Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Hangzhou Robam Appliances Co., Ltd.
Semi-Annual Report 2023
August 2023
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 1 Important Notes, Contents and Interpretations
The Board of Directors, the Board of Supervisors, as well as the directors, supervisors and senior management of Hangzhou
Robam Appliances Co., Ltd. (the Company) hereby guarantee that there are no false representations, misleading statements, or
material omissions in this Semi-Annual Report (“the Report”), and are severally and jointly liable for the authenticity, accuracy
and completeness of the information contained herein.
Ren Jianhua, the head of the Company, Zhang Guofu, the person in charge of the Company’s accounting, and Zhang Guofu,
the head of the accounting department (the accountant in charge) hereby declare and warrant that the financial report contained in
the Report is authentic, accurate, and complete.
All the directors attended a Board meeting during which they reviewed the Report.
The Company is exposed to risks such as fluctuations in the real estate market policies, fluctuations in raw material prices and
intensified market competition. Investors are advised to be aware of the investment risks.
The Company does not plan to distribute cash dividends or bonus shares, or convert capital reserve into capital stock.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Contents
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Documents Available for Reference
I. Financial statement signed by the legal representative, the person in charge of accounting and the head of the accounting
department and affixed with seal.
II. Original copies of documents and announcements of the Company published in the newspaper designated by China
Securities Regulatory Commission during the reporting period.
III. The Semi-Annual Report 2023 signed by the legal representative
IV. Other information.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Interpretations
Item refer(s) to Contents
The Company, Company, Robam
refer to Hangzhou Robam Appliances Co., Ltd.
Appliances
MingQi refers to Hangzhou MingQi Electric Co., Ltd.
Shengzhou Kinde Intelligent Kitchen
Kinde Subsidiary refers to
Appliances Co., Ltd.
Hangzhou Robam Industrial Group Co.,
Robam Group refers to Ltd., controlling shareholder of the
Company
The reporting period refers to The first half of 2023
Beijing All View Cloud Data
AVC refers to
Technology Co., Ltd.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 2 Company Profile and Major Financial Indicators
I. Company Profile
Stock abbreviation Robam Stock code 002508
Stocks traded on Shenzhen Stock Exchange
Chinese name of the
Hangzhou Robam Appliances Co., Ltd.
Company
Short Chinese name of the
Robam
Company (if any)
Short English name of the
ROBAM
Company (if any)
Legal representative of the
Ren Jianhua
Company
II. Contact Person and Contact Information
Secretary of the Board of Directors Representative of securities affairs
Name Wang Gang Jiang Yu
No. 592, Linping Avenue, Linping No. 592, Linping Avenue, Linping
Contact address District, Hangzhou City, Zhejiang District, Hangzhou City, Zhejiang
Province Province
Telephone 0571--86187810 0571--86187810
Fax 0571--86187769 0571--86187769
E-mail wg@robam.com jy@robam.com
III. Other Information
Whether the registered address, office address and zip code as well as the website and email address of the Company changed
during the reporting period?
□Applicable ?Not applicable
There were no changes in the registered address, office address and zip code as well as the website and email address of the
Company during the reporting period. For details, please refer to the Annual Report 2022.
Whether the information disclosure and filing locations changed during the reporting period?
□Applicable ? Not applicable
During the reporting period, there were no changes in the website of stock exchange and name and website of media designated
for information disclosure of the semi-annual report and the location for filing the semi-annual report of the Company. For details,
please refer to the Annual Report 2022.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Whether other relevant information changed during the reporting period?
□Applicable ? Not applicable
IV. Key Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of previous years?
□ Yes? No
The same period last
The reporting period YoY change
year
Operating Income (RMB) 4,934,869,800.15 4,444,310,099.69 11.04%
Net profit attributable to shareholders of the listed
company (RMB)
Net profit attributable to shareholders of the listed
company after deducting non-recurring profits and losses 746,691,977.38 635,845,084.07 17.43%
(RMB)
Net cash flow from operating activities (RMB) 959,732,853.23 322,855,122.33 197.26%
Basic earnings per share (EPS) (RMB/share) 0.87 0.76 14.47%
Diluted EPS (RMB/share) 0.87 0.76 14.47%
An increase
Weighted average return on net assets 8.24% 8.05%
of 0.19%
End of the reporting
End of last year Change
period
Total assets (RMB) 15,376,337,927.71 15,039,825,287.53 2.24%
Net assets attributable to shareholders of the listed
company (RMB)
V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
International Accounting Standards (IAS) and China’s accounting standards?
□Applicable ?Not applicable
There is no difference in the net profit and net asset disclosed in the Financial Report under IAS and China’s accounting standards
during the reporting period.
foreign accounting standards and China’s accounting standards during?
