2024 Interim Report
Stock Code: 688516 Abbreviation: ATW
Wuxi Autowell Technology Co., Ltd.
2024 Interim Report
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2024 Interim Report
Important Notice
I. The Board of Directors, Board of Supervisors and Directors, Supervisors, and Senior Management of
the Company Undertake That the Information in this Report Contains No False Record, Misleading
Statement of Material Omission, and Assume Individual and Joint and Several Liability for the
Authenticity, Accuracy and Completeness of the Information in This Report.
II. Notice of Material Risks
The Company has elaborated in the Report on all sorts of risks that it may face in operations and
countermeasures. For details, please refer to “V. Risk Factors” in Section III “Management Discussion
and Analysis”.
III. All Directors of the Company Attended the Board Meeting.
IV. This Interim Report is Unaudited.
V. Mr. Ge Zhiyong, the Company’s Chairman, Mr. Yin Zhe, the Person in Charge of Accounting,
and Mr. Li Kai, the Head of the Accounting Department (Chief Accountant) Hereby Warrant the
Authenticity, Accuracy, and Completeness of the Financial Statements in this Report.
VI. The Profit Distribution Plan or the Plan on Converting Capital Reserves to Share Capital in
This Reporting Period Adopted by the Board of Directors.
The Company intends to distribute a total cash dividend of RMB270.41 Million to all shareholders
at the rate of RMB8.6 (tax inclusive) per 10 shares on the basis of 314,433,169 shares as the total capital
share from the date of the notice on convening the board meeting (August 11, 2024). The Company
plans neither to distribute bonus shares, nor to convert reserve fund into its share capital prior to the
registration date for shares eligible for the planned distribution. In the event of any change in the
Company’s total share capital stemming from debt-to-equity swap, share repurchase, buyback and
cancellation of shares used for equity incentives, buyback and cancellation of shares arising from
reorganization of major assets, etc., the Company plans to adjust the cash dividend per share to keep the
total amount of distribution unchanged, and will announce separately the details of the adjustment.
VII. Existence of Such Significant Events as Special Arrangements on Corporate Governance
Applicable √ N/A
VIII. Forward-Looking Statements on Risks
√ Applicable N/A
Forward-looking statements such as future plans mentioned in this Report do not constitute actual
commitments of the Company to the investors. The investors and related parties should be fully aware of
the risks.
IX. Existence of Fund Occupied by Controlling Shareholders and Other Related Parties for
Non-operational Purposes
No
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X. Existence of External Guarantee Provided in Violation of the Company’s Decision-making
Procedures
No
XI. Existence of a Case Where More Than Half of the Directors Fail to Ensure the Authenticity,
Accuracy, and Completeness of This Interim Report Disclosed by the Company
No
XII. Others
√ Applicable N/A
In case of any discrepancies between the Chinese version and the report, the Chinese version shall prevail.
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Table of Contents
SECTION I DEFINITIONS ..................................................................................................................... 6
SECTION II COMPANY PROFILE AND MAJOR FINANCIAL INDICATORS .........................12
SECTION III MANAGEMENT DISCUSSION AND ANALYSIS .................................................... 19
SECTION IV CORPORATE GOVERNANCE .................................................................................... 63
SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES ........................................69
SECTION VI SIGNIFICANT EVENTS ................................................................................................72
SECTION VII CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS.............114
SECTION VIII PREFERRED SHARES ............................................................................................130.
SECTION IX BONDS ...........................................................................................................................131
SECTION X FINANCIAL STATEMENTS ........................................................................................138
Financial statements bearing the signatures and seals of the Company’s
chairman, the person in charge of accounting, and the head of the accounting
List of documents for department (chief accountant)
reference Originals of all corporate documents and announcements disclosed by the
Company on websites designated by the China Securities Regulatory
Commission (CSRC) during the reporting period
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Section I Definitions
In this Report, unless the context otherwise requires, the following terms shall convey the meanings as
set out below:
Definitions of frequently used terms
Company, the Company, Refers to Wuxi Autowell Technology Co., Ltd., a joint-stock
joint-stock company, company changed from Wuxi Autowell Technology
Autowell, Autowell Co., Ltd. Corporation as a whole.
Intelligent Equipment Refers to Wuxi Autowell Intelligent Equipment Co., Ltd., a
subsidiary controlled by the Company
Supply Chain Company Refers to Wuxi Autowell Supply Chain Management Co., Ltd.,
a wholly-owned subsidiary of the Company
Optics Application Refers to Wuxi Autowell Optics Application Co., Ltd., a
subsidiary controlled by the Company
SCEC Refers to Wuxi Songci Electromechanical Co., Ltd., a subsidiary
controlled by the Company
Coshin Technology Refers to Wuxi Autowell Coshin Semiconductor Technology
Co., Ltd., a subsidiary controlled by the Company
XuRi Technology Refers to Wuxi Autowell XuRi Technology Co., Ltd., a
subsidiary controlled by the Company
Leddo Technology Refers to Wuxi Leddo Technology Co., Ltd., a subsidiary
controlled by the Company
Wuxi Zhiyuan Refers to Wuxi Autowell Zhiyuan Equipment Co., Ltd., a
subsidiary controlled by the Company
Jiexin Technology Refers to Wuxi Autowell Jiexin Technology Co., Ltd., a
subsidiary controlled by the Company
Polar New Energy Refers to Polar New Energy (Bengbu) Co., Ltd., a
wholly-owned subsidiary of the Company
Wuxi Polar Refers to Wuxi Polar New Energy Co., Ltd., a subsidiary
controlled by the Company
AUTOWELL Japan Refers to AUTOWELL Japan Corporation, a wholly-owned
subsidiary of the Company
Autowell (Singapore) Refers to Autowell (Singapore) PTE. LTD., a wholly-owned
subsidiary of the Company
Qinhuangdao Zhiyuan Refers to Qinhuangdao Autowell Zhiyuan Equipment Co., Ltd, a
holding sub-subsidiary controlled by the Company
Autowell (Malaysia) Refers to AUTOWELL (MALAYSIA) SDN., BHD., a holding
sub-subsidiary controlled by the Company
Songyu Technology Refers to Wuxi Songyu Technology Co., Ltd., a company held
by the Company
Optech Refers to Shanghai Optech Science and Technology Co., Ltd., a
companyheld by the Company
Greenstone Refers to Wuxi Greenstone Automation Equipment Co., Ltd., a
company held by the Company
I-TEK OptoElectronics Refers to Hefei I-TEK OptoElectronics Co., Ltd. a company
held by the Company
Actual Controller Refers to Persons acting in concert, namely, Ge Zhiyong and Li
Wen
Wuxi Woshine Refers to Wuxi Woshine Safety Equipment Co., Ltd., a
company controlled or significantly influenced by the
Company’s directors, supervisors, or senior
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management
Wuxi Aochuang Refers to Wuxi Aochuang Investment Partnership (L.P.), a
shareholding platform for the Company’s employees
Wuxi Aoli Refers to Wuxi Aoli Investment Partnership (L.P.), a
shareholding platform for the Company’s employees
A-shares Refers to RMB ordinary shares listed in Chinese mainland
Shareholders’ General Refers to Shareholders’ general meeting of Wuxi Autowell
Meeting Technology Co., Ltd.
Board of Directors Refers to Board of Directors of Wuxi Autowell Technology Co.,
Ltd.
Board of Supervisors Refers to Board of Supervisors of Wuxi Autowell Technology
Co., Ltd.
Articles of Association Refers to Articles of Association of Wuxi Autowell Technology
Co., Ltd.
Reporting Period Refers to The period from January 1, 2024 to June 30, 2024
Yuan, million Yuan Refers to RMB, RMB million
CSRC Refers to China Securities Regulatory Commission
SSE Refers to Shanghai Stock Exchange (SSE)
Stringer Refers to A machine used for string soldering, including
conventional stringers and MBB PV Cell ones.
MBB PV Cell Soldering Refers to A machine used for soldering MBB PV cells with
Stringer more than six busbars
Laser Cutting Machine Refers to A cutting machine used to cut full-sized cells into
half-cut or smaller (like1/3-cut and 1/4-cut) cells. It
can be used together with the Company’s soldering
stringer, or individually. It is applied to half-cut cell
soldering, smaller cell soldering, negative spacing
soldering, etc.
Wafer Inspection System Refers to A system used for sorting wafers in the production of
PV wafers, provided with intelligent functions
including deep learning, machine vision, and fault
pre-warning.
PV Cell Firing and Refers to A furnace seamlessly connecting the light induced
Passivation Furnace (Light zone to the firing zone based on the existing firing
Induced) technology so as to reduce the footprint and enegry
consumption of the machine, while improving the
efficiency of N-type cell. It may adjust the Fermi level,
control the total amount and valence state of hydrogen,
and enhance the hydrogen passivation, to suppress the
LID & LeTID effect of P-type cells or increase the
conversion efficiency of N-type cells.
Monocrystal Growth Refers to A machine used to produce mono silicon ingots
Furnace required in the production of cells. It is an automated
machine that can melt the silicon materials via the
graphite resistance heater in an inert atmosphere and
then grow dislocation-free monocrystal silicon ingots
through the CZ method automatically.
Semiconductor Wire Refers to Machines employed in the back-end assembly and
Bonder/Aluminum Wire testing processes in the production of semiconductors,
Bonder and aluminum wires, gold, silver, and copper wires or
aluminum strips are used to connect Pad with lead
wires via soldering.
Screen Printing Line Refers to A printing section where metalized busbars are printed
onto blue wafers, covering blue wafer feed, printing,
drying, firing and light-induced annealing, inspection,
and sorting, thus ensuring that the final cells can
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generate power in a high-efficiency way. Moreover,
cells are sorted and inspected according to their
performance indicators, so as to provide energy
carriers for the subsequent module assembly.
ESS Module /PACK Refers to A production line that assembles multiple individual
Assembly Line cells into a specific battery modules via series-parallel
connection according to specific requirements, which
is intended for the ESS market, and a production line
that assembles a specific battery pack with multiple
battery modules via series-parallel connection as per
specific requirements. Each of the SSE Module
Assembly Line and the PACK Assembly Line can be
sold separately or in combination.
LEM Refers to A machine designed to significantly improve the
efficiency of TOPcon cells by enhancing the contact
between their metal fingers and silicon after firing and
light-induced annealing.
AOI Machine Refers to A machine used to detect quality defects in the process
of Die Bonding (DB), Wire Bonding (WB) and Pin
insertion during IC assembly and testing, as well as
visual and dimensional defects of die, wire, bond, and
DBC. It is mainly applied to the inspection of
framework and module-based products.
Semiconductor Dicing Saw Refers to A machine used for fully automated dicing in sectors
such as semiconductor wafers, integrated circuits,
optical communications devices, and LED. It is
primarily used to dice silicon wafers, lithium niobate,
ceramics, glass, quartz, aluminum oxide, and PCB
boards and other materials.
Die Bonder Refers to A machine used for die bonding in the process of
semiconductor device assembly, where die is pasted
onto leadframes or substrates. It is mainly applied to
integrated circuits and power devices.
CMP Machine Refers to A machine used in the planarization of wafers. Both
mechanical friction and chemical corrosion are
employed to remove in a high-efficiency way excess
materials on the surface of wafers so that nanoscale
planarization can be achieved overall.
BC Adhesive Printing Refers to A machine used for pretreatment units prior to the
Machine welding of BC modules, employing the printing
technology to print insulating and conductive
adhesives onto cells to make welding reliable.
BC Printing Line Refers to A process used for metalization in the production of
BC cells, including cell printing, firing, and sorting, to
ensure cells are prepared in a metalized manner.
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Section II Company Profile and Major Financial Indicators
I. Company Profile
Chinese name of the Company 无锡奥特维科技股份有限公司
Chinese abbreviation of the Company 奥特维
English name of the Company Wuxi Autowell Technology Co., Ltd.
English abbreviation of the Company Autowell
Legal representative of the Company Ge Zhiyong
Registered address No. 3, Xinhua Road, Xinwu District, Wuxi
Changes in the Company’s registered Modified from No. 25, Zhujiang Road, Wuxi to No. 3,
address Xinhua Road, Xinwu District, Wuxi in September, 2022
Office address No. 3, Xinhua Road, Xinwu District, Wuxi
Post code of office address 214000
Corporate website http://www.wxautowell.com/
Email investor@wxautowell.com
II. Contact Persons and Contact Details
Board secretary (domestic Securities affairs representative
representative for information
disclosure)
Name Zhou Yongxiu Li Cuifen
Contact address No. 3, Xinhua Road, Xinwu District, No. 3, Xinhua Road, Xinwu District,
Wuxi Wuxi
Tel 0510-82255998 0510-82255998
Fax 0510-81816158 0510-81816158
Email investor@wxautowell.com investor@wxautowell.com
III. Information Disclosure and Filing Place
Newspapers chosen by the Company for China Securities Journal, Shanghai Securities News,
information disclosure Securities Daily, and Securities Times
Website for publication of the interim report www.sse.com.cn
Place of filing of the Company’s interim
Office of the Company’s Board of Directors
report
IV. Profile of Corporate Stock/Depository Receipts
(i) Profile of corporate stock
√ Applicable N/A
Profile of corporate stock
Stock class Stock exchange Short name Stock code Pre-modification
and sector short name
A-share SSE STAR ATW 688516 N/A
Market
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(ii) Profile of corporate depository receipts
Applicable √ N/A
V. Other Information
Applicable √ N/A
VI. Major Accounting Data and Financial Indicators
(i) Major accounting data
Unit: Yuan, Currency: RMB
YoY
This reporting
The same period of increase/decrease
Major accounting data period
the previous year in the reporting
(January-June)
period (%)
Operating income 4,417,698,117.26 2,517,486,369.86 75.48
Net profit attributable to shareholders
769,082,688.50 522,523,778.99 47.19
of the listed company
Net profit attributable to shareholders
of the listed company after deduction 772,461,286.17 502,569,575.73 53.70
of non-recurring profit or loss
Net cash flows from operating
-9,711,098.51 268,896,252.11 N/A
activities
YoY
The end of the The end of the increase/decrease
reporting period previous year at the period end
(%)
Net assets attributable to shareholders
4,044,277,936.80 3,664,156,771.29 10.37
of the listed company
Total assets 14,947,288,228.54 15,617,486,444.78 -4.29
(ii) Major financial indicators
This reporting YoY
The same period
period increase/decrease
Major financial indicators of the previous
(January-June) in the reporting
year
period (%)
Basic earnings per share (Yuan/share) 2.45 1.66 47.59
Diluted earnings per share
2.35 1.66 41.57
(Yuan/share)
Basic earnings per share after
deduction of non-recurring profit or 2.46 1.60 53.70
loss (Yuan/share)
Weighted average return on net assets Up by 0.28
19.23 18.95
(%) percentage point
Weighted average return on net assets
Up by 1.09
after deduction of non-recurring profit 19.32 18.23
percentage point
or loss (%)
Ratio of R&D expenses to operating Down by 1.13
4.03 5.16
income (%) percentage points
Note: The earnings per share in the same period of the previous year are recalculated based on the share
capital by the end of this reporting period.
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Explanatory notes on the Company’s major accounting data and financial indicators
√ Applicable N/A
1. Operating income increased by 75.48% year on year, mainly attributable to steady growth in sales
thanks to continuous acceptance inspections for orders in hand, continued competitive edges of core
products and improved operating efficiency.
2. Net profit attributable to shareholders of the listed company gained 47.19% year on year, mainly
attributable to growth in net profit as a result of more operating income.
3. Net profit attributable to shareholders of the listed company after deduction of non-recurring profit
or loss added 53.70% from the previous year, mainly attributable to growth in net profit as a result
of more operating income, and less non-recurring profit or loss.
4. Net cash flows from operating activities saw a sharp decline from the previous year, mainly
attributable to the fact that growth in sales income actually received was outnumbered by the
increase in purchase payments and payrolls.
VII. Accounting Data Difference Under Chinese and Foreign Accounting Standards
Applicable √ N/A
VIII. Non-recurring Profit and Loss Items and Amounts
√ Applicable N/A
Unit: Yuan, Currency: RMB
Non-recurring profit and loss items Amount Note (if applicable)
Profit or loss arising from the disposal of illiquid
assets, including write-off of provision for asset -164,407.40
impairment
Government subsidies included in the current
profit or loss (except for those that are closely
related to the Company’s normal business
operations, as required by national policies, 5,397,451.34
entitled in accordance with established standards,
and have a sustained impact on the Company's
profit or loss)
Apart from hedging instruments relating to the
normal operations of the Company, profit or loss
from change in fair value of financial assets and
-20,540,182.44
financial liabilities held by non-financial
enterprises and investment income from disposal
of financial assets and financial liabilities
Capital occupation fees charged to non-financial
enterprises, included in the current profit or loss
Profit or loss from entrusted investments or assets
Profit or loss from consignment loans
Loss of assets arising from force majeure such as
natural calamities
Reversal of impairment provision for receivables
12,627,272.33
subject to a separate impairment test
Profit arising from investment costs for the
acquisition of subsidiaries, associates and joint
ventures less than the revenue generated from
their identifiable net assets of the invested entity
at fair value at the time of acquisition
Current net profit or loss of subsidiaries resulting
from the merger of enterprises under common
control from the beginning of the period to the
date of the merger
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Profit or loss from non-monetary asset swap
Profit or loss from debt restructuring 1,134,950.39
Non-recurring fees resulting from halted
operations, such as employee placement
One-off impact of adjustments of laws and
regulations on taxation and accounting on the
current profit or loss
One-off share-based payment arising from
cancellation or modification of equity incentives
Profit or loss from changes in fair value of payroll
payable after vesting date for share-based
payment in cash
Profit or loss from changes in fair value of
investment properties using the fair value model
for subsequent measurement
Profit from the excess over the fair value in a
transaction at an obviously unfair price
Profit or loss from contingencies irrelevant to the
normal operations of the Company
Custodian fee income from entrusted operations
Other non-operating income and expenses beyond
-382,006.17
the aforesaid items
Other profit or loss items falling within the
definition of non-recurring profit or loss
Deduction: effect of income tax -263,166.53
Impact on minority interests (after tax) 1,714,842.25
Total -3,378,597.67
An explanation shall be made with regard to the Company's considerations for classifying items not
included in the Explanatory Announcement on Information Disclosure by Companies Offering Securities
to the Public No. 1 — Non-Recurring Profits and Losses as non-recurring profit and loss items involving
large amounts, and non-recurring profit and loss items included in the above Announcement as recurring
profit and loss items.
Applicable √ N/A
IX. Explanatory Notes on Performance Indicators Under Non-generally Accepted Accounting
Principles
Applicable √ N/A
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Section III Management Discussion and Analysis
I. Introduction to the Company’s Industry and Main Business in the Reporting Period
(i) Main business, major products or services
1. Main business
The Company specializes in R&D, manufacturing and sales of high-end equipment. It is a new and
high-tech enterprise with independent R&D and sustainable innovation capacity, committing to
providing its clients with high-performance and cost-effective high-end equipment and solutions.
2. Major products and services
The Company’s products are primarily used in PV, lithium-ion battery/energy storage industries
and semiconductor assembly and testing. Its main products consist of PV equipment such as large,
ultra-speed PV Cell MBB Soldering Stringer (including OBB/BC Soldering Stringer), large, ultra-speed
Wafer Inspection System, BC Adhesive Printing Machine, BC Printing Line, Screen Printing Line, PV
Cell Light Induced Annealing Furnace, Low Oxygen Monocrystal Growth Furnace, power/ESS Module,
PACK Line, as well as PV Cell Cutting Machine for semiconductor assembly and testing, Aluminum
Wire Bonder and AOI Machine, etc.
Moreover, the Company also refits, upgrades, and provides spare parts for its clients’ existing
equipment.
(ii) Main business model
1. Profit-making model
The Company mainly makes a profit from income from sales of equipment (mainly PV equipment,
lithium-ion battery/ESS equipment, semiconductor assembly and testing equipment in the reporting
period) and ancillary and spare parts as well as equipment transformation among other technical services,
after deduction of costs and expenses.
2. R&D model
After unremitting exploration, the Company currently has put in place a sound project-based R&D
model, which is briefly set forth in the following diagram:
Product R&D
Sales contract Customization
Corporate Product Independent Project
strategy planning R&D management
Product
optimization
Technological Platform
R&D development
Technological
development
The Company’s R&D activities involve product R&D and technological development. Product
R&D activities in the Company comprise product planning, product optimization and client
contract-based independent R&D, R&D for improvement and customization. Technological
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development includes forward-looking technology R&D (for technical reserve and proof of principles,
and platform-based development targeting modules/types that can be widely applied.
3. Purchasing model
The Company purchases raw materials in accordance with material requirements planning
generated from the master production schedule (MPS) that is formed based on sales orders/preliminary
applications.
As production in the Company involves a wide variety of raw materials, they are divided into
purchased parts and processed parts.
The Company’s purchasing division is split into the Purchase Strategy Department and the
Purchase Implementation Department. The former is responsible for supplier development, management,
maintenance, and price negotiation while the latter is tasked with fulfillment of purchase plans and
material tracking. The Company has set up a logistics department to take charge of the storage, issue,
and receipt of materials.
Furthermore, the Company has laid down such regulations and procedures as procedures for
Supplier Development and Approval, Material Planning, Implementation of Purchases, Administration
for Material Receipt, and Material Issue, to regulate in a strict manner the implementation of every
purchasing procedure.
4. Production model
(1) In-house production
In the reporting period, the Company manufactures products based on both sales volume and sales
forecast. In general cases, the Company determines its purchase plan and production schedule in
accordance with orders placed by clients. In circumstances where orders from some clients are large and
involve short lead time, given a certain period of time is required for purchase, production, and delivery
of equipment products, the company may, after receipt of approval, implement some sort of production
of relatively standardized products based on forecasts with an aim to maintain the continuity and scale of
production.
The main process of production in the Company is as follows: it generates the MPS in accordance
with orders or forecast-based applications as well as product delivery planning and material supply
scheduling, and follows the MPS to work out production scheduling, material requirements planning and
outsourcing planning; the production department is tasked to finish installation, debugging, inspection of
finished products and product receipt; at the time of delivery, to make transportation easier, the
Company’s products may be split into smaller modules which are then assembled and tested after arrival
at client sites.
(2) Outsourcing
The Company’s products are primarily made by itself. To arrange production scheduling in a more
flexible manner, and improve production efficiency, the Company follows the MPS to work out
outsourcing planning, according to which part of work such as electrical assembly is outsourced after
price comparison and other procedures are fulfilled.
5. Sales model
Domestic sales by the Company are achieved mainly through direct sales, while overseas sales are
through both direct sales and distribution. The procedures of direct sales in the Company mainly
comprise order taking, production, shipment (including customs clearance for exports), on-site
installation and commissioning, equipment inspection for acceptance, quality assurance, etc.
Distribution experiences the following procedures. After production, the Company transports
equipment to the domestic address as stipulated in the contract. Then the distributor is tasked to finish
customs clearance for exports and arrange subsequent transportation. After the arrival of equipment at
the client site, the Company is responsible for on-site installation and commissioning, equipment
inspection for acceptance, and quality assurance (some distributors may offer assistance).
(iii) Industry landscape
1. Industrial development stage, basic features and major technical thresholds
1.1 PV equipment industry
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(1) The development of PV equipment industry in recent years
Countries across the world attach great importance to the development of the PV industry, which is
a top priority in the transformation of the global energy mix. China has led the world for many years in a
row in newly installed capacity of PV power. Data from China’s National Energy Administration show
that from January to June 2024, China’s newly installed capacity of PV increased by 30.7% year-on-year
to 102.48GW, and the figure in June alone amounted to 23.33GW, up by 35.6% year on year and 22.5%
month on month. Despite the increasing installed capacity, the PV industry currently faces a stark
challenge from excess capacity. The PV industry in the first half of 2024 presented a mixed picture.
While capacity in the PV sector continued to ratchet up, related products suffered price declines. Poly-Si
and wafer prices have shed over 40%, compared with a more than 15% decline in cell and module prices.
The value of output (excluding inverters) across the industry chain declined 36.5% from the previous
year while the export amount dropped 35.4% year on year. Still and all, the PV industry is expected to
have a promising future in the long run. With continuing technological advances and declining costs, PV
energy will be widely promoted and applied, and its leadership in clean energy solutions will be further
cemented.
A. Introduction to PV equipment industry
Increased installed capacity in the PV sector has led to production expansion across the industry
chain. Furthermore, continuous technological progress in all PV procedures accelerates production
capacity replacement. Market demand for equipment derives from the need for production expansion
and replacement. Since the PV industry faces overproduction for the time being, demand for PV
equipment is subdued in some way. While technological iteration can trigger new demand for equipment
in some procedures, demand for equipment has shrunk moderately, as equipment technological iteration
for the above equipment usually consumes a long time.
B. The effect of technological advances on the PV equipment industry
The development of China’s PV equipment industry is closely related to technological progress. To
make progress in the PV industry, it is always crucial to improve photoelectric conversion efficiency and
cut production costs. In 2024, LECO/LIF, which performs well in efficiency improvement, is universally
applied in the production of TOPCON; cell- and module-side SMBB/OBB have been further promoted
and used; a number of companies have rolled out BC cells over time; perovskite and perovskite
lamination technology have garnered growing attention. New technologies and processes can mature and
be popularized rapidly. A well-developed new technology or process can see increasing penetration in a
short time. Therefore, PV equipment suppliers need to launch new products in line with prevalent
technologies in the PV industry to make technological progress.
(2) Trends of technological innovation in the PV equipment industry
Improving photoelectric conversion efficiency and cutting production costs is not only a technical
priority, but also an approach to future development in the PV industry. Likewise, new products should
be launched on a continual basis in the PV equipment industry so as to cater to the need for
technological advances in the PV industry. In years to come, technological innovations in the PV
industry will be mainly hallmarked by the following trends:
A. N-type cells and corresponding equipment will draw market attention over time
According to the forecast of CPIA on changes in average conversion efficiency of cell technologies
of all kinds from 2021 to 2030, as PERC cells’ conversion efficiency continues to improve and draws
near to the theoretical limit, N-type cell technology, which excels in efficiency, will be prioritized
among other technologies. N-type cells mainly comprise TOPCon Mono-Si Cell, HJT Cell, and XBC
Cell.
B. Cell processing methods will co-exist, with PV cell efficiency equipment being the focus
Due to market requirements for cost reduction and efficiency improvement, new equipment aimed
at efficiency improvement will emerge as PV technology continues to evolve. Such equipment failed to
work under outdated technology, while with technological advances in the PV industry, such equipment
will start to play a role in helping N-type technology become more efficient, and demand for such
equipment in the industry will be boosted.
C. Busbar printing technology will continue to progress, and new printing technologies will
emerge
Currently, almost all metallic cell busbars are prepared through screen printing, which will remain
the mainstream technique in the years to come. Busbar manufacturers and equipment makers have begun
to develop other metallic printing technologies such as stencil printing, electroplating, laser transfer
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printing and inkjet printing. As cost reduction and efficiency improvement are pursued in the industry,
demand for more competitive types with high aspect ratios such as OBB will continue to pick up, and
new technologies to prepare cell busbars will emerge.
1.2 Lithium-ion battery/ESS Module/PACK line industry
Due to the accelerated transformation of renewable energy across the world, ESS policies, and a
better market environment, ESS market demand continues to rise globally. GGII forecasts that the
shipment of lithium-ion batteries for energy storage for 2024 is expected to surpass 240GWh, with
electrical energy storage to be the largest driver for 2024 growth. In the domestic market, the installed
capacity of wind and PV power sustained a high growth. According to data from the National Energy
Administration, China’s newly installed capacity of wind and PV power from January to June 2024
gained 26.5% year on year to 128.3 GW. As shown in the statistics by China Energy Storage Alliance
(CESA), China’s newly installed capacity of new types of energy storage from January to June 2024 hit
26.4 GWh, up by 48.5% year on year. In overseas markets, the USA accelerates the pace of energy
storage projects and sees robust growth in large-sized installations thanks to the improved economical
performance and higher demand for renewable energy. Europe is now one of the fastest-growing
markets as many countries have rolled out support policies and a few GWh-level large energy storage
projects are underway.
1.3 Domestic semiconductor assembly and testing equipment industry
According to the SEMI report, the back-end equipment sector is expected to recover in the second
half of 2024 following two years of contraction stemming from weak semiconductor demand. The sales
of semiconductor testing equipment in 2024 are estimated to increase by 7.4% to USD6.7 billion, while
the figure for assembly equipment is projected to rise by 10.0% to USD4.4 billion. Additionally,
back-end niche markets are expected to gain momentum in 2025 when the sales of testing equipment
and assembly equipment will surge by 30.3% and 34.9%, respectively. Growth in these niche markets
will be bolstered by the increasing complexity of semiconductor devices used for high-performance
computing as well as anticipated recovery in demand from end-use markets such as automobile, industry
and consumer electronics. The global sales of semiconductor manufacturing equipment in 2024 are
estimated to hit USD109 billion, edging up by 3.4% year on year. In 2024, the semiconductor assembly
equipment industry sees intensifying competition as the market size gets bigger. In the process, large
international companies, which now enjoy competitive advantages, will face rivalry from China’s local
players. China’s assembly equipment companies are still reliant on imports for manufacturing equipment
such as bonders, cutters, die bonders and AOI, so the imported equipment remains to be replaced by
domestic products.
2. Analysis of the Company’s industry position and its changes
1. Market position of the Company’s PV equipment products
The Company is a niche market leader in the PV equipment industry. Its major products in the
reporting period comprised the large, ultra-speed PV Cell MBB Soldering Stringers, the large,
ultra-speed Wafer Inspection System, the Screen Printing Line, the Laser-assisted Firing Furnace, the
BC Adhesive Printing Machine, the BC Printing Line, the PV Cell Light Induced Annealing Furnace,
the Low Oxygen Monocrystal Growth Furnace among other PV equipment. Among them, large,
ultra-speed PV Cell Soldering Stringer and Wafer Inspection System, two flagship products, boast
remarkable competitive advantages in separate niche markets, Low Oxygen Monocrystal Growth
Furnace begins to stand out in market competition, and Screen Printing Line secures an increasing
market share.
(1) Market position of the Company’s Soldering Stringer
Soldering stringer is an essential piece of equipment in the production of PV modules. With a
market share of over 60%, the Company is a market leader that has supplied soldering stringers for more
than 600 production bases across the world. All the global top ten suppliers of PV modules were the
Company’s clients in the reporting period.
(2) Market position of the Company’s Wafer Inspection System
To satisfy the varied needs of clients, the Company never ceases to pursue innovation in its Wafer
Inspection System, whose outstanding performance is recognized by clients across the world. All major
wafer manufacturers globally such as LONGi, Gokin Solar and HY Solar buy wafer inspection systems
from the Company.
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2. Market position of the Company’s Lithium-ion battery/ESS Module/PACK Line
The Company’s module/PACK line for lithium-ion battery energy storage has been bought by
CRRC Zhuzhou Institute, Hyper Strong, Highstar (US), etc.
3. Market position of the Company’s semiconductor assembly and testing equipment
As for Aluminum Wire Bonder and AOI, in the first half of 2024, the Company continued to
receive bulk orders, and saw a remarkable rise in orders and increasing repeated purchases.
3. Development of new technologies, sectors, business types, and models in the reporting period
and future trends
3.1 New technologies
Against the backdrop of accelerating advances in the PV cell technology, the Company prioritizes
the development of OBB and BC techniques for N-type cells as well as the laser-assisted firing
technique that can help improve conversion efficiency. The application of such techniques has paved a
solid technical foundation for the Company to develop new products.
3.2 Development of new sectors, business types and models, and future trends
After more than a decade of development, the PV industry has emerged as one of the few strategic
industries that boast international competitive advantages and end-to-end autonomous control, and will
hopefully lead the high-quality development drive. Furthermore, the sector plays an important role in
accelerating China’s energy transformation. China’s PV industry currently ranks among the top in the
world in terms of manufacturing scale, industrialization technology, application expansion, and building
of industrial systems.
As for product efficiency, the conversion efficiency of prevalent N-type cells has topped 25.0%.
With the reduction in production costs and yield enhancement in the future, the N-type cell technology
will be prioritized among other technologies, and efficiency will be improved rapidly.
In regard to technical routes, the technology aimed at minimizing/stopping the use of silver paste
will be further promoted, and the lab efficiency of perovskite/perovskite laminated cells will be
improved.
II. Core Technology and R&D Progress
1. Core technologies and their advanced nature, and changes in the reporting period
The Company, an R&D-driven company, has channeled enormous resources into R&D on a
continual basis to put in place an R&D system, which is composed of four core fundamental
technologies and eight core applied technologies. These technologies are applied to make several core
products in the Company’s main business, helping shape the system of its core products on PV wafers,
cells, and modules. To keep its core technologies advanced, the Company works unremittingly to follow
technological dynamics across such industry chains as PV, electrochemical energy storage, and
semiconductor assembly and testing, and focus on new technologies in downstream application
industries. After years of continuous R&D input and technology accumulation, the Company has
established core technology systems on series welding for PV modules, laser cutting, PV cell processing,
precision inspection for wafers, Mono-Si ingot growth, lithium-ion battery/ESS module assembly, visual
inspection for cell, semi-conductor wire bonding technology, etc. The Company’s core technologies are
set out in the following table:
Core fundamental technologies applied Application sectors Sources of
core
technologies
Low-stress high-speed closed-loop infrared welding self-developed
technology
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Precision liquid spraying self-developed
Precision mechanical design technology for self-developed
intelligent equipment
Advanced PV cell Multi-axis high-speed motion control technology PV module self-developed
soldering technologies equipment
Intelligent inspection and positioning technology self-developed
for machine vision that applies to specified targets
The technology of high-speed transfer by robots self-developed
that applies to special materials
Industrial sensor application technology for self-developed
specified scenarios
Precision laser welding technology for PV modules self-developed
Laser transfer and coding technology for PV glass self-developed
surface
Self-adaptive resonance high-frequency induction self-developed
welding technology
Micron-level high-precision laser-cutting self-developed
technology
Precision liquid spraying technology self-developed
Low-stress high-speed closed-loop infrared welding self-developed
technology
Negative spacing soldering PV module
Precision mechanical design technology for self-developed
technologies lamination
intelligent equipment
equipment
Multi-axis high-speed motion control technology self-developed
Intelligent inspection and positioning technology self-developed
for machine vision that applies to specified targets
The technology of high-speed transfer by robots self-developed
that applies to special materials
Industrial sensor application technology for self-developed
specified scenarios
Industrial software design technology for intelligent self-developed
equipment operation surveillance
High-speed and multi-protocol industrial self-developed
communication application technology
Micron-level high-precision laser-cutting self-developed
technology
Precision mechanical design technology for self-developed
intelligent equipment
Multiaxis high-speed motion control technology self-developed
PV cell laser cutting
technology Intelligent inspection and positioning technology self-developed
for machine vision that applies to specified targets
Industrial sensor application technology for self-developed
specified scenarios
The technology of precision splitting with self-developed
laser-induced thermal stress
Precision mechanical design technology for self-developed
PV cell equipment
intelligent equipment
Multi-axis high-speed motion control technology self-developed
Industrial sensor application technology for self-developed
specified scenarios
Industrial software design technology for intelligent self-developed
Advanced PV cell
equipment operation surveillance
processing technologies
Low-invasive or non-destructive laser scoring self-developed
technology
Low-invasive or non-destructive laser doping self-developed
technology
High-precision dual galvanometer scanning control self-developed
technology
Mono-Si ingot growth Image analysis and processing technology for PV wafer self-developed
technologies through CZ machine visual equipment
method Mono-Si growth technology under PID temperature self-developed
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control
Thermal analysis technology for fluids
Industrial software design for intelligent equipment self-developed
operation surveillance
Intelligent feeding technology self-developed
High-speed precision optical and electrical self-developed
PV wafer precision inspection technology PV wafer
inspection technology equipment
High-speed flying laser coding technology self-developed
Multiple self-adaptive precision laser welding self-developed
technology
Dual-waveform multi-point high-speed resistance self-developed
welding technology
High-speed precision optical and electrical self-developed
inspection technology
Precision mechanical design technology for self-developed
intelligent equipment
Multi-axis high-speed motion control technology self-developed
Lithium-ion battery/ESS
module Intelligent inspection and positioning technology Lithium-ion self-developed
for machine vision that applies to specified targets battery/ESS
The technology of high-speed transfer by robots equipment self-developed
that applies to special materials
Industrial sensor application technology for self-developed
specified scenarios
Industrial software design technology for intelligent self-developed
equipment operation surveillance
High-speed and multi-protocol industrial self-developed
communication application technology
Li-ion battery appearance High-speed precision optical and electrical self-developed
inspection technologies inspection technology
High-speed and high-frequency ultrasonic welding self-developed
technology
Precision electrical inspection technology for self-developed
complicated industrial environment
Precision mechanical design technology for self-developed
intelligent equipment
Semi-conductor wire Semiconductor
Multiaxis high-speed motion control technology self-developed
bonding technologies equipment
Intelligent inspection and positioning technology self-developed
for machine vision that applies to specified targets
Industrial sensor application technology for self-developed
specified scenarios
Industrial software design technology for intelligent self-developed
equipment operation surveillance
The Company continues to develop more advanced and newer technologies on the back of the above
technologies, has high technical thresholds, and maintains its technical strength. In addition, these core
technologies didn’t experience unfavorable changes in the reporting period.
Whether the Company has received any national science and technology awards?
Applicable √ N/A
Whether the Company has been rated as a national-level Little Giant Enterprise of SRDI or an enterprise
leading an individual field of the manufacturing industry?
Applicable √ N/A
2. R&D achievements in the reporting period
In the first half of 2024, the Company obtained 193 pieces of intellectual property including 100
invention patents, 74 utility model patents, and 11 software copyrights. By June 30, 2024, the Company
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has been granted a cumulative total of 1,808 pieces of intellectual property including 211 invention
patents, 1,296 utility model patents, 117 software copyrights, and 3 industrial design patents.
Statistics of intellectual property obtained in the reporting period
Additions in the reporting period Cumulative total
Number of Number of Number of Number of
applications ratifications applications ratifications
Invention patents 65 100 611 211
PCT international
2 0 10 0
stage
Utility model
219 74 1,597 1,296
patents
Industrial design
1 0 9 3
patents
Software
13 11 120 117
copyrights
Others 13 8 194 181
Total 313 193 2,541 1,808
3. Statistics of R&D inputs
Unit: Yuan
Amount in the reporting Amount in the same Rate of change (%)
period period of the
previous year
R&D expenses 178,114,245.75 130,002,217.29 37.01
Capitalized R&D input 0 0 0
Total R&D inputs 178,114,245.75 130,002,217.29 37.01
Ratio of total R&D input to Down by 1.13
4.03% 5.16%
operating income (%) percentage points
Share of capitalized R&D 0 0 0
input (%)
Any reason behind a drastic change in total R&D inputs compared with the previous year?
√ Applicable N/A
The Company’s R&D input saw a year-on-year increase of 37.01% in the first half of 2024, mainly
attributable to the Company’s decision to step up R&D input and introduce high-level R&D personnel,
the increase in the number of R&D personnel from 777 to 922, and the rise in the remuneration of R&D
personnel from RMB84.15 million to RMB125.88 million, gaining RMB41.73 million or up by 49.58%
from the previous year.
Any reason behind a drastic change in the share of capitalized R&D input and justification?
Applicable √ N/A
4. Details of projects under ongoing R&D
√ Applicable N/A
Unit: million Yuan
Est. Invest Cumul Progres Prospectiv
Technological
No. Project total ment ative s or Intended targets e
competence
inves in the invest outcom applicatio
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tmen reporti ment es n
t ng amoun
period t
1 Large 3.30 0.33 0.33 Prototy 1. Full cells 1. Full cells PV
cell pe production production module
Solderin being capacity: 10,800 capacity: >10,800 soldering
g on trial half-cut cells/hour half-cut cells/hour
Stringer 2. Compatible 2. Applicable cells:
cells: PERC, PERC, TOPCon
TOPCon and HJT and HJT
3. Cell spec: 158 – 3. Cell spec: 158 –
230mm, 230mm,
rectangular rectangular
4. Number of 4. Number of
busbars: 6 – 24BB busbars: 6 – 24BB
2 PV Back 24.6 3.54 18.99 Prototy 1. Full cells 1. Full cells PV
Contact 2 pe production production module
Cell being capacity: 7,200 full capacity: 6500 full soldering
Stringer on trial cells/hour/dual-line cells/hour/dual-line
2. Compatible 2. Compatible
cells: P-type and cells: P-type and
N-type BC cells N-type BC cells
3. Crack ratio: ≤ 3. Crack ratio: ≤
0.1% 4. Cell spec: 0.1%
163 – 230mm, 4. Cell spec: 163 –
compatible with 230mm,
rectangular cells compatible with
5. Number of rectangular cells
busbars: 6 – 24BB 5. Number of
busbars: 6 – 24BB
3 Automat 3.52 0.65 0.65 Mass 1. Repair tempo≤ 1. Repair tempo ≤ PV string
ic PV product 40S/piece 2. Repair 40S/piece 2. Repair repair
String ion yield≥95% yield≥95%
Repair 3. Compatible cell 3. Compatible cell
Machine spec: 156 – 230mm spec: 156 – 230mm
4. Compatible cell 4. Compatible cell
thickness≥110μm thickness≥110μm
4 Cell 63.1 6.20 35.28 Stage 1. CT≤0.80s 1. CT≤0.80s Printing
Line 9 of 2. Printing 2. Printing equipment
Equipme verifica accuracy: ≤ ± accuracy: ≤ ± 6um for cells of
nt tion 6um 3. Maximum all kinds
3. Maximum printing speed: ≤
printing speed: ≤ 600mm/s
700mm/s 4. Crack ratio:
4. Crack ratio: Grade A Mono-Si
Grade A Mono-Si ≤0.1%
≤0.05%
5 Cell 27.8 4.64 5.46 Stage 1. CT≤0.8s 1. CT≤0.85S Printing
Screen 5 of 2. Crack ratio ≤ 2. Crack ratio ≤ and
Printing verifica 0.08% 0.1% adhesive
Line tion 3. Uptime>98% 3. Uptime>98% printing
Equipme scenarios
nt for cells of
all kinds
6 Cell 17.8 2.14 13.44 Applic 1. Production 1. Production Metalizati
Annealin 3 ation on and
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g expansi capacity: ≥ capacity: ≥ efficiency
Equipme on 9600Pcs/h@182 2. 9200Pcs/h@182 2. increase
nt Uptime≥99% Uptime≥99% for N-type
3. Crack ratio ≤ 3. Crack ratio ≤ cells
0.01%@182 4. 0.01%@182 4.
Efficiency gain ≥ Efficiency gain ≥
0.2% 0.2%
7 Metalize 9.42 4.39 7.81 Stage 1. CT≤0.75s 1. CT≤0.75s Metalizati
d and of 2. Efficiency gain 2. Efficiency gain on and
Advance verifica ≥0.35% ≥0.3% efficiency
d Laser tion increase
Processi for N-type
ng cells
Equipme
nt
8 Wire 14.7 3.10 3.88 Stage 1. UPH: 11K 1. UPH: ≥11K Semicond
Bonder 2 of 2. Wire bonding 2. Bonding area: uctor
develo area: 80*100mm 80*100mm bonding
pment 3. Wire bonding 3. Bonding
accuracy: material: 4 – 20mil
3μm@3sigma aluminum wire,
4. Wire bonding 80*10mil
material: 4 – 20mil aluminum tape and
aluminum wire, 5 – 20mil copper
80*10mil wire
aluminum tape, and
5 – 20mil copper
wire
9 Semicon 29.4 0.99 4.03 Stage 1. UPH:16k 1. UPH:14k Semicond
ductor 9 of 2. Wafer: 8/12 inch 2. Wafer: 8/12 inch uctor
Die develo 3. Chip size: 3. Chip size: assembly
Bonder pment 0.5*0.5mm-10*10 1*1mm-10*10mm
mm
10 Semicon 17.5 1.97 7.06 Mass 1. UPH:2D ≥ 1. UPH:2D ≥ Semicond
ductor 4 product 2000mm/S3D ≥ 2000mm/S3D ≥ uctor
Inspectio ion 500mm/S 500mm/S assembly
n System 2. Items for 2. Items for inspection
inspection: die inspection: die
position, die position, die
appearance, solder appearance, solder
defects, boding defects, boding
wire defects and wire defects and
substrate defects substrate defects
3. Inspection 3. Inspection
precision: precision:
±5μm@3σ ±5μm@3σ
11 Semicon 14.3 3.09 6.70 Prototy 1. Processed wafer 1. Processed wafer Semicond
ductor 6 pe size 310mmm size 300mmm uctor
Cutting being round shaped round shaped cutting
Machine on trial 2. Y-axis visual 2. Y-axis visual
accuracy≤1um accuracy≤1um
3. X-axis 3. X-axis
straightness straightness
accuracy≤3um accuracy≤3um
4. Y-axis accuracy 4. Y-axis accuracy
≤2um ≤2um
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5. Compatible with 5. Compatible with
12-inch and smaller 12-inch and smaller
wafers wafers
12 Semicon 47.5 9.19 15.60 Prototy 1. Removal after 1. Removal after Final
ductor 0 pe processing: 300 – processing: 300 – polishing
CMP develo 500nm 500nm for
Equipme pment 2. Variation in total 2. Variation in total 12-inch
nt thickness: -25 – thickness: -25 – silicon
+40nm +40nm substrates
3. Site flatness: -10 3. Site flatness: -10
– +15nm – +15nm
4. Edge crimpness: 4. Edge crimpness:
-100 – +10 -100 – +10
5. 5. Nanotopography
Nanotopography(0. (0.5×0.5):≤4
5×0.5):≤4 6. Metal residue:
6. Metal residue: <1E9
<1E9
13 Cutting 50.0 7.41 22.67 Stage 1. Polar piece 1. Polar piece Laminatio
and 0 of processing capacity processing capacity n for
Folding verifica ≤0.15s/p ≤0.16s/p positive
All-in-o tion 2. Central 2. Central and
ne alignment metrics alignment metrics negative
Machine for laminated pole for laminated pole polar
pieces≤±0.5mm pieces≤±0.5mm pieces
14 Monocry 74.4 8.70 34.75 Applic 1. Average 1. Average PV
stal 8 ation isometric pulling isometric pulling Mono-Si
Growth expansi rate: 12-inch rod ≥ rate: 12-inch rod ≥ rod
Furnace on 1.7mm/min, 1.6mm/min,
10-inch rod ≥ 10-inch rod ≥
2.0mm/min 1.9mm/min
2. Compatible with 2. Compatible with
hot zone 32 – 40 hot zone 32 – 40
inches inches
3. The diameter of 3. The diameter of
compatible rods compatible rods
can be extended to can be extended to
350mm 350mm
4. Rod diameter 4. Rod diameter
fluctuation range: fluctuation range:
±0.5mm ±0.5mm
5. Oxygen content 5. Oxygen content
reduction≤6ppm reduction≤7ppm
15 Continu 6.42 0.29 0.47 Stage 1. Loading volume 1. Loading volume Real time
ous of 800 kg for standard 600 kg for loading in
Loder develo types, customized types the
pment customization 2. One-to-one process of
acceptable setting with crystal
2. Loading speed: Mono-Si Furnace, growth
350g/min, automatic loading through
±10g/min can be achieved in Mono-Si
3. One-to-one the process of Furnace
setting with crystal growth
Mono-Si Furnace, 3. Loading of
automatic loading granular silicon can
can be achieved in be met
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the process of
crystal growth
4. Loading of
granular silicon can
be met
16 Semicon 27.3 1.19 6.23 Stage Silicon carbide Silicon carbide Silicon
ductor 2 of crystal growth: crystal growth: carbide
Mono-Si develo 1. Silicon carbide 1. Silicon carbide crystal
Furnace pment growth size: 8 inch growth size: 6 inch growth for
2. Pulling range ≥ 2. Pulling range ≥ the third
350mm 350mm generation
3. Required pulling 3. Required pulling of
speed: speed: semicondu
0.01-30mm/h 0.01-20mm/h ctors
Semiconductor Semiconductor
crystal growth: crystal growth:
4. Magnetically 4. Magnetically
pulled rod: pulled rod:
Φ360-Φ600mm, Φ360-Φ600mm,
length≥3,300mm length≥3,000mm
Tot / 431. 57.82 183,36 / / / /
al 55
5. Details of R&D personnel
Unit: million Yuan, Currency: RMB
Basic information
Amount in the current Amount in the same
period period last year
Number of R&D personnel in the Company 922 777
Share of R&D personnel in total headcount (%) 18.85 17.17
Total remuneration of R&D personnel 125.88 84.15
Average remuneration of R&D personnel 0.14 0.12
Educational background
Degrees Number Percentage (%)
Doctor’s degree 6 0.65%
Master’s degree 170 18.44%
Bachelor’s degree 576 62.47%
Junior college education 167 18.11%
Below junior college education (excluding junior 3 0.33%
college education)
Total 922 100.00%
Age composition
Age range Number Percentage (%)
Aged below 30 (excluding 30) 344 37.31%
Aged 30-40 (including 30, excluding 40) 526 57.05%
Aged 40-50 (including 40, excluding 50) 40 4.34%
Aged 50-60 (including 50, excluding 60) 8 0.87%
Aged over 60 4 0.43%
Total 922 100.00%
6. Other notes
Applicable √ N/A
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III. Analysis of Core Competitiveness in the Reporting Period
(i) Analysis of core competitiveness
√ Applicable N/A
1.Technological strength
(1) The Company has scored abundant technological achievements
The Company, which is a new and high-tech enterprise specializing in R&D, production, and sales
of high-end intelligent equipment and highly values R&D input and technological innovation, has set up
a large R&D team composed of experienced personnel and reaped numerous technological achievements
with proprietary intellectual property rights. By June 30, 2024, the Company had 922 R&D staff
members, representing 18.85% of the total number of employees. By June 30, 2024, the Company has
been granted a cumulative total of 1,808 pieces of intellectual property including 211 invention patents,
1,296 utility model patents, 117 software copyrights, and 3 industrial design patents.
(2) The Company is technically competent to have existing products quickly iterated and launch
new products in a forward-looking manner
Pursuing “high production capacity, high accuracy, high compatibility, and high stability” during
its R&D and leveraging its profound technical accumulation, the Company has achieved quick iteration
and forward-looking planning for technologies by making prompt responses to realistic and potential
needs from clients and continuing with intensive R&D input.
Firstly, the Company has upgraded its existing products to improve production performance.
Beyond conventional types, its Soldering Stringer, Wafer Inspection System, Low Oxygen Mono-Si
Furnace, etc. have all seen a substantial improvement in performance, accuracy, and efficiency.
Secondly, the Company has worked hard to develop new equipment aimed at cost reduction and
efficiency increase. In the first half of this year, the Company launched OBB Soldering Stringer, which
consumes 10% less silver paste, thus providing a new option for clients to cut costs and improve
efficiency.
Thirdly, the Company has rolled out more core equipment for semiconductor assembly and testing
to meet client needs for full lines. The Company developed the 12-inch Wafer Laser Cutter and the
12-inch Epoxy Die Bonder in 2023 to broaden the range of its assembly and testing products and meet
client demand for full assembly and testing lines.
Through quick iteration of existing products and forward-looking planning for new products, the
Company has not only become more competitive in the market but also helped its clients create added
value, thus facilitating technological advances in the downstream industry.
2. Product strength
(1) The Company’s products excel in performance
The Company continues its efforts to develop cutting-edge technologies, prioritizes high output,
high yield, application of intelligent technology and compatibility to pursue innovation in a complete
range of products, and enjoys overall technical leadership in the industry. The Company’s products are
characterized by high production capacity per machine, high yield, and more intelligent operation. The
Company’s latest MBB Soldering Stringer is consistently able to process 10,800 half-cut wafers/h
(calculated in accordance with welding 210-inch wafers after cut into halves). Furthermore, it has rolled
out products that integrate cutting, layup, and stacking in order to accomplish high yield apart from high
production capacity. With a capacity of 18,000 pieces/h (calculated in accordance with 182 mm wafers),
the Wafer Inspection System is provided with the smart ability to analyze in a systemic way shutdown
time, maldistribution, downtime, etc. The Low Oxygen Mono-Si Furnace, whose pulling rate has hit
1.6mm/min (calculated based on 12-inch rods), can attain oxygen content at 6-7 ppm to improve the
quality of crystals and enable one-click crystal growth. Boasting a capacity of 15-20 PPM, the ESS
Module/PACK Line prides itself on an automation rate of 95%. The Company’s products, which feature
stable performance and high yield, can meet client requirements for high production capacity and quality,
and help its clients to reduce production costs.
