment expenses.
Note to the reason for changes in overhead expenses: mainly due to the increase in management staff
and salary increase in the current period.
Note to the reason for changes in financial expenses: mainly due to a substantial increase in interest
income during the current period.
Note to the reason for changes in R&D expenses: mainly due to the continuous increase of the Company
in R&D and innovation efforts during the current period, and an increase in R&D investment.
Note to the reason for changes in net cash flow from operating activities: mainly due to a substantial
increase in cash received from sales of goods and provision of services during the current period.
Note to the reason for changes in net cash flows from investment activities: mainly due to a substantial
increase in cash paid for the purchase and construction of fixed assets, intangible assets and other
long-term assets during the current period.
Note to the reason for the change in net cash flow from financing activities: mainly due to the receipt of
funds raised by private offering of shares during the current period.
2 Particulars of major changes in the business type, profit composition or source of profit
of the Company during the current period
□Applicable √Non-applicable
(2) Note to major changes in profits caused by operations other than main operations
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(3) Analysis of assets and liabilities
√Applicable □Non-applicable
1. Assets and liabilities
Unit：Yuan
Change in the
Amount at Amount at amount at the
the end of the end of end of the
Amount at the end the current previous current period
Amount at the end
Item of the current period as a period as a as a percentage Remark
of previous period
period percentage of percentage of the amount
total assets of total at the end of
(%) assets previous period
(%)
Cash and bank Attributed to the receipt of funds raised by
1,822,102,703.57 11.67 787,123,646.45 6.50 131.49
balances private offering of shares in the current period
Attributed to the increase in bank financial
Trading financial
401,276,432.56 2.57 176,111.00 0.00 227,754.27 management products subscribed by the
assets
Company in the current period
Attributed to the increase in the deposit paid in
Other receivable 51,992,724.93 0.33 31,087,166.38 0.26 67.25
the current period
Attributed to the increase in plants and
Construction in
1,386,448,449.11 8.88 943,993,396.96 7.79 46.87 equipment under construction in the current
progress
period
Attributed to the right-of-use assets recognized
Right-of-use
22,447,341.16 0.14 NA by the Company in accordance with the “New
assets
Lease Standards” in the current period
Attributed to the increase in received
Other non-current
559,073,830.90 3.58 296,957,402.06 2.45 88.27 prepayments for construction and equipment in
assets
the current period
Short-term Attributed to he increase in short-term bank
773,129,744.77 4.95 400,378,888.89 3.30 93.10
borrowings loans in the current period
Attributed to the increase in VAT and
Taxes payable 149,030,277.59 0.95 82,865,303.29 0.68 79.85
corporate income tax payable
Non-current 7,333,430.63 0.05 NA Attributed to the lease liabilities due within
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
liabilities due one year recognized by the Company in
within 1 year accordance with the “New Lease Standards”
during the current period
Other current Attributed to the increase in output tax to be
3,658,909.50 0.02 1,507,896.52 0.01 142.65
liabilities written off
Attributed to the lease liabilities recognized by
Lease liabilities 14,138,616.74 0.09 the Company in accordance with the “New
NA
Lease Standards” during the current period
Attributed to the increase in the proceeds from
the private offering of shares received in the
Capital reserve 5,340,798,886.81 34.20 3,409,439,863.07 28.14 56.65
current period and the capital reserve-share
premium
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
2. Overseas assets
√Applicable □Non-applicable
(1) Scale of assets
Including: overseas assets RMB 555,820,112.75 (Unit: Yuan Currency: RMB), in 3.56 % of total assets.
(2) Notes to overseas assets
□Applicable √Non-applicable
3. 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
Cash and bank balances 112,805,901.59 Margins for bank acceptance
notes
Notes receivable 350,653,610.60 Pledge
Fixed Assets 46,907,530.34 Mortgage
Intangible Assets 6,698,677.70 Mortgage
Receivable financing 811,941,024.18 Pledge
Total 1,329,006,744.41 /
4. Other Notes
□Applicable √Non-applicable
(4) Investment condition
1. Overall analysis of external equity investments
□Applicable √Non-applicable
(1) Significant equity investment
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2) Significant non-equity investment
□Applicable √Non-applicable
ⅰ. Condition of purchased land
On January 19, 2021, Tuopu EV Thermal Management System (Ningbo) Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use
308 mu state-owned construction land in Hangzhou Bay New Zone, Ningbo, at a consideration of RMB 61.58 million in bidding process.
On February 26, 2021, Tuopu EV Thermal Management System (Ningbo) Co., Ltd., a wholly-owned subsidiary of the Company, was awarded the right to use
341 mu state-owned construction land in Hangzhou Bay New Zone, Ningbo, at a consideration of RMB 68.21 million in bidding process.
ⅱ. Updates of investments
Reference
number
Date of Title of
NO. of Main content Update of event
Signing announcement
announce
ment
1 November 2016-076 Tuopu Group’s The Company signed the "Investment In January 2017, Ningbo Tuopu Automotive Electronics
2016 announcement on Agreement" with the Development and Co., Ltd., a wholly-owned subsidiary of the Company, was
the investment Construction Management Committee of awarded the right to use about 503 mu state-owned
agreement signed Ningbo Hangzhou Bay New Zone, and construction land in Hangzhou Bay New Zone, Ningbo
with Hangzhou prospectively invests and constructs a (Phase I), at a consideration of RMB 84.55 million in
Bay New Zone production base intended for the bidding process, and this project has been completed and
automobile parts production project in put into operation.
Ningbo Hangzhou Bay New Zone. In May 2020, Ningbo Tuopu Automotive Electronics 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
(Phase II), at a consideration of RMB 27.06 million in
bidding process, which is intended for implementing the
"Hangzhou Bay Phase II Lightweight Chassis products
Module Project" as a non-public offering equity
investment project in 2020. To date, the main works have
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
been substantially completed and it proceeds to the
equipment installation.
2 January 2018 2018-002 Tuopu Group’s The Company and the Administration In May 2020, the Company was awarded the right to use
announcement on Committee of Xiangtan Economic and about 210 mu state-owned construction land in Xiangtan
the investment Technological Development Zone signed Economic and Technological Development Zone, at a
intent agreement the "Investment and Entry Contract" in consideration of RMB 47.07 million, which is intended
signed in Xiangtan relation to Hunan Production Base Project, for implementing "Hunan Factory Lightweight Chassis
and prospectively constructs the interior products Module Project" as a non-public offering equity
trims project with an annual capacity of investment project in 2020. To date, the main works have
300,000 sets and the chassis products been substantially completed and it proceeds to the floor
production base project with an annual construction phase.
capacity of 600,000 sets in Xiangtan
Economic and Technological
Development Zone.
3 February 2018-004 Tuopu Group’s Taizhou Tuopu Automobile Parts Co., In February 2018, Taizhou Tuopu Auto Parts Co., Ltd. was
2018 announcement on Ltd., a wholly-owned subsidiary of the awarded the right to use about 47 mu state-owned
the investment Company, signed the "Investment construction land in Toumen Port Economic Development
intent agreement Attraction Agreement" with the Zone, Linhai, at a consideration of RMB 16 million. To
signed by its Administration Committee of Toumen date, the plant works have been completed and it proceeds
wholly-owned Port Economic Development Zone of to the equipment acceptance and installation phase.
Subsidiary Zhejiang, and prospectively invests and
constructs the NVH interior trims system
project with an annual capacity of 300,000
sets in Toumen Port Economic
Development Zone.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(3) Financial assets measured at fair value
□Applicable √Non-applicable
Item Balance at the end of the period Note
Short-term financial products 400,000,000.00 Wealth management products
Equity instrument investment 1,276,432.56 Debt payment by customer in
stocks
Total 401,276,432.56 /
(5) Disposal of major assets and equity
□Applicable √Non-applicable
(6) Analysis of major controlling and participating companies
√Applicable □Non-applicable
Unit：in 10,000 Yuan Currency：RMB
Total Total Total net Operating
Net profit
assets in liabilities in assets in income in
Registered in the
Company name the the the the
capital current
reporting reporting reporting reporting
period period period period period
Ningbo Intelligent 5,000.00 5,487.98 1,735.96 3,752.02 8,458.75 27.99
Brake
Tuopu Imp&Exp. 20,000.00 41,194.51 24,711.04 16,483.47 92,393.12 2,466.42
Tuopu Parts 20,000.00 125,695.70 105,118.29 20,577.41 221,275.69 -461.93
Tuopu Acoustics 20,000.00 80,036.32 64,596.46 15,439.86 139,661.53 360.92
Vibration
Sichuan Tuopu 2,000.00 6,378.93 3,808.64 2,570.29 8,457.26 397.32
Yantai Tuopu 6,280.00 7,627.48 1,968.96 5,658.52 4,186.58 -17.52
Pinghu Tuopu 20,800.00 26,422.65 8,443.06 17,979.58 19,977.05 892.98
Sichuan Maigao 15,000.00 23,275.49 3,718.74 19,556.74 8,829.37 162.29
Zhejiang Towin 18,000.00 54,029.66 9,615.58 44,414.08 19,033.73 542.08
Tuopu Automotive 250,000.00 315,777.21 72,975.71 242,801.50 141,832.76 10,371.70
Electronics
Ningbo Qianhui 2,725.86 9,169.87 2,456.96 6,712.91 2,882.54 47.46
Tuopu North 5.00 4,279.32 3,859.37 419.95 28,041.26 634.67
American Ltd
Tuopu Electrical 5,000.00 12,522.65 3,360.51 9,162.14 6,324.24 591.27
Appliances
Ningbo Borgers 2,100.00 24,558.91 7,477.31 17,081.60 20,437.71 1,153.32
Antolin Tuopu 1,464.22 6,636.58 4,003.45 2,633.12 3,401.69 -72.25
(7) Structured entities controlled by the Company
□Applicable √Non-applicable
I.Other disclosures
(1) Potential risks
√Applicable □Non-applicable
22 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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.
(2) Other disclosures
□Applicable √Non-applicable
Section IV Corporate Governance
I. Brief Information about General Meetings
The search index
of the specified Date of disclosure
Date of
Session website to to publication of Resolution
convention
publish resolutions
resolutions
2021 The 1st March 15, www.sse.com.cn March 16, 2021 5 proposals including the
extraordinary 2021 “Proposal on amendment of
general the Articles of Association”
meeting of were deliberated and
shareholders approved. More details are
available in the
"Announcement on
Resolutions of the 2021 First
Extraordinary General
Meeting of Shareholders of
Tuopu Group"
(Announcement No.:
2021-015)
2020 General May 10, www.sse.com.cn May 11, 2021 17 proposals including the
meeting of 2021 "Proposal on the Full Text
shareholders and Summary of the 2020
Annual Report" and
"Proposal on the 2020 Profit
Distribution" were
deliberated and approved.
More details are available in
the "Announcement on
Resolutions of the 2020
Annual General Meeting of
Shareholders of Tuopu
Group" (Announcement No.:
2021-041)
Preferred shareholders whose voting rights have been restored request to convene an
extraordinary general meeting
□Applicable √Non-applicable
Note to General Meeting
□Applicable√Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
II. Changes in directors, supervisors and officers
□Applicable √Non-applicable
Note to the changes in directors, supervisors and officers
□Applicable √Non-applicable
III. The plan for the profit distribution of common stocks or the transfer of capital reserves
The drafted semi-annual plan for the profit distribution of common stocks or the transfer of
capital reserves
Whether for the profit distribution or the transfer No
of capital reserves
Number of bonus issues (stocks) every 10 shares NA
Number of dividends distributed (Yuan) (with tax NA
included) every 10 shares
Number of additional shares (stocks) every 10 NA
shares
Note to the plan for the profit distribution of common stocks or the transfer of capital reserves
No
IV. 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
Condition of equity incentives
□Applicable √Non-applicable
Other notse
□Applicable √Non-applicable
ESOP
□Applicable √Non-applicable
Other incentives
□Applicable √Non-applicable
Section V Environmental and Social Responsibility
(I). 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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 2021", as circulated by Ningbo Municipal
Bureau of Ecology and Environment on April 30, 2021, 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; the plant addressed at
Longtanshan Rd, Beilun District, Ningbo (“Longtanshan Road Plant”) is included on the list of key soil
environment supervised entities.
(2) 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 2021", as circulated by Ningbo Municipal
Bureau of Ecology and Environment on April 30, 2021, the wholly owned subsidiary plant Ningbo
Tuopu Automotive Electronics Co., Ltd. (“Tuopu Automotive Electronics”) addressed in Hangzhou Bay
New Area, Ningbo, is included on the list of key soil environment supervised entities.
(3) Under the " Notice on release of the list of key emission entities in Jinhua in 2021”, as
circulated by Jinhua Ecological Environment Bureau on 31 March 2021, 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.
(4) Under the "Notice on the list of key emission units in Sichuan in 2021 (Suining)”, as circulated
by Suining Ecological Environment Bureau on March 31, 2021, 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:
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(1) Guanhai Road Plant, Longtanshan Road 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
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 the 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) Tuopu Automotive Electronics: 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 Zi
No.19119; obtain the emission permit granted from Hangzhou Bay New Area Ecological Environment
26 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Bureau, serial no.: 991330201MA2833A9XR.
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. Unacceptable sewage is prohibited from accessing to the municipal
sewage pipeline.
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 Hangzhou Bay New Area Sewage Treatment Plant, the domestic
wastewater will be discharged to the municipal sewage pipeline system.
Subject to the treatment process, one pipeline of the above wastewater and sewage is discharged via
02WS863 drain outlet, the other pipeline is discharged via 01WS703 drain outlet to the municipal
wastewater pipeline Hangzhou Bay New Area, finally treated in the Municipal Wastewater Treatment
Plant.
The normative standard applicable to sewage discharge of Tuopu Automotive Electronics: Grade 3
standard of "Integrated Wastewater Discharge Standard" (GB8978-1996 Ammonia nitrogen and total
phosphorus are subject to the "Zhejiang Local Standard Industrial Enterprise Wastewater Nitrogen and
Phosphorus Pollutant Indirect Discharge Limits" (DB33/887-2013 ), then discharged into the municipal
sewage pipeline, and finally treated in the sewage treatment plant to meet the Grade 1 standard of the
"Urban Sewage Treatment Plant Pollutant Discharge Standard" (GB18918-2002) before being
discharged into the sea.
Subject to treatment, the sewage from the Hangzhou Bay plant enters the urban pipe network
standard. Actual test data of production wastewater: pH value is 7.10, COD is 7.3mg/L, ammonia
nitrogen is 4.22MG/L, suspended solids is 8MG/L, petroleum is 0.06MG/L, total phosphorus is
0.08MG/L, Zinc is 0.05MG/L, and anionic surfactant is 0.06MG/L, all of which meet the specifications
In the plant, metal scraps, non-conforming products in production, scrap metal from mold repairs,
rubber scraps, and waste packaging are identified as general solid waste, 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, dedicated stacking field and storehouse for hazardous wastes
are 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, the hazardous waste transfer declaration is made on the "National
Solid Waste and Chemical Management Information System" in line with the hazardous waste control
requirements of the Environmental Protection Bureau, and hazardous waste disposal agreements have
been signed with Ningbo Wanrun Special Oil Products Co., Ltd., Hangzhou Fuyang Shenneng Solid
27 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Waste Environmental Recycling Co., Ltd., Ningbo Beilun Environmental Solid Waste Disposal Co.,
Ltd., Dongyang Meichen Industry and Trade Co., Ltd., and Ningbo Bochuan Waste Liquid Disposal
Co., Ltd.
(3) 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
authorites 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 90mg/L, ammonia nitrogen is 6.6mg/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,
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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
system is running normally and transmiting 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
hazardious wastes in accordance with the measures applicable to the control of hazardous wastes, and
maintained the hazardous waste management account and transfer form.
(4) 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.
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 the plant 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
＜0.156 mg/L, pH value is 7.4, COD is 164 mg/L; ammonia nitrogen is 12.7 mg/L, total phosphorus is
1.63 mg/L, petroleum is 0.89 mg/L. Actual data of domestic wastewater test: pH value is 7, COD is 28
mg/L, ammonia nitrogen is 237 mg/L, all data are acceptable.
In the 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.
The plant arranges production facilities in a reasonable way, improves processes and increase the
recycling of water, and reduces the emissions of sewage. The automatic sewage monitoring system is
operating normally and connected to the environmental protection authority for data transmission in real
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
time, and the environmental protection authorities at the provincial, city and county levels can monitor it
in real time.
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.
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. Administrative penalties due to environmental concerns during the reporting period
□Applicable √Non-applicable
7. 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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(3) Statement on the follow-up progress or changes in the environmental information disclosure
during the reporting period
□Applicable √Non-applicable
(4) Relevant information that benefits ecosystem protection, pollution control, and fulfillment
environmental responsibilities
□Applicable √Non-applicable
(5) Measures and effects taken to reduce carbon emissions during the reporting period
√Applicable □Non-applicable
In light of business development and capacity extension, the Company has set up many plants. In
June and July 2021, the Company incorporated the wholly-owned sub-subsidiaries Tuopu Photovoltaic
Technology (Ningbo Hangzhou Bay New Area) Co., Ltd., Tuopu Photovoltaic Technology (Ningbo
Beilun) Co., Ltd., and Tuopu Photovoltaic Technology (Pinghu) Co., Ltd., and intends to capitalize on
the roofs of these plants to build and operate distributed photovoltaic power stations, make full use of
clean energy, directly reduce carbon emissions, reduce energy consumption and cost.
This project stays in line with the company vision and mission statement and improves eco-friendly
development level, signifying its attention to ESG control, contributing to the goal of peak carbon
dioxide emissions and carbon neutrality. The project is under construction.
II. Particulars of consolidating and expanding the deliverables of poverty alleviation, rural
revitalization and other tasks
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Section VI Significant Events
I. 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
Date and Whether Whether commitments
commitments
deadline there is a performe cannot be
Background of Type of Committe cannot be
Content of commitment of deadline for d strictly completed
commitment commitment d by completed
commit performanc and timely, state
timely, state
ment e timely the specific
the next plan
reason
Restricted 14 specific The shares subscribed by New China Asset February Yes Yes NA NA
sale of investors Management Co., Ltd., UBS AG, CITIC 2021, 6
shares including Securities Co., Ltd. (Self-run), China months
New Securities Co., Ltd., HFT Investment
China Management Co., Ltd., CITIC Securities
Asset Co., Ltd. (Asset Management), New China
Manageme Fund Management Co., Ltd., China Galaxy
Commitment nt Co., Securities Co., Ltd., Huaneng Guicheng
related to Ltd. Trust Co., Ltd., Goldman Sachs & Co.
refinancing 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
private offering.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
II. Whether there is any non-operating capital occupation by the controlling shareholder and its
affiliates
□Applicable √Non-applicable
III. Violation of guarantee
□Applicable √Non-applicable
IV. Audit of the semi-annual report
□Applicable √Non-applicable
V. Changes and handling of matters involved in non-standard audit opinions in the previous year’s
annual report
□Applicable √Non-applicable
VI. Matters concerning bankruptcy and reorganization
□Applicable √Non-applicable
VII. 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
VIII. Listed companies and their directors, supervisors, officers, controlling shareholders, and
actual controllers suspected of violations of laws and regulations, or subject to punishment and
rectification
□Applicable √Non-applicable
IX. Notes to the Credit Standing of the Company and Its Controlling Shareholders and Actual
Controllers during the Reporting Period
□Applicable √Non-applicable
X. 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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(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) Financial business between the Company and the associated financial company, the Company's
holding financial company and the related party
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(6) Other major related transactions
□Applicable √Non-applicable
(7) Other
□Applicable √Non-applicable
XI. Major contracts and contract performance
1 Matters relating to trusteeship, contracting and leasing
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
2 Significant guarantees performed and unfulfilled during the reporting period
√Applicable □Non-applicable
Unit：Yuan Currency： RMB
External guarantees by the Company (other than its guarantees to subsidiaries)
Relation
Date of Whether Whether
between Whether
guarantee Type Mai the it is a
the Guarante the Guarante
Guarant Guarantee occurred Fro of n Collatera guarante Counter-guarante guarante Associating
guarantor ed Until guarante e overdue
or d party (date of m guaran debt l (if any) e has e situation e for relation
and the amount e is amount
agreement tee s been related
listed overdue
execution) fulfilled parties
company
Total amount of guarantees during the reporting period (other than
0
guarantees to subsidiaries)
Total balance of guarantees at the end of the reporting period (A)
0
(other than guarantees to subsidiaries)
Guarantees by the Company to its subsidiaries
Total amount of guarantees to subsidiaries during the reporting
54,174,400
period
Total balance of guarantees to subsidiaries at the end of the
54,174,400
reporting period (B)
Total amount of company guarantees (including its guarantees to subsidiaries)
Total guarantees (A+B) 54,174,400
Total guarantees as a percentage of the Company's net assets (%) 0.73
Including:
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Amount of guarantees provided for shareholders, actual controllers
0
and their related parties (C)
Amount of debt guarantee provided directly or indirectly for the
0
guaranteed object whose asset-liability ratio exceeds 70% (D)
Amount of the total guarantees exceeding 50% of the net assets (E) 0
Total of the above three guarantees (C+D+E) 0
Note to unexpired guarantees that may bear joint liability for
NA
repayment
Tuopu Poland sp.z.o.o, ("Tuopu Poland") is a wholly-owned subsidiary established by Tuopu
Group in Poland in March 2021. It leases 7R PROJEKT 35 Sp. z oo ("7R Project Company").
The customized plant will accept and produce European orders and has assigned a lease
agreement with 7R Project Company on March 15, 2021. Given business practices and actual
needs, the Company provided performance guarantee for the said plant lease agreement signed
by Tuopu Poland.
The total liability of the letter of guarantee is up to 7 million euros (calculated at the exchange
rate on the day before the announcement on March 19, 2021, equivalent to RMB 54.174
million), and the effective term covers the validity period of the said lease agreement (84
Statement of guarantees months counted from March 15, 2021) and five months after its expiration or termination, but
no later than August 1, 2029.
Tuopu Poland is required to perform the obligations as tenant stipulated in the above lease
agreement on time. Failing to do so, Tuopu Group shall perform the obligations within 15
working days upon the receipt of the claim notice from 7R Project Company.