□Applicable ?Not applicable
There is no difference in the net profit and net asset disclosed in the Financial Report under foreign accounting standards and
China’s accounting standards during the reporting period.
VI. Items and Amounts of Non-recurring Gains and Losses
?Applicable □Not applicable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
In RMB
Item Amount Description
Gains and losses on disposal of non-current assets (including the part written-off with
-576,982.36
provision for asset impairment accrued)
Government subsidy included in current gains and losses (except the government
subsidy closely related to the Company’s normal business, in line with national policy 60,521,206.11
and enjoyed by quota or ration in accordance with the unified national standard)
Reversal of impairment provision for accounts receivable tested for impairment
separately
Other non-operating revenues and expenses except the above items 1,354,348.96
Less: Affected amount of income tax 15,524,210.60
Affected amount of minority shareholders’ equity (after tax) 1,304,629.94
Total 83,026,373.31
Explanation on the circumstance where items of the non-recurring gains and losses listed in the Explanatory Announcement No. 1
on Information Disclosure for Companies Offering Their Securities to the Public — Non-recurring Profits and Losses (referred to
as “Announcement No.1”) are defined as recurring profits and losses
?Applicable ?Not applicable
Item Amount Reasons
VAT exemption, reduction or refund 9,453,997.74 National tax policy, regular business
Refund of individual income tax
handling fee
Total 10,138,352.65 —
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 3 Management Discussion and Analysis
I. Main Businesses during the Reporting Period
In the first half of 2023, with the gradual implementation of national macroeconomic policies, the real estate
industry has shown a gradual recovery in prosperity, and the kitchen appliance industry has experienced a moderate
rebound overall. In terms of the retail channel, as shown in AVC monthly data report based on offline retail market
monitoring (“AVC Offline Report”), the year-on-year (YoY) growth of the retail sales of the main categories of kitchen
appliances, i.e. range hoods and gas stoves, registered 7.6% and 2.2% respectively. In terms of the e-commerce channel,
as shown in AVC monthly data report based on online retail market monitoring (“AVC Online Report”), the YoY
growth of the retail sales of the kitchen appliances package registered 14.6%. In terms of the engineering channel, as
shown in the AVC Real Estate Big Data (“AVC Real Estate Report”), due to the sluggish sales of new houses, there
were 375,800 sets of newly launched houses with fine decoration in the first half of the year, a YoY decrease of 45.1%;
the penetration rate of fine decoration projects was 37.7%, a decrease of 2.4 percentage points compared to that in the
previous year. The installation rates of range hoods and gas stoves were 96.4% and 96.3% respectively, which remain
basically unchanged compared to the same period last year; the penetration rate of dishwashers was 38.5%, an increase
of 7.1 percentage points compared to the same period last year. In the first half of 2023, thanks to the implementation of
the “ensuring timely delivery of presold homes” policy, the area of completed commercial residential buildings reached
housing delivery in the market.
The Company has a solid leading position in the industry. According to the AVC Offline Report, the retail sales
and its market share of Robam range hood were 31.0% and 25.8% respectively, while the retail sales and its market
share of Robam gas stove were 30.4% and 23.1% respectively. As shown in the AVC Online Report, the retail sales and
its market share of Robam kitchen appliance package were 32.0% and 24.6% respectively, all the above indexes
ranking first in the industry. In the first half of 2023, closely focusing on the annual business philosophy of “Creating a
Dream for Long Journey, Winning through Innovation - Creating a New Future for Digital Kitchen Appliances”, the
Company achieved a revenue of RMB 4.935 billion, a YoY growth of 11.04%, and a net profit attributable to the
owners of the listed company of RMB 830 million, a YoY growth of 14.67%, both exceeding the industry average level.
As of June 30, 2023, according to AVC Offline Report, the market shares and market rankings of the Company’s
main product categories in terms of offline retail sales are shown in the following table:
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Range hoods Gas stove Disinfection Built-in Built-in Built-in Built-in
cabinet combi-steam electric steam electric oven dishwasher
oven oven
As of June 30, 2023, according to AVC Online Report, the market shares and market rankings of the Company’s
main product categories in terms of online retail sales are shown in the following table:
Kitchen 2-piece package Range hoods Gas stove Built-in Built-in Built-in
appliance of range hood combi-steam electric steam dishwasher
package and stove oven oven
As of June 30, 2023, according to AVC Real Estate Report, the market share of Robam range hoods in the fine
decoration channel was 34.8%, ranking No.1 in the industry.