(2) The Company’s products perform well in compatibility and allow quick switchover.
Taking into full consideration trends in technological development and special application
scenarios that clients may face, the Company’s product designs are very flexible and compatible,
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2024 Interim Report
allowing quick switchover between technologies of different kinds. Meanwhile, innovative studies of the
conformity of OBB technology are made on the existing technical platforms. The Wafer Inspection
System, whose inspection modules can be assembled in different ways depending on what technology a
client uses, can apply to both full and half-cut waders through testing, so as to satisfy some special client
requirements. The Company’s standard Module PACK Line can realize rapid changeover within two
hours, thereby contributing to production ramp-up and efficiency improvement in the ESS sector.
3. Strength in comprehensive global services
Machines manufactured by the Company are key assets that its clients rely on in production and
operation. If these machines break down, clients may suffer halts across all production lines. How they
perform has significant effects on client production and operation. Upgrades in clients’ products are also
significantly subject to fast-paced technological iteration and the rate of applying new crafts, materials,
and technologies in the PV sector. Therefore, clients mainly consider service capability, transformation
ability, and response time when choosing a supplier.
The Company never ceases to improve its sales services for old clients. Aimed at serving more than
600 production bases its clients have located in over 40 countries and regions, the Company sends
engineers to client sites for equipment installation and commissioning. Given varied client situations, the
Company also arranges for engineers to offer technical services such as remote instruction, on-site
inspection, operation and maintenance, and professional training. Furthermore, the Company also
provides equipment transformation services to help its clients to adapt to technological progress. In this
connection, the Company has built a highly skilled team of engineers, the number of whom by June 30,
2024 reached 1,476, representing 30% of its headcount.
In the process of providing comprehensive services to clients, the Company can not only make
clients more engaged and satisfied, but also acquaint itself with market demand and technical trends to
spur product R&D and upgrades.
4. Strength in client relations
The Company has established long-term partnerships with domestically and internationally known
PV companies including Jinko Solar, Tongwei Co., Ltd., TrinaSolar, LONGi, JA Solar, Hanwha Group,
POLY-GCL, Canadian Solar Inc., DAS Solar, ADANI Group and Silfab Solar.
Sound partnerships have been built between the Company and famous energy storage players such
as CRRC Zhuzhou Institute, Hyper Strong, and High-Star Corporation.
As its semiconductor equipment continues to improve, the Company has beefed up efforts to
expand business with semiconductor clients. To explore the semiconductor assembly equipment market,
the Company cooperated with small clients prior to receiving bulk orders from medium and large clients.
In the first half of 2024, the Company secured orders from and established friendly cooperation with
IGBT and AOI clients such as Ncepower, FM Superchip, and Chippacking.
(ii) Impact analysis and responses: events undermining the Company’s core competitiveness in
the reporting period
Applicable √ N/A
IV. Operational Discussion and Analysis
(i) Business performance in the reporting period:
In the first half of 2024, the Company’s core products, including the large, ultra-speed MBB
Soldering Stringer, the Wafer Inspection System, the Screen Printing Line, the BC Adhesive Printing
Machine, and the BC Printing Line among other PV equipment, won high recognition from clients; the
ESS Module PACK Line received a continuous stream of orders; the Semiconductor Wire Bonder and
the AOI Machine saw a sharp rise in the order quantity, and the first batch of orders for Semiconductor
Cutting Machine was taken.
(ii) Operating results in the reporting period:
1. Main operating results
In the reporting period, the Company generated RMB4,417.70 million in operating income, surging
75.48% from the previous year, RMB769.08 million in net profit attributable to shareholders of the
parent company, up by 47.19% year on year, with the earnings per share amounting to RMB2.45, a
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2024 Interim Report
year-on-year rise of 47.59%. By the end of the reporting period, the Company’s total assets were
RMB14,947.29 million declining by 4.29% from the beginning of the year, while the equity attributable
to shareholders of the parent company gained 10.37% from the beginning of the year to RMB4,044.28
million.
Expenses incurred by the Company in the reporting period increased. To be specific, administrative
expenses amounted to RMB157.71 million, increasing by RMB48.23 million or 44.05% year on year;
R&D expenses reached RMB178.11 million, adding by RMB48.11 million or 37.01% year on year;
sales expenses declined by RMB5.93 million or 7.02% year on year to RMB78.52 million; and financial
expenses surged by RMB7.10 million or 135.04% year on year to RMB12.36 million.
2. Major business performance
In the reporting period, all business areas of the Company sustained proper growth. As its products
find enormous favor with clients, the Company signed RMB6.285 billion (tax inclusive) worth of new
orders from January to June 2024, rising by 8.74% year on year. As of June 30, 2024, the Company’s
orders in hand were worth RMB14.341 billion (tax inclusive), up by 41.11% from the same period of the
previous year.
3. Intensified R&D efforts strengthens core competitiveness
In the reporting period, the Company spent RMB178.11 million on R&D, increasing by RMB48.11
million or 37.01% from the same period last year. With a focus on client requirements, the Company
worked harder on core equipment in the PV industry chain to widen product categories, and took full
advantage of core technological R&D platforms to integrate resources and improve R&D efficiency. The
Company coordinated R&D efforts across both the upstream and downstream sectors to deepen
cooperation on the industry chain. As a consequence, its core competitiveness continued to improve.
In the reporting period, the Company scored plentiful R&D achievements. As of June 30, 2024, the
Company had 16 ongoing projects under R&D. The Company has become more competitive in wafer
fabrication equipment, thanks to the outstanding client-side performance of its Low oxygen Mono-Si
Furnace. Semiconductor Bonder and AOI Machine were upgraded continuously in performance through
client-side verifiable and trial tests. The Company’s Wire Bonder and AOI Machine have continued to
receive bulk orders from clients, with a sharp rise in orders in the first half of 2024.
Major operational changes and events that have significant effects on operating results in the
reporting period or are expected to exert significant effects in the future
Applicable √ N/A
V. Risk Factors
√ Applicable N/A
(i) Risks for core competitiveness
1. Technical risks
(1) Risks of misalignment between R&D planning and downstream industrial trends
The Company’s downstream sectors are experiencing rapid technological iteration. Therefore, prior
to R&D and technical reserve, the Company needs to channel enormous resources towards technology
and market studies targeting the downstream sectors. In case of misalignment between R&D planning
and development trends in the downstream sectors, the Company may waste R&D resources and miss
opportunities for development, or even face adverse circumstances such as loss of its leadership in niche
markets. All these consequences could undermine the Company’s competitiveness and sustained
profitability.
(2) Risks of project R&D failure or unsuccessful commercialization of R&D results
The Company spends heavily on R&D, the expenses of which from January to June 2024 amounted
to RMB178.11 million, representing 4.03% of the operating income over the same period. The above
R&D expenses contributed significantly to improving the performance of existing products and
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developing new products, R&D failures and unsuccessful commercialization of R&D results also took
place.
The Company will continue to spend generously on R&D of innovative technologies. If the
Company experiences a lot of R&D failures or unsuccessful commercialization of R&D achievements
resulting from high technical thresholds, technical economy, demand shift, or other factors, the
Company may not only see more period expenses and report weaker profitability, but also suffer adverse
effects in varying degrees on its prospects.
(3) Risks of core personnel turnover and loss of technical confidentiality
The Company, which was rated as a national new and high-tech enterprise as early as 2015, has
accumulated a lot of technologies. The accumulation is critical for the Company to sustain its operations.
Core technologies of the Company are primarily developed by its R&D team, in which key technical
personnel play a pivotal role. In case of core personnel turnover or loss of technical confidentiality, the
operating results of the Company may be subject to adverse effects.
(4) Risks of technical infringements
Through product R&D efforts, the Company has accumulated some core technologies that have
been successfully applied. As of June 30, 2024, the Company has been granted a cumulative total of
1,808 pieces of intellectual property including 211 invention patents, 1,296 utility model patents, 117
software copyrights, and 3 industrial design patents.
In the event that the above patents and other intellectual property rights held by the Company are
deemed void, or competent authorities declare the Company infringes on patents or technologies, or
other companies file lawsuits on the intellectual property against the Company as a business strategy, the
Company may not only involve itself in litigation or disputes but also suffer adverse effects on its
operating results due to affected product sales.
(ii) Operating risks
(1) Risks of unfavorable changes in major clients
The Company derives the lion’s share of income from the production of wafers, cells, and modules
in the PV industry chain. These niche markets are highly concentrated. Likewise, the Company’s sales
revenue was also highly concentrated from January to June 2024, with the top five clients accounting for
46.37% of the total income. Due to lower profitability across the main PV industry chain, some clients
of the Company experienced adverse changes in operating performance and financial position and
became loss-making from January to June this year. If the PV industry fails to recover in the short term,
some clients may go bankrupt. Such circumstances may adversely impact the Company’s operating
results.
(2) Risks of fluctuations in gross margin of products
Over recent years, gross margins of the Company’s PV equipment and lithium-ion battery
equipment have been fluctuating in some way due to market competition, industrial policies, technical
level, etc. Notably, against the backdrop of lower profitability across the main PV industry chain, it is
not possible to exclude such circumstances where major products of the Company experience cutting
prices, rising costs, and declining gross margin due to price negotiations with downstream clients,
industry competition and adverse changes in support policies, thus causing adverse effects to the
Company’s results.
(3) Risks of managerial decision-making mistakes
Managerial decision-making in the Company is susceptible to trends in technological development,
policy changes, market competition environment, macroeconomic fluctuations, etc. As the Company’s
products are primarily applied in emerging industries such as PV and NEVs, where industry
development changes rapidly because of instability, it is difficult for the Company to make managerial
decisions.
By cooperating with other firms through strategic investment and joint R&D, the Company can
swiftly seize market opportunities to bolster its core competitiveness and sustain its competitiveness in
the mid to long term. However, such corporate behaviors as strategic investment and joint R&D require
better managerial decision-making.
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Therefore, while the Company has taken many measures to make decisions in a well-conceived
manner, it cannot exclude the possibility of mistakes in managerial decision-making, which may cause
significant adverse effects.
(4) Risks of contract compliance and execution
As of June 30, 2024, the Company had RMB14.341 (tax inclusive) worth of orders in hand. In
cases of slower-than-expected contract execution, or even suspension of contract performance or
contract cancellation due to fluctuations in the downstream sectors, significant unfavorable operational
changes of major clients who contribute orders in hand, etc., the Company’s business reserves and
operating results may be exposed to adverse effects.
(iii) Financial risks
(1) Risks of inventory price declines
The Company has a large sum of inventory, whose book value by the end of June 2024 amounted
to RMB7,340.25 million. Products shipped in transit occupied a large proportion. By the end of the
reporting period, the book value of products shipped in transit reached RMB6,147.07 million,
representing 83.74% of the total inventory, mainly attributable to the long period of time required for
installation, commissioning, and trial operation of the Company’s equipment products from delivery to
client acceptance. While the Company has made provisions for the drop in inventory prices in
accordance with accounting policies and reality, the possibility of failed sales of inventories or a sharp
decline in inventory prices due to market changes or other unforeseeable reasons cannot be excluded,
thus exposing the Company to risks from a drop in inventory value.
(2) Risks of a lengthy cycle from inventory delivery to client acceptance
In the first half of 2024, the Company primarily derived income from sales of equipment products.
Such products involve a long period of time from delivery to client acceptance. If clients don’t accept
products shipped by the Company in a timely manner, income volatility of the Company will rise
because of affected confirmation of sales income, and inventories will occupy funds longer and
collection of payments for products will be postponed, thus mounting liquidity risks.
(3) Risks of collection of receivables
The Company has a large sum of receivables, the book value of which by the end of the reporting
period amounted to RMB2,197.03 million, comprising 14.70% of the total assets. In the reporting period,
the failure of some downstream clients to pay for products according to contractual terms led to a few
overdue receivables. As an increasing number of companies in the PV sector suffer from losses, and
operations in corporate clients worsen, the Company is likely to see a further rise in receivables and
overdue receivables. If receivables cannot be collected timely in full or even none can be reclaimed, the
Company will face adverse effects in terms of operating results and cash flows.
(4) Risks of the Company deriving the lion’s share of income from PV equipment products
In the reporting period, PV equipment products contributed more than 90% of the Company’s
operating income. PV companies were hard hit by severe losses in the reporting period. If this situation
persists or worsens, the Company’s results may be subject to significant adverse effects.
(5) Risks of preferential tax
Equipment made by the Company is operated or controlled by independently developed or
designed software. As of June 30, 2024, the Company has obtained 117 copyrights of computer software
and launched 63 software products in regard to these pieces of software. In accordance with the Notice
of the Ministry of Finance and the State Administration of Taxation on the VAT Policies for Software
Products (Finance No.100 [2011]) and other documents, independently developed operating system
software, that is installed in the Company’s equipment for sale, is entitled to enjoy the real-time VAT
rebate policy as an embedded software product.
The Company was rated as a new and high-tech enterprise as early as 2015 and retained the title
through the re-inspection in 2021 (certificate number: GR202132005383). As stipulated in the
Administrative Measures for the Identification of New and High-tech Enterprises, the certificate is valid
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2024 Interim Report
for three years from the date of issuing, and certificate holders should file an application for
re-inspection before the expiry date to have the certificate extended by another term of three years once
passing the re-inspection. In accordance with preferential tax policies for new and high-tech enterprises,
the above qualified companies can enjoy preferential business income tax at the rate of 15% in specified
periods.
If the above preferential tax policies are abolished or become less favorable, or the Company’s title
as a new and high-tech enterprise experiences significant unwelcome changes, the Company’s operating
results will suffer adverse effects.
(6) Risks of mounting costs
The Company is likely to face increasing raw material and transportation costs. Over recent years,
the cost of labor in China has climbed at a fast pace over these years, due to economic growth and
demographic shifts. To cut production costs, clients in the downstream sectors require equipment
manufacturers to improve product performance and capacity. This may drive up the per-unit cost that
equipment manufacturers have to bear. If the above costs rise, the Company may be exposed to adverse
effects in terms of product cost, gross margin, and operating results.
(iv) Industry risks
1. Risks of weaker market demand
In the reporting period, the Company’s clients mostly engage in PV and energy storage battery
sectors. If industrial policies and international trade policies experience drastic unfavorable changes,
sectors such as PV and NEVs may be exposed to adverse effects, then the Company’s sales and
operating results will be affected negatively. Therefore, in the event of unfavorable fluctuations such as
sliding demand in these sectors, particularly the PV industry, production and operations in the Company
will face significant adverse effects.
2. Risks of drastic changes in key technologies or technical routes in the downstream sectors
The Company specializes in the R&D, design, production, and sales of high-end intelligent
equipment that mainly targets such downstream sectors as crystalline silicon PV, electrochemical energy
storage, and semiconductor assembling and testing. Key technologies or technical routes in these
downstream sectors are prone to drastic changes.
In the event of drastic changes in key technologies or technical routes in the downstream sectors,
supply-demand relations for current products are likely to change, thus affecting or radically changing
production and operations in the Company.
3. Risks of fast-growing production capacity in the downstream sectors
The PV industry, a main downstream sector for the Company, has seen rapid capacity ramp-up in
recent years, leading to periodic overcapacity and low capacity utilization. If the PV industrial
technologies stagnate or if new demands driven by technological advances and the need to upgrade
existing capacity shrink, the Company will be exposed to significant adverse effects in regard to product
market size and sales.
(v) Macro environmental risks
1. Risks of cyclical fluctuations in the macroeconomy
The Company falls into the special-purpose equipment manufacturing sector, in which the interplay
between supply and demand is closely related to fixed asset investment scale and growth in the
downstream sectors. Susceptible to changes in national macro economy and industrial policies, demand
for fixed asset investment in the downstream sectors shows a moderate level of volatility. This may
affect demand for the core products of the Company.
2. Risks of exchange rate fluctuations
The Company not only engages in product export, but also buys raw materials and parts from
overseas. Such types of business are mainly priced and settled in USD. As various factors may affect the
RMB exchange rate, its fluctuations face uncertainties in some way. If exchange rates experience
unwelcome changes, the Company’s exports and operating results will be affected negatively.
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2024 Interim Report
3. Risks of force majeure
Natural calamities such as earthquakes, typhoons, and tsunamis as well as public emergency events
can cause damage to the Company’s property and casualties and disrupt normal production and
operations, thus leading to direct economic loss or declines in profitability.
VI. Business Performance in the Reporting Period
Please refer to “I. Introduction to the Company’s industry and main business in the reporting period”
in Section III above.
(i) Analysis of main business
1. Analysis of main items in financial statements
Unit: million Yuan, Currency: RMB
Item Amount in the
Amount in the current
same period last Change (%)
period
year
Operating income 4,417,698,117.26 2,517,486,369.86 75.48
Operating costs 2,924,028,824.33 1,595,013,807.86 83.32
Selling expenses 78,521,303.44 84,452,859.24 -7.02
Administrative expenses 157,714,200.42 109,488,543.37 44.05
Financial expenses 12,363,463.19 5,260,176.11 135.04
R&D expenses 178,114,245.75 130,002,217.29 37.01
Net cash flows from operating
-9,711,098.51 268,896,252.11 N/A
activities
Net cash flows from investment
375,734,820.11 136,359,005.73 175.55
activities
Net cash flows from financing
-216,097,289.58 -443,974,089.04 51.33
activities
Explanation of reasons for changes in operating income: it saw a year-on-year increase of 75.48%,
mainly due to a steady rise in sales income resulting from continuous acceptance of orders in hand and
sustained competitive advantages in core products.
Explanation of reasons for changes in operating costs: it saw a year-on-year increase of 83.32%, mainly
due to higher costs from sales growth, and the transfer of current-period quality assurance deposits from
selling expenses to operating costs in accordance with the 2024 Application Guides for Enterprise
Accounting Standards.
Explanation of reasons for changes in administrative expenses: it saw a year-on-year increase of
44.05%, mainly due to rises in the remuneration of management and depreciation and amortization.
Explanation of reasons for changes in financial expenses: it saw a year-on-year surge of 135.04%,
mainly due to increases in current-period long-term borrowings and short-term borrowings, and accrued
interest for its convertible bonds.
Explanation of reasons for changes in R&D expenses: it saw a year-on-year increase of 37.01%, mainly
due to ramped-up R&D efforts and a rise in the remuneration of R&D personnel.
Explanation of reasons for changes in net cash flows from operating activities: it declined year on year,
mainly due to increases in payments for purchasing and remuneration.
Explanation of reasons for changes in net cash flows from investment activities: it saw a year-on-year
surge of 175.55%, mainly due to reduced purchases of wealth management products.
Explanation of reasons for changes in net cash flows from financing activities: it saw a year-on-year
increase of 51.33%, mainly due to increased borrowings.
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2. Detailed explanations of the Company’s significant changes in business types, profit
composition, or sources of profit in this period
Applicable √ N/A
(ii) Explanation of drastic changes in profit from non-main business
Applicable √ N/A
(iii) Analysis of assets and liabilities
√ Applicable N/A
1. Details of assets and liabilities
Unit: Yuan
YoY
Percentage Percentage
change
of amount of amount
of
Amount at the at the Amount at the last at the last
Item amount Notes
period end period end period end period end
at the
in total in total
period
assets (%) assets (%)
end
Tradable
financial 220,055,388.89 1.47 1,013,130,849.65 6.49 -78.28
assets
Receivables 2,197,025,477.43 14.70 1,591,755,715.37 10.19 38.03
Receivables
593,758,687.62 3.97 1,399,734,854.14 8.96 -57.58
financing
Other
current 118,975,380.81 0.80 78,299,342.53 0.50 51.95
assets
Projects in
593,113,483.75 3.97 152,486,136.51 0.98 288.96
progress
Other
current 8,569,188.87 0.06 4,333,632.85 0.03 97.74
liabilities
Long-term
319,027,747.75 2.13 141,007,258.34 0.90 126.25
borrowings
Est.
32,355,137.07 0.22 20,642,029.65 0.13 56.74
liabilities
Other remarks
1. Tradable financial assets decreased by 78.28% from the end of the last year, mainly due to reduced
purchases of wealth management products.
2. Receivables increased by 38.03% from the end of the last year, mainly due to income increases.
3. Receivables financing decreased by 57.58% from the end of the last year, mainly due to the receipt of
fewer notes.
4. Other current assets rose by 51.95% from the end of the previous year, mainly due to more input VAT
to be deductible.
5. Projects in progress surged by 288.96% from the end of the last year, mainly due to continuous
spending on new factory buildings.
6. Other current liabilities grew by 97.74% from the end of the last year, mainly due to more output tax
to be transferred.
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2024 Interim Report
7. Long-term borrowings gained 126.25% from the end of the last year, mainly due to new borrowings.
8. Estimated liabilities increased by 56.74% from the end of the last year, mainly due to more accrued
quality assurance expenses on account of higher income.
2. Details of overseas assets
√ Applicable N/A
(1) Asset size
Among them, overseas assets amounted to RMB25,708,194.94, comprising 0.17% of total assets.
(2) Explanation of a high proportion of overseas assets
Applicable √ N/A
Other remarks
No
3. Details of restricted assets as of the end of the reporting period
√Applicable N/A
As of the end of the current period, RMB304.60 million in book value of restricted monetary
capital and RMB596.04 million in book value of restricted notes receivable totaled RMB900.64 million.
The above restrictions were attributable to L/C guarantee deposits, deposits for bank acceptance bills,
notes receivable used as collateral, and unconfirmed endorsed notes or immature notes on discounts.
4. Other remarks
Applicable √ N/A
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2024 Interim Report
(iv) Analysis of investment details
Aggregate analysis of external equity investment
√ Applicable N/A
Unit: million Yuan, Currency: RMB
Investment in the reporting period (million Yuan) Investment in the same period last year Change
(million Yuan)
30.47 64.00 -52.40%
1. Significant equity investments
Applicable √ N/A
2. Significant non-equity investments
Applicable √ N/A
3. Financial assets measured at fair value
√ Applicable N/A
Unit: million Yuan, Currency: RMB
Profit or loss Cumulative fair Provision
Amount at the Purchase Sales/redemption
on fair value value changes impairment Amount at the
Asset class period amount during amount during Other changes
changes during recorded in during the period end
beginning the period the period
the period equity period
Others 1,013.13 0.13 0 0 2,074.00 2,866.00 -1.20 220.06
Others 1,399.73 0 0 0 2,274.93 2,954.25 0 720.42
Others 185.27 -24.14 0 0 0 0 0 161.13
Total 2,598.14 -24.01 0 0 4,348.93 5,820.25 -1.20 1,101.60
Details of portfolio investment
√ Applicable N/A
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2024 Interim Report
Unit: million Yuan, Currency: RMB
Profit
or loss
Cumulative Book
Book on fair Sold Profit
Initial Source fair value Purchased value at
value at value during and loss Accounting
Types Code Short name investment of changes during the the
period changes the on items
cost funds recorded in period period
beginning during period disposal
equity end
the
period
Chinese and Other
foreign stocks
836414 Optech 14.00
Own
24.36 -14.16 0 0 0 0 10.20
non-current
funds financial
assets
Chinese and Other
foreign stocks
873860 Greenstone 10.02
Own
10.02 0 0 0 0 0 10.02
non-current
funds financial
assets
Chinese and Other
foreign stocks
688610
I-TEK
40.00
Own
28.32 -9.98 0 0 0 0 18.34
non-current
OptoElectronics funds financial
assets
Total / / 64.02 / 62.70 -24.14 0 0 0 0 38.56 /
Investment in derivatives
Applicable √ N/A
4. Details of private equity (PE) fund investment
√ Applicable N/A
Unit: million Yuan, Currency: RMB
Agree Total Investm Paid-in Identity Ratio of Whethe Whethe Underly Impact Impact
Investm Account
ment intende ent in investm in investm r the r ing on on
Name ent ing
signin d the ent at participat ent at Compa correlati assets profit accumula
purpose items
g date investm reportin the ion the ny on for the in the ted profit
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2024 Interim Report
ent g period period period controls exists fund reporti
end end (%) the ng
fund or period
can
exert
signific
ant
influenc
e
Xiamen
Fuhai
Xincai
Third
Industry
Phase Other
value Industri
Venture Februa non-curr
and Limited al
Capital ry 26, 20.00 0 20.00 1.96 No ent No 0 0.97
investm partner investm
Investmen 2021 financial
ent ent
t assets
returns
Partnershi
p (limited
partnershi
p)
Total / / 20.00 0 20.00 / 1.96 / / / / 0 0.97
Other remarks
No
35 / 236
2024 Interim Report
(v) Sales of material assets and equity
Applicable √ N/A
(vi) Analysis of major controlled subsidiaries and invested companies
√ Applicable N/A
Company name Main business Shareholding Registered Total assets Net assets
percentage capital (million (million
(million Yuan) Yuan)
Yuan)
R&D,
manufacturing, sales
Intelligent of lithium-ion
82.37% 36.42 703.81 -113.04
Equipment battery equipment,
and technical
services
Supply chain
Supply Chain
management 100% 10.00 1,492.68 98.97
Company
services
Technical
Optics
development and 76.92% 13.00 79.53 -45.17
Application
services
Manufacturing and
XuRi sales of PV
72.00% 30.00 2,065.20 -94.54
Technology equipment and
components
Manufacturing and
sales of dedicated
Coshin
equipment for 71.50% 20.00 151.44 0.62
Technology
semiconductor
devices
R&D,
manufacturing, and
sales of
SCEC electromechanical 40.63% 20.86 2,927.73 204.08
equipment such as
Monocrystal Growth
Furnace
Electric machinery
Wuxi Zhiyuan and equipment 70% 20.00 109.35 13.23
manufacturing
R&D,
manufacturing, and
Leddo
sales of 70.55% 25.28 44.97 37.45
Technology
semiconductor
dicing saw
Electric machinery
Polar New
and equipment 100% 154.43 389.59 243.04
Energy
manufacturing
Electric machinery
Wuxi Polar and equipment 61% 50.00 62.58 24.52
manufacturing
R&D,
Jiexin
manufacturing, and 62% 25.00 36.96 36.57
Technology
sales of
36 / 236
2024 Interim Report
chemical-mechanical
polishing machines
for semiconductor
wafers
R&D and sales of
PV and
AUTOWELL
semiconductor 100% 14.66 13.25 13.22
(Japan)
equipment and
auxiliary materials
Trading,
administration, and
Autowell services related to
100% 109.50 12.46 11.30
(Singapore) automation
equipment and
correlated projects
Professional
equipment including
Songyu PV equipment and
6.78% 32.21 2,208.70 331.90
Technology semiconductor
technology
equipment
R&D and sales of
Optech 2.10% 66.67 375.03 311.20
PV equipment
R&D, design,
manufacturing, and
Greenstone 4.70% 77.22 488.98 225.55
sales of automation
equipment
Design, R&D,
manufacturing, and
I-TEK
sales of industrial 0.80% 68.00 1,542.53 1,472.46
OptoElectronics
machine vision
imaging components
Notes: 1. Data on Songyu were not audited.
2. Data on Optech came from its first quarterly report dated April 26, 2024, and were not audited. Share
capital in Optech increased to 79,748,171 shares as converted its capital reserve into share capital at a
rate of 2 shares for every 10 shares in an equity distribution. For details, please refer to the
Announcement of Implementation Methods for 2023 Annual Equity Distribution (No. 2024-043).
However, the industrial and commercial registration of changes was not concluded in the reporting
period.
3. Data on I-TEK OptoElectronics came from its first quarterly report dated April 19, 2024, and were not
audited.
4. Data on Greenstone derived from its first quarterly report and were not audited.
5. The registered capital of AUTOWELL (Japan) and Autowell (Singapore) is JPY300 million and
USD15 million, respectively.
(vii) Structured entities controlled by the Company
Applicable √ N/A
VII. Other information required for disclosures
Applicable √ N/A
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2024 Interim Report
Section IV Corporate Governance
I. Profile of Shareholders’ General Meeting
Date of
Specified website for disclosure for
Session Date of meeting Resolution
resolution publishing resolution
publishing
The first January 26, 2024 Website of Shanghai January 27, 2024 The Resolution
extraordinary Stock Exchange on Revising the
shareholders’ (SSE) Rules for
general meeting in (www.sse.com.cn) Independent
2024 Directors of
Wuxi Autowell
Technology Co.,
Ltd., the
Resolution on
Revising Rules
and Regulations
in Wuxi Autowell
Technology Co.,
Ltd., the
Resolution on
Revising the
Articles of
Association of
Wuxi Autowell
Technology Co.,
Ltd., and the
Resolution on
Changing the
Use of
Repurchased
Shares, and
Canceling and
Reducing
Registered
Capital were
deliberated and
adopted in the
meeting.
The 2023 annual April 16, 2024 Website of Shanghai April 17, 2024 The following
shareholders’ Stock Exchange resolutions were
general meeting (SSE) deliberated and
(www.sse.com.cn) adopted in the
meeting,
including the
Resolution on the
Company’s 2023
Annual Report
and its Summary,
the Resolution on
2023 Report of
Board of
Directors, the
Resolution on
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2023 Report of
Board of
Supervisors, the
Resolution on
2023 Financial
Accounting
Report, the
Resolution on
2023 Proposed
Plan for Profit
Distribution and
Conversion of
Capital Reserves
into Share
Capital, the
Resolution on
Continuing to
Hire Lixin
Zhonglian Public
Certified
Accountants’
Firm (special
general
partnership) as
Its Auditor for
2024, the
Resolution on
Estimated
Amount of
Routine
Connected
Transactions for
2024, the
Resolution on
Remuneration of
Directors for
2024, the
Resolution on
Remuneration of
Supervisors for
2024, the
Resolution on
Application for a
General Credit
Line from
Commercial
Banks, the
Resolution on
Guarantee Limit
Provided to
Subsidiaries
Granted Bank
Credit Lines, and
the Resolution on
Bringing for
Approval to the
Shareholders’
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2024 Interim Report
General Meeting
to Authorize
Board of
Directors to
Issue Shares to
Specified
Recipients in
Summary
Procedures.
Any request from holders of preferred shares with restored rights to convene an extraordinary
shareholders’ general meeting
Applicable √ N/A
Notes on details of shareholders’ general meeting
√ Applicable N/A
In the reporting period, the Company held two shareholders’ general meetings, including an annual
shareholders’ general meeting, and an extraordinary meeting. In the above meetings, all resolutions
submitted were adopted, and none of them were vetoed. The convening, proposals, notifications,
attendance, deliberation, voting, resolutions, and minutes pertaining to the above shareholders’ meetings
were all performed in accordance with laws, regulations, and stipulations in the Articles of Association
and the Rules of Procedures for Shareholders’ General Meetings. All resolutions adopted in the
meetings were legal and valid.
II. Changes in the Company’s Directors, Supervisors, Senior Management, and Core Technical
Personnel
Applicable √ N/A
Details of changes in the Company’s directors, supervisors, senior management and core technical
personnel
Applicable √ N/A
Detailed ways to identify core technical personnel
Applicable √ N/A
III. Proposed Plan for Profit Distribution or Capital Reserve Conversion
Proposed semi-annual plan for profit distribution and capital reserve conversion
Whether distributed or converted Yes
Number of bonus shares per 10 shares (shares) 0
Dividend payout per 10 shares (RMB) (tax 8.6
inclusive)
Number of shares converted per 10 shares (shares) 0
Any remarks on the proposed plan for profit distribution or capital reserve conversion
No
IV. Implementation of the Company’s Equity Incentive Plan, Employee Stock Ownership Plan
(ESOP), or Other Employee Incentive Measures and Their Effects
(i) Any equity incentive-related matters that have been disclosed in provisional announcements
and subject to no subsequent development or changes
Applicable √ N/A
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(ii) Any incentives undisclosed in provisional announcements or subject to subsequent
development
Details of equity incentive
Applicable √ N/A
Other remarks
Applicable √ N/A
Details of employee stock ownership plan (ESOP)
Applicable √ N/A
Other incentives
Applicable √ N/A
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Section V Environmental and Social Responsibilities
I. Environmental Information
Whether a mechanism for environmental protection Yes
has been put in place
Funds earmarked for environmental protection in 5.78
the reporting period (million Yuan)
(i) Details of environmental protection efforts in companies and their main subsidiaries which are
designated as key polluters by competent environmental protection authorities
Applicable √ N/A
(ii) Details of environmental protection efforts in companies that are not key polluters
√ Applicable N/A
1. Administrative penalties for environmental pollution
Applicable √ N/A
2. Reference to other environmental information disclosed by key polluters
√ Applicable N/A
Neither the Company nor its subsidiaries engage in heavily polluting sectors and generate grave
pollutants in all business procedures. Hazardous wastes generated by the Company in production are set
out in the following table.
Solid Property Waste-generatin Form Hazardous Category Code Est. Disposal
waste g procedure characteristic outpu
s t
Cuttin Hazardou Manufacturing Liqui T 900-006-0 HW0 8t To hire
g fluid s waste d 9 9 qualified
waste organization
s for the
disposal
To reduce and prevent environmental risks, the Company has drawn up a contingency plan for
environmental emergencies, which stipulates preventive measures for potential accidents and critical
situations and has been filed with competent authorities (filing No.: 320-214-2023-038-L).
In accordance with laws and regulations on environmental protection, the Company in the reporting
period neither experienced any environmental pollution accident in operations nor received any penalty
from competent administrative departments due to violations of environmental laws and regulations.
3. Reasons for not disclosing other environmental information
Applicable √ N/A
(iii) Subsequent development or changes in environmental information disclosed in the reporting
period
Applicable √ N/A
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(iv) Contribution to ecological conservation, pollution control and prevention, and environmental
responsibility
√ Applicable N/A
As required by the Wuxi Municipal Bureau of Ecological Environment, the Company insures itself
against environmental pollution liabilities, and works harder to screen out and address latent perils in the
environment. The Company insists on using non-toxic and innocuous or low-toxicity and low-hazard,
degradable or recyclable materials, continues to improve designs, uses clean energy and materials,
adopts advanced technologies and equipment, improves its management through holistic utilization of
materials, and employs pollution control and prevention technologies to meet national standards for
discharge of pollutants and targets for total pollutant discharge control.
(v) Measures for carbon emission reduction in the reporting period and their effects
Whether measures for carbon emission Yes
reduction have been taken
Carbon dioxide equivalence of reduced 2.59
emissions (Unit: 100 million tons)
Measures for carbon emission reduction The Company, whose main products contribute to carbon
(power generation by clean energy, emission reduction, has currently put in place measures to
adoption of carbon emission-reducing carbon emissions in production and life.
technology in production, R&D, and
production of new products that can
facilitate carbon emission reduction, etc.)
Specific remarks
√ Applicable N/A
Keeping a foothold in PV, lithium-ion batteries/ESS, and semiconductor sectors, the Company
produces equipment to bolster the new energy industry, and stays committed to technological advances,
cost reduction, and efficiency improvement, thus playing an important role in helping achieve China’s
goal of peaking carbon emissions by 2030 and reaching carbon neutrality by 2060. The Company boasts
a rationally designed power supply and distribution system, prefers energy-efficient transformers, and
achieves an economical load ratio. To reduce the consumption of electric energy, solar street lamps are
installed in factories, and new energy-efficient lighting products are used in offices. Solar PV power
stations are built atop roofs in factories to make energy utilization more efficient and reduce the use of
electricity. All outer walls of the Company’s self-built workshops are insulated to achieve an economical
use of energy. To prevent the waste of timbers and reduce the use of wood resources, the Company
rented all auxiliary wooden materials for the building of new workshops, which would be recycled by
the lessor after use. In the reporting period, the Company opened more than ten shuttle lines for
employee commuting and advocated less use of private cars to help reduce carbon emissions.
II. Building on Achievements of Poverty Alleviation and Rural Revitalization
Applicable √ N/A
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Section VI Significant Events
I. Performance of Commitments
(i) Commitments that have been completed by parties concerned such as the actual controllers, shareholders, related parties, and acquirers of the
Company and the Company during the reporting period or were still underway before the end of the reporting period
√ Applicable N/A
Any plans, if
Strictly Reasons if
Type of Existence Term of commitment
Commitment Made by Content Date fulfilled commitment
commitment of term commitment not timely
on time not fulfilled
fulfilled
Dividend The Company Note 1 2020.05.21 Yes Long standing Yes N/A N/A
Dividend Actual controllers Note 2 2020.05.21 Yes Long standing Yes N/A N/A
Ge Zhiyong and Li
Wen
Addressing Actual controllers Note 3 2020.05.21 Yes Long standing Yes N/A N/A
horizontal Ge Zhiyong and Li
competition Wen
Addressing Actual controllers Note 4 2020.05.21 Yes Long standing Yes N/A N/A
horizontal Ge Zhiyong and Li
competition Wen
Others Actual controllers Note 5 2020.05.21 Yes Long standing Yes N/A N/A
IPO-related and directors GE
commitment Zhiyong and Li Wen
Others The shareholder Note 6 2020.05.21 Yes Long standing Yes N/A N/A
Wuxi Aoli and
parties acting in
concert of actual
controllers
Others The Company, Note 7 2020.05.21 Yes Long standing Yes N/A N/A
actual controllers,
directors (excluding
independent
directors), and senior
management
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Others The Company and Note 8 2020.05.21 Yes Long standing Yes N/A N/A
actual controllers Ge
Zhiyong and Li Wen
Others The Company Note 9 2020.05.21 Yes Long standing Yes N/A N/A
Others Actual controllers Note 2020.05.21 Yes Long standing Yes N/A N/A
Ge Zhiyong and Li 10
Wen
Others All directors and Note 2020.05.21 Yes Long standing Yes N/A N/A
senior management 11
Others The Company Note 2020.05.21 Yes Long standing Yes N/A N/A
12
Others Actual controllers Note 2020.05.21 Yes Long standing Yes N/A N/A
Ge Zhiyong and Li 13
Wen
Others All directors, Note 2020.05.21 Yes Long standing Yes N/A N/A
supervisors, and 14
senior management
Others The Company Note 2020.05.21 Yes Long standing Yes N/A N/A
15
Others Actual controllers Note 2020.05.21 Yes Long standing Yes N/A N/A
Ge Zhiyong and Li 16
Wen
Others All directors, Note 2020.05.21 Yes Long standing Yes N/A N/A
supervisors, and 17
senior management
Others All core technical Note 2020.05.21 Yes Long standing Yes N/A N/A
personnel 18
Others Ren Jun, indirect Note 2020.05.21 Yes Long standing Yes N/A N/A
shareholder and 19
relative of actual
controller Li Wen
Lock-up Ge Zhiyong and Note 2022.8.21 Yes 18 months Yes N/A N/A
Refinancing-related period party acting in 20 from the
commitment concert Li Wen, completion of
Wuxi Aoli, and the offering
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Wuxi Aochuang
Lock-up Ge Zhiyong, target Note 2022.8.21 Yes 36 months Yes N/A N/A
period of offering 21 from the
completion of
the offering
Others Zhang Hong and Note 2022.8.21 Yes Long standing Yes N/A N/A
Wang Huaiqian, 22
lenders of
subscription fund
Others Ge Zhiyong, target Note 2022.8.21 Yes Long standing Yes N/A N/A
of offering 23
Others Board of Directors Note 2022.8.21 Yes Long standing Yes N/A N/A
of the issuer 24
Others The Company’s Note 2023.8.10 Yes Long standing Yes N/A N/A
directors, senior 25
management, and
actual controllers
Others Shareholders, Note 2023.8.10 Yes Long standing Yes N/A N/A
directors, 26
supervisors, and
senior management
holding over 5%
stake in the
Company
Other commitment Others Actual controllers Note 2024.6.21 Yes Between June Yes N/A N/A
Ge Zhiyong and Li 27 21, 2024 and
Wen December 31,
2024
Note 1:
To protect the interests of small and medium investors, the Company will adhere to the relevant decision-making procedures and distribute profits by strictly
following the policies (including cash dividend policies) specified in the Articles of Association of Wuxi Autowell Technology Co., Ltd. and related regulations.
Note 2:
As an actual controller of the Company, I hereby commit to voting on profit distribution decisions at shareholders’ general meetings from the perspective of
protecting the interests of small and medium investors, in accordance with the profit distribution policies (including cash dividend policies) specified in the Articles
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of Association of Wuxi Autowell Technology Co., Ltd. and related regulations. I will also supervise the Company in profit distribution based on relevant rules and
regulations.
Note 3:
In the event that products produced or businesses engaged in by my wholly-owned, controlled, or affiliated enterprises in the future might compete with or
constitute competition against the Company, I hereby commit to taking the following measures to avoid horizontal competition: (1) Cease the production of
products that constitute competition or stop engaging in business activities that constitute competition; (2) Upon the Company’s request, I hereby commit to
transferring all of my investment or equity in the aforementioned enterprises. I also commit to granting the Company the right of first refusal on such investment or
equity and will make every effort to ensure that the price of the relevant transaction is determined based on fair and reasonable terms, and is similar to those in
normal commercial transactions with independent third parties.
If, in the future, the business opportunities obtained by myself or the enterprises I invest in compete with or may potentially compete with the main business
activities of the Company or its controlled enterprises, I will immediately notify the Company and make every effort to ensure that my invested enterprises prioritize
offering such business opportunities to the Company or its controlled enterprises on open and reasonable terms, to ensure that the interests of the Company and its
shareholders are not jeopardized.
If any loss is incurred by the Company due to my violation of this Letter of Commitment, I agree to bear all the losses caused to the Company as a result.
Note 4:
(1) Except for related-party transactions that have been disclosed in writing to the relevant intermediary agencies, there are no other related-party transactions
between me as well as other enterprises under my control and the Company as well as its controlled enterprises, which, according to laws, regulations, or the
relevant rules of the CSRC or the SSE, shall be disclosed but have not been disclosed.
(2) I will strive to minimize and regulate related-party transactions with the Company and its controlled enterprises. For related-party transactions that are
necessary and unavoidable, other enterprises under my control and I will, on the basis of equality and voluntariness, sign relevant agreements with the Company or
its controlled enterprises in accordance with the principles of fairness, impartiality, and compensation for equal value. I will follow the transaction decision-making
procedures and fulfill information disclosure obligations. I will not request, nor will I accept, any conditions from the Company or its controlled enterprises that are
more favorable than those offered to third parties in any market transactions.
(3) I will strictly comply with the relevant provisions of the Articles of Association to avoid appropriating the Company’s funds or requesting the Company to
provide guarantees illegally. I will also urge the Company’s shareholders and directors to exercise their rights as shareholders and directors in accordance with the
law, and to abstain from voting on related-party transactions at shareholders’ general meetings and Board of Directors.
(4) I hereby commit not to leveraging related-party transactions to transfer or divert profits, and will not leverage my position as the actual controller of the
Company to jeopardize the legitimate rights and interests of the Company and other shareholders through related-party transactions.
(5) I guarantee that the abovementioned declarations and commitments made during my tenure as the actual controller of the Company are irrevocable. If other
enterprises under my control and I violate these declarations and commitments, I will immediately cease related-party transactions with the Company and take
necessary corrective measures. At the same time, other enterprises under my control and I shall be liable for compensating the Company for all the losses and
consequences resulting from the violation of these commitments.
Note 5:
A. I will comply with the lock-up period requirements specified in the Company’s initial public offering (IPO) prospectus and various commitments made by
me, and strictly adhere to relevant laws and regulations by not reducing my holdings of the Company’s stock during the lock-up period.
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B. If I intend to reduce my holdings of the Company’s stock, I will report this to the Company two trading days before the reduction and announce the
reduction plan on the website of the SSE. The reduction will be conducted within six months after the announcement through relevant securities exchanges in block
trades, auction trading, or other methods recognized by the CSRC.
C. When reducing my holdings of the Company’s stock, I will announce the specific reduction plan in accordance with China’s Securities Law, China’s
measures for the administration of the acquisition of listed companies, provisions on share reduction by shareholders, directors, supervisors, and senior management
of listed companies (CSRC Announcement [2017] No. 9), SSE’s implementation rules for share reduction by shareholders, directors, supervisors, and senior
management of listed companies on the SSE (Shang Zhen Fa [2017] No. 24), SSE’s stock listing rules for the SSE STAR Market (Shang Zhen Fa [2019] No. 22),
and other relevant laws, regulations, and normative documents, and ensure that the reduction complies with the regulations of the CSRC and the SSE regarding
reduction methods, reduction ratio, reduction price, and information disclosure.
D. If I do not fulfill the above commitments, the proceeds from the reduction of the Company’s shares will belong to the Company.
E. If the CSRC or the SSE issues new regulations or different opinions regarding the reduction of shareholders’ shares, I agree to revise and implement the
reduction-related commitments according to the new regulations or opinions issued by the CSRC or the SSE.
Note 6:
A. I will comply with the lock-up period requirements specified in the Company’s IPO prospectus and various commitments made by me, and strictly adhere to
relevant laws and regulations by not reducing my holdings of the Company’s stock during the lock-up period.
B. If I intend to reduce my holdings of the Company’s stock, I will report this to the Company two trading days before the reduction and announce the
reduction plan on the website of the SSE. The reduction will be conducted within six months after the announcement through relevant securities exchanges in block
trades, auction trading, or other methods recognized by the CSRC.
C. When reducing my holdings of the Company’s stock, this Company will announce the specific reduction plan in accordance with China’s Securities Law,
China’s measures for the administration of the acquisition of listed companies, provisions on share reduction by shareholders, directors, supervisors, and senior
management of listed companies (CSRC Announcement [2017] No. 9), SSE’s implementation rules for share reduction by shareholders, directors, supervisors, and
senior management of listed companies on the SSE (Shang Zhen Fa [2017] No. 24), SSE’s stock listing rules for the SSE STAR Market (Shang Zhen Fa [2019] No.
22), and other relevant laws, regulations, and normative documents, and ensure that the reduction complies with the regulations of the CSRC and the SSE regarding
reduction methods, reduction ratio, reduction price, and information disclosure.
D. If this Company does not fulfill the above commitments, the proceeds from the reduction of the Company’s shares will belong to the Company.
E. If the CSRC or the SSE issues new regulations or different opinions regarding the reduction of shareholder shares, this Company agrees to revise and
implement the reduction-related commitments according to the new regulations or opinions issued by the CSRC or the SSE.
Note 7:
When the conditions for stabilizing the Company’s stock price are met, if the Company, actual controllers, directors (excluding independent directors), and
senior management do not take specific measures to stabilize the stock price, they agree to the following restrictive measures:
(1) The Company, actual controllers, directors, and senior management will publicly explain the specific reasons for not taking the above-mentioned measures
to stabilize the stock price at the Company’s shareholders’ general meeting and on the disclosure media designated by the SSE or the CSRC, and apologize to the
Company’s shareholders and public investors.
(2) The actual controllers of the Company commit that if the conditions for stabilizing the stock price are met and the actual controllers do not take the
above-mentioned measures, the Company has the right to withhold or deduct dividends payable to the actual controllers to fulfill the commitment of increasing
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holdings, with the deducted amount not exceeding the upper limit of the committed increase. At the same time, the actual controllers’ shares in the Company cannot
be transferred until the corresponding stock price stabilization measures are taken and completed according to the plan.
(3) Directors (excluding independent directors) and senior management commit that if the conditions for stabilizing the stock price are met and they do not take
the specific measures, the Company has the right to deduct their salaries or allowances to fulfill the commitment of increasing holdings, with the deducted amount
not exceeding the upper limit of the committed increase. At the same time, their shares in the Company cannot be transferred until the corresponding stock price
stabilization measures are taken and completed according to the plan.
(4) If the listing rules or other securities regulations regarding the minimum holding ratio for public shareholders prevent the Company, actual controllers,
directors (excluding independent directors), or senior management from fulfilling their stock price stabilization obligations within a certain period, the relevant
responsible parties may be exempt from the above restrictive measures, but they should proactively take other reasonable and feasible measures to stabilize the stock
price.
Note 8:
The Company’s IPO and listing on the SSE STAR Market do not involve any fraudulent circumstances.
If the Company fails to meet the issuance and listing conditions and fraudulently obtained the issuance approval and has already been listed, the Company will
initiate a share repurchase procedure within five working days after the CSRC or other competent authorities confirm the fraudulent issuance, so as to repurchase all
the newly issued shares.
Note 9:
To ensure effective use and prevent dilution of immediate returns while improving future returns, the issuer commits to the following measures:
(1) Strengthening the management of raised funds and accelerating the implementation of funded projects
The Company will follow internal rules and relevant laws and regulations to standardize the use and management of raised funds, ensure that the funds are used
specifically for their intended purposes, promptly deposit the raised funds into designated accounts, and strictly use the funds to ensure they are fully and effectively
utilized as originally intended. The projects funded by the raised proceeds will focus on the Company’s main business, which will help enhance profitability. After
the funds are in place, the Company will accelerate the construction of the funded projects to realize the expected benefits as soon as possible.
(2) Enhancing the Company’s R&D capabilities and improving product competitiveness
R&D innovation represents the core competitiveness of the Company. The Company will leverage the raised funds to further improve its R&D capabilities, and
enhance product performance and competitiveness. The Company will continue to innovate its products based on market demands and improve production
processes and technologies to reduce production costs through continuous technological innovation, thus enhancing overall technical capabilities and operational
efficiency on the back of stronger R&D.
(3) Enhancing market expansion capabilities and increasing market share
The Company is leading the industry with its strong competitive advantages in product R&D, technologies, branding, and customer resources. The Company
will strengthen brand building for its products and services, further improve its market expansion capabilities, and increase customer recognition of its products and
services. While cementing cooperation with existing customers, the Company will continuously expand new customers to further increase its market share.
(4) Improving the Company’s dividend distribution policy and enhancing investor returns and protection
The Company will further improve its dividend distribution policy and make institutional arrangements in documents such as the Articles of Association (Draft)
applicable after going public to specify the conditions, ratio, and form of dividend distribution, thus establishing a well-conceived, sustainable, and stable
shareholder return mechanism to ensure the timeliness and continuity of shareholder returns and protect investor interests.
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Note 10:
(1) I hereby commit not to overstepping my authority in the Company’s management activities and will not infringe on the Company’s interests.
(2) I hereby commit to faithfully fulfilling the Company’s dilution mitigation measures and my associated commitments. If I violate these commitments or
refuse to fulfill them, I will publicly explain and apologize at the shareholders’ general meeting of the Company and in the newspaper designated by the SSE or the
CSRC. If this causes losses to the Company or shareholders, I will bear the legal responsibility for compensating the Company or shareholders.
Note 11:
(1) I hereby commit not to transferring benefits to other units or individuals gratuitously or under unfair conditions, nor jeopardizing the Company’s interests
by other means.
(2) I will fully support and cooperate with the Company’s efforts to regulate the consumption behaviors of directors and senior management. Any of my
work-related consumption will take place within the necessary scope of fulfilling my responsibilities to the Company. I will adhere to the Company’s supervision
and management to avoid waste or excessive spending.
(3) I will strictly adhere to relevant laws, regulations, and requirements from the CSRC and the SSE as well as the regulations on the conduct of directors and
the senior management of the Company. I will not use company assets for investments or consumption activities unrelated to my duties.
(4) I will diligently ensure that the compensation system formulated by the Board of Directors or the Compensation Committee is linked to the Company’s
performance measures, and will vote in favor of the compensation system proposal when it is reviewed by the Board of Directors and shareholders’ general meeting.
(5) If the Company would provide equity incentives for its employees in the future, I will fully support the coupling of the exercise conditions of such
incentives with the implementation of the Company’s compensation measures, and will vote in favor of the employee equity incentive proposal when reviewed by
the Board of Directors or shareholders’ general meeting (if I have voting rights).
(6) If I violate the above commitments, I will publicly explain and apologize at the shareholders’ general meeting of the Company and in the newspaper
designated by the SSE or the CSRC. I voluntarily accept self-disciplinary measures imposed by the SSE and the industrial associations governing listed companies.
If my violation causes losses to the Company or shareholders, I will bear the legal responsibility for compensation.
Note 12:
The Company’s IPO prospectus and other disclosure materials for listing on the SSE STAR Market do not contain false records, misleading statements, or
major omissions. The Company assumes both individual and joint legal responsibility for their truthfulness, accuracy, and completeness.
If the IPO prospectus and other disclosure materials contain false records, misleading statements, or major omissions that cause investors to suffer losses in
securities trading of the Company’s stock, the Company will compensate the investors for their losses according to the law. The specific measures are: after CSRC
issues a formal administrative penalty decision and confirms the Company’s violation of the above regulations, the Company will register public investors who
make claims and will promptly pay compensation after verifying their qualifications and amount of loss.