The above performance guarantees have been reviewed and approved at the 5th meeting of the
fourth Board of Directors. More details are available in “Announcement of Tuopu Group on
Providing Performance Guarantees for the Lease of Industrial Plants for Overseas
Wholly-owned Subsidiaries”disclosed by the company on the portal site of Shanghai Stock
Exchange on March 19, 2021. (Announcement No. 2021-018).
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
3 Other major contracts
□Applicable √Non-applicable
XII. Explanation of other important matters
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Section VII Changes in Shares and Shareholders
I. Condition in change of equity
(1) Condition in change of shares
1. Condition in change of shares
Unit：shares
Before this change Increased or decreased amount in this period (+/-) After this change
Shares
Number of Shares Bonus converted Number of Shares
New issue Other Subtotal
shares held (%) issue from capital shares held (%)
reserves
I. Shares held subject to restricted 0 0 47,058,823 47,058,823 47,058,823 4.27
sale
1. Shares held by the state
government
2.Shares held by state-owned
corporates
3. Shares held by other domestic 38,352,472 38,352,472 38,352,472 3.48
capital
Including: shares held by domestic
non-state-owned corporates
Shares held by domestic
natural persons
4. Shares held by foreign capital 8,706,351 8,706,351 8,706,351 0.79
Including: shares held by foreign 8,706,351 8,706,351 8,706,351 0.79
corporates
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
shares held by foreign natural
persons
II. Unrestricted tradable shares 1,054,987,749 100 1,054,987,749 95.73
1. RMB ordinary shares 1,054,987,749 100 1,054,987,749 95.73
2. Foreign shares listed at home
3. Foreign shares listed overseas
4. Other
III.Total shares 1,054,987,749 100 47,058,823 47,058,823 1,102,046,572 100
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
2. Changes in shares
√Applicable □Non-applicable
On February 23, 2021, the Company completed the private offering of A-shares. The Company issued 47,058,823 A-shares to 14 specific investors. Total
number of shares increased from 1,054,987,749 to 1,102,046,572.
More details are available in the "Announcement of Tuopu Group's Private Offering of Shares and Changes in Share Capital" (Announcement No.: 2021-004)
disclosed on the portal site of the Shanghai Stock Exchange on February 25, 2021.
3. Impact of changes in common shares on financial indexes such as EPS and net assets per share from the reporting period to the disclosure of the
semi-annual report (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
Name of shareholder Number of Number of Number of Number of Reason for restricted sale Date of removal of
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
shares on shares additional shares on restricted sale
restricted removed from shares on restricted sale
sale at the restricted sale restricted sale at the end of
beginning in the in the the reporting
of the reporting reporting period
reporting period period
period
New China Asset Management Co., Ltd. 0 0 11,764,705 11,764,705 6-month lock-up period of shares
August 23, 2021
in private offering
UBS AG 0 0 5,764,705 5,764,705 6-month lock-up period of shares
August 23, 2021
in private offering
CITIC Securities Co., Ltd. (Self-run) 0 0 5,764,705 5,764,705 6-month lock-up period of shares
August 23, 2021
in private offering
China Securities Co., Ltd. 0 0 4,705,882 4,705,882 6-month lock-up period of shares
August 23, 2021
in private offering
HFT Investment Management Co., Ltd. 0 0 3,529,411 3,529,411 6-month lock-up period of shares
August 23, 2021
in private offering
CITIC Securities Co., Ltd. (asset 0 0 2,211,302 2,211,302 6-month lock-up period of shares
August 23, 2021
management) in private offering
New China Fund Management Co., Ltd. 0 0 2,141,176 2,141,176 6-month lock-up period of shares
August 23, 2021
in private offering
China Galaxy Securities Co., Ltd. 0 0 2,117,647 2,117,647 6-month lock-up period of shares
August 23, 2021
in private offering
Huaneng Guicheng Trust Co., Ltd. 0 0 1,882,352 1,882,352 6-month lock-up period of shares
August 23, 2021
in private offering
Goldman Sachs & Co. LLC 0 0 1,529,411 1,529,411 6-month lock-up period of shares
August 23, 2021
in private offering
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
MORGAN STANLEY & CO. 0 0 1,412,235 1,412,235 6-month lock-up period of shares
August 23, 2021
INTERNATIONAL PLC. in private offering
Zhejiang Zhonghao Investment Co., Ltd. 0 0 1,411,764 1,411,764 6-month lock-up period of shares
August 23, 2021
in private offering
Chengdu Fusen-Noble House Co., Ltd. 0 0 1,411,764 1,411,764 6-month lock-up period of shares
August 23, 2021
in private offering
Beijing Renaissance Era Investment 0 0 1,411,764 1,411,764 6-month lock-up period of shares
August 23, 2021
Management Co., Ltd. in private offering
Total 0 0 47,058,823 47,058,823 / /
II. Condition of Shareholders
(1) Total shareholders
Total number (accounts) of common shareholders as of 32,899
the end of the reporting period
Total number (accounts) of preferred shareholders whose NA
voting rights have been restored as of the end of the
reporting period
(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
Name of Shareholder Increas Number of Percenta Number of Condition of pledge of Nature of
(Full Name) e/Decr shares held at ge shares held freezing shareholder
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
ease the end of the (%) subject to s
during period restricted sale
the Status of Number
reporti shares of shares
ng
period
Foreign
MECCA INTERNATIONAL HOLDING （HK） LIMITED 693,680,000 62.94 No
corporate
Hong Kong Securities Clearing Company Limited 29,793,506 2.70 Unknown Unknown
New China Life Insurance Co., Ltd. - Dividend-Group
12,479,254 1.13 11,764,705 Unknown Unknown
Dividend-018L-FH001 Hu
Foreign
Kuwait Investment Authority–Own funds 10,179,542 0.92 Unknown
corporate
CITIC Securities Co., Ltd. 10,082,526 0.91 7,976,007 Unknown Unknown
Foreign
Jianshu Wu 7,210,308 0.65 No natural
person
Agricultural Bank of China Co., Ltd.-GT Intelligent Car Stock
6,768,477 0.61 Unknown Unknown
Securities Investment Fund
Foreign
UBS AG 5,853,548 0.53 5,764,705 Unknown
corporate
Agricultural Bank of China Co., Ltd.-New China Power
5,612,035 0.51 1,411,764 Unknown Unknown
Flexible Allocation Hybrid Securities Investment Fund
Industrial and Commercial Bank of China- CIFM Domestic
5,608,561 0.51 Unknown Unknown
Demand Momentum Securities Investment Fund
Shares held by the top ten shareholders not subject to restricted sale
Name of Shareholder Number of tradable shares held not Class and number of shares
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
subject to restricted sale Class Number of shares
MECCA INTERNATIONAL HOLDING （HK） LIMITED 693,680,000 RMB common shares 693,680,000
Hong Kong Securities Clearing Company Limited 29,793,506 RMB common shares 29,793,506
Kuwait Investment Authority – Own funds 10,179,542 RMB common shares 10,179,542
CITIC Securities Co., Ltd. 10,082,526 RMB common shares 10,082,526
Jianshu Wu 7,210,308 RMB common shares 7,210,308
Agricultural Bank of China Co., Ltd.-GT Intelligent Car Stock
6,768,477 RMB common shares 6,768,477
Securities Investment Fund
Industrial and Commercial Bank of China- CIFM Domestic
5,608,561 RMB common shares 5,608,561
Demand Momentum Securities Investment Fund
Ningbo Zhuyue Investment Management Co., Ltd. 5,407,630 RMB common shares 5,407,630
Shanghai Panjing Investment Management Center (Limited
Partnership)-Shengxin Phase 2 Private Placement Securities 5,230,741 RMB common shares 5,230,741
Investment Fund
Industrial and Commercial Bank of China Co., Ltd.-Rongtong
China Wind No. 1 Tactic Assets Allocation Commingled 4,872,331 RMB common shares 4,872,331
Securities Investment Fund
Description of the repurchase of special accounts among the
NA
top ten shareholders
Notes to the above shareholders' entrusted voting rights,
NA
entrusted voting rights, and waiver of voting rights
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Among these shareholders:
1. Mr. Jianshu Wu holds 100% of the shares in MECCA INTERNATIONAL HOLDING （HK）
LIMITED.
Notes to the associated relationship or concerted action of the 2. Ningbo Zhuyue Investment Management Co., Ltd. is a wholly-owned sub-subsidiary of MECCA
above shareholders 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
NA
been restored and the number of shares held
Number of shares held by the top ten shareholders subject to restricted sale and the conditions of restricted sales
□Applicable √Non-applicable
Unit：Shares
Conditions of restricted shares available
Number of for trading
Condition of
Seq. Name of shareholders subject to restricted sale conditions restricted shares Additional shares
Time available for restricted sale
held available for
trading
trading
6-month
New China Life Insurance Co., Ltd. - Dividend-Group lock-up period
1 11,764,705 August 23, 2021 11,764,705
Dividend-018L-FH001 Hu of shares in
private offering
6-month
lock-up period
2 UBS AG 5,764,705 August 23, 2021 5,764,705
of shares in
private offering
46 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
6-month
Agricultural Bank of China Co., Ltd.-New China Power Flexible lock-up period
3 1,411,764 August 23, 2021 1,411,764
Allocation Hybrid Securities Investment Fund of shares in
private offering
Notes to the associated relationship or concerted action of the above
Unknown
shareholders
47 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(3) Strategic investors or general legal persons become the top ten shareholders due to the
□Applicable √Non-applicable
III. Directors, supervisors and officers
(1) Changes in shareholding of current and resigned directors, supervisors and officers during the
reporting period
□Applicable √Non-applicable
Other notes
□Applicable √Non-applicable
(2) Share incentives granted by directors, supervisors and officers during the reporting period
□Applicable √Non-applicable
(3) Other notes
□Applicable √Non-applicable
IV. Changes in controlling shareholders or actual controllers
□Applicable √Non-applicable
Section VIII Information about Preference Shares
□Applicable √Non-applicable
Section IX Information of Corporate Bonds
I. Corporate bonds, debentures and non-financial corporate debt financing instruments
□Applicable √Non-applicable
II. Condition of convertible corporate bonds
□Applicable √Not applicable
48 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Section X Financial Report
I. Audit report
□Applicable √Non-applicable
II. Financial Statements
Consolidated Balance Sheet
As of 30 June 2021
Prepared by： Ningbo Tuopu Group Co., Ltd.
Unit：Yuan Currency：RMB
Item Note June 30, 2021 December 31, 2020
Current assets:
Cash and Bank Balances 7.1 1,822,102,703.57 787,123,646.45
Deposit Reservation for Balance
Loans to Banks and Other
Financial Institutions
Trading Financial Assets 7.2 401,276,432.56 176,111.00
Derivative Financial Assets
Notes receivable 7.4 350,653,610.60 296,283,951.73
Accounts receivable 7.5 2,211,356,399.61 1,783,267,007.65
Receivables Financing 7.6 874,151,202.33 742,203,122.21
Prepayments 7.7 53,564,339.54 42,883,818.40
Premium Receivable
Reinsurance Accounts Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 7.8 51,992,724.93 31,087,166.38
Including: interest receivable
Dividends Receivable
Buying Back the Sale of Financial
Assets
Inventory 7.9 1,611,472,435.16 1,502,751,836.88
Contract Assets
Holding for-sale assets
Non-current Assets Due within 1
Year
Other Current Assets 7.13 202,498,278.42 173,824,691.82
Subtotal of Current Assets 7,579,068,126.72 5,359,601,352.52
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 7.17 138,737,177.28 150,295,983.58
Investment in Other Equity
Instruments
Other Non-current Financial
Assets
Investment Property 7.20 30,766,317.44 31,603,418.12
Fixed Assets 7.21 4,613,026,763.88 4,248,257,966.73
Projects under Construction 7.22 1,386,448,449.11 943,993,396.96
Productive Biological Assets
Oil and gas assets
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Right-of-use Assets 7.25 22,447,341.16
864,200,803.89 678,561,105.86
Development Expenditure
Goodwill 7.28 253,310,074.24 253,310,074.24
Long-term unamortized expenses 7.29 68,292,727.75 57,679,259.94
Deferred Income Tax Assets 7.30 101,018,268.80 94,968,559.88
Other Non-current Assets 7.31 559,073,830.90 296,957,402.06
Total Non-current Assets 8,037,321,754.45 6,755,627,167.37
Total Assets 15,616,389,881.17 12,115,228,519.89
Current Liabilities:
Short-term loan 7.31 773,129,744.77 400,378,888.89
Borrowings from the Central Bank
Borrowings from Banks and Other
Financial Institutions
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable 7.35 1,905,569,760.15 1,471,327,551.91
Accounts Payable 7.36 2,249,867,855.45 1,898,255,116.17
Received Prepayments 7.37
Contract liabilities 7.38 28,149,493.14 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 7.39 123,436,773.37 138,292,361.67
Tax Payable 7.40 149,030,277.59 82,865,303.29
Other Payables 7.41 15,361,171.00 15,722,105.17
Including: interest payable
Dividends Payable
Service Charge and Commission
Payable
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due within 7.43
7,333,430.63
1 Year
Other Current Liabilities 7.44 3,658,909.50 1,507,896.52
Subtotal of Current Liabilities 5,255,537,415.60 4,031,034,884.03
Non-current Liabilities:
Insurance Contract Reserves
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 7.47 14,138,616.74
Long-term Payables
Long-term payroll payable
Expected Liabilities
Deferred Income 7.51 216,751,883.66 214,204,302.56
Deferred Income Tax Liabilities 7.30 57,717,645.00 51,907,987.42
Other Non-current Liabilities
Total Non-current Liabilities 288,608,145.40 266,112,289.98
50 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Total Liabilities 5,544,145,561.00 4,297,147,174.01
Owners’ Equity (or Shareholders'
Equity):
Paid-in capital (or share Capital) 7.53 1,102,046,572.00 1,054,987,749.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 7.55 5,340,798,886.81 3,409,439,863.07
Less: Treasury Share
Other Comprehensive Incomes 7.57 -18,697,516.09 -20,631,668.74
Special Reserves
Surplus Reserves 7.59 474,769,630.86 474,769,630.86
General Risk Reserves
Undistributed Profits 7.60 3,138,579,496.89 2,868,429,319.48
Total Shareholders' Equity
10,037,497,070.47 7,786,994,893.67
Attributable to the Parent Company
Minority Shareholders' Equity 34,747,249.70 31,086,452.21
Total Shareholders' Equity 10,072,244,320.17 7,818,081,345.88
Total Liabilities and
15,616,389,881.17 12,115,228,519.89
Shareholders' Equity
Legal Representative: Jianshu Wu Accounting Work Officer: Tieyang Hong Accounting Institution
Officer: Tieyang Hong
Balance Sheet of the Parent Company
As of June 30, 2021
Prepared by：Ningbo Tuopu Group Co., Ltd.
Unit：Yuan Currency：RMB
Item Note June 30, 2021 December 31, 2020
Current Assets:
Cash and Bank Balances 1,471,609,822.89 191,701,837.06
Trading Financial Assets 400,000,000.00
Derivative Financial Assets
Notes receivable
Accounts receivable 17.1 1,257,297,454.89 1,840,937,312.96
Receivables Financing 20,499,293.48
Prepayments 33,622,965.24 20,784,751.77
Other Receivables 17.2 37,523,577.06 76,146,034.58
Including: interest receivable
Dividends Receivable
Inventory 654,580,335.92 658,887,785.40
Contract Assets
Holding for-sale assets
Non-current Assets Due within 1
Year
Other Current Assets
Subtotal of Current Assets 3,875,133,449.48 2,788,457,721.77
Non-current Assets:
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables
Long-term Equity Investment 17.3 5,472,901,460.36 4,071,774,944.06
Investment in Other Equity
51 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Instruments
Other Non-current Financial
Assets
Investment Property 30,766,317.44 31,603,418.12
Fixed Assets 2,248,882,303.68 2,125,534,955.22
Projects under Construction 235,522,479.65 324,037,109.77
Productive Biological Assets
Oil and gas assets
Right-of-use Assets
Intangible Assets 257,194,011.20 261,540,370.50
Development Expenditure
Goodwill
Long-term unamortized expenses 17,605,139.13 18,012,648.52
Deferred Income Tax Assets 29,859,647.26 33,565,021.69
Other Non-current Assets 84,955,147.78 53,576,040.76
Total Non-current Assets 8,377,686,506.50 6,919,644,508.64
Total Assets 12,252,819,955.98 9,708,102,230.41
Current Liabilities:
Short-term loan 550,393,750.00 400,378,888.89
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable 232,215,340.00 165,480,933.26
0Accounts Payable 1,235,003,526.97 1,070,753,965.63
Received Prepayments
Contract liabilities 1,954,994.80 1,448,964.90
Payroll payable 56,020,223.07 73,653,497.54
Tax Payable 120,859,046.03 54,138,713.22
Other Payables 7,390,581.99 5,126,892.30
Including: interest payable
Dividends Payable
Holding for-sale liabilities
Non-current Liabilities Due within
1 Year
Other Current Liabilities 254,149.33 188,365.44
Subtotal of Current Liabilities 2,204,091,612.19 1,771,170,221.18
Non-current Liabilities:
Long-term loan
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities
Long-term Payables
Long-term payroll payable
Expected Liabilities
Deferred Income 67,496,572.31 70,962,922.25
Deferred Income Tax Liabilities 34,854,159.59 28,630,095.25
Other Non-current Liabilities
Subtotal of Non-current
102,350,731.90 99,593,017.50
Liabilities
Total Liabilities 2,306,442,344.09 1,870,763,238.68
Owners’ Equity (or Shareholders'
Equity):
Paid-in Capital (or Share Capital) 1,102,046,572.00 1,054,987,749.00
Other Equity Instruments
52 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 5,340,798,886.81 3,409,439,863.07
Less: Treasury Share
Other Comprehensive Incomes
Special Reserves
Surplus Reserves 474,769,630.86 474,769,630.86
Undistributed Profits 3,028,762,522.22 2,898,141,748.80
Total Owners’ Equity (or
9,946,377,611.89 7,837,338,991.73
Shareholders' Equity)
Total Liabilities and Owners’
12,252,819,955.98 9,708,102,230.41
Equity (or Shareholders' Equity)
Legal Representative: Jianshu Wu Accounting Work Officer: Tieyang Hong Accounting Institution
Officer: Tieyang Hong
Consolidated Income Statement
From the Period from January 2021 to June 2021
Unit：Yuan Currency：RMB
Item Note Semi-annual 2021 Semi-annual 2020
I. Total Operating Revenue 4,916,747,063.20 2,562,015,814.84
Including: Operating Revenue 7.61 4,916,747,063.20 2,562,015,814.84
Interest Income
Earned Premiums
Service Charge and Commission
Income
II. Total Operating Cost 4,363,907,911.44 2,326,053,060.58
Including: Operating Cost 7.61 3,890,647,152.66 1,972,469,869.51
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 33,834,421.64 25,195,019.57
Sales Expenses 7.63 67,811,133.02 48,374,902.80
Administration expenses 7.64 138,616,680.48 100,232,074.78
Research and development expense 7.65 233,873,710.58 165,130,113.43
Financial Expenses 7.66 -875,186.94 14,651,080.49
Including: interest expenses 8,718,663.63 13,230,815.39
Interest Income 16,268,492.45 7,272,076.83
Add: Other income 7.67 11,183,175.51 9,330,641.71
Investment Income (Mark"-" for Loss) 7.68 12,766,068.35 17,689,222.45
Including: Investment Income from
8,441,193.70 6,747,676.66
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
-2,613,733.23
(losses marked with "-")
53 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Credit Impairment Losses (Mark"-" for 7.71
-25,601,468.87 5,903,018.41
Loss)
Asset Impairment Losses (Mark"-" for 7.72
-9,508,691.87 -1,976,118.60
Loss)
Asset Disposal Income (Mark"-" for 7.73
-1,258,747.17 -1,048,280.34
Loss)
III. Operating Profit (Mark"-" for Loss) 537,805,754.48 265,861,237.89
Add: Non-operating Revenues 7.74 6,804,870.60 2,773,493.50
Less: Non-operating Expenses 7.75 436,761.83 773,265.73
IV. Total Profit (Mark"-" for Total Loss) 544,173,863.25 267,861,465.66
Less: Income Tax Expense 7.76 80,832,042.80 52,311,704.48
V. Net Profit (Mark"-" for Net Loss) 463,341,820.45 215,549,761.18
(1) Classified by operation continuit
1. Net Profit as a Going Concern (Mark"-"
463,341,820.45 215,549,761.18
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 Shareholders
459,702,187.79 215,983,238.50
of Parent Company
2. Minority Shareholders' Profit and Loss 3,639,632.66 -433,477.32
VI. Net Amount of Other Comprehensive
1,955,317.48 -10,939,297.92
Incomes after Tax
(1) Net Amount of Other Comprehensive
Incomes after Tax Attributable to the Parent 1,934,152.65 -10,939,297.92
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
1,934,152.65 -10,939,297.92
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 1,934,152.65 -10,939,297.92
(7) Others
(2) Net Amount of Other Comprehensive
Incomes After Tax Attributable to Minority 21,164.83
Shareholders
VII. Total Comprehensive Income 465,297,137.93 204,610,463.26
(1) Total Comprehensive Income
461,636,340.44 205,043,940.58
Attributable to the Parent Company's Owner
(2) Total Comprehensive Income
3,660,797.49 -433,477.32
Attributable to Minority Shareholders
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
VIII. Earnings per Share:
(1) Basic Earnings per Share 0.42 0.20
(2) Diluted Earnings per Share 0.42 0.20
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: Jianshu Wu Accounting Work Officer: Tieyang Hong Accounting Institution
Officer: Tieyang Hong
Income Statement of the Parent Company
From the Period from January 2021 to June 2021
Unit：Yuan Currency：RMB
Item Note Semi-annual 2021 Semi-annual 2020
I. Operating Revenue 17.4 2,751,171,906.11 1,531,170,033.86
Less: Operating Cost 17.4 2,155,104,009.66 1,136,771,164.60
Taxes and Surcharges 18,491,588.19 15,537,365.61
Sales Expenses 1,374,060.32 1,017,251.40
Administration expenses 68,430,398.07 54,964,680.04
Research and development expense 172,022,046.93 126,107,509.90
Financial Expenses -5,028,375.59 11,015,053.19
Including: interest expenses 7,741,372.22 13,203,733.47
Interest Income 13,195,796.71 2,347,053.01
Add: Other income 4,261,349.94 2,113,303.24
Investment Income (Mark"-" for 17.5
12,766,068.35 127,689,222.45
Loss)
Including: Investment Income from
8,441,193.70 6,747,676.66
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 "-") 26,251,726.10 400,384.96
Asset Impairment Losses (loss in "-") -7,959,800.58 -1,789,265.35
Asset Disposal Income (loss in "-") -1,195,076.16 -417,287.32
II. Operating Profit (loss in "-") 374,902,446.18 313,753,367.10
Add: Non-operating Revenues 1,350,175.15 1,405,561.06
Less: Non-operating Expenses 116,965.18 27,236.88
III. Total Profit (total loss in “-“) 376,135,656.15 315,131,691.28
Less: Income Tax Expense 55,962,872.35 30,115,159.70
IV. Net Profit (Mark for Net Loss) 320,172,783.80 285,016,531.58
(I) Net Profit as a Going Concern (net loss
320,172,783.80 285,016,531.58
in “-“)
(II) Net Profit of Discontinued Operation
(net loss in “-“)
V. Net Amount of Other Comprehensive
Incomes After Tax
(1) Other comprehensive income that
55 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 320,172,783.80 285,016,531.58
VII. Earnings per Share:
(I) Basic Earnings per Share 0.29 0.27
(II) Diluted Earnings per Share 0.29 0.27
Legal Representative: Jianshu Wu Accounting Work Officer: Tieyang Hong Accounting
Institution Officer: Tieyang Hong
Consolidated Cash Flow Statement
From the Period from January 2021 to June 2021
Unit：Yuan Currency：RMB
Item Note Semi-annual 2021 Semi-annual 2020
I. Cash Flow Generated by Operational
Activities:
Cash from Sales of Merchandise and
5,385,942,651.69 2,753,017,968.76
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
56 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Net Increase in Repurchase Business
Funds
Net Amount of Cash Received from the
Vicariously Traded Securities
Tax Refund 160,277,646.26 84,099,026.05
Other Received Cashes Related to
7.78 32,450,469.95 34,220,387.59
Operational Activities
Subtotal of cash inflow from
5,578,670,767.90 2,871,337,382.40
operational activities
Cash Paid for Merchandise and Services 3,842,870,640.13 1,646,987,196.40
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 632,322,899.02 366,032,283.95
Cash Paid for Taxes and Surcharges 153,927,551.25 163,993,755.99
Other Paid Cashes Related to Operational
7.78 204,214,799.54 206,930,578.40
Activities
Subtotal of cash outflow from
4,833,335,889.94 2,383,943,814.74
operational activities
Net cash flow generated by
745,334,877.96 487,393,567.66
operating activities
II. Cash Flow from Investment Activities:
Cash Arising from Disposal of
504,584,367.13 830,941,545.79
Investments
Cash Arising from Investment Incomes 20,000,000.00
Net Cash Arising from Disposal of Fixed
Assets, Intangible Assets and Other 591,135.78 325,100.00
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
525,175,502.91 831,266,645.79
investment activities
Cash Paid for Purchase and Construction