In the first half of 2023, for the technology sector, the Company continued to lead industry innovation and drive
culinary transformation. The release of Creator i7 – the AI-powered new flagship product in digital kitchen appliances
has comprehensively improved the functions such as gas stove compatible automatic cooking, user interaction and
automation experience, and the Company published the Digital Cooking Standard for Healthy Home jointly with the
China Household Electric Appliance Research Institute, further promoting the healthy and orderly development of
digital kitchen appliances. As of June 30, 2023, a total of 3,858 patents have been granted to the Company, including
took the lead in developing 35 of them. In addition, the Company’s technological innovation capabilities have been
continuously recognized by the industry, and it won the first and second prizes of the Science and Technology Progress
Award of the China National Light Industry Council in 2023. The range hood (CG51X2) also won the China Excellent
Design Patent Award.
In the first half of 2023, as for the marketing, the Company adhered to its high-end brand positioning, and met the
multi-dimensional needs of customers by centering on customers, with multiple brands and channels empowering each
other for synergetic development. In terms of the retail channel, with traditional retail flow rebounding, exclusive shop
system developed steadily, expanding channels grew rapidly, and innovative channels are poised for development; from
the user side, the Company plans to promote worry-free kitchen renovation service and upgrade service experience. In
terms of the E-commerce channel, the Company deeply tapped into user value, fully utilized flow resources, and
enhanced channel efficiency through multi-category synergy. In terms of the engineering channel, in the context of the
“ensuring timely delivery of presold homes” policy driving real estate market growth, the Company strictly controlled
channel risks and optimized customer structure, significantly improving cash flow. For the overseas channel, the
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Company steadily promoted its global layout and the internationalization of the brand. In addition, the Robam brand has
comprehensively supported MingQi brand by upgrading its organizational resources, brand potential, product
innovation and channel expansion, and exploring the new retail development path of MingQi brands. It has also
collaborated with sub-brands such as Kinde, DACHOO and ROKI Digital Kitchen Appliances to build a new brand
matrix, achieving diversity integration for creating a joint development path.
In the first half of 2023, as for production, with the core of “refining and leading innovation”, the Company
focuses on refining and enhancing aspects related to product category, suppliers, manufacturing processes, and market
presence, striving to become one of the strongest manufacturing benchmarks in China’s manufacturing industry. It was
awarded the “2022 National Quality Benchmark” by the China Association for Quality. To better serve users, the
Company built differentiated manufacturing and supply capabilities and enhanced quality control and product delivery
capabilities; to better make use of resources, the Company promoted whole-process inventory management and
established a cost control system with comprehensive competitive advantages; through evolution and innovation, the
Company aimed to construct an integrated supply chain and a digitalized transparent future factory. The Maoshan
Intelligent Manufacturing Park Project has been officially put into use, further achieving cost reduction and efficiency
improvement and realizing continuous improvement of production efficiency and production benefits.
In the first half of 2023, as for brand, the Company continued to build the brand image as the premier Chinese
high-end kitchen appliance brand that best understands Chinese cooking. It also held the “Feeling Free to Cook and the
Digital Kitchen Appliance Technology New Product Release Conference”. Multiple products such as the Lingxi fully
automatic range hood and stove, Guangyan integrated washing and disinfection machine, Digital Kitchen Appliance
Creator series and high-performance integrated stove appeared at the 2023 China Appliance & Electronics World Expo
(AWE). Dishwasher S1 plus, combi-steam oven CQ928, and Digital Kitchen Appliance Creator i1 won the Excellent
Product Prize, Design Prize, and Smart Technology Prize of AWE Award respectively. In addition, the Company held a
series of activities such as the Chinese Culinary Banquet, the First Chinese Cooking Competition and the Third
Dishwasher Festival; Robam also sponsored the reality show “It Sounds Incredible”, appeared on “CCTV Finance and
Economics” Channel and joined hands with Wang Yibo to launch the theme activity of “Pampering Your Hands”,
helping the dishwasher category to be accepted by more circles of people and accelerating its popularization. All these
activities contributed to the ongoing exposure and influence of the brand. As the exclusive supplier of household
kitchen appliances for the 19th Asian Games Hangzhou 2022, the Company empowered the Asian Games with
innovative technology which further supported the promotion of the 19th Asian Games Hangzhou 2022, contributed to
the ecological construction of the 19th Asian Games Hangzhou 2022, and made its efforts in creating this sports and
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
cultural event with “Chinese style, Zhejiang characteristics, Hangzhou charm, and shared development”.