If the Shanghai Stock Exchange, securities regulatory authorities, or other competent authorities determine that the IPO prospectus and other disclosure
materials contain false records, misleading statements, or major omissions, and such circumstances significantly and substantially affect the determination of
whether the Company meets the conditions for the IPO and listing as prescribed by laws, regulations, and normative documents, the Company commits to
repurchasing all newly issued shares from the Company’s IPO in accordance with the law through the following measures:
(1) Under legally permitted circumstances, if the above situations occur during the period between the completion of the issuance of the Company’s new shares
in its initial public offering and their listing for trading, and are confirmed by the SSE, CSRC, or other competent authorities, the Company will, within 30 working
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days from the date of such confirmation, repurchase all newly issued shares of the IPO from online and offline investors at the issue price plus interest at bank
deposit rates for the same period.
(2) Under legally permitted circumstances, if the above situations occur after the newly issued shares have been listed for trading, and are confirmed by the
SSE, CSRC, or other competent authorities, the Company will, within five working days from the date of such confirmation, formulate a share repurchase plan and
submit it for approval at the shareholders’ general meeting. The repurchase will be implemented through the SSE trading system at a price based on the issue price
and adjusted according to relevant market factors. Any dividend distributions, bonus shares, capitalized capital reserves, or similar adjustments after the listing will
be reflected in the issue price.
When implementing the share repurchase, if there are other legal, regulatory, or normative provisions, those provisions shall prevail.
Note 13:
The prospectus and other disclosure materials related to the IPO and listing of Wuxi Autowell Technology Co., Ltd. on the SSE STAR Market do not contain
any false records, misleading statements, or major omissions. I assume corresponding legal responsibility for the truthfulness, accuracy, and completeness of the
content in the prospectus and other disclosure materials.
If the SSE, CSRC, or other competent departments determine that the IPO prospectus and other disclosure materials contain false records, misleading
statements, or major omissions, and such circumstances significantly and substantially affect the determination of whether the Company meets the conditions for the
IPO and listing as prescribed by laws, I hereby commit to making every effort to ensure the Company repurchases all its newly issued shares in accordance with the
law.
If the IPO prospectus and other disclosure materials contain false records, misleading statements, or major omissions that cause investors to suffer losses in
securities trading of the Company's stock, I will compensate the investors for their losses according to the law.
Note 14:
The prospectus and other disclosure materials related to the IPO and listing of Wuxi Autowell Technology Co., Ltd. on the SSE STAR Market do not contain
any false records, misleading statements, or major omissions. I assume corresponding legal responsibility for the truthfulness, accuracy, and completeness of the
content in the prospectus and other disclosure materials.
If the Shanghai Stock Exchange, CSRC, or other competent departments determine that the IPO prospectus and other disclosure materials contain false records,
misleading statements, or major omissions, and such circumstances significantly and substantially affect the determination of whether the Company meets the
conditions for the IPO and listing as prescribed by laws, I hereby commit to making every effort to ensure the Company repurchases all its newly issued shares in
accordance with the law.
If the IPO prospectus and other disclosure materials contain false records, misleading statements, or major omissions that cause investors to suffer losses in
securities trading of the Company’s stock, I will compensate the investors for their losses according to the law.
Note 15:
In the third extraordinary shareholders’ general meeting in 2019, the Company passed a resolution on the proposal for the Company to issue related letters of
commitment and propose corresponding restrictive measures in relation to its initial public offering of ordinary shares (A-shares) and listing on the SSE STAR
Market. To fully protect the interests of the Company’s shareholders, if the Company fails to fulfill, is unable to fulfill, or is unable to fulfill on time the
commitments it made (except for situations caused by uncontrollable objective reasons such as changes in relevant laws, regulations, policies, natural disasters, and
other force majeure events), the Company voluntarily assumes the corresponding legal consequences and civil compensation responsibilities. The Company makes
the following commitments regarding the restrictive measures for not fulfilling the commitments made during the listing process:
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(1) The Company will strictly fulfill all obligations and responsibilities related to the public commitments made during the IPO and listing on the SSE STAR
Market.
(2) The Company will promptly and fully disclose the specific reasons for any failure to fulfill, inability to fulfill, or delay in fulfilling the commitments.
(3) If the Company fails to fulfill its obligations or responsibilities in the commitments, the Company will publicly explain and apologize to shareholders and
public investors in shareholders’ general meetings and in newspapers designated by the CSRC. The Company will disclose the reasons for the failure to fulfill the
commitments, propose supplementary or alternative commitments, and assume relevant legal responsibilities, including compensation amount. Shareholders and
public investors have the right to request through legal means that the Company fulfill its commitments.
(4) The Company shall not increase the salaries or allowances of directors, supervisors, and senior management in any form until all adverse effects of the
unfulfilled commitments have been completely eliminated.
Note 16:
I will strictly fulfill all obligations and responsibilities related to all the public commitments made during the initial public offering of shares and listing of
Wuxi Autowell Technology Co., Ltd. (hereinafter referred to as “the Company”) on the SSE STAR Market.
If I fail to fully and effectively fulfill the obligations or responsibilities related to the aforementioned commitments due to reasons other than force majeure, I
hereby commit to taking the following measures depending on the specific circumstances:
(1) I will publicly explain the reasons for failing to fully and effectively fulfill the commitments and apologize to shareholders and public investors at the
Company’s shareholders’ general meeting and in media designated by the SSE or the CSRC.
(2) I will compensate public investors with my own capital for direct losses incurred due to reliance on the commitments for trading. The compensation amount
will be determined through negotiation with the investors or as decided by securities regulatory authorities or judicial bodies.
(3) The lock-up period for shares I hold directly or indirectly in the Company will be automatically extended until all adverse effects resulting from my failure
to fulfill the relevant commitments are completely eliminated, except in cases of mandatory transfer due to enforcement, corporate restructuring, or commitments to
protect investor interests.
(4) I will not receive any dividends or bonus shares distributed by the Company, directly or indirectly, until all adverse effects resulting from my failure to
fulfill the relevant commitments are completely eliminated.
(5) Any gains obtained by me due to failure to fully and effectively fulfill the commitments will belong to the Company. I shall pay such gains to the
Company’s designated account within five working days from the date of receipt.
If I fail to fully and effectively fulfill the public commitments due to force majeure, after the force majeure event ceases to exist, I will publicly explain the
specific circumstances of the force majeure event that caused the failure to fulfill the commitments and apologize to the Company’s shareholders and public
investors at the Company’s shareholders’ general meeting and in media designated by the SSE or the CSRC. Additionally, I will promptly seek solutions to
minimize investor losses and protect the interests of the Company and its investors. I will also clarify whether the original commitments will continue after the force
majeure ceases to exist. If not, I will propose new commitments based on the actual situation.
Note 17:
I will strictly fulfill all obligations and responsibilities related to all the public commitments made during the initial public offering of shares and listing of
Wuxi Autowell Technology Co., Ltd. (hereinafter referred to as “the Company”) on the SSE STAR Market.
If I fail to fully and effectively fulfill the obligations or responsibilities related to the aforementioned commitments due to reasons other than force majeure, I
hereby commit to taking the following measures depending on the specific circumstances:
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(1) I will publicly explain the reasons for failing to fully and effectively fulfill the commitments and apologize to shareholders and public investors at the
Company’s shareholders’ general meeting and in media designated by the SSE or the CSRC.
(2) I will compensate public investors with my own capital for direct losses incurred due to reliance on the commitments for trading. The compensation amount
will be determined through negotiation with the investors or as decided by securities regulatory authorities or judicial bodies.
(3) The lock-up period for shares I hold directly or indirectly in the Company will be automatically extended until all adverse effects resulting from my failure
to fulfill the relevant commitments are completely eliminated, except in cases of mandatory transfer due to enforcement, corporate restructuring, or commitments to
protect investor interests.
(4) I will not receive any dividends or bonus shares distributed by the Company, directly or indirectly, until all adverse effects resulting from my failure to
fulfill the relevant commitments are completely eliminated.
(5) Any gains obtained by me due to failure to fully and effectively fulfill the commitments will belong to the Company. I shall pay such gains to the
Company's designated account within five working days from the date of receipt.
If I fail to fully and effectively fulfill the public commitments due to force majeure, after the force majeure event ceases to exist, I will publicly explain the
specific circumstances of the force majeure event that caused the failure to fulfill the commitments and apologize to the Company’s shareholders and public
investors at the Company’s shareholders’ general meeting and in media designated by the SSE or the CSRC. Additionally, I will promptly seek solutions to
minimize investor losses and protect the interests of the Company and its investors. I will also clarify whether the original commitments will continue after the force
majeure ceases to exist. If not, I will propose new commitments based on the actual situation.
Note 18:
I will strictly fulfill all obligations and responsibilities related to all the public commitments made during the initial public offering of shares and listing of
Wuxi Autowell Technology Co., Ltd. (hereinafter referred to as “the Company”) on the SSE STAR Market.
If I fail to fully and effectively fulfill the obligations or responsibilities related to the aforementioned commitments due to reasons other than force majeure, I
hereby commit to taking the following measures depending on the specific circumstances:
(1) I will publicly explain the reasons for failing to fully and effectively fulfill the commitments and apologize to shareholders and public investors at the
Company’s shareholders’ general meeting and in media designated by the SSE or the CSRC.
(2) I will compensate public investors with my own capital for direct losses incurred due to reliance on the commitments for trading. The compensation amount
will be determined through negotiation with the investors or as decided by securities regulatory authorities or judicial bodies.
(3) The lock-up period for shares I hold directly or indirectly in the Company will be automatically extended until all adverse effects resulting from my failure
to fulfill the relevant commitments are completely eliminated, except in cases of mandatory transfer due to enforcement, corporate restructuring, or commitments to
protect investor interests.
(4) I will not receive any dividends or bonus shares distributed by the Company, directly or indirectly, until all adverse effects resulting from my failure to
fulfill the relevant commitments are completely eliminated.
(5) Any gains obtained by me due to failure to fully and effectively fulfill the commitments will belong to the Company. I shall pay such gains to the
Company's designated account within five working days from the date of receipt.
If I fail to fully and effectively fulfill the public commitments due to force majeure, after the force majeure event ceases to exist, I will publicly explain the
specific circumstances of the force majeure event that caused the failure to fulfill the commitments and apologize to the Company’s shareholders and public
investors at the Company’s shareholders’ general meeting and in media designated by the SSE or the CSRC. Additionally, I will promptly seek solutions to
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2024 Interim Report
minimize investor losses and protect the interests of the Company and its investors. I will also clarify whether the original commitments will continue after the force
majeure ceases to exist. If not, I will propose new commitments based on the actual situation.
Note 19:
I will strictly fulfill all obligations and responsibilities related to all the public commitments made during the initial public offering of shares and listing of
Wuxi Autowell Technology Co., Ltd. (hereinafter referred to as “the Company”) on the SSE STAR Market.
If I fail to fully and effectively fulfill the obligations or responsibilities related to the aforementioned commitments due to reasons other than force majeure, I
hereby commit to taking the following measures depending on the specific circumstances:
(1) I will publicly explain the reasons for failing to fully and effectively fulfill the commitments and apologize to shareholders and public investors at the
Company’s shareholders’ general meeting and in media designated by the SSE or the CSRC.
(2) I will compensate public investors with my own capital for direct losses incurred due to reliance on the commitments for trading. The compensation amount
will be determined through negotiation with the investors or as decided by securities regulatory authorities or judicial bodies.
(3) The lock-up period for shares I hold directly or indirectly in the Company will be automatically extended until all adverse effects resulting from my failure
to fulfill the relevant commitments are completely eliminated, except in cases of mandatory transfer due to enforcement, corporate restructuring, or commitments to
protect investor interests.
(4) I will not receive any dividends or bonus shares distributed by the Company, directly or indirectly, until all adverse effects resulting from my failure to
fulfill the relevant commitments are completely eliminated.
(5) Any gains obtained by me due to failure to fully and effectively fulfill the commitments will belong to the Company. I shall pay such gains to the
Company's designated account within five working days from the date of receipt.
If I fail to fully and effectively fulfill the public commitments due to force majeure, after the force majeure event ceases to exist, I will publicly explain the
specific circumstances of the force majeure event that caused the failure to fulfill the commitments and apologize to the Company’s shareholders and public
investors at the Company’s shareholders’ general meeting and in media designated by the SSE or the CSRC. Additionally, I will promptly seek solutions to
minimize investor losses and protect the interests of the Company and its investors. I will also clarify whether the original commitments will continue after the force
majeure ceases to exist. If not, I will propose new commitments based on the actual situation.
Note 20:
Ge Zhiyong and his concerted parties, Li Wen, Wuxi Aoli, and Wuxi Aochuang, commit not to transferring their shares held before this issuance for a period of
18 months starting from the end of the issuance.
Note 21:
The shares subscribed through this issuance shall not be transferred for a period of thirty-six months from the end of the issuance. Shares acquired by Ge
Zhiyong from this issuance due to stock dividends, capitalized capital reserves, or other similar methods must also comply with the above lock-up arrangement.
Ge Zhiyong agrees to a lock-up commitment for the shares subscribed through this issuance in accordance with relevant laws, regulations, the CSRC, the SSE,
and the company’s requirements, and handles the relevant share lock-up matters. If laws and regulations specify a different lock-up period, those provisions shall
apply. Transfers after the lock-up period will be subject to the relevant regulations of the CSRC and SSE.
Note 22:
I am aware that the funds being lent are for Ge Zhiyong to subscribe for the shares issued by ATW. This lending of funds indeed constitutes a loan, and I will
adhere to the terms and interest rate specified in the Loan Cooperation Agreement of Intent, Supplementary Agreement to the Loan Cooperation Agreement of Intent,
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2024 Interim Report
and Supplementary Agreement to the Loan Cooperation Agreement of Intent (II), which state a term of 24 months, and that one month before the term expires, Ge
Zhiyong may request in writing to extend the term by six months under the same conditions before the original term expires, and with my consent, an additional
six-month extension may be granted. The interest rate is 9% per annum (simple interest). I do not have any arrangements for entrusted shareholding or other
interests with the borrower Ge Zhiyong, and the related parties under his control. I am willing to accept relevant regulatory inspections regarding the above
commitments. If these commitments are violated, any related benefits from the violations will belong to ATW.
Note 23:
The funds lent indeed constitute a loan. Neither I nor the related parties under my control have any arrangements for entrusted shareholding, compensation,
promised returns, or other interests with the lender. I am willing to accept relevant regulatory inspections regarding the above commitments. If these commitments
are violated, any related benefits from the violations will belong to the listed company.
Note 24:
1. Specific measures for filling the gap in returns
To protect the interests of investors, reduce the risk of immediate return dilution, and enhance shareholders’ returns, the Company plans to take various
measures to address the gap. However, the Company emphasizes that the measures outlined do not guarantee future profits.
(1) Strengthen management to ensure proper and effective use of the funds raised
According to China’s Company Law, Securities Law, the regulations on the management and use of funds raised by listed companies laid out by CSRC, SSE’s
stock listing rules for the SSE STAR Market (Shang Zhen Fa [2019] No. 22), and other relevant laws and regulations, the Company has established a reality-based
fund management system. This system outlines clear regulations on dedicated account management, including its usage and purpose changes, as well as the
supervision of raised funds. After the funds raised from this issuance are put in place, the Company’s Board of Directors will continuously supervise the dedicated
management of these funds, ensure their use for designated investment projects, conduct regular internal audits, and cooperate with regulators, banks, and sponsors
for inspections and supervision to ensure proper and compliant use.
(2) Enhance business management and improve operational efficiency
After the funds from this issuance are in place, the Company will continue to improve internal operational management, optimize business processes and
internal controls, reduce operational costs, and enhance asset utilization efficiency. Additionally, the Company will advance its talent development system, optimize
incentive mechanisms, and work to improve the motivation and creativity of all employees. These measures aim to enhance operational efficiency, reduce costs, and
boost overall business performance.
(3) Further refine profit distribution policies to optimize investor returns
The Company will improve its profit distribution system in accordance with the CSRC’s regulations and guidelines on cash dividends of listed companies.
This will strengthen the investor return mechanism to ensure the protection of shareholders’ interests, especially minority shareholders. The Company has developed
an effective mechanism represented by its Three-Year Plan for Shareholder Dividend Policies of Wuxi Autowell Technology Co., Ltd., 2021 – 2023. The plan
emphasizes reasonable returns to investors and maintains the stability and continuity of profit distribution policies. After issuing shares to specific investors, the
Company will strictly adhere to relevant laws and the shareholder return plan to protect investors’ interests.
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2. Commitments to mitigate immediate return dilution from share issuance to specific investors
(1) Commitments from the Company’s directors and senior management
A. I hereby commit not to transferring benefits to other units or individuals gratuitously or under unfair conditions, nor jeopardizing the Company’s interests
by other means.
B. I will impose restrictions on the official spending behaviors of directors, including myself, and the senior management.
C. I will strictly adhere to relevant laws, regulations, and requirements from the CSRC and the SSE as well as the regulations on the conduct of directors and
the senior management of the Company. I will not use company assets for investments or consumption activities unrelated to my duties.
D. I will diligently ensure that the compensation system formulated by the Board of Directors or the Compensation and Evaluation Committee is linked to the
implementation of the Company’s dilution mitigation measures, and will vote in favor of such compensation proposals at the Board of Directors and shareholders’
general meeting.
E. If the Company would provide equity incentives for its employees in the future, I will fully support the coupling of the exercise conditions of such incentives
with the implementation of the Company’s compensation measures, and will vote in favor of the employee equity incentive proposal when reviewed by the Board of
Directors or shareholders’ general meeting (if I have voting rights).
F. If I violate the above commitments, I will publicly explain and apologize at the shareholders’ general meeting of the Company and in the newspaper
designated by the SSE or the CSRC. I voluntarily accept self-disciplinary measures imposed by the SSE and the industrial associations governing listed companies.
If my violation causes losses to the Company or shareholders, I will bear the legal responsibility for compensation.
(2) Commitments from the Company’s actual controllers
A. I hereby commit not to interfering with the Company’s management activities beyond my authority and not to encroaching upon the Company’s interests.
B. I hereby commit to faithfully fulfilling the Company’s dilution mitigation measures and my associated commitments. If I violate these commitments or
refuse to fulfill them, I will publicly explain and apologize at the shareholders’ general meeting of the Company and in the newspaper designated by the SSE or the
CSRC. If this causes losses to the Company or shareholders, I will bear the legal responsibility for compensating the Company or shareholders.
Note 25:
(1) Commitments from the Company’s directors and senior management
A. I hereby commit not to transferring benefits to other units or individuals gratuitously or under unfair conditions, nor jeopardizing the Company’s interests
by other means.
B. I will impose restrictions on the official spending behaviors of directors, including myself, and the senior management.
C. I will strictly adhere to relevant laws, regulations, and requirements from the CSRC and the SSE as well as the regulations on the conduct of directors and
the senior management of the Company. I will not use company assets for investments or consumption activities unrelated to my duties.
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D. I will diligently ensure that the compensation system formulated by the Board of Directors or the Compensation and Evaluation Committee is linked to the
implementation of the Company’s dilution mitigation measures, and will vote in favor of such compensation proposals at the Board of Directors and shareholders’
general meeting.
E. If the Company would provide equity incentives for its employees in the future, I will fully support the coupling of the exercise conditions of such
incentives with the implementation of the Company’s compensation measures, and will vote in favor of the employee equity incentive proposal when reviewed by
the Board of Directors or shareholders’ general meeting (if I have voting rights).
F. If I violate the above commitments, I will publicly explain and apologize at the shareholders’ general meeting of the Company and in the newspaper
designated by the SSE or the CSRC. I voluntarily accept self-disciplinary measures imposed by the SSE and the industrial associations governing listed companies.
If my violation causes losses to the Company or shareholders, I will bear the legal responsibility for compensation.
(2) Commitments from the Company’s actual controllers
A. I hereby commit not to interfering with the Company’s management activities beyond my authority and not to encroaching upon the Company’s interests.
B. I hereby commit to faithfully fulfilling the Company’s dilution mitigation measures and my associated commitments. If I violate these commitments or
refuse to fulfill them, I will publicly explain and apologize at the shareholders’ general meeting of the Company and in the newspaper designated by the SSE or the
CSRC. If this causes losses to the Company or shareholders, I will bear the legal responsibility for compensating the Company or shareholders.
Note 26:
① I will decide whether to participate in the subscription of the Company's convertible bonds (CBs) based on relevant regulations such as China’s Securities
(1) Commitments from shareholders holding more than 5% stake, directors (excluding independent directors), supervisors, and senior management
Law and the CSRC’s Administrative Measures for Convertible Corporate Bonds, as well as the market conditions at the time of issuance. I will strictly fulfill the
② If the interval between the date of the issuance of the Company’s convertible bond and the last date on which I, my spouse, parents, or children reduced our
corresponding information disclosure obligations.
holdings in the Company’s stock is less than six months (inclusive), neither I nor my spouse, parents, or children will participate in the subscription of the
③ If I, my spouse, parents, or children participate in the Company’s convertible bond issuance, we will not reduce our holdings in the Company’s stock or the
Company’s convertible bonds.
④ I will strictly adhere to the relevant regulations of China’s Securities Law regarding the trading of listed company stocks and convertible bonds, and will
issued convertible bonds in any way within six months from the completion of the subscription.
not engage in any behavior that violates Article 44 of the Securities Law, including trading through auction trading, block trading, or negotiated transfer, nor will I
engage in direct or indirect short-term trading or other illegal activities.
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⑤ I voluntarily make the above commitments and agree to be bound by this Letter of Commitment. If I, my spouse, parents, or children violate these
commitments by reducing holdings of the Company’s stock or convertible bonds, all gains from such reductions will belong to the Company, and I will bear the
legal responsibilities arising from this according to the law.
① I hereby commit that neither I, my spouse, parents, nor children will participate in the subscription of the Company’s convertible bonds issued to
(2) Commitments from independent directors
② I guarantee that my spouse, parents, and children will strictly comply with the regulations on short-term trading and will bear the legal responsibilities
unspecified parties, nor will we entrust others to participate in the subscription.
③ If I violate the above commitments, I will bear the legal responsibilities arising from this according to the law.
arising from this.
Note 27:
From June 21, 2024, to December 31, 2024, the Company’s actual controllers, Mr. Ge Zhiyong and Mr. Li Wen, will not reduce their directly held shares in
any form. During this commitment period, if there are any circumstances that result in the issuance of additional shares due to capitalized capital reserves, stock
dividends, or rights issues, this non-reduction commitment will also apply. If the aforementioned parties violate this commitment, all gains obtained from the
reduction of shares will belong to the Company.
II. Appropriation of Funds for Non-operating Purposes by Controlling Shareholders and Other Related Parties
Applicable √ N/A
III. Illegal External Guarantees
Applicable √ N/A
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IV. Audit of Interim Reports
Applicable √ N/A
V. Changes and Handling of Issues Related to Non-standard Audit Opinions in the Annual Report
2023
Applicable √ N/A
VI. Bankruptcy and Reorganization
Applicable √ N/A
VII. Material Legal Proceedings and Arbitrations
The Company was involved in material legal proceedings or arbitrations during the reporting period.
√ The Company was not involved in any material proceedings or arbitrations during the reporting
period.
VIII. Alleged Violations, Penalties, And Rectification Measures Involving the Listed Company, Its
Directors, Supervisors, Senior Management, Controlling Shareholders, and Actual Controllers
□ Applicable √ N/A
IX. Integrity of the Company, Its Controlling Shareholder and Actual Controller in the Reporting
Period
□ Applicable √ N/A
X. Significant Related Party Transactions
(i) Related party transactions in daily operations
1. Matters disclosed in interim announcements that have not shown any progress or changes
subsequently
□ Applicable √ N/A
2. Matters disclosed in interim announcements that have had subsequent progress or changes in
implementation
□ Applicable √ N/A
3. Matters not disclosed in interim announcements
□ Applicable √ N/A
(ii) Related party transactions regarding the acquisition or sales of assets or equity
1. Matters disclosed in interim announcements that have not shown any progress or changes
subsequently
□ Applicable √ N/A
2. Matters disclosed in interim announcements that have had subsequent progress or changes in
implementation
□ Applicable √ N/A
3. Matters not disclosed in interim announcements
□ Applicable √ N/A
4. For matters involving performance commitments, the achievement of performance during the
reporting period should be disclosed
□ Applicable √ N/A
(iii) Related party transactions arising from joint investments in external parties
1. Matters disclosed in interim announcements that have not shown any progress or changes
subsequently
□ Applicable √ N/A
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2024 Interim Report
2. Matters disclosed in interim announcements that have had subsequent progress or changes in
implementation
□ Applicable √ N/A
3. Matters not disclosed in interim announcements
□ Applicable √ N/A
(iv) Related creditor’s rights and debts
1. Matters disclosed in interim announcements that have not shown any progress or changes
subsequently
□ Applicable √ N/A
2. Matters disclosed in interim announcements that have had subsequent progress or changes in
implementation
□ Applicable √ N/A
3. Matters not disclosed in interim announcements
□ Applicable √ N/A
(v) Financial transactions between the Company and related financial companies, as well as
between the financial companies under the Company’s control and their related parties
□ Applicable √ N/A
(vi) Other significant related party transactions
□ Applicable √ N/A
(vii) Others
□ Applicable √ N/A
XI. Major Contracts and Fulfillment
(i) Trusteeship, contracting and leasing
□ Applicable √ N/A
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2024 Interim Report
(ii) Major guarantees performed and ongoing during the reporting period
√ Applicable N/A
Unit: million Yuan, Currency: RMB
External guarantees by the Company (excluding guarantees to subsidiaries)
Relationship Guarantee
Contractual Major Collateral (if Completion Overdue Counter
Guarantor with listed Guaranteed party Amount Start date End date Type Overdue for related Relationship
date debts applicable) status amount guarantee
company party
Total guarantee amount during the reporting period (excluding those for subsidiaries)
Balance of guarantee amount at the period end (A) (excluding those for subsidiaries)
Guarantees provided by the Company and its subsidiaries for subsidiaries
Relationship Relationship
between the between the
Contractual Completion Overdue Existence of
Guarantor guarantor and Guaranteed party guaranteed party Amount Start date End date Type Overdue
date status amount counter guarantee
listed company and listed
company
Songci Controlled Joint
September 17,
The Company Headquarters 404.58 April 4, 2023 April 4, 2023 No No - Yes
Electromechanical subsidiary 2024 liability
The Company Controlled Joint
Headquarters Xurui Technology 296.19 July 17, 2023 July 17, 2023 March 19, 2025 No No - Yes
subsidiary liability
The Company Controlled December 19, December November 16, Joint
Headquarters Coshin Technology 2.82 No No - Yes
subsidiary 2023 19, 2023 2024 liability
The Company Autowell Intelligent Controlled November 15, November September 26, Joint
Headquarters 18.49 No No - No
Equipment subsidiary 2023 15, 2023 2024 liability
Total guarantee amount for subsidiaries during the reporting period 586.19
Balance of guarantee amount for subsidiaries at the period end (B) 722.08
Total guarantees provided by the Company (including those for subsidiaries)
Total guarantee amount (A+B)
722.08
Total guarantee amount as a percentage of the Company’s net assets (%) 17.34
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2024 Interim Report
Of which:
Amount of guarantees provided for shareholders, actual controllers, and their related parties (C)
Amount of debt guarantees provided directly or indirectly for entities with a liability-to-asset ratio over 70% 722.08
(D)
Portion of the total guarantee amount in excess of 50% of net assets (E) 0
Total amount of the three kinds of guarantees above (C+D+E) 722.08
Joint responsibilities possibly borne for undue guarantees
Explanation of guarantees
(iii) Other significant contracts
√ Applicable □ N/A
1. The Company has signed a contract with Trina Solar Co., Ltd. for the supply of PV cell soldering stringer. Additionally, the Company’s wholly-owned subsidiary,
Wuxi Autowell Supply Chain Management Co., Ltd., has signed a contract with Trina Solar’s wholly-owned subsidiary, Trina Solar US Manufacturing Module 1,
LLC, for the same stringer. As of the date of this report, the products are being delivered gradually (the Company publicly disclosed the important contract on
January 4, 2024).
2. The Company has signed a procurement contract for PV cell soldering stringer and other equipment with a leading photovoltaic enterprise. As of the date of this
report, the products have been delivered and are pending acceptance (the Company publicly disclosed the important contract on January 18, 2024).
3. The Company and its controlled subsidiary, Xurui Technology, have signed a contract with LONGi Green Energy Technology Co., Ltd. for the supply of PV cell
soldering stringer and BC adhesive printing machine. As of the date of this report, the products are being delivered gradually (the Company publicly disclosed the
bid-winning on February 23, 2024).
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2024 Interim Report
XII. Progress Report on the Use of Raised Funds
√ Applicable N/A
(i) Overall use of raised funds
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Amoun
Of which: Progress of
Promised Amount of Progress of t of
Net amount Amount of excessively
investment Excessive raised funds raised funds Annual raised
Time for after excessively raised funds
Source of Total amount in amount invested as invested as Annual investment funds
receipt of deduction raised funds invested as
raised funds amount the raised (3) of the of the period investment (%)(9)=(8)/ with a
funds of issuance invested as of the period
prospectus = (1)- (2) period end end (%) (6)= (1) change
fees (1) of the period end (%) (7)=
(2) (4) (4)/(1) d
end (5) (5)/(3)
purpose
Stock
issuance to August 22,
530.00 524.47 524.47 - 285.95 - 54.52% - 20.46 3.90% -
specific 2022
targets
Issuance of
August 16,
convertible 1,140.00 1,132.91 1,132.91 - 212.37 - 18.75% - 161.79 14.28% -
2023
bonds
Total / 1,670.00 1,657.38 1,657.38 498.32 / / 182.25 /
(ii) Details of projects funded by raised funds
√ Applicable □ N/A
1. Detailed breakdown of the use of raised funds
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Source Projects Change Planned Annual Cumula Progres Expect Compl Progre Reas Benef Benef Major Surplu
Project
of Project name promise in investm investm tive s of ed etion ss in ons its in its or change s
type
raised d in investm ent ent investm cumulat date status line for this R&D in amoun
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2024 Interim Report
funds prospec ent amount amount ent ive for with delay year result feasibili t
tus (1) amount investm reachi plan s ty;
as of ent (%) ng realiz reasons
the (3)=(2)/ usable ed if any
period (1) conditi
end (2) on
Stock R&D and
issuanc industrialization
e to of advanced R&D Yes No 290.00 18.46 79.48 27.41% No Yes
specific intelligent
targets equipment
Stock
issuanc
Technology
e to Others Yes No 150.00 2.00 122.00 81.33% No Yes
reserve funds
specific
targets
Stock
issuanc
Replenishment of 100.00
e to Others Yes No 84.47 - 84.47 No Yes
working capital %
specific
targets
Platform-based
Producti
Issuanc advanced
on & 1,032.9
e of intelligent Yes No 159.29 209.71 20.30% No Yes
construct 1
CBs equipment and
ion
smart factories
Lab for advanced
Issuanc metalization
e of technology and R&D Yes No 60.00 1.70 1.86 3.09% No Yes
CBs equipment for
PV cells
R&D and
Issuanc
industrialization
e of R&D Yes No 40.00 0.80 0.80 2.01% No Yes
of optical
CBs
inspection
64 / 236
2024 Interim Report
equipment for
advanced
semiconductor
packaging
1,657.3
Total / / / / 182.25 498.32 / / / / / / /
8
Note: 1. The progress of the R&D and industrialization of the advanced intelligent equipment project is slightly behind schedule, mainly due to:
(1) TOPCon battery equipment project: The TOPCon technology has undergone rapid progress in recent years. The Company plans to evaluate the addition of new technological modules and
equipment products for R&D on top of the original investment plan for TOPCon battery equipment.
(2) Core semiconductor packaging and testing equipment project: As the semiconductor market enters a new growth cycle, there is emerging demand for related products. The Company plans
to explore the application of these products in power devices on top of the original R&D plan. Additionally, the Company intends to further adjust the product performance specifications in the
design of the project plan to better align with market conditions and improve the overall project planning.
2. The Company is continuing refining the R&D plans for labs of advanced metalization technology and equipment for PV cells and R&D and industrialization of optical inspection
equipment for advanced semiconductor packaging. The Company plans to increase investment gradually as the projects advance.
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2024 Interim Report
2. Breakdown of the use of funds raised above the quota
□ Applicable √ N/A
(iii) Changes or termination of projects invested by raised funds during the reporting period
□ Applicable √ N/A
(iv) Other uses of raised funds during the reporting period
1. Advance investment in funded projects, and replacement of such investment
□ Applicable √ N/A
2. Temporary replenishment of working capital with idle raised funds
√ Applicable □ N/A
On March 25, 2024, at the 50th meeting of the third Board of Directors and the 44th meeting of the third
Board of Supervisors, the Company reviewed and approved the Proposal on Using a Portion of Idle
Raised Funds to Temporarily Replenish Working Capital. The boards agreed to use up to RMB600
million of idle raised funds to temporarily replenish working capital, solely for production and
operations related to the Company’s main business. The term is no more than nine months from the date
of the Board of Directors’ approval. As of June 30, 2024, RMB200 million of the idle raised funds had
been used to replenish working capital.
3. Cash management and investment in related products using idle raised funds
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Balance
Date of Effective amount of Balance of cash
exceeding the
review by raised funds Beginning management
End date approved quota
Board of approved for cash date amount at the
during the
Directors management period end
reporting period
November 8, November 8, November
13 220 No
2023 2023 7, 2024
On November 8, 2023, the Company held its fourth extraordinary shareholders’ general meeting of
2023, and approved the proposal on the Cash Management Using Idle Raised Funds. The Company is
authorized to use up to RMB1.3 billion of temporarily idle raised funds for cash management, provided
that this does not affect the normal progress of the original investment plans. The funds are to be
invested in low-risk products that meet principal protection requirements and offer good liquidity,
including but not limited to principal-protected financial products, structured deposits, negotiated
certificates of deposit, time deposits, and call deposits. The term is 12 months from the date of the
approval of the shareholders’ general meeting. Within the approved amount and term, funds can be
reused. For detailed information, please refer to the Company’s announcement titled Announcement on
Cah Management Using Temporarily Idle Raised Funds (Announcement No.: 2023-103) disclosed on
October 20, 2023 on the Shanghai Stock Exchange website (www.sse.com.cn) and other designated
media.
As of June 30, 2024, the Company had RMB220 million of idle raised funds invested in financial
products that have not yet matured.
1. Others
□ Applicable √ N/A
XIII. Other Significant Events
□ Applicable √ N/A
66 / 236
2024 Interim Report
Section VII Changes in Shares and Particulars of Shareholders
I. Changes in Equity
(i) An overview of changes in shares
1. Statement of changes in shares
Unit: Share
Before Increase/decrease in the reporting period (+/-) After
Bonu Conversi
New s on from
Shares (%) Others Subtotal Shares
issues share capital (%)
s reserve
I. Restricted 115,616,7 51.4 -98,336,5 -91,424,46 24,192,31
0 0 6,912,090 7.69
shares 80 3 55 5 5
1. State-owned
0 0 0 0 0 0 0
shares
2. Shares held
by state-owned 0 0 0 0 0 0 0
entities
3. Shares held
by other 115,616,7 51.4 -98,336,5 -91,424,46 24,192,31
0 0 6,912,090 7.69
domestic 80 3 55 5 5
investors
Including shares
held by
14,128,80 -14,128,8 -14,128,80
domestic 6.28 0 0 0 0 0
0 00 0
non-state-owned
corporations
Shares held by
101,487,9 45.1 -84,207,7 -77,295,66 24,192,31
domestic natural 0 0 6,912,090 7.69
80 4 55 5 5
persons
4. Shares held
by foreign 0 0 0 0 0 0 0 0 0
investors
Including shares
held by foreign 0 0 0 0 0
legal persons
Shares held by
foreign natural 0 0 0 0 0
persons
II.
109,194,4 48.5 584,29 97,536,08 181,046,3 290,240,7 92.3
Non-restricted 0 82,925,936
60 7 0 9 15 75 1
shares
1.
RMB-denomina 109,194,4 48.5 584,29 97,536,08 181,046,3 290,240,7 92.3
0 82,925,936
ted ordinary 60 7 0 9 15 75 1
shares
2. Domestically
listed foreign 0 0 0 0 0 0 0 0 0
shares
3. Overseas
listed foreign 0 0 0 0 0 0 0 0 0
shares
4. Others 0 0 0 0 0 0 0
III. Total
224,811,2 584,29 89,621,85 314,433,0
number of 100 0 89,838,026 -800,466 100
40 0 0 90
shares
2. Reasons for changes in shares
√ Applicable □ N/A
67 / 236
2024 Interim Report
1. On January 5, 2024, the Company issued the ATW Announcement on the Results of the Second
Vesting Period of the Reserved Grant of the 2021 Restricted Stock Incentive Plan, the First Vesting
Period of the Reserved Grant of the 2022 Restricted Stock Plan, and the Listing of Shares
(Announcement No.: 2024-003). Following this vesting, the number of the Company’s total share capital
increased from 224,811,240 to 224,892,432.
2. On March 15, 2024, the Company issued the ATW Announcement on the Repurchase and
Cancellation of Shares and Changes in Share Capital (Announcement No.: 2024-024). After the
completion of this repurchase and cancellation, the number of the Company’s total share capital
decreased from 224,892,432 to 224,092,126.
3. On April 3, 2024, the Company issued the Announcement on the Results of Convertible Bond
Conversion and Changes in Share Capital (Announcement No.: 2024-042). After the conversion of
convertible bonds, the number of the Company’s total share capital increased from 224,092,126 to
224,092,158.
4. On April 20, 2024, the Company issued the ATW Announcement on the Results of the Second
Vesting Period of the Initial Grant of the 2022 Restricted Stock Incentive Plan and the Listing of Shares
(Announcement No.: 2024-046). Following this vesting, the number of the Company’s total share capital
increased from 224,092,158 to 224,595,064.
5. On May 14, 2024, the Company issued the Announcement on the Implementation of the 2023
Annual Equity Distribution (Announcement No.: 2024-054). The new unrestricted tradable shares were
listed on May 20, 2024. After this equity distribution, the number of the Company’s total share capital
increased from 224,595,064 to 314,433,090.
3. Impacts (if applicable) of changes in shares on earnings per share, net assets per share of the Company,
and other financial indicators between the end of the reporting period and the disclosure date of the
interim report
□ Applicable √ N/A
4. Other information disclosure deemed necessary by the Company or required by securities regulatory
authorities
□ Applicable √ N/A
(ii) Changes in restricted shares
√ Applicable □ N/A
Unit: Share
Balance of Restricted Increase of
Balance of
restricted shares restricted
Name of restricted Reasons for Date of
shares at the relieved in shares in
shareholders shares at the lock-up relieve
period reporting reporting
period end
beginning period period
Ge Zhiyong 60,566,841 44,367,902 6,479,576 22,678,515 Issuance of September
shares to 1, 2025
specific
individuals
with
restrictions and
capitalization
of reserves
Li Wen 39,839,853 39,839,853 0 0 -
Wuxi 9,461,250 9,461,250 0 0 -
Aochuang
Investment
LLP
Wuxi Aoli 4,667,550 4,667,550 0 0 -
Investment
LLP
Targets of 1,081,286 0 432,514 1,513,800 Equity August 29,
68 / 236
2024 Interim Report
2023 equity incentives with 2024
incentive lock-up August 29,
plan restrictions and 2025
capitalization August 29,
of reserves 2026
Total 115,616,780 98,336,555 6,912,090 24,192,315 / /
II. Shareholders
(i) Total number of shareholders
Total number of ordinary shareholders at the period end 13,479
Total number of preferred shareholders with restored voting rights at the period end 0
Total number of shareholders holding shares with special voting rights at the period end 0
Number of depositary receipt holders
□ Applicable √ N/A
(ii) Table of the top ten shareholders and top ten shareholders with unrestricted shares at the
period end
Top ten shareholders that hold shares through both regular securities accounts and margin
trading accounts
√ Applicable □ N/A
Unit: Share
Holdings of the top ten shareholders (excluding shares lent through securities financing transactions)
Shares pledged,
Type of
marked or
shareholders
Increase or frozen
Name of Num
decrease of Holding at Number of
sharehold Shareholding ber of
shares during the period restricted
ers (full ratio shares
the reporting end shares Num
name) lent Status
period ber
Ge 24,376,812 85,318,840 27.13 22,678,515 0 No 0 Domestic
Zhiyong natural
persons
Li Wen 15,964,921 55,877,225 17.77 0 0 No 0 Domestic
natural
persons
Wuxi 3,784,500 13,245,750 4.21 0 0 No 0 Others
Aochuan
g
Investme
nt LLP
Zhu 2,038,388 7,187,558 2.29 0 0 No 0 Domestic
Xionghui natural
persons
Hong 2,853,927 6,562,705 2.09 0 0 No 0 Others
Kong
Securities
Clearing
Company
Limited
Wuxi 1,867,020 6,534,570 2.08 0 0 No 0 Others
Aoli
69 / 236
2024 Interim Report
Investme
nt LLP
China 2,729,579 5,460,213 1.74 0 0 No 0 Others
Merchant
s Bank
Co., Ltd.
–
Foresight
Growth
Value
Hybrid
Securities
Investme
nt Fund
China 557,188 3,133,025 1.00 0 0 No 0 Others
Construct
ion Bank
Corporati
on – E
Fund
Innovatio
n-Driven
Flexible
Allocatio
n Hybrid
Securities
Investme
nt Fund
Tianjin 747,481 2,616,183 0.83 0 0 No 0 Others
Huaren
Investme
nt
Managem
ent Co.,
Ltd. –
Huaren
Huacheng
No. 2
Private
Securities
Investme
nt Fund
Agricultu 1,206,541 1,730,421 0.55 0 0 No 0 Others
ral Bank
of China
Limited –
CSI 500
Exchange
-Traded
Open-En
d Index
Securities
Investme
nt Fund
Holdings of the top ten shareholders with unrestricted shares (excluding shares lent through securities financing
transactions)
Name of shareholders Number of Type and number of shares
70 / 236
2024 Interim Report
unrestricted
Type Number
shares held
Ge Zhiyong Renminbi ordinary
62,640,325 62,640,325
shares
Li Wen Renminbi ordinary
55,877,225 55,877,225
shares
Wuxi Aochuang Investment LLP Renminbi ordinary
13,245,750 13,245,750
shares
Zhu Xionghui Renminbi ordinary
7,187,558 7,187,558
shares
Hong Kong Securities Clearing Company Limited Renminbi ordinary
6,562,705 6,562,705
shares
Wuxi Aoli Investment LLP Renminbi ordinary
6,534,570 6,534,570
shares
China Merchants Bank Co., Ltd. – Foresight Growth Renminbi ordinary
5,460,213 5,460,213
Value Hybrid Securities Investment Fund shares
China Construction Bank Corporation – E Fund Renminbi ordinary
Innovation-Driven Flexible Allocation Hybrid Securities 3,133,025 shares 3,133,025
Investment Fund
Tianjin Huaren Investment Management Co., Ltd. – Renminbi ordinary
Huaren Huacheng No. 2 Private Securities Investment 2,616,183 shares 2,616,183
Fund
Agricultural Bank of China Limited – CSI 500 Renminbi ordinary
Exchange-Traded Open-End Index Securities Investment 1,730,421 shares 1,730,421
Fund
Dedicated accounts for share buyback among top 10 N/A
shareholders
Explain if any of the shareholders above are involved in N/A
entrusting/being entrusted with voting rights or
waiving voting rights
Related parties or parties acting in concert among the Ge Zhiyong and Li Wen are parties acting in concert. Ge
shareholders above Zhiyong is the general partner and executive managing partner
of Wuxi Aochuang and Wuxi Aoli. Apart from these, the
Company is unaware of any related party relationships among
the aforementioned shareholders, or whether the
aforementioned shareholders are acting in concert as defined by
China’s measures for the administration of the acquisition of
listed companies.
Preferred shareholders with restored voting rights, and
N/A
their shareholding volume
Securities lending through securities financing transactions by shareholders holding 5% or more, top 10
shareholders, and top 10 shareholders of tradable shares
□ Applicable √ N/A
Changes in the top 10 shareholders and top 10 shareholders of tradable shares compared with the
previous period due to securities lending through financing transactions or return of lent securities
□ Applicable √ N/A
Top 10 shareholders with restricted shares, the number of shares held, and lock-up conditions
√ Applicable □ N/A
Unit: Share
Trading status of restricted shares
Number of
Name of shareholders with Number of Lock-up
No. restricted Trading eligibility
restricted shares shares eligible conditions
shares date
for trading
71 / 236
2024 Interim Report
1 Ge Zhiyong 22,678,515 September 1, 036 months from
2025 the completion of
the private
placement
Related parties or parties acting in Ge Zhiyong and Li Wen are parties acting in concert. Ge Zhiyong is the
concert general partner and executive managing partner of Wuxi Aochuang and
Wuxi Aoli.
Table of the top ten domestic depository receipt holders at the period end
□ Applicable √ N/A
Securities lending through securities financing transactions by holders of 5% or more depository receipts,
top 10 depository receipt holders, and top 10 holders of tradable depository receipts
□ Applicable √ N/A
Changes in the top 10 holders of depository receipts and top 10 holders of tradable depository receipts
compared with the previous period due to securities lending or return through securities financing
transactions
□ Applicable √ N/A
Top 10 holders with restricted depository receipts, the number of depository receipts held, and
lock-up conditions
□ Applicable √ N/A
(iii) Top ten shareholders by voting rights at the period end
□ Applicable √ N/A
(iv) Strategic investors or general legal entities becoming top ten shareholders due to new
shares/depository receipts
□ Applicable √ N/A
III. Board of Directors, Supervisors, Senior Management and Core Technical Personnel
(i) Changes in shareholding of current and former directors, supervisors, senior management, and
core technical personnel during the reporting period
√ Applicable □ N/A
Unit: Share
Changes in
Shares held at
Shares held at number of
Name Position the period Reasons for the change
the period end shares during
beginning
the period
Chairman and general
Ge Zhiyong 60,942,028 85,318,840 24,376,812 Capitalized capital reserves
manager
Director and deputy
Li Wen 39,912,304 55,877,225 15,964,921 Capitalized capital reserves
general manager
Capitalized capital reserves /
Director and financial
Yin Zhe 17,219 37,352 20,133 vesting of Type II restricted
director
shares
Director and Secretary Capitalized capital reserves /
Zhou Yongxiu of the Board of 25,194 48,517 23,323 vesting of Type II restricted
Directors shares
Capitalized capital reserves /
Liu Shiting Director 10,911 19,691 8,780 vesting of Type II restricted
shares
72 / 236
2024 Interim Report
Jia Yinghua Director 0 0 0 N/A
Sun Xinwei Independent director 0 0 0 N/A
Bo Yuming Independent director 0 0 0 N/A
Yang Jianhong Independent director 0 0 0 N/A
Capitalized capital reserves /
Deputy general
Liu Hantang 17,219 37,352 20,133 vesting of Type II restricted
manager
shares
Chairman of Board of
Chen Xia 0 0 0 N/A
Supervisors
Lv Jie Supervisor 0 0 0 N/A
Xu Zhongqiu Supervisor 0 0 0 N/A
Capitalized capital reserves /
Core technical
Ji Binbin 11,201 20,097 8,896 vesting of Type II restricted
personnel
shares
Capitalized capital reserves /
Core technical vesting of Type II restricted
Liu Wei 6,497 10,065 3,568
personnel shares / secondary market
trading
Capitalized capital reserves /
Core technical vesting of Type II restricted
Ma Hongwei 6,207 9,939 3,732
personnel shares / secondary market
trading
Capitalized capital reserves /
Core technical
Zhu Youwei 6,207 11,339 5,132 vesting of Type II restricted
personnel
shares
Capitalized capital reserves /
Core technical vesting of Type II restricted
Jiang Xuan 1,160 5,717 4,557
personnel shares / secondary market
trading
Capitalized capital reserves /
Core technical vesting of Type II restricted
Xie Zhijun 3,342 2,030 -1,312
personnel shares / secondary market
trading
Capitalized capital reserves /
Core technical vesting of Type II restricted
Tang Zhaoji 5797 9,505 3,708
personnel shares / secondary market
trading
Capitalized capital reserves /
Core technical
Yin Qinghui 10,476 19,082 8,606 vesting of Type II restricted
personnel
shares
Capitalized capital reserves /
Core technical
Wang Mei 6,371 11,392 5,021 vesting of Type II restricted
personnel
shares
Capitalized capital reserves /
Core technical
Jiang Weiguang 6,371 11,392 5,021 vesting of Type II restricted
personnel
shares
Capitalized capital reserves /
Core technical vesting of Type II restricted
Jiang Xiaolong 5,108 8,814 3,706
personnel shares / secondary market
trading
Other disclosures
Applicable √ N/A
73 / 236
2024 Interim Report
(ii) Equity incentives granted to directors, supervisors, senior management, and core technical
personnel during the reporting period
1. Stock options
Applicable √ N/A
2. Type I restricted shares
Applicable √ N/A
3. Type II restricted shares
Applicable √ N/A
(iii) Other remarks
Applicable √ N/A
IV. Changes of Controlling Shareholders or Actual Controllers
Applicable √ N/A
V. Implementation and Changes in Depositary Receipt Arrangements During the Reporting Period
Applicable √ N/A
VI. Shares with Special Voting Rights
Applicable √ N/A
74 / 236
2024 Interim Report
Section VIII Preferred Shares
Applicable √ N/A
75 / 236
2024 Interim Report
Section IX Bonds
I. Corporate Bonds (Including Enterprise Bonds) and Non-financial Corporate Debt Financing
Instruments
Applicable √ N/A
II. Convertible Bonds
√ Applicable N/A
(i) Issuance of convertible bonds
On July 22, 2023, the Company released an announcement to request approval from the CSRC for
the issuance of convertible bonds to unspecific investors, and then received the approval from the CSRC,
which was disclosed in another announcement – CSRC Approval No. [2023] 1523.
On August 10, 2023, the Company released the Indicative Announcement on the Issuance of
Convertible Bonds to Unspecific Investors by Wuxi Autowell Technology Co., Ltd. On August 10, 2023,
the Company issued 11.4 million convertible bonds to unspecific investors, with a nominal value of
RMB100 per bond and totaling RMB1.14 billion. After the approval was granted in the self-disciplinary
decision document from the SSE [2023] No. 196, the Company’s convertible bonds, totaling RMB1.14
billion were listed for trading on the SSE starting September 1, 2023, under the bond name “Autowell
Convertible Bond” and bond code “118042”.
(ii) Holders and guarantors of convertible bonds during the reporting period
Name of convertible bonds Autowell Convertible Bond
Number of CB holders at the period end 8,972
Guarantors of CBs N/A
Significant changes in the guarantor's profitability,
N/A
assets, and credit conditions
Top ten CB holders
CB holders Bonds held at the period Ratio (%)
end（Yuan）
Ge Zhiyong 161,473,000 14.16
Li Wen 112,223,000 9.84
Northwest Investment Management (HK) Limited – 54,912,000 4.82
Northwest Feilong Fund Limited
Wuxi Aochuang Investment LLP 48,278,000 4.24
China Minsheng Bank Co., Ltd. – Essence Stable 40,202,000 3.53
Growth Flexible Allocation Hybrid Securities
Investment Fund
UBSAG 36,776,000 3.23
DKMSFPI (Cayman) Ltd. – QFII 34,821,000 3.05
China Construction Bank Corporation – E Fund 33,244,000 2.92
Double Bond Enhanced Bond Securities Investment
Fund
Agricultural Bank of China Limited – Penghua 31,205,000 2.74
Convertible Bond Securities Investment Fund
Huaneng Guicheng Trust Co., Ltd. – Huaneng Trust 25,999,000 2.28
Xiyuan Yuexiang No.1 Collective Investment Trust
Plan
(iii) Changes in convertible bonds during the reporting period
Unit: Yuan, Currency: RMB
Before the Changes After the
Name of CBs
change Conversion Redemption Repurchase change
Autowell 1,140,000,000 24,000 0 0 1,139,976,000
Convertible
Bond
76 / 236
2024 Interim Report
(iv) Cumulative conversion of CBs during the reporting period
Names of CBs Autowell Convertible Bond
Value of bonds converted during the reporting period (RMB) 24,000
Number of shares converted during the reporting period 269
Cumulative number of shares converted 269
Cumulative conversion as a percentage of the total number of
0.000085%
shares issued before the conversion (%)
Unconverted amount (RMB) 1,139,976,000
Unconverted CBs as a percentage of total issuance (%) 99.997895
(v) Adjustments in conversion prices
Unit: Yuan, Currency: RMB
Names of CBs Autowell Convertible Bond
Adjusted
Disclosure
Date conversion Disclosure media Explanation
date
price
November 180.74 November http://www.sse.com.cn On October 31, 2023, the Company
2, 2023 2, 2023 completed the registration of shares
for the second vesting period of the
initial grant under the 2021
Restricted Stock Incentive Plan and
the first vesting period of the second
reserved grant. This led to an
increase in the Company’s total share
capital from 154,827,261 to
155,045,493. Starting from
November 2, 2023, the conversion
price was adjusted from RMB180.90
per share to RMB180.74 per share.