of Fixed Assets, Intangible Assets and Other 1,491,962,054.67 408,550,167.56
Long-term Assets
Cash Paid for Investments 900,000,000.00 590,000,000.00
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of
Subsidiaries and Other Business Units
Other Paid Cashes Related to Investment
Activities
Subtotal of Cash Outflow from
2,391,962,054.67 998,550,167.56
Investment Activities
Net amount of cash flow generated
-1,866,786,551.76 -167,283,521.77
by investment activities
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing
1,978,417,846.74
Investments
Including: Cash Arising from
57 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Subsidiaries Absorbing Investments by
Minority Shareholders
Cash Arising from Borrowings 560,132,949.77 140,000,000.00
Other Received Cashes Related to
Financing Activities
Subtotal of cash inflow from financing
2,538,550,796.51 140,000,000.00
activities
Cash Paid for Debts Repayment 187,396,955.00 355,000,000.00
Cash Paid for Distribution of Dividends
197,278,521.49 12,474,369.47
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
384,675,476.49 367,474,369.47
financing activities
Net cash flow generated by
2,153,875,320.02 -227,474,369.47
financing activities
IV. Impact of Fluctuation in Exchange
2,006,733.68 -8,821,736.48
Rate on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
1,034,430,379.90 83,813,939.94
Equivalents
Add: Cash and Cash Equivalents at the
674,866,422.08 715,182,068.12
Commencement of the Period
VI. Cash and Cash Equivalents at the
1,709,296,801.98 798,996,008.06
End of the Period
Legal Representative: Jianshu Wu Accounting Work Officer: Tieyang Hong Accounting Institution
Officer: Tieyang Hong
Cash Flow Statement of the Parent Company
For the Period from January 2021 to June 2021
Unit：Yuan Currency：RMB
Item Note Semi-annual 2021 Semi-annual 2020
I. Cash Flow Generated by Operational Activities:
Cash from Sales of Merchandise and Provision
of Services
2,871,660,298.41 1,005,798,064.20
Tax Refund
Other Received Cashes Related to Operational
Activities
15,259,971.88 14,115,969.97
Subtotal of cash inflow from operational
activities
2,886,920,270.29 1,019,914,034.17
Cash Paid for Merchandise and Services 1,099,743,097.74 394,425,381.89
Cash Paid to and for Employees 293,579,139.82 202,026,277.93
Cash Paid for Taxes and Surcharges 80,386,119.16 111,801,665.38
Other Paid Cashes Related to Operational
Activities
103,714,219.65 106,566,862.87
Subtotal of cash outflow from operational
activities
1,577,422,576.37 814,820,188.07
Net cash flow generated by operating activities 1,309,497,693.92 205,093,846.10
II. Cash Flow from Investment Activities:
Cash Arising from Disposal of Investments 504,584,367.13 830,941,545.79
Cash Arising from Investment Incomes 20,000,000.00 110,000,000.00
et Cash Arising from Disposal of Fixed Assets,
Intangible Assets and Other Long-term Assets
8,921,586.13 18,795,778.23
Net Cash Arising from Disposal of Subsidiaries
58 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
and Other Business Units
Other Received Cashes Related to Investment
Activities
81,200,000.00
Subtotal of cash inflow from investment
activities
614,705,953.26 959,737,324.02
Cash Paid for Purchase and Construction of
Fixed Assets, Intangible Assets and Other 216,749,664.00 159,714,219.21
Long-term Assets
Cash Paid for Investments 2,312,685,322.60 769,458,199.92
Net Cash Paid for Acquisition of Subsidiaries
and Other Business Units
Other Paid Cashes Related to Investment
Activities
46,000,000.00 11,400,000.00
Subtotal of Cash Outflow from Investment
Activities
2,575,434,986.60 940,572,419.13
Net amount of cash flow generated by
investment activities
-1,960,729,033.34 19,164,904.89
III. Cash Flow from Financing Activities:
Cash Arising from Absorbing Investments 1,978,417,846.74
Cash Arising from Borrowings
Other Received Cashes Related to Financing
Activities
150,000,000.00
Subtotal of cash inflow from financing
activities
2,128,417,846.74
Cash Paid for Debts Repayment 355,000,000.00
Cash Paid for Distribution of Dividends and
Profits or Payment of Interest
197,278,521.49 12,447,287.55
Other Paid Cashes Related to Financing
Activities
Subtotal of cash outflow from financing
activities
197,278,521.49 367,447,287.55
Net cash flow generated by financing
activities
1,931,139,325.25 -367,447,287.55
IV. Impact of Fluctuation in Exchange Rate on
Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 1,279,907,985.83 -143,188,536.56
Add: Cash and Cash Equivalents at the
Commencement of the Period
191,701,837.06 381,071,584.55
VI. Cash and Cash Equivalents at the End of the
Period
1,471,609,822.89 237,883,047.99
Legal Representative: Jianshu Wu Accounting Work Officer: Tieyang Hong Accounting Institution
Officer: Tieyang Hong
59 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Consolidated Statement of Changes in Owners' Equity
For the Period from January 2021 to June 2021
Unit：Yuan Currency：RMB
Semi-annual 2021
Shareholders' Equity Attributable to the Parent Company's Owner
Minority Total
Item Less: General
Other Equity Instruments Shareholders Shareholder s'
Paid-in Capital Other Special
Capital Treasur Surplus Risk Undistributed Other 'Equity Equity
(or Share Comprehensiv Reserve Subtotal
Preferre Perpetua Other s
Reserves y Reserves Reserve Profits
Capital) d Stocks l Bonds s e Incomes s
Shares s
I. Balance at
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
the End of 0 7 4 6 8 7 1 8
Last Year
Add: Changes
in Accounting
Policies
Correctio
n of Errors in
the Previous
Period
Consolid
ated under the
Same Control
Others
II.
Balance at the 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
Start of This 0 7 4 6 8 7 1 8
Year
III. Increases
or Decreases
1,931,359,023.7 2,250,502,176.8 2,254,162,974.2
in This Period 47,058,823.00
4
1,934,152.65 270,150,177.41
0
3,660,797.49
9
(Decreases in
"-")
(I) Total
Compreh 1,934,152.65 459,702,187.79 461,636,340.44 3,660,797.49 465,297,137.93
ensive
60 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Income
(II)
Shareholders'
1,931,359,023.7 1,978,417,846.7 1,978,417,846.7
Contribution 47,058,823.00
4 4 4
and Reduction
in Capital
1. Common
1,931,359,023.7 1,978,417,846.7 1,978,417,846.7
stock invested 47,058,823.00
4 4 4
by the owner
2. Capital
Invested by
Holders of
Other Equity
Instruments
3. Amount of
Share-based
Payments
Recorded into
Shareholders'
Equity
4. Others
(III) Profit -189,552,010.3
-189,552,010.38 -189,552,010.38
Distribution 8
1.
Appropriation
of Surplus
Reserves
2.
Appropriation
of General
Risk Reserves
3. Distribution
-189,552,010.3
to Owners (or 8
-189,552,010.38 -189,552,010.38
Shareholders)
4. Others
(IV) Internal
Carry-forward
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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
Comprehensiv
e
Income
6. Others
(V) Special
Reserves
62 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
1. Withdrawal
in this period
2. Used in this
period
(VI) Others
IV. Balance at
1,102,046,572.0 5,340,798,886.8 -18,697,516.0 474,769,630.8 3,138,579,496.8 10,037,497,070. 34,747,249.7 10,072,244,320.
the End of 0 1 9 6 9 47 0 17
This Period
Semi-annual 2020
Shareholders' Equity Attributable to the Parent Company's Owner
Gener Minority Total
Item Other Equity Instruments Other
Paid-in Capital Capital Less: Special Surplus al Undistributed Shareholders' Shareholders'
Comprehen Other Equity Equity
(Or Share Treasur Reserve Risk Subtotal
Preferre Perpetua Other s
Reserves si ve Reserves Profits
Capital) d Stocks l Bonds s y Share s Reserv
Incomes
es
I. Balance at
1,054,987,749.0 3,409,439,863.0 412,680,608.9 2,502,765,125.4 7,375,492,362.8 29,156,922.1 7,404,649,285.0
the End of 0 7
-4,380,983.53
1 3 8 2 0
Last Year
Add: Changes
in Accounting
Policies
Correctio
n of Errors in
the Previous
Period
Consolid
ated under the
Same Control
Others
II.
Balance at the 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
Start of This 0 7 1 3 8 2 0
Year
III. -10,939,297.9
15,535,566.19 4,596,268.27 -433,477.32 4,162,790.95
2
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Increases or
Decreases in
This Period
(Decreases in
"-")
(I) Total
Compreh -10,939,297.9
215,983,238.50 205,043,940.58 -433,477.32 204,610,463.26
ensive 2
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
(III) Profit -200,447,672.31 -200,447,672.31 -200,447,672.31
Distribution
1.
Appropriation
of Surplus
Reserves
2.
Appropriation
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
of General
Risk Reserves
3. Distribution
to Owners (or -200,447,672.31 -200,447,672.31 -200,447,672.31
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
65 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Earnings of
the
Comprehensiv
e
Income
6. Others
(V) Special
Reserves
1. Withdrawal
in this period
2. Used in this
period
(VI) Others
IV. Balance at
1,054,987,749.0 3,409,439,863.0 -15,320,281.4 412,680,608.9 2,518,300,691.6 7,380,088,631.1 28,723,444.8 7,408,812,075.9
the End of 0 7 5 1 2 5 0 5
This Period
Legal Representative: Jianshu Wu Accounting Work Officer: Tieyang Hong Accounting Institution Officer: Tieyang Hong
Statement of Changes in Owners' Equity of the Parent Company
For the Period from January 2021 to June 2021
Unit：Yuan Currency：RMB
Semi-annual 2021
Other Equity Instruments Other
Total
Specia
Item Less: Compre
Paid-in Capital (Or Share l
Capital Reserves Treasur Surplus Reserves Undistributed Profits
Preferred Perpetua Reser Shareholders'
Capital)
Stocks l Bonds
Others y Share hensive ves
Equity
Income
s
I. Balance at the End of Last Year 1,054,987,749.00 3,409,439,863.07 474,769,630.86 2,898,141,748.80 7,837,338,991.73
Add: Changes in Accounting
Policies
Correction of Errors in the
Previous Period
Others
II. Balance at the Start of This
1,054,987,749.00 3,409,439,863.07 474,769,630.86 2,898,141,748.80 7,837,338,991.73
Year
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
III. Increases or Decreases in This
47,058,823.00 1,931,359,023.74 130,620,773.42 2,109,038,620.16
Period (Decreases in “-“)
(1) Total comprehensive income 320,172,783.80 320,172,783.80
II) Shareholders' Contribution and
47,058,823.00 1,931,359,023.74 1,978,417,846.74
Reduction in Capital
1. Common stock invested by the
47,058,823.00 1,931,359,023.74 1,978,417,846.74
owner
2. Capital Invested by Holders of
Other Equity Instruments
3. Amount of Share-based
Payments Recorded into
Shareholders' Equity
4. Others
(III) Profit Distribution -189,552,010.38 -189,552,010.38
1. Appropriation of Surplus
Reserves
2. Distribution to Owners (or
-189,552,010.38 -189,552,010.38
Shareholders)
3. 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 Comprehensive
Income
6. Others
(V) Special Reserves
1. Withdrawal in this period
2. Used in This Period
(VI) Others
IV. Balance at the End of This
1,102,046,572.00 5,340,798,886.81 474,769,630.86 3,028,762,522.22 9,946,377,611.89
Period
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Semi-annual 2020
Other Equity Instruments Other
Total
Specia
Item Less: Compre
Paid-in Capital (Or Share l
Capital) Preferre Capital Reserves Treasur Reser
Surplus Reserves Undistributed Profits
Perpetua Shareholders'
d Others y Share hensive ves
l Bonds
Stocks
Equity
Income
s
I. Balance at the End of Last Year 1,054,987,749.00 3,409,439,863.07 412,680,608.91 2,539,788,223.59 7,416,896,444.57
Add: Changes in Accounting
Policies
Correction of Errors in the
Previous Period
Others
II. Balance at the Start of This
1,054,987,749.00 3,409,439,863.07 412,680,608.91 2,539,788,223.59 7,416,896,444.57
Year
III. Increases or Decreases in This
84,568,859.27 84,568,859.27
Period (Decreases in “-“)
(I) Total Comprehensive Income 285,016,531.58 285,016,531.58
(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
(III) Profit Distribution -200,447,672.31 -200,447,672.31
1. Appropriation of Surplus
Reserves
2. Distribution to Owners (or
-200,447,672.31 -200,447,672.31
Shareholders)
3. Others
(IV) Internal Carry-forward of
Shareholders' Equity
1. Capital Reserves Transferred
into Capital (or Share Capital)
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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
IV. Balance at the End of This
1,054,987,749.00 3,409,439,863.07 412,680,608.91 2,624,357,082.86 7,501,465,303.84
Period
Legal Representative: Jianshu Wu Accounting Work Officer: Tieyang Hong Accounting Institution Officer: Tieyang Hong
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 30 June, 2021, the Company has issued a total of 1,102,046,572 shares, with a registered
capital of RMB 1,102,046,572, 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 Jianshu Wu is the actual
controller of the Company.
This financial statement was approved for release by the Board of Directors on August 19, 2021.
2. Scope of consolidated statement
√Applicable □Non-applicable
As of June 30, 2021, 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")
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Name of Subsidiary
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")
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 Automotive Electronics Co., Ltd. (hereinafter referred to as "Tuopu Automotive Electronics")
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")
31. Ningbo Tuopu Chassis products Co., Ltd. (hereinafter referred to as "Tuopu Chassis")
32. Tuopu EV Thermal Management System (Ningbo) Co., Ltd. (hereinafter referred to as "Tuopu Thermal
Management")
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 products Co., Ltd. (hereinafter referred to as "Tuopu Chassis")
32. Tuopu EV Thermal Management System (Ningbo) Co., Ltd. (hereinafter referred to as "Tuopu Thermal
Management")
33. Huzhou Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as “Huzhou Tuopu”)
34. TUOPU POLAND SP.Z.O.O (hereinafter referred to as “Tuopu Poland”)
35. Shanghai Tuopu Automobile Parts Co., Ltd. (hereinafter referred to as “Shanghai Tuopu”)
36. Xi’an Tuopu Automobile Parts Co., Ltd (hereinafter referred to as “Xi’an Tuopu”)
37. Tuopu Photovoltaic Technology (Ningbo Beilun) Co., Ltd. (hereinafter referred to as “Photovoltaic Technology
Beilun”)
38. Tuopu Photovoltaic Technology (Ningbo Hangzhou Bay New Area) Co., Ltd. (hereinafter referred to as “Photovoltaic
Technology Hangzhou Bay”)
More details about the changes in the scope of consolidation are available in “VIII. Changes in the
scope of consolidation”.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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.
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.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
4. Functional currency
The reporting currency is Renminbi ("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 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
73 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 can be reclassified
into future profit or loss, and other changes of owners’ equity accounted for under equity
74 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2) Disposal of subsidiaries
①General 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.
②Disposal 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
75 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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:
(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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Foreign currency transactions shall be translated into RMB at the spot exchange rate on the day
when the transactions occurred, or at an excahgne 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.
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
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.
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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 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
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(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.
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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
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
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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.
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
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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.
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
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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
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The perpetual inventory system is adopted.
5. Amortization of low-value consumables and packaging materials
（1）Low-value consumables are amortized using the immediate write-off method;
（2）Packaging materials are amortized using the immediate write-off method.
16. Contract Assets
(1). Recognition methods and standards of contract assets
√Applicable □Non-applicable
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
See “V. 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
Determination method and accounting treatment method of expected credit loss of debt
investment
□Applicable √Non-applicable
19. Other debt investment
Determination methods and accounting treatment methods of expected credit losses of other debt
investments
□Applicable √Non-applicable
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20. Long-term receivables
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.
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.
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(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
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.
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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 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.
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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.
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%
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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 ndicates
Buildings for Straight-line
the remaining 10%
commercial use method
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
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;
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(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
More details are available in Note V. 42. Lease
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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 life 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
Eission rights 5 years Straight-line method Eission 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;
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(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
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
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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.
The amortization period and amortization method of all expenses are:
Item Expected useful life Basis
Decoration cost 5 years Expected benefited period
Software maintenance fee 5 years Expected benefited period
Other 3-5 years Expected benefited period
32. Contract liabilities
Recognition method of contract liabilities
√Applicable □Non-applicable
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
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.
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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.
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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.
(4).Accountant arrangement method of other long-term employee benefits
□Applicable √Non-applicable
34. Lease liabilities
□Applicable √Non-applicable
More details are available in Note V, 42. Lease
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
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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.
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
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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.
(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
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.
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.
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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 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 timing
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.
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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
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.
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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
(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
Accounting policy effective from January 1, 2021
Lease refers to a contract in which the landlord transfers the right to use the asset to the tenant in a
given period to obtain consideration. On the commencement date of the contract, the Company assesses
whether the contract is a lease or includes a lease. If a party in the contract transfers the right to control
the use of one or more identified assets in a given period in exchange for consideration, the contract is a
lease or includes a lease.
If the contract contains a plurality of separate leases at the same time, the Company will split the
contract and perform accounting treatments for each of the separate leases. If the contract contains both
lease and non-lease parts, the tenant and landloard shall separate the lease and non-lease parts.
1. The Company as tenant
(1) Right-of-use assets
On the start date of the lease term, the Company recognizes the right-of-use asset for leases other
than short-term leases and low-value asset leases. Right-of-use assets are initially measured at cost,
which includes:
The initial measurement amount of the lease liability;
For lease payments paid on or before the start of the lease term, if there is a lease incentive, the
amount of the lease incentive already enjoyed is deducted;
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Initial direct expenses incurred by the Company;
The Company's estimated cost for dismantling and removing the leased assets, restoring the site
where the leased assets are located, or restoring the leased assets to the state as set out in the lease terms
and conditions, except for the costs incurred for the production of inventory.
The Company subsequently uses the straight-line method to depreciate the right-of-use assets. If it
can be reasonably determined that the ownership of the leased asset will be obtained at the end of the
lease term, the Company shall depreciate the leased asset over the remaining useful life; otherwise, the
leased asset will be depreciated over the lease term or the remaining useful life of the leased asset,
whichever is shorter.
The Company determines whether the right-of-use asset has been impaired under the principles as
set out in "Note V. 30. Long-term asset impairment", and performs accounting treatment for the
identified impairment loss.
(2) Lease liabilities
On the commencement of the lease term, the Company recognizes lease liabilities for leases other
than short-term leases and leases of low-value assets. Lease liabilities are initially measured based on the
present value of the unpaid lease payments. Lease payments include:
Fixed payment (including the actual fixed payment), if there is a lease incentive, the relevant
amount of the lease incentive will be deducted;
Variable lease payments that depend on an index or rate;
The amount expected to be paid based on the residual value of the guarantee provided by the
company;
The exercise price of the purchase option, provided that the Company reasonably determines that
it will exercise the option;
The amount to be paid to exercise the option to terminate the lease, provided that the lease term
reflects that the company will exercise the option to terminate the lease.
The Company takes the interest rate implicit in the lease as the discount rate, but if the interest rate
implicit in the lease cannot be reasonably determined, the company's incremental borrowing interest rate
is used as the discount rate.
The Company calculates the interest expense of the lease liability during each period of the lease
term according to a fixed periodic interest rate, and includes it in the current profit and loss or the cost of
related assets.
Variable lease payments that are not included in the measurement of lease liabilities are included in
the current profit and loss or the cost of related assets when they actually occur.