In the first half of 2023, the Company continued to gain recognition from the capital market in terms of corporate
governance, information disclosure and shareholder returns. It has been rated as A level (excellent) in the information
disclosure assessment on listed companies by the Shenzhen Stock Exchange for nine consecutive years. Meanwhile,
based on improvement and excellent performance in corporate governance and employee welfare programs, its MSCI
ESG has been rated as A level and ranks among the top in the global peer (household durable goods) companies. In
order to implement common prosperity and establish a normalized incentive mechanism, the Company has launched
the 2023 Stock Option Incentive Plan to provide stock option incentives for the Company’s middle-level key business
and technical backbone staff, thereby consolidating the long-term development foundation of the Company. 2023 is
the starting year of the Company’s new three-year strategy. The Company will continue to focus on cooking and
build a new core competitiveness based on “technology + humanity” to achieve long-term stable and high-quality
development.
II. Analysis of Core Competitiveness
There is NO material change in the Company’s core competitiveness during the reporting period. The Company’s core
competitiveness is mainly reflected in its high-end brand positioning, R&D capability for continuous innovation, comprehensive
and efficient operation capability, as shown in the Annual Report 2022.
III. Analysis of Main Business
Overview
See the relevant content in the “I. Main Businesses during the Reporting Period”.
Year-on-year changes in key financial data
In RMB
The same period last
The reporting period YOY change Reason for change
year
Operating income 4,934,869,800.15 4,444,310,099.69 11.04%
Operating costs 2,372,095,971.50 2,240,019,882.53 5.90%
Sale expenses 1,360,821,373.41 1,184,704,589.52 14.87%
Administrative
expenses
Financial expense -68,958,985.09 -62,275,458.91 Not Applicable
Income tax expense 151,830,927.51 131,172,418.86 15.75%
Due to the increase in
Net cash flow from
operating activities
period.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Net cash flow from
investment activities
Net cash flow from
-443,777,479.65 -443,071,536.06 Not Applicable
financing activities
Due to the increase in
Net increase in cash
and cash equivalents
period.
Major changes on profit composition or profit resources in reporting period
□Applicable ?Not applicable
No major changes on profit composition or profit resources occurred in reporting period
Composition of operating income
In RMB
The reporting period The same period last year
% of % of YOY change
Amount operating Amount operating
income income
Total operating
income
By industry
Kitchen and bathroom
appliances
Other operating
income
By product category
Category 1
Incl: Range hood 2,324,953,220.91 47.10% 2,074,153,523.02 46.68% 12.09%
Gas stove 1,183,171,484.38 23.98% 1,057,307,687.10 23.79% 11.90%
Disinfection
cabinet
Category 2
Incl: All-purpose oven 317,829,778.22 6.44% 358,429,402.29 8.06% -11.33%
Steam oven 33,863,980.47 0.69% 47,657,561.06 1.07% -28.94%
Baking oven 33,333,913.56 0.68% 39,476,578.27 0.89% -15.56%
Category 3
Incl: Dishwasher 331,655,582.50 6.72% 246,993,832.57 5.56% 34.28%
Water purifier 19,178,086.59 0.39% 27,217,675.16 0.61% -29.54%
Water heater 96,459,546.77 1.95% 85,479,990.00 1.92% 12.84%
Integrated stove 204,932,714.33 4.15% 145,144,422.16 3.27% 41.19%
Other small appliances 39,350,859.86 0.80% 38,536,931.54 0.87% 2.11%
Other operating
income
By region
East China-Main
Products
East China-Others 141,553,693.39 2.87% 126,819,993.81 2.85% 11.62%
South China 505,445,895.60 10.24% 540,221,730.07 12.16% -6.44%
Central China 414,023,176.19 8.39% 400,497,450.21 9.01% 3.38%
North China 519,977,554.25 10.54% 454,151,283.49 10.22% 14.49%
Northeast China 264,181,426.54 5.35% 195,279,872.46 4.39% 35.28%
Northwest China 268,067,121.49 5.43% 221,418,193.90 4.98% 21.07%
Southwest China 328,679,596.66 6.66% 290,681,625.76 6.54% 13.07%
Overseas 27,678,070.70 0.56% 27,070,310.00 0.61% 2.25%
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Industries, products and regions accounting for more than 10% of the Company’s operating income or profit
?Applicable □Not applicable
In RMB
YoY change YoY change in
Gross YoY change in
Operating income Operating costs in operating the gross
margin operating costs
income margin
By industry
Kitchen and
bathroom 4,793,316,106.76 2,305,082,060.11 51.91% 11.02% 4.53% 2.98%
appliances
By product category
Range hoods 2,324,953,220.91 1,043,996,959.67 55.10% 12.09% 1.91% 4.49%
Gas stove 1,183,171,484.38 514,362,626.90 56.53% 11.90% 6.68% 2.13%