November 124.65 November http://www.sse.com.cn The Company’s plan for converting
17, 2023 17, 2023 capital reserve into shares in the first
half of 2023 is as follows. Based on
the total share capital recorded on the
equity distribution registration date
and excluding shares held in the
repurchase special account, the
Company plans to increase its capital
by 4.5 shares for every 10 shares
held by all shareholders. The equity
registration date for the distribution
is November 16, 2023, and the
ex-rights and ex-dividend date is
November 17, 2023. Due to this
capital increase involving
differentiated allotment, the
proportion of change in circulating
shares is calculated as 0.44997 after
adjusting for the total share capital
dilution. Starting from November 17,
2023, the conversion price was
adjusted from RMB180.74 per share
to RMB124.65 per share.
January 9, 124.62 January 9, http://www.sse.com.cn As the Company completed the
2024 2024 registration of shares for the second
vesting period of the first reserved
77 / 236
2024 Interim Report
grant and the first vesting period of
the reserved grant under the 2022
Restricted Stock Plan on January 4,
2024, the Company’s share capital
increased from 224,811,240 shares to
224,892,432 shares. Starting from
January 9, 2024, the conversion price
was adjusted from RMB124.65 per
share to RMB124.62 per share.
March 19, 124.75 March 16, http://www.sse.com.cn The Company changed the usage of
2024 2024 the 800,466 shares held in the
repurchase special account and
canceled them. After this
cancellation was completed, the
Company’s total share capital
decreased from 224,892,592 shares
to 224,092,126 shares. Starting from
March 19, 2024, the conversion price
was adjusted from RMB124.62 per
share to RMB124.75 per share.
May 20, 87.56 May 14, http://www.sse.com.cn As the Company completed the
2024 2024 registration of shares for the second
vesting period of the initial grant
under the 2022 Restricted Stock
Incentive Plan on April 18, 2024, the
Company’s total share capital
increased from 224,092,158 shares to
224,595,064 shares. In light of the
Company’s implementation of the
2023 annual equity distribution plan,
the Company capitalized its capital
reserves based on the total share
capital recorded on the equity
distribution record date. Starting
from May 20, 2024, the conversion
price was adjusted from RMB124.75
per share to RMB87.56 per share.
Latest conversion price 87.56
as of the reporting period
(vi) The Company’s debts, credit changes, and cash arrangements for future debt repayment
1. Debts
As of the end of the reporting period, the Company’s total asset was RMB14,947.29 million, total
liability was RMB10,781.85 million, and the debt-to-asset ratio was 72.13%.
2. Changes in credit
Based on a comprehensive analysis and assessment of the Company’s operating conditions and
related industrial performance, CSCI Pengyuan Credit Rating Limited issued the 2024 Rating Tracking
Report for 2023 Wuxi Autowell Technology Co., Ltd. Convertible Bond (Rating Tracking Report No.
[2024] Tracking No. [390] 01) on June 24, 2024. The rating results are as follows. The Company’s
credit rating was AA-, with a stable outlook. The rating for the Autowell Convertible Bonds was also
AA-. There was no change in the rating results compared with the previous assessment.
3. Cash arrangements for future debt repayment
In the future, the funds for repaying the principal and interest of these convertible bonds will
mainly come from the cash flows generated by the Company’s operating activities. Currently, the
company is operating normally with a relatively reasonable asset structure, and faces low financial
pressure overall with no repayment risk.
78 / 236
2024 Interim Report
(vii) Other disclosure for the convertible bonds
On May 28, 2024, the Company released the Announcement of Wuxi Autowell Technology Co., Ltd.
Regarding Not Lowering the Conversion Price of Autowell Convertible Bonds. As of May 27, 2024, the
Company’s stock price had triggered the downward adjustment clause for the conversion price of the
“Autowell Convertible Bonds”. After deliberation by the Company’s third Board of Directors at its 53rd
meeting, the board decided not to lower the conversion price of the “Autowell Convertible Bonds” at
this time. Additionally, within the next six months (from the date of this announcement until November
27, 2024), if the conditions for a downward adjustment of the conversion price are met again, no
adjustment proposal will be made.
79 / 236
2024 Interim Report
Section X Financial Report
I. Audit Report
Applicable √ N/A
II. Financial Statements
Consolidated Balance Sheet
June 30, 2024
Prepared by无锡奥特维科技股份有限公司
Unit: Yuan, Currency: RMB
Item Note June 30, 2024 December 31, 2023
Current assets:
Cash and cash equivalents VII.1 1,986,152,007.20 1,831,908,759.02
Settlement provisions
Placements with banks and
other financial institutions
Trading financial assets VII.2 220,055,388.89 1,013,130,849.65
Derivative financial assets
Notes receivable
Accounts receivable VII.5 2,197,025,477.43 1,591,755,715.37
Accounts receivable VII.7
593,758,687.62 1,399,734,854.14
financing
Advances to suppliers VII.8 168,103,926.36 148,511,350.80
Premium receivable
Reinsurance receivable
Reserves receivable under
reinsurance contracts
Other receivables VII.9 49,474,649.42 66,611,598.53
Of which: Interest receivable
Dividends receivable
Financial assets under resale
agreements
Inventories VII.10 7,340,248,121.92 7,629,583,282.50
Of which: Data resources
Contract assets
Assets held for sale
Non-current assets due within
one year
Other current assets VII.13 118,975,380.81 78,299,342.53
Total current assets 12,673,793,639.65 13,759,535,752.54
Non-current assets:
Issuing of loans and advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity VII.17
3,336,396.44 3,340,670.41
investments
Other equity investments
Other non-current financial VII.19
161,131,813.17 185,271,024.08
assets
Investment property
80 / 236
2024 Interim Report
Fixed assets VII.21 915,271,218.04 942,742,926.56
Construction in progress VII.22 593,113,483.75 152,486,136.51
Productive biological assets
Oil and gas assets
Right-of-use assets VII.25 98,971,710.54 111,527,510.58
Intangible assets VII.26 179,488,910.12 183,348,881.80
Of which: Data resources
Development expenditure
Of which: Data resources
Goodwill VII.27 63,617,712.01 63,617,712.01
Long-term deferred expenses VII.28 70,240,619.89 65,333,228.01
Deferred income tax assets VII.29 137,826,831.79 109,367,225.11
Other non-current assets VII.30 50,495,893.14 40,915,377.17
Total non-current assets 2,273,494,588.89 1,857,950,692.24
Total assets 14,947,288,228.54 15,617,486,444.78
Current liabilities:
Short-term borrowings VII.32 664,740,197.66 519,737,547.82
Borrowings from the central
bank
Placements from banks and
other financial institutions
Trading financial liabilities
Derivative financial liabilities
Notes payable VII.35 1,636,788,317.21 2,333,742,472.90
Accounts payable VII.36 3,235,214,998.79 3,243,847,123.75
Advances from customers
Contract liabilities VII.38 3,261,471,207.28 3,906,972,602.22
Financial assets sold under
repurchase agreements
Due to customers and banks
Customer brokerage deposits
Securities underwriting
brokerage deposits
Employee benefits payable VII.39 140,291,789.18 184,008,109.90
Taxes payable VII.40 144,798,157.22 155,412,912.46
Other payables VII.41 91,318,741.58 116,701,241.64
Of which: Interest payable
Dividends payable 2,300,000.00
Fees and commissions
payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due VII.43
129,549,089.73 145,205,892.87
within one year
Other current liabilities 8,569,188.87 4,333,632.85
Total current liabilities 9,312,741,687.52 10,609,961,536.41
Non-current liabilities:
Insurance contract reserves
Long-term borrowings VII.45 319,027,747.75 141,007,258.34
Bonds payable VII.46 998,084,628.12 969,066,247.00
Of which: Preferred shares
Perpetual bonds
Lease liabilities VII.47 47,729,397.47 55,020,903.15
81 / 236
2024 Interim Report
Long-term payables
Long-term employee benefits
payable
Provisions VII.50 32,355,137.07 20,642,029.65
Deferred income VII.51 1,728,852.96 1,974,389.69
Deferred income tax VII.29
70,179,374.41 75,825,231.59
liabilities
Other non-current liabilities
Total non-current
1,469,105,137.78 1,263,536,059.42
liabilities
Total liabilities 10,781,846,825.30 11,873,497,595.83
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share VII.53
314,433,090.00 224,811,240.00
capital)
Other equity instruments VII.54 155,721,138.64 155,724,995.61
Of which: Preferred shares
Perpetual bonds
Capital reserves VII.55 1,307,482,433.37 1,408,941,067.90
Less: Treasury shares VII.56 74,571,400.00 143,163,605.08
Other comprehensive income VII.57 -1,442,470.28 401,818.53
Special reserves VII.58 12,858,441.36 8,543,300.96
Surplus reserves VII.59 157,216,545.00 112,405,620.00
Provisions for general risks
Undistributed profits VII.60 2,172,580,158.71 1,896,492,333.37
Total equity attributable to
equity holders of the parent
company (or shareholders’ 4,044,277,936.80 3,664,156,771.29
equity attributable to the parent
company)
Non-controlling interests 121,163,466.44 79,832,077.66
Total owners’ equity (or
4,165,441,403.24 3,743,988,848.95
shareholders’ equity)
Total liabilities and
owners’ equity (or 14,947,288,228.54 15,617,486,444.78
shareholders’ equity)
Company representative: 葛志勇 Chief accountant: 殷哲 Head of the accounting
department: 李锴
Balance Sheet of the Parent Company
June 30, 2024
Prepared by无锡奥特维科技股份有限公司
Unit: Yuan, Currency: RMB
Item Note June 30, 2024 December 31, 2023
Current assets:
Cash and cash equivalents 1,231,141,661.71 985,319,543.87
Trading financial assets 220,055,388.89 1,001,099,444.44
Derivative financial assets
Notes receivable
Accounts receivable XIX.1 1,595,643,642.63 1,184,707,353.14
Accounts receivable
355,600,402.08 835,453,200.46
financing
Advances to suppliers 55,441,374.74 27,245,799.70
Other receivables XIX.2 1,503,138,972.94 1,169,349,500.49
82 / 236
2024 Interim Report
Of which: Interest receivable
Dividends receivable
Inventories 3,008,607,384.30 3,845,809,410.02
Of which: Data resources
Contract assets
Assets held for sale
Non-current assets due within
one year
Other current assets 1,269,854.05
Total current assets 7,970,898,681.34 9,048,984,252.12
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity XIX.3
590,082,131.95 523,401,796.42
investments
Other equity investments
Other non-current financial
161,131,813.17 185,271,024.08
assets
Investment property
Fixed assets 807,174,727.85 827,915,209.08
Construction in progress 587,492,228.86 146,864,008.79
Productive biological assets
Oil and gas assets
Right-of-use assets 51,760,450.72 64,564,617.48
Intangible assets 129,443,656.48 131,385,467.65
Of which: Data resources
Development expenditure
Of which: Data resources
Goodwill
Long-term deferred expenses 31,645,833.15 27,308,498.16
Deferred income tax assets 54,832,616.02 48,399,593.58
Other non-current assets 25,930,014.79 27,438,193.77
Total non-current assets 2,439,493,472.99 1,982,548,409.01
Total assets 10,410,392,154.33 11,031,532,661.13
Current liabilities:
Short-term borrowings 378,149,483.57 312,851,615.95
Trading financial liabilities
Derivative financial liabilities
Notes payable 960,588,488.48 1,409,662,258.54
Accounts payable 1,456,826,750.56 1,733,125,929.44
Advances from customers
Contract liabilities 1,512,764,123.29 1,992,068,329.33
Employee benefits payable 81,146,668.28 110,988,159.37
Taxes payable 118,886,284.90 135,719,986.12
Other payables 124,160,897.95 119,030,837.35
Of which: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due
86,912,619.87 113,839,333.42
within one year
Other current liabilities
Total current liabilities 4,719,435,316.90 5,927,286,449.52
Non-current liabilities:
83 / 236
2024 Interim Report
Long-term borrowings 319,027,747.75 141,007,258.34
Bonds payable 998,084,628.12 969,066,247.00
Of which: Preferred shares
Perpetual bonds
Lease liabilities 29,881,843.03 33,555,099.76
Long-term payables
Long-term employee benefits
payable
Provisions 22,286,981.29 15,405,188.20
Deferred income 635,840.46 881,377.19
Deferred income tax
53,387,900.75 61,234,880.67
liabilities
Other non-current liabilities
Total non-current
1,423,304,941.40 1,221,150,051.16
liabilities
Total liabilities 6,142,740,258.30 7,148,436,500.68
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share
314,433,090.00 224,811,240.00
capital)
Other equity instruments 155,721,138.64 155,724,995.61
Of which: Preferred shares
Perpetual bonds
Capital reserves 1,263,854,468.61 1,365,266,540.25
Less: Treasury shares 74,571,400.00 143,163,605.08
Other comprehensive income
Special reserves 8,332,298.36 5,835,898.59
Surplus reserves 157,216,545.00 112,405,620.00
Undistributed profits 2,442,665,755.42 2,162,215,471.08
Total owners’ equity (or
4,267,651,896.03 3,883,096,160.45
shareholders’ equity)
Total liabilities and
owners’ equity (or 10,410,392,154.33 11,031,532,661.13
shareholders’ equity)
Company representative: 葛志勇 Chief accountant: 殷哲 Head of the accounting
department: 李锴
Consolidated Income Statement
January–June 2024
Unit: Yuan, Currency: RMB
Item Note Semi-Annual 2024 Semi-Annual 2023
Ⅰ. Total operating income 4,417,698,117.26 2,517,486,369.86
Of which: Operating income VII.61 4,417,698,117.26 2,517,486,369.86
Interest income
Earned premiums
Income from fees and
commissions
Ⅱ. Total operating costs 3,381,419,367.38 1,955,254,543.88
Of which: Operating costs VII.61 2,924,028,824.33 1,595,013,807.86
Interest expenditure
Expenditure of fees and
commissions
Refunded premiums
Net claims paid
84 / 236
2024 Interim Report
Net provision for insurance
liability reserves
Policyholder dividends paid
Reinsurance expenses
Taxes and surcharges VII.62 30,677,330.25 31,036,940.01
Selling expenses VII.63 78,521,303.44 84,452,859.24
Administrative expenses VII.64 157,714,200.42 109,488,543.37
R&D expenses VII.65 178,114,245.75 130,002,217.29
Financial expenses VII.66 12,363,463.19 5,260,176.11
Of which: Interest expenses 22,306,651.86 10,825,832.63
Interest income 6,806,134.18 3,442,183.96
Add: Other income VII.67 97,792,783.11 72,288,115.01
Investment income (losses VII.68
4,604,756.63 10,261,424.43
indicated by “-”)
Of which: Share of profits of
associates and joint ventures
Gains on derecognition
of financial assets measured at
amortized cost (losses indicated by
“-”)
Foreign exchange gains (losses
indicated by “-”)
Net hedging gains (losses
indicated by “-”)
Gains on fair value changes VII.70
-24,009,988.68 3,541,871.52
(losses indicated by “-”)
Credit impairment losses VII.72
-79,917,190.37 -19,165,340.18
(losses indicated by “-”)
Asset impairment losses VII.73
-86,934,706.66 -26,919,530.72
(losses indicated by “-”)
Gains on disposal of assets VII.71
-154,897.44
(losses indicated by “-”)
Ⅲ. Operating profit (losses indicated
947,659,506.47 602,238,366.04
by “-”)
Add: Non-operating income VII.74 795,790.15 795,498.02
Less: Non-operating expenditure VII.75 1,187,306.29 7,853,480.51
Ⅳ. Total profit (total loss indicated by
947,267,990.33 595,180,383.55
“-”)
Less: Income tax expenses VII.76 143,679,306.72 80,142,101.93
Ⅴ. Net profit (net loss indicated by
803,588,683.61 515,038,281.62
“-”)
(i) Classified by continuity of operations
1. Net profit from continuing
803,588,683.61 515,038,281.62
operations (net loss indicated by “-”)
2. Net profit from discontinued
operations (net loss indicated by “-”)
(ii) Classified by ownership
1. Net profit attributable to
shareholders of the parent company 769,082,688.50 522,523,778.99
(net loss indicated by “-”)
2. Profit or loss attributable to
non-controlling interests (net loss 34,505,995.11 -7,485,497.37
indicated by “-”)
Ⅵ. Other comprehensive income, net
of tax
85 / 236
2024 Interim Report
(i) Other comprehensive income VII.57
attributable to equity holders of the 1,442,470.28
parent company, net of tax
1. Other comprehensive income
that cannot be reclassified to profit or
loss
(1) Changes in remeasurements of
defined benefit plans
(2) Other comprehensive income
under equity method that cannot be
reclassified to profit or loss
(3) Changes in fair value of other
equity investments
(4) Changes in fair value due to own
credit risk
2. Other comprehensive income
that will be reclassified to profit or 1,442,470.28
loss
(1) Other comprehensive income
under the equity method that can be
reclassified to profit or loss
(2) Changes in fair value of other debt
investments
(3) Amounts recorded under other
comprehensive income due to
reclassification of financial assets
(4) Provision for credit impairment of
other debt investments
(5) Cash flow hedge reserves
(6) Foreign currency translation
1,442,470.28
differences
(7) Others
(ii) Other comprehensive income
attributable to non-controlling
interests, net of tax
Ⅶ. Total comprehensive income 805,031,153.89 515,038,281.62
(i) Total comprehensive income
attributable to equity holders of the 770,525,158.79 522,523,778.99
parent company
(ii) Total comprehensive income
34,505,995.10 -7,485,497.37
attributable to non-controlling interests
VIII. Earnings per share:
(i) Basic earnings per share
2.45 1.66
(Yuan/share)
(ii) Diluted earnings per 2.35 1.66
share(Yuan/share)
Earnings per share for the half year of 2023 represents the amount recalculated on the basis of the
company’s share capital as at the end of the current period.
In the current period, a business combination under common control occurred, and the net profit realized
by the acquiree before the combination was RMB0, and the net profit realized by it in the previous
period was RMB0.
Company representative: 葛志勇 Chief accountant: 殷哲 Head of the accounting
department: 李锴
86 / 236
2024 Interim Report
Income Statement of the Parent Company
January–June 2024
Unit: Yuan, Currency: RMB
Item Note Semi-Annual 2024 Semi-Annual 2023
Ⅰ. Operating income XIX.4 3,328,114,043.88 2,060,728,910.40
Less: Operating costs XIX.4 2,136,182,672.72 1,254,386,022.42
Taxes and surcharges 21,349,151.57 26,717,715.20
Selling expenses 47,489,784.02 64,541,861.72
Administrative expenses 105,562,114.85 83,443,196.06
R&D expenses 75,172,832.83 64,449,609.72
Financial expenses -8,397,017.21 4,935,616.67
Of which: Interest expenses 15,437,179.12 6,718,438.07
Interest income 24,663,324.81 2,431,692.32
Add: Other income 62,338,112.53 63,815,554.10
Investment income (losses XIX.5
4,285,536.94 6,515,476.86
indicated by “-”)
Of which: Share of profits of
associates and joint ventures
Gains on derecognition
of financial assets measured at
amortized cost (losses indicated by
“-”)
Net hedging gains (losses
indicated by “-”)
Gains on fair value changes
-24,009,988.68 3,339,129.85
(losses indicated by “-”)
Credit impairment losses
-66,046,037.65 -14,908,995.79
(losses indicated by “-”)
Asset impairment losses
-23,362,220.03 -3,599,671.02
(losses indicated by “-”)
Gains on disposal of assets
-154,897.44
(losses indicated by “-”)
II. Operating profit (losses indicated
903,805,010.77 617,416,382.61
by “-”)
Add: Non-operating income 458,837.20 541,133.40
Less: Non-operating expenditure 1,144,165.09 7,716,498.48
III. Total profit (total loss indicated by
903,119,682.88 610,241,017.53
“-”)
Less: Income tax expenses 129,674,535.38 88,945,265.31
IV. Net profit (net loss indicated by
773,445,147.50 521,295,752.22
“-”)
(i) Net profit from continuing
773,445,147.50 521,295,752.22
operations (net loss indicated by “-”)
(ii) Net profit from discontinued
operations (net loss indicated by “-”)
V. Other comprehensive income, net of
tax
(i) Other comprehensive income
that cannot be reclassified to profit or
loss
1. Changes in remeasurements of
defined benefit plans
2. Other comprehensive income
under equity method that cannot be
reclassified to profit or loss
87 / 236
2024 Interim Report
3. Changes in fair value of other
equity investments
4. Changes in fair value due to
own credit risk
(ii) Other comprehensive income
that will be reclassified to profit or
loss
1. Other comprehensive income
under the equity method that can be
reclassified to profit or loss
2. Changes in fair value of other
debt investments
3. Amounts recorded under other
comprehensive income due to
reclassification of financial assets
4. Provision for credit impairment
of other debt investments
5. Cash flow hedge reserves
6. Foreign currency translation
differences
7. Others
Ⅵ. Total comprehensive income 773,445,147.50 521,295,752.22
VII. Earnings per share:
(i) Basic earnings per share
(Yuan/share)
(ii) Diluted earnings per
share(Yuan/share)
Company representative: 葛志勇 Chief accountant: 殷哲 Head of the accounting
department: 李锴
Consolidated Cash Flow Statement
January–June 2024
Unit: Yuan, Currency: RMB
Item Note Semi-Annual 2024 Semi-Annual 2023
Ⅰ. Cash flows from operating
activities:
Cash received from sales of
3,050,053,201.78 2,093,832,526.85
goods and rendering of services
Net increase in customer
deposits and deposits from other
banks
Net increase in borrowings
from the central bank
Net increase in placements
from other financial institutions
Cash received from premiums
under original insurance contracts
Net cash received from
reinsurance business
Net increase in policyholder
deposits and investments
88 / 236
2024 Interim Report
Cash received from interest,
fees, and commissions
Net increase in placements
from banks and other financial
institutions
Net increase in proceeds from
repurchase transactions
Net cash received from
customer brokerage deposits
Cash received from tax refunds 149,664,652.21 98,071,947.58
Cash received from other VII.78
76,996,871.33 56,016,037.53
operating activities
Subtotal of cash inflows from
3,276,714,725.32 2,247,920,511.96
operating activities
Cash paid for purchasing goods
2,134,430,902.65 1,090,823,951.94
and receiving services
Net increase in customer loans
and advances
Net increase in deposits with
the central bank and other banks
Cash paid for claims under
original insurance contracts
Net increase in placement with
banks and other financial
institutions
Cash paid for interest, fees, and
commissions
Cash paid for policyholder
dividends
Cash paid to and for employees 546,187,396.25 404,057,565.36
Cash paid for taxes 415,227,105.10 322,533,186.29
Cash paid for other operating VII.78
190,580,419.83 161,609,556.26
activities
Subtotal of cash outflows
3,286,425,823.83 1,979,024,259.85
from operating activities
Net cash flows from
-9,711,098.51 268,896,252.11
operating activities
Ⅱ. Cash flows from investing
activities:
Cash received from the disposal
2,866,000,000.00 4,261,900,000.00
of investments
Cash received from investment
16,859,229.38 15,233,134.23
income
Net cash received from disposal
of fixed assets, intangible assets, 6,000.00 33,290.00
and other long-term assets
Net cash received from the
disposal of subsidiaries and other
operations
Cash received from other VII.78
9,695,092.03
investing activities
Subtotal of cash inflows from
2,882,865,229.38 4,286,861,516.26
investing activities
Cash paid for acquisition and
construction of fixed assets, 406,367,781.11 320,862,510.53
intangible assets, and other
89 / 236
2024 Interim Report
long-term assets
Cash paid for investments 2,100,762,628.16 3,829,640,000.00
Net increase in pledged loans
Net cash paid for acquiring
subsidiaries and other operations
Cash paid for other investing
activities
Subtotal of cash outflows
2,507,130,409.27 4,150,502,510.53
from investing activities
Net cash flows from
375,734,820.11 136,359,005.73
investing activities
III. Cash flows from financing
activities:
Cash received from equity
7,983,308.00 27,715,382.00
investments
Of which: Cash received by
subsidiaries from equity
6,483,308.00 27,715,382.00
investments by non-controlling
shareholders
Cash received from borrowings 317,976,242.40 119,500,000.00
Cash received from other VII.78
25,375,480.36 26,708,085.76
financing activities
Subtotal of cash inflows from
351,335,030.76 173,923,467.76
financing activities
Cash paid for repayment of
77,220,000.00 191,200,000.00
debts
Cash paid for dividends, profit
455,240,307.66 251,441,204.44
distributions, or interest payments
Of which: Dividends and
profits paid by subsidiaries to
non-controlling shareholders
Cash paid for other financing VII.78
34,972,012.68 175,256,352.36
activities
Subtotal of cash outflows
567,432,320.34 617,897,556.80
from financing activities
Net cash flows from
-216,097,289.58 -443,974,089.04
financing activities
Ⅳ. Effects of exchange rate
fluctuation on cash and cash 10,867,322.50 1,134,727.34
equivalents
V. Net increase in cash and cash
160,793,754.52 -37,584,103.86
equivalents
Add: Opening balance of cash
1,520,761,970.93 597,816,992.50
and cash equivalents
Ⅵ. Closing balance of cash and
1,681,555,725.45 560,232,888.64
cash equivalents
Company representative: 葛志勇 Chief accountant: 殷哲 Head of the accounting
department: 李锴
Cash Flows Statement of the Parent Company
January–June 2024
Unit: Yuan, Currency: RMB
Item Note Semi-Annual 2024 Semi-Annual 2023
Ⅰ. Cash flows from operating
activities:
90 / 236
2024 Interim Report
Cash received from sales of
2,416,515,866.24 1,552,869,252.19
goods and rendering of services
Cash received from tax refunds 51,117,053.57 60,713,050.02
Cash received from other
48,425,237.05 81,845,396.67
operating activities
Subtotal of cash inflows
2,516,058,156.86 1,695,427,698.88
from operating activities
Cash paid for purchasing
1,311,805,982.81 729,314,252.80
goods and receiving services
Cash paid to and for
321,889,379.17 254,275,210.96
employees
Cash paid for taxes 317,393,554.57 300,388,712.12
Cash paid for other operating
114,755,520.38 147,738,908.87
activities
Subtotal of cash outflows
2,065,844,436.93 1,431,717,084.75
from operating activities
Net cash flows from operating
450,213,719.93 263,710,614.13
activities
Ⅱ. Cash flows from investing
activities:
Cash received from the
2,700,000,000.00 3,838,900,001.00
disposal of investments
Cash received from investment
16,412,264.76 14,268,687.53
income
Net cash received from
disposal of fixed assets,
5,325.00 29,270.00
intangible assets, and other
long-term assets
Net cash received from the
disposal of subsidiaries and other
operations
Cash received from other
10,000,000.00 66,500,000.00
investing activities
Subtotal of cash inflows
2,726,417,589.76 3,919,697,958.53
from investing activities
Cash paid for acquisition and
construction of fixed assets,
401,575,285.97 310,956,237.17
intangible assets, and other
long-term assets
Cash paid for investments 1,977,466,754.16 3,437,390,000.00
Net cash paid for acquiring
subsidiaries and other operations
Cash paid for other investing
256,500,000.00 112,000,000.00
activities
Subtotal of cash outflows
2,635,542,040.13 3,860,346,237.17
from investing activities
Net cash flows from
90,875,549.63 59,351,721.36
investing activities
III. Cash flows from financing
activities:
Cash received from equity
investments
Cash received from
216,276,242.40 69,600,000.00
borrowings
Cash received from other
25,375,480.36 26,708,084.76
financing activities
91 / 236
2024 Interim Report
Subtotal of cash inflows
241,651,722.76 96,308,084.76
from financing activities
Cash paid for repayment of
51,300,000.00 128,200,000.00
debts
Cash paid for dividends, profit
distributions, or interest 452,076,647.44 249,626,418.57
payments
Cash paid for other financing
21,201,753.51 165,062,115.56
activities
Subtotal of cash outflows
524,578,400.95 542,888,534.13
from financing activities
Net cash flows from
-282,926,678.19 -446,580,449.37
financing activities
Ⅳ. Effects of exchange rate
fluctuation on cash and cash 8,817.29 1,085.45
equivalents
V. Net increase in cash and
258,171,408.66 -123,517,028.43
cash equivalents
Add: Opening balance of cash
820,719,064.27 487,231,217.84
and cash equivalents
Ⅵ. Closing balance of cash and
1,078,890,472.93 363,714,189.41
cash equivalents
Company representative: 葛志勇 Chief accountant: 殷哲 Head of the accounting
department: 李锴
92 / 236
2024 Interim Report
Consolidated Statement of Changes in Equity
January–June 2024
Unit: Yuan, Currency: RMB
Semi-Annual 2024
Equity attributable to equity holders of the parent company
Other equity
Paid-in instruments Non-contro Total
Item
Provisions for
Other
general risks
capital Less: Undistrib lling owners’
Others
Capital comprehen Special Surplus interests equity
(or Treasury uted Subtotal
Perpetual
Preferred
Othe reserves sive reserves reserves
shares
bonds
share shares profits
rs income
capital
)
Ⅰ. Closing
balance of 155,7
224,811, 1,408,941,067.9 143,163,605.0 112,405,620.0 1,896,492, 3,664,156, 3,743,988,848.9
the 24,99 401,818.53 8,543,300.96 79,832,077.66
240.00 0 8 0 333.37 771.29 5
previous 5.61
year
Add:
Changes in
- -
accounting
policies
Corre
ction of
prior - -
period
errors
Other
- -
s
Ⅱ. Opening
155,7
balance of 224,811, 1,408,941,067.9 143,163,605.0 112,405,620.0 1,896,492, 3,664,156, 3,743,988,848.9
- - 24,99 401,818.53 8,543,300.96 - - 79,832,077.66
the current 240.00 0 8 0 333.37 771.29 5
5.61
year
Ⅲ.
Amount of
changes
during the
89,621,8 -3,856 -68,592,205.0 -1,844,288.8 276,087,82 380,121,1
current - - -101,458,634.53 4,315,140.40 44,810,925.00 - - 41,331,388.78 421,452,554.29
50.00 .97 8 1 5.34 65.51
period
(decreases
indicated
by “-”)
(i) Total -1,844,288.8 769,082,68 767,238,3 34,505,995.11 801,744,394.80
93 / 236
2024 Interim Report
comprehen 1 8.50 99.69
sive
income
(ii) Capital
contributed
584,290. -3,856 56,751,56
or - - 59,192,562.25 3,021,431.70 - - - - - - 8,038,925.21 64,790,488.79
00 .97 3.58
withdrawn
by owners
1. Ordinary
shares 584,098. 26,413,17
28,850,511.76 3,021,431.70 7,983,308.00 34,396,486.06
contributed 00 8.06
by owners
2. Capital
contributed
by holders
-3,856
of other 192.00 23,658.81 19,993.84 19,993.84
.97
equity
instrument
s
3.
Share-base
d payments 30,318,39
30,318,391.68 2,733,013.34 33,051,405.02
recognized 1.68
as owners’
equity
4. Others - -2,677,396.13 -2,677,396.13
(iii) Profit -492,994,8 -448,183, -450,483,938.1
- - - - - - - - 44,810,925.00 - - -2,300,000.00
distribution 63.16 938.16 6
1. Transfer
-44,810,92
to surplus 44,810,925.00 - -
5.00
reserves
2. Transfer
to general
- -
risk
reserves
3.
Distributio
ns to -448,183,9 -448,183, -450,483,938.1
-2,300,000.00
owners (or 38.16 938.16 6
shareholde
rs)
4. Others - -
(iv)
Transfers 89,037,5 -71,613,636.7
- - - -160,651,196.78 - - - - - - - - -
within 60.00 8
equity
1. Capital
89,838,0
reserves -89,838,026.00 - -
26.00
transferred
94 / 236
2024 Interim Report
to capital
(or share
capital)
2. Surplus
reserves
transferred
- -
to capital
(or share
capital)
3. Surplus
reserves
used to - -
offset
losses
4.
Remeasure
ments of
defined
benefit - -
plans
transferred
to retained
earnings
5. Other
comprehen
sive
income - -
transferred
to retained
earnings
6. Others -800,466 -71,613,636.7
-70,813,170.78 - -
.00 8
(v) Special 4,315,140.
- - - - - - - 4,315,140.40 - - - - 1,086,468.46 5,401,608.86
reserves 40
1.
Provision
6,440,251.
in the 6,440,251.47 1,086,468.46 7,526,719.93
47
current
period
2.
Utilization
-2,125,111.0 -2,125,11
in the -2,125,111.07
7 1.07
current
period
(vi) Others - -
Ⅳ. Current 155,7
314,433, 1,307,482,433.3 -1,442,470.2 12,858,441.3 157,216,545.0 2,172,580, 4,044,277, 121,163,466.4 4,165,441,403.2
closing - - 21,13 74,571,400.00 - -
090.00 7 8 6 0 158.71 936.80 4 4
balance 8.64
95 / 236
2024 Interim Report
Semi-Annual 2023
Equity attributable to equity holders of the parent company
Other equity
Provisions for general
Other comprehensive
instruments
Item Non-controllin Total owners’
Paid-in capital Other g interests equity
income
Others
Less: Treasury Surplus Undistributed
risks
(or share Capital reserves comprehensiv Subtotal
Perpetual
Preferred
Others
shares reserves profits
shares
bonds
capital) e income
Ⅰ. Closing
154,470,010.0 1,418,290,574.8 77,235,005.0 2,571,348,088.0 2,589,054,897.8
balance of the 921,352,498.22 17,706,809.80
0 0 0 2 2
previous year
Add: Changes in
accounting 430,386.33 430,386.33 41,926.81 472,313.14
policies
Correction
of prior period
errors
Others
Ⅱ. Opening
154,470,010.0 1,418,290,574.8 77,235,005.0 2,571,778,474.3 2,589,527,210.9
balance of the 921,782,884.55 17,748,736.61
0 0 0 5 6
current year
Ⅲ. Amount of
changes during
the current 149,845,276.5
357,251.00 62,755,950.29 4,188,034.01 178,625.50 276,401,539.73 194,036,123.99 28,541,273.94 222,577,397.93
period 4
(decreases
indicated by “-”)
(i) Total
comprehensive 522,523,778.99 522,523,778.99 -7,485,497.37 515,038,281.62
income
(ii) Capital
contributed or 149,845,276.5
357,251.00 62,755,950.29 -86,732,075.25 35,596,371.36 -51,135,703.89
withdrawn by 4
owners
1. Ordinary
shares 149,845,276.5
357,251.00 26,350,833.76 -123,137,191.78 42,198,927.80 -80,938,263.98
contributed by 4
owners
2. Capital
contributed by
holders of other
equity
instruments
96 / 236
2024 Interim Report
3. Share-based
payments
28,092,917.25 28,092,917.25 1,709,641.84 29,802,559.09
recognized as
owners’ equity
4. Others 8,312,199.28 8,312,199.28 -8,312,198.28 1.00
(iii) Profit
178,625.50 -246,122,239.26 -245,943,613.76 -245,943,613.76
distribution
1. Transfer to
178,625.50 -178,625.50
surplus reserves
2. Transfer to
general risk
reserves
3. Distributions
to owners (or -245,943,613.76 -245,943,613.76 -245,943,613.76
shareholders)
4. Others
(IV) Transfers
within equity
1. Capital
reserves
transferred to
capital (or share
capital)
2. Surplus
reserves
transferred to
capital (or share
capital)
3. Surplus
reserves used to
offset losses
4.
Remeasurement
s of defined
benefit plans
transferred to
retained
earnings
5. Other
comprehensive
income
transferred to
retained
earnings
6. Others
(v) Special
4,188,034.01 4,188,034.01 430,399.95 4,618,433.96
reserves
1. Provision in
4,188,034.01 4,188,034.01 430,399.95 4,618,433.96
the current
97 / 236
2024 Interim Report
period
2. Utilization in
the current
period
(vi) Others
Ⅳ. Current 154,827,261.0 1,481,046,525.0 149,845,276.5 77,413,630.5 1,198,184,424.2 2,765,814,598.3 2,812,104,608.8
4,188,034.01 46,290,010.55
closing balance 0 9 4 0 8 4 9
Company representative: 葛志勇 Chief accountant: 殷哲 Head of the accounting department: 李锴
Statement of Changes in Equity of the Parent Company
January–June 2024
Unit: Yuan, Currency: RMB
Semi-Annual 2024
Paid-in Other equity instruments Less: Other Total
Item Capital Special Surplus Undistribute
capital (or Treasury comprehensi owners’
Preferred Perpetual reserves reserves reserves d profits
share capital) Others shares ve income equity
shares bonds
Ⅰ. Closing balance of the previous 224,811,240. 155,724,995.6 1,365,266,54 143,163,605. 112,405,620. 2,162,215,47 3,883,096,16
5,835,898.59
year 00 1 0.25 08 00 1.08 0.45
Add: Changes in accounting policies
Correction of prior period
errors
Others
Ⅱ. Opening balance of the current 224,811,240. 155,724,995.6 1,365,266,54 143,163,605. 112,405,620. 2,162,215,47 3,883,096,16
5,835,898.59
year 00 1 0.25 08 00 1.08 0.45
Ⅲ. Amount of changes during the
89,621,850.0 -101,412,071 -68,592,205.0 44,810,925.0 280,450,284. 384,555,735.
current period (decreases indicated -3,856.97 2,496,399.77
0 .64 8 0 34 58
by “-”)
(i) Total comprehensive income 773,445,147. 773,445,147.
50 50
(ii) Capital contributed or withdrawn 59,239,125.1 56,798,126.4
584,290.00 -3,856.97 3,021,431.70
by owners 4 7
1. Ordinary shares contributed by 28,850,511.7 26,413,178.0
584,098.00 3,021,431.70
owners 6 6
2. Capital contributed by holders of
192.00 -3,856.97 23,658.81 19,993.84
other equity instruments
3. Share based payments recognized 30,364,954.5 30,364,954.5
as owners’ equity 7 7
4. Others
(iii) Profit distribution 44,810,925.0 -492,994,86 -448,183,938
0 3.16 .16
1. Transfer to surplus reserves 44,810,925.0 -44,810,925.
0 00
2. Distributions to owners (or -448,183,93 -448,183,938
shareholders) 8.16 .16
98 / 236
2024 Interim Report
3. Others
(iv) Transfers within equity 89,037,560.0 -160,651,196 -71,613,636.7
0 .78 8
1. Capital reserves transferred to 89,838,026.0 -89,838,026.
capital (or share capital) 0 00
2. Surplus reserves transferred to
capital (or share capital)
3. Surplus reserves used to offset
losses
4. Remeasurements of defined
benefit plans transferred to retained
earnings
5. Other comprehensive income
transferred to retained earnings
6. Others -70,813,170. -71,613,636.7
-800,466.00
78 8
(v) Special reserves 2,496,399.77 2,496,399.77
1. Provision in the current period 3,773,853.36 3,773,853.36
-1,277,453.5 -1,277,453.5
2. Utilization in the current period
9 9
(vi) Others
Ⅳ. Current closing balance 314,433,090. 155,721,138.6 1,263,854,46 74,571,400.0 157,216,545. 2,442,665,75 4,267,651,89
8,332,298.36
00 4 8.61 0 00 5.42 6.03
Semi-Annual 2023
Paid-in Other equity instruments Less: Other Total
Item Capital Special Surplus Undistribute
capital (or Treasury comprehensi owners’
Preferred Perpetual reserves reserves reserves d profits
share capital) Others shares ve income equity
shares bonds
Ⅰ. Closing balance of the previous 154,470,010. 1,410,132,72 77,235,005.0 1,143,151,67 2,784,989,41
year 00 5.05 0 4.39 4.44
Add: Changes in accounting
390,323.35 390,323.35
policies
Correction of prior period
errors
Others
Ⅱ. Opening balance of the current 154,470,010. 1,410,132,72 77,235,005.0 1,143,541,99 2,785,379,73
year 00 5.05 0 7.74 7.79
Ⅲ. Amount of changes during the
55,077,276.2 149,845,276. 275,173,512. 183,859,338.
current period (decreases indicated 357,251.00 2,917,949.30 178,625.50
3 54 96 45
by “-”)
(i) Total comprehensive income 521,295,752. 521,295,752.
22 22
(ii) Capital contributed or 55,077,276.2 149,845,276. -94,410,749.
357,251.00
withdrawn by owners 3 54 31
1. Ordinary shares contributed by 26,350,833.7 149,845,276. -123,137,191
357,251.00
owners 6 54 .78
99 / 236
2024 Interim Report
2. Capital contributed by holders of
other equity instruments
3. Share-based payments 28,726,442.4 28,726,442.4
recognized as owners’ equity 7 7
4. Others
(iii) Profit distribution -246,122,23 -245,943,613
178,625.50
9.26 .76
1. Transfer to surplus reserves 178,625.50 -178,625.50
2. Distributions to owners (or -245,943,61 -245,943,613
shareholders) 3.76 .76
3. Others
(iv) Transfers within equity
1. Capital reserves transferred to
capital (or share capital)
2. Surplus reserves transferred to
capital (or share capital)
3. Surplus reserves used to offset
losses
4. Remeasurements of defined
benefit plans transferred to retained
earnings
5. Other comprehensive income
transferred to retained earnings
6. Others
(v) Special reserves 2,917,949.30 2,917,949.30
1. Provision in the current period 2,917,949.30 2,917,949.30
2. Utilization in the current period
(vi) Others
Ⅳ. Current closing balance 154,827,261. 1,465,210,00 149,845,276. 77,413,630.5 1,418,715,51 2,969,239,07
2,917,949.30
00 1.28 54 0 0.70 6.24
Company representative: 葛志勇 Chief accountant: 殷哲 Head of the accounting department: 李锴
100 / 236
2024 Interim Report
III. Basic Corporate Information
1. Company profile
√ Applicable N/A
Wuxi Autowell Technology Co., Ltd. (hereinafter referred to as “the Company” or the “Parent
Company,” or the “Company”) was established on February 1, 2010. The legal representative of
the Company is Ge Zhiyong
The registered address of the Company is No. 3 Xinhua Road, New District, Wuxi. The Company’s
shares were listed and traded on May 21, 2020 on the STAR Market.
The Company now holds a business license with unified social credit code 913202005502754040,
and as of June 30, 2024, the Company has a registered capital of RMB 314,433,090 with a total number
of 314,433,090 shares (par value RMB 1 per share). Among them, 24,192,315 are outstanding shares
restricted, while 290,240,775 are unrestricted.
The operating period of the Company: From February 1, 2010 to an indefinite period
The business scope of the Company: R&D, manufacturing, sales, and technical services of
industrial automatic control systems, special equipment for the electronics industry, photovoltaic
equipment and components; processing, manufacturing, and sales of mechanical parts; sales of general
machinery and accessories; software development; import and export of various commodities and
technologies (except for those that are restricted or prohibited by the government) as principal or agent,
subject to approval by competent authorities for items requiring specific authorization. Licensed items:
power generation, transmission, and distribution services, subject to approval by competent authorities
for items requiring specific authorization. General items: technological services for solar power
generation (Except for items requiring government approval, the business entity may operate the
activities listed on the business license at its discretion.)
The actual controllers of the Company are Ge Zhiyong and Li Wen.
The financial statements have been authorized for issuance by the Board of Directors on August 22,
2024.
VI. Basis of Preparation of the Financial Statements
1. Basis of preparation
The financial statements are prepared on the basis of going concern.
2. Going concern
√ Applicable □ N/A
The Company has adequately evaluated its ability to continue as a going concern for the 12 months
from the end of the reporting period, and the evaluation results indicate that there are no matters that cast
significant doubt on its ability to continue as a going concern.
V. Significant Accounting Policies and Accounting Estimates
Notes on specific accounting policies and accounting estimates:
√ Applicable □ N/A
101 / 236
2024 Interim Report
The Company determines accounting policies and accounting estimates appropriate for its businesses,
including policies for accounts receivable, accounts receivable financing, valuation of inventories,
depreciation of fixed assets, amortization of intangible assets, depreciation of right-of-use assets, the
timing of revenue recognition, and share-based payments; as well as accounting estimates for
impairment of inventories and bad debt provisions for receivables.
The following disclosures cover specific accounting policies and accounting estimates formulated
by the Company in accordance with the actual production and operating characteristics.
1. Declaration of compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises and present true and complete information on the financial positions,
operating results, changes in equity, and cash flows of the Company.
2. Accounting period
The Company adopts the calendar year from January 1 to December 31 as its accounting year.
3. Operating cycle
√ Applicable □ N/A
The Company’s operating cycle is 12 months.
4. Functional currency
The Company adopts RMB as its functional currency. The Company’s subsidiaries determine their
functional currencies based on the primary economic environment in which they operate, with Autowell
Japan Co., Ltd.’s functional currency being the Japanese yen, Autowell (Singapore) Pte Ltd.’s functional
currency being the U.S. dollar, and Autowell (Malaysia) Sdn Bhd’s functional currency being the ringgit.
The financial statements are presented in RMB.
5. Method and basis for determining the materiality criteria
√ Applicable □ N/A
Item Materiality criteria
Material receivables that require provision for Items representing more than 0.03% of the
bad debt on an individual basis original value of accounts receivable at the
end of the period
Material construction in progress Items representing more than 1% of the
original value of fixed assets at the end of the
period
Material receivables with an age of more than Items representing more than 0.1% of the
one year or overdue original value of total assets at the end of the
period
6. Accounting treatment method for the combination of businesses under or not under the same
control
√ Applicable □ N/A
Combination of businesses under the same control： The assets and liabilities acquired by the
acquirer, including goodwill resulting from the acquisition of the acquiree by the ultimate controller, are
measured on the basis of the carrying values as recorded in the ultimate controller’ consolidated
financial statements for the acquiree’s assets and liabilities on the date of the combination. The
difference between the carrying value of the net assets acquired in the combination and the carrying
value of the consideration paid for the combination (or the total face value of the shares issued) is
adjusted to equity premium in capital reserves, and the retained earnings is adjusted to the extent that the
equity premium in the capital surplus is not sufficient to eliminate the difference.
Combination of businesses not under the same control： The costs of combination refer to the fair
value of the assets surrendered, the liabilities incurred or assumed, and the equity securities issued by the
acquirer on the acquisition date for gaining control over the acquiree. The difference between the higher
102 / 236
2024 Interim Report
combination costs and the share of fair value of the identifiable net assets of the acquiree is recognized
as goodwill. If the combination costs are less than the share of the fair value of the acquiree’s
identifiable net assets obtained from the combination, the difference is included in the current profit or
loss. Each of the identifiable assets, liabilities, and contingent liabilities of the acquiree acquired in the
combination that meets the conditions for recognition is measured at fair value at the date of acquisition.
Costs incurred directly due to the combination are recorded into current profit or loss at the time of
occurrence. The transaction costs incurred for issuing equity securities or debt securities for the
combination are included in the initial amount recognized for the equity securities or debt securities.
7. Criteria for determining control and methods for preparing consolidated financial statements
√ Applicable □ N/A
1. Criteria for determining control
The Company and all its subsidiaries are included in the consolidated financial statements based on
control. Control refers to the cases where the Company has power over the investee, has rights to
variable returns from participating in the relevant activities of the investee, and can use the power over
the investee to influence its return amount.
2. Procedures of consolidation
The Company regards the entire group of businesses as one accounting entity and prepares
consolidated financial statements in accordance with unified accounting policies to reflect the financial
position, results of operations, and cash flows of the business group. The effects of intra-group
transactions between the Company and its subsidiaries, as well as among subsidiaries, are eliminated.
Where an intra-group transaction indicates an impairment loss of relevant assets, the full amount of such
loss is recognized. If the accounting policies or accounting periods adopted by subsidiaries are
inconsistent with those of the Company, necessary adjustments are made to align with the Company’s
accounting policies and accounting periods when preparing the consolidated financial statements.
The portion of equity, net profit or loss, and total comprehensive income attributable to
non-controlling shareholders is separately presented under the owners’ equity section in the consolidated
balance sheet and under the net profit item and total comprehensive income item in the consolidated
income statement. If the share of losses attributable to non-controlling shareholders in a subsidiary in the
current period exceeds the non-controlling interest in the shareholders’ equity of the subsidiary at the
beginning of the period, the excess is charged against non-controlling shareholders’ equity.
(1) Addition of subsidiaries or businesses
In the reporting period, if a subsidiary or business is added due to a business combination under
common control, the operating results and cash flows of the subsidiary or business from the beginning of
the period to the end of the reporting period are included in the consolidated financial statements.
Additionally, the opening balances and comparative figures in the consolidated financial statements are
adjusted to reflect the assumption that the reporting entity, as a combined entity, has been part of the
103 / 236
2024 Interim Report
consolidated group since the date when the ultimate controlling party began to exercise control.
If control over an investee under common control is obtained due to additional investment or other
reasons, any gains or losses, other comprehensive income, and other changes in net assets recognized in
relation to the equity investment held prior to gaining control, from the later of the date the original
equity was acquired or the date the acquirer and the acquiree were under common control until the date
of the combination, are reversed and adjusted against the opening retained earnings or current profit or
loss in the comparative period of the consolidated financial statements.
During the reporting period, the addition of subsidiaries or businesses as a result of a non-common
control business combination is included in the consolidated financial statements from the date of
purchase on the basis of the fair value of each identifiable asset, liability, and contingent liability
determined at the date of purchase.
If control over an investee not under common control is obtained due to additional investment or
for other reasons, the equity interest held in the acquiree prior to the acquisition date is remeasured at its
fair value on the acquisition date. The difference between the fair value and the carrying value is
recognized in the current period’s investment income. Any other comprehensive income and other
changes in equity that were recognized in relation to the equity interest held prior to the acquisition date,
which may be reclassified to profit or loss in future periods, are reclassified to investment income in the
current period as of the acquisition date.
(2) Disposal of subsidiaries
① General treatment
When control over an investee is lost as a result of the disposal of a portion of the equity investment
or for other reasons, the remaining equity interest after disposal is remeasured at its fair value on the date
of loss of control. The difference between the sum of the consideration received from the disposal and
the fair value of the remaining equity interest, less the share of the net assets of the original subsidiary
attributable to the proportion of equity previously held (including goodwill) from the acquisition date or
combination date, is recognized as investment income in the period when control is lost. Any other
comprehensive income and changes in equity recognized under the equity method that are related to the
original subsidiary’s equity investment and can be reclassified into profit or loss in future periods are
reclassified into current period investment income at the time of loss of control.
② Stepwise disposal of subsidiaries
When a subsidiary’s equity investment is disposed of in stages through multiple transactions until
control is lost, if the terms, conditions, and economic impact of each transaction meet one or more of the
following criteria, it typically indicates that these transactions are accounted for as a single package deal:
i. The transactions are entered into simultaneously or in contemplation of one another;
104 / 236
2024 Interim Report
ii. The transactions as a whole achieve a complete commercial result;
iii. The realization of one transaction depends on the occurrence of at least one of the other
transactions; or
iv. One transaction is not economically justified when viewed in isolation, but is economically
justified when considered together with other transactions.
If the transactions are considered as a single package deal, they are accounted for as a single
disposal of the subsidiary which causes the loss of control over the subsidiary. The difference between
each disposal price before the loss of control and the share of the subsidiary’s net assets corresponding to
the disposed investment is recognized in other comprehensive income in the consolidated financial
statements, and upon loss of control, this cumulative amount is reclassified into profit or loss for the
period in which control is lost.
If the transactions are not considered as a single package deal, each disposal before the loss of
control is accounted for as a partial disposal of the subsidiary’s equity investment without loss of control.
Upon loss of control, the general treatment for the disposal of subsidiaries is applied.