After the commencement of the lease term, in any of the following circumstances, the Company
re-measures the lease liability and adjusts the corresponding right-of-use asset. If the book value of the
right-of-use asset has been reduced to zero, but the lease liability still needs to be further reduced, it will
The difference is included in the current profit and loss:
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When the evaluation results of the purchase option, the renewal option or the termination option
change, or the actual exercise of the aforementioned option is inconsistent with the original evaluation
result, the company will discount the lease payment after the change and the revised discount The
present value of the rate calculation remeasures the lease liability;
When the actual fixed payment changes, the expected payable amount of the guarantee residual
value changes, or the index or ratio used to determine the lease payment changes, the company
calculates the present value based on the changed lease payment and the original discount rate
Remeasure the lease liability. However, if changes in lease payments originate from changes in floating
interest rates, the revised discount rate is used to calculate the present value.
(3) Short-term leases and low-value asset leases
The Company elects not to recognize right-of-use assets and lease liabilities for short-term leases
and low-value asset leases, and calculates the relevant lease payments in the current profit and loss or
related asset costs on a straight-line basis in each period of the lease term. Short-term lease refers to a
lease that does not include purchase options for a lease period not exceeding 12 months at the beginning
of the lease period. Low-value asset leasing refers to a lease with a lower value when a single leased
asset is a new asset. If the Company subleases or expects to sublease the leased assets, the original lease
is not a low-value asset lease.
(4) Lease change
If the lease is changed and the following conditions are met at the same time, the company shall
treat the lease change as a separate lease for accounting treatment:
The lease change expands the scope of the lease by adding one or more use rights to leased assets;
The increased consideration is equivalent to the amount of the individual price of the expanded
part of the lease scope adjusted according to the contract conditions.
If the lease change is not accounted for as a separate lease, on the effective date of the lease change,
the Company reapportions the consideration of the contract after the change, re-determines the lease
term, and calculates the current lease payment based on the lease payment after the change and the
revised discount rate. The value of the lease liability is remeasured.
If the lease change causes the scope of the lease to be reduced or the lease term is shortened, the
Company will correspondingly reduce the book value of the right-of-use asset, and the relevant gains or
losses from the partial or complete termination of the lease are included in the current profit and loss. If
other lease changes cause the lease liability to be remeasured, the company adjusts the book value of the
right-of-use asset accordingly.
2. The Company as .landlord
On the commencement date of the lease, the Company divides the lease into financial lease and
operating lease. Finance lease refers to a lease in which almost all the risks and rewards related to the
ownership of the leased asset are transferred regardless of whether the ownership is ultimately
transferred. Operating leases refer to leases other than financial leases. When the Company acts as a
sublease lessor, it classifies subleases based on the right-of-use assets generated from the original lease.
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(1) Accounting treatment of operating leases
The lease receipts of operating leases are recognized as rental income in each period of the lease
term according to the straight-line method. The Company capitalizes the initial direct costs incurred
related to operating leases, and allocates them to the current profit and loss on the same basis as the
confirmation of rental income during the lease term. Variable lease payments that are not included in the
lease receipts are included in the current profit and loss when they actually occur. If an operating lease is
changed, the company will account for it as a new lease from the effective date of the change, and the
amount of advance receipts or lease receivables related to the lease before the change shall be regarded
as the receipts of the new lease.
(2) Accounting treatment of financial leasing
On the commencement date of the lease, the Company recognizes the financial lease receivables for
the financial lease and terminates the recognition of the financial lease assets. When the Company
initially measures the financial lease receivables, the net lease investment is taken as the entry value of
the financial lease receivables. The net lease investment is the sum of the unguaranteed residual value
and the present value of the lease payment that has not been received at the beginning of the lease term,
discounted at the interest rate implicit in the lease.
The Company calculates and recognizes the interest income for each period of the lease term based
on a fixed periodic interest rate. The derecognition and impairment of financial lease receivables shall be
accounted for in accordance with this Note "V. 10. Financial Instruments".
Variable lease payments that are not included in the measurement of the net lease investment are
included in the current profit and loss when they actually occur.
If a financial lease is changed and the following conditions are met at the same time, the Company
shall treat the change as a separate lease for accounting treatment:
The change expands the scope of the lease by adding one or more use rights to leased assets;
The increased consideration is equivalent to the amount of the individual price of the expanded
part of the lease scope adjusted according to the contract conditions.
If the change of the financial lease is not accounted for as a separate lease, the company shall deal
with the changed lease in the following situations:
If the change takes effect on the lease start date, the lease will be classified as an operating lease,
and the Company will start accounting for it as a new lease from the lease change effective date, and use
the net lease investment before the lease change effective date as The book value of the leased asset;
If the change takes effect on the lease start date, the lease will be classified as a financial lease,
and the company will conduct accounting treatment in accordance with the policy of this note "V. 10.
Financial Instruments" on the modification or renegotiation of the contract.
3. Sale and leaseback transaction
The Company evaluates and determines whether the asset transfer in the sale and leaseback
transaction is a sale in accordance with the principles described in "V. 38. Revenue".
(1) As tenant
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If the asset transfer in the sale and leaseback transaction is a sale, the company as the lessee
measures the right-of-use asset formed by the sale and leaseback based on the portion of the original
asset's book value related to the right to use obtained from the leaseback, and only transfers it to the
lease The rights of the person confirm the relevant gains or losses; if the asset transfer in the sale and
leaseback transaction does not belong to the sale, the company as the lessee continues to confirm the
transferred assets and at the same time confirms a financial liability equal to the transfer income. For the
accounting treatment of financial liabilities, see "V. 10. Financial Instruments".
(2) As landlord
If the asset transfer in the sale and leaseback transaction is a sale, the company acts as the lessor to
account for the purchase of the asset, and the asset lease is accounted for in accordance with the
aforementioned "2. The company as the lessor" policy; in the sale and leaseback transaction If the
transfer of assets is not a sale, the company as the lessor does not recognize the transferred assets, but
recognizes a financial asset equal to the transfer income. For the accounting treatment of financial assets,
see "V. 10. Financial Instruments”.
Accounting policy effective before January 1, 2021
Leases are divided into financial leases and operating leases. Finance lease refers to a lease that has
substantially transferred all the risks and rewards related to asset ownership. Operating leases refer to
leases other than financial leases.
1. Accounting treatment of operating leases
(1) The lease fee paid by the Company for rented assets shall be apportioned on a straight-line basis
during the entire lease period without deducting the rent-free period and included in the current expenses.
The initial direct expenses related to the lease transaction paid by the Company shall be included in the
current expenses.
When the asset lessor bears the lease-related expenses that should be borne by the company, the
company deducts this part of the cost from the total rent, amortizes the deducted rent during the lease
term, and counts it into the current expenses.
(2) The lease fee charged by the Company for lease of assets shall be apportioned on a straight-line
basis during the entire lease period without deducting the lease-free period and recognized as
lease-related income. The initial direct expenses paid by the company related to the lease transaction
shall be included in the current expenses; if the amount is large, it shall be capitalized and included in
the current income in installments based on the same basis as the lease-related income recognition
during the entire lease period.
When the Company bears the lease-related expenses that should be borne by the lessee, the
company deducts this part of the expenses from the total rental income, and distributes the deducted
rental expenses during the lease term.
43. Other significant accounting policies and accounting estimates
□Applicable √Non-applicable
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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 "Accounting Standards for Business Enterprises No.
Business Enterprises No. 21-Lease (2018 Revision)" (Cai
21-Lease (2018 Revision)" (Cai Kuai [2017] No. 35)
Kuai [2017] No. 35) on Dec.7,
2018, the Company will
implement the updated version
of revenue standards from
January 1, 2020.
Other Notes
The Company will implement the updated version of revenue standard from January 1, 2021. Under
the updated standard, for contracts existing before the first execution date, the company chooses not to
reassess whether it is a lease or includes a lease on the first execution day.
(1) The Company as tenant
Under the original lease standard, the Company will transfer all risks and rewards related to asset
ownership to the Company based on whether the lease is substantially transferred to the Company, and
the lease is divided into financial lease and operating lease.
Under the new lease standards, the Company no longer distinguishes between financial leases and
operating leases, and recognizes right-of-use assets and lease liabilities for all leases (except short-term
leases and low-value asset leases that choose simplified treatment methods).
The Company elects to adjust the amount of retained earnings and other related items in the
financial statements at the beginning of the year when the new lease standard was first implemented
based on the cumulative impact of the new lease standard implementation for the first time, without
adjusting the comparable period information.
For operating leases before the first implementation date, the company measures the lease liabilities
based on the present value of the remaining lease payments discounted by the Japanese company’s
incremental borrowing interest rate for the first implementation on the first implementation date, and
measures the right-of-use assets at the same amount as the lease liabilities, and Make necessary
adjustments based on the prepaid rent. While applying the above methods, the company adopts one or
more of the following simplified treatments according to each lease option:
1) Leases that will be completed within 12 months after the first implementation date are treated as
short-term leases;
2) To measure lease liabilities, use the same discount rate for leases with similar characteristics;
3) The measurement of right-of-use assets does not include initial direct costs;
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4) If there is an option to renew the lease or to terminate the lease, the lease term shall be
determined according to the actual exercise of the option before the first execution date and other latest
conditions;
5) As an alternative to the impairment test of the right-of-use asset, according to the "Accounting
Standards for Business Enterprises No. 13-Contingent Events", assess whether the contract containing
the lease is a loss-making contract before the first execution date, and record it in the balance sheet
according to the first execution date Adjust the amount of loss reserves for the right-of-use asset;
6) For lease changes that occur before the beginning of the year when the new lease standard is first
implemented, no retrospective adjustment will be made, and the accounting treatment will be carried out
in accordance with the new lease standard according to the final arrangement of the lease change.
(2) The Company as landlord
Under the new lease standards, the company, as a sublease lessor, should classify subleases based
on the right-of-use assets generated by the original lease, rather than the underlying assets of the original
lease. For sub-leases that are classified as operating leases before the first implementation date and
continue after the first implementation date, the Company reassesses them based on the remaining
contract duration and terms of the original lease and sub-leases on the first implementation date, and
classifies them in accordance with the new lease standards. If it is reclassified as a finance lease, the
company treats it as a new finance lease for accounting treatment.
Except for sub-lease, the Company does not need to adjust its lease as a lessor to adjust the amount
of retained earnings at the beginning of the year and other related items in the financial statements for
the first time implementing the new lease standard. The Company conducts accounting treatment in
accordance with the new lease standard from the date of first implementation.
(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
(4). Notes to compared data before and after the adjustment according to the first implementation
of the new lease accounting standard in 2021
□Applicable √Non-applicable
45. Others
□Applicable √Non-applicable
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VI. Taxes
1. Major categories of taxes and tax rates
Main categories of taxes and tax rates
√Applicable □Non-applicable
Tax category Taxation basis Tax rate
Calculate the output tax based on 13%, 9%, 6% (Note 1)
the sales of goods and taxable
labor income calculated under the
VAT tax law. With the input tax
allowable for deduction in the
current period deducted, the
difference is the VAT payable
Consumption tax
Business tax
Urban Maintenance and Calculated based on the actual 7%、5%、1%（Note 2）
Construction Tax VAT paid
Calculated based on the taxable 34%、28%、25%、24%、22.2%、
Enterprise income tax
income 16.5%、15%、13%
Calculated based on the actual 3%
Education Surcharges
VAT paid
Calculated based on the actual 2%, 1.5% (Note 3)
Local Education Surcharges
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 Automotive Electronics 5%
Zhejiang Towin 5%
Sichuan Maigao 5%
Shanghai Towin 1%
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Name of Taxpayer Urban Maintenance and Construction Tax Rate
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 Automotive Electronics 15
Zhejiang Towin 15
Sichuan Maigao 28
Tuopu North American Ltd 13
Tuopu North American USA Limited, INC 13
Tuopu International 16.50
Tuopu Sweden 22.20
TUOPU (MALAYSIA) SDN.BHD. 24
Tuopu Brasil 34
Tuopu Poland 19
Other company 25
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 Company has submitted relevant documents for re-certification of hi-tech enterprise and as of
the date of this financial report, the Company has not yet passed the certification. Under the “SAT
Circular of 2017” (No.24), the enterprise income tax will be prepaid at 15% in the year when the
qualification as hi-tech enterprise expires, the corporate income tax is prepaid at 15% until the date of
re-certification. The corporate income tax rate for the period from January 2021 to June 2021 is 15%.
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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 2020 to 2022. The corporate income tax rate for
the period from January 2021 to June 2021 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), 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 the period
from January 2021 to June 2021 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), 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 Automotive Electronics 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 the period from January 2021 to June 2021 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), 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 the period from January 2021 to June 2021 is 15%.
6. 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" (Notice of the Ministry of Finance, the General Administration of
Customs, and the State Administration of Taxation [2020] No.23), any enterprise engaged in an
encouraged industry in Western China will pay corporate income tax at 15% from January 1st, 2021 to
December 31st, 2030. 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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 the period from January 2021 to June 2021 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 the
Item Balance at the End of the Period
Period
Cash on Hand 10,329.69 8,899.73
Bank Balance 1,709,286,472.29 674,857,522.35
Other Cash and Bank Balances 112,805,901.59 112,257,224.37
Total 1,822,102,703.57 787,123,646.45
Including: Total Amount Deposited
132,717,659.65 70,846,825.02
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 112,805,901.59 112,257,224.37
Total 112,805,901.59 112,257,224.37
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
value and whose changes are included in 401,276,432.56 176,111.00
the current profit and loss
Including:
Short-term financial products 400,000,000.00
Equity instrument investment 1,276,432.56 176,111.00
Financial assets that are designated to be
measured at fair value and whose
changes are included in the current
profit and loss
Including:
Total 401,276,432.56 176,111.00
Other Notes
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
□Applicable √Non-applicable
3. Derivative Financial Assets
□Applicable √Non-applicable
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 350,653,610.60 296,283,951.73
Commercial Acceptance Notes
Total 350,653,610.60 296,283,951.73
(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 350,653,610.60
Commercial Acceptance Notes
Total 350,653,610.60
(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
(6). Provision for bad debts
√Applicable □Non-applicable
(7). Notes receivable actually written off in the current period
□Applicable√Non-applicable
Other notes:
□Applicable√Non-applicable
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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 2,297,430,093.66
Subtotal within 1 year 2,297,430,093.66
1 to 2 years 20,926,705.04
2 to 3 years 12,488,487.23
Over 3 years 8,463,231.93
3 to 4 years
4 to 5 years
Over 5 years 5,627,793.14
Provision for bad debts -133,579,911.39
Total 2,211,356,399.61
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(2）. Categorial 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
Category Book Balance Bad Debt Provision Book Balance Bad Debt Provision
Accrued Accrued
Percentag Book Value Percentag Book Value
Amount Amount Proportio Amount Amount Proportio
e (%) e (%)
n (%) n (%)
Bad debt
provision
accrued 7,536,306.12 0.32 7,536,306.12 100.00 7,929,510.12 0.42 7,929,510.12 100.00
based on
single item
Including:
Bad debt
provision
accrued 7,536,306.12 0.32 7,536,306.12 100.00 7,929,510.12 0.42 7,929,510.12 100.00
based on
single item
Bad debt
provision
accrued 2,337,400,004.8 126,043,605.2 2,211,356,399.6 1,885,685,399.7 102,418,392.1 1,783,267,007.6
99.68 5.39 99.58 5.43
based on 8 7 1 6 1 5
combination
s
Including:
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Bad debt
provision
accrued
2,337,400,004.8 126,043,605.2 2,211,356,399.6 1,885,685,399.7 102,418,392.1 1,783,267,007.6
based on 99.68 5.39 99.58 5.43
8 7 1 6 1 5
aging
combination
s
2,344,936,311.0 / 133,579,911.3 / 2,211,356,399.6 1,893,614,909.8 / 110,347,902.2 / 1,783,267,007.6
Total
0 9 1 8 3 5
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
recover
Zhejiang Green Field Motor Co., 414,778.13 414,778.13 100.00 Expected to be unable to
Ltd. recover
Total 7,536,306.12 7,536,306.12 100.00 /
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 (%)
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Within 1 year (including 1 year) 2,297,430,093.66 114,871,504.69 5.00
1-2 years (including 2 years) 20,926,705.04 2,092,670.50 10.00
2-3 years (including 3 years) 12,073,709.10 3,622,112.73 30.00
3-5 years (including 5 years) 3,780,449.33 2,268,269.60 60.00
Over 5 years 3,189,047.75 3,189,047.75 100.00
Total 2,337,400,004.88 126,043,605.27 5.39
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 7,929,510.12 7,929,510.12 393,204.00 7,536,306.12
accrued based on single
item
Bad debt provision 102,418,392.11 102,418,392.11 23,625,213.16 126,043,605.27
accrued based on
combinations
Total 110,347,902.23 110,347,902.23 23,625,213.16 393,204.00 133,579,911.39
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
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(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 Proportion in Total
Accounts Receivable Bad Debt Provision
Accounts Receivable (%)
No.1 1,070,467,059.43 45.65 53,523,352.97
No.2 339,484,850.86 14.48 16,974,242.54
No.3 268,728,678.08 11.46 13,436,433.90
No.4 102,505,770.89 4.37 5,125,288.54
No.5 83,466,268.17 3.56 4,173,313.41
Total 1,864,652,627.43 79.52 93,232,631.36
(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 874,151,202.33 742,203,122.21
Total 874,151,202.33 742,203,122.21
Changes in the financing of receivables and changes in fair value in the current period:
√Applicable □Non-applicable
Item Balance at the Increase in the Derecognition in Other Balance at the
End of Current Period the Current Period Changes End of the
Previous Year Period
Bank 714,860,797.35 2,877,137,811.80 2,750,625,657.48 -20,000,000.00 821,372,951.67
Acceptance
Notes
Commercial 27,342,324.86 59,186,053.33 30,972,324.86 -2,777,802.67 52,778,250.66
Acceptance
Notes
Total 742,203,122.21 2,936,323,865.13 2,781,597,982.34 -22,777,802.67 874,151,202.33
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 766,338,805.85
Commercial Acceptance Notes 45,602,218.33
Total 811,941,024.18
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 Non-derecognised amount at the
of the period end of the period
Bank Acceptance Notes 1,893,265,656.73
Total 1,893,395,656.73
3. Provision for impairment of accounts receivable financing
As of June 30th, 2021, the amount of commercial acceptance notes was RMB 55,556,053.33, 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 2,777,802.67according 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 49,242,145.75 91.93 38,834,366.57 90.56
1-2 years 2,840,257.74 5.30 2,579,881.03 6.02
2-3 years 850,500.09 1.59 838,134.84 1.95
Over 3 years 631,435.96 1.18 631,435.96 1.47
Total 53,564,339.54 100.00 42,883,818.40 100.00
(2).Particulars of advance payment of the top five closing balances by prepayment parties
√Applicable □Non-applicable
Proportion in total balance
Balance at the end of the
Prepayments made to of prepayments at the end
period
of the period
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Proportion in total balance
Balance at the end of the
Prepayments made to of prepayments at the end
period
of the period
GLOBAL GLORY GROUP LIMITED 2,399,517.09 4.48
联益达旺橡胶有限公司
2,255,140.27 4.21
Lianyi Dawang Rubber Co., Ltd.
Johnson Electric (Guangdong) Co., Ltd. 2,057,903.56 3.84
Sri Trang Agro-Industry (Shanghai) Co., Ltd. 1,290,566.03 2.41
Groz-Beckert Trading (Shenzhen) Co., Ltd. 752,132.98 1.40
Total 8,755,259.93 16.34
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 51,992,724.93 31,087,166.38
Total 51,992,724.93 31,087,166.38
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
(1). Dividend Receivable
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(5). Important dividend receivable with an aging over 1 year
□Applicable √Non-applicable
(3). Particulars of bad debt provision
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
Other Receivables
(4). 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 53,597,851.23
Subtotal within 1 year 53,597,851.23
1-2 years 537,251.95
2-3 years 336,230.00
Over 3 years 889,696.23
3-4 years
4-5 years
Over 5 years 237,800.00
Bad debt provision -3,606,104.48
Total 51,992,724.93
(5). Categorized by the nature of funds
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Book balance at the end of the Book balance at the beginning
Nature of Funds
period of the period
Petty cash funds 316,225.00 122,815.13
Security deposit 50,221,574.97 29,417,358.76
Other 5,061,029.44 4,122,370.20
Total 55,598,829.41 33,662,544.09
(6). Particulars of bad debt provision
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Phase 1 Phase 2 Phase 3
Expected credit loss Expected credit loss
Bad debt Expected credit throughout the throughout the
Total
provision loss in the next duration (no credit duration (credit
12 months impairment impairment has
occurred) occurred)
Balance on
2,575,377.71 2,575,377.71
January 1, 2021
Balance of the
current period on
January 1, 2021
--Transfer to
119 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Phase 2
--Transfer to
Phase 3
--Transfer to
Phase 2
--Transfer to
Phase 1
Provision made in
1,030,726.77 1,030,726.77
the current period
Reversal in the
current period
Write-off in the
current period
Write-off in the
current period
Other changes
Balance on
December 31, 3,606,104.48 3,606,104.48
2021
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
(7). Particulars of bad debt provision
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Balance at the Amount Changed in the Current Period Balance at
Category Beginning of Withdrawal Other the End of
Provision Write-off
the Period or Reversal changes the Period
Accounts
receivable with
bad debt
2,575,377.71 1,030,726.77 3,606,104.48
accrued based
on aging
portfolio
Total 2,575,377.71 1,030,726.77 3,606,104.48
Bad debt provision in the current period with significant amount of withdrawal or reversal:
□Applicable √Non-applicable
(8). Particulars of other receivables actually written off in the current period
□Applicable √Non-applicable
(9). Particulars of other receivables of the top five closing balances collected by debtors
√Applicable □Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Unit：Yuan Currency：RMB
Proportion in total Balance of bad
Balance at the
Nature of other receivables at debt provision at
Name of Unit end of the Aging
funds the end of the the end of the
period
period (%) period
Ningbo Security 46,237,313.00 Within 1 83.16 2,311,865.65
Hangzhou Bay deposit year
New Zone
Administration
Committee for
Development
and
Construction
Special Security 982,393.23 Within 1 1.77 49,119.66
custody deposit year
account of
Beilun
Customs of the
People’s
Republic of
China
Zhejiang Geely Security 800,000.00 Within 1 1.44 40,000.00
Holding Group deposit year
Automobile
Sales Co., Ltd.