By region
East China 2,465,263,265.33 1,121,781,782.29 54.50% 12.66% 3.82% 3.88%
South China 505,445,895.60 261,724,564.74 48.22% -6.44% -10.73% 2.49%
North China 519,977,554.25 232,661,198.60 55.26% 14.49% 6.55% 3.33%
Main business data of the Company in the recent reporting period according to adjusted statistical caliber at the end of the
reporting period is applied in case that the statistical caliber of such data is adjusted during the reporting period
□Applicable ?Not applicable
IV. Analysis of Non-core Business
□Applicable ? Not applicable
V. Analysis of Assets and Liabilities
In RMB
End of the reporting period End of last year Note on
Change in
% of total % of total significant
Amount Amount percentage
assets assets changes
Cash and cash
equivalents
Accounts
receivable
Inventory 1,532,632,739.87 9.97% 1,610,110,798.10 10.71% -0.74%
Investment real
estate
Long-term
equity 7,455,321.57 0.05% 8,718,505.62 0.06% -0.01%
investment
Fixed assets 1,585,824,017.21 10.31% 1,622,235,227.74 10.79% -0.48%
Construction in
process
Right of use
assets
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Short-term
borrowings
Contract
liabilities
Lease liabilities 14,115,619.44 0.09% 18,588,966.67 0.12% -0.03%
□Applicable ?Not applicable
□Applicable ?Not applicable
Item Ending book value Reasons for limit
Cash and cash equivalents 100,908,470.98 Letters of guarantee and bill acceptance margin
Cash and cash equivalents 13,000.00 ETC security deposits
Investment real estate 6,120,022.18 Collateral for bank loans
Fixed assets 95,880,347.37 Collateral for bank loans
Total 202,921,840.53 —
VI. Analysis of Investment
□Applicable ?Not applicable
□Applicable ?Not applicable
□Applicable ?Not applicable
(1) Securities investment
□Applicable ?Not applicable
The Company had no securities investment during the reporting period.
(2) Derivative investment
□Applicable ?Not applicable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
The Company had no derivatives investment during the reporting period.
□Applicable ?Not applicable
The Company did not use the raised funds during the reporting period.
VII. Sale of Major Assets and Equities
□Applicable ?Not applicable
The Company did not sell major assets during the reporting period.
□Applicable ?Not applicable
VIII. Analysis of Main Holding and Joint-stock Companies
?Applicable □Not applicable
Main subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit
In RMB
Comp Main
Company Registered
any busines Total assets Net assets Operating income Operating profit Net profit
name capital
type s
Beijing Sales
Robam of
Subsi
Appliances kitchen 5,000,000 83,686,746.37 41,316,274.79 124,448,419.33 914,059.98 204,752.21
diary
Sales Co., applian
Ltd. ces
Shanghai Sales
Robam of
Subsi
Appliances kitchen 5,000,000 107,238,646.69 -8,321,381.44 210,721,410.31 -10,612,385.56 -10,833,514.39
diary
Sales Co., applian
Ltd. ces
Sales
Hangzhou
of
MingQi Subsi
kitchen 50,000,000 179,359,426.10 50,484,973.40 162,787,949.64 466,736.71 281,710.98
Electric Co., diary
applian
Ltd.
ces
Shengzhou
Sales
Kinde
of
Intelligent Subsi
kitchen 32,653,061 454,076,336.98 241,351,314.26 67,284,556.69 -11,053,509.60 -10,892,781.85
Kitchen diary
applian
Appliances
ces
Co., Ltd.
Sales
Hangzhou
of
Jinhe Electric Subsi
kitchen 10,000,000 206,425,581.84 17,246,551.33 229,711,484.23 6,840,175.58 5,129,567.07
Appliances diary
applian
Co., Ltd.
ces
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Acquisition and disposal of subsidiaries during the reporting period
□Applicable ?Not applicable
Description of main holding and joint-stock companies
IX. Structured Entities Controlled by the Company
□Applicable ? Not applicable
X. Risks faced and countermeasures taken by the Company
(1) Risk of fluctuations in the real estate market
The Company is long engaged in the kitchen business, offering various kitchen appliances, such as range hoods, gas stoves,
dishwashers, combi-steam oven, disinfection cabinets, integrated stoves, etc. The demands for kitchen appliances are closely
related to the kitchen decoration, with certain "decoration" and "furniture" attributes. At present, the demand for our main products
is still closely related to the real estate market. The Company has certain anti-fluctuation ability by virtue of its market leadership,
although fluctuations in the real estate market will still have an impact on the Company’s operating results.
(2) Risk of price fluctuation of raw materials
The main raw materials of the Company’s equipment are stainless steel, cold-rolled sheet, copper and glass, etc., whose price
fluctuations will directly affect the cost of the Company’s products and in turn have an impact on its profitability.