(3) Purchase of non-controlling interests in subsidiaries
When additional long-term equity investment is acquired due to the purchase of non-controlling
interests, the difference between the newly acquired long-term equity investment and the share of the
subsidiary’s net assets attributable to the proportion of newly acquired shares, calculated cumulatively
from the acquisition date or combination date, is adjusted against the share premium in the capital
reserves in the consolidated balance sheet. If the capital reserves are insufficient to offset the difference,
retained earnings are adjusted.
(4) Partial disposal of equity investments in subsidiaries without loss of control
The difference between the consideration received from the disposal and the share of the
subsidiary’s net assets attributable to the disposed long-term equity investment, calculated cumulatively
from the acquisition date or combination date, is adjusted against the share premium in the capital
reserves in the consolidated balance sheet. If the capital reserves are insufficient to offset the difference,
retained earnings are adjusted.
8. Classification of joint venture arrangements and accounting treatment of joint operations
□ Applicable √ N/A
9. Determination criteria of cash and cash equivalents
Cash equivalents refer to investments held by businesses with short term (generally refer to a period
within 3 months from the purchasing date), highly liquid, readily convertible to cash with known amount,
and with small risk of value fluctuation.
10. Foreign currency transactions and translation of foreign currency statements
√ Applicable □ N/A
105 / 236
2024 Interim Report
1. Foreign currency transactions
Foreign currency transactions are translated into RMB using the spot exchange rate on the date of
the transaction for accounting purposes.
On the balance sheet date, the balances of foreign currency monetary items are translated at the spot
exchange rate on that date. The resulting exchange differences, except for those arising from foreign
currency-specific borrowings related to the acquisition or construction of qualifying assets, which are
treated by the principles of capitalizing borrowing costs, are recognized in the current period’s profit or
loss.
2. Translation of foreign currency financial statements
The assets and liabilities in the balance sheet are translated at the spot exchange rate on the balance
sheet date. For equity items, other than “undistributed profits,” the historical exchange rates at the time
of the transactions are used for translation. Income and expense items in the income statement are
translated using the spot exchange rate on the date of the transaction.
Upon disposal of a foreign operation, the cumulative translation differences related to that foreign
operation, which were previously recognized in equity, are reclassified to profit or loss in the period of
disposal.
11. Financial instruments
√ Applicable □ N/A
The Company recognizes a financial asset, financial liability, or equity instrument when it becomes
a party to a financial instrument contract.
1. Classification of financial instruments
Based on the Company’s business model for managing financial assets and the characteristics of the
contractual cash flows, financial assets are classified at initial recognition as financial assets measured at
amortized cost, financial assets measured at fair value through other comprehensive income (FVOCI),
and financial assets measured at fair value through profit or loss (FVTPL).
The Company classifies financial assets as measured at amortized cost if both of the following
conditions are met and the financial assets are not designated as at FVTPL:
– The business model aims to hold the asset to collect the contractual cash flows;
– The contractual cash flows are solely payments of principal and interest on the principal amount
outstanding.
The Company classifies financial assets as at FVOCI (debt instruments) if both of the following
conditions are met and the financial assets are not designated as at FVTPL:
– The business model aims both to collect contractual cash flows and to sell the financial asset;
– The contractual cash flows are solely payments of principal and interest on the principal amount
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outstanding.
For investments in equity instruments that are not held for trading, the Company may, at initial
recognition, irrevocably designate them as at FVOCI (equity instruments). This designation is made on
an individual investment basis, and the related investment meets the definition of an equity instrument
from the issuer’s perspective.
In addition to the financial assets measured at amortized cost and FVOCI mentioned above, the
Company classifies all other financial assets as at FVTPL. At initial recognition, if it eliminates or
significantly reduces an accounting mismatch, the Company may irrevocably designate a financial asset
that would otherwise be classified as measured at amortized cost or at FVOCI as a financial asset
measured at FVTPL.
Financial liabilities are classified at initial recognition as either financial liabilities at FVTPL or at
amortized cost.
A financial liability may be designated at FVTPL at initial recognition if it meets one of the
following conditions:
1) The designation eliminates or significantly reduces an accounting mismatch.
2) The financial liability is managed and its performance is evaluated on a fair value basis,
following the Company’s documented risk management or investment strategy, and information about
the financial liability is provided internally on that basis to key management personnel.
3) The financial liability contains an embedded derivative that needs to be separated.
2. Basis for recognizing and measuring financial instruments
(1) Financial assets measured at amortized cost
Financial assets measured at amortized cost include notes receivable, accounts receivable, other
receivables, long-term receivables, debt investments, etc. These assets are initially measured at fair value,
with related transaction costs included in the initial recognition amount. Accounts receivable that do not
contain a significant financing component and those for which the Company has decided not to consider
the financing component of one year or less are initially measured at the contractual transaction price.
Interest calculated using the effective interest method during the holding period is recognized in the
current profit or loss.
Upon recovery or disposal, the difference between the consideration received and the carrying
value of the financial asset is recognized in the current profit or loss.
(2) Financial assets at FVOCI (debt instruments)
Financial assets measured at FVOCI (debt instruments) include accounts receivable financing, other
debt investments, etc. These assets are initially measured at fair value, with related transaction costs
included in the initial recognition amount. Subsequently, these financial assets are measured at fair value,
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with changes in fair value, except for interest calculated using the effective interest method, impairment
losses or gains, and foreign exchange gains or losses, recognized in other comprehensive income.
Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive
income are transferred from other comprehensive income to current profit or loss.
(3) Financial assets at FVOCI (equity instruments)
Financial assets at FVOCI (equity instruments) include investments in other equity instruments, etc.
These assets are initially measured at fair value, with related transaction costs included in the initial
recognition amount. Subsequently, these financial assets are measured at fair value, with changes in fair
value recognized in other comprehensive income. Dividends received are recognized in current profit or
loss.
Upon derecognition, the cumulative gains or losses previously recognized in other comprehensive
income are transferred from other comprehensive income to retained earnings.
(4) Financial assets at FVTPL
Financial assets at FVTPL include financial assets held for trading, derivative financial assets, and
other non-current financial assets. These assets are initially measured at fair value, with related
transaction costs recognized in current profit or loss. Subsequently, these financial assets are measured at
fair value, with changes in fair value recognized in current profit or loss.
(5) Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities held for trading, derivative financial
liabilities, etc. These liabilities are initially measured at fair value, with related transaction costs
recognized in current profit or loss. Subsequently, these financial liabilities are measured at fair value,
with changes in fair value recognized in current profit or loss.
Upon derecognition, the difference between the carrying value and the consideration paid is
recognized in the current profit or loss.
(6) Financial liabilities measured at amortized cost
Financial liabilities measured at amortized cost include short-term borrowings, notes payable,
accounts payable, other payables, long-term borrowings, bonds payable, and long-term payables.
These liabilities are initially measured at fair value, with related transaction costs included in the
initial recognition amount.
Interest calculated using the effective interest method during the holding period is recognized in the
current profit or loss.
Upon derecognition, the difference between the consideration paid and the carrying value of the
financial liability is recognized in the current profit or loss.
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3. Criteria and measurement methods for derecognition and transfer of financial assets
The Company derecognizes a financial asset when one of the following conditions is met:
– The contractual rights to the cash flows from the financial asset expire;
– The financial asset has been transferred, and substantially all the risks and rewards of ownership
of the financial asset have been transferred to the transferee;
– The financial asset has been transferred, although the Company has neither transferred nor
retained substantially all the risks and rewards of ownership, it has not retained control over the financial
asset.
If the Company and a counterparty modify or renegotiate a contract in a way that results in a
substantial modification, the original financial asset is derecognized, and a new financial asset is
recognized based on the modified terms.
If, in a transfer of a financial asset, the Company retains substantially all the risks and rewards of
ownership of the financial asset, the asset is not derecognized.
In assessing whether a financial asset transfer meets the above derecognition criteria, the Company
applies the principle of substance over form.
The Company distinguishes between transfers of the financial assets as a whole and transfers of a
portion of a financial asset. If the transfer of financial assets as a whole meets the derecognition criteria,
the difference between the following two amounts is recognized in profit or loss in the current period:
(1) The carrying value of the transferred financial asset; and
(2) The sum of the consideration received from the transfer and any cumulative gain or loss
previously recognized in other comprehensive income that is associated with the transferred financial
asset (in cases where the financial asset is a debt instrument measured at FVOCI).
If the transfer of a portion of a financial asset meets the derecognition criteria, the carrying value of
the financial assets as a whole is allocated between the portion that is derecognized and the portion that
is not derecognized, based on their relative fair values. The difference between the following two
amounts is recognized in profit or loss in the current period:
(1) The carrying value of the portion that is derecognized; and
(2) The sum of the consideration received for the portion that is derecognized and the cumulative
gain or loss previously recognized in other comprehensive income that is associated with the portion that
is derecognized (in cases where the financial asset is a debt instrument measured at FVOCI).
If the transfer of a financial asset does not meet the derecognition criteria, the Company continues
to recognize the financial asset and recognizes the consideration received as a financial liability.
4. Derecognition of financial liabilities
A financial liability, or part of it, is derecognized when the obligation specified in the contract is
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discharged. If the Company enters into an agreement with a creditor to replace an existing financial
liability with a new financial liability, and the terms of the new financial liability are substantially
different from those of the existing financial liability, the existing financial liability is derecognized and
a new financial liability is recognized.
If the terms of an existing financial liability are substantially modified, the existing financial
liability, or part of it, is derecognized, and the modified financial liability is recognized as a new
financial liability.
When a financial liability is fully or partially derecognized, the difference between the carrying
value of the derecognized financial liability and the consideration paid (including any transferred
non-cash assets or new financial liabilities assumed) is recognized in profit or loss in the current period.
If the Company repurchases a portion of a financial liability, the carrying value of the financial
liability is allocated on the repurchase date between the portion that continues to be recognized and the
portion that is derecognized, based on their relative fair values. The difference between the carrying
value allocated to the derecognized portion and the consideration paid, including any transferred
non-cash assets or new financial liabilities assumed, is recognized in profit or loss in the current period.
5. Methods for determining the fair value of financial assets and financial liabilities
For financial instruments with active markets, the fair value is determined based on quoted prices in
those active markets. For financial instruments for which no active market exists, fair value is
determined using valuation techniques. In applying valuation techniques, the Company uses valuation
methods that are appropriate under the current circumstances and are supported by sufficient and reliable
data and other relevant information. The inputs used in the valuation are consistent with the
characteristics of the asset or liability considered by market participants in the transaction, with a
preference given to observable inputs when available. Unobservable inputs are used only when relevant
observable inputs are not available or are impractical to obtain.
6. Impairment testing and accounting treatment for financial instruments
The Company accounts for the impairment of financial assets measured at amortized cost, financial
assets at FVOCI (debt instruments), and financial guarantee contracts based on expected credit losses.
The Company considers reasonable and supportable information about past events, current
conditions, and forecasts of future economic conditions in assessing credit risk and calculating the
present value of the difference between the contractual cash flows and the expected cash flows. This
present value is weighted by the probability of default to determine the expected credit loss.
For receivables and contract assets arising from transactions governed by Accounting Standard for
Business Enterprises No. 14—Revenue, the Company measures the loss allowance based on the expected
credit losses over the entire lifetime of the asset, regardless of whether a significant financing component
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exists.
For lease receivables arising from transactions governed by Accounting Standard for Business
Enterprises No. 21—Leases, the Company also measures the loss allowance based on the expected credit
losses over the entire lifetime of the lease.
For other financial instruments, the Company assesses changes in credit risk since initial
recognition at each balance sheet date.
The Company evaluates whether the credit risk of a financial instrument has significantly increased
since initial recognition by comparing the risk of default on the balance sheet date with the risk of
default at initial recognition, to assess relative changes in default risk over the expected lifetime of the
financial instrument. Generally, if a financial instrument is more than 30 days past due, the Company
considers that the credit risk has increased significantly unless there is strong evidence that the credit
risk has not increased significantly since initial recognition.
If the credit risk of a financial instrument is low on the balance sheet date, the Company considers
that the credit risk has not significantly increased since initial recognition.
If the credit risk of a financial instrument has significantly increased since initial recognition, the
Company measures the loss allowance based on the expected credit losses over the entire lifetime of the
financial instrument. If the credit risk has not significantly increased, the Company measures the loss
allowance based on the expected credit losses for the next 12 months. The increase or reversal of the loss
allowance is recognized as impairment loss or gain in profit or loss in the current period. For financial
assets measured at FVOCI (debt instruments), the loss allowance is recognized in other comprehensive
income, and the impairment loss or gain is recognized in profit or loss in the current period, without
reducing the carrying value of the financial asset presented in the balance sheet.
If there is objective evidence that a receivable has been credit-impaired, the Company recognizes
an impairment loss on that receivable on an individual basis.
For financial instruments other than the receivables for which individual impairment has been
recognized, the Company groups financial instruments based on credit risk characteristics and
determines expected credit losses on a collective basis. The categories and basis for determining
expected credit losses for accounts receivable, accounts receivable financing, and other receivables are
as follows:
Item Category Determination basis
Expected credit losses are
Accounts receivable,
Aging category calculated and an aging schedule of
other receivables
other receivables against the
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Item Category Determination basis
expected credit loss rate prepared
by referring to historical credit loss
experience, combined with current
conditions and forecasts of future
economic conditions.
Expected credit losses are
calculated and an aging schedule of
other receivables against the
Accounts receivable expected credit loss rate prepared
Note type
financing by referring to historical credit loss
experience, combined with current
conditions and forecasts of future
economic conditions.
If the Company no longer reasonably expects to recover the contractual cash flows of a financial
asset in full or in part, the carrying amount of the financial asset is written off directly.
12. Notes receivable
□ Applicable √ N/A
13. Accounts receivable
√ Applicable □ N/A
Please refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” in this section.
14. Accounts receivable financing
√ Applicable □ N/A
Please refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” in this section.
15. Other receivables
√ Applicable □ N/A
Please refer to “11. Financial instruments” in “V. Significant Accounting Policies and Accounting
Estimates” in this section.
16. Inventories
√ Applicable □ N/A
Categories of inventories, inventory valuation method, inventory system, and amortization method
for low-value consumables and packaging materials
√ Applicable □ N/A
1. Classification and cost of inventories
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Inventories are classified into raw materials, work in progress, self-produced semi-finished goods,
finished goods, goods dispatched, and materials consigned for processing.
Inventories are initially measured at cost. The cost of inventories includes purchase costs,
processing costs, and other expenditures incurred to bring the inventories to their current location and
condition.
2. Inventory valuation method
Inventories are valued at the weighted average cost method when issued.
3. Inventory system
The perpetual inventory system is adopted.
4. Amortization method for low-value consumables and packages
(1) Low-value consumables are amortized using the one-time write-off method;
(2) Packaging materials are amortized using the one-time write-off method.
Recognition criteria and methods for provision for inventory write-downs
√ Applicable □ N/A
Inventories are measured at the lower of cost and net realizable value on the balance sheet date.
When the cost of inventories exceeds their net realizable value, a provision for inventory write-downs is
recognized. Net realizable value is the estimated selling price in the ordinary course of business, less the
estimated costs of completion, estimated selling expenses, and relevant taxes.
For finished goods, merchandise, and materials held for sale directly, the net realizable value is
determined by the estimated selling price less estimated selling expenses and relevant taxes in the
normal production and operation process. For materials that require processing, the net realizable value
is determined by the estimated selling price of the finished goods produced, less the estimated costs of
completion, estimated selling expenses, and relevant taxes in the normal production and operation
process. For inventories held to fulfill sales contracts or service contracts, the net realizable value is
calculated based on the contract price. If the quantity of inventories held exceeds the quantity ordered
under the sales contract, the net realizable value of the excess inventory is based on the general selling
price.
Categories and criteria for provision for inventory write-downs based on grouped inventories, and
the basis for determining the net realizable value of different types of inventories
√ Applicable □ N/A
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Inventory grouping The basis for determining the net
Grouping basis
categories realizable value
Raw materials - Grouped Net realizable value determined
Inventory aging
by aging based on aging
Merchandise - Grouped Net realizable value determined
Inventory aging
by aging based on aging
Self-produced
Net realizable value determined
semi-finished goods - Inventory aging
based on aging
Grouped by aging
Methods and basis for calculating the net realizable value of inventories grouped by aging
√ Applicable □ N/A
Calculation methods for the net realizable value
Aging
of inventories
Within 2 years 100% of the carrying amount
2–3 years 50% of the carrying amount
Over 3 years 0% of the carrying amount
17. Contract assets
√ Applicable □ N/A
Methods and criteria for recognizing contract assets
√ Applicable □ N/A
Contract assets or contract liabilities are presented in the balance sheet based on the relationship
between the fulfillment of performance obligations and customer payments. The right to consideration
for goods or services transferred to a customer, which is conditional on factors other than the passage of
time, is presented as a contract asset. Contract assets and contract liabilities under the same contract are
presented on a net basis. The Company’s unconditional right to consideration from customers, which
depends solely on the passage of time, is presented separately as receivables.
Categories and criteria for provision for bad debts based on credit risk characteristics
□ Applicable √ N/A
Method for calculating aging-based credit risk characteristics for contract assets
□ Applicable √ N/A
Determination of individual provisions for bad debts and criteria for individual provisions
□ Applicable √ N/A
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18. Non-current assets or disposal groups held for sale
□ Applicable √ N/A
Criteria for classification and accounting treatment of non-current assets or disposal groups held
for sale
□ Applicable √ N/A
Recognition criteria and presentation of discontinued operations
□ Applicable √ N/A
19. Long-term equity investments
√ Applicable □ N/A
1. Criteria for determining joint control and significant influence
Joint control refers to the shared control over an arrangement in accordance with relevant
agreements, where decisions about the relevant activities of the arrangement require the unanimous
consent of the parties sharing control. Where the Company and other joint venture partners jointly
control an investee and have rights to the investee’s net assets, the investee is considered as a joint
venture of the Company.
Significant influence refers to the power to participate in the financial and operating policy
decisions of an investee, but not control or jointly control with other parties the formulation of those
policies. If the Company can exert significant influence over an investee, the investee is considered an
associate of the Company.
2. Determine the initial investment cost
(1) Long-term equity investments arising from business combinations
For long-term equity investments in subsidiaries arising from business combinations under
common control, the initial investment cost is determined based on the share of the carrying value of the
equity of the acquiree in the consolidated financial statements of the ultimate controlling party at the
combination date. The difference between the initial investment cost and the carrying value of the
consideration paid is adjusted against the share premium in the capital reserves. If the share premium is
insufficient to offset the difference, retained earnings are adjusted. When control over an investee under
common control is obtained due to additional investment or other reasons, if the initial investment cost
of the long-term equity investment recognized under the above principles is different from the sum of
the carrying value of the long-term equity investment before the combination and the carrying value of
the additional consideration paid on the combination date, the difference is adjusted against the share
premium. If the share premium is insufficient to offset the difference, it is deducted from retained
earnings.
For long-term equity investments in subsidiaries arising from business combinations not under
common control, the initial investment cost is determined based on the acquisition cost as of the
acquisition date. When control over an investee not under common control is obtained due to additional
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investment or for other reasons, the initial investment cost is determined based on the carrying value of
the previously held equity investment plus the cost of the additional investment.
(2) Long-term equity investments acquired through means other than business combinations
For long-term equity investments acquired through cash payments, the initial investment cost is
determined based on the actual purchase price paid.
For long-term equity investments acquired through the issuance of equity securities, the initial
investment cost is determined based on the fair value of the equity securities issued.
3. Subsequent measurement and the recognition of profit or loss
(1) Long-term equity investments accounted for using the cost method
The Company accounts for long-term equity investments in subsidiaries using the cost method,
unless the investment is classified as held for sale. Except for the portion of the purchase price or
consideration paid that includes declared but unpaid cash dividends or profits at the time of acquisition,
the Company recognizes the current investment income based on the share of the declared cash
dividends or profits distributed by the investee.
(2) Long-term equity investments accounted for using the equity method
Long-term equity investments in associates and joint ventures are accounted for using the equity
method. Where the initial investment cost exceeds the share of the fair value of the identifiable net assets
of the investee at the time of the investment, the excess is not adjusted to the initial investment cost of
the long-term equity investment. If the initial investment cost is less than the share of the fair value of
the identifiable net assets of the investee at the time of the investment, the difference is recognized in
profit or loss for the period and the cost of the long-term equity investment is adjusted accordingly.
The Company recognizes its share of the net profit or loss and other comprehensive income of the
investee, to which it is entitled or for which it is responsible, as investment income and other
comprehensive income, respectively, while adjusting the carrying value of the long-term equity
investment. The carrying value of the long-term equity investment is reduced by the portion of profits or
cash dividends declared by the investee that is attributable to the Company. For other changes in the
equity of the investee, aside from net profit or loss, other comprehensive income, and profit distributions
(referred to as “other equity changes”), the carrying value of the long-term equity investment is adjusted
and the change is recognized in owners’ equity.
When recognizing the share of the investee’s net profit or loss, other comprehensive income, and
other equity changes, the Company bases these amounts on the fair value of the identifiable net assets of
the investee at the time the investment was acquired. Adjustments are made to align the investee’s net
profit and other comprehensive income with the Company’s accounting policies and reporting periods
before recognition.
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Unrealized gains and losses from internal transactions between the Company and its associates or
joint ventures are eliminated in proportion to the Company’s share, and investment income is recognized
on that basis, except where the transferred or sold assets constitute a business. Unrealized internal
transaction losses with the investee are fully recognized if they are related to asset impairment losses.
If the investee incurs net losses, the Company reduces the carrying value of the long-term equity
investment and any other long-term interests that substantially form part of the net investment in the
investee up to zero, except when the Company shall bear additional losses. If the associate or joint
venture subsequently generates net profits, the Company resumes recognizing its share of profits after
covering any unrecognized losses.
(3) Disposal of long-term equity investments
When disposing of a long-term equity investment, the difference between its carrying value and the
actual proceeds received is recognized in profit or loss in the current period.
For partial disposals of long-term equity investments accounted for using the equity method, if the
remaining equity interest is still accounted for using the equity method, the portion of other
comprehensive income previously recognized under the equity method is reclassified proportionately,
based on the same basis as if the investee had directly disposed of related assets or liabilities. Other
changes in owners’ equity are reclassified proportionately to profit or loss for the period.
When the disposal of equity investments results in the loss of joint control or significant influence
over the investee, any other comprehensive income previously recognized under the equity method is
accounted for based on the same principles as if the investee had directly disposed of related assets or
liabilities when the equity method is discontinued. All other changes in owners’ equity are reclassified to
profit or loss upon discontinuation of the equity method.
When the disposal of a portion of an equity investment results in the loss of control over the
investee, and in the preparation of individual financial statements, if the remaining equity interest allows
the Company to exert joint control or significant influence over the investee, the remaining equity
interest is accounted for using the equity method. The remaining equity interest is adjusted as if it were
accounted for using the equity method from the date of acquisition. The portion of other comprehensive
income recognized before obtaining control over the investee is reclassified proportionately, based on
the same basis as if the investee had directly disposed of related assets or liabilities. Other changes in
owners’ equity recognized under the equity method are reclassified proportionately to profit or loss for
the period. If the remaining equity interest does not allow the Company to exert joint control or
significant influence over the investee, it is recognized as a financial asset, and the difference between its
fair value on the date control is lost and its carrying value is recognized in profit or loss for the period.
All other comprehensive income and changes in owners’ equity recognized prior to the acquisition of
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control over the investee are reclassified in full.
When control over a subsidiary is lost due to the stepwise disposal of equity investments through
multiple transactions, and these transactions are part of a single package deal, all such transactions are
accounted for as a single transaction that results in the disposal of the subsidiary’s equity investment and
the loss of control. The difference between the disposal price and the carrying value of the equity
investment corresponding to each disposal, prior to the loss of control, is recognized as other
comprehensive income in the individual financial statements, and reclassified in full to profit or loss in
the period when control is lost. If the transactions are not part of a single package deal, each transaction
is accounted for separately.
20. Investment property
N/A
21. Fixed assets
(1) Recognition criteria
√ Applicable □ N/A
Fixed assets refer to tangible assets held for use in the production of goods, provision of services,
rental, or managing operations, with a useful life exceeding one accounting period. Fixed assets are
recognized when they simultaneously meet the following criteria:
(1) It is probable that the economic benefits associated with the fixed asset will flow to the
enterprise;
(2) The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (taking into account the effect of estimated dismantling
costs).
Subsequent expenditures related to fixed assets are included in the cost of the fixed assets when it is
probable that the economic benefits related to them will flow to the enterprise and their cost can be
reliably measured; the carrying value is derecognized for the replaced parts. All other subsequent
expenditures are recognized in profit or loss for the period in which they are incurred.
(2) Depreciation method
√ Applicable □ N/A
Fixed assets are depreciated by the straight-line method, classified according to the categories of
fixed assets, estimated useful life, and estimated residual value rate to determine the depreciation rate.
For fixed assets that have recognized impairment losses, depreciation is calculated in future periods
based on the carrying value after deducting the impairment provision and considering the remaining
useful life. If different parts of a fixed asset have different useful lives or provide economic benefits to
the enterprise in different ways, different depreciation rates or methods are selected, and depreciation is
calculated separately.
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The depreciation methods, depreciable period, residual value rates, and annual depreciation rates
for each category of fixed assets are as follows:
Depreciation Depreciable period Residual value Annual
Categories
method (year) rate depreciation rate
Buildings and Straight-line 20 5.00 4.75
structures method
Machinery Straight-line 10 5.00 9.50
equipment method
Office equipment Straight-line 5 5.00 19.00
method
Transportation Straight-line 4 5.00 23.75
equipment method
Electronic Straight-line 3 5.00 31.67
equipment method
Other equipment Straight-line 5 5.00 19.00
method
When a fixed asset is disposed of or is expected to generate no future economic benefits from its
use or disposal, it is derecognized. The amount of the proceeds from the sale, transfer, retirement, or
destruction of a fixed asset, net of its carrying value and related taxes and fees, is recognized in profit or
loss in the current period.
22. Construction in progress
√ Applicable □ N/A
Construction in progress is measured at actual costs. The actual costs include construction costs,
installation costs, borrowing costs that qualify for capitalization, and other necessary expenditures
incurred to bring the construction in progress to the intended usable state. When construction in progress
reaches the intended usable state, it is transferred to fixed assets and depreciation begins in the following
month. The Company’s criteria and timing for transferring construction in progress to fixed assets are as
follows:
Categories Criteria and timing for transfer to fixed assets
(1) The main construction and ancillary works have been substantially
completed; (2) The construction has met the intended design
requirements and has been inspected and accepted by survey, design,
construction, supervision, and other relevant units; (3) The
Buildings and construction has passed inspection by external parties such as fire
structures safety, land, and planning authorities; (4) If the construction project
has reached the intended usable state but the final settlement of
accounts has not yet been completed, the actual cost of the project is
estimated and transferred to fixed assets from the date the intended
usable state is reached.
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Categories Criteria and timing for transfer to fixed assets
(1) The relevant equipment and other supporting facilities have been
Machinery fully installed; (2) The equipment has been tested and can operate
equipment to be normally and stably for a period of time; (3) The production
installed and equipment can produce qualified products consistently over a period
commissioned of time; (4) The equipment has been inspected and accepted by asset
management personnel and users.
23. Borrowing costs
√ Applicable □ N/A
1. Principles for recognizing capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition,
construction, or production of qualifying assets are capitalized and included in the cost of the relevant
assets. Other borrowing costs are recognized as expenses in the period in which they are incurred and are
included in profit or loss in the current period.
Qualifying assets refer to assets such as fixed assets, investment properties, and inventories that
necessarily take a substantial period to get ready for their intended use or sale.
2. Capitalization period of borrowing costs
The capitalization period refers to the time from the commencement of capitalization of borrowing
costs until the point at which capitalization ceases, excluding any period during which capitalization is
suspended.
Borrowing costs begin to be capitalized when all of the following conditions are met:
(1) Expenditures for the asset have been incurred, including cash payments, the transfer of non-cash
assets, or the assumption of interest-bearing liabilities for the acquisition, construction, or production of
qualifying assets;
(2) Borrowing costs have been incurred;
(3) Activities necessary to prepare the asset for its intended use or sale are in progress.
Capitalization of borrowing costs ceases when the qualifying asset is ready for its intended use or
sale.
3. Suspension of capitalization
If there is an abnormal interruption in the acquisition, construction, or production process of a
qualifying asset, and the interruption lasts for more than three consecutive months, capitalization of
borrowing costs is suspended. If the interruption is necessary to bring the qualifying asset to its intended
usable or saleable condition, capitalization of borrowing costs continues. Borrowing costs incurred
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during the interruption are recognized as profit or loss in the current period, and capitalization resumes
when the acquisition, construction, or production activities recommence.
4. Calculation method for the capitalization rate and capitalization amount of borrowing
costs
For specific borrowings obtained for the acquisition, construction, or production of qualifying
assets, the amount of borrowing costs to be capitalized is determined by subtracting the interest income
earned from the unused borrowed funds deposited in the bank or the investment income earned from
temporary investments, from the actual borrowing costs incurred during the period.
For general borrowings used for the acquisition, construction, or production of qualifying assets,
the amount of borrowing costs to be capitalized is calculated by applying the capitalization rate to the
weighted average of the asset expenditures that exceed the specific borrowings. The capitalization rate is
determined based on the weighted average actual interest rate of the general borrowings.
During the capitalization period, exchange differences on foreign currency-specific borrowings,
including both principal and interest, are capitalized and included in the cost of the qualifying assets.
Exchange differences on the principal and interest of other foreign currency borrowings, except for
foreign currency-specific borrowings, are recognized in profit or loss in the current period.
24. Biological assets
□ Applicable √ N/A
25. Oil and gas assets
□ Applicable √ N/A
26. Intangible assets
Valuation method for intangible assets
(1) The Company initially measures intangible assets at cost upon acquisition.
The cost of purchased intangible assets includes the purchase price, related taxes, and other
expenditures directly attributable to bringing the asset to its intended use.
(2) Subsequent measurement
When acquiring an intangible asset, the Company assesses and determines its useful life.
Intangible assets with a finite useful life are amortized over the period during which they are
expected to generate economic benefits for the Company. If the period during which the intangible asset
is expected to generate economic benefits for the Company cannot be reasonably estimated, the asset is
classified as having an indefinite useful life and is not amortized.
(1) Useful life and the basis for its determination, estimation, amortization method, or review
procedures
√ Applicable □ N/A
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1. Estimation of useful life for intangible assets with a finite useful life
Amortization
Item Estimated useful life Basis for determining estimated useful life
method
Software 5 Straight-line Estimated benefit period
method
Land 50 Straight-line Estimated benefit period
method
Straight-line Estimated benefit period
Patents 10
method
Straight-line Estimated benefit period
Others 3
method
Non-patented Straight-line Estimated benefit period
10
technology method
2. Criteria for determining the indefinite useful life of intangible assets and procedures for
reviewing useful life
If the period during which the intangible asset is expected to generate economic benefits for the
Company cannot be reasonably estimated, the asset is classified as having an indefinite useful life and is
not amortized. The Company does not have any intangible assets with an indefinite useful life during the
reporting period.
(2) Scope of aggregation and accounting treatment for R&D expenditures
√ Applicable □ N/A
1. Scope of aggregation for R&D expenditures
The Company aggregates all expenses directly related to the R&D activities, including employee
benefits for R&D personnel, expenses related to equity incentives, material input costs, depreciation and
amortization expenses, and costs for outsourced R&D activities.
2. Specific criteria for differentiating the research phase and the development phase
Expenditures on internal R&D projects are classified into research phase expenditures and
development phase expenditures.
Research phase: This stage involves original and planned investigations undertaken to acquire and
understand new scientific or technical knowledge.
Development phase: This stage involves applying research findings or other knowledge to a plan or
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design for the production of new or substantially improved materials, devices, products, etc., before
commencing commercial production or use.
3. Specific conditions for capitalizing development phase expenditures
Expenditures during the research phase are included in the profit or loss of the current period when
they occur. Development phase expenditures are capitalized as intangible assets when all of the
following conditions are met; otherwise, they are included in the current profit or loss:
(1) The technical feasibility of completing the intangible asset so that it can be utilized or sold is
established;
(2) There is an intention to complete the intangible asset and use or sell it;
(3) There is evidence of how the intangible asset will generate economic benefits, including
demonstrating the existence of a market for the products produced using the intangible asset or for the
intangible asset itself, or if it is to be used internally, demonstrating its usefulness;
(4) There are adequate technical, financial, and other resources available to complete the
development of the intangible asset and to use or sell it;
(5) The expenditures attributable to the development phase of the intangible asset can be reliably
measured.
If it is not possible to distinguish between the expenditures attributable to the research phase and
the development phase, all R&D expenditures are recognized in profit or loss as incurred.
27. Impairment of long-term assets
√ Applicable □ N/A
For long-term assets such as long-term equity investments, fixed assets, construction in progress,
right-of-use assets, intangible assets with finite useful lives, and oil and gas assets, an impairment test is
conducted if there are indications of impairment as of the balance sheet date. If the impairment test
indicates that the recoverable amount of an asset is less than its carrying value, the impairment provision
is made according to the difference and included in the impairment loss. The recoverable amount is the
higher of the asset’s net fair value after deducting disposal costs or the present value of the expected
future cash flows from the asset. Provision for impairment is calculated and recognized on an individual
asset basis. If it is difficult to estimate the recoverable amount of an individual asset, the recoverable
amount of the asset group to which the asset belongs is determined. An asset group is the smallest
identifiable group of assets that generates cash inflows independently.
For goodwill arising from business combinations, intangible assets with indefinite useful lives, and
intangible assets that are not yet ready for use, impairment tests are conducted at least annually,
regardless of whether there are indications of impairment.
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When conducting a goodwill impairment test, the carrying value of goodwill resulting from the
business combination is allocated to the relevant asset group or groups on a reasonable basis from the
acquisition date. If it is difficult to allocate the goodwill to the relevant asset group, it is allocated to a
group of asset groups. The relevant asset group or combination of asset groups are those that are
expected to benefit from the synergies of the business combination.
When performing an impairment test on an asset group or combination of asset groups that include
goodwill, if there are indications of impairment for the asset group or combination of asset groups that
are associated with the goodwill, an impairment test is first conducted on the asset group or combination
of asset groups without considering the goodwill. The recoverable amount is calculated and compared
with the carrying value, and any impairment loss is recognized. The impairment test is then conducted
on the asset group or combination of asset groups that include the goodwill. If the recoverable amount is
less than the carrying value, the impairment loss is first allocated to reduce the carrying value of the
goodwill allocated to the asset group or group of asset groups. Any remaining impairment loss is then
allocated proportionally to reduce the carrying values of the other assets in the asset group or
combination of asset groups based on the relative carrying values of those assets.
Once an impairment loss is recognized for the above assets, it is not reversed in subsequent accounting
periods.
28. Long-term deferred expenses
√ Applicable □ N/A
Long-term deferred expenses refer to expenditures that have already been incurred but should be
amortized over the current and subsequent periods, with an amortization period of more than one year.
The amortization period and method for each expense item are as follows:
Item Amortization method Amortization period
Renovation costs Straight-line method Estimated benefit period
Others Straight-line method Estimated benefit period
29. Contract liabilities
√ Applicable □ N/A
Contract assets or contract liabilities are presented in the balance sheet based on the relations
between the fulfillment of performance obligations and customer payments. The obligation to transfer
goods or provide services to a customer, for which consideration has been received or is receivable, is
presented as a contract liability. Contract assets and contract liabilities under the same contract are
presented on a net basis.
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30. Employee benefits
(1) Accounting treatment of short-term benefits
√ Applicable □ N/A
The Company recognizes the actual amount of short-term benefits incurred during the accounting
period in which employees provide services to the Company as a liability and includes it in the current
period’s profit or loss or the cost of relevant assets.
The Company calculates and determines the amount of employee benefits for social insurance
contributions and housing provident funds, as well as union fees and employee education expenses,
based on the prescribed accrual basis and provision ratio during the accounting period in which
employees render services.
Employee welfare expenses incurred by the Company are recognized in profit or loss or the cost of
relevant assets based on the actual amount incurred when they occur, with non-monetary benefits
measured at fair value.
(2) Accounting treatment of post-employment benefits
√ Applicable □ N/A
(1) Defined contribution plans
The Company contributes to basic pension insurance and unemployment insurance for employees
following the relevant local government regulations. The contributions are calculated based on the
prescribed contribution base and percentage and are recognized as a liability and included in the current
period’s profit or loss or the cost of relevant assets during the accounting period in which employees
render services. Additionally, the Company participates in enterprise annuity plans/supplementary
pension insurance funds approved by the relevant national authorities. Contributions to the annuity
plans/local social insurance agencies, calculated as a percentage of total employee wages, are recognized
as expenses in the current period’s profit or loss or the cost of relevant assets.
(2) Defined benefit plans
The Company attributes the benefit obligations arising from defined benefit plans to the period
during which employees render services based on a formula determined by the projected unit credit
method and recognizes the expenses in the current period’s profit or loss or the cost of relevant assets.
The present value of defined benefit plan obligations, minus the fair value of defined benefit plan
assets, results in a deficit or surplus that is recognized as a net defined benefit liability or asset. If a
surplus exists in the defined benefit plan, the Company measures the net asset of the defined benefit plan
at the lower of the surplus or the asset ceiling.
All obligations under defined benefit plans, including those expected to be settled within twelve
months after the end of the annual reporting period in which the employees render services, are
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discounted using the market yield of government bonds or high-quality corporate bonds in an active
market with maturity and currency that match the defined benefit plan obligations as of the balance sheet
date.
Service costs arising from defined benefit plans and the net interest on the net defined benefit
liability or asset are recognized in the current period’s profit or loss or the cost of relevant assets.
Changes resulting from remeasurement of the net defined benefit liability or asset are recognized in
other comprehensive income and are not reclassified to profit or loss in subsequent accounting periods.
Upon termination of the original defined benefit plan, amounts previously recognized in other
comprehensive income are reclassified to undistributed profits within equity.
When a defined benefit plan is settled, the difference between the present value of the defined
benefit plan obligations as of the settlement date and the settlement price is recognized as a gain or loss
on settlement.
(3) Accounting treatment of termination benefits
√ Applicable □ N/A
When the Company provides termination benefits to employees, it recognizes a liability for
employee benefits arising from termination benefits and includes it in the current period’s profit or loss
at the earlier of the following dates: when the Company is unable to unilaterally withdraw the offer of
termination benefits due to the termination plan or layoff proposal; or when the Company recognizes
costs or expenses related to restructuring that involves the payment of termination benefits.
(4) Accounting treatment of other long-term employee benefits
□ Applicable √ N/A
31. Provisions
√ Applicable □ N/A
The Company recognizes a provision for an obligation related to a contingent event when all of the
following conditions are met:
(1) The obligation is a present obligation assumed by the Company;
(2) It is probable that an outflow of economic benefits will be required to settle the obligation;
(3) The amount of the obligation can be reliably estimated.
Provisions are initially measured at the best estimate of the expenditure required to settle the
present obligation.
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In determining the best estimate, the Company takes into account the risks, uncertainties, and the
time value of money associated with the contingent event. Where the effect of the time value of money
is significant, the best estimate is determined by discounting the expected future cash outflows.
If there is a continuous range of possible outcomes and each outcome within that range is equally
likely, the best estimate is the midpoint of the range; in other situations, the best estimate is determined
as follows:
If the contingency involves a single item, the most likely amount is used;
If the contingency involves multiple items, the estimate is calculated by weighing all possible
outcomes by their associated probabilities.
Where the expenditure required to settle a provision is expected to be reimbursed, in whole or in
part, by a third party, the reimbursement is recognized as a separate asset when it is virtually certain that
the reimbursement will be received. The amount recognized for reimbursement does not exceed the
carrying value of the provision.
The Company reviews the carrying value of provisions at each balance sheet date and adjusts them
to reflect the current best estimate if there is evidence that the carrying value does not reflect the best
estimate.
The provision recognized by the Company includes the estimated cost for post-sale quality
maintenance of products, which is accrued at 1.2% of the total sales revenue of the complete products.
32. Share-based payments
√ Applicable □ N/A
The Company engages in share-based payment transactions, granting equity instruments or
incurring liabilities based on equity instruments in exchange for services provided by employees or other
parties. Share-based payments are classified as either equity-settled or cash-settled.
1. Equity-settled share-based payments
For equity-settled share-based payments in exchange for services provided by employees, the fair
value of the equity instruments granted is measured at the grant date. For transactions where the equity
instruments are vested immediately upon granting, the cost or expense is recognized on the grant date at
the fair value of the equity instruments, with a corresponding increase in capital reserves. For
transactions where the equity instruments are vested after completing a service period or achieving
specific performance conditions during the vesting period, the Company recognizes the services
received during the vesting period based on the best estimate of the number of equity instruments
expected to vest, measured at the fair value at the date of grant, with a corresponding increase in capital
reserves at each balance sheet date.
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If the terms of an equity-settled share-based payment are modified, the Company recognizes, at a
minimum, the services received as if the terms had not been modified. In addition, any increase in the
fair value of the equity instruments resulting from the modification, or any modification that benefits the
employees as of the modification date, is recognized as an additional cost of the services acquired.
If an equity-settled share-based payment is canceled during the vesting period, the Company
accounts for the cancellation as an acceleration of vesting, recognizing immediately the amount that
would otherwise have been recognized for services received over the remainder of the vesting period,
with a corresponding increase in capital reserves. However, if a new equity instrument is granted as a
replacement for the canceled equity instrument and is identified as a replacement on the grant date, the
replacement equity instrument is treated as a modification of the original equity instrument, and the
Company accounts for it accordingly.
2. Cash-settled share-based payments
For cash-settled share-based payments, the liability is measured at the fair value of the liability
incurred based on the Company’s shares or other equity instruments. For transactions where the liability
is vested immediately upon granting, the Company recognizes the cost or expense at the grant date,
measured at the fair value of the liability, with a corresponding increase in liabilities. For transactions
where the liability is vested after completing a service period or achieving specific performance
conditions during the vesting period, the Company recognizes the services received during the vesting
period based on the best estimate of the vested liability, measured at the fair value of the liability, with a
corresponding increase in liabilities at each balance sheet date. The fair value of the liability is
remeasured at each balance sheet date and on the settlement date, with any changes recognized in profit
or loss in the current period.
If the terms and conditions of a cash-settled share-based payment are modified to become
equity-settled, the Company measures the equity-settled share-based payment at the fair value of the
equity instruments granted on the modification date, regardless of whether the modification occurs
during or after the vesting period. The Company recognizes the services received up to the modification
date as capital reserves, while derecognizing the liability for the cash-settled share-based payment
previously recognized on the modification date. The difference between the two is recognized in profit
or loss in the current period. If the vesting period extends or shortens as a result of the modification, the
Company accounts for the transaction over the revised vesting period.
33. Other financial instruments such as preferred shares and perpetual bonds
□ Applicable √ N/A
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34. Revenue
(1) Disclosure of accounting policies used for revenue recognition and measurement by business
type
√ Applicable □ N/A
1. Accounting policies used for revenue recognition and measurement
The Company recognizes revenue when it fulfills its performance obligations under a contract, i.e.,
when the customer obtains control of the related goods or services. The customer obtains control of the
related goods or services when it can direct the use of and obtain substantially all the economic benefits
from the goods or services.
If a contract contains two or more performance obligations, the Company allocates the transaction
price to each performance obligation based on the relative standalone selling prices of the goods or
services promised in the contract. The Company measures revenue based on the transaction price
allocated to each performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled in
exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third
parties and amounts expected to be refunded to the customer. The Company determines the transaction
price based on the contract terms and its customary business practices, considering factors such as
variable consideration, the existence of a significant financing component in the contract, non-cash
consideration, and consideration payable to the customer. The Company determines the transaction price
including variable consideration at an amount that is not expected to materially reverse cumulative
revenue recognized when the uncertainty is resolved. If a significant financing component exists in the
contract, the Company determines the transaction price as the amount payable by the customer in cash at
the point in time when the customer obtains control of the goods or services, and the difference between
the transaction price and the contract consideration is amortized over the contract period using the
effective interest method.
A performance obligation is fulfilled over time if one of the following conditions is met; otherwise,
it is fulfilled at a point in time:
The customer simultaneously receives and consumes the benefits provided by the Company’s
performance as the Company performs.
The customer controls the asset as the Company creates or enhances it.
The asset being created has no alternative use to the Company, and the Company has an
enforceable right to payment for performance completed to date, cumulatively, throughout the term of
the contract.
For performance obligations satisfied over time, the Company recognizes revenue based on the
progress toward complete satisfaction of the performance obligation during the period, except when the
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progress cannot be reasonably measured. The Company determines the progress toward satisfaction of
the performance obligation using an output method or an input method, depending on the nature of the
goods or services. When progress cannot be reasonably measured, but costs incurred are expected to be
recoverable, the Company recognizes revenue to the extent of the costs incurred until progress is
reasonably determinable.
For performance obligations fulfilled at a point in time, the Company recognizes revenue when the
customer obtains control of the related goods or services. In determining whether a customer has
obtained control of the goods or services, the Company considers the following indicators:
The Company has a present right to payment for the goods or services, meaning the customer
has a present obligation to pay for the goods or services.
The Company has transferred the legal title of the goods to the customer, meaning the
customer has obtained legal ownership of the goods.
The Company has transferred physical possession of the goods to the customer, meaning the
customer has taken physical possession of the goods.
The Company has transferred the significant risks and rewards of ownership of the goods to
the customer, meaning the customer has obtained the primary risks and rewards of ownership of the
goods.
The customer has accepted the goods or services.
The Company determines whether it acts as a principal or an agent in a transaction by assessing
whether it controls the goods or services before transferring them to the customer. If the Company
controls the goods or services before transferring them to the customer, it acts as a principal and
recognizes revenue based on the gross amount of consideration received or receivable. Otherwise, the
Company acts as an agent and recognizes revenue based on the amount of commission or fee to which it
expects to be entitled.
2. Disclosure of specific revenue recognition methods and measurement approaches by business
type
(1) Revenue from the sale of automated equipment
The Company’s main products are automated equipment. After the Company signs an equipment
sales contract with a customer, the Company delivers the completed equipment to the customer for
acceptance. The Company also arranges for personnel to install, commission, and test the equipment
until it passes trial operation. After the customer confirms acceptance on the product acceptance form
and other documents, the Company recognizes the corresponding sales revenue and transfers the cost of
the equipment sold and the cost of the services provided.
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(2) Revenue from the sale of spare parts related to equipment
The Company recognizes revenue from the sale of spare parts related to equipment when the goods
are delivered to the customer and the customer signs the receipt.
(3) Revenue from equipment modification services
The Company provides equipment modification services. Revenue is recognized by the Company
after the modification and installation are completed and the customer confirms acceptance on the
modification project acceptance form and other documents. The Company also carries forward the cost
of modification materials and the cost of the services provided.
(2) Different revenue recognition methods and measurement approaches involving different
operating models for similar business activities
□ Applicable √ N/A
35. Contract costs
□ Applicable √ N/A
36. Government grants
√ Applicable □ N/A
1. Types
Government grants refer to the monetary or non-monetary assets that the Company receives from
the government without compensation. These grants are categorized as either asset-related government
grants or income-related government grants.
Asset-related government grants are those that the Company receives to acquire, construct, or
otherwise form long-term assets. Income-related government grants refer to all government grants other
than those related to assets.
The specific criteria for classifying government grants as asset-related are as follows: Government
grants used to construct or otherwise form long-term assets are classified as asset-related government
grants.
The specific criteria for classifying government grants as income-related are as follows: All
government grants that are not asset-related are classified as income-related government grants.
For government grants where the government documents do not clearly specify the target, the
Company determines whether the grant is asset-related or income-related based on the following
judgment criteria:
(1) If the government document specifies a particular project that the grant targets, the Company
allocates the grant based on the relative proportion of expenditures that will form assets versus those that
will be expensed. This allocation ratio is reviewed at each balance sheet date and adjusted if necessary.
(2) If the government document only generally states the purpose without specifying a particular
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project, the grant is classified as income-related.
2. Recognition timing
Income-related government grants: For government grants obtained by the Company based on a
fixed quota, they are measured at the receivable amount and recognized when the Company meets the
attached conditions and it is certain that the government grant will be received. For government grants
not obtained by the Company based on a fixed quota, they are recognized when the Company meets the
attached conditions and actually receives the government grant funds.
Asset-related government grants: These are recognized when the Company meets the attached
conditions and actually receives the government grant funds.
3. Accounting treatment
Asset-related government grants are either deducted from the carrying value of the related asset or
recognized as deferred income. If recognized as deferred income, the amount is systematically amortized
into profit or loss over the useful life of the related asset using a reasonable method. If the grant is
related to the Company’s normal activities, it is included in other income; if unrelated to the Company’s
normal activities, it is included in non-operating income.
If the grant is used to compensate for future costs, expenses, or losses of the Company, it is
recognized as deferred income and included in profit or loss during the period in which the related costs,
expenses, or losses are recognized. If related to the Company’s normal activities, it is included in other
income; if unrelated to the Company’s normal activities, it is included in non-operating income or is
used to offset the related costs, expenses, or losses. If the grant is used to compensate for costs, expenses,
or losses already incurred by the Company, it is directly included in the profit or loss in the current
period. If related to the Company’s normal activities, it is included in other income; if unrelated to the
Company’s normal activities, it is included in non-operating income or is used to offset against the
related costs, expenses, or losses.
37. Deferred income tax assets and deferred income tax liabilities
√ Applicable □ N/A
Income tax includes current income tax and deferred income tax. Except for income tax arising
from business combinations and transactions or events directly recognized in equity (including other
comprehensive income), the Company recognizes current income tax and deferred income tax in profit
or loss for the period.
Deferred income tax assets and deferred income tax liabilities are recognized based on the
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differences (temporary differences) between the tax bases of assets and liabilities and their carrying
values.
Deferred income tax assets are recognized for deductible temporary differences to the extent that it
is probable that future taxable income will be available against which the deductible temporary
differences can be utilized. Deferred income tax assets are also recognized for deductible losses and tax
credits that can be carried forward to future years, to the extent that it is probable that future taxable
income will be available against which these deductible losses and tax credits can be utilized.
Deferred income tax liabilities are recognized for taxable temporary differences, except in certain
specific circumstances.
Specific circumstances where deferred income tax assets or deferred income tax liabilities are not
recognized include:
The initial recognition of goodwill;
Transactions or events that are not business combinations and, at the time of the transaction,
do not affect accounting profit or taxable income (or deductible loss), and do not result in
taxable or deductible temporary differences.
For taxable temporary differences related to investments in subsidiaries, associates, and joint
ventures, deferred income tax liabilities are recognized, except when the Company can control
the timing of the reversal of the temporary differences, and probably, the temporary differences
will not reverse in the foreseeable future. For deductible temporary differences related to
investments in subsidiaries, associates, and joint ventures, deferred income tax assets are
recognized when the temporary differences will probably reverse in the foreseeable future and
sufficient taxable income will be available to utilize the deductible temporary differences.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are
measured at the tax rates that are expected to apply in the period when the asset is realized or the liability
is settled, based on the tax laws.
The Company reviews the carrying value of deferred income tax assets at each balance sheet date.
If it is no longer probable that sufficient taxable income will be available to utilize the benefits of the
deferred income tax assets, the carrying value of the deferred tax assets is written down accordingly. The
write-downs are reversed when it is more likely than not that sufficient taxable income will be available
to allow the benefits of the deferred tax assets to be utilized.
When there is a legally enforceable right to offset current income tax assets against current income
tax liabilities and the intention to settle on a net basis, or to acquire the assets and settle the liabilities
simultaneously, current income tax assets and current income tax liabilities are presented on a net basis
after offsetting.
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At the balance sheet date, deferred income tax assets and deferred income tax liabilities are
presented on a net basis after offsetting when the following conditions are simultaneously met:
The taxable entity has a legal right to settle current income tax assets against current income
tax liabilities;
The deferred income tax assets and deferred income tax liabilities relate to income taxes levied
by the same taxation authority on the same taxable entity, or on different taxable entities that
intend to settle current tax assets and liabilities on a net basis, or to realize the assets and settle
the liabilities simultaneously in each future period when material amounts of deferred income
tax assets or liabilities are expected to reverse.
38. Leases
√ Applicable □ N/A
Simplified treatment for short-term leases and low-value asset leases as a lessee: judgment criteria
and accounting treatment
√ Applicable □ N/A
(1) Right-of-use assets
At the commencement date of the lease, the Company recognizes right-of-use assets for leases
other than short-term leases and low-value asset leases. Right-of-use assets are initially measured at cost.