Ningbo Security 666,000.00 Within 1 1.20 33,300.00
Hangzhou Bay deposit year
New Area
Haichuang
Industrial Co.,
Ltd.
Liu Hongsong Other 455,000.00 2-4 years 0.82 259,500.00
Total / 49,140,706.23 / 88.39 2,693,785.31
(10). Accounts receivable related to government subsidies
□Applicable √Non-applicable
(11). Other accounts receivable derecognised due to transfer of financial assets
□Applicable √Non-applicable
(12). Amount of assets and liabilities generated due to transfer of other receivables and continued
involvement
□Applicable √Non-applicable
Other notes:
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 298,956,473.92 298,956,473.92 217,685,102.37 217,685,102.37
WIPs
Finished goods 463,604,033.64 44,191,371.19 419,412,662.45 617,392,628.62 38,312,844.14 579,079,784.48
Revolving materials 47,125,476.98 47,125,476.98 15,283,612.95 15,283,612.95
Consumptive biological
assets
Contract performance cost
Production cost 271,130,489.15 271,130,489.15 244,417,226.39 244,417,226.39
Delivered goods 574,847,332.66 574,847,332.66 446,286,110.69 446,286,110.69
Total 1,655,663,806.35 44,191,371.19 1,611,472,435.16 1,541,064,681.02 38,312,844.14 1,502,751,836.88
(2). Inventory depreciation provision and contract performance cost impairment provision
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Balance at the Start Increase in the Current Period Decrease in the Current Period Balance at the
Item
of the Period Accrued Other Reversal or Write-off Other End of the Period
Raw materials
WIPs
Finished goods 38,312,844.14 9,508,691.87 3,630,164.82 44,191,371.19
Revolving materials
Consumptive
biological assets
Contract
performance cost
Total 38,312,844.14 9,508,691.87 3,630,164.82 44,191,371.19
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(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
Other notes:
□Applicable √Non-applicable
11. Held-for-sale assets
□Applicable √Non-applicable
12. Non-current assets due within one year
□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 201,241,840.10 168,424,657.71
Prepaid income tax 1,256,438.32 5,400,034.11
Total 202,498,278.42 173,824,691.82
14. Debt Investment
(1). Particulars of debt investment
□Applicable √Non-applicable
123 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2). Important debt investment at the end of the period
□Applicable √Non-applicable
(3). Particulars of provision for impairment
□Applicable √Non-applicable
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
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
(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
Other notes:
□Applicable √Non-applicable
124 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
17. Long-term Equity Investment
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Decrease/Increase in the current period Balan
ce of
Provi impair
Adjustm Other
Investment sion ment
Balance at the Inves Inves ent on chan Balance at the
profit and loss Cash dividends for provis
Invested Entity Beginning of the tment tment other ges Oth End of the
recognized or profit declared impai ion at
Period Incre Decr compreh in er Period
under the to distribute rment the
ased eased ensive equit
equity method accru end of
income y
ed the
period
I. Joint ventures
Tuopu Electrical
Appliances Co., Ltd.
(hereinafter referred to as 62,576,414.03 2,956,361.83 20,000,000.00 45,532,775.86
“Tuopu Electrical
Appliances”)
Ningbo Borgers Tuopu
Automobile Parts Co.,
77,081,863.30 5,766,621.32 82,848,484.62
Ltd. (hereinafter referred
to as “Ningbo Borgers)
Subtotal 139,658,277.33 8,722,983.15 20,000,000.00 128,381,260.48
II. Affiliates
Chongqing Antolin
Tuopu Overhead System
Co., Ltd. (hereinafter 10,637,706.25 -281,789.45 10,355,916.80
referred to as
“Chongqing Antolin”)
Subtotal 10,637,706.25 -281,789.45 10,355,916.80
Total 150,295,983.58 8,441,193.70 20,000,000.00 138,737,177.28
125 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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
20. Investment property
Measurement options of investment property
(1). Investment properties measured by cost method
Unit：Yuan Currency：RMB
Buildings and
Item Land use rights Projects under Total
constructions
Construction
I . Original book value
1. Balance at the 55,752,294.93
49,063,282.93 6,689,012.00
beginning of the period
2. Increased in the Current
Period
(1) Purchase
(2) Transfer-in of
Inventory\Fixed
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
49,063,282.93 6,689,012.00 55,752,294.93
the period
II. Accumulated Depreciation
and Amortization
1. Balance at the 24,148,876.81
21,687,451.18 2,461,425.63
beginning of the period
2. Increased in the 837,100.68
746,933.78 90,166.90
Current Period
(1) Accrual or 837,100.68
746,933.78 90,166.90
Amortization
3. Decreased in the
Current Period
(1) Disposal
126 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2) Other transfer-out
4. Balance at the end of 24,985,977.49
22,434,384.96 2,551,592.53
the period
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
26,628,897.97 4,137,419.47 30,766,317.44
of the period
2. Book value at the
27,375,831.75 4,227,586.37 31,603,418.12
beginning of the period
(2). Particulars of investment property without the property right certificate granted
□Applicable √Non-applicable
Other note
□Applicable √Non-applicable
21. Fixed assets
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
Fixed assets 4,613,026,763.88 4,248,257,966.73
Disposal of fixed assets
Total 4,613,026,763.88 4,248,257,966.73
127 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Fixed assets
(1). Particulars of fixed Assets
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Houses and Means of Machinery and Office and Buildings for
Item Total
buildings transportation equipment equipment and others commercial use
I . Original book value
1. Balance at the beginning of the period 2,073,264,004.72 3,846,134,511.39 31,988,613.22 199,000,728.36 68,200,328.83 6,218,588,186.52
2. Increased in the Current Period 13,078,376.93 602,982,926.19 1,461,747.71 12,921,559.93 630,444,610.76
(1) Purchase 201,492.45 102,450,430.80 1,461,747.71 10,163,459.09 114,277,130.05
(2) Transfer-in of construction in progress 12,876,884.48 500,532,495.39 2,758,100.84 516,167,480.71
(3) Increase from business combination
3. Decreased in the Current Period 28,195,028.09 535,977.18 456,571.95 29,187,577.22
(1) Disposal or scrapping 28,195,028.09 535,977.18 456,571.95 29,187,577.22
4. Balance at the end of the period 2,086,342,381.65 4,420,922,409.49 32,914,383.75 211,465,716.34 68,200,328.83 6,819,845,220.06
II. Accumulated Depreciation
1. Balance at the beginning of the period 357,206,206.02 1,493,030,127.66 23,887,832.93 93,777,434.96 2,428,618.22 1,970,330,219.79
2. Increased in the Current Period 46,221,286.31 190,228,349.98 2,049,061.34 10,016,266.62 792,441.95 249,307,406.20
(1) Accrual 46,221,286.31 183,511,553.81 2,049,061.34 9,831,737.49 792,441.95 242,406,080.90
(2) Other increases 6,716,796.17 184,529.13 6,901,325.30
3. Decreased in the Current Period 11,973,817.25 505,359.51 339,993.05 12,819,169.81
(1) Disposal or scrapping 11,973,817.25 505,359.51 339,993.05 12,819,169.81
4. Balance at the end of the period 403,427,492.33 1,671,284,660.39 25,431,534.76 103,453,708.53 3,221,060.17 2,206,818,456.18
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 period 1,682,914,889.32 2,749,637,749.10 7,482,848.99 108,012,007.81 64,979,268.66 4,613,026,763.88
2. Book value at the beginning of the period 1,716,057,798.70 2,353,104,383.73 8,100,780.29 105,223,293.40 65,771,710.61 4,248,257,966.73
128 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2). Particulars of temporarily idle fixed assets
□Applicable √Non-applicable
(3). Particulars of fixed assets rented under financial leasing
□Applicable √Non-applicable
(4). 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 475,629,099.61 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 1,386,448,449.11 943,993,396.96
Construction supplies and
materials
Total 1,386,448,449.11 943,993,396.96
129 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Construction in Progress
(1). Particulars 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 decline Provision for decline
Book Balance Book value Book Balance Book value
in value in value
Equipment and software 670,942,694.26 670,942,694.26 682,154,841.45 682,154,841.45
installation project
Molds of the group under 85,502,602.27 85,502,602.27 83,278,532.30 83,278,532.30
fabrication
Intelligent Brake project of the 11,700,259.32 11,700,259.32 10,760,304.53 10,760,304.53
group headquarter
Wuhan Tuopu Project 4,310,110.11 4,310,110.11 5,106,988.41 5,106,988.41
Liuzhou Tuopu Project 869,724.78 869,724.78
Taizhou Tuopu Project 46,982,354.92 46,982,354.92 43,526,245.62 43,526,245.62
Mechatronics Project 103,846,158.54 103,846,158.54 25,674,905.15 25,674,905.15
Sichuan Maigao Project 13,001,251.20 13,001,251.20 11,545,959.74 11,545,959.74
Hunan Tuopu Project 85,413,703.66 85,413,703.66 27,462,126.30 27,462,126.30
Tuopu Thermal Management 235,668,333.75 235,668,333.75 10,706,712.33 10,706,712.33
Project
Tuopu Chassis Project 128,211,256.30 128,211,256.30 43,776,781.13 43,776,781.13
Total 1,386,448,449.11 1,386,448,449.11 943,993,396.96 943,993,396.96
130 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2). Changes in significant construction in progress during the current period
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Other
Project Includin
amoun Accum Capitaliza
accumulati g:
ts u tion rate
ve capitaliz
Transfer decre lated of the
Balance at Increased in Balance at the investment ed Capital
amounts of ased Project capitali interest in
Item Budget the Start of the current End of the as a interest
fixed assets in progress z the Source
the Period period Period percentage amount
in this period curre ed current
of the in the
nt interest period
budget current
perio amount (%)
(%) period
d
Equipment
and Under
682,154,841.4 440,294,123. 451,506,271. Self-funde
software 670,942,694.26 constructio
5 85 04 d or raised
installatio n
n project
Molds of
Under
the group 54,027,263.0 51,803,193.1 Self-funde
83,278,532.30 85,502,602.27 constructio
under 8 1 d
n
fabrication
Intelligent
Brake
Under
project of 12,688,671.0 11,748,716.2 Self-funde
530,000,000.00 10,760,304.53 11,700,259.32 99.25 constructio
the group 2 3 d or raised
n
headquarte
r
Taizhou Under
Self-funde
Tuopu 45,000,000.00 43,526,245.62 3,456,109.30 46,982,354.92 97.45 constructio
d
Project n
Tuopu
Chassis 84,434,475.1 Under Self-funde
240,000,000.00 43,776,781.13 128,211,256.30 53.42
Project 7 constructio d
n
131 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Mechatron Under
78,171,253.3 Self-funde
ics Phase 130,000,000.00 25,674,905.15 103,846,158.54 79.88 constructio
9 d or raised
II Project n
Tuopu
Under
Thermal 1,100,000,000.0 224,961,621. Self-funde
10,706,712.33 235,668,333.75 21.42 constructio
Managem 0 42 d
n
ent Project
Other
Under
house and Self-funde
98,598,566.91 6,105,523.17 1,109,300.33 103,594,789.75 constructio
building d
n
project
2,045,000,000.0 998,476,889.4 904,139,040.4 516,167,480.7 1,386,448,449.1 / / / /
Total
0 2 0 1 1
(3). Provision for impairment of construction in progress in the current period
□Applicable √Non-applicable
Other notes
□Applicable √Non-applicable
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
132 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
24. Oil and gas assets
□Applicable √Non-applicable
25. Right-of-use assets
□Applicable √Non-applicable
Unit：Yuan Currency：RMB
Item Houses and buildings Total
I . Original book value
1. Opening Balance
2. Increased in the Current Period 25,409,428.46 25,409,428.46
(1) Purchase 25,409,428.46 25,409,428.46
3. Decreased in the Current Period
4. Balance at the end of the period 25,409,428.46 25,409,428.46
II. Accumulated amortization
1. Balance at the beginning of the period
2. Increased in the Current Period 2,962,087.30 2,962,087.30
(1) Accrual 2,962,087.30 2,962,087.30
3. Decreased in the Current Period
(1) Disposal
4. Balance at the end of the period 2,962,087.30 2,962,087.30
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 of the period 22,447,341.16 22,447,341.16
2.Book value at the beginning of the period
133 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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
1. Opening Balance 703,393,774.52 67,847,717.99 1,548,222.50 772,789,715.01
2. Increased in the Current
195,887,989.84 2,157,254.01 198,045,243.85
Period
(1) Purchase 195,887,989.84 2,157,254.01 198,045,243.85
(2) Internal research and
development
(3) Acquisition
3. Decreased in the Current
Period
(1) Disposal
4. Balance at the end of the
899,281,764.36 70,004,972.00 1,548,222.50 970,834,958.86
period
II. Accumulated amortization
1. Balance at the
67,825,404.83 25,669,301.94 733,902.38 94,228,609.15
beginning of the period
2. Increased in the Current
8,411,259.95 3,828,960.30 165,325.57 12,405,545.82
Period
(1) Accrual 8,411,259.95 3,828,960.30 165,325.57 12,405,545.82
3. Decreased in the
Current Period
(1) Disposal
4. Balance at the end of
76,236,664.78 29,498,262.24 899,227.95 106,634,154.97
the period
III. Provision for Impairment
134 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 of the
823,045,099.58 40,506,709.76 648,994.55 864,200,803.89
period
2.Book value at the beginning
635,568,369.69 42,178,416.05 814,320.12 678,561,105.86
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
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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
Name of invested entity or period Balance at the
beginning of the
matter forming goodwill Generated end of the period
period
from Dispos
business al
combination
Tuopu North American
1,080,371.29 1,080,371.29
USA Limited,INC
Ningbo Qianhui 6,058,537.77 6,058,537.77
Goodwill formed by the
acquisition of chassis
business from Zhejiang 279,645,980.89 279,645,980.89
Towin and Sichuan
Maigao
Total 286,784,889.95 286,784,889.95
(2). Provision of impairment in goodwill
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Increased in Decreased in
Balance at the the current the current
Name of invested entity or matter Balance at the
beginning of the period period
forming goodwill end of the 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
(3). 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.
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(4). 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
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
Balance at the Prepaid Other Balance at the
Increased in the
Item beginning of Expenses in Amounts End of the
current period
the period This Period Decreased Period
Decoration 22,615,107.37 5,640,684.43 144,777.77 16,829,645.17
cost et al.
Others 35,064,152.57 34,249,670.86 17,310,617.39 540,123.46 51,463,082.58
Total 57,679,259.94 34,249,670.86 22,951,301.82 684,901.23 68,292,727.75
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 Deferred Taxable Deferred
temporary Income Tax temporary Income Tax
difference Liabilities difference Liabilities
Provision for impairment
184,155,189.70 40,811,411.41 152,675,193.81 33,337,345.97
of assets
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Unrealized profits from
100,134,827.73 24,037,036.89 111,200,512.26 25,696,889.57
internal transactions
Deductible loss
Deferred income 216,751,883.66 36,169,820.50 214,204,302.56 35,934,324.34
Total 501,041,901.09 101,018,268.80 478,080,008.63 94,968,559.88
(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
combination of the 45,103,667.40 11,275,916.85 46,761,294.44 11,690,323.61
companies not under the
same control
Changes in the fair value
of other equity
instrument investments
Changes in the fair value
of other debt investments
Accelerated depreciation
309,611,521.00 46,441,728.15 268,117,758.73 40,217,663.81
of fixed assets
Total 354,715,188.40 57,717,645.00 314,879,053.17 51,907,987.42
(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
31. 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
Provision Provision
Item Book
Book balance for decline Book value for decline Book value
balance
in value in value
Contract
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acquisition cost
Contract
performance cost
Return cost
receivable
Contract assets
Prepayments for
296,957,402. 296,957,402
construction 559,073,830.90 559,073,830.90
06 .06
equipment
296,957,402. 296,957,402
Total 559,073,830.90 559,073,830.90
06 .06
32. 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
Mortgage loan 550,393,750.00 400,378,888.89
Guaranteed loan
Credit loan 222,735,994.77
Total 773,129,744.77 400,378,888.89
(2). Short-term loans that have been late for repayment
□Applicable √Non-applicable
Other notes:
□Applicable √Non-applicable
33. Transactional financial liabilities
□Applicable √Non-applicable
34. Derivative financial liabilities
□Applicable √Non-applicable
35. 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 1,905,569,760.15 1,471,327,551.91
Total 1,905,569,760.15 1,471,327,551.91
At the end of the current period, total amount of notes payable that have not yet been paid is 0 Yuan.
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36. 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 2,200,772,909.89 1,853,269,995.18
year)
1-2 years (including 2 years) 35,568,125.74 31,986,841.31
2-3 years (including 3 years) 7,641,626.24 7,239,675.36
Over 3 years 5,885,193.58 5,758,604.32
Total 2,249,867,855.45 1,898,255,116.17
(2). Important accounts payable aged over 1 year
□Applicable √Non-applicable
Other notes:
□Applicable √Non-applicable
37. Advance receipts
(1). Presentation of advance receipts
□Applicable √Non-applicable
(2). Important accounts payable aged over 1 year
□Applicable √Non-applicable
Other notes:
□Applicable √Non-applicable
38. Contract liabilities
(1). Particulars of contract liabilities
√Applicable □Non-applicable
Unit：元 Yuan Currency：RMB
Item Balance at the beginning of the
Balance at the end of the period
period
Within 1 year (including 1 17,978,909.33 11,522,861.56
year)
1-2 years (including 2 years) 6,142,833.02 6,673,269.49
2-3 years (including 3 years) 742,273.75 838,769.34
Over 3 years 3,285,477.04 3,650,760.02
Total 28,149,493.14 22,685,660.41
(2). The amount and reason for significant change in the book value during the reporting period
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
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39. 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 138,178,109.47 588,139,234.88 603,299,420.99 123,017,923.36
II. Dimission benefits - defined contribution
114,252.20 29,262,349.25 28,957,751.44 418,850.01
scheme
III. Dismissal benefits
IV. Other benefits due within 1 year
Total 138,292,361.67 617,401,584.13 632,257,172.43 123,436,773.37
(2). Presentation of short-term remuneration
√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
1. Wages or salaries, bonuses, allowances
135,935,768.57 509,425,452.57 524,965,476.64 120,395,744.50
and subsidies
2. Staff welfare 106,560.80 40,522,060.01 40,526,404.03 102,216.78
3. Social insurance contributions 204,154.27 15,598,657.61 15,513,151.99 289,659.89
Including: medical insurance premium 159,475.74 14,113,234.61 14,039,045.62 233,664.73
Work injury insurance premium -1,680.08 1,372,145.87 1,334,076.90 36,388.89
Birth insurance premium 46,358.61 113,277.13 140,029.47 19,606.27
4. Housing funds 110,395.00 17,257,095.47 17,224,234.67 143,255.80
5. Labor union and education funds 1,821,230.83 5,335,969.22 5,070,153.66 2,087,046.39
6. Short-term paid absences
7. Short-term profit sharing plan
Total 138,178,109.47 588,139,234.88 603,299,420.99 123,017,923.36
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(3). Presentatioon of defined contribution plan
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Balance at the Balance at the
Increased in the Decreased in the
Item beginning of the end of the
current period current period
period period
1. Basic pension insurance
104,394.92 28,010,859.88 27,716,982.72 398,272.08
premium
2. Unemployment
9,857.28 1,251,489.37 1,240,768.72 20,577.93
insurance premium
3. Corporate annuity
payment
Total 114,252.20 29,262,349.25 28,957,751.44 418,850.01
Other notes:
□Applicable √Non-applicable
40. 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 54,399,747.16 37,476,861.48
Consumption tax
Business tax
Enterprise Income Tax 60,560,837.61 13,247,733.04
Individual income tax 1,048,780.70 1,126,989.40
Urban Maintenance and
587,913.99 2,555,965.45
Construction Tax
Property tax 20,098,111.37 17,409,122.91
Education surcharges 287,571.80 1,124,111.62
Local education surcharges 161,020.77 748,551.75
Land use tax 9,835,675.11 8,463,193.68
Environmental protection tax 454.86 454.86
Disabled security fund 1,663,759.84 313,642.20
Special funds for water
6,973.11 8,547.00
conservancy construction
Stamp duty 379,431.27 390,129.90
Total 149,030,277.59 82,865,303.29
41. Other payables
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
Interest Payable
Dividends Payable
Other payables 15,361,171.00 15,722,105.17
Total 15,361,171.00 15,722,105.17
Interest Payable
□Applicable √Non-applicable
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Dividends payable
□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 7,883,598.94 8,120,598.94
Other 7,477,572.06 7,601,506.23
Total 15,361,171.00 15,722,105.17
(2). Significant other payables aged over 1 year
□Applicable √Non-applicable
Other notes:
□Applicable √Non-applicable
42. Held-for-sale liabilities
□Applicable √Non-applicable
43. 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
year
Bonds payable due within 1
year
Long-term payables due within
1 year
Lease liabilities due within 1 7,333,430.63
year
Total 7,333,430.63
44. 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
3,658,909.50 1,507,896.52
tax
Total 3,658,909.50 1,507,896.52
Changes in short-term bonds payable:
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
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45. Long-term loans
1). Category of long-term loans
√Applicable □Non-applicable
Other note: including interest rate range
□Applicable √Non-applicable
46. 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 ther 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
47. Lease liabilities
□Applicable √Non-applicable
Unit：Yuan Currency：RMB
Balance at the beginning of the
Item Balance at the end of the period
period
Lease liabilities 21,472,047.37
Less: Lease liabilities due within -7,333,430.63
one year
Total 14,138,616.74
48. Long-term payables
Presentation of items
□Applicable √Non-applicable
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Long-term payables
□Applicable √Non-applicable
Special payables
□Applicable √Non-applicable
49. Long-term payroll payable
□Applicable √Non-applicable
50. Estimated liabilities
□Applicable √Non-applicable
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51. Deferred income
Deferred income
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Balance at the beginning Balance at the end of the
Item Increased in the period Decreased in the period Reason
of the period period
Government grants 214,204,302.56 11,615,416.00 9,067,834.90 216,751,883.66
Total 214,204,302.56 11,615,416.00 9,067,834.90 216,751,883.66 /
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 the non-operating other income end of the Assets-related/income-related
increased in changes
period income in the in this period
the period
period period
Machine substitution for human project with
an annual capacity of 700,000 sets of damping 2,242,000.00 235,999.98 2,006,000.02 Assets-related
products
Automobile composite fiber production project 441,666.67 49,999.98 391,666.69 Assets-related
Tuopu Intelligent Mechatronics Industrial Park
25,520,238.10 692,857.14 24,827,380.96 Assets-related
Project
Production line transformation project of
high-performance vibration control system for 2,756,190.00 275,619.04 2,480,570.96 Assets-related
cars
Production and application technology
transformation project of lightweight materials 4,375,000.00 437,499.98 3,937,500.02 Assets-related
for vehicles
Technological Transformation Project of
Automobile High-Performance Vibration 7,130,088.73 445,630.56 6,684,458.17 Assets-related
control system
Technological Transformation Project of
6,877,766.12 407,733.24 6,470,032.88 Assets-related
Automobile Interior and Exterior Trim Parts
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Technological Transformation Project of
7,003,001.06 437,687.58 6,565,313.48 Assets-related
Automobile Lightweight Control Arms
Technological Transformation Project of
7,322,051.57 457,628.16 6,864,423.41 Assets-related
Automobile Lightweight Parts Production Line
Technological Transformation Project of
Automobile High-Performance Vibration 1,723,800.00 86,190.00 1,637,610.00 Assets-related
control system
Technological transformation project of
1,875,120.00 93,756.00 1,781,364.00 Assets-related
lightweight auto parts
Digital workshop project with an annual
capacity of 120,000 sets of intelligent brake 3,696,000.00 345,000.00 190,748.28 3,850,251.72 Assets-related
systems
Auto parts production and industrial
80,166,861.65 2,250,000.00 77,916,861.65 Assets-related
automation projects
Technological transformation project for the
production line of automotive lightweight alloy 8,790,289.93 500,000.04 8,290,289.89 Assets-related
parts with an annual capacity of 300,000 sets
Technological Transformation Project of
Automobile High-Performance Vibration 5,471,561.66 278,215.02 5,193,346.64 Assets-related
control system
Tuopu Automobile Electronics Auto Parts
7,729,116.00 26,379.24 7,702,736.76 Assets-related
Production Project
Shenyang Tuopu Auto Parts Base Project 1,298,611.20 291,666.66 1,006,944.54 Assets-related
Intelligent factory construction project with an
annual capacity of 2 million sets of automotive 705,833.31 55,000.00 650,833.31 Assets-related
interior trims
Technological transformation project of car
roof, carpet assembly and other interior trims 990,000.00 82,500.00 907,500.00 Assets-related
with an annual capacity of 1.6 million sets
Auto Parts Production Project of Liudong New
1,362,511.63 42,139.54 1,320,372.09 Assets-related
District
Automobile Fabric Production Line Project 3,686,810.05 345,358.18 3,341,451.87 Assets-related
Pinghu Tuopu Auto Parts Production Project 12,733,600.00 397,925.00 12,335,675.00 Assets-related
Production line project with an annual capacity
661,542.22 43,399.14 618,143.08 Assets-related
of 300,000 sets of related auto parts
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Automobile chassis parts project with an
4,507,688.04 51,614.75 4,456,073.29 Assets-related
annual capacity of 500,000 sets
Tuopu Chassis Auto Parts Industry Base
8,000,000.00 - 8,000,000.00 Assets-related
Project
Auxiliary project outside the factory 6,485,266.63 196,523.24 6,288,743.39 Assets-related
Hunan Xiangtan Auto Parts Industry Base
2,000,000.00 - 2,000,000.00 Assets-related
Project
Relocation project with an annual capacity of
774,156.58 55,296.90 718,859.68 Assets-related
300,000 sets of automotive interior trims
Technological transformation project for the
production line of automobile front and rear 1,543,602.08 189,055.38 1,354,546.70 Assets-related
axle with an annual output of 200,000 sets
Technological transformation project of AVS
products & chassis production line with annual 274,247.86 24,344.27 249,903.59 Assets-related
capacity of 300,000 sets
Production line of AVS products & chassis
1,411,833.95 120,249.34 1,291,584.61 Assets-related
with an annual capacity of 300,000 sets
Passenger vehicle chassis AVS products
2,376,963.52 3,541,300.00 306,818.26 5,611,445.26 Assets-related
project with an annual capacity of 500,000 sets
Total 214,204,302.56 11,615,416.00 9,067,834.90 216,751,883.66
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 damping 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 June 30, 2021, there was a remaining sum of 2,006,000.02 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.