(3) Risk of intensified market competition
In recent years, due to the tightening macro environment of the kitchen appliance industry, the continuous increase in
industry concentration, the comprehensive brands' increasing investment in the kitchen appliance market and the entry of Internet
brands, the market competition in the kitchen appliances industry has become increasingly fierce, and the intensification of market
competition will have a certain impact on the Company’s operating results.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 4 Corporate Governance
I. Annual General Meeting of Shareholders and Extraordinary General Meeting of
Shareholders during the Reporting Period
Proportio
n of
Session of meeting Type of meeting Date of meeting Date of disclosure Resolutions
attending
investors
The Announcement of
Resolutions of the 2022
General Meeting Meeting of 61.55% May 18, 2023 May 19, 2023 of Shareholders of Robam
of Shareholders Shareholders Appliances
(Announcement No.
meeting of shareholders
□Applicable ?Not applicable
II. Changes in Directors, Supervisors and Senior Management
□Applicable ?Not applicable
There was no change in directors, supervisors, and senior management of the Company during the reporting period. For details,
please refer to the Annual Report 2022.
III. Profit Distribution and Conversion of Capital Reserve into Capital Stock during the
Reporting Period
□Applicable ?Not applicable
The Company has no plans of distributing cash dividends or bonus shares, or converting capital reserve into capital stock for the
first half of 2023.
IV. Implementation of the Equity Incentive Plan, Employee Stock Ownership Plan or other
Employee Incentives
?Applicable □Not applicable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
April 25, 2023, deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2021 Stock
Option Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during
the Second Exercise Period of the 2021 Stock Option Incentive Plan and other proposals. The Board of Supervisors verified it and
expressed its agreement, and the independent directors of the Company expressed their independent opinion on it.
Corporation Limited, the cancellation of the aforementioned 945,000 stock options has been completed. The Company cancelled a
total of 945,000 stock options, accounting for 0.10% of the Company's current total capital stock. This cancellation of stock
options complies with relevant laws and regulations, the Articles of Association of Hangzhou Robam Appliances Co., Ltd., and the
provisions of the Incentive Plan (Draft), etc. The stock options cancelled this time have not been exercised, and the cancellation
will not have any impact on the Company's capital stock. The capital stock structure remains unchanged.
April 25, 2023, deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2022 Stock
Option Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during
the Second Exercise Period of the 2022 Stock Option Incentive Plan and other proposals. The Board of Supervisors verified it and
expressed its agreement, and the independent directors of the Company expressed their independent opinion on it.
Corporation Limited, the cancellation of the aforementioned 1,609,000 stock options has been completed. The Company cancelled
a total of 1,609,000 stock options, accounting for 0.17% of the Company's current total capital stock. This cancellation of stock
options complies with relevant laws and regulations, the Articles of Association of Hangzhou Robam Appliances Co., Ltd., and the
provisions of the Incentive Plan (Draft), etc. The stock options to be cancelled this time have not been exercised, and the
cancellation will not have any impact on the Company's capital stock. The capital stock structure remains unchanged.
directors expressed their independent opinions on and approved the matters related to the Company’s 2023 Stock Option Incentive
Plan. The 14th meeting of the 5th Board of Supervisors of the Company deliberated and adopted the above-mentioned proposals
and expressed its concurring opinion. The Company disclosed the above matters on April 26, 2023.
option incentive plan. On May 9, 2023, the Company’s Board of Supervisors published the Review Opinions of the Board of
Supervisors on the List of Incentive Targets of the Stock Option Incentive Plan in 2023 and Explanation on the Publicity. On the
same day, the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders and
Incentive Targets of the Stock Option Incentive Plan in 2023.
Proposal on 2023 Stock Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals. The Plan was
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
approved by the Company's 2022 Annual General Meeting of Shareholders and the Board of Directors was authorized to
determine the stock option grant date on which stock option will be granted to the incentive targets when they are eligible and all
matters relevant to the grant of stock option shall be handled.
Company deliberated and approved the Proposal on the Granting Stock Options to Incentive Targets. The Board of Supervisors
verified the list of incentive targets again and expressed its agreement, and the independent directors of the Company expressed
their independent opinion on it.
targets for this stock option incentive plan was 325, and the total number of stock options granted was 5.52 million, accounting for
approximately 0.58% of the current total capital stock of the Company.
□Applicable ?Not applicable
□Applicable ?Not applicable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 5 Environmental and Social Responsibilities
I. Major Environmental Issues
Whether the listed company and its subsidiaries are the key pollution-discharging units announced by the environmental protection
authorities.