The cost includes:
The initial measurement amount of the lease liability;
Lease payments made on or before the commencement date, less any lease incentives
received;
Initial direct costs incurred by the Company;
Costs expected to be incurred by the Company for dismantling and removing the leased asset,
rehabilitating the site on which the asset is located, or restoring the leased asset to the
condition required by the lease terms, excluding costs incurred to produce inventory.
The Company subsequently depreciates the right-of-use assets using a straight-line method over the
lease term. If the ownership of the leased asset can be reasonably determined by the end of the lease
term, the right-of-use asset is depreciated over the remaining useful life of the leased asset; otherwise,
the leased asset is depreciated over the shorter of the lease term or the remaining useful life of the leased
asset.
The Company determines whether the right-of-use asset has been impaired by the principles set
forth in “27. Impairment of long-term assets” and accounts for any identified impairment losses
accordingly.
(2) Lease liabilities
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At the commencement date of the lease, the Company recognizes lease liabilities for leases other
than short-term leases and low-value asset leases. Lease liabilities are initially measured at the present
value of the lease payments that have not yet been paid. Lease payments include:
Fixed payments (including in-substance fixed payments), net of amounts related to any lease
incentives;
Variable lease payments that depend on an index or rate;
Amounts expected to be payable under residual value guarantees;
The exercise price of a purchase option, if the Company is reasonably certain to exercise that
option;
Payments for terminating the lease provided the lease term reflects the exercise of a
termination option.
The Company uses the interest rate implicit in the lease as the discount rate, or if that rate cannot be
readily determined, the Company uses its incremental borrowing rate as the discount rate.
The Company calculates the interest expense on the lease liability over the lease term at a fixed
periodic rate of interest and recognizes it in profit or loss or as part of the cost of the related asset.
Variable lease payments not included in the measurement of the lease liability are recognized in
profit or loss or as part of the cost of the related asset in the period in which the event or condition that
triggers those payments occurs.
After the commencement date of the lease, the Company remeasures the lease liability and adjusts
the corresponding right-of-use asset under the following circumstances. If the carrying value of the
right-of-use asset has been reduced to zero and a further reduction in the lease liability is required, the
difference is recognized in profit or loss in the current period:
When there is a change in the assessment of a purchase option, renewal option, or termination
option, or when the actual exercise of such an option differs from the previous assessment, the
Company remeasures the lease liability based on the present value of the revised lease
payments using the revised discount rate.
When there is a change in the amount of in-substance fixed payments, the expected amount
payable under a residual value guarantee, or the index or rate used to determine lease
payments, the Company remeasures the lease liability at the present value of the revised lease
payments using the original discount rate. However, if the change in lease payments results
from a change in a floating interest rate, the present value is calculated based on the revised
discount rate.
(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
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and low-value asset leases. Instead, the related lease payments are recognized in profit or loss or as part
of the cost of the related asset on a straight-line basis over the lease term. A short-term lease is defined as
a lease that, at the commencement date, has a lease term of 12 months or less and does not contain a
purchase option. A low-value asset lease refers to a lease where the value of the underlying asset is low
when it is new. If the Company subleases or expects to sublease the leased asset, the original lease does
not qualify as a low-value asset lease.
(4) Lease modifications
If a lease modification meets both of the following conditions, the Company accounts for the lease
modification as a separate lease:
The lease modification increases the scope of the lease by adding the right to use one or more
underlying assets;
The increased consideration for the lease modification is comparable to the standalone price
for the increase in scope adjusted to reflect the circumstances of the contract.
If a lease modification is not accounted for as a separate lease, the Company reallocates the
consideration in the modified contract, reassesses the lease term, and remeasures the lease liability at the
present value of the revised lease payments using a revised discount rate as of the effective date of the
modification.
If the lease modification results in a reduction in the scope of the lease or a shortening of the lease
term, the Company reduces the carrying value of the right-of-use asset and recognizes any gain or loss
related to the partial or full termination of the lease in profit or loss in the current period. For other lease
modifications that result in the remeasurement of the lease liability, the Company adjusts the carrying
value of the right-of-use asset accordingly.
Criteria for lease classification and accounting treatment as a lessor
√ Applicable □ N/A
At the commencement date of the lease, the Company classifies leases as either finance leases or
operating leases. A finance lease refers to a lease that transfers substantially all the risks and rewards
incidental to ownership of the leased asset, regardless of whether the title is eventually transferred. An
operating lease refers to a lease other than a finance lease. When the Company acts as an intermediate
lessor, the classification of a sublease is based on the right-of-use asset arising from the original lease.
(1) Accounting treatment for operating leases
Lease payments received under operating leases are recognized as lease income on a straight-line
basis over the lease term. Initial direct costs incurred by the Company related to operating leases are
capitalized and apportioned to profit or loss on the same basis as the lease income. Variable lease
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payments not included in the lease receipts are recognized in profit or loss when they occur. When an
operating lease is modified, the Company accounts for it as a new lease from the effective date of the
modification. Lease receipts or amounts receivable related to the lease before the modification are
regarded as receipts under the new lease.
(2) Accounting treatment for finance leases
At the commencement date of a finance lease, the Company recognizes finance lease receivables
and derecognizes the leased asset. When initially measuring finance lease receivables, the Company
records them at the net investment in the lease. The net investment in the lease is the sum of the present
value of the lease payments not yet received and the unguaranteed residual value at the commencement
date of the lease term, discounted at the interest rate implicit in the lease.
The Company calculates and recognizes interest income over the lease term using a constant
periodic rate of return on the net investment in the lease. The derecognition and impairment of finance
lease receivables are accounted for in accordance with the principles outlined in “11. Financial
instruments” under the subsection “V. Significant Accounting Policies and Accounting Estimates.”
Variable lease payments not included in the measurement of the net investment in the lease are
recognized in profit or loss in the period when they occur.
If a finance lease modification meets both of the following conditions, the Company regards the
modification as a separate lease:
The modification increases the scope of the lease by adding the right to use one or more
underlying assets;
The consideration for the lease modification is equivalent to the standalone price for the
increase in scope adjusted to reflect the circumstances of the contract.
If a finance lease modification is not accounted for as a separate lease, the Company handles the
modified lease as follows:
If the lease would have been effective and classified as an operating lease at the
commencement date based on the modified terms, the Company accounts for the lease as a
new lease from the effective date of the modification, using the net investment in the lease as
the carrying value of the leased asset as of the modification date.
If the lease would have been effective and classified as a finance lease at the commencement
date based on the modified terms, the Company applies the accounting policies for contract
modifications as described in “11. Financial instruments” under the subsection “V. Significant
Accounting Policies and Accounting Estimates.”
Sale and leaseback transactions
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The Company evaluates whether the transfer of an asset in a sale and leaseback transaction
qualifies as a sale based on the principles outlined in “34. Revenue” in these notes.
(1) As a lessee
If the transfer of an asset in a sale and leaseback transaction qualifies as a sale, the Company, as the
lessee, measures the right-of-use asset arising from the leaseback at the proportion of the previous
carrying value of the asset that relates to the right of use retained by the Company. The Company
recognizes only the gain or loss related to the rights transferred to the lessor.
If the transfer of an asset in a sale and leaseback transaction does not qualify as a sale, the Company,
as the lessee, continues to recognize the transferred asset and recognizes a financial liability equal to the
transfer proceeds. The accounting for the financial liability is detailed in “11. Financial instruments”
under the subsection “V. Significant Accounting Policies and Accounting Estimates.”
(2) As a lessor
If the transfer of an asset in a sale and leaseback transaction qualifies as a sale, the Company, as the
lessor, accounts for the asset purchase in accordance with the policies described in “2. The Company as
a lessor” and accounts for the leaseback in accordance with the lease classification criteria and
accounting treatment for leases. If the transfer of an asset in a sale and leaseback transaction does not
qualify as a sale, the Company, as the lessor, does not recognize the transferred asset but instead
recognizes a financial asset equal to the transfer proceeds. The accounting for the financial asset is
detailed in “11. Financial instruments” under the subsection “V. Significant Accounting Policies and
Accounting Estimates.”
39. Other significant accounting policies and accounting estimates
√ Applicable □ N/A
Repurchase of the Company’s own shares:
When the Company repurchases its own shares, whether for reducing registered capital or for
employee incentives, the amount actually paid for the shares are accounted for as treasury stock and
recorded in a memorandum account. If the repurchased shares are subsequently canceled, the difference
between the total par value of the shares canceled (based on the number of shares and their par value)
and the actual repurchase payment is deducted from the capital reserve. If the capital reserve is
insufficient to offset the difference, the remaining amount is deducted from retained earnings. If the
repurchased shares are granted to employees as part of an equity-settled share-based payment
arrangement, the cost of the treasury shares delivered to the employees and the accumulated amount in
the capital reserve (other capital reserves) during the vesting period are derecognized upon the
employees exercising their rights to purchase the shares. The difference is adjusted in the capital reserve
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(share premium).
Debt restructuring
The Company as a creditor
The Company derecognizes a receivable when the contractual rights to the cash flows from the
receivable expire. For debt restructuring involving the settlement of debt through the transfer of assets or
conversion of debt into equity instruments, the Company recognizes the relevant assets when they meet
the definition and recognition criteria.
For debt restructuring in the form of settlement of debt through the transfer of non-financial assets,
the Company initially measures the acquired non-financial asset at cost. The cost of inventory includes
the fair value of the relinquished receivable and any other directly attributable costs such as taxes,
transportation fees, loading and unloading fees, and insurance costs incurred to bring the asset to its
present location and condition. The cost of investments in associates or joint ventures includes the fair
value of the relinquished receivable and any other directly attributable costs such as taxes. The cost of
investment property includes the fair value of the relinquished receivable and any other directly
attributable costs such as taxes. The cost of fixed assets includes the fair value of the relinquished
receivable and any directly attributable costs such as taxes, transportation fees, loading and unloading
fees, installation fees, and professional service fees incurred before the asset is brought to its intended
use. The cost of biological assets includes the fair value of the relinquished receivable and any directly
attributable costs including taxes, transportation fees, and insurance costs. The cost of intangible assets
includes the fair value of the relinquished receivable and any directly attributable costs such as taxes
incurred to bring the asset to its intended use. For debt restructuring involving the conversion of debt
into equity instruments, where the creditor converts the debt into an investment in an associate or joint
venture, the Company measures the initial investment cost based on the fair value of the relinquished
receivable and any directly attributable costs such as taxes. The difference between the fair value of the
relinquished receivable and its carrying value is recognized in profit or loss in the current period.
For debt restructuring involving the modification of other terms, the Company recognizes and
measures the restructured receivable under the principles set out in “11. Financial instruments” under the
subsection “V. Significant Accounting Policies and Accounting Estimates.”
For debt restructuring involving the settlement of debt through the transfer of multiple assets or a
combination of methods, the Company first recognizes and measures the acquired financial assets and
restructured receivables under “11. Financial instruments” under the subsection “V. Significant
Accounting Policies and Accounting Estimates.” Then, the Company allocates the net amount of the fair
value of the relinquished receivable, after deducting the amounts recognized for the acquired financial
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2024 Interim Report
assets and restructured receivables, based on the proportionate fair values of the other acquired assets,
and determines the costs of these assets using the aforementioned methods. The difference between the
fair value of the relinquished receivable and its carrying value is recognized in profit or loss in the
current period.
The Company as a debtor
The Company derecognizes a liability when the present obligation for the liability is discharged.
For debt restructuring in the form of the settlement of debt through the transfer of assets, the
Company derecognizes the liability when the transferred assets and the extinguished debt meet the
derecognition criteria. The difference between the carrying value of the extinguished debt and the
carrying value of the transferred assets is recognized in profit or loss in the current period.
For debt restructuring in the form of the conversion of debt into equity instruments, the Company
derecognizes the liability when the extinguished debt meets the derecognition criteria. The Company
measures the initial recognition of the equity instruments at their fair value. If the fair value of the equity
instruments cannot be reliably measured, the Company measures them at the fair value of the
extinguished debt. The difference between the carrying value of the extinguished debt and the
recognized amount of the equity instruments is recognized in profit or loss in the current period.
For debt restructuring in the form of the modification of other terms, the Company recognizes and
measures the restructured debt in accordance with the principles set out in “11. Financial instruments”
under the subsection “V. Significant Accounting Policies and Accounting Estimates.”
For debt restructuring in the form of the settlement of debt through the transfer of multiple assets or
a combination of methods, the Company recognizes and measures the equity instruments and
restructured debt following the methods described above. The difference between the carrying value of
the extinguished debt and the carrying value of the transferred assets, along with the recognized amounts
of the equity instruments and restructured debt, is recognized in profit or loss in the current period.
40. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□ Applicable √ N/A
(2) Changes in significant accounting estimates
□ Applicable √ N/A
(3) Adjustment of the financial statements at the beginning of the year of initial implementation of
new accounting standards or interpretations in 2024
□ Applicable √ N/A
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41. Others
□ Applicable √ N/A
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Taxes
1. Major tax categories and tax rates
Major tax categories and tax rates
√ Applicable □ N/A
Category Tax base Tax rate
Value added tax (VAT) The output tax is calculated based
on the sales of goods and taxable
service income calculated
according to tax laws. After
5.00%, 6.00%, 9.00%, 13.00%
deducting the input tax that can be
deducted in the current period, the
difference is the payable
value-added tax.
Urban maintenance and It is calculated and paid based on
construction tax the actual value-added tax and 7.00%
consumption tax paid.
Corporate income tax It is calculated and paid based on 15.00%, 17.00%, 20.00%,
taxable income 23.20%, 24%, 25.00%
Educational surcharge It is calculated and paid based on
the actual value-added tax and 3.00%
consumption tax paid.
Local educational surcharge It is calculated and paid based on
the actual value-added tax and 2.00%
consumption tax paid
√ Applicable □ N/A
Taxable entity Income tax rate (%)
Wuxi Autowell Technology Co., Ltd. 15.00
Wuxi Autowell Intelligent Equipment Co., Ltd. 15.00
Wuxi Autowell Optical Application Co., Ltd. 25.00
Wuxi Autowell Supply Chain Management Co., 25.00
Ltd.
Wuxi Songci Electromechanical Co., Ltd. 15.00
Wuxi Autowell XuRi Technology Co., Ltd. 15.00
Wuxi Autowell Coshin Semiconductor Technology 25.00
Co., Ltd.
Wuxi Autowell Zhiyuan Equipment Co., Ltd. 25.00
Qinhuangdao Autowell Zhiyuan Equipment Co., 20.00
Ltd.
Wuxi Leddo Technology Co., Ltd. 20.00
Wuxi Autowell Jiexin Technology Co., Ltd. 20.00
AUTOWELL Japan Corporation. 23.20
Autowell (Singapore) PTE. LTD. 17.00
Wuxi Polar New Enegry Co., Ltd. 20.00
AUTOWELL (MALAYSIA) SDN. BHD. 24.00
Polar New Enegry (Bengbu) Co., Ltd. 15.00
Wuhu Polar Photovoltaic Power Generation Co., 25.00
Ltd.
Beijing Linkong Polar Energy Management Co., 20.00
Ltd.
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2024 Interim Report
Polar New Enegry (Foshan) Co., Ltd. 20.00
Zhengzhou Polar New Enegry Co., Ltd. 20.00
Anhui Hengzhi Copper-Indium-Gallium-Selenium 15.00
Technology Co., Ltd.
2. Tax incentives
√ Applicable □ N/A
According to the Notice of the Ministry of Finance and the State Administration of Taxation on VAT
Policies for Software Products (CS [2011] No. 100), general taxpayers who sell their
self-developed software products shall be subject to an immediate refund policy for any portion of
their actual VAT liability exceeding 3% after being levied at the time of declaration. The software
products as mentioned in this Notice refer to information processing programs and related
documents and data, including computer software products, information systems, and embedded
software products. Embedded software products refer to the software products that are embedded in
computer hardware and machinery equipment, sold together with them, and form part of the
computer hardware or machinery equipment. The embedded software products produced by the
Company align with the above tax incentive policy. The Company has obtained a notice of
qualification for tax incentives issued by Wuxi Municipal Tax Service, State Taxation
Administration, and the tax incentive policy has taken effect since January 1, 2011.
According to the Announcement on Filing for the Second Batch of High-tech Enterprises Identified
in Jiangsu Province in 2021 issued by the National Leading Group Office for the Administration of
High-tech Enterprise Identification, Wuxi Autowell Technology Co., Ltd. was reviewed and
approved as a high-tech enterprise in 2021 and obtained a certificate of high-tech enterprise on
November 30, 2021 with the certificate number of GR202132005383. The qualification is valid for
three years, and its corporate income tax would be calculated at a reduced rate of 15% from 2021 to
2023 according to tax provisions.
According to the Announcement on Filing for the Third Batch of High-tech Enterprises Identified in
Jiangsu Province in 2022 issued by the National Leading Group Office for the Administration of
High-tech Enterprise Identification, Wuxi Autowell Intelligent Equipment Co., Ltd. was reviewed
and approved as a high-tech enterprise in 2022 and obtained a certificate of high-tech enterprise on
November 18, 2022 with the certificate number of GR202232009007. The qualification is valid for
three years, and its corporate income tax is reduced by 15% from 2022 to 2024 according to tax
provisions.
According to the Announcement on Filing for the Second Batch of High-tech Enterprises Identified
in Jiangsu Province in 2023 issued by the National Leading Group Office for the Administration of
143 / 236
2024 Interim Report
High-tech Enterprise Identification, Wuxi Songci Electromechanical Co., Ltd. was reviewed and
approved as a high-tech enterprise in 2023, with the certificate number of GR202332000273. The
qualification is valid for three years, and its corporate income tax is reduced by 15% from 2023 to
2025 according to tax provisions.
According to the Announcement on Filing for the First Batch of High-tech Enterprises Identified in
Anhui Province in 2022 issued by the National Leading Group Office for the Administration of
High-tech Enterprise Identification, Polar Photovoltaics (Bengbu) Co., Ltd. was reviewed and
approved as a high-tech enterprise in 2022 and obtained a certificate of high-tech enterprise on
October 18, 2022 with the certificate number of GR202234000834. The qualification is valid for
three years, and its corporate income tax is reduced at 15% from 2022 to 2024 according to tax
provisions.
According to the Announcement on Filing for High-tech Enterprises Identified in Anhui Province at
the end of 2022 issued by the National Leading Group Office for the Administration of High-tech
Enterprise Identification, Anhui Hengzhi Copper-Indium-Gallium-Selenium Technology Co., Ltd.
reviewed and approved as a high-tech enterprise in 2022 and obtained a certificate of high-tech
enterprise on October 18, 2022 with the certificate number of GR202234003486. The qualification
is valid for three years, and its corporate income tax is reduced by 15% from 2022 to 2024
according to tax provisions.
According to the Announcement of the Ministry of Finance and the State Administration of Taxation
on Further Implementing Preferential Policies for Income Taxes of Small and Micro Enterprises
(Announcement No. 13, 2022 by the Ministry of Finance and the State Administration of Taxation),
for small low-profit enterprises with annual taxable income exceeding RMB1 million but no more
than RMB3 million from January 1, 2022 to December 31, 2024, the portion shall be included in
the taxable income at a reduced rate of 25%, and their corporate income tax shall be paid at a rate
of 20%.
According to the Announcement of the Ministry of Finance and the State Administration of Taxation
on Preferential Policies for Income Taxes of Small and Micro Enterprises and Individual
Businesses (Announcement No. 6, 2023 by the Ministry of Finance and the State Administration of
Taxation), for small low-profit enterprises with annual taxable income of no more than RMB1
million from January 1, 2023 to December 31, 2024, the portion shall be included in the taxable
income at a reduced rate of 25%, and their corporate income tax shall be paid at a rate of 20%.
The subsidiaries of the Company, including Wuxi Autowell Zhiyuan Equipment Co., Ltd.,
Qinhuangdao Autowell Zhiyuan Equipment Co., Ltd., Wuxi Leddo Technology Co., Ltd., Wuxi
Autowell Jiexin Technology Co., Ltd., Wuxi Polar New Enegry Co., Ltd., Beijing Linkong Polar
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2024 Interim Report
Energy Management Co., Ltd., Polar New Enegry (Foshan) Co., Ltd. and Zhengzhou Polar New
Enegry Co., Ltd., are eligible for the preferential policies for small low-profit enterprises in 2023.
For the portion with an annual taxable income not exceeding RMB1 million, it is included in the
taxable income at a reduced rate of 25%, and corporate income tax is paid at the rate of 20%; for
the portion with an annual taxable income exceeding RMB1 million but no more than RMB3
million, it is included in the taxable income at a reduced rate of 25%, and corporate income tax is
paid at the rate of 20%.
3. Others
□ Applicable √ N/A
VII. Notes to the Consolidated Financial Statements
1. Monetary funds
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Cash on hand 394,157.19 387,917.07
Cash in banks 1,681,161,568.26 1,516,171,305.90
Other monetary funds 304,596,281.75 315,349,536.05
Deposits due from - -
financial companies
Total 1,986,152,007.20 1,831,908,759.02
Of which: Total amount 13,192,742.88 2,348,432.99
due from overseas
institutions
Other notes
Other monetary fund items:
Item Closing balance Closing balance of last year
Margin on bank
292,606,828.41 260,008,526.56
acceptance bill
Cash for investment
- 4,202,747.96
Performance bond 8,334,747.34 51,138,261.53
Frozen fund 3,654,706.00
Total 304,596,281.75 315,349,536.05
2. Trading financial assets
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Specified reasons and
Item Closing balance Opening balance
basis
Financial assets at fair value /
through profit or loss
Of which:
Designated financial assets 220,055,388.89 1,013,130,849.65
145 / 236
2024 Interim Report
measured at fair value through
profit or loss in the current
period
Of which:
Total 220,055,388.89 1,013,130,849.65 /
Other notes:
□ Applicable √ N/A
3. Derivative financial assets
□ Applicable √ N/A
4. Notes receivable
(1) Classification of notes receivable
□ Applicable √ N/A
(2) Notes receivable pledged by the Company at the end of the period
□ Applicable √ N/A
(3) Notes receivable not yet matured on the balance sheet date that have been
endorsed or discounted by the Company at the end of the period
□ Applicable √ N/A
(4) Disclosure by bad debt provision method
□ Applicable √ N/A
Provision for bad debts based on individual item:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
Basis for classification at different phases and provision ratio for bad debts
N/A
Notes to significant changes in the carrying amount of accounts receivable with changes in loss
provisions in the current period:
□ Applicable √ N/A
(5) Provision for bad debts
□ Applicable √ N/A
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes:
N/A
(6) Notes receivable actually written off in the current period
□ Applicable √ N/A
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2024 Interim Report
Of which, significant notes receivable written off:
□ Applicable √ N/A
Notes to the write-off of notes receivable:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
5. Accounts receivable
(1) Disclosure by aging
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Aging Closing balance Opening balance
Within 1 year
Of which: sub-items within 1 year
2,170,091,311.00 1,583,764,305.97
Subtotal of accounts within 1 2,170,091,311.00 1,583,764,305.97
year
1 to 2 years 203,849,637.91 150,428,366.49
2 to 3 years 67,006,098.16 41,321,786.08
Over 3 years 67,659,804.98 48,078,490.10
Less: Provision for bad debts 311,581,374.62 231,837,233.27
Total 2,197,025,477.43 1,591,755,715.37
(2) Disclosure by bad debt provision method
√ Applicable □ N/A
Closing balance Opening balance
Type Carrying amount Provision for bad debts Carrying amount Provision for bad debts
Carrying value Carrying value
Ratio Provision Ratio Provision
Amount Amount Amount Amount
(%) ratio (%) (%) ratio (%)
Provision for 132,740,164.67 5.29 132,740,164.67 100.00 - 100,049,103.70 5.49 100,049,103.70 100.00 -
bad debts
based on
individual
items
Of which:
Provision for 132,740,164.67 5.29 132,740,164.67 100.00 - 100,049,103.70 5.49 100,049,103.70 100.00 -
bad debts
based on
individual
items
Provision for 2,375,866,687.38 94.71 178,841,209.95 7.53 2,197,025,477.43 1,723,543,844.94 94.51 131,788,129.57 7.65 1,591,755,715.37
bad debts
based on the
combination
of items
Of which:
Provision for 2,375,866,687.38 94.71 178,841,209.95 7.53 2,197,025,477.43 1,723,543,844.94 94.51 131,788,129.57 7.65 1,591,755,715.37
bad debts
based on the
combination
of credit risk
characteristics
Total 2,508,606,852.05 / 311,581,374.62 / 2,197,025,477.43 1,823,592,948.64 / 231,837,233.27 / 1,591,755,715.37
Unit: Yuan, Currency: RMB
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2024 Interim Report
Provision for bad debts based on individual items:
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance
Name Carrying Provision for Provision Provision
amount bad debts ratio (%) reasons
761,966.00 761,966.00 100.00 On the verge of
Customer 1
bankruptcy
Customer 2 405,369.80 405,369.80 100.00 Bankruptcy
762,559.59 762,559.59 100.00 Difficulty in
Customer 3 payment
collection
135,750.00 135,750.00 100.00 Difficulty in
Customer 4 payment
collection
Customer 5 200,000.00 200,000.00 100.00 Under prosecution
Customer 6 790,959.00 790,959.00 100.00 Under prosecution
Customer 7 3,113,451.05 3,113,451.05 100.00 Bankruptcy
Customer 8 6,009,191.50 6,009,191.50 100.00 Bankruptcy
Customer 9 816,760.00 816,760.00 100.00 Bankruptcy
Customer 10 1,979,760.13 1,979,760.13 100.00 Under prosecution
Customer 11 17,987,500.00 17,987,500.00 100.00 Bankruptcy
Customer 12 1,572,512.86 1,572,512.86 100.00 Under prosecution
737.82 737.82 100.00 Difficulty in
Customer 13 payment
collection
1,111,894.00 1,111,894.00 100.00 Difficulty in
Customer 14 payment
collection
602,000.00 602,000.00 100.00 Difficulty in
ustomer 15 payment
collection
Customer 16 2,273,337.06 2,273,337.06 100.00 Bankruptcy
1,592,000.00 1,592,000.00 100.00 Difficulty in
Customer 17 payment
collection
Customer 18 1,112,000.00 1,112,000.00 100.00 Bankruptcy
Customer 19 2,514,000.00 2,514,000.00 100.00 Under prosecution
Customer 20 670,828.99 670,828.99 100.00 Under prosecution
15,119,600.27 15,119,600.27 100.00 Difficulty in
Customer 21 payment
collection
Customer 22 5,022,400.00 5,022,400.00 100.00 Under prosecution
Customer 23 9,590,631.73 9,590,631.73 100.00 Bankruptcy
15,500.00 15,500.00 100.00 Difficulty in
Customer 24 payment
collection
1,018,267.50 1,018,267.50 100.00 Difficulty in
Customer 25 payment
collection
Customer 26 1,827,230.76 1,827,230.76 100.00 Under prosecution
Customer 27 640,000.00 640,000.00 100.00 Under prosecution
Customer 28 150,000.00 150,000.00 100.00 nder prosecution
17,385.00 17,385.00 100.00 Difficulty in
Customer 29 payment
collection
Customer 30 771,000.00 771,000.00 100.00 Bankruptcy
6,524,000.00 6,524,000.00 100.00 Difficulty in
Customer 31 payment
collection
1,640,000.00 1,640,000.00 100.00 Difficulty in
Customer 32
payment
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2024 Interim Report
collection
Customer 33 3,000,000.00 3,000,000.00 100.00 Under prosecution
7,518,700.00 7,518,700.00 100.00 Difficulty in
Customer 34 payment
collection
12,373,833.24 12,373,833.24 100.00 Difficulty in
Customer 35 payment
collection
928,000.00 928,000.00 100.00 Difficulty in
Customer 36 payment
collection
3,840,000.00 3,840,000.00 100.00 Difficulty in
Customer 37 payment
collection
Customer 38 1,969,200.00 1,969,200.00 100.00 Bankruptcy
227,020.50 227,020.50 100.00 Difficulty in
Customer 39 payment
collection
3,941,537.07 3,941,537.07 100.00 Difficulty in
Customer 40 payment
collection
2,939,377.30 2,939,377.30 100.00 Difficulty in
Customer 41 payment
collection
1,325,903.50 1,325,903.50 100.00 Difficulty in
Customer 42 payment
collection
Customer 43 888,000.00 888,000.00 100.00 Under prosecution
7,040,000.00 7,040,000.00 100.00 Difficulty in
Customer 44 payment
collection
Total 132,740,164.67 132,740,164.67 100.00 /
Notes to provision for bad debts based on individual items:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
√ Applicable □ N/A
Combination provision item: Provision for bad debts based on the combination of credit risk
characteristics
Unit: Yuan, Currency: RMB
losing balance
Name
Accounts receivable Provision for bad debts Provision ratio (%)
Within 1 year 2,127,564,460.45 106,085,298.72 5.00
1 to 2 years 184,379,691.69 26,740,810.90 15.00
2 to 3 years 35,814,869.80 17,907,434.90 50.00
Over 3 years 28,107,665.43 28,107,665.43 100.00
Total 2,375,866,687.38 178,841,209.95
Notes to provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
Basis for classification at different phases and provision ratio for bad debts
N/A
Notes to significant changes in the carrying amount of accounts receivable with changes in loss
provisions in the current period:
□ Applicable √ N/A
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(3) Provision for bad debts
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount of change for the period
Amount
Opening Amount charged Closing
Type Other
balance Provision recovered or off or balance
changes
reversed written
off
Provision 100,049,103.70 45,372,333.30 12,627,272.33 54,000.00 132,740,164.67
for bad
debts based
on
individual
items
Provision 131,788,129.57 85,774,067.22 38,720,986.84 178,841,209.95
for bad
debts based
on
combination
of items
Total 231,837,233.27 131,146,400.52 51,348,259.17 54,000.00 - 311,581,374.62
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
(4) Accounts receivable actually written off in the current period
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount written off
Accounts receivable actually written off 54,000.00
Of which, significant accounts receivable written off
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Whether the
Nature of Write-off payment is
Amount Write-off
Entity name accounts procedures generated from
written off reasons
receivable performed related party
transactions
Jiangsu Jingke Payment for 54,000.00 A reduction of Approved by the No
Tiansheng goods RMB54,000 Management
Energy Co., Ltd.
Total / 54,000.00 / / /
Notes to the write-off of accounts receivable:
□ Applicable √ N/A
(5) Top five accounts receivable and contract assets by closing balance of debtor
√ Applicable □ N/A
150 / 236
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Unit: Yuan, Currency: RMB
Ratio of the
total closing
Closing Closing balance
Closing balance balance of Closing balance
Entity balance of of accounts
of accounts accounts of provision for
name contract receivable and
receivable receivable bad debts
assets contract assets
and contract
assets(%)
Customer 1 198,032,188.21 198,032,188.21 7.90 9,905,109.41
Customer 2 184,356,718.17 184,356,718.17 7.35 9,217,835.91
Customer 3 163,903,309.73 163,903,309.73 6.53 11,355,541.13
Customer 4 146,293,522.83 146,293,522.83 5.83 9,627,159.13
Customer 5 140,497,111.71 140,497,111.71 5.60 8,655,989.73
Total 833,082,850.65 - 833,082,850.65 33.21 48,761,635.30
Other notes
N/A
Other notes:
□ Applicable √ N/A
6. Contract assets
(1) Contract assets
□ Applicable √ N/A
(2) Amount and reasons for significant changes in carrying value during the reporting period
□ Applicable √ N/A
(3) Disclosure by bad debt provision method
□ Applicable √ N/A
Provision for bad debts based on individual items:
□ Applicable √ N/A
Notes to provision for bad debts based on individual items:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
Basis for classification at different phases and provision ratio for bad debts
Notes to significant changes in the carrying amount of contract assets with changes in loss provisions in
the current period:
□ Applicable √ N/A
(4) Provision for bad debts on contract assets in the current period
□ Applicable √ N/A
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Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes:
N/A
(5) Contract assets actually written off in the current period
□ Applicable √ N/A
Of which, significant contract assets written off
□ Applicable √ N/A
Notes to the write-off contract assets:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
7. Receivable financing
(1) Classification of receivable financing
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Notes receivable 593,758,687.62 1,399,734,854.14
Total 593,758,687.62 1,399,734,854.14
(2) Receivable financing pledged by the Company at the end of the period
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Pledged amount at the end of the period
Notes receivable 170,332,260.22
Total 170,332,260.22
(3) Receivable financing not yet matured on the balance sheet date that have been endorsed
or discounted by the Company at the end of the period
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount derecognized at the end Amount not yet derecognized at
Item
of the period the end of the period
Notes receivable 217,848,735.88 425,709,101.20
Total 217,848,735.88 425,709,101.20
(4) Disclosure by bad debt provision method
□ Applicable √ N/A
Provision for bad debts based on individual items:
□ Applicable √ N/A
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Notes to provision for bad debts based on individual items:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
Basis for classification at different phases and provision ratio for bad debts
N/A
Notes to significant changes in the carrying amount of receivable financing with changes in loss
provisions in the current period:
□ Applicable √ N/A
(5) Provision for bad debts
□ Applicable √ N/A
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes:
N/A
(6) Receivable financing actually written off in the current period
□ Applicable √ N/A
Of which, significant receivable financing written off:
□ Applicable √ N/A
Notes to the write-off of receivable financing:
□ Applicable √ N/A
(7) Changes in capital period and fair value of accounts receivable:
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item As at end of last Increase Derecognized Total Closing Accumulated
year amount increase balance provision for
losses
recognized in
other
comprehensive
income
Notes 1,399,734,854.14 2,148,270,507.93 2,954,246,674.45 - 593,758,687.62 -
receivable
Total 1,399,734,854.14 2,148,270,507.93 2,954,246,674.45 - 593,758,687.62 -
153 / 236
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(8) Other notes:
□ Applicable √ N/A
8. Prepayments
(1) Prepayments by aging
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Aging
Amount Ratio (%) Amount Ratio (%)
Within 1 year 157,024,220.08 93.40 143,368,856.76 96.53
1 to 2 years 9,859,926.01 5.87 3,349,468.35 2.26
2 to 3 years 1,219,292.27 0.73 1,586,850.77 1.07
Over 3 years 488.00 0.00 206,174.92 0.14
Total 168,103,926.36 100.00 148,511,350.80 100.00
Reasons for delayed settlement of significant prepayments with an aging of over 1 year:
N/A
(2) Top five prepayments by closing balance of supplier
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Entity name Closing balance Ratio of total closing balance of
prepayments(%)
Supplier 1 10,989,000.00 6.54
Supplier 2 8,171,467.30 4.86
Supplier 3 7,153,440.00 4.26
Supplier 4 6,850,095.50 4.07
Supplier 5 6,519,048.00 3.88
Total 39,683,050.80 23.61
Other notes
□ Applicable √ N/A
9. Other receivables
Itemlist
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Interest receivable - -
Dividends receivable - -
Other receivables 49,474,649.42 66,611,598.53
Total 49,474,649.42 66,611,598.53
Other notes:
□ Applicable √ N/A
Interest receivable
(1) Classification of interest receivable
□ Applicable √ N/A
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(2) Significant overdue interest
□ Applicable √ N/A
(3) Disclosure by bad debt provision method
□ Applicable √ N/A
Provision for bad debts based on individual items:
□ Applicable √ N/A
Notes to provision for bad debts based on individual items:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
(4) Provision for bad debts
□ Applicable √ N/A
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes:
N/A
(5) Interest receivable actually written off in the
current period
□ Applicable √ N/A
Of which, significant interest receivable written off:
□ Applicable √ N/A
Notes to the write-off of interest receivable:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Dividends receivable
(1) Dividends receivable
□ Applicable √ N/A
(2) Significant dividends receivable with an aging of over 1 year
□ Applicable √ N/A
(3) Disclosure by bad debt provision method
□ Applicable √ N/A
Provision for bad debts based on individual items:
155 / 236
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□ Applicable √ N/A
Notes to provision for bad debts based on individual items:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
(4) Provision for bad debts
□ Applicable √ N/A
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes:
N/A
(5) Dividends receivable actually written off in the current period
□ Applicable √ N/A
Of which, significant
□ Applicable √ N/A
Notes to the write-off of dividends receivable:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Other receivables
(1) Disclosure by aging
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Aging Closing balance Opening balance
Within 1 year
Of which: sub-items within 1 year
40,414,114.09 63,611,380.34
Subtotal of receivables within 1 40,414,114.09 63,611,380.34
year
1 to 2 years 10,508,316.20 5,902,447.12
2 to 3 years 3,780,000.00 3,406,518.75
Over 3 years 1,081,403.50 1,081,403.50
Less: Provision for bad debts 6,309,184.37 7,390,151.18
Total 49,474,649.42 66,611,598.53
(2) Classification by nature of receivables
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
156 / 236
2024 Interim Report
Nature of receivables Closing balance Opening balance
Provision for bad debts based on 859,023.95 859,023.95
individual items
Provision for bad debts based on 54,924,809.84 73,142,725.76
the combination of credit risk
characteristics
Total 55,783,833.79 74,001,749.71
(3) Provision for bad debts
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Phase 1 Phase 2 Phase 3
Expected credit Expected credit
Provision for Expected credit
loss over the entire loss over the entire Total
bad debts loss for the next 12
lifetime (without lifetime (with
months
credit impairment) credit impairment)
Balance as at 6,531,127.23 - 859,023.95 7,390,151.18
January 1,
2024
Balance as at - - - -
January 1,
2024, in the
current period
-- Carry over - - - -
to Phase 2
-- Carry over - - - -
to Phase 3
-- Carry over - - - -
to Phase 2
-- Carry over - - - -
to Phase 1
Provision 1,406,638.54 - - 1,406,638.54
Reversal 2,487,605.35 - - 2,487,605.35
Charge-off - - - -
Write-off - - - -
Other change - - - -
Balance as at 5,450,160.42 - 859,023.95 6,309,184.37
June 30, 2024
Basis for classification at different phases and provision ratio for bad debts
N/A
Notes to significant changes in the carrying amount of other receivables with changes in loss provisions
in the current period:
√ Applicable □ N/A
The amount of provision for bad debts in the current period and the basis for evaluating whether the
credit risk of financial instruments has significantly increased:
□ Applicable √ N/A
(4) Provision for bad debts
√ Applicable □ N/A
157 / 236
2024 Interim Report
Unit: Yuan, Currency: RMB
Amount of change for the period
Amount
Opening Amount charged Closing
Type Other
balance Provision recovered or off or balance
changes
reversed written
off
Provision for 859,023.95 - - - - 859,023.95
bad debts
based on
individual
items
Provision for 6,531,127.23 1,406,638.54 2,487,589.52 - -15.83 5,450,160.42
bad debts
based on
combination
of items
Total 7,390,151.18 1,406,638.54 2,487,589.52 - -15.83 6,309,184.37
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes
N/A
(5) Other receivables actually written off in the current period
□ Applicable √ N/A
Of which, significant receivables written off:
□ Applicable √ N/A
Notes to the write-off of other receivables:
□ Applicable √ N/A
(6) Top five other receivables by closing balance of debtor
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Ratio of total Closing balance
Closing closing balance of provision for
Entity name Nature Aging
balance of other bad debts
receivables (%)
Export
Institution 1 7,969,538.42 16.10
drawback
Within 1 year
Institution 2 2,970,000.00 6.00 Rental bond 2 - 3 years 1,485,000.00
Institution 3 2,020,000.00 4.08 Bid bond Within 1 year 101,000.00
Within 1 year
Institution 4 1,912,298.00 3.87 Rental bond 176,813.20
to 1-2 years
Institution 5 1,650,000.00 3.34 Rental bond 1 - 2 years 247,500.00
Total 16,521,836.42 33.39 / / 2,010,313.20
(7) Presented as other receivables due to centralized fund management
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
158 / 236
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10. Inventory
(1) Classification of inventory
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Provision for Provision for
inventory inventory
impairment/provis impairment/provis
Item Carrying Carrying Carrying Carrying
ion for ion for
amount value amount value
impairment of impairment of
contract contract
performance costs performance costs
Raw 309,508,719.3 289,243,626.8 374,137,100.6 355,943,359.5
20,265,092.48 18,193,741.13
materials 7 9 5 2
Goods in 686,865,440.0 678,664,363.8 976,796,067.5 970,301,489.0
8,201,076.25 6,494,578.45
progress 8 3 2 7
Commodit 171,436,481.3 159,681,408.6
11,755,072.65 68,265,331.71 8,887,853.40 59,377,478.31
y stocks 4 9
Goods
6,306,205,547. 6,147,068,983. 6,266,820,333. 6,166,297,745.
shipped in 81
159,136,564.08
73 22
100,522,588.20
02
transit
Consigned
processing 24,658,783.31 - 24,658,783.31 48,602,221.22 - 48,602,221.22
materials
Self-made
semi-finish 42,687,830.28 1,756,874.81 40,930,955.47 30,920,063.46 1,859,074.10 29,060,989.36
ed goods
Total 7,541,362,802.
201,114,680.27
7,340,248,121. 7,765,541,117.
135,957,835.28
7,629,583,282.
19 92 78 50
(2) Data resources recognized as inventory
□ Applicable √ N/A
(3) Provision for inventory impairment and provision for impairment of contract
performance cost
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Increase Decrease
Opening Amount Closing
Item
balance Provision Others reversed or Other balance
charged off
Raw
18,193,741.13 6,203,152.23 - 1,359,942.88 2,771,858.00 20,265,092.48
materials
Goods in
6,494,578.45 1,706,497.80 - - - 8,201,076.25
progress
Commodity
8,887,853.40 3,588,177.55 - - 720,958.30 11,755,072.65
stocks
Goods
shipped in 100,522,588.20 76,556,833.34 - - 17,942,857.46 159,136,564.08
transit
Self-made 1,859,074.10 -102,199.29 - - - 1,756,874.81
159 / 236
2024 Interim Report
semi-finished
goods
Total 135,957,835.28 87,952,461.63 - 1,359,942.88 21,435,673.76 201,114,680.27
Reasons for reversal or charge-off of provision for inventory impairment in the period
□ Applicable √ N/A
Provision for inventory impairment based on the combination of items
□ Applicable √ N/A
Criteria on provision for inventory impairment based on the combination of items
□ Applicable √ N/A
(4) Capitalized amount of borrowing costs included in the closing balance of inventory and its
calculation criteria and basis
□ Applicable √ N/A
(5) Notes to amortized amount of contract performance cost in the period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
11. Held-for-sale assets
□ Applicable √ N/A
12. Non-current assets due within one year
□ Applicable √ N/A
Debt investments due within one year
□ Applicable √ N/A
Other debt investments due within one year
□ Applicable √ N/A
Other notes to non-current assets due within one year
N/A
13. Other current assets
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Contract acquisition cost - -
Cost of returned goods receivable - -
Withholding income tax 216,838.33 15,737.67
Input tax to be deducted 118,758,542.48 78,283,604.86
Total 118,975,380.81 78,299,342.53
Other notes:
N/A
160 / 236
2024 Interim Report
14. Debt Investments
(1) Debt investments
□ Applicable √ N/A
Change in the provision for impairment of debt investments in the period
□ Applicable √ N/A
(2) Significant debt investments at the end of the period
□ Applicable √ N/A
(3) Provision for impairment
□ Applicable √ N/A
Basis for classification at different phases and provision ratio for impairment:
N/A
Notes to significant changes in the carrying amount of debt investments with changes in loss provisions
in the current period:
□ Applicable √ N/A
The amount of provision for impairment for the period and the basis for evaluating whether the credit
risk of financial instruments has significantly increased:
□ Applicable √ N/A
(4) Debt investments actually written off in the period
□ Applicable √ N/A
Of which, significant debt investments written off
□ Applicable √ N/A
Notes to the write-off of debt investments:
□ Applicable √ N/A
Other notes:
N/A
15. Other debt investments
(1) Other debt investments
□ Applicable √ N/A
Change in the provision for impairment of other debt investments in the period
□ Applicable √ N/A
(2) Significant other debt investments at the end of the period
□ Applicable √ N/A
(3) Provision for impairment
□ Applicable √ N/A
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(4) Other debt investments actually written off in the period
□ Applicable √ N/A
Of which, significant other debt investments written off
□ Applicable √ N/A
Notes to the write-off of other debt investments:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
16. Long-term receivables
(1) Long-term receivables
□ Applicable √ N/A
(2) Disclosure by bad debt provision method
□ Applicable √ N/A
Provision for bad debts based on individual items:
□ Applicable √ N/A
Notes to provision for bad debts based on individual items:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
(3) Provision for bad debts
□ Applicable √ N/A
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes:
N/A
(4) Long-term receivables actually written off in the current period
□ Applicable √ N/A
Of which, significant long-term receivables written off:
□ Applicable √ N/A
Notes to the write-off of long-term receivables:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
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17. Long-term equity investments
(1) Long-term equity investments
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Increase/decrease
Decla
ration
Adjus Closi
of
tment Oth ng
Openi Investment distri
The of er Provi balan
ng Addit Redu gains and butio Closing
investe other equi sion ce of
balanc ional ced losses n of Other balance
d comp ty for impai
e invest invest recognized cash s
entity rehen cha impai rment
ment ment under the divid
sive nge rment provi
equity method ends
inco s sion
or
me
profit
s
1.
Joint
ventur
es
Subtot - - - - - - - - - -
al
2.
Affilia
tes
Bengb 3,340, - - -4,273.97 - - - - - 3,336,3 -
u Reno 670.4 96.44
Vacuu 1
m
Techn
ology
Co.,
Ltd.