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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 June 30, 2021, there was a remaining sum of RMB 391,666.69 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 Mechatronics 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
June 30, 2021, there was a remaining sum of RMB 24,827,380.96 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 remaining useful life corresponding to the
machinery and equipment purchased using the above grants, as of June 30, 2021, there was a remaining sum of RMB 2,480,570.96 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 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 remaining useful life corresponding to the machinery and equipment purchased using
the above grants, as of June 30, 2021, 2020, there was a remaining sum of RMB 3,937,500.02 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 remaining useful life corresponding to the machinery and
equipment transformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 6,684,458.17 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 Trim Parts. As of June 2019, the said
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
project was substantially completed and put into production operation. Amortized by the remaining useful life corresponding to the machinery and equipment
transformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 6,470,032.88 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 remaining useful life corresponding to the machinery and equipment
transformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 6,565,313.48 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 remaining useful life corresponding to the machinery and equipment
transformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 6,864,423.41 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. Amortized by the remaining useful life corresponding to the machinery and equipment transformed using the above
grants, as of June 30, 2021, there was a remaining sum of RMB 1,637,610.00 to be amortized over the remaining years.
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. Amortized by the remaining useful life corresponding to the machinery and equipment transformed using the above grants, as of June 30, 2021, there was a
remaining sum of RMB 1,781,364.00 to be amortized over the remaining years.
12. The Company received the grants at RMB 3,696,000.00 in September 2020 and RMB 3,450,000,000 in May 2021 and used the sums for digital workshop
project with an annual capacity of 120,000 sets of intelligent brake systems. Amortized by the depreciation years corresponding to the machinery and equipment
transformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 3,850,251.72 to be amortized over the remaining years.
13. Tuopu Automotive Electronics 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 June 30, 2021, there was a remaining sum
of RMB 77,916,861.65 to be amortized over the remaining years.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
14. Tuopu Automotive Electronics 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 remaining useful life corresponding to the machinery and equipment
transformed using the above grants, as of June 30, 2021, there was a remaining sum of RMB 8,290,289.89 to be amortized over the remaining years.
15. Tuopu Automotive Electronics 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
completed and put into production operation. Amortized by the remaining useful life corresponding to the machinery and equipment transformed using the above
grants, as of June 30, 2021, there was a remaining sum of RMB 5,193,346.64 to be amortized over the remaining years.
16. Tuopu Automotive Electronics received the land grants at RMB 7,729,116.00. Amortized by the remaining useful life corresponding to the remaining
useful life corresponding to the land using the above grants, as of June 30, 2021, there was a remaining sum of RMB 7,702,736.76 to be amortized over the
remaining years.
17. Tuopu Automotive Electronics 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 June 30, 2021, there was a remaining sum of RMB 1,006,944.54
to be amortized over the remaining years.
18. 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 interior
trims 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 June 30, 2021, there was a remaining sum of RMB 650,833.31 to be
amortized over the remaining years.
19. 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 interior trims with an
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 June 30, 2021, there was a
remaining sum of RMB 907,500.00 to be amortized over the remaining years.
20. 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 remaining useful life corresponding to the
buildings and structures constructed and acquired using the above grants, as of June 30, 2021, there was a remaining sum of RMB 1,320,372.09 to be amortized over
the remaining years.
21. 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 remaining useful life corresponding to the machinery and equipment purchased using the above grants, as of June 30, 2021, there was a
remaining sum of RMB 3,341,451.87 to be amortized over the remaining years.
22. 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 Interior Trims 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 June 30, 2021, there was a remaining sum of RMB 12,335,675.00 to be amortized over the remaining years.
23. 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 remaining
useful life corresponding to the purchased machinery and equipment and constructed plants using the above funds, as of June 30, 2021, there was a remaining sum
of RMB 618,143.08 to be amortized over the remaining years.
24. 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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
production operation. Amortized by the depreciation years (48.75 years) corresponding to the land subsidies, as of June 30, 2021, there was a remaining sum of
RMB 4,456,073.29 to be amortized over the remaining years.
25. 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
June 30, 2021, this project has not yet been completed and no amortization is made in this period.
26. 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 remaining useful life corresponding to the buildings and structures using the above
grants, as of June 30, 2021, there was a remaining sum of RMB 6,288,743.39 to be amortized over the remaining years.
27. 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
June 30, 2021, this project has not yet been completed and no amortization is made in this period.
28. 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 interior trims. As of January 2018, the said project was substantially completed and put into production operation. Amortized by the
remaining useful life corresponding to the machinery and equipment purchased using the above grants, as of June 30, 2021, there was a remaining sum of RMB
718,859.68 to be amortized over the remaining years.
29. 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 remaining useful life corresponding to the machinery and equipment purchased using the above funds, as of June 30, 2021, there was a
remaining sum of RMB 1,354,546.70 to be amortized over the remaining years.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
30. 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 AVS products & 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 June 30, 2021, there was a remaining sum of RMB 249,903.59 to be
amortized over the remaining years.
31. 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 AVS products & 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 remaining useful life
corresponding to the machinery and equipment purchased using the above funds, as of June 30, 2021, there was a remaining sum of RMB1,291,584.61 to be
amortized over the remaining years.
32. Zhejiang Towin received technological transformation funds at RMB 2,539,990.00 for passenger vehicle chassis AVS products 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 remaining
useful life corresponding to the machinery and equipment purchased using the above funds, as of June 30, 2021, there was a remaining sum of RMB 5,611,445.26 to
be amortized over the remaining years.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
52. Other non-current liabilities
□Applicable √Non-applicable
53. 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 Bonu converte end of the
Othe
period New issue s d from Subtotal period
r
issue capital
reserves
Total
1,054,987,749.0 47,058,823.0 47,058,823.0 1,102,046,572.0
sahre
0 0 0 0
s
Other notes:
In February 2021, the Company increased its registered capital by RMB 47,058,823.00 through
private offering of shares. After this capital increase, its registered capital became RMB
1,102,046,572.00. The capital contribution has been verified by BDO CHINA SHUn LUN PAN
CERTIFIED PUBLIC ACCOUNTANTS LLP, and a capital verification report of Xin Kuai Shi Bao Zi
[2021] No. ZF10047 has been issued.
54. 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 note:
□Applicable √Non-applicable
55. Capital reserve
□Applicable √Non-applicable
Unit：Yuan Currency：RMB
Balance at the Decreased
Increased in the Balance at the end
Item beginning of the in the
period of the period
period period
Capital premium (equity
3,409,429,514.29 1,931,359,023.74 5,340,788,538.03
premium)
Other capital reserves 10,348.78 10,348.78
Total 3,409,439,863.07 1,931,359,023.74 5,340,798,886.81
Other notes, including changes in the current period and note to the reason for the changes:
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
In February 2021, the Company recorded the share premium of RMB 1,931,359,023.74 in the
capital reserve through private offering of stocks. The capital contribution has been verified by BDO
CHINA SHUn LUN PAN CERTIFIED PUBLIC ACCOUNTANTS LLP, and a capital verification
report of Xin Kuai Shi Bao Zi [2021] No. ZF10047 has been issued.
56. Treasury stocks
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
57. Other comprehensive income
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Amount incurred in the current period
Less:
Record
Less:
ed into
recorde
other
d into L
compre
other es
hensiv
compre s:
e
hensiv In
income
e co
Amount s in Attributable
Balance at the income m
incurred before previo Attributable to to the Balance at the end
Item beginning of the s in e
income tax in us the Company minority of the period
period previo T
the current period after tax shareholder
us ax
period and s after tax
period E
transfe
and x
rred to
transfe pe
retaine
rred to ns
d
P/L in e
income
current
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
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Ningbo Tuopu Group Co., Ltd. Semi -annual Report 2021
instrument investments
Changes in fair value of the enterprise's
own credit risk
2. Other comprehensive income that will be
-20,631,668.74 1,955,317.48 1,934,152.65 21,164.83 -18,697,516.09
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 reclassified
and included in other comprehensive
income
Provision for impairment of other debt
investment
Cash flow hedge reserves
Translation difference of foreign currency
-20,631,668.74 1,955,317.48 1,934,152.65 21,164.83 -18,697,516.09
financial statements
Total -20,631,668.74 1,955,317.48 1,934,152.65 21,164.83 -18,697,516.09
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
58. Special reserves
□Applicable √Non-applicable
59. Surplus reserve
√Applicable □Non-applicable
Unit：Yuan Currency：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 474,769,630.86 474,769,630.86
reserve
Discretionary
surplus reserve
Reserve fund
Business
development fund
Other
Total 474,769,630.86 474,769,630.86
60. Undistributed profit
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Item Current period Previous period
Undistributed Profit before Adjustment at the
2,868,429,319.48 2,502,765,125.43
End of Previous Period
Adjust the total undistributed profits at the start
of the period (increase +, decrease -)
Undistributed Profit after Adjustment at the
2,868,429,319.48 2,502,765,125.43
Start of the Period
Add: net profit attributable to parent company's
459,702,187.79 628,200,888.31
owner in current period
Less: withdrawal of statutory surplus reserve 62,089,021.95
Withdrawal of discretionary surplus
reserve
Withdrawal of general risk reserve
Ordinary stock dividend payable 189,552,010.38 200,447,672.31
Ordinary stock dividends converted into
equity
Undistributed profit at the end of the period 3,138,579,496.89 2,868,429,319.48
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.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
5. The gross impact of other adjustments on the undistributed profit at the beginning of the period is
RMB 0.
Other notes to undistributed profits:
According to the resolution passed at 2020 Annual General Meeting, the Company distributed
RMB 1.72 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 189,552,010.38 were
distributed.
61. 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
4,771,583,403.09 3,848,796,980.15 2,474,078,712.50 1,949,836,859.05
operation
Other
145,163,660.11 41,850,172.51 87,937,102.34 22,633,010.46
operations
Total 4,916,747,063.20 3,890,647,152.66 2,562,015,814.84 1,972,469,869.51
(2). Particulars of 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
62. 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
6,987,224.84 5,145,221.44
Construction Tax
Education Surcharges 3,097,328.39 2,243,231.45
Resource tax
Property tax 10,863,776.45 9,774,405.02
Land use tax 7,573,624.46 5,402,129.57
Vehicle and vessel use tax 2,940.00 2,254.20
Stamp duty 3,239,904.97 1,130,206.25
Local education surcharges 2,064,885.50 1,495,487.08
Environmental protection tax 2,796.57 2,084.56
Franchise tax 1,940.46
Total 33,834,421.64 25,195,019.57
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
63. Cost of sales
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Amount incurred in the Amount incurred in
Item
current period previous period
Service expense 29,531,427.34 23,142,909.69
Payroll 17,233,933.57 12,950,448.75
Business hospitality expense 11,056,660.16 6,068,149.72
Repair cost 6,047,882.34 205,042.20
Travel expense 602,156.99 476,473.31
Packaging fee 96,467.24 413,278.89
Vehicle cost 903,723.57 885,612.70
Exhibition fee 26,663.16
Other 2,312,218.65 4,232,987.54
Total 67,811,133.02 48,374,902.80
64. Overhead expense
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Item Amount incurred in the Amount incurred in
current period previous period
Payroll 80,651,461.49 51,553,859.19
Depreciation expense 16,725,375.77 15,055,379.93
Business hospitality expense 2,026,288.73 1,040,805.06
Vehicle cost 1,932,384.37 1,443,969.29
Taxes 1,303,839.64 754,997.59
Travel expenses 897,665.31 769,304.69
Amortization of intangible assets 9,358,516.34 7,773,710.50
Office expenses 2,620,048.32 1,934,306.52
Insurance premiums 2,281,744.16 2,040,700.64
Intermediary fee 2,363,351.13 2,296,375.51
Utility bills 1,674,698.17 1,161,219.34
Service charge 4,887,204.46 4,994,618.55
Rent 927,544.88 326,112.10
Other 10,966,557.71 9,086,715.87
Total 138,616,680.48 100,232,074.78
65. R&D expenses
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Item Amount incurred in the Amount incurred in
current period previous period
Material 75,976,147.05 45,099,044.76
Payroll 103,433,263.82 76,277,851.01
Depreciation and amortization 30,240,100.76 27,617,482.73
Transportation and storage fee 1,499,838.43 1,371,914.97
Energy consumption fee 10,086,641.70 5,841,507.97
Travel expense 1,479,159.73 785,181.94
Trial production expense 2,023,727.07 4,107,806.75
Other 9,134,832.02 4,029,323.30
Total 233,873,710.58 165,130,113.43
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
66. Financial expense
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Item Amount incurred in the Amount incurred in
current period previous period
Interest expense 8,718,663.63 13,230,815.39
Less: interest income -16,268,492.45 -7,272,076.83
Gain and loss from exchange 5,154,538.67 7,599,266.37
Handling charge 1,520,103.21 1,093,075.56
Total -875,186.94 14,651,080.49
67. Other income
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Item Amount incurred Amount
in the current incurred in
period previous period
Pinghu Tuopu Auto Parts Production Project 397,925.00 253,225.00
Machine substitution for human project with an annual capacity 235,999.98 236,000.00
of 700,000 sets of damping products
Automobile composite fiber production project 49,999.98 50,000.00
Auto parts production and industrial automation projects 2,250,000.00 2,123,234.20
Intelligent factory construction project with an annual capacity of 55,000.00 55,000.00
2 million sets of automotive interior trims
Technological transformation project of car roof, carpet assembly 82,500.00 82,500.00
and other interior trims with an annual capacity of 1.6 million sets
Production line project with an annual capacity of 300,000 sets of 43,399.14 43,399.14
related auto parts
Automobile chassis parts project with an annual capacity of 51,614.75 51,614.75
500,000 sets
Technological transformation project of production line for 189,055.38 189,055.36
automobile front and rear axle with annual output of 200,000 sets
Technological transformation project of production line with 24,344.27 24,344.28
annual capacity of 300,000 sets of AVS products & chassis
Technological transformation project of production line with 120,249.34 120,249.38
annual capacity of 300,000 sets of AVS products & chassis
Production line transformation project of high-performance 275,619.04 275,619.00
vibration control system for cars
Production and application technology transformation project of 437,499.98 437,500.02
lightweight materials for vehicles
Auxiliary project outside the factory 196,523.24 226,881.18
Relocation project with an annual capacity of 300,000 sets of 55,296.90 59,637.72
automotive interior trims
Shenyang Tuopu Auto Parts Base Project 291,666.66 124,999.98
Tuopu Intelligent Mechatronics Industrial Park Project 692,857.14 247,916.66
Production line transformation project of high-performance 445,630.56 163,026.74
vibration control system for cars
Technological Transformation Project of Automobile Interior and 407,733.24 186,418.95
Exterior Trim Parts
Technological Transformation Project of Automobile 437,687.58 152,388.85
Lightweight Control Arms
Technological Transformation Project of Automobile 457,628.16 155,125.29
Lightweight Parts Production Line
Wuhan Automobile Fabric Production Line Project 345,358.18 84,035.57
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Auto Parts Production Project of Liudong New District 42,139.54 42,139.58
Technological transformation project for the production line of 500,000.04 473,140.02
automotive lightweight alloy parts with an annual capacity of
300,000 sets
Technological Transformation Project of Automobile 86,190.00
High-Performance Vibration control system
Lightweight auto parts technological transformation project 93,756.00
Digital workshop project with an annual capacity of 120,000 sets 190,748.28
of intelligent brake systems
Auto parts production and industrial automation projects 278,215.02
Production Project of Tuopu Automobile Electronics auto parts 26,379.24
Passenger vehicle chassis AVS products project with an annual 306,818.26
capacity of 500,000 sets
Baoji Technological Transformation project subsidies 33,333.33
Tax subsidies 1,245,120.75
Special funds for epidemic prevention 20,000.00
Stable employment subsidies 390,070.02 682,915.55
Slope protection project construction subsidies 30,000.00
Statistical funding subsidies granted 6,000.00
Tax incentives 350.23
Subsidies for resumption of work and epidemic response supplies 2,250.00
Social security premium subsidies 897.00 566,466.18
District foreign trade incentives 90,200.00
Patent subsidies 55,000.00
Energy saving subsidies 130,000.00
Subsidies granted from finance bureau 50,000.00
Power grants 1,066,871.59 54,360.00
Subsidies offered for resumption of work and production 507,194.00
activities
Capacity increase incentives 450,000.00
Subsidies for “on-the-job training” 102,000.00
R&D subsidies 105,502.00
Total 11,183,175.51 9,330,641.71
68. 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
8,441,193.70 6,747,676.66
cost method
Long-term equity investment income measured by
equity method
Investment income from disposal of long-term equity
investment
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
163 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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
Income from debt restructuring
Investment income from wealth management
4,324,874.65 10,941,545.79
products
Total 12,766,068.35 17,689,222.45
69. Net exposure hedging income
□Applicable √Non-applicable
70.Gains from changes in fair value
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Amount incurred in Amount incurred in
Sources of income from changes in fair value
the current period previous period
Transactional financial assets -2,613,733.23
Including: income from changes in fair value generated
by derivative financial instruments
Transactional financial liabilities
Investment real estate measured at fair value
Total -2,613,733.23
71. Credit impairment loss
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Amount incurred in the Amount incurred in previous
Item
current period period
Bad debt loss on accounts receivable -1,338,732.94 119,653.36
Bad debt loss on accounts receivable -23,131,411.91 -1,422,975.30
Bad debt loss on other receivables -1,131,324.02 7,206,340.35
Impairment loss of debt investment
Impairment loss of other debt
investment
Bad debt loss of long-term receivables
Impairment loss of contract assets
Total -25,601,468.87 5,903,018.41
72. Asset impairment loss
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Amount incurred in Amount incurred in
Item
the current period previous period
1. Loss of bad debts
2. Loss of inventory falling price and loss of contract
-9,508,691.87 -1,976,118.60
performance cost 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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
8. Impairment loss of productive biological assets
9. Impairment losses of oil and gas assets
10. Intangible assets impairment loss
11. Goodwill impairment loss
12. Others
Total -9,508,691.87 -1,976,118.60
73. 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 -1,258,747.17 -1,048,280.34
Total -1,258,747.17 -1,048,280.34
Other note:
□Applicable√Non-applicable
74. Non-operating income
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Amount included in
Amount incurred in Amount incurred in the current
Item
the current period previous period non-recurring profit
and loss
Total gains from disposal of
non-current assets
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 2,754,867.06 2,708,400.00 2,754,867.06
Compensation income 3,931,684.14 3,931,684.14
Other 118,319.40 65,093.50 118,319.40
Total 6,804,870.60 2,773,493.50 6,804,870.60
Government grants included in current profit and loss
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Amount incurred
Amount incurred
Item in the current Assets-related/Income-related
in previous period
period