□Yes ?No
Administrative penalties due to environmental issues during the reporting period.
Impact on the
The Company's
Name of company Reasons for production and
Violations Penalties rectification
or subsidiary penalties operation of the
measures
listed company
None None None None None None
Refer to other environmental information disclosed by key pollutant discharging units.
None
Measures taken to reduce carbon emissions during the reporting period and their effects
□Applicable ?Not applicable
Reasons for not disclosing other environmental information
None
II. Social Responsibility
The Company discloses its annual CSR Report or ESG Report, as detailed in the Robam Appliances 2022 ESG Report disclosed
on www.cninfo.com.cn.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 6 Significant Matters
I. Commitments made by the Company’s actual controllers, shareholders, affiliates,
purchasers and the Company itself and other relevant parties already fulfilled during the
reporting period and not yet fulfilled at the end of the reporting period
□Applicable ?Not applicable
I. There were no commitments made by the Company’s actual controllers, shareholders, affiliates, purchasers and the Company
itself and other relevant parties already fulfilled during the reporting period and not yet fulfilled at the end of the reporting period
II. Non-operating Occupation of Funds of the Listed Company by the Controlling
Shareholder and Other Affiliated Parties
□Applicable ?Not applicable
There was no non-operating occupation of funds of the listed company by the controlling shareholder and other affiliated parties
during the reporting period.
III. Illegal External Guarantee
□Applicable ?Not applicable
There was no illegal external guarantee during the reporting period.
IV. Appointment and Dismissal of Accounting Firm
Whether the semi-annual financial report has been audited
□Yes ?No
The semi-annual financial report of the Company has not been audited.
V. Statements of the Board of Directors and the Board of Supervisors on the “Non-standard
Audit Report” Issued by the Accounting Firm for the Reporting Period
□Applicable ?Not applicable
VI. Statements of the Board of Directors on the “Non-standard Audit Report” for the Last
Year
□Applicable ?Not applicable
VII. Matters Related to Bankruptcy Reorganization
□Applicable ?Not applicable
The Company did not have any matters related to bankruptcy reorganization during the reporting period.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
VIII. Litigation Matters
Material litigation and arbitration
□Applicable ?Not applicable
The Company had no major litigation and arbitration during the reporting period.
Other litigation matters
□Applicable ?Not applicable
IX. Punishment and Rectification
□Applicable ?Not applicable
X. Integrity Conditions of the Company and its Controlling Shareholders
□Applicable ?Not applicable
XI. Major Connected Transactions
□Applicable ?Not applicable
The Company had no connected transactions concerning daily operations during the reporting period.
□Applicable ?Not applicable
The Company had no connected transactions related to the acquisition or sales of assets or equity during the reporting period.
□Applicable ?Not applicable
The Company had no connected transactions related to joint outward investment during the reporting period.
□Applicable ?Not applicable
The Company had no connected transactions on credit and debt during the reporting period.
□Applicable ?Not applicable
There were no deposits, loans, credits or other financial operations between the Company and connected finance companies and
affiliates.
□Applicable ?Not applicable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
There were no deposits, loans, credits or other financial operations between finance companies controlled by the Company and
affiliates.
□Applicable ?Not applicable
There were no other major connected transactions during the reporting period.
XII. Major Contracts and Their Performance
(1) Entrustment
□Applicable ?Not applicable
The Company had no entrustment during the reporting period.
(2) Contracting
□Applicable ?Not applicable
There was no contracting during the reporting period.
(3) Leasing
□Applicable ?Not applicable
There was no leasing during the reporting period.
□Applicable ?Not applicable
The Company had no material guarantee during the reporting period.
?Applicable □Not applicable
Unit: RMB 10,000
Impairment
Fund source of Incurred amount of amount accrued of
financial financial Overdue amount overdue but not
Specific type Unexpired balance
management management not recovered recovered financial
entrusting entrusting management
products
Bank financial
Own funds 66,000 231,560.66 0 0
products
Total 66,000 231,560.66 0 0
The specific situation of high-risk entrusted financial management with large single-item amount or low safety and poor liquidity
□Applicable ?Not applicable
Entrusted financial management is expected to be unable to recover the principal or there are other circumstances that may result
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
in impairment
□Applicable ?Not applicable
□Applicable ?Not applicable
The Company had no other material contracts during the reporting period.
XIII. Explanation of Other Significant Matters
□Applicable ?Not applicable
The Company had no other significant matters that need to be explained during the reporting period.