Subtot 3,340, - - -4,273.97 - - - - - 3,336,3 -
al 670.4 96.44
1
3,340, - - -4,273.97 - - - - - 3,336,3 -
Total 670.4 96.44
1
(2) Impairment testing of long-term equity investments
□ Applicable √ N/A
Other notes
N/A
163 / 236
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18. Other equity investments
(1) Other equity investments
□ Applicable √ N/A
(2) Notes to derecognition in the current period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
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19. Other non-current financial assets
□ Applicable √ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Financial assets at fair value through 161,131,813.17 185,271,024.08
profit or loss
Of which: Debt investments 20,969,754.40 20,969,754.40
Equity investments 140,162,058.77 164,301,269.68
Total 161,131,813.17 185,271,024.08
Other notes:
N/A
20. Investment properties
Measurement model for investment properties
N/A
(1) Impairment testing of investment properties using cost measurement model
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
21. Fixed assets
Itemlist
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Fixed assets 915,271,218.04 942,742,926.56
Disposal of fixed assets - -
Total 915,271,218.04 942,742,926.56
Other notes:
N/A
Fixed assets
(1) Fixed assets
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Buildings Electronic Other
Machinery Means of Office
Item and equipment equipment Total
equipment transport equipment
structures
I. Original
carrying
value
1. 848,381,122.75 79,672,765.2 19,442,339.3 13,006,214.1 24,216,722.2 50,919,708.8 1,035,638,872.7
Opening 8 7 5 9 7 1
balance
2. 5,715,544.96 1,007,870.84 718,839.82 76,721.54 2,014,752.53 1,247,796.60 10,781,526.29
Increase
(1) 5,715,544.96 1,007,870.84 718,839.82 76,721.54 2,014,752.53 1,247,796.60 10,781,526.29
Procureme
nt
165 / 236
2024 Interim Report
(2) - - - - - - -
Transfer
from
constructio
n in
progress
(3) - - - - - - -
Increase of
business
merger
3. - 882,416.81 - 10,994.69 353,445.88 106,651.32 1,353,508.70
Decrease
(1) - 882,416.81 - 10,994.69 353,445.88 106,651.32 1,353,508.70
Disposal or
scrapping
4. 854,096,667.71 79,798,219.3 20,161,179.1 13,071,941.0 25,878,028.9 52,060,854.1 1,045,066,890.3
Closing 1 9 0 4 5 0
balance
II. -
Accumulat
ed
depreciatio
n
1. 36,381,823.05 18,762,376.4 11,058,084.2 3,458,784.30 11,701,135.2 11,533,742.8 92,895,946.15
Opening 6 8 6 0
balance
2. 23,320,765.70 2,725,397.55 1,487,851.91 1,164,518.11 3,725,053.96 4,896,108.53 37,319,695.76
Increase
(1) 23,320,765.70 2,725,397.55 1,487,851.91 1,164,518.11 3,725,053.96 4,896,108.53 37,319,695.76
Provision
3. 5,108.22 203,176.19 - 522.25 204,442.17 6,720.82 419,969.65
Decrease
(1) 5,108.22 203,176.19 - 522.25 204,442.17 6,720.82 419,969.65
Disposal or
scrapping
4. 59,697,480.53 21,284,597.8 12,545,936.1 4,622,780.16 15,221,747.0 16,423,130.5 129,795,672.26
Closing 2 9 5 1
balance
III. -
Provision
for
impairment
1. - - - - - - -
Opening
balance
2. - - - - - - -
Increase
(1) - - - - - - -
Provision
3. - - - - - - -
Decrease
(1) - - - - - - -
Disposal or
scrapping
4. - - - - - - -
Closing
166 / 236
2024 Interim Report
balance
IV. -
Carrying
value
1. 794,399,187.18 58,513,621.4 7,615,243.00 8,449,160.84 10,656,281.8 35,637,723.6 915,271,218.04
Closing 9 9 4
carrying
value
2. 811,999,299.70 60,910,388.8 8,384,255.09 9,547,429.85 12,515,587.0 39,385,966.0 942,742,926.56
Opening 2 3 7
carrying
value
(2) Temporarily idle fixed assets
□ Applicable √ N/A
(3) Fixed assets leased under operating lease
□ Applicable √ N/A
(4) Fixed assets without certificate of title
□ Applicable √ N/A
(5) Impairment testing of fixed assets
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Disposal of fixed assets
□ Applicable √ N/A
22. Construction in progress
Itemlist
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Construction in progress 593,113,483.75 152,486,136.51
Construction materials - -
Total 593,113,483.75 152,486,136.51
Other notes:
N/A
Construction in progress
(1) Construction in progress
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Carrying Provision Carrying Provision
Item
amount for Carrying value amount for Carrying value
impairment impairment
Platform- 209,019,558.94 - 209,019,558.94 112,705,043.63 - 112,705,043.63
167 / 236
2024 Interim Report
based
high-end
intelligent
equipment
and smart
factory
Specialized 378,472,669.92 - 378,472,669.92 34,158,965.16 - 34,158,965.16
lithium ion
and
photovoltaic
equipment
and R&D
center
project
Other 5,621,254.89 - 5,621,254.89 5,622,127.72 - 5,622,127.72
sporadic
projects
Total 593,113,483.75 - 593,113,483.75 152,486,136.51 - 152,486,136.51
(2) Changes in significant construction projects in progress in the period
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Ratio of
Interest
Increase in the project Of which:
Fixed assets Accumulated capitalization
Project Opening Other Closing investment capitalized Source of
Budget current carried over Progress interest ratio in the
name balance decrease balance in total interest in the funds
period in the period capitalization current
budget current period
period (%)
(%)
Platform- 1,059,419,000.00 112,705,043.63 209,019,558.94 - - 321,724,602.57 30.37 70% 20,657,407.91 15,431,086.89 100.00 Capital raised
based from others
high-end
intelligent
equipment
and smart
factory
Specialized 1,041,909,500.00 34,158,965.16 231,608,661.13 - - 265,767,626.29 25.51 70% 1,564,750.62 1,564,750.62 100.00 Self-financing
lithium ion
and
photovoltaic
equipment
and R&D
center
project
Total - 146,864,008.79 440,628,220.07 - - 587,492,228.86 / / 22,222,158.53 16,995,837.51 / /
(3) Provision for impairment of construction in progress
□ Applicable √ N/A
(4) Impairment testing of construction in progress
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
Construction materials
□ Applicable √ N/A
23. Productive biological assets
(1) Productive biological assets using cost measurement model
□ Applicable √ N/A
168 / 236
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(2) Impairment testing of productive biological assets using cost measurement model
□ Applicable √ N/A
(3) Productive biological assets using fair-value measurement model
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
24. Oil and gas assets
(1) Oil and gas assets
□ Applicable √ N/A
(2) Impairment testing of oil and gas assets
□ Applicable √ N/A
Other notes:
N/A
25. Right-of-use assets
(1) Right-of-use assets
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Buildings and Transportation
Item Total
structures equipment
I. Original carrying value
1. Opening balance 169,560,129.16 802,150.79 170,362,279.95
2. Increase 14,843,870.62 - 14,843,870.62
- New leasing 14,843,870.62 - 14,843,870.62
3. Decrease 3,717,538.62 - 3,717,538.62
- Disposal 3,717,538.62 - 3,717,538.62
4. Closing balance 180,686,461.16 802,150.79 181,488,611.95
II. Accumulated depreciation
1. Opening balance 58,634,231.67 200,537.70 58,834,769.37
2. Increase 27,204,636.08 40,137.14 27,244,773.22
(1) Provision 27,204,636.08 40,137.14 27,244,773.22
3. Decrease 3,562,641.18 - 3,562,641.18
(1) Disposal 3,562,641.18 - 3,562,641.18
4. Closing balance 82,276,226.57 240,674.84 82,516,901.41
III. Provision for impairment
1. Opening balance - - -
2. Increase - - -
(1) Provision - - -
3. Decrease - - -
(1) Disposal - - -
4. Closing balance - - -
IV. Carrying value
169 / 236
2024 Interim Report
1. Closing carrying value 98,410,234.59 561,475.95 98,971,710.54
2. Opening carrying value 110,925,897.49 601,613.09 111,527,510.58
(2) Impairment testing of right-of-use assets
□ Applicable √ N/A
Other notes:
N/A
26. Intangible assets
(1) Intangible assets
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Land use Non-patente
Item Patents Software Others Total
right d technology
I. Original
carrying
value
1. Opening 139,156,777. 31,550,208. 23,282,373. 311,245.6 11,730,000. 206,030,604.
balance 58 49 11 1 00 79
2. - - 1,853,368.2 - - 1,853,368.29
Increase 9
(1) - - 1,853,368.2 - - 1,853,368.29
Procuremen 9
t
(2) Internal - - - - - -
R&D
(3) Increase - - - - - -
of business
merger
(4) - - - - - -
Investor's
Investment
3. Decrease - - - - - -
(1) - - - - - -
Disposal
4. Closing 139,156,777. 31,550,208. 25,135,741. 311,245.6 11,730,000. 207,883,973.
balance 58 49 40 1 00 08
II. -
Accumulate
d
amortizatio
n
1. 4,907,035.47 4,580,060.8 12,607,425. 196,201.3 391,000.00 22,681,722.9
Opening 4 32 6 9
balance
2. 1,565,836.99 1,169,955.5 2,044,624.7 34,513.28 898,409.40 5,713,339.97
Increase 9 1
(1) 1,565,836.99 1,169,955.5 2,044,624.7 34,513.28 898,409.40 5,713,339.97
Provision 9 1
3. - - - - - -
Decrease
(1) - - - - - -
170 / 236
2024 Interim Report
Disposal
4. 6,472,872.46 5,750,016.4 14,652,050. 230,714.6 1,289,409.4 28,395,062.9
Closing 3 03 4 0 6
balance
III. -
Provision
for
impairment
1. - - - - - -
Opening
balance
2. - - - - - -
Increase
(1) - - - - - -
Provision
3. - - - - - -
Decrease
(1) - - - - - -
Disposal
4. - - - - - -
Closing
balance
IV. -
Carrying
value
1. Closing 132,683,905. 25,800,192. 10,483,691. 80,530.97 10,440,590. 179,488,910.
carrying 12 06 37 60 12
value
2. Opening 134,249,742. 26,970,147. 10,674,947. 115,044.2 11,339,000. 183,348,881.
carrying 11 65 79 5 00 80
value
The proportion of intangible assets produced through the Company’s internal R&D to the balance of
intangible assets is 0% at the end of the period
(2) Data resources recognized as intangible assets
□ Applicable √ N/A
(3) Land use right without the certificate of title
□ Applicable √ N/A
(4) Impairment testing of intangible assets
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
27. Goodwill
(1) Original carrying value of goodwill
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Name of the Opening Increase Decrease Closing
171 / 236
2024 Interim Report
invested entity or balance Formed balance
formation of due to
Others Disposal Others
goodwill business
merger
Songci 20,371,470 - - - - 20,371,47
Electromechanical .55 0.55
Leddo Technology 19,369,760 - - - - 19,369,76
.40 0.40
Polar New Enegry 33,880,285 - - - - 33,880,28
.98 5.98
73,621,516 - - - - 73,621,51
Total
.93 6.93
(2) Provision for impairment of goodwill
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Name of the Increase Decrease
invested entity or Opening
Closing balance
formation of balance Provision Others Disposal Others
goodwill
Leddo 9,608,936.17 - - - - 9,608,936.17
Technology
Polar New 394,868.75 - - - - 394,868.75
Enegry
Total 10,003,804.92 - - - - 10,003,804.92
(3) Relevant information about the asset group or portfolio of asset groups that contains
goodwill
√ Applicable □ N/A
Composition and
Operating division Whether it is consistent with
Name basis of the asset
and basis previous years
group or portfolio
Songci Long term assets Photovoltaic Yes
Electromechanical and goodwill; the equipment segment
products produced
by the asset group
that contains
goodwill, with an
active market, can
generate
independent cash
flows, which can be
recognized as a
separate asset group
Leddo Technology Long term assets Semiconductorsegme Yes
and goodwill; the nt
products produced
by the asset group
that contains
goodwill, with an
active market, can
generate
independent cash
172 / 236
2024 Interim Report
flows, which can be
recognized as a
separate asset group
Polar New Enegry Long term assets Photovoltaic Yes
and goodwill; the equipment segment
products produced and power
by the asset group generation station
that contains
goodwill, with an
active market, can
generate
independent cash
flows, which can be
recognized as a
separate asset group
Changes in an asset group or asset group portfolio
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
(4) Specific method for determining recoverable amount
The recoverable amount is determined based on the net fair value after deducting disposal expenses
□ Applicable √ N/A
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ N/A
Reasons for the significant differences between the aforementioned information and the information
used in previous years' impairment testing or external information
□ Applicable √ N/A
Reasons for the significant discrepancy between the information used by the Company for impairment
testing and the actual situation in the previous years
□ Applicable √ N/A
(5) Performance commitment and corresponding impairment of goodwill
When goodwill is formed, there is a performance commitment, and the reporting period or the previous
period is within the performance commitment period
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
28. Long-term deferred expenses
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Opening Amortized Closing
Item Increase Other decrease
balance amount balance
Renovation 48,222,043.21 10,668,231.73 10,202,931.02 271,017.70 48,416,326.22
costs
Others 17,111,184.80 11,317,920.00 6,604,811.13 - 21,824,293.67
Total 65,333,228.01 21,986,151.73 16,807,742.15 271,017.70 70,240,619.89
173 / 236
2024 Interim Report
Other notes:
N/A
29. Deferred income tax assets/deferred income tax liabilities
(1) Undeducted deferred income tax assets
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Item Deductible Deductible
Deferred income Deferred income
temporary temporary
tax assets tax assets
differences differences
Provision for impairment 234,790,478.39 36,212,505.35 172,802,851.32 26,236,297.08
of assets
Unrealized profits from 4,340,476.33 651,071.45 982,453.48 147,368.03
internal transactions
Deductible losses 188,684,692.92 35,117,961.83 132,492,161.32 24,075,388.04
Credit impairment losses 284,106,864.29 44,411,285.52 206,156,735.64 33,660,930.35
Estimated liabilities 31,260,862.31 4,689,129.34 18,750,246.20 2,812,536.93
Deferred income 635,840.46 95,376.07 881,377.19 132,206.58
Share payment 6,500,915.26 975,137.29 42,764,329.03 6,414,649.35
Lease liabilities 101,782,104.77 15,674,364.94 103,976,963.34 15,887,848.75
Total 852,102,234.74 137,826,831.79 678,807,117.52 109,367,225.11
(2) Undeducted deferred income tax liabilities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Item Taxable Taxable
Deferred income Deferred income
temporary temporary
tax liabilities tax liabilities
differences differences
Change in fair value of 66,367,226.99 9,955,084.05 91,581,898.67 13,740,425.32
financial assets
Appreciation of 62,647,052.58 9,397,057.89 55,137,721.47 8,270,658.22
consolidated assets of
different controlling
enterprises after
valuation
Accelerated depreciation 72,998,434.53 10,949,765.18 82,285,569.83 12,342,835.47
of fixed assets
Right-of-use assets 91,774,070.22 14,152,281.99 101,599,597.11 15,518,294.13
Initial measurement and 171,501,235.35 25,725,185.30 173,020,122.99 25,953,018.45
amortization of
convertible bonds
Total 465,288,019.67 70,179,374.41 503,624,910.07 75,825,231.59
(3) Deferred income tax assets or liabilities presented at net value after offsetting
□ Applicable √ N/A
(4) Details of unrecognized deferred income tax assets
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
174 / 236
2024 Interim Report
Deductible temporary - -
differences
Deductible losses 478,568,539.66 383,746,232.72
Total 478,568,539.66 383,746,232.72
(5) The deductible losses of unrecognized deferred Income tax assets will be due in the
following years
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Year Closing balance Opening balance at Remarks
2024 5,242,848.48 5,242,848.48
2025 8,130,424.71 8,130,424.71
2026 35,808,068.44 35,808,068.44
2027 41,231,584.82 41,231,584.82
2028 84,143,947.70 84,143,947.70
2029 61,572,983.56 11,817,613.11
2030 5,173,709.05 5,099,027.64
2031 59,852,589.14 59,852,589.14
2032 101,380,226.72 102,527,871.15
2033 28,795,553.11 29,892,257.53
2034 47,236,603.93 -
Total 478,568,539.66 383,746,232.72 /
Other notes:
□ Applicable √ N/A
30. Other non-current assets
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Provision Provision
Item Carrying Carrying Carrying Carrying
for for
amount value amount value
impairment impairment
Contract - - - - - -
acquisition
cost
Contract - - - - - -
performance
cost
Cost of - - - - - -
returned
goods
receivable
Contract - - - - - -
assets
Earnest 11,184,500.00 - 11,184,500.00 12,553,250.00 - 12,553,250.00
money for
investment
Prepaid 39,311,393.14 - 39,311,393.14 28,362,127.17 - 28,362,127.17
long-term
asset
175 / 236
2024 Interim Report
construction
funds
Total 50,495,893.14 - 50,495,893.14 40,915,377.17 - 40,915,377.17
Other notes:
N/A
31. Assets with restricted ownership or right of use
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Item Carrying amount Carrying value Restrict Restrictio Carrying amount Carrying value Restrict Restrictio
ion type ns ion type ns
Monetary 304,596,281.75 304,596,281.75 Others Security 311,146,788.09 311,146,788.09 Others Security
funds deposit deposit
Receivabl 170,332,260.22 170,332,260.22 Pledge Pledge 856,879,803.37 856,879,803.37 Pledge Pledge
e
financing
Receivabl 425,709,101.20 425,709,101.20 Others Endorsed 167,409,902.56 167,409,902.56 Others Endorsed
e or or
financing discounte discounte
d d
Total 900,637,643.17 900,637,643.17 / / 1,335,436,494.02 1,335,436,494.02 / /
Other notes:
N/A
32. Short-term borrowings
(1) Classification of short-term borrowings
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Guaranteed borrowings 222,327,275.83 152,572,134.15
Unsecured borrowings 209,862,541.67 199,755,511.11
Receivable financing not yet 232,550,380.16 167,409,902.56
derecognized
Total 664,740,197.66 519,737,547.82
Notes to the classification of short-term borrowings:
N/A
(2) Short-term borrowings that are overdue but not yet repaid
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
33. Trading financial liabilities
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
34. Derivative financial liabilities
□ Applicable √ N/A
176 / 236
2024 Interim Report
35. Notes payable
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Type Closing balance Opening balance
Trade acceptance - -
Bank acceptance 1,636,520,306.81 2,333,573,500.10
L/C 268,010.40 168,972.80
Total 1,636,788,317.21 2,333,742,472.90
The total amount of unpaid notes payable is 0 yuan at the end of this period.
36. Accounts payable
(1) Disclosure of accounts payable
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Within 1 year 3,197,318,431.85 3,229,334,831.38
1 - 2 years 37,552,801.08 12,946,275.37
2 - 3 years 73,906.30 152,774.16
Over 3 years 269,859.56 1,413,242.84
Total 3,235,214,998.79 3,243,847,123.75
(2) Significant accounts payable with an aging of over 1 year or overdue
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
37. Advances from customers
(1) Disclosure of advances from customers
□ Applicable √ N/A
(2) Significant advances from customers with an aging of over 1 year
□ Applicable √ N/A
(3) Amount and reasons for significant changes in carrying value during the reporting period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
38. Contract liabilities
(1) Contract liabilities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
177 / 236
2024 Interim Report
Advances on sales 3,261,471,207.28 3,906,972,602.22
Total 3,261,471,207.28 3,906,972,602.22
(2) Significant contract liabilities with an aging of over 1 year
□ Applicable √ N/A
(3) Amount and reasons for significant changes in carrying value during the reporting
period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
39. Staff remuneration payable
(1) Disclosure of staff remuneration payable
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Opening
Item Increase Decrease Closing balance
balance
I. Short-term remuneration 184,008,109.90 478,945,566.54 522,662,710.05 140,290,966.39
II. Termination benefits - - 22,118,748.32 22,117,925.53 822.79
defined contribution plan
III. Severance pay - 770,138.10 770,138.10 -
IV. Other benefits due - - - -
within one year
Total 184,008,109.90 501,834,452.96 545,550,773.68 140,291,789.18
(2) Disclosure of short-term remuneration
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Opening
Item Increase Decrease Closing balance
balance
I. Salary, bonuses, 183,884,575.58 429,279,929.50 473,241,244.84 139,923,260.24
allowances, and subsidies
Ⅱ. Employees’ welfare - 16,279,904.02 16,279,904.02 -
benefits
Ⅲ. Social insurance - 10,949,681.34 10,949,681.34 -
Of which: Medical - 9,352,580.96 9,352,580.96 -
insurance
Work-related injury - 608,972.55 608,972.55 -
insurance
Maternity insurance - 988,127.83 988,127.83 -
Ⅳ. Housing provident - 21,162,925.31 21,152,342.36 10,582.95
funds
Ⅴ. Trade union outlays and 123,534.32 1,273,126.37 1,039,537.49 357,123.20
employee education outlays
VI. Short-term paid absence - - - -
VII. Short-term - - - -
profit-sharing plan
Total 184,008,109.90 478,945,566.54 522,662,710.05 140,290,966.39
178 / 236
2024 Interim Report
(3) Disclosure of defined contribution plans
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Opening
Item Increase Decrease Closing balance
balance
1. Basic pension insurance - 21,425,055.39 21,424,356.65 698.74
2. Unemployment insurance - 693,692.93 693,568.88 124.05
3. Annuity payment - - - -
Total - 22,118,748.32 22,117,925.53 822.79
Other notes:
□ Applicable √ N/A
40. Tax payable
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
VAT 30,393,180.74 60,273,475.01
Consumption tax - -
Business tax - -
Corporate income tax 106,318,605.66 82,758,361.80
Personal income tax 1,437,773.58 1,908,417.14
Urban maintenance and 1,977,119.84 3,806,546.78
construction tax
Urban garbage disposal costs 57,736.00 56,860.00
Educational surcharge 1,412,975.52 2,719,709.06
Stamp tax 1,364,605.65 1,702,536.75
Urban land use tax 73,304.40 268,359.39
Environment tax 111,498.42 206,349.12
Property tax 1,651,357.41 1,704,499.33
Others - 7,798.08
Total 144,798,157.22 155,412,912.46
Other notes:
N/A
41. Other payables
(1) Item list
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Interest payable - -
Dividends payable 2,300,000.00 -
Other payables 89,018,741.58 116,701,241.64
Total 91,318,741.58 116,701,241.64
Interest payable
□ Applicable √ N/A
179 / 236
2024 Interim Report
Dividends payable
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Dividends of ordinary shares 2,300,000.00 -
Total 2,300,000.00 -
Other notes, including important dividends payable that have not been paid for more than one year,
should disclose the reasons for failure of payment:
N/A
Other payables
(1) Disclosure of other payables by nature of payment
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Obligation for repurchase of 74,571,400.00 74,571,400.00
restricted shares
Investment funds to be paid - 27,000,000.00
Engineering retention money, 9,170,568.78 8,830,425.82
quality assurance deposit,
earnest money, and security
deposit
Equity incentive funds pending - 4,059,129.40
certification
Others 5,276,772.80 2,240,286.42
Total 89,018,741.58 116,701,241.64
(2) Other significant payables with an aging of over 1 year or overdue
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Reasons for non-repayment or
Item Closing balance
carryover
Engineering retention money, 6,513,440.00 Long term cooperation, with
quality assurance deposit, extended payment term
earnest money, and security
deposit
Total 6,513,440.00 /
Other notes:
□ Applicable √ N/A
42. Held-for-sale liabilities
□ Applicable √ N/A
43. Non-current liabilities due in one year
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Long-term borrowings due 76,830,239.17 93,763,615.82
within one year
Bonds payable due within one - -
year
Long-term payables due within - -
one year
180 / 236
2024 Interim Report
Lease liabilities due within one 50,818,850.56 50,682,277.05
year
Interest on bonds payable due 1,900,000.00 760,000.00
within one year
Total 129,549,089.73 145,205,892.87
Other notes:
N/A
44. Other current liabilities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Output tax for charge off 8,569,188.87 4,333,632.85
Total 8,569,188.87 4,333,632.85
Change in short-term bonds payable:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
45. Long-term borrowings
(1) Classification of long-term borrowings
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Pledged borrowings - -
Mortgaged borrowings - -
Guaranteed borrowings - -
Unsecured borrowings 319,027,747.75 141,007,258.34
Total 319,027,747.75 141,007,258.34
Notes to the classification of long-term borrowings:
N/A
Other notes
□ Applicable √ N/A
46. Bonds payable
(1) Bonds payable
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Convertible corporate bonds 998,084,628.12 969,066,247.00
Total 998,084,628.12 969,066,247.00
(2) Details of bonds payable: (excluding preferred shares, perpetual bonds and other financial
instruments classified as financial liabilities)
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Bonds Interes Amort Transf Repay
Openi Closin
Nomin Coupo Date Amou issued t ization er-in ment Defau
Bond ng g
al n rate of Tenor nt in the accrue based of In the lt or
name balanc balanc
value (%) issue issued current d at on non-c current not
e e
period par premiu urrent period
181 / 236
2024 Interim Report
value m or liabilit
discou ies
nt due
within
one
year
Autow 100 0.2 2023/8 6 年6 1,140, 969,06 - 1,140, 29,038 -1,140 -19,99 998,08 否No
ell /10 years 000,00 6,247. 000.00 ,374.9 ,000.0 3.84 4,628.
Conve 0.00 00 6 0 12
rtible
Bonds
Total / / / / 1,140, 969,06 - 1,140, 29,038 -19,99 998,08 /
000,00 6,247. 000.00 ,374.9 3.84 4,628.
0.00 00 6 12
(3) Notes to convertible corporate bonds
√ Applicable □ N/A
Item Equity conversion conditions Time.
Wuxi Autowell Technology Co., 2. Holders of convertible bonds Start and end dates: from
Ltd. issues convertible corporate may exercise the right to convert February 19, 2024 to August 9,
bonds to unspecified parties the convertible bonds to shares of 2029 (the original start date of
the Company at the current price February 16, 2024 was a
during the period from the first statutory holiday, but according
trading day after six months from to the Prospectus, it should be
the date of issuance of the postponed to the first trading
convertible bonds to the maturity day thereafter, which is
date of the convertible bonds. February 19, 2024).
Basis for accounting treatment and judgment of equity conversion
□ Applicable √ N/A
(4) Notes to other financial instruments classified as financial liabilities
Basic information about other outstanding financial instruments such as preferred shares and perpetual
bonds at the end of the period
□ Applicable √ N/A
Changes in outstanding financial instruments such as preferred shares and perpetual bonds at the end of
the period
□ Applicable √ N/A
Notes to the basis for classification of other financial instruments as financial liabilities
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
47. Lease liabilities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Leasing payment 49,110,800.96 57,305,281.98
Less: Unrecognized financing costs 1,381,403.49 2,284,378.83
Total 47,729,397.47 55,020,903.15
Other notes:
N/A
182 / 236
2024 Interim Report
48. Long-term payables
Item list
□ Applicable √ N/A
Long-term payables
□ Applicable √ N/A
Special payables
□ Applicable √ N/A
49. Long-term staff remuneration payable
□ Applicable √ N/A
50. Estimated liabilities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Opening balance Closing balance Reasons for formation
External guarantees - -
Pending actions - -
Product quality 20,642,029.65 32,355,137.07 Product quality
assurance assurance
Obligation of - -
restructuring
Loss-bearing contracts - -
to be executed
Refunds payable - -
Others - -
Total 20,642,029.65 32,355,137.07 /
Other notes, including major assumptions, estimates and explanations related to significant estimated
liabilities:
N/A
51. Deferred income
Deferred income
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Opening Reasons for
Item Increase Decrease Closing balance
balance formation
Government 1,974,389.69 - 245,536.73 1,728,852.96 Government
grants grants
Total 1,974,389.69 - 245,536.73 1,728,852.96 /
Other notes:
□ Applicable √ N/A
52. Other non-current liabilities
□ Applicable √ N/A
53. Share capital
□ Applicable √ N/A
Unit: Yuan, Currency: RMB
Opening Increase/decrease (+,-) Closing
183 / 236
2024 Interim Report
balance Shares balance
Issuance
Bonus converted
of new Others Subtotal
shares from surplus
shares
reserves
Total 224,811,240.00 584,290.00 -800,466.00 89,621,850.00 314,433,090.00
89,838,026.00
number
of
shares
Other notes:
1. On January 5, 2024, the Company released the Announcement of Wuxi Autowell Technology Co.,
Ltd. on the Second Attribution Period of the First Reserved Grant of the 2021 Restricted Share Incentive
Plan and the Attribution Results for the First Attribution Period of the 2022 Restricted Share Plan, and
the Listing of Shares (Announcement No. 2024-003). Upon the completion of attribution and share
incentive registration, the total share capital of the Company was changed from 224,811,240 shares to
224,892,432 shares.
2. On March 15, 2024, the Company released the Announcement of Wuxi Autowell Technology Co.,
Ltd. on Implementing Share Repurchase Cancellation and Share Changes (Announcement No.
2024-024). Upon the completion of share repurchase cancellation, the total share capital of the Company
was changed from 224,892,432 shares to 224,092,126 shares.
3. On April 3, 2024, the Company released the Announcement of Wuxi Autowell Technology Co.,
Ltd. on the Results of Convertible Bond Conversion and Share Changes (Announcement No. 2024-042).
Upon the completion of convertible bond conversion, the total share capital of the Company increased
from 224,092,126 shares to 224,092,158 shares.
4. On April 20, 2024, the Company released the Announcement of Wuxi Autowell Technology Co.,
Ltd. on the Attribution Results for the Second Attribution Period of the First Grant of the 2022
Restricted Share Incentive Plan and the Listing of Shares (Announcement No. 2024-046). Upon the
completion of attribution, the total share capital of the Company increased from 224,092,158 shares to
224,595,064 shares.
5. On May 14, 2024, the Company released the Announcement of Wuxi Autowell Technology Co.,
Ltd. on Implementing the 2023 Annual Equity Distribution (Announcement No. 2024-054). The listing
date for the newly unrestricted negotiable shares would be May 20, 2024. After the completion of equity
distribution, the total share capital of the Company increased from 224,595,064 shares to 314,433,090
shares.
54. Other equity instruments
(1) Basic information about other outstanding financial instruments such as preferred shares
and perpetual bonds at the end of the period
√ Applicable □ N/A
The Company has issued 11,400,000 pieces of convertible corporate bonds, each with a par value
of RMB100. During the reporting period, a total of RMB24,000 bonds were converted. As of June 30,
2024, the balance of convertible corporate bonds reached RMB1,139,976,000. The changes in other
equity instruments in the current period are detailed in Note VII, 46 Bonds Payable of the Consolidated
Financial Statements.
(2) Changes in outstanding financial instruments such as preferred shares and perpetual
bonds at the end of the period
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Ou Increas
tsta e in the
Opening balance Decrease in the current period Closing balance
ndi current
ng period
fin
Ca
anc
Nu rry
ial
Number Carrying value mb ing Number Carrying value Number Carrying value
inst
er val
ru
ue
me
184 / 236
2024 Interim Report
nts
Iss 11,400,000.00 155,724,995.61 240.00 3,856.97 11,399,760.00 155,721,138.64
uan
ce
of
con
ver
tibl
e
bo
nds
Tot
11,400,000.00 155,724,995.61 - - 240.00 3,856.97 11,399,760.00 155,721,138.64
al
Changes in other equity instruments in the current period, the reasons for such changes, and the basis for
relevant accounting treatments:
√ Applicable □ N/A
The convertible corporate bonds issued by the Company in August 2023, at the initial measurement,
amounted to RMB949,707,330.36 after deducting the corresponding issuance costs from the fair value
of the liability portion, which were included in the bonds payable; and the fair value of the
corresponding equity portion, after deducting the corresponding issuance costs, reached
RMB183,205,877.19. At the same time, a deferred income tax liability of RMB27,480,881.58 was
recognized and included in other equity instruments of RMB155,724,995.61. The amortized cost of the
adjusted liability portion for the period was RMB29,038,374.96, calculated based on the effective
interest rate method. As of June 30, 2024, a total of 269 shares of bonds were converted, with the fair
value of RMB24,000 at the time of conversion writing down the bonds payable, the interest adjustment
of RMB4,006.16 writing down the bond interest payable, and the fair value of RMB3,856.97 of equity
instruments writing down other equity instruments.
Other notes:
□ Applicable √ N/A
55. Capital reserve
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium
1,121,820,728.38 55,185,710.65 160,651,196.78 1,016,355,242.25
(equity premium)
Other capital
287,120,339.52 30,364,954.57 26,358,102.97 291,127,191.12
reserve
Total 1,408,941,067.90 85,550,665.22 187,009,299.75 1,307,482,433.37
Other notes, including changes in the current period and reasons for the changes:
Note 1: The reasons for the increase of RMB55,185,710.65 in capital premium (equity premium) in the
period are as follows: (1) A subsidiary (Autowell Intelligent Equipment) received capital increase from
non-controlling shareholders, resulting in an increase of RMB1,893,450.45 in capital reserve.
(2) A subsidiary (XuRi Technology) received capital increase from non-controlling shareholders,
resulting in an increase of RMB793,000.00 in capital reserve.
(3) The second attribution for the first grant of share incentives in 2022 could meet the prescribed
conditions for exercise, with RMB23,625,089.63 transferred from other capital reserve to equity
premium.
(4) The second attribution for the first reserved grant of share incentives in 2021 and the first attribution
for the reserved grant of share incentive in 2022 could meet the prescribed conditions for exercise,
resulting in an increase of RMB3,977,937.40 in capital reserve due to the exercise of share incentives.
The second attribution for the first grant of share incentives in 2022 could meet the prescribed conditions
for exercise, resulting in an increase of RMB24,872,574.36 in capital reserve due to the exercise of share
incentives.
(5) The conversion of convertible bonds to shares resulted in an increase of RMB23,658.81 in capital
reserve.
185 / 236
2024 Interim Report
Note 2: The reasons for the decrease of the capital reserve by RMB160,651,196.78 in the period are
stated as follows:
(1) The conversion of capital reserve to share capital in the period resulted in a decrease of
RMB89,838,026.00 in capital reserve.(2) The write-off of treasury shares by the Company in the period
resulted in a decrease of RMB70,813,170.78 in capital reserve. Note 3: The reasons for the increase of
capital reserve by RMB30,364,954.57 in the period are stated as follows: (1) The Company’s restricted
share incentive plan resulted in an increase of RMB30,342,541.47 in other capital reserve due to the
inclusion of the corresponding service amount in profit or loss based on the fair value of equity
instruments on the grant date.
(2) It is expected that the recognized share-based payment costs for the period would exceed the pre-tax
deductible share-based payment costs pursuant to tax laws, and the deferred income tax assets
recognized for the excess would be reversed, resulting in an increase of RMB22,413.10 in other capital
reserves.
Note 4: The reduction of other capital reserve by RMB26,358,102.97 in the period was caused by the
transfer from other capital reserves to share capital due to the restricted share incentives meeting the
prescribed exercise conditions.
56. Treasury shares
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Opening balance Increase Decrease Closing balance
Share repurchase 143,163,605.08 3,021,431.70 71,613,636.78 74,571,400.00
Total 143,163,605.08 3,021,431.70 71,613,636.78 74,571,400.00
Other notes, including changes in the current period and reasons for the changes:
N/A
57. Other comprehensive income
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the period
Less: Less:
previously previously
included in included in
Opening Amount other other Less: Attributed to Attributed to Closing
Item balance before comprehensive comprehensive income the parent non-controlling balance
income income, and income, and tax company shareholders
tax carried over to transferred to expenses after tax after tax
profit or loss retained
in the current earnings in the
period current period
I. Other
comprehensive
income that
cannot be
reclassified
into profit or
loss
Of which:
re-measuring
the amount of
changes in the
defined benefit
plan
Other
comprehensive
income that
cannot be
carried over to
profit or loss
under the
equity method
Changes in
fair value of
186 / 236
2024 Interim Report
investmentsot
her equity
instruments
Changes in
fair value of
enterprise’s
credit risk
II. Other
comprehensive
income that
will be 401,818.53 - - - - -1,844,288.81 - -1,442,470.28
reclassified
into profit or
loss
Of which:
other
comprehensive
income that
can be carried
over to profit
or loss under
the equity
method
Changes in
fair value of
other debt
investments
Amount of
reclassified
financial
assets included
in other
comprehensive
income
Provision
for credit
impairment of
other debt
investments
Hedging
reserve for
cash flows
Exchange
difference on
translating 401,818.53 -1,844,288.81 -1,442,470.28
foreign
operations
Other
comprehensive 401,818.53 - - - - -1,844,288.81 - -1,442,470.28
income in total
Other notes, including the adjustment of the effective portion of cash flow hedging gains and losses to
the initially recognized amount of the hedged item:
The amount of other comprehensive income incurred in the period is the exchange rate difference
resulting from the translation of original currency statements of overseas subsidiaries into RMB
statements.
58. Special reserve
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Opening balance Increase Decrease Closing balance
Safe production
8,543,300.96 6,440,251.47 2,125,111.07 12,858,441.36
expenses
Total 8,543,300.96 6,440,251.47 2,125,111.07 12,858,441.36
Other notes, including changes in the current period and reasons for the changes:
The increase in special reserves is due to the provision of safe production expenses during this period in
accordance with the relevant provisions of Administrative Measures for Withdrawal and Use of
Enterprise Safe Production Expenses (CZ [2022] No. 136) issued by the Ministry of Finance.
187 / 236
2024 Interim Report
59. Surplus reserves
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
112,405,620.00 44,810,925.00 157,216,545.00
reserves
Discretionary
-
surplus reserves
Reserve fund -
Enterprise
-
development fund
Others -
Total 112,405,620.00 44,810,925.00 - 157,216,545.00
Notes to surplus reserves, including changes in the current period and reasons for the changes:
Statutory surplus reserves: the increase is due to the increase in additional reserve set aside by the
Company.
60. Undistributed profit
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the current
Item Amount incurred in last year
period
Undistributed profit at the end of last
1,896,492,333.37 921,352,498.22
period before adjustment
Adjustment of total undistributed profit
at the beginning of period (increase 430,386.33
+/decrease -)
Undistributed profit at the beginning of
1,896,492,333.37 921,782,884.55
period after adjustment
Add: net profit attributable to the owner
769,082,688.50 1,255,823,677.58
of parent company
Less: statutory surplus reserves 44,810,925.00 35,170,615.00
Discretionary surplus reserves
General risk reserve
Ordinary share dividends payable 448,183,938.16 245,943,613.76
Ordinary share dividends
converted to share capital
Undistributed profit at the end of the
2,172,580,158.71 1,896,492,333.37
period
Adjustment of undistributed profit at the beginning of period:
1. Due to the retrospective adjustments under the Accounting Standards for Business Enterprises and
related new regulations, undistributed profit at the beginning of the period is affected by RMB0.
2. Due to the changes in accounting policies, undistributed profit at the beginning of the period is
affected by RMB0.
3. Due to the correction of significant accounting errors, undistributed profit at the beginning of the
period is affected by RMB0.
4. Due to the changed scope of consolidation caused by the same control, undistributed profit at the
beginning of the period is affected by RMB0.
5. The overall impact of other adjustments on the undistributed profit at the beginning of the period is
RMB0.
188 / 236
2024 Interim Report
61. Operating income and operating cost
(1) Operating income and operating cost
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Main
4,411,838,105.04 2,922,360,744.33 2,517,107,488.04 1,594,808,333.75
business
Other
5,860,012.22 1,668,080.00 378,881.82 205,474.11
business
Total 4,417,698,117.26 2,924,028,824.33 2,517,486,369.86 1,595,013,807.86
(2) Details of operating income and operating cost
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Total
Contract type
Operating income Operating cost
Product type
Photovoltaic equipment 3,898,311,833.88 2,600,112,679.40
Lithium battery/energy storage
131,450,792.92 86,653,453.25
equipment
Semiconductor 8,711,504.26 4,534,093.32
Renovation and services 373,363,973.98 231,060,518.36
Other business 5,860,012.22 1,668,080.00
By operating area
Domestic 3,698,113,283.03 2,522,014,732.93
Overseas 719,584,834.23 402,014,091.40
By sales channels
Distribution 275,205,534.60 152,408,034.26
Direct sales 4,142,492,582.66 2,771,620,790.07
Total 4,417,698,117.26 2,924,028,824.33
Others notes
□ Applicable √ N/A
(3) Notes to the performance obligation
□ Applicable √ N/A
(4) Notes to the performance obligation of amortizing to the remainder
□ Applicable √ N/A
(5) Major contract changes or significant transaction price adjustments
□ Applicable √ N/A
Others notes:
N/A
62. Taxes and surcharges
√ Applicable □ N/A
189 / 236
2024 Interim Report
Unit: Yuan, Currency: RMB
Amount incurred in the current Amount incurred in the previous
Item period period
Consumption tax
Business tax
Urban maintenance and
13,662,146.25 14,650,281.22
construction tax
Educational surcharge 9,758,675.91 10,463,736.35
Resource tax - -
Property tax 3,531,033.92 2,179,317.50
Land use tax 536,718.78 76,024.47
Vehicle and vessel use tax 14,520.00 8,954.00
Stamp tax 2,874,964.30 2,836,230.16
Environment tax 283,456.02 822,396.31
Others 15,815.07 -
Total 30,677,330.25 31,036,940.01
Others notes:
N/A
63. Sales expenses
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the Amount incurred in the
Item
current period previous period
Staff remuneration 26,997,087.31 17,515,182.25
Equity incentive expenses 2,375,367.22 2,452,351.74
Warranty costs - 27,975,501.87
Business entertainment expenses 14,088,604.57 13,269,098.66
Transportation and travel expenses 4,615,612.06 5,279,016.06
Freight and insurance 2,422,561.23 1,136,605.69
Maintenance expenses for trial period 10,635,168.15 3,900,098.59
Exhibition expenses 5,695,581.86 2,930,131.73
Depreciation expenses 409,928.72 370,411.57
Others 11,281,392.32 9,624,461.08
Total 78,521,303.44 84,452,859.24
Others notes:
N/A
64. Overheads
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Staff remuneration 72,738,567.25 51,966,865.74
Service charges 17,818,243.35 11,264,107.23
Equity incentive expenses 7,897,190.12 9,947,272.20
Leasing expenses 3,510,145.32 42,337.14
Depreciation expenses 30,288,570.50 15,915,596.60
Business entertainment expenses 6,208,438.61 6,275,931.39
Transportation and travel expenses 4,383,471.23 3,530,571.09
Office expenses 1,552,151.72 1,921,085.88
Utilities 1,375,810.95 1,680,039.65
190 / 236
2024 Interim Report
Training expenses 1,219,951.91 906,108.67
Postal and telecommunications expenses 555,170.33 501,821.43
Taxes 1,328,963.79 13,764.13
Others 8,837,525.34 5,523,042.22
Total 157,714,200.42 109,488,543.37
Others notes:
N/A
65. R&D expenses
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Staff remuneration 125,919,520.05 85,365,609.11
Material consumption costs 23,816,585.64 24,282,011.56
Equity incentive expenses 6,853,244.23 10,395,691.50
Technical service costs 3,960.40 209,551.82
Depreciation expenses 13,225,315.98 2,980,210.48
Transportation and travel expenses 4,932,379.63 4,727,512.12
Royalties and license fees 1,468,881.29 1,122,208.22
Others 1,894,358.53 919,422.48
Total 178,114,245.75 130,002,217.29
Others notes:
N/A
66. Financial expenses
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Interest expenses 22,306,651.86 10,825,832.63
Of which: interest expenses on lease 1,704,023.13 2,305,215.43
liabilities
Less: interest income -6,806,134.18 -3,442,183.96
Exchange gains or losses -4,457,157.60 -4,029,387.19
Others 1,320,103.11 1,905,914.63
Total 12,363,463.19 5,260,176.11
Others notes:
N/A
67.Other income
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
By nature Amount incurred in the Amount incurred in the
current period previous period
Government grants 5,485,478.51 6,049,172.81
VAT refunded upon being levied 57,538,979.77 66,238,942.20
Value-added tax incentives 34,768,324.83 -
Total 97,792,783.11 72,288,115.01
191 / 236
2024 Interim Report
Others notes:
N/A
68. Investment income√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the Amount incurred in the
Item
current period previous period
Income from long-term equity
-4,273.97 -
investment based on equity method
Investment income generated from
- -
disposal of long-term equity investments
Investment income from trading
financial assets during the holding - -
period
Dividend income obtained from other
equity instrument investments during - -
the holding period
Interest income obtained from debt
- -
investments during the holding period
Interest income obtained from other debt
- -
investments during the holding period
Investment income obtained from
- -
disposal of trading financial assets
Investment income obtained from
disposal of other equity instrument - -
investments
Investment income obtained from
- -
disposal of debt investments
Investment income obtained from
- -
disposal of other debt investments
Debt restructuring income 1,134,950.39 -
Investment income from financial
2,744,796.98 10,219,424.43
products
Investment income from other
non-current financial assets during the 729,283.23 42,000.00
holding period
Total 4,604,756.63 10,261,424.43
Others notes:
N/A
69. Net hedging gains
□ Applicable √ N/A
70. Gains on fair value changes
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Sources of gains on fair value Amount incurred in the Amount incurred in the
changes current period previous period
Trading financial assets 129,222.23 3,183,787.80
Of which: gains on fair value
changes generated by derivative
financial instruments
Trading financial liabilities
Investment properties measured at
192 / 236
2024 Interim Report
fair value
Other non-current financial assets -24,139,210.91 358,083.72
Total -24,009,988.68 3,541,871.52
Others notes:
N/A
71. Income from disposal of assets
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the current Amount incurred in the previous
period period
Gains or losses on disposal of -
fixed assets
Gains or losses on disposal of -154,897.44
right-of-use assets
Total -154,897.44
Others notes:
□ Applicable √ N/A
72. Credit impairment losses
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the Amount incurred in the
Item
current period previous period
Bad debt losses on notes receivable
Bad debt losses on accounts receivable -80,998,141.35 -18,739,586.91
Bad debt losses on other receivables 1,080,950.98 -425,753.27
Impairment losses on debt investments
Impairment losses on other debt
investments
Bad debt losses on long-term
receivables
Impairment losses related to financial
guarantees
Total -79,917,190.37 -19,165,340.18
Others notes:
N/A
73. Asset impairment losses
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the Amount incurred in the previous
Item
current period period
I. Impairment losses of contract
assets
II. Inventory impairment losses and
contract performance cost -86,934,706.66 -26,919,530.72
impairment losses
III. Impairment losses of long-term
equity investments
193 / 236
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IV. Impairment losses of
investment properties
V. Impairment losses of fixed assets
VI. Impairment losses of construction
materials
VII. Impairment losses of
construction in progress
VIII. Impairment losses of productive
biological assets
IX. Impairment losses of oil and gas
assets
X. Impairment losses of intangible
assets
XI. Impairment losses of goodwill
XII. Others
Total -86,934,706.66 -26,919,530.72
Others notes:
N/A
74. Non-operating income
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount included in
Amount incurred in the Amount incurred in the
Item non-recurring gains or
current period previous period
losses
Total gains on
disposal of
non-current assets
Of which: gains on
disposal of fixed
assets
Gains on
disposal of intangible
assets
Gains on debt
restructuring
Gains on exchange of
non-monetary assets
Receipt of donations
Government grants
Compensation income 64,645.41 - 64,645.41
Others 731,144.74 795,498.02 731,144.74
Total 795,790.15 795,498.02 795,790.15
Others notes:
□ Applicable √ N/A
75. Non-operating expenses
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the Amount incurred in the Amount included in
194 / 236
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current period previous period non-recurring profits or
losses
Total losses on
disposal of 9,509.96 216,908.89 9,509.96
non-current assets
Of which: losses on
disposal of fixed 9,509.96 - 9,509.96
assets
Losses on
disposal of intangible - - -
assets
Losses on debt
- - -
restructuring
Losses on exchange
of non-monetary - - -
assets
External donations 1,083,850.00 1,149,950.00 1,083,850.00
Penalty for late
93,946.33 6,475,845.16 93,946.33
payment
Others - 10,776.46 -
Total 1,187,306.29 7,853,480.51 1,187,306.29
Others notes:
N/A
76. Income tax expenses
(1) Table of income tax expenses
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
Income tax expenses 177,762,357.48 100,385,955.17
Deferred income tax expenses -34,083,050.76 -20,243,853.24
Total 143,679,306.72 80,142,101.93
(2) Adjustment process of accounting profit and income tax expenses
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the current period
Total profit 947,267,990.33
Income tax expenses calculated at
142,090,198.55
statutory/applicable tax rates
Impact of different tax rates on subsidiaries -713,885.21
Impact of adjusting income tax for previous
-
periods
Impact of non-taxable income -
Impact of non-deductible costs, expenses, and
3,646,061.22
losses
Impact of using deductible losses on deferred tax
-
assets not recognized previously
Impact of deductible temporary differences or
deductible losses on deferred tax assets 26,172,168.55
unrecognized in the current period
Tax incentives for R&D expenses -27,515,236.39
195 / 236
2024 Interim Report
Income tax expenses 143,679,306.72
Others notes:
□ Applicable √ N/A
77. Other comprehensive income
√ Applicable □ N/A
Please refer to “57. Other Comprehensive Income” in “VII. Notes to Consolidated Financial Statement”
of this Chapter for details.
78. Items on cash flow statement
(1) Cash relating to operating activities
Other cash received relating to operating activities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Current accounts and advances 10,142,553.18 7,808,157.10
Recovery of margin 53,447,469.53 40,362,285.39
Special subsidies and grants 6,007,079.50 5,697,262.71
Interest income 6,608,565.78 1,741,991.19
Non-operating income 791,203.34 406,341.14
Total 76,996,871.33 56,016,037.53
Notes to other cash received relating to operating activities:
N/A
Other cash paid relating to operating activities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Current accounts and advances 75,313,062.77 53,680,965.66
Payment of margin 14,328,400.00 31,417,949.21
Sales expenses 43,477,860.91 35,920,501.14
Overheads 55,122,439.79 31,917,324.64
Non-operating expenses 1,090,000.00 7,462,483.63
Bank charges 1,248,656.36 1,210,331.98
Total 190,580,419.83 161,609,556.26
Notes to other cash paid relating to operating activities:
N/A
(2) Cash relating to investing activities
Significant cash received relating to investing activities√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Cash and cash equivalents of 9,695,092.03
subsidiaries on purchase date -
Total 9,695,092.03
Significant cash received relating to investing activities
196 / 236
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N/A
Significant cash paid relating to investing activities
□ Applicable √ N/A
Other cash received relating to investing activities
□ Applicable √ N/A
Other cash paid relating to investing activities
□ Applicable √ N/A
(3) Cash relating to financing activities
Other cash received relating to financing activities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Share incentive funds received 25,375,480.36 26,708,085.76
Total 25,375,480.36 26,708,085.76
Notes to other cash received relating to financing activities:
N/A
Other cash paid relating to financing activities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Payment for share repurchase 3,021,431.70 149,845,276.54
Payment for lease liabilities 31,950,580.98 25,411,075.82
Total 34,972,012.68 175,256,352.36
Notes to other cash paid relating to financing activities:
N/A
Changes in various liabilities arising from financing activities
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Increase in the current period Decrease
Item Opening balance Closing balance
Cash change Non-cash change Cash change Non-cash change
Short-term 519,737,547.82 156,500,000.00 503,291,703.32 75,700,000.00 312,432,993.75 791,396,257.39
borrowings
Long-term 234,770,874.16 161,476,242.40 1,591,994.03 1,520,000.00 461,123.67 395,857,986.92
borrowings
and
long-term
borrowings
due within
one year
Bonds 969,066,247.00 29,042,381.12 24,000.00 998,084,628.12
payable
Dividends - 450,483,938.16 448,183,938.16 2,300,000.00
payable
Other 74,571,400.00 74,571,400.00
payables -
obligation
of
restricted
share
repurchase
197 / 236
2024 Interim Report
Lease 105,703,180.20 24,795,648.81 31,950,580.98 98,548,248.03
liabilities
and lease
liabilities
due within
one year
Total 1,903,849,249.18 317,976,242.40 1,009,205,665.44 557,354,519.14 312,918,117.42 2,360,758,520.46
(4) Notes to cash flows presented on a net basis
□ Applicable √ N/A
(5) Significant activities and financial impacts that do not involve current cash inflows and
outflows in the current period, but may affect the financial condition of the Company or
potentially impact its future cash flows
□ Applicable √ N/A
79. Supplementary information for cash flow statement
(1) Supplementary information for cash flow statement
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the Amount incurred in the
Supplement information
current period previous period
1. Adjusting net profit to cash
flows from operating activities:
Net profit 803,588,683.61 515,038,281.62
Add: Provision for impairment of
86,934,706.66 26,919,530.72
assets
Credit impairment losses 79,917,190.37 19,165,340.18
Depreciation of fixed assets, depletion
of oil and gas assets, depreciation of
37,319,695.76 17,126,663.24
productive biological assets
Amortization of right-of-use assets 27,244,773.22 21,428,971.05
Amortization of intangible assets 5,713,339.97 2,955,317.82
Amortization of long-term deferred
16,807,742.15 6,299,173.90
expenses
Losses on disposal of fixed assets,
intangible assets and other long-term 154,897.44 -
assets (gains indicated by “-”)
Losses on scrapping of fixed assets
9,509.96 216,908.89
(gains indicated by “-”)
Losses on change in fair value (gains
24,009,988.68 -3,541,871.52
indicated by “-”)
Financial expenses (gains indicated by
22,306,651.86 10,825,832.63
“-”)
Investment losses (gains indicated by
“-”) -4,604,756.63 -10,261,424.43
Decrease of deferred income tax
-28,459,606.68 -23,339,938.17
assets (increase indicated by “-”)
Increase of deferred income tax
-5,645,857.18 7,028,125.38
liabilities (decrease indicated by “-”)
Decrease of inventories (increase
224,178,315.59 -2,117,925,179.73
indicated by “-”)
Decrease of operating receivable 181,113,828.90 -504,254,413.69
198 / 236
2024 Interim Report
items (increase indicated by “-”)
Increase of operating payable items
-1,346,852,119.57 2,267,480,334.68
(decrease indicated by “-”)
Others -133,448,082.62 33,734,599.54
Net cash flows from operating
-9,711,098.51 268,896,252.11
activities
2. Major investing and financing
activities without involving cash
receipt and payment
Conversion of debts to capital
Convertible corporate bonds due
within one year
Fixed assets leased under finance
leasing
3. Net increase/decrease in cash and
cash equivalents:
Closing balance of cash 1,681,555,725.45 560,232,888.64
Less: opening balance of cash 1,520,761,970.93 597,816,992.50
Add: closing balance of cash
equivalents
Less: opening balance of cash
equivalents
Net increase in cash and cash
160,793,754.52 -37,584,103.86
equivalents
(2) Net cash paid for acquisition of subsidiary in the period
□ Applicable √ N/A
(3) Net cash received for disposal of subsidiary in the period
□ Applicable √ N/A
(4) Composition of cash and cash equivalents
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
I. Cash 1,681,555,725.45 1,520,761,970.93
Of which: cash on hand 394,157.19 387,917.07
Bank deposits ready for payment 1,681,161,568.26 1,516,171,305.90
Other monetary funds ready for
- 4,202,747.96
payment
Funds due from central bank
available for payment
Due from banks and other financial
institutions
Interbank borrowings
II. Cash equivalents
Of which: bond investments due
within three months
III. Cash and cash equivalents at the
1,681,555,725.45 1,520,761,970.93
end of the period
Of which: cash and cash equivalents
- -
with restrictions for the parent
199 / 236
2024 Interim Report
company or subsidiaries of the Group
(5) The situation where the scope of use is limited but still presented as cash and cash
equivalents
□ Applicable √ N/A
(6) Monetary funds not classified as cash and cash equivalents
□ Applicable √ N/A
Others notes:
□ Applicable √ N/A
80. Notes to the statement of changes in owner’s equityProvide the items of “others” adjusting
the closing balance of the previous year and the adjusted amount:
□ Applicable √ N/A
81. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
√ Applicable □ N/A
Unit: Yuan
Closing balance of Translated closing
Item Exchange rate
foreign currencies balance of RMB
Monetary funds - - 101,197,760.49
Of which: USD 12,488,775.17 7.1268 89,005,002.90
EUR 32,749.15 7.6617 250,914.16
HKD - 0.9127 -
JPY 43,337,821.00 0.044738 1,938,847.44
SGD 39,950.00 5.279 210,896.05
MYR 6,487,070.37 1.5095 9,792,099.94
Accounts receivable - - 52,585,246.95
Of which: USD 7,378,521.49 7.1268 52,585,246.95
EUR - 7.6617 -
HKD - 0.9127 -
Other receivables - - 1,065,994.45
Of which: USD - 7.1268 -
EUR - 7.6617 -
HKD - 0.9127 -
MYR 706,200.00 1.5095 1,065,994.45
Accounts payable - - 3,379,992.91
Of which: USD 310,939.90 7.1268 2,216,006.48
EUR - 7.6617 -
HKD - 0.9127 -
JPY 19,440,000.00 0.044738 869,706.72
MYR 194,954.42 1.5095 294,279.71
Notes payable - - 230,617.17
Of which: USD - 7.1268 -
EUR 30,100.00 7.6617 230,617.17
HKD - 0.9127 -
Long-term borrowings - - -
Of which: USD - 7.1268 -
EUR - 7.6617 -
HKD - 0.9127 -
200 / 236
2024 Interim Report
Others notes:
N/A
(2) Notes to overseas operating entities, including disclosure of principal operating location,
functional currency, and selection basis for important overseas operating entities. In case of any
change in functional currency, the reasons should also be disclosed
□ Applicable √ N/A
82. Lease
(1) As a lessee
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred Amount incurred
Item in the current in the previous
period period
Interest expenses on lease liabilities 1,704,023.13 4,579,834.34
Short-term lease expenses with simplified treatment
included in relevant asset costs or current profits and 805,669.72 7,656,749.05
losses
Income from subleasing right-of-use assets - 40,856.87
Total cash outflows relating to lease 39,682,798.88 39,517,553.82
Variable lease payments not included in the measurement of lease liabilities
□ Applicable √ N/A
Lease expenses for short-term leases or low-value assets with simplified treatment
□ Applicable √ N/A
Sale-leaseback transactions and judgment criteria
□ Applicable √ N/A
Total cash outflows relating to lease with total amount of RMB39,682,798.88
(2) As a lessor
Operating lease as a lessor
□ Applicable √ N/A
Financing lease as a lessor
□ Applicable √ N/A
Adjustment statement for undiscounted lease receipts and net lease investments
□ Applicable √ N/A
Undiscounted lease receipts for the next five years
□ Applicable √ N/A
(3) Profit or loss of financing lease sales recognized as a manufacturer or distributor
□ Applicable √ N/A
Others notes
N/A
201 / 236
2024 Interim Report
83. Data resource
□ Applicable √ N/A
84. Others
□ Applicable √ N/A
202 / 236
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VIII. R&D expenses
(1) Listed by type of cost
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Current amount incurred Amount incurred in the
previous period
Staff remuneration 125,919,520.05 85,365,609.11
Material consumption costs 23,816,585.64 24,282,011.56
Equity incentive expenses 6,853,244.23 10,395,691.50
Technical service costs 3,960.40 209,551.82
Depreciation expenses 13,225,315.98 2,980,210.48
Transportation and travel expenses 4,932,379.63 4,727,512.12
Royalties and license fees 1,468,881.29 1,122,208.22
Others 1,894,358.53 919,422.48
Total 178,114,245.75 130,002,217.29
Of which: expensed research & development
178,114,245.75 130,002,217.29
expenses
Capitalized research & development
expenses
Other notes:
N/A
(2) R&D project development expenses that meet the requirements for capitalization
□ Applicable √ N/A
Important capitalized research & development projects
□ Applicable √ N/A
Provision for impairment of development expenses
□ Applicable √ N/A
Others
N/A
(3) Important outsourced research items
□ Applicable √ N/A
IX. Change in the scope of consolidation
1. Merger of enterprises not under common control
□ Applicable √ N/A
2. Merger of enterprises under common control
□ Applicable √ N/A
3. Reverse purchase
□ Applicable √ N/A
203 / 236
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4. Disposal of subsidiaries
Is there any transaction or event involving the loss of control of a subsidiary in this period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Whether there is a case where investments in subsidiaries are disposed of in stages through multiple transactions and control is lost in the current period
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
5. Changes in the scope of consolidation due to other reasons
Notes to the changes in the scope of consolidation due to other reasons (such as the establishment of new subsidiaries, liquidation of subsidiaries, etc.) and their
relevant information:
□ Applicable √ N/A
6. Others
□ Applicable √ N/A
204 / 236
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X. Equity in other entities
1. Equity in subsidiaries
(1) Composition of enterprise groups
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Main Shareholding
Acqui
busines Registe ratio (%)
Registered sition
Subsidiary name s red Business nature
capital metho
locatio address Direct Indirect
d
n
Intelligent Wuxi 36.42 Wuxi Research & 82.37 Acqui
Equipment City City development, sition
manufacturing,
sales, and
technical
services of
lithium battery
equipment
Optical Applications Wuxi 13.00 Wuxi Technical 76.92 Establ
City City development ishme
and services nt
throu
gh
invest
ment
Supply Chain Wuxi 10.00 Wuxi Supply chain 100.00 Establ
Management City City management ishme
services nt
throu
gh
invest
ment
Songci Wuxi 20.86 Wuxi Research and 40.625 Acqui
Electromechanical City City experiment 8 sition
development
XuRi Technology Wuxi 30.00 Wuxi Technology 72.00 Establ
City City promotion and ishme
application nt
service industry throu
gh
invest
ment
Coshin Technology Wuxi 20.00 Wuxi Research and 71.50 Establ
City City experiment ishme
development nt
throu
gh
invest
ment
Leddo Technology Wuxi 25.28 Wuxi Research and 70.55 Acqui
City City experiment sition
development
Zhiyuan Equipment Wuxi 20.00 Wuxi Electrical 70.00 Establ
City City machinery and ishme
equipment nt
manufacturing throu
205 / 236
2024 Interim Report
industry gh
invest
ment
Qinhuangdao Qinhua 20.00 Qinhua Electrical 70.00 Establ
Zhiyuan ngdao ngdao machinery and ishme
City City equipment nt
manufacturing throu
industry gh
invest
ment
Jiexin Technology Wuxi 25.00 Wuxi Technology 62.00 Establ
City City promotion and ishme
application nt
service industry throu
gh
invest
ment
Wuxi Polar Wuxi 50.00 Wuxi Manufacturing 61.00 20.00 Establ
City City of photovoltaic ishme
equipment and nt
components throu
gh
invest
ment
Polar New Enegry Bengbu 154.43 Bengbu Lithium ion 100.00 Purch
City City battery ase
manufacturing
Wuhu Polar Wuhu 10.00 Wuhu Solar 100.00 Purch
Photovoltaic Power City City photovoltaic ase
Generation Co., Ltd. power
generation and
power sales
Beijing Linkong Beijing 20.00 Beijing Solar 100.00 Purch
Polar Energy City City photovoltaic ase
Management Co., power
Ltd. generation and
power sales
Polar New Enegry Foshan 10.00 Foshan Research & 100.00 Purch
(Foshan) Co., Ltd. City City development, ase
manufacturing,
and system
integration of
distributed
power supply
equipment
Zhengzhou Polar 5.00 Zhengz Engineering and 100.00
New Enegry Co., Zhengz hou technical Purch
Ltd. hou City research and ase
City experiment
development
Anhui Hengzhi Bengbu 40.00 Bengbu Solar 42.50 Purch
Copper-Indium-Galli City City photovoltaic ase
um-Selenium power
Technology Co., Ltd generation and
power sales
AUTOWELL Japan Japan 14.66 Japan Research & 100.00 Establ
206 / 236
2024 Interim Report
development ishme
and sales of nt
photovoltaic, throu
semiconductor gh
equipment and invest
supporting ment
materials
Autowell Singap 109.50 Singap Trade, 100.00 Establ
(Singapore) ore ore management, ishme
and services of nt
automated throu
equipment and gh
related items invest
ment
AUTOWELL Malays 0.0030 Malays Research & 85.00 Establ
(Malaysia) ia ia development, ishme
production, and nt
sales of throu
automated gh
equipment and invest
related ment
hardware and
software
Notes to the difference between the shareholding ratio and voting rights ratio in subsidiaries:
N/A
The basis for holding half or less of the voting rights but still controlling the invested entity, and for
holding more than half of the voting rights but not controlling the investee:
The number of directors dispatched exceeds 50% of the total number of directors.