Import and export project subsidies 1,200,000.00 Income-related
District Foreign Trade Reward 528,400.00 Income-related
High-tech subsidies 700,000.00 Income-related
Industrial transformation and Income-related
200,000.00
upgrading subsidies
Industrial Development Bureau Income-related
30,000.00
Fund
165 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Enterprises Billboard Bonus 50,000.00 Income-related
Special fund subsidies for scientific Income-related
900,000.00
and technological development
"Made in Zhejiang Selected Income-related
200,000.00
Products" Award
Tax refund 410,369.58 Income-related
VAT exempts for veterans and Income-related
26,850.00
poor households
Tax exempt in two years and tax Income-related
277,722.00
reduced by half in three years
VAT additional deduction 65,225.48 Income-related
"Economy Billboard" subsidies 100,000.00 Income-related
Production safety subsidies 10,000.00 Income-related
Invention patent subsidies 4,200.00 Income-related
Technology subsidies 490,500.00 Income-related
Positive incentives for steady Income-related
20,000.00
growth
“Specialized and specific new” Income-related
100,000.00
SMEs incentives
Plant expansion incentives 150,000.00 Income-related
Total 2,754,867.06 2,708,400.00
Other note:
□Applicable √Non-applicable
75. Non-operating expenses
√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 loss from disposal of
non-current assets
Including: Loss on disposal of
fixed assets
Loss on disposal of
intangible assets
Loss from debt restructuring
Loss from exchange of
non-monetary assets
External donation
Special funds for water 28,454.87 44,509.74
conservancy construction
Other 408,306.96 728,755.99 408,306.96
Total 436,761.83 773,265.73 408,306.96
(76. Income tax expense
(1). Schedule of income tax expense
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Amount incurred in the current Amount incurred in previous
Item
period period
Income tax expense in the current 78,718,313.52 49,948,061.03
166 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
period
Deferred income tax expense 2,113,729.28 2,363,643.45
Total 80,832,042.80 52,311,704.48
(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 544,173,863.25
Income tax expense calculated at the statutory/applicable tax rate 81,626,079.49
Impact of different tax rates applied to subsidiaries -5,786,263.60
Adjusted impact of income tax in prior periods
Impact of non-taxable income
Impact of non-deductible costs, expenses and losses 4,992,226.91
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
Income tax expense 80,832,042.80
Other note:
□Applicable √Non-applicable
77. Other Comprehensive Income
√Applicable □Non-applicable
More details are available in“Note VII. 57. Other comprehensive income”
78. Cash flow statement items
(1). Other cash received related to operating activities
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Item Amount incurred in the current Amount incurred in previous
period period
Receipt of temporary loans -4,343,921.23 8,074,520.09
Interest income 16,268,492.45 7,272,076.83
Government grants 16,475,895.19 18,667,256.71
Income from compensation and fines 3,931,684.14
Other 118,319.40 206,533.96
Total 32,450,469.95 34,220,387.59
(2). Other cash paid related to operating activities
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Item Amount incurred in the current Amount incurred in previous
period period
Payment of temporary loans 310,455.18
Transportation expense 56,405,466.66
Storage expense 19,474,853.58
Business hospitality expense 13,082,948.89 7,108,954.78
Repair cost 6,035,707.07 205,042.20
167 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
R&D spending 61,234,779.69
100,200,346.00
Travel expense 1,499,822.30 1,245,778.00
Insurance premium 2,281,744.16 2,040,700.64
Office expense 2,620,048.32 1,934,306.52
Vehicle expense 2,836,107.94 2,329,581.99
Service charge 34,418,631.80 26,209,658.82
Intermediary fee 2,185,372.26 2,296,375.51
Packaging fee 96,467.24 413,278.89
Utility bill 1,674,698.17 1,161,219.34
Rent 927,544.88 326,112.10
Other 36,355,360.51 24,234,014.50
Total 204,214,799.54 206,930,578.40
(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
(6). Other cash paid related to financing activities
□Applicable √Non-applicable
79. 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 463,341,820.45 215,549,761.18
Add: provision for impairment of assets 9,508,691.87 1,976,118.60
Credit impairment provision 25,601,468.87 -5,903,018.41
Depreciation of fixed assets, oil and gas assets, productive 243,243,181.58
208,556,734.98
biological assets
Depreciation of right-of-use assets
Amortization of Intangible Assets 12,405,545.82 10,093,483.56
Amortization of long-term prepaid expenses 22,951,301.82 16,770,882.46
Losses on disposal of fixed assets, intangible assets and
1,258,747.17 1,048,280.34
other long-term assets (income as in “-”)
Losses on scrapping of fixed assets (income as in “-”)
Losses on fair value changes (income as in “-”) 2,613,733.23
Financial expenses (income as in “-”) 7,745,204.27 11,113,253.95
Losses on investment (income as in “-”) -12,766,068.35 -17,689,222.45
Decrease on deferred income tax assets (increase as in “-”) -6,049,708.92 -935,368.31
Increase on deferred income tax liabilities (decrease as in
5,809,657.58 3,299,011.76
“-”)
Decrease on inventories (increase as in “-”) -114,599,125.33 101,550,734.64
Decrease on operational receivables (increase as in “-”) -717,851,822.93 190,358,408.01
Increase on operational payables (decrease as in “-”) 802,122,250.83 -248,395,492.65
Other
Net cash flow generated by operating activities 745,334,877.96 487,393,567.66
168 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 1,709,296,801.98 798,996,008.06
Less: opening balance of cash 674,866,422.08 715,182,068.12
Add: closing balance of cash equivalents
Less: opening balance of cash equivalents
Net additions to balance of equivalents 1,034,430,379.90 83,813,939.94
(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
(4). Composition of cash and cash equivalents
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Balance at the beginning of
Item Balance at the end of the period
the period
1. Cash 1,709,296,801.98 674,866,422.08
Including: cash on hand 10,329.69 8,899.73
Bank deposits that can be used
1,709,286,472.29 674,857,522.35
for payment at any time
Other cash and bank balances
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 1,709,296,801.98
674,866,422.08
equivalents at the end of the period
Includnig: cash and cash equivalents
that are restricted for us by the parent
company or subsidiary within the
group
Other note:
√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 112,805,901.59 less than the " Cash and bank balances" at the end of the period
169 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
as contained in the consolidated balance sheet, because the note margin deposit for security at RMB
112,805,901.59 is not deemed as cash and cash equivalents.
80. 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
81. Assets with restricted ownership or use rights
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Item Book value at the end of the period Reason for restricted use
Cash and bank balances Bank Acceptance Draft
112,805,901.59
Deposit
Notes receivable 350,653,610.60 Pledge
Inventories
Fixed assets 46,907,530.34 Mortgage
Intangible assets 6,698,677.70 Mortgage
Receivables financing 811,941,024.18 Pledge
Total 1,329,006,744.41 /
82. 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 to
Converted exchange
Item balance at the end of RMB at the end of
rate
the period the period
Cash and bank balances - - 134,802,841.82
Including: USD 10,735,701.11 6.4601 69,353,702.74
EUR 171,142.09 7.6862 1,315,432.31
HKD
AUD 0.56 4.8528 2.72
CAD 869,179.60 5.2097 4,528,164.96
SEK 581,275.41 0.7579 440,548.63
BRL 25,240,456.81 1.3037 32,905,983.54
RM 10,734,828.79 1.5560 16,703,393.60
PLN 5,617,974.79 1.7009 9,555,613.32
Accounts receivable - - 398,464,440.61
Including: USD 39,975,089.32 6.4601 258,243,074.52
EUR 3,470,895.04 7.6862 26,677,993.46
HKD
CAD 19,764,367.57 5.2097 102,966,425.73
BRL 3,389,196.79 1.3037 4,418,495.86
RM 3,935,284.18 1.5560 6,123,302.18
GBP 3,931.20 8.9410 35,148.86
Long-term loans - -
Including: USD
EUR
HKD
Accounts payable - - 87,994,808.51
Including: USD 6,550,089.01 6.4601 42,314,230.01
170 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
EURO 541,155.32 7.6862 4,159,428.02
CAD 7,408,048.44 5.2097 38,593,709.94
BRL 272,241.82 1.3037 354,921.66
RM 1,374,696.93 1.5560 2,139,028.43
PLN 65,322.41 1.7009 111,106.89
SEK 425,364.24 0.7579 322,383.56
(2). Notes to overseas business entities, overseas business locations, functional currency and the
basis for selection in respect of important overseas business enttiies 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; Tuopu Poland sp.z.o.o, currently operating in Poland and with
PLN as the functional currenc.
83. Hedging
□Applicable √Non-applicable
84. Government subsidies
1. General information of government subsidies
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Amount included
Presented
Category Amount into current
Item
profit and loss
Machine substitution for human project with
Deferred
an annual capacity of 700,000 sets of damping 4,720,000.00 235,999.98
income
products
Automobile composite fiber production project Deferred
1,000,000.00 49,999.98
income
Tuopu Intelligent Mechatronics Industrial Park Deferred
27,000,000.00 692,857.14
Project income
Production line transformation project of
Deferred
high-performance vibration control system for 4,409,904.00 275,619.04
income
cars
Production and application technology
Deferred
transformation project of lightweight materials 7,000,000.00 437,499.98
income
for vehicles
Technological Transformation Project of
Deferred
Automobile High-Performance Vibration 8,250,992.00 445,630.56
income
control system
171 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Technological Transformation Project of Deferred
7,794,112.00 407,733.24
Automobile Interior and Exterior Trim Parts income
Technological Transformation Project of Deferred
8,085,312.00 437,687.58
Automobile Lightweight Control Arms income
Technological Transformation Project of Deferred
8,443,472.00 457,628.16
Automobile Lightweight Parts Production Line income
Technological Transformation Project of
Deferred
Automobile High-Performance Vibration 1,723,800.00 86,190.00
income
control system
Technological transformation project of Deferred
1,875,120.00 93,756.00
lightweight auto parts income
Digital workshop project with an annual
Deferred
capacity of 120,000 sets of intelligent brake 4,041,000.00 190,748.28
income
systems
Auto parts production and industrial Deferred
90,000,000.00 2,250,000.00
automation projects income
Technological transformation project for the
Deferred
production line of automotive lightweight alloy 10,000,000.00 500,000.04
income
parts with an annual capacity of 300,000 sets
Technological Transformation Project of
Deferred
Automobile High-Performance Vibration 5,564,300.00 278,215.02
income
control system
Tuopu Automobile Electronics Auto Parts Deferred
7,729,116.00 26,379.24
Production Project income
Shenyang Tuopu Auto Parts Base Project Deferred
2,000,000.00 291,666.66
income
Intelligent factory construction project with an
Deferred
annual capacity of 2 million sets of automotive 1,100,000.00 55,000.00
income
interior trims
Technological transformation project of car
Deferred
roof, carpet assembly and other interior trims 1,650,000.00 82,500.00
income
with an annual capacity of 1.6 million sets
Auto Parts Production Project of Liudong New Deferred
1,510,000.00 42,139.54
District income
Automobile Fabric Production Line Project Deferred
4,104,000.00 345,358.18
income
Pinghu Tuopu Auto Parts Production Project Deferred
14,470,000.00 397,925.00
income
Production line project with an annual capacity Deferred
1,110,000.00 43,399.14
of 300,000 sets of related auto parts income
Automobile chassis parts project with an Deferred
5,032,438.00 51,614.75
annual capacity of 500,000 sets income
Tuopu Chassis Auto Parts Industry Base Deferred
8,000,000.00
Project income
Auxiliary project outside the factory Deferred
7,000,011.00 196,523.24
income
Hunan Xiangtan Auto Parts Industry Base Deferred
2,000,000.00
Project income
Relocation project with an annual capacity of Deferred
965,300.00 55,296.90
300,000 sets of automotive interior trims income
Technological transformation project for the
Deferred
production line of automobile front and rear 3,056,045.00 189,055.38
income
axle with an annual output of 200,000 sets
Technological transformation project of AVS
Deferred
products & chassis production line with annual 448,715.00 24,344.27
income
capacity of 300,000 sets
172 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Production line of AVS products & chassis Deferred
2,133,330.00 120,249.34
with an annual capacity of 300,000 sets income
Passenger vehicle chassis AVS products Deferred
6,081,290.00 306,818.26
project with an annual capacity of 500,000 sets income
Capacity increase incentives 450,000.00 Other income 450,000.00
employment retention grants 390,070.02 Other income 390,070.02
Subsidies for “on-the-job training” 102,000.00 Other income 102,000.00
R&D subsidies 105,502.00 Other income 105,502.00
Power grants 1,066,871.59 Other income 1,066,871.59
Social security premium subsidies 897.00 Other income 897.00
Special fund subsidies for scientific and Non-operating
900,000.00 900,000.00
technological development income
"Made in Zhejiang Selected Products" Award Non-operating
200,000.00 200,000.00
income
Tax refund Non-operating
410,369.58 410,369.58
income
VAT exempts for veterans and poor Non-operating
26,850.00 26,850.00
households income
Tax exempt in two years and tax reduced by Non-operating
277,722.00 277,722.00
half in three years income
VAT additional deduction Non-operating
65,225.48 65,225.48
income
"Economy Billboard" subsidies Non-operating
100,000.00 100,000.00
income
Production safety subsidies Non-operating
10,000.00 10,000.00
income
Invention patent subsidies Non-operating
4,200.00 4,200.00
income
Technology subsidies Non-operating
490,500.00 490,500.00
income
Positive incentives for steady growth Non-operating
20,000.00 20,000.00
income
“Specialized and specific new” SMEs Non-operating
100,000.00 100,000.00
incentives income
Plant expansion incentives Non-operating
150,000.00 150,000.00
income
Total 263,168,464.67 13,938,042.57
2. Refund of government subsidies
□Applicable √Non-applicable
85. 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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 note:
□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
6 combined entities were added during the reporting period, due to:
The Company incorporated TUOPU POLAND SP.Z.O.O, Huzhou Tuopu Automobile Parts Co., Ltd, Xi’an Tuopu Automobile Parts Co., Ltd, Shanghai Tuopu
Automobile Parts Co., Ltd, Tuopu Photovoltaic Technology (Ningbo Beilun) Co., Ltd., and Tuopu Photovoltaic Technology (Ningbo Hangzhou Bay New Area) Co.,
Ltd., which were included into the scope of consolidation from the date of establishment.
6. Other
□Applicable √Non-applicable
174 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
IX. Equity in Other Entities
1. Equity in Subsidiaries
(1). Composition of the group
√Applicable □Non-applicable
Principal Percentage of
Name of Registered Business shares held (%) Method of
Business
subsidiary Address Nature Acquisition
Site Direct Indirect
Tuopu Imp&Exp. Ningbo Ningbo Trading 100.00 Business
combination under
the same control
Tuopu Parts Ningbo Ningbo Trading 100.00 Business
combination under
the same control
Tuopu Acoustics Ningbo Ningbo Trading 100.00 Business
Vibration combination under
the same control
Yantai Tuopu Yantai Yantai Manufacturing 100.00 Business
combination under
the same control
Liuzhou Tuopu Liuzhou Liuzhou Manufacturing 100.00 Business
combination under
the same control
Shenyang Tuopu Shenyang Shenyang Manufacturing 100.00 Establishment
Tuopu Intelligent Ningbo Ningbo Manufacturing 100.00 Establishment
Brake
Tuopu North Canada Canada Trading 51.00 Business
American combination not
under the same
control
Ningbo Qianhui Ninghai Ninghai Manufacturing 51.00 Business
combination not
under the same
control
Tuopu North USA USA Trading 51.00 Establishment
American USA
Limited, INC
Sichuan Tuopu Lingshui Lingshui Manufacturing 100.00 Establishment
Wuhan Tuopu Wuhan Wuhan Manufacturing 100.00 Establishment
Pinghu Tuopu Jiaxing Jiaxing Manufacturing 100.00 Establishment
Shanghai Towin Shanghai Shanghai Manufacturing 100.00 Establishment
Tuopu Industrial Ningbo Ningbo Manufacturing 100.00 Establishment
Automation
Tuopu Investment Ningbo Ningbo Investment 100.00 Establishment
Yuxiang Ningbo Ningbo Service 100.00 Establishment
E-commerce
Tuopu Hong Hong Investment 100.00 Establishment
International Kong Kong
Baoji Tuopu Baoji Baoji Manufacturing 100.00 Establishment
Taizhou Tuopu Linhai Linhai Manufacturing 100.00 Establishment
Tuopu Automotive Ningbo Ningbo Manufacturing 100.00 Establishment
Electronics
Tuopu Brasil Brasil Brasil Manufacturing 99.96 0.04 Establishment
Tuopu Sweden Sweden Sweden R&D 100.00 Establishment
Jinzhong Tuopu Jinzhong Jinzhong Manufacturing 100.00 Establishment
Shenzhen Towin Shenzhen Shenzhen Manufacturing 100.00 Establishment
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Zhejiang Towin Jinhua Jinhua Manufacturing 100.00 Business
combination not
under the same
control
Sichuan Maigao Suining Suining Manufacturing 100.00 Business
combination not
under the same
control
Hunan Tuopu Xiangtan Xiangtan Manufacturing 100.00 Establishment
TUOPU Malaysia Malaysia 100.00 Establishment
(MALAYSIA) Manufacturing
SDN.BHD.
Tuopu USA, LLC USA USA Trading 100.00 Establishment
Tuopu Chassis Ningbo Ningbo Manufacturing 100.00 Establishment
Tuopu Thermal Ningbo Ningbo 100.00 Establishment
Manufacturing
Management
Tuopu Poland Poland Poland Manufacturing 100.00 Establishment
Huzhou Tuopu Huzhou Huzhou Manufacturing 100.00 Establishment
Shanghai Tuopu Shanghai Shanghai Manufacturing 100.00 Establishment
i’an Tuopu Xi’an Xi’an Manufacturing 100.00 Establishment
Photovoltaic Establishment
Ningbo Ningbo Manufacturing 100.00
Technology Beilun
Photovoltaic Establishment
Technology Ningbo Ningbo Manufacturing 100.00
Hangzhou Bay
(2). Important non-wholly owned subsidiaries
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Profit and loss Balance of
Percentage of Dividends declared
attributable to minority
Name of shares held by 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 3,109,869.44 2,057,754.36
American USA
Limited, INC
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
176 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(3). Main financial information of important non-wholly-owned subsidiaries
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
期初余额
Name of Balance at the end of the period
Balance at the beginning of the period
subsidiar
y Current Non-curren Total Current Non-curren Total Current Non-curren Total Current Non-curren Total
assets t assets assets liabilities t liabilities Liabilities assets t assets assets liabilities t liabilities Liabilities
Tuopu North
American 39,671,843.0 42,793,208.6 38,593,709.9 38,593,709.9 17,873,744.6 24,341,065.3 27,491,819.9 27,491,819.9
3,121,365.58 6,467,320.70
USA 5 3 4 4 8 8 2 2
Limited, INC
Amount incurred in the current period Amount incurred in previous period
Total Cash flow from Total Cash flow from
Name of Subsidiary Operating Operating
Net profit comprehensive operating Net profit comprehensive operating
income income
income activities income activities
Tuopu North American 280,412,603.97 6,346,672.32 6,346,672.32 11,115,861.92
143,869,719.63 -821,466.97 -866,978.43 -1,527,841.01
USA Limited, INC
177 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(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 note:
□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
Name of joint Principal Percentage of Accounting treatment
Registered Business shares held (%) of investment in joint
venture or Business
Address Nature
associate Site Direct Indirect ventures or associate
Tuopu Electrical Ningbo Ningbo Manufacturing 50.00 Equity method
Appliances
Ningbo Borgers Ningbo Ningbo Manufacturing 50.00 Equity method
Antolin Tuopu Chongqing Chongqing Manufacturing 39.00 Equity method
(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 previous
current period period
Tuopu Electrical Ningbo Borgers Tuopu Electrical Ningbo Borgers
Appliances Appliances
Current assets 88,352,024.40 210,065,642.81 138,270,376.94 195,623,586.03
Including: cash and
6,134,984.58 66,032,557.54 21,987,735.55 37,219,502.34
cash equivalents
Non-current assets 36,874,516.36 35,523,468.77 36,800,692.85 33,719,670.26
Total assets 125,226,540.76 245,589,111.58 175,071,069.79 229,343,256.29
Current liabilities 33,605,109.38 74,773,116.93 49,632,204.32 73,608,535.10
Non-current liabilities
Total liabilities 33,605,109.38 74,773,116.93 49,632,204.32 73,608,535.10
Minority shareholders'
equity
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Equity attributable to
shareholders of the 91,621,431.38 170,815,994.65 125,438,865.47 155,734,721.19
parent company
Share of net assets
calculated at the
45,810,715.69 85,407,997.33 62,719,432.74 77,867,360.60
percentage of shares
held
Adjusted events -277,939.83 -2,559,512.71 -143,018.70 -785,497.31
--Goodwill
--Unrealized profits
from internal -277,939.83 -2,559,512.71 -143,018.70 -785,497.31
transactions
-Others
Book value of equity
investment in joint 45,532,775.86 82,848,484.62 62,576,414.04 77,081,863.29
ventures
Fair value of equity
investment in joint
ventures with public
offers
Operating income 63,242,426.20 204,377,100.32 44,353,074.46 179,258,283.48
Financial expenses 81,910.01 -445,129.03 -278,259.13 126,656.79
Income tax expense 1,043,421.81 2,160,269.23 883,012.09 3,525,086.15
Net profit 5,912,723.66 11,533,242.64 5,003,735.18 9,615,010.33
Net profit from
discontinued operations
Other comprehensive
income
Total comprehensive
5,912,723.66 11,533,242.64 5,003,735.18 9,615,010.33
income
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 Tuopu Antolin Tuopu
Current assets 60,695,988.94 74,131,960.92
Non-current assets 5,669,768.74 6,611,365.37
Total assets 66,365,757.68 80,743,326.29
Current liabilities 40,034,510.50 53,467,156.43
Non-current liabilities
Total Liabilities 40,034,510.50 53,467,156.43
Minority shareholders' equity
Equity attributable to
shareholders of the parent 26,331,247.18 27,276,169.86
company
Share of net assets calculated
10,269,186.40 10,637,706.25
by the percentage of shares held
179 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Adjusted events 86,730.40
--Goodwill
--Unrealized profits from
86,730.40
internal transactions
--Other
Book value of equity
10,355,916.80 10,637,706.25
investment in associates
Fair value of equity investment
in associates with public offers
Operating income 34,016,896.86 32,485,456.91
Net profit -722,537.06 -1,339,172.95
Net profit from discontinued
operations
Other comprehensive income
Total comprehensive income -722,537.06 -1,339,172.95
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. Other
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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.