For important structured entities included in the consolidation scope, the basis for control is:
N/A
The basis for determining whether a company is an agent or a principal:
N/A
Other notes:
AUTOWELL Japan Co., Ltd. Registered capital: JPY300 million;
Autowell (Singapore) PTE. LTD. Registered capital: USD15 million;
AUTOWELL (MALAYSIA) SDN.BHD. Registered capital: MYR2,000. On July 24, 2024, the
registered capital of AUTOWELL (Malaysia) was changed to MYR7,626,294.
(2) Important non-wholly-owned subsidiaries
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Shareholding Gains and losses Dividends declared
Closing balance
ratio attributable to for distribution to
of non-controlling
Subsidiary name non-controlling non-controlling non-controlling
shareholders’
shareholder shareholders in the shareholders in the
equity
(%) current period current period
Intelligent 17.6265%
-1.87 - -19.96
Equipment
Optical 23.0769%
-4.72 - -10.94
Applications
Songci 59.3742% 60.21 - 117.68
207 / 236
2024 Interim Report
Electromechanical
XuRi Technology 28.0000% -12.28 - -28.16
Coshin 28.5000%
Technology -2.70 - -1.22
Semiconductor
Leddo 29.4500%
-1.32 - 12.23
Technology
Wuxi Zhiyuan 30.0000% -0.73 - 3.27
Jiexin Technology 38.0000% -4.52 - 13.90
Wuxi Polar 81.0000% -0.25 - 1.25
Notes to the difference between the shareholding ratio of non-controlling shareholders in a subsidiary
and the voting rights ratio:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
(3) Main financial information of important non-wholly-owned subsidiaries
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Closing balance Opening balance
Subsidi Cur Non- Curre Non-cu Curre Non-c
Total Curre Curre Total
ary rent curre Total nt rrent Total nt urrent
liabilit nt nt liabili
name asse nt assets liabili liabiliti assets liabili liabili
ies assets assets ties
ts assets ties es ties ties
Intelligent
Equipmen 663.1
t 40.69 703.81 806.20 10.66 816.85 666.47 50.50 716.97 812.66 16.34 829.00
2
Optical
Applicatio 76.12 3.40 79.53 124.69 - 124.69 83.09 3.39 86.48 111.63 - 111.63
ns
Songci
2,894 2,927.7 2,706.3 2,460.9 2,482.4 2,375.5 2,383.8
Electrome 32.73 17.34 2,723.65 21.45 8.39
.99 3 0 8 3 0 9
chanical
XuRi
2,019 2,065.2 2,154.1 1,891.0 1,930.6 1,978.4 1,984.4
Technolog 45.74 5.65 2,159.75 39.64 6.07
.46 0 0 6 9 0 7
y
Coshin
139.9
Technolog 11.46 151.44 150.81 - 150.81 126.23 7.06 133.28 124.21 0.00 124.21
8
y
Leddo
Technolog 39.26 5.70 44.97 7.52 - 7.52 40.43 4.37 44.80 2.86 0.01 2.87
y
Wuxi
95.35 14.00 109.35 94.53 1.59 96.12 30.24 10.47 40.71 22.90 2.15 25.05
Zhiyuan
Jiexin
Technolog 8.52 28.44 36.96 0.39 - 0.39 24.77 23.90 48.67 0.20 - 0.20
y
Wuxi
62.33 0.24 62.58 38.06 - 38.06
Polar
Amount incurred in the current period Amount incurred in the previous period
Cash Cash
flow flow
Subsidiary Operatin Net Total from Operatin Net Total from
name g profi comprehensi operatin g profi comprehensi operatin
income t ve income g income t ve income g
activitie activitie
s s
Intelligent 143.80 -10.60 -10.60 -6.86 184.74 2.37 2.37 3.17
208 / 236
2024 Interim Report
equipment
Optical
1.05 -20.44 -20.44 -20.07 0.22 -8.80 -8.80 25.65
Applications
Songci
Electromechanic 607.56 101.41 101.41 -22.05 156.89 -3.42 -3.42 57.30
al
XuRi
334.72 -43.85 -43.85 -119.06 105.41 -14.97 -14.97 -39.16
Technology
Coshin
11.18 -9.46 -9.46 -16.90 8.13 -3.21 -3.21 -29.04
Technology
Leddo
0.99 -4.48 -4.48 -9.08 0.00 -0.37 -0.37 -11.14
Technology
Wuxi Zhiyuan 3.73 -2.44 -2.44 3.12 - -0.80 -0.80 0.15
Jiexin
- -11.90 -11.90 -12.52 - - - -
Technology
Wuxi Polar - -1.31 -1.31 -1.01 - - - -
Other notes:
N/A
(4) Major restrictions on the use of enterprise group assets and the liquidation of enterprise group
liabilities:
□ Applicable √ N/A
(5) Financial or other support provided for structured entities included in the scope of consolidated
financial statements:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
2. Transactions in which the owner's equity share of a subsidiary changes and they are still
controlling the subsidiary
□ Applicable √ N/A
3. Equity in joint ventures or associates
□ Applicable √ N/A
4. Important joint operation
□ Applicable √ N/A
5. Equity in structured entities not included in the scope of consolidated financial statements
Notes to structured entities not included in the scope of consolidated financial statements:
□ Applicable √ N/A
6. Others
□ Applicable √ N/A
XI. Government grants
1. Government grants recognized as accounts receivable at the end of the report period
□ Applicable √ N/A
Reason for not receiving the expected amount of government grants at the expected time
□ Applicable √ N/A
2. Debt projects involving government grants
□ Applicable √ N/A
3. Government grants included in current gains and losses
√ Applicable □ N/A
209 / 236
2024 Interim Report
Unit: Yuan, Currency: RMB
Amount incurred in the current Amount incurred in the previous
Type
period period
Related to assets 245,536.73 246,731.02
Related to income 97,547,246.38 72,041,383.99
Total 97,792,783.11 72,288,115.01
Other notes:
N/A
XII. Risks related to financial instruments
1. Risk of financial instruments
√ Applicable □ N/A
The Company is exposed to various financial risks in the operation, including credit risk, market
risk, and liquidity risk. The board of directors of the Company is fully committed to identifying risk
management objectives and policies, and bears ultimate responsibility for risk management objectives
and policies. The internal auditors of the Company also audit risk management policies and procedures,
and report relevant findings to the audit committee.
The overall objective of the Company’s risk management is to develop risk management policies
that minimize risks without excessively affecting its competitiveness and adaptability.
(i) Credit risk
Credit risk refers to the risk that one party of a financial instrument fails to fulfill its obligations,
resulting in financial losses for the other party. The Company mainly faces customer credit risk caused
by credit sales. Before signing a new contract, it will assess the credit risk of new customers, including
external credit ratings and, in some cases, bank credit certificates (when this information is available).
(ii) Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when an enterprise fulfills its obligation to
settle by delivering cash or other financial assets. The Company is committed to ensuring sufficient cash
to repay maturing debts. Liquidity risk is centrally controlled by the finance department of the Company.
The finance department ensures that the Company has sufficient funds to repay its debts under all
reasonable predictions by monitoring cash balances, readily convertible securities, and rolling forecasts
of cash flows for the next 12 months.
As of June 30, 2024, various financial liabilities of the Company are presented as follows based on
undiscounted contract cash flows and maturity dates:
Unit: Yuan, Currency: RMB
Closing balance
Item Within 1 year 1-2 years 2-5 years Over 5 years Total
Accounts 3,235,214,998.79 - - - 3,235,214,998.79
payable
Other 91,318,741.59 - - - 91,318,741.59
payables
Non-curre 133,506,681.24 - - - 133,506,681.24
nt
liabilities
due within
one year
Lease - 47,625,117.14 14,346,909.39 - 61,972,026.53
liabilities
Total 3,460,040,421.62 47,625,117.14 14,346,909.39 - 3,522,012,448.15
Year-end balance of the previous year
Item
Within 1 year 1-2 years 2-5 years Over 5 years Total
Accounts 3,243,847,123.75 - - - 3,243,847,123.75
payable
Other 116,701,241.64 - - - 116,701,241.64
payables
210 / 236
2024 Interim Report
Non-curre 147,298,187.75 - - - 147,298,187.75
nt
liabilities
due within
one year
Lease - 63,411,824.65 10,144,243.16 - 73,556,067.81
liabilities
Total 3,507,846,553.14 63,411,824.65 10,144,243.16 - 3,581,402,620.95
(iii) Market risk
The market risk of financial instruments refers to the risk of fluctuations in the fair value or future
cash flows of financial instruments due to changes in market prices, including exchange rate risk,
interest rate risk, and other price risks.
1. Interest rate risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to changes in market interest rates. The interest rate risk facing the Company mainly
comes from short-term bank loans. The Company is committed to identifying the relative proportion of
fixed rate and floating rate contracts based on the market environment then. Although this policy cannot
completely steer the Company away from the risk of interest rates payment exceeding current market
rates, nor can it completely eliminate the cash flow risk associated with fluctuations in interest payment,
the management believes that this policy achieves a reasonable balance between these risks.
2. Exchange rate risk
Exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to changes in foreign exchange rates. Our Company strives to match foreign currency
income with foreign currency expenses as much as possible to reduce exchange rate risk. In addition, the
Company may also sign forward foreign exchange contracts or currency swap contracts to avoid
exchange rate risks. During the reporting period, the Company did not sign any forward foreign
exchange contracts or currency swap contracts.
The exchange rate risk facing the Company mainly comes from financial assets and liabilities
denominated in US dollars. The amount of foreign currency financial assets and liabilities converted into
RMB is listed as follows:
It Closing balance Year-end balance of the previous year
e USD Other foreign Total USD Other foreign Total
m currencies currencies
M 89,005,002.90 12,192,757.59 101,197,760.49 301,124,050.73 2,380,322.76 303,504,373.49
o
n
et
ar
y
fu
n
d
s
A 52,585,246.95 - 52,585,246.95 111,668,163.25 - 111,668,163.25
cc
o
u
nt
s
re
ce
iv
a
bl
e
O - 1,065,994.45 1,065,994.45 14,165.40 2,901.56 17,066.96
th
er
re
ce
211 / 236
2024 Interim Report
iv
a
bl
es
ac 2,216,006.48 1,163,986.43 3,379,992.91 6,055,885.21 3,096,216.45 9,152,101.66
c
o
u
nt
s
p
a
y
a
bl
e
T 139,374,243.37 12,094,765.61 151,469,008.98 406,750,494.17 -712,992.13 406,037,502.04
ot
al
3. Other price risks
Other price risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to market price changes other than exchange rate risk and interest rate risk.
2. Hedging
(1) The Company conducts hedging business for risk management
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
(2) The Company conducts eligible hedging business and applies hedging accounting
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
(3) The Company carries out hedging business for risk management and expects to achieve risk
management goals but does not apply hedge accounting
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
3. Financial asset transfer
(1) Classification of Transfer Methods
□ Applicable √ N/A
(2) Financial assets that have been derecognized due to transfer
□ Applicable √ N/A
(3) Transfer of financial assets continuously involved
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
XIII. Disclosure of fair value
212 / 236
2024 Interim Report
1. Closing fair value of assets and liabilities measured at fair value
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Fair value at the end of the period
First-level Second-level fair
Item Third-level fair
fair value value Total
value measurement
measurement measurement
I. Continuous fair value
measurement
(i) Trading financial assets 0.00 220.06 0.00 220.06
1. Financial assets measured at
fair value with changes included 0.00 220.06 0.00 220.06
in current profits and losses
(1) Debt instrument investment 0.00 0.00 0.00 0.00
(2) Equity instrument investment 0.00 0.00 0.00 0.00
(3) Derivative financial assets 0.00 0.00 0.00 0.00
(4) Others
0.00 220.06 0.00 220.06
2. Designated as financial
liabilities measured at fair value
0.00 0.00 0.00 0.00
with changes recognized in
current profits and losses
(1) Debt instrument investment 0.00 0.00 0.00 0.00
(2) Equity instrument investment 0.00 0.00 0.00 0.00
(ii) Accounts receivable
0.00 0.00 593.76 593.76
financing
(iii) Other non-current financial
28.54 0.00 132.59 161.13
assets
1. Designated as financial
liabilities measured at fair value
28.54 0.00 132.59 161.13
with changes recognized in
current profits and losses
(1) Debt instrument investment 0.00 0.00 20.97 20.97
(2) Equity instrument investment 28.54 0.00 111.62 140.16
(iv) Other debt investments 0.00 0.00 0.00 0.00
(v) Other equity instrument
0.00 0.00 0.00 0.00
investments
(vi) Investment properties 0.00 0.00 0.00 0.00
1. Land use rights for rental
0.00 0.00 0.00 0.00
purposes
2. Rented buildings 0.00 0.00 0.00 0.00
3. Land use rights held and
prepared for transfer after 0.00 0.00 0.00 0.00
appreciation
(vii) Biological assets 0.00 0.00 0.00 0.00
1. Consumable biological assets 0.00 0.00 0.00 0.00
2. Productive biological assets 0.00 0.00 0.00 0.00
Total assets continuously
28.54 220.06 726.35 974.95
measured at fair value
(viii) Trading financial liabilities 0.00 0.00 0.00 0.00
1. Financial liabilities measured
at fair value with changes 0.00 0.00 0.00 0.00
included in current profits and
213 / 236
2024 Interim Report
losses
Of which: Issued trading bonds 0.00 0.00 0.00 0.00
Derivative financial
0.00 0.00 0.00 0.00
liabilities
Others 0.00 0.00 0.00 0.00
2. Designated as financial
liabilities measured at fair value
0.00 0.00 0.00 0.00
with changes recognized in
current profits and losses
Total liabilities continuously
0.00 0.00 0.00 0.00
measured at fair value
II. Non-continuous fair value
0.00 0.00 0.00 0.00
measurement
(i) Holding assets for sale 0.00 0.00 0.00 0.00
Total amount of assets not
continuously measured at fair 0.00 0.00 0.00 0.00
value
Total liabilities not
continuously measured at fair 0.00 0.00 0.00 0.00
value
2. Basis for determining the market value of continuous and non-continuous first-level fair value
measurement items
√ Applicable □ N/A
The Company’s other non-current financial assets are listed company stocks, and their fair value is the
closing price on the stock exchange.
3. The valuation techniques and qualitative and quantitative information of important parameters
adopted in the continuous and non-continuous second-level fair value measurement items
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Item Closing fair value Valuation Important parameters
techniques Qualitative Quantitative
information information
Financial 220.06 Discounted cash Contract or Interest rate
products flow method comparable
expected rate of
return
4. The valuation techniques and qualitative and quantitative information of important parameters
adopted in the continuous and non-continuous third-level fair value measurement items
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Item Closing fair value Valuation techniques Unobservable input
value
Accounts receivable 593.76 Carrying value N/A
financing
Equity of Wuxi 101.60 Recent Financing Price Recent financing prices
Songyu Technology Method
Co., Ltd.
Equity of Xiamen 20.97 Net asset value N/A
Fuhai New Materials
Phase III Venture
Capital Partnership
214 / 236
2024 Interim Report
Enterprise (Limited
Partnership)
Equity of Wuxi 10.02 Carrying value N/A
Greenstone
Automation Equipment
Co., Ltd.
5. Adjustment information between opening and closing carrying values, and sensitivity analysis of
unobservable parameters in continuous third-level fair value measurement items
□ Applicable √ N/A
6. In the case of conversion between different levels during the current period, the reasons for the
conversion and the policy for determining the transition time point for continuous fair value
measurement items
□ Applicable √ N/A
7. Valuation technology changes that occurred in the current period and the reasons for the
changes
□ Applicable √ N/A
8. Fair value of financial assets and financial liabilities not measured at fair value
□ Applicable √ N/A
9. Others
□ Applicable √ N/A
XIV. Related parties and transactions
1. The information on the parent company of the Company
□ Applicable √ N/A
2. The information on the subsidiaries of the Company
See the notes for details about the subsidiaries
√ Applicable □ N/A
See “Note 10: Equity in Other Entities” for the details about the subsidiaries.
3. Information on joint ventures and associates of the Company
See the notes about important joint ventures or associates of the Company
□ Applicable √ N/A
The information on other joint ventures or associates that have had related party transactions with the
Company in the current period, or have formed balances from related party transactions with the
Company in the previous period, is as follows
□ Applicable √ N/A
4. Information on other related parties
√ Applicable □ N/A
Other related party names Relations between other related parties and the Company
Liu Jian The spouse of the actual controller Ge Zhiyong
Ge Zhibin Brother of actual controller Ge Zhiyong
Liu Ying The spouse of the actual controller Li Wen
The spouse of Ge Zhibin (the elder brother of the actual
Feng Ye
controller Ge Zhiyong)
The younger brother of Liu Jian (the spouse of the actual
Liu Zhuangzhi
controller Ge Zhiyong)
215 / 236
2024 Interim Report
Li Xiao The brother of the actual controller Li Wen
Enterprises controlled or significantly influenced by
Anhui Woshine Safety Equipment Co., Ltd directors, supervisors, and senior management of the
Company
A company where a director serves as the general
Wuxi Woshine Safety Equipment Co., Ltd
manager
Wuxi Songyu Technology Co., Ltd The Company holds more than 5% of its equity
The actual controller Ge Zhiyong holds 46.087% of its
Wuxi WIT Data Technology Co., Ltd
equity, and Li Wen 21.7391%
Other notes
N/A
5. Related party transactions
(1) Related transactions involving the purchase and sale of goods, provision and receipt of services
Table on procurement of goods/acceptance of labor services
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Whether the
Approved Amount
Content on Current transaction
transaction incurred in the
Related parties related party amount limit has been
limit (if previous
transaction incurred exceeded (if
applicable) period
applicable)
Anhui Woshine Procurement 461,999.57 995,845.92
Safety of raw
Equipment Co., materials
Ltd.
Anhui Woshine Purchase of 8,849.56 22,123.89
Safety fixed assets
Equipment Co.,
Ltd.
Anhui Woshine Acceptance of 8,849.56
Safety labor services
Equipment Co.,
Ltd.
Wuxi Woshine Purchase of 259,524.37 269,596.47
Safety labor
Equipment Co., protection
Ltd. equipment
Wuxi WIT Data Purchase of 707,964.60 -
Technology Co., raw materials
Ltd.
Table on sales of goods/provision of services
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Content on related party Amount incurred in the Amount incurred in the
Related parties
transaction current previous period
Wuxi WIT Data Electricity bill 23,118.10 21,671.29
Technology Co., Ltd settlement
Notes to related transactions for purchase of goods on credit, and provision and acceptance of labor
services
□ Applicable √ N/A
(2) Related entrusted management/contracting and entrusted management/outsourcing
216 / 236
2024 Interim Report
Table on the entrusted management/contracting by the Company:
□ Applicable √ N/A
Notes to related trusteeship/contracting
□ Applicable √ N/A
Table on the Company’s entrusted management/contracting
□ Applicable √ N/A
Notes to association management/outsourcing
□ Applicable √ N/A
(3) Related lease
The Company serves as the lessor:
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Lease income recognized in Lease income recognized in
Leaseholder Types of leased assets
the current period the previous period
Wuxi WIT Data Lease of houses 134,174.33 134,174.33
Technology Co.,
Ltd.
217 / 236
2024 Interim Report
The Company serves as the lessee:
□ Applicable √ N/A
Notes to related lease
□ Applicable √ N/A
218 / 236
2024 Interim Report
(4) Related guarantee
The Company serves as the guarantor
□ Applicable √ N/A
Our Company serves as the secured party
□ Applicable √ N/A
Notes to related guarantee
□ Applicable √ N/A
(5) Related party fund lending
□ Applicable √ N/A
(6) Related party asset transfer and debt restructuring
□ Applicable √ N/A
(7) Compensation for key management personnel
□ Applicable √ N/A
Unit: million Yuan, Currency: RMB
Amount incurred in the current Amount incurred in the
Item
period previous period
Compensation for key management 4.49 4.20
personnel
(8) Other related transactions
□ Applicable √ N/A
6. Accounts receivable, accounts payable, related parties and other unsettled items
(1) Accounts receivable
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Item Related parties Carrying Provision for Allowance for bad
Carrying amount
amount bad debts debts
Contract
liabilities
Wuxi WIT 5,904.01
Data
Technology
Co., Ltd.
Other
receivables
Wuxi Songyu 4,866.90 243.35
Technology
Co., Ltd.
(2) Items payable
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Related parties Closing balance Opening balance
Accounts payable
Wuxi Woshine Safety 287,334.12 80,640.00
Equipment Co., Ltd
Anhui Woshine Safety 648,606.19 964,957.75
219 / 236
2024 Interim Report
Equipment Co., Ltd
(3) Other items
□ Applicable √ N/A
7. Related party commitment
□ Applicable √ N/A
8. Others
□ Applicable √ N/A
XV. Share-based payment
1. Various equity instruments
√ Applicable □ N/A
Quantity unit: Stock amount, Unit: Yuan, Currency: RMB
Unlock
Grant
G ing in
in the
ra Exercise in the current period the Invalidity in the current period
current
nt current
period
ob period
je Q Q
A A
ct ua ua
m m
ty nt Quantity Amount nt Quantity Amount
ou ou
pe it it
nt nt
y y
C - - 584,298 29,434,609.53 - - 47,267 2,382,642.92
or
e
e
m
pl
oy
ee
s
T - -
ot 584,298 29,434,609.53 - - 47,267 2,382,642.92
al
Stock options or other equity instruments issued at the end of the period
√ Applicable □ N/A
Stock options issued at the end of the Other equity instruments issued at the
period end of the period
Grant object type
Range of exercise Remaining term of Range of exercise Remaining term of
Prices the contract prices the contract
Core employees RMB33.26/share 26 months
Core employees RMB34.62/share 30 months
Core employees RMB47.84/share 38 months
Other notes
On May 11, 2024, the Company disclosed the Announcement on Adjusting the 2023 Profit
Distribution and Capital Reserve-to-Share Capital Conversion Plan, which distributed a cash dividend
of RMB1.99552 (including tax) per share and converted 0.4 shares of capital reserve to all shareholders
220 / 236
2024 Interim Report
per share. The exercise price of the restricted stock incentive plan for 2021 was adjusted to RMB33.26,
and that of the plan for 2022 to RMB34.62.
2. Share-based payment settled in equity
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Method for determining the fair value of equity Restricted stocks are measured at their fair value
instruments on the grant date on the grant date using the Black Scholes Options
Model (B-S Model)
Important parameters for fair value of equity
N/A
instruments on the grant date
Basis for determining the number of feasible equity Estimation is made based on the performance
instruments evaluation criteria of each attribution period and
the evaluation results of incentive objects
Reasons for significant differences between this
N/A
estimate and the previous estimate
Accumulated amount of share-based payment 155,932,139.67
settled in equity included in capital reserves
Other notes
N/A
3. Share-based payments settled in cash
□ Applicable √ N/A
4. Share-based payment expenses in the current period
√ Applicable □ N/A Unit: Yuan, Currency: RMB
Grant object type Share-based payment fees Share-based payment fees
settled in equity settled in cash
Core personnel 27,609,528.13 -
Total 27,609,528.13 -
Other notes
N/A
5. Modification and termination of share-based payment
□ Applicable √ N/A
6. Other
□ Applicable √ N/A
XVI. Commitment and contingent events
1. Important commitments
□ Applicable √ N/A
2. Contingent events
(1) Important contingent events on the balance sheet date
□ Applicable √ N/A
(2) It is required to give explanations if there are no material contingent events that need to be
disclosed for the Company:
□ Applicable √ N/A
221 / 236
2024 Interim Report
3. Others
□ Applicable √ N/A
XVII. Subsequent events of the balance sheet
1. Important non-adjustment events
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
The influence number Reasons for inability to
Item Content on financial conditions estimate the influence
and operating results number
Issuance of stocks and Restricted stock N/A N/A
bonds repurchase and
write-off
Important outbound
investments
Important debt
restructuring
Natural disaster
Important changes in
foreign exchange rates
1. On June 24, 2024, the Company held the 54th meeting of the third board of directors and the 48th
meeting of the third board of supervisors, and approved the Proposal on Repurchasing and Canceling
Some Restricted Stocks in the 2023 Restricted Stock Incentive Plan. There are a total of 34,388 shares to
be cancelled, and the Company’s total share capital will be reduced from 314,433,090 shares to
314,398,702 shares after write-off.
2. The Company held the 54th meeting of the third board of directors and the 48th meeting of the third
board of supervisors on June 24, 2024, and approved the “Proposal on the Acquisition and Merger of
Holding Subsidiaries”. It is proposed to arrange for the holding subsidiary, Coshin Technology, to
acquire and merge Optical Applications. As of the disclosure date of this report, the deadline for
notifying creditors to declare their creditors’ rights has expired, and tax and business affairs are currently
being handled as planned.
2. Profit distribution
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Profit or dividends to be distributed 270,412,525.34
Profits or dividends declared for 270,412,525.34
distribution after review and approval
3. Sales returns
□ Applicable √ N/A
4. Notes to other subsequent events of the balance sheet
□ Applicable √ N/A
XVIII. Other important events
Correction of accounting errors in the previous period
(1) Retrospective restatement method
□ Applicable √ N/A
(2) Prospective application
□ Applicable √ N/A
2. Important debt restructuring
222 / 236
2024 Interim Report
□ Applicable √ N/A
3. Asset replacement
(1) Non-monetary asset exchange
□ Applicable √ N/A
(2) Other asset replacement
□ Applicable √ N/A
4. Pension plan
□ Applicable √ N/A
5. Termination of operations
□ Applicable √ N/A
6. Information on reportable segment
(1) Basis for determining reportable segments and accounting policies
□ Applicable √ N/A
(2) Financial information of reportable segments
□ Applicable √ N/A
(3) If the Company has no any reportable segments or cannot disclose the total assets and
liabilities of each reportable segment, the reasons should be explained
□ Applicable √ N/A
(4) Other notes
□ Applicable √ N/A
7. Other important transactions and events that have an impact on investors’ decision-making
□ Applicable √ N/A
8. Others
□ Applicable √ N/A
XIX. Notes to major items in the financial statements of the parent company
1. Accounts receivable
(1) Disclosure by aging
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Aging Closing balance Opening balance
Within 1 year
Of which: sub-items within 1 year
1,583,839,093.97 1,154,106,167.00
Subtotal of receivables within 1
1,583,839,093.97 1,154,106,167.00
year
1 to 2 years 131,675,420.46 147,817,265.53
2 to 3 years 73,671,989.75 17,728,108.25
Over 3 years 26,665,351.44 19,410,249.61
Subtotal
Less: Provision for bad debts 220,208,212.99 154,354,437.25
Total 1,595,643,642.63 1,184,707,353.14
(2) Disclosure by bad debt provision method
√ Applicable □ N/A
223 / 236
2024 Interim Report
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Carrying Provision for bad Carrying Provision for bad
amount debts amount debts
Type Provis Carrying Provis Carrying
Rat Rat
ion value ion value
Amount io Amount Amount io Amount
ratio ratio
(%) (%)
(%) (%)
Provisio
n for bad
debts 105,195,29 5.7 105,195,2 100.0 71,583,866 5.3 71,583,86 100.0
- -
based on 3.06 9 93.06 0 .54 5 6.54 0
individua
l items
Of which:
Provisio
n for bad
debts 105,195,29 5.7 105,195,2 100.0 71,583,866 5.3 71,583,86 100.0
- -
based on 3.06 9 93.06 0 .54 5 6.54 0
individua
l items
Provisio
n for bad
debts
based on 1,710,656, 94. 115,012,9 1,595,643, 1,267,477, 94. 82,770,57 1,184,707,
6.72 6.53
the 562.56 21 19.93 642.63 923.85 65 0.71 353.14
combinat
ion of
items
Of which:
Provisio
n for bad
debts
based on
the
1,710,656, 94. 115,012,9 1,595,643, 1,267,477, 94. 82,770,57 1,184,707,
combinat 6.72 6.53
562.56 21 19.93 642.63 923.85 65 0.71 353.14
ion of
credit
risk
character
istics
1,815,851, 220,208,2 1,595,643, 1,339,061, 154,354,4 1,184,707,
Total / / / /
855.62 12.99 642.63 790.39 37.25 353.14
Provision for bad debts based on individual items:
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance
Name Provision for bad Provision ratio
Carrying amount Provision reasons
debts (%)
Customer 1 761,966.00 761,966.00 100.00 On the verge of
bankruptcy
Customer 2 405,369.80 405,369.80 100.00 Bankruptcy
Customer 3 762,559.59 762,559.59 100.00 Difficulty in
224 / 236
2024 Interim Report
payment collection
Customer 4 135,750.00 135,750.00 100.00 Difficulty in
payment collection
Customer 5 200,000.00 200,000.00 100.00 Under prosecution
Customer 6 790,959.00 790,959.00 100.00 Under prosecution
Customer 7 3,113,451.05 3,113,451.05 100.00 Bankruptcy
Customer 8 6,009,191.50 6,009,191.50 100.00 Bankruptcy
Customer 9 816,760.00 816,760.00 100.00 Bankruptcy
Customer 10 1,979,760.13 1,979,760.13 100.00 Under prosecution
Customer 11 17,987,500.00 17,987,500.00 100.00 Bankruptcy
Customer 12 1,572,512.86 1,572,512.86 100.00 Under prosecution
Customer 13 737.82 737.82 100.00 Difficulty in
payment collection
Customer 14 1,111,894.00 1,111,894.00 100.00 Difficulty in
payment collection
Customer 15 602,000.00 602,000.00 100.00 Difficulty in
payment collection
Customer 16 2,273,337.06 2,273,337.06 100.00 Bankruptcy
Customer 17 1,592,000.00 1,592,000.00 100.00 Difficulty in
payment collection
Customer 18 1,112,000.00 1,112,000.00 100.00 Bankruptcy
Customer 19 2,514,000.00 2,514,000.00 100.00 Under prosecution
Customer 20 670,828.99 670,828.99 100.00 Under prosecution
Customer 21 15,119,600.27 15,119,600.27 100.00 Difficulty in
payment collection
Customer 22 5,022,400.00 5,022,400.00 100.00 Under prosecution
Customer 23 9,590,631.73 9,590,631.73 100.00 Bankruptcy
Customer 24 15,500.00 15,500.00 100.00 Difficulty in
payment collection
Customer 25 1,018,267.50 1,018,267.50 100.00 Difficulty in
payment collection
Customer 26 1,827,230.76 1,827,230.76 100.00 Under prosecution
Customer 27 640,000.00 640,000.00 100.00 Under prosecution
Customer 28 150,000.00 150,000.00 100.00 Under prosecution
Customer 29 17,385.00 17,385.00 100.00 Difficulty in
payment collection
Customer 30 771,000.00 771,000.00 100.00 Bankruptcy
Customer 31 6,524,000.00 6,524,000.00 100.00 Difficulty in
payment collection
Customer 32 1,640,000.00 1,640,000.00 100.00 Difficulty in
payment collection
Customer 33 3,000,000.00 3,000,000.00 100.00 Under prosecution
Customer 34 7,518,700.00 7,518,700.00 100.00 Difficulty in
payment collection
Customer 35 888,000.00 888,000.00 100.00 Difficulty in
payment collection
Customer 36 7,040,000.00 7,040,000.00 100.00 Difficulty in
payment collection
Total 105,195,293.06 105,195,293.06 100.00 /
Notes to provision for bad debts based on individual items:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
√Applicable □N/A
225 / 236
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Combination provision item: Provision for bad debts based on the combination of credit risk
characteristics
Unit: Yuan, Currency: RMB
Closing balance
Name
Accounts receivable Provision for bad debts Provision ratio (%)
Within 1 year 1,504,413,913.41 74,995,700.53 5
1 to 2 years 95,873,347.19 14,121,115.83 15
2 to 3 years 30,254,298.15 15,127,149.07 50.00
Over 3 years 10,768,954.50 10,768,954.50 100.00
Total 1,641,310,513.25 115,012,919.93
Notes to provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
Basis for classification at different phases and provision ratio for bad debts
N/A
Notes to significant changes in the carrying amount of accounts receivable with changes in loss
provisions in the current period:
□ Applicable √ N/A
(3) Provision for bad debts
√Applicable □N/A
Unit: Yuan, Currency: RMB
Amount of change for the period
Amount
Opening charged Closing
Type Amount recovered Other
balance Provision off or balance
or reversed changes
written
off
Provision 71,583,866.54 45,797,123.63 12,131,697.11 54,000.00 105,195,293.06
for bad
debts based
on
individual
items
Provision 82,770,570.71 60,057,820.16 27,815,470.94 115,012,919.93
for bad
debts based
on the
combination
of items
Total 154,354,437.25 105,854,943.79 39,947,168.05 54,000.00 - 220,208,212.99
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes
N/A
(4) Other receivables actually written off in the current period
226 / 236
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√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount written off
Accounts receivable actually written off 54,000.00
Of which, significant accounts receivable written off
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Whether the
Nature of Write-off payment is
Amount Write-off
Entity name accounts procedures generated from
written off reasons
receivable performed related party
transactions
Payment for 54,000 Reduction Approved by the No
Jiangsu goods Management
Jingke
Tiansheng
Energy Co.,
Ltd.
Total / 54,000.00 / / /
Notes to the write-off of accounts receivable:
□ Applicable √ N/A
(5) Top five accounts receivable and contract assets by closing balance of debtor
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Ratio of the
total closing
Closing Closing balance
Closing balance balance of Closing balance
Entity balance of of accounts
of accounts accounts of provision for
name contract receivable and
receivable receivable bad debts
assets contract assets
and contract
assets (%)
Customer 1 194,273,554.14 - 194,273,554.14 10.71 9,713,677.71
Customer 2 155,683,720.41 - 155,683,720.41 8.57 10,944,561.66
Customer 3 139,522,380.12 - 139,522,380.12 7.68 8,607,253.15
Customer 4 126,616,177.64 - 126,616,177.64 6.97 8,643,291.87
Customer 5 86,019,003.43 - 86,019,003.43 4.74 4,618,990.00
Total 702,114,835.75 - 702,114,835.74 38.67 42,527,774.39
Other notes
N/A
Other notes:
□ Applicable √ N/A
2. Other receivables
Item List
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Closing balance Opening balance
Interest receivable
Dividends receivable
227 / 236
2024 Interim Report
Other receivables 1,503,138,972.94 1,169,349,500.49
Total 1,503,138,972.94 1,169,349,500.49
Other notes:
□ Applicable √ N/A
Interest receivable
(1) Classification of interest receivable
□ Applicable √ N/A
(2) Significant overdue interest
□ Applicable √ N/A
(3) Disclosure by bad debt provision method
□ Applicable √ N/A
Provision for bad debts based on individual items:
□ Applicable √ N/A
Notes to provision for bad debts based on individual items:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
(4) Provision for bad debts
□ Applicable √ N/A
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes:
N/A
(5) Interest receivable actually written off in the current period
□ Applicable √ N/A
Of which, significant interest receivable written off
□ Applicable √ N/A
Notes to the write-off of interest receivable:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Dividends receivable
(1) Dividends receivable
□ Applicable √ N/A
228 / 236
2024 Interim Report
(2) Significant dividends receivable with an aging of over 1 year
□ Applicable √ N/A
(3) Disclosure by bad debt provision method
□ Applicable √ N/A
Provision for bad debts based on individual items:
□ Applicable √ N/A
Notes to provision for bad debts based on individual items:
□ Applicable √ N/A
Provision for bad debts based on the combination of items:
□ Applicable √ N/A
Provision for bad debts based on the general model of expected credit losses
□ Applicable √ N/A
(4) Provision for bad debts
□ Applicable √ N/A
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes:
N/A
(5) Dividends receivable actually written off in the current period
□ Applicable √ N/A
Of which, significant write-offs of dividends receivable therein
□ Applicable √ N/A
Notes to the write-off of dividends receivable:
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
Other receivables
(1) Disclosure by aging
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Aging Closing balance Opening balance
Within 1 year
Of which: sub-items within 1 year
Within 1 year 1,494,882,110.82 773,267,647.38
Subtotal of receivables within 1 1,494,882,110.82 773,267,647.38
year
1 to 2 years 8,162,542.66 397,451,395.16
2 to 3 years 3,780,000.00 3,377,876.58
Over 3 years 747,408.00 747,408.00
Subtotal 1,507,572,061.48 1,174,844,327.12
229 / 236
2024 Interim Report
Less: Provision for bad debts 4,433,088.54 5,494,826.63
Total 1,503,138,972.94 1,169,349,500.49
(2) Classified by the nature of receivables
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Nature of payment Closing balance Opening balance
Provision for bad debts based on 299,200.00 299,200.00
individual items
Provision for bad debts based on 1,507,272,861.48 1,174,545,127.12
the combination of credit risk
characteristics
Total 1,507,572,061.48 1,174,844,327.12
(3) Provision for bad debts
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Phase 1 Phase 2 Phase 3
Expected credit loss Expected credit loss
Provision for bad Expected credit Total
over the entire over the entire
debts loss for the
lifetime (without lifetime (with credit
next 12 months
credit impairment) impairment)
Balance as at
5,195,626.63 299,200.00 5,494,826.63
January 1, 2024
Balance as at
January 1, 2024,
-
in the current
period
-- Carry over to
-
Phase 3
-- Carry over to
-
Phase 3
-- Carry over to
-
Phase 2
-- Carry over to
-
Phase 1
Provision in the
834,098.05 834,098.05
current period
Reversal in the
1,895,836.14 1,895,836.14
current period
Charge-off in the
-
current period
Write-off -
Other changes -
Balance as at June
4,133,888.54 299,200.00 4,433,088.54
30, 2024
Basis for classification at different phases and provision ratio for bad debts
N/A
Notes to significant changes in the carrying amount of other receivables with changes in loss provisions
in the current period:
□ Applicable √ N/A
230 / 236
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The amount of provision for bad debts in the current period and the basis for evaluating whether the
credit risk of financial instruments has significantly increased:
□ Applicable √ N/A
(4) Provision for bad debts
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount of change for the period
Amount
Opening Amount charged Closing
Type Other
balance Provision recovered or off or balance
changes
reversed written
off
Provision for 299,200.00 299,200.00
bad debts based
on individual
items
Provision for 5,195,626.63 834,098.05 1,895,836.14 4,133,888.54
bad debts based
on the
combination of
items
Total 5,494,826.63 834,098.05 1,895,836.14 - - 4,433,088.54
Of which, significant amount of provision for bad debts recovered or reversed in the current period:
□ Applicable √ N/A
Other notes
N/A
(5) Other receivables actually written off in the current period
□ Applicable √ N/A
Of which, significant receivables written off:
□ Applicable √ N/A
Notes to the write-off of other receivables:
□ Applicable √ N/A
(6) Top five other receivables by closing balance of debtor
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Ratio in total
closing Closing
balance of Nature of balance of
Entity name Closing balance Aging
other Payment provision for
receivables bad debts
(%)
Wuxi Autowell 472,235,000.57 31.41 Internal Within 1
XuRi Technology transactions year
Co., Ltd.
Wuxi Songci 370,555,419.73 24.65 Internal Within 1
Electromechanical transactions year
Co., Ltd.
Wuxi Autowell 333,198,656.61 22.17 Internal Within 1
Intelligent transactions year
231 / 236
2024 Interim Report
Equipment Co.,
Ltd.
Wuxi Autowell 117,685,351.83 7.83 Internal Within 1
Coshin transactions year
Semiconductor
Technology Co.,
Ltd.
Wuxi Autowell 107,722,841.10 7.17 Internal Within 1
Optical transactions year
Application Co.,
Ltd.
Total 1,401,397,269.84 93.23 / / -
(7) Presented as other receivables due to centralized fund management
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
3. Long term equity investment
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Closing balance Opening balance
Provision Provision
Item Carrying Carrying
for Carrying value for Carrying value
amount amount
impairment impairment
Investment in
590,082,131.95 - 590,082,131.95 523,401,796.42 - 523,401,796.42
subsidiaries
Investment in
joint ventures - - - -
and associates
Total 590,082,131.95 - 590,082,131.95 523,401,796.42 - 523,401,796.42
(1) Investment in subsidiaries
√ Applicable □ N/A
Unit: million Yuan, Currency: RMB
Provision
Decrease for Closing
Increase in
Opening in the Closing impairment balance of
The invested entity the current
balance current balance in the impairment
period
period current provision
period
Intelligent
36.42 4.10 0.00 40.52 0.00 0.00
Equipment
Optical Applications 10.61 0.42 0.00 11.03 0.00 0.00
Supply Chain
11.26 0.16 0.00 11.42 0.00 0.00
Management
Songci
50.66 2.07 0.00 52.73 0.00 0.00
Electromechanical
XuRi Technology 29.03 1.59 0.00 30.63 0.00 0.00
Coshin
19.20 0.84 0.00 20.04 0.00 0.00
Semiconductor
Leddo Technology 50.00 0.00 0.00 50.00 0.00 0.00
Zhiyuan Equipment 14.00 0.00 0.00 14.00 0.00 0.00
Jiexin Technology 44.56 0.00 0.00 44.56 0.00 0.00
232 / 236
2024 Interim Report
Polar New Enegry 243.00 27.00 0.00 270.00 0.00 0.00
Wuxi Polar 0.00 18.33 0.00 18.33 0.00 0.00
AUTOWELL Japan 14.66 0.00 0.00 14.66 0.00 0.00
Autowell
0.00 12.17 0.00 12.17 0.00 0.00
(Singapore)
Total 523.40 66.68 0.00 590.08 0.00 0.00
(2) Investment in joint ventures and associates
□ Applicable √ N/A
(3) Impairment testing of long-term equity investments
□ Applicable √ N/A
Other notes:
□ Applicable √ N/A
4. Operating income and operating cost
(1) Operating income and operating cost
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Income Cost Income Cost
Main 2,048,527,945.02 1,242,289,824.67
3,303,172,850.50 2,111,925,203.31
business
Other 12,200,965.38 12,096,197.75
24,941,193.38 24,257,469.41
businesses
Total 3,328,114,043.88 2,136,182,672.72 2,060,728,910.40 1,254,386,022.42
(2) Information on decomposition of operating income and operating costs
√ Applicable □ N/A
Unit: YuanUnit: Yuan, Currency: RMB
Total
Contract type
Operating income Operating cost
Product type
Photovoltaic
3,300,181,700.05 2,110,395,238.69
equipment
Others 27,932,343.83 25,787,434.03
Total 3,328,114,043.88 2,136,182,672.72
Other notes
□ Applicable √ N/A
(3) Notes to performance obligation
□ Applicable √ N/A
(4) Notes to the performance obligation of amortizing to the remainder
□ Applicable √ N/A
(5) Major contract changes or significant transaction price adjustments
□ Applicable √ N/A
233 / 236
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Other notes:
N/A
5. Investment income
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Amount incurred in the Amount incurred in the
Item
current period previous period
Income from long-term equity -
investment based on equity method
Investment income generated from -2,999,999.00
disposal of long-term equity investments
Investment income of trading financial -
assets during the holding period
Dividend income obtained from other -
equity instrument investments during
the holding period
Interest income obtained from debt -
investments during the holding period
Interest income obtained from other debt -
investments during the holding period
Investment income obtained from -
disposal of trading financial assets
Investment income obtained from -
disposal of other equity instrument
investments
Investment income obtained from -
disposal of debt investments
Investment income obtained from -
disposal of other debt investments
Debt restructuring income 1,134,950.39 -
Investment income from financial 2,421,303.32 9,473,475.86
products
Investment income of other non-current 729,283.23 42,000.00
financial assets during the holding
period
Total 4,285,536.94 6,515,476.86
Other notes:
N/A
6. Others
□ Applicable √ N/A
XX. Supplementary Information
1. Statement of non-recurring gains and losses in the current period
√ Applicable □ N/A
Unit: Yuan, Currency: RMB
Item Amount Note
Gains and losses from the disposal of non-current
assets, including the write-off portion of -164,407.40
impairment provisions already made for assets
Government grants included in the gains and
losses in the current period, except those closely 5,397,451.34
related to the Company’s normal business
234 / 236
2024 Interim Report
operations, in compliance with national policies
and regulations, enjoyed according to established
standards, and having a sustained impact on the
Company’s gains and losses
Gains and losses from changes in fair value of
financial assets and liabilities by non-financial
enterprises’ holding financial assets and liabilities -20,540,182.44
as well as gains and losses from their disposing of
the assets and liabilities
Funds occupancy fees charged to non-financial
enterprises included in the gains and losses in the
current period
Gains and losses from entrusting others to invest
in or manage assets
Gains and losses obtained from external entrusted
loans
Losses of various assets due to force majeure
factors, such as natural disasters
Reversal of impairment provision for accounts
12,627,272.33
receivable separately tested for impairment
The gains generated from the fair value of the
identifiable net assets of the investee the
enterprise should enjoy when the investment cost
of its acquiring subsidiaries, associates, and joint
venture is less than the investment obtained
Net gains and losses of subsidiaries in the current
period arising from mergers of enterprises under
common control from the beginning of the period
to the merger date
Gains and losses from non-monetary asset
exchange
Gains and losses from debt restructuring 1,134,950.39
One-time costs incurred by enterprises due to the
discontinuation of relevant business activities,
such as expenses on employee resettlement, etc.
The one-time impact of adjustments to tax,
accounting, and other laws and regulations on the
gains and losses in the current period
One-time confirmation of share-based payment
expenses due to write-off or modification of
equity incentive plans
For cash settled share based payments, gains or
losses arising from changes in fair value of staff
remuneration payable after the exercise date
Gains and losses arising from changes in fair
value of investment properties measured
subsequently via the fair value model
Gains generated from transactions with
significantly unfair transaction prices
Gains and losses arising from contingent items
unrelated to the normal operation of the
Company’s business
Custody fee income obtained from entrusted
operation
Other non-operating income and expenses except
-382,006.17
those mentioned above
235 / 236
2024 Interim Report
Other gains and losses items that meet the
definition of non-recurring gains and losses
Less: Amount under the impact of income tax -263,166.53
Amount under the impact of non-controlling
1,714,842.25
shareholders’ equity (after tax)
Total -3,378,597.67
In the case where the Company classifies items not listed in the “Explanatory Announcement No. 1 on
Information Disclosure of Publicly Issued Securities Companies—Non-recurring Gains and Losses” as
items of non-recurring gains and losses with significant amounts, and defines items of non-recurring
gains and losses listed in the Explanatory Announcement as recurring items of gains and losses, the
relevant reasons should be explained.
□ Applicable √ N/A
Other notes
□ Applicable √ N/A
2. Return on equity and earnings per share
√ Applicable □ N/A
Weighted average Earnings per share
Profit during the reporting
return on equity Basic earnings per Diluted earnings per
period
(%) share share
Net profit attributable to
common shareholders of the 19.23% 2.45 2.35
Company
Net profit attributable to
common shareholders of the
19.32% 2.46 2.36
Company after deducting
non-recurring gains and losses
3. Differences in accounting data under the accounting standards at home and abroad
□ Applicable √ N/A
4. Others
□ Applicable √ N/A
Chairman: Ge Zhiyong
Date of submission approved by the Board of Directors: August 22, 2024
Revision information
□ Applicable √ N/A
236 / 236