The credit risk exposed to the Company mainly arises from Cash and bank balances, 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 Cash and bank balances owned by the Company are mainly bank deposits deposited in
well-repuated 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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
condition. The Company will monitor the credit record of each customer at regular intervals. For thos
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 June 30, 2021, 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 7,731,297.45. 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.
182 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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
Other
Item US foreign US Other foreign
Total Total
dollars currencie dollars currencies
s
Cash and bank 69,353,702.7 65,449,139.0 134,802,841. 32,195,685.4
28,698,091.63
60,893,777.0
balances 4 8 82 0 3
258,243,074. 140,221,366. 398,464,440. 210,244,792. 322,987,297.
Accounts receivable 52 09 61 96
112,742,504.75
71
42,314,230.0 45,680,578.5 87,994,808.5 39,794,482.9 75,271,306.1
Accounts payable 1 0 1 3
35,476,823.21
4
369,911,007. 251,351,083. 621,262,090. 282,234,961. 459,152,380.
Total 27 67 94
176,917,419.59
29 88
On June 30, 2021, if all other variables remain the same, if the exchange rate of renminbi 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 22,263,623.70. 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
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 401,276,432.56
401,276,432.56
Assets
1. Financial assets at fair 401,276,432.56
value through profit or 401,276,432.56
loss in this period
(1) Investment in debt
instruments
(2) Investment in equity 1,276,432.56
1,276,432.56
instrument
3)Derivative Financial
Assets
(4) Short-term wealth 400,000,000.00
400,000,000.00
management products
183 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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
(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 874,151,202.33 874,151,202.33
Financing
Total assets constantly 401,276,432.56 874,151,202.33 1,275,427,634.89
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) Held-for-sale assets
Total assets that are not
continuously measured at
fair value
184 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Total liabilities not
continuously measured at
fair value
1. Determination basis for the market price of continuous and non-continuous first-level fair value
measurement projects
□Applicable √Non-applicable
2. 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
3. Continuous and non-sustainable third-level fair value measurement projects, qualitative and
quantitative information on valuation techniques and important parameters used
□Applicable √Non-applicable
4. 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
5. 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
6. Changes in valuation technique in the current period and reasons for the changes
□Applicable √Non-applicable
7. The fair value of financial assets and financial liabilities not measured at fair value
□Applicable √Non-applicable
8. Other
□Applicable √Non-applicable
XII. Related Parties and Related-party Transactions
1. The parent company
√Applicable □Non-applicable
Unit：Yuan Currency：HKD
Percentage of the Percentage of
Company’s the Company’s
Name of parent Registered Nature of Registered
shares held by voting rights
company address business capital
the parent held by the
company parent company
MECCA
INTERNATIONAL Hong
Investment 1,000,000.00 62.94 62.94
HOLDING （HK） Kong
LIMITED
185 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
The ultimate controlling party of the Company is Jianshu Wu.
2. Subsidiaries of the Company
More details of the subsidiaries of the Company are available in “Note IX. Equity in Other Entities”.
√Applicable □Non-applicable
3. Joint ventures and associates of the Company
More details of important joint ventures or associates of the Company are available in “Note IX.
Equity in Other Entities”.
□Applicable √Non-applicable
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 note
□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 as A company controlled by the niece of
"Ninghai Jinsuoer") the actual controller of the Company
Ninghai Jinsuoer Auto Parts Factory (hereinafter referred to as A company controlled by the niece of
"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
A company controlled by the
Ninghai Zhonghao Plastic Products Co., Ltd. (hereinafter
brother-in-law of the officer of the
referred to as "Ninghai Zhonghao")
Company
A company controlled by the elder
Ninghai Xidian Qingqing Plastic Factory (hereinafter referred
sister and brother-in-law of the officer
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 actual
referred to as "Gloyel Intelligent”) controller of the Company
Ningbo Gloyel Motor Technology Co., Ltd. (hereinafter Other company controlled by the actual
referred to as "Ningbo Gloyel”) controller of the Company
186 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Gloyel Electrical (Ningbo) Co., Ltd. (hereinafter referred to as Other company controlled by the actual
" Gloyel Electrical”) controller of the Company
Other note:
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
Unit：Yuan Currency：RMB
Related-party Amount incurred in the Amount incurred in
Related party
transaction current period previous period
Ningbo Hongke Material 40,937,837.26 27,140,831.80
Ninghai Jinsuoer Material 6,563,661.02 4,873,697.05
Ninghai Saipu Material 1,424,042.76 1,101,835.90
Ninghai Jinxin Material 6,908,172.56 2,414,671.66
Ninghai Zhonghao Material 7,989,179.29 5,188,217.35
Ninghai Qingqing Material 2,946,705.13 2,469,393.63
Tuopu Electrical 793,100.56 571,615.71
Material
Appliances
Ningbo Borgers Material 5,159,310.50 4,463,648.28
Gloyel Motor Material, equipment 13,211,110.14 13,124,686.35
Gloyel Intelligent Equipment 5,175,221.23 28,318.59
Total 91,108,340.45 61,376,916.32
List of sale of goods/rendering of labor services
□Applicable √Non-applicable
Unit：Yuan Currency：RMB
Content of related Amount incurred in the Amount incurred in
Related party
transaction current period previous period
Tuopu Electrical Goods, labor services, 3,982,471.60 2,100,976.08
Appliances et al.
Ningbo Borgers Goods, labor services, 57,294,993.02 49,116,653.23
et al.
Antolin Tuopu Goods, labor services, 3,080,494.76 4,043,360.77
et al.
Total 64,357,959.38 55,260,990.08
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
187 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
□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 recognized Rental income recognized in
Name of tenant Kind of lease assets
in the current period previous period
Ningbo Borgers Houses and structures 337,500.00 325,000.00
Gloyel Motor Houses and structures 108,000.00 108,000.00
Total 445,500.00 433,000.00
The Company as tenant:
□Applicable √Non-applicable
Unit：Yuan Currency：RMB
Rental income recognized Rental income recognized in
Name of tenant Kind of lease assets
in the current period previous period
Gloyel Electrical Houses and structures 3,129,489.91 0.00
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
(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 2,707,471.80 2,646,987.58
management members
188 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(8). Other related-party transactions
□Applicable √Non-applicable
6. Accounts receivable and payable of related parties
(1). Receivables
√Applicable□Non-applicable
Unit：Yuan Currency：RMB
Balance at the beginning of the
Balance at the end of the period
period
Item Related party
Bad debt Bad debt
Book balance Book balance
provision provision
Accounts Ningbo 23,677,969.25 1,183,898.46 29,293,492.21 1,464,674.61
receivable Borgers
Tuopu 2,206,002.44 110,300.12 2,638,160.39 131,908.02
Accounts
Electrical
receivable
Appliances
Accounts Antolin 2,083,239.87 104,161.99 2,326,696.22 116,334.81
receivable Tuopu
Other non-current Gloyel 31,125,255.00 16,200,000.00
assets Intelligent
(2). Payables
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Item Related party Book balance at the Book balance at the beginning
end of the period of the period
Accounts payable Ningbo Borgers 1,184,149.75 5,202,246.00
Accounts payable Ninghai Jinsuoer 4,866,872.90 5,293,108.17
Accounts payable Ninghai Saipu 1,333,115.40 1,108,699.60
Accounts payable Ninghai Jinxin 5,495,590.77 5,191,550.61
Tuopu Electrical 511,566.94 160,365.20
Accounts payable
Appliances
Accounts payable Ninghai Zhonghao 7,724,971.72 4,949,234.52
Accounts payable Ninghai Qingqing 5,223,923.06 2,135,445.47
Accounts payable Ningbo Hongke 39,169,025.52 35,419,299.60
Gloyel Motor 6,296,698.16 7,111,998.16
Accounts payable
7. Related-party commitments
□Applicable √Non-applicable
8. Others
□Applicable √Non-applicable
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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
3. Particulars of cash-settled share-based payment
□Applicable √Non-applicable
4. Modification and termination of share-based payment
□Applicable √Non-applicable
5. Other
□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
contract is RMB 210 million, the original value and net value of properties on mortgage is RMB
118,839,780.32 and RMB 46,907,530.34 respectvely; the original value and net value of land on
mortgage is RMB 10,659,462.00 and RMB 6,698,677.70 respectvely.
(2) 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 ofJune 30, 2021, the short-term loan balance under the
contract is RMB 190 million, the original value and net value of properties on mortgage is RMB
118,839,780.32 and RMB 46,907,530.34 respectvely; the original value and net value of land on
mortgage is RMB 10,659,462.00 and RMB 6,698,677.70 respectvely.
(3) On 24 June 2021, the Company signed a loan contract with the Export-Import Bank of China
Ningbo Branch, with the granted credit line at RMB 150 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 June 30, 2021, 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 46,907,530.34 respectvely; the original value and net value of land on
mortgage is RMB 10,659,462.00 and RMB 6,698,677.70 respectvely.
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(4) 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 invesmtnet agreement with Administration Committee of Ningbo Economic &
Technological Development Zone (NETD). Under the said industrial land invesmtnet 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).
(5) 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 June 30, 2021, there were bank acceptance notes in a sum
of RMB 563,979,236.34 under pledge and a part of the pledged notes receivable converted into pledged
bank deposits in a sum of RMB 74,301,803.59, and the notes payable in a sum of RMB 632,281,039.93
were issued.
(6) 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 June 30, 2021, there were bank acceptance
notes in a sum of RMB 350,653,610.60 under pledge and a part of the pledged notes receivable
converted into pledged bank deposits in a sum of RMB 35,961,339.23, and the notes payable in a sum of
RMB 309,853,212.61 were issued.
(7) 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 June 30, 2021, there were bank acceptance notes in a sum of RMB 228,688,761.20 under
pledge, and the notes payable in a sum of RMB 189,953,767.34were issued.
(8) Tuopu Intelligent Brake signed the note pool cooperation agreement 9411202000000006 and
the maximum pledge contract ZZ9411202000000006 with SPDB Ningbo Development Zone
191 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Sub-branch. As of June 30, 2021, the bank acceptance notes in a sum of RMB 23,140,000.00 were put
under pledge and the notes payable in a sum of RMB 15,969,585.96 were issued.
(9) Ningbo Qianhui signed the maximum pledge contract 06001PC20198005 with Bank of Ningbo
Ninghai Branch. As of June 30, 2021, there were bank acceptance notes in a sum of RMB 13,633,026.64
under pledge and a part of the pledged notes receivable converted into pledged bank deposits in a sum of
RMB 2,542,758.77, and the notes payable in a sum of RMB 15,450,827.54 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
3. Sales return
□Applicable √Non-applicable
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). Pospective application
□Applicable √Non-applicable
2. Debt restructuring
□Applicable √Non-applicable
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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 1,119,078,106.37
Subtotal within 1 year 1,119,078,106.37
1 to 2 years 154,974,823.30
2-3 years 78,137,018.39
Over 3 years
3 to 4 years
4 to 5 years
Over 5 years 323,215.01
Bad debt provision -95,215,708.18
Total 1,257,297,454.89
193 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(2). Categorial 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 Book Balance Bad Debt Provision
Bad Debt Provision
Category
Accrued Book value Accrued Book Value
Percentage Percentage
Amount Amount Proportion Amount Amount Proportion
(%) (%)
(%) (%)
Bad debt
provision
accrued based
on single item
Including:
Bad debt
provision
1,352,513,163.07 100.00 95,215,708.18 7.04 1,257,297,454.89 1,965,908,204.74 100.00 124,970,891.78 6.36 1,840,937,312.96
accrued based
on single item
Including:
Bad debt
provision
accrued based 1,352,513,163.07 100.00 95,215,708.18 7.04 1,257,297,454.89 1,965,908,204.74 100.00 124,970,891.78 6.36 1,840,937,312.96
on aging
combinations
Total 1,352,513,163.07 / 95,215,708.18 / 1,257,297,454.89 1,965,908,204.74 / 124,970,891.78 / 1,840,937,312.96
194 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 1,119,078,106.37 55,953,905.32 5.00
1 to 2 years 154,974,823.30 15,497,482.33 10.00
2 to 3 years 78,137,018.39 23,441,105.52 30.00
3 to 5 years
Over 5 years 323,215.01 323,215.01 100.00
Total 1,352,513,163.07 95,215,708.18 7.04
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, 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
Category Beginning of the Withdrawal or Other End of the
Provision Write-off
Period Reversal Changes Period
Bad debt
provision
accrued 124,970,891.78 29,755,183.60 95,215,708.18
based on
combination
Total 124,970,891.78 29,755,183.60 95,215,708.18
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
(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 Proportion in Total Accounts Receivable Bad Debt
Accounts Receivable
(%) Provision
No.1 266,499,051.55 19.70 13,324,952.58
No.2 265,819,553.17 19.65 13,290,977.66
No.3 193,165,299.23 14.28 12,177,502.69
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Balance at the End of the Period
Name of Entity Proportion in Total Accounts Receivable Bad Debt
Accounts Receivable
(%) Provision
No.4 169,639,799.62 12.54 10,645,624.31
No.5 94,265,738.35 6.97 4,713,286.92
Total 989,389,441.92 73.14 54,152,344.16
(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 beginning of the
Item Balance at the end of the period
period
Interest receivable
Dividend receivable
Other Receivables 37,523,577.06 76,146,034.58
Total 37,523,577.06 76,146,034.58
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
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
(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
Within 1 year
Including: sub-items within 1 year
Within 1 year 12,120,025.66
Subtotal within 1 year 12,120,025.66
1 to 2 years 9,857,500.00
2-3 years 18,133,500.00
Over 3 years 11,110,881.71
3 to 4 years
4 to 5 years
Over 5 years 205,800.00
Bad debt provision -13,904,130.31
Total 37,523,577.06
(8). Categorized by the nature of funds
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Book balance at the end of the Book balance at the beginning
Nature of Funds
period of the period
Temporary borrowings 49,415,981.71 84,615,981.71
Petty cash funds 137,500.00 88,700.00
Security deposit 19,250.00 19,250.00
Other 1,854,975.66 1,822,775.68
Total 51,427,707.37 86,546,707.39
(9). Categorized by the nature of funds
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Book balance at the end of the Book balance at the beginning
Nature of Funds
period of the period
Temporary borrowings 49,415,981.71 84,615,981.71
Petty cash funds 137,500.00 88,700.00
Security deposit 19,250.00 19,250.00
Other 1,854,975.66 1,822,775.68
Total 51,427,707.37 86,546,707.39
(10). Particulars of bad debt provision
√Applicable □Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Unit：Yuan Currency：RMB
Phase 1 Phase 2 Phase 3
Expected credit Expected credit
loss throughout loss throughout
Expected credit Total
Bad debt provision the duration (no the duration
loss in the next 12
credit (credit
months
impairment impairment has
occurred) occurred)
Balance on January 1, 10,400,672.81 10,400,672.81
2021
Balance of the current
period on January 1,
2021
--Transfer to Phase 2
--Transfer to Phase 3
--Transfer to Phase 2
--Transfer to Phase 1
Provision made in the 3,503,457.50 3,503,457.50
current period
Reversal in the
current period
Charge-off in the
current period
Write-off in the
current period
Other changes
Balance on June 30, 13,904,130.31 13,904,130.31
2021
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
Balance at Amount Changed in the Current Period
Balance at the
the Charge-of
Category Withdrawal Other End of the
Beginning of Provision f or
or Reversal Changes Period
the Period write-off
Accounts
receivable
with bad debt 10,400,672.8
3,503,457.50 13,904,130.31
accrued based 1
on aging
portfolio
Total 10,400,672.8
3,503,457.50 13,904,130.31
1
198 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Bad debt provision in the current period with significant amount of withdrawal or reversal:
□Applicable √Non-applicable
(12). Particulars of other receivables actually written off in the current period
□Applicable √Non-applicable
Other note to write-off of receivables:
□Applicable √Non-applicable
(13). Particulars of other receivables of the top five closing balances collected by debtors
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Proportion in total Balance of bad
Balance at the
Nature of other receivables at debt provision at
Name of Unit end of the Aging
funds the end of the the end of the
period
period (%) period
Shanghai Temporary 49,415,981.71 1 to 4 years 96.09 13,286,239.03
Towin borrowings
Liu Hongsong Other 455,000.00 2 to 4 years 0.88 259,500.00
Li Dongmei Other 255,800.00 3 to 5 years 0.50 229,800.00
Xu Longhui Other 183,500.00 1 to 2 years 0.36 16,850.00
Cao Yuzhuo Other 114,000.00 Within 1 year 0.22 5,700.00
Total / 50,424,281.71 / 98.05 13,798,089.03
(14). Accounts receivable related to government subsidies
□Applicable √Non-applicable
(15). Other accounts receivable derecognised due to transfer of financial assets
□Applicable √Non-applicable
(16). Amount of assets and liabilities generated due to transfer of other receivables and continued
involvement
□Applicable √Non-applicable
Other Notes:
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 5,334,164,283.08 5,334,164,283.08 3,921,478,960.48 3,921,478,960.48
Investments in joint ventures and 138,737,177.28 138,737,177.28
150,295,983.58 150,295,983.58
associates
Total 5,472,901,460.36 5,472,901,460.36 4,071,774,944.06 4,071,774,944.06
(1). Investments in subsidiaries
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Balance at the end
Balance at the Impairment provision
Increased in current Decreased in Balance at the end of the period of
Invested Entity beginning of the accrued in the current
period current period of the period 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
Huzhou Tuopu 10,900,000.00 10,900,000.00
Wuhan Tuopu 150,000,000.00 150,000,000.00
Wuhan 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
Tuopu Investment 100,000.00 100,000.00
200 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Yuxiang E-commerce 3,500,000.00 200,000.00 3,700,000.00
Tuopu Poland 18,000,000.00 18,000,000.00
Baoji Tuopu 18,980,000.00 18,980,000.00
Taizhou Tuopu 64,650,000.00 35,350,000.00 100,000,000.00
Tuopu Automotive 1,457,800,000.00 665,200,000.00 2,123,000,000.00
Electronics
Jinzhong Tuopu 8,000,000.00 8,000,000.00
Shenzhen Towin 11,300,000.00 11,300,000.00
Tuopu Brasil 80,776,216.50 80,776,216.50
Zhejiang Tuowin 571,320,000.00 571,320,000.00
Sichuan Maigao 290,000,000.00 290,000,000.00
Hunan Tuopu 50,000,000.00 111,000,000.00 161,000,000.00
Tuopu USA, LLC 35,091,204.56 35,091,204.56
Tuopu Chassis 107,500,000.00 104,800,000.00 212,300,000.00
Tuopu Thermal Management 33,000,000.00 467,235,322.60 500,235,322.60
Total 3,921,478,960.48 1,412,685,322.60 5,334,164,283.08
(2). Investments in joint ventures and associates
√Applicable □Non-applicable
Unit：Yuan Currency：RMB
Decrease/Increase in the current period Balan
ce of
impair
Investment Adjustme Provisio ment
Balance at the Inves Inves
Invested profit and loss nt on other Other Cash dividends n for Balance at the End provis
Beginning of the tment tment Oth
Entity recognized comprehe changes or profit declared impairm of the Period ion at
Period Incre Decr er
under the nsive in equity to distribute ent the
ased eased
equity method income accrued end of
the
period
I. Joint
ventures
Tuopu
62,576,414.03 2,956,361.83 20,000,000.00 45,532,775.86
Electrical
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Appliances
Ningbo
77,081,863.30 5,766,621.32 82,848,484.62
Borgers
Subtotal 139,658,277.33 8,722,983.15 20,000,000.00 128,381,260.48
II. Associates
Antolin
10,637,706.25 -281,789.45 10,355,916.80
Tuopu
Subtotal 10,637,706.25 -281,789.45 10,355,916.80
Total 150,295,983.58 8,441,193.70 20,000,000.00 138,737,177.28
Other Notes:
□Applicable √Non-applicable
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Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
4. 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 business 2,608,935,777.52 2,065,485,916.16
1,453,977,894.42 1,083,822,438.24
operations
Other business 142,236,128.59 89,618,093.50
77,192,139.44 52,948,726.36
operations
Total 2,751,171,906.11 2,155,104,009.66 1,531,170,033.86 1,136,771,164.60
(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 cost
110,000,000.00
method
Long-term equity investment income measured by 8,441,193.70
6,747,676.66
equity method
Investment income from disposal of long-term equity
investment
Investment income of trading financial assets during 4,324,874.65
10,941,545.79
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 products
Total 12,766,068.35 127,689,222.45
6. Others
□Applicable √Non-applicable
203 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
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 -1,258,747.17
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 13,938,042.57 附注十、七、
closely associated with the regular business operations of the 84
Company, except for government subsidies that 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 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 loss 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 1,711,141.42
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 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 3,641,696.58
Other gains and losses items that fit the definition of non-recurring
gains and losses
204 / 205
Ningbo Tuopu Group Co., Ltd. Semi-annual Report 2021
Impact of income tax -2,962,928.98
Impact of minority equity -56,934.88
Total 15,012,269.54
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 Average EPS
Profit for the reporting period
ROE (% Basic EPS Diluted EPS
Net profit attributable to
common shareholders of the 4.81 0.42 0.42
Company
Net profit attributable to
common shareholders of the
4.65 0.41 0.41
Company after deducting
non-recurring gains and losses
3. Differences between international and Chinese accounting standards
□Applicable √Non-applicable
4. Others
□Applicable √Non-applicable
Chairman: Jianshu Wu
Date of Submission to Board of Directors: August 19th, 2021
Revisions
□Applicable √Non-applicable
205 / 205