XIV. Significant Matters of Subsidiaries of the Company
□Applicable ?Not applicable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 7 Changes in Shares and Shareholders
I. Changes in Shares
Unit: share
Before change Change (+. -) After change
Shar
Iss
es
ue
conv
of
erted
Percentage ne Bonus Other Subto Percentage
Quantity from Quantity
(%) w shares s tal (%)
capit
sh
al
ar
reser
es
ve
I. Shares subject to sales
restrictions
state
state-owned legal persons
domestic investors
Including: shares held
by domestic legal persons
Including: shares held
by domestic natural persons
overseas investors
Including: shares held
by overseas legal persons
Shares held by
overseas natural persons
II. Shares without sales
restrictions
foreign shares
shares
III. Total shares 949,024,050 100.00% 949,024,050 100.00%
Reason for share changes
□Applicable ?Not applicable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Approval of changes in shares
□Applicable ?Not applicable
Transfer of ownership of changes in shares
□Applicable ?Not applicable
Progress in the implementation of shares repurchase
□Applicable ?Not applicable
Progress of transferring repurchased shares by means of centralized bidding
□Applicable ?Not applicable
The impact of changes in shareholding on the financial indicators such as basic earnings per share (EPS), diluted EPS, and net
assets per share attributable to common shareholders for the latest year and the latest period.
□Applicable ?Not applicable
Other information deemed necessary by the Company or required to be disclosed by securities regulatory authorities.
□Applicable ?Not applicable
□Applicable ?Not applicable
II. Securities Issuance and Listing
□Applicable ?Not applicable
III. Number of Shareholders of the Company and Their Shareholdings
Unit: share
Total number of common Total number of preferred shareholders
shareholders at the end of 61,265 with the voting rights recovered at the end 0
the reporting period of reporting period
Shareholdings of common shareholders holding more than 5% of the Company’s shares or top 10 common shareholders
Number of Pledged, marked or
Number of Number of
common Change frozen shares
shares shares
Name of Nature of Shareholdi shares held at during the
subject to without
shareholder shareholder ng ratio the end of the reporting
sales sales Status Quantity
reporting period
restrictions restrictions
period
Hangzhou
Domestic
Robam
non-state-
Industrial 49.68% 471,510,000 0 471,510,000
owned
Group Co.,
corporation
Ltd.
Hong Kong
Securities
Overseas
Clearing 6.89% 65,370,004 -23,726,527 65,370,004
corporation
Company
Limited
TEMASEK
FULLERTO Overseas
N ALPHA corporation
PTE LTD
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Domestic
Shen
natural 1.29% 12,240,000 0 12,240,000
Guoying
person
of National
Social Others 0.76% 7,236,200 7,236,200 7,236,200
Security
Fund
of National
Social Others 0.72% 6,822,706 0 6,822,706
Security
Fund
CITIC
Securities
Co., Ltd. -
Social Others 0.71% 6,699,366 -329,700 6,699,366
Security
Fund 1106
Portfolio
Hangzhou Domestic
Jinchuang non-state-
Investment owned
Co., Ltd. corporation
Hangzhou Domestic
Yinchuang non-state-
Investment owned
Co., Ltd. corporation
Domestic
Ren Jianhua natural 0.62% 5,923,150 0 4,442,362 1,480,788
person
Strategic investor or
general legal person who
becomes one of the top 10 None
common shareholders due
to rights issue (if any)
Description of the Mr. Ren Jianhua is the actual controller of the controlling shareholder of the Company- Hangzhou
associated relationship or Robam Industrial Group Co., Ltd., and the shareholder of the Company - Hangzhou Jinchuang
consistent actions of the Investment Co., Ltd.; and the natural person shareholder, Shen Guoying, is his wife. Therefore, there
above shareholders is a possibility that these shareholders will act in concert.
Statements of the above
shareholders on
proxy/trustee voting rights None
and abstention from
voting rights
Special note on the
presence of repurchase
None
accounts among the top
Shareholdings of the top 10 common shareholders not subject to sales restrictions
Type of share
Number of shares without sales restrictions held at the end of the reporting Type
Name of shareholder
period of Quantity
share
Hangzhou Robam Industrial 471,510,000 RMB 471,510,000
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Group Co., Ltd. ordinar
y
shares
RMB
Hong Kong Securities ordinar
Clearing Company Limited y
shares
RMB
TEMASEK FULLERTON ordinar
ALPHA PTE LTD y
shares
RMB
ordinar
Shen Guoying 12,240,000 12,240,000
y
shares
RMB
Social Security Fund y
shares
RMB
Social Security Fund y
shares
RMB
CITIC Securities Co., Ltd. -
ordinar
Social Security Fund 1106 6,699,366 6,699,366
y
Portfolio
shares
RMB
Hangzhou Jinchuang ordinar
Investment Co., Ltd. y
shares
RMB
Hangzhou Yinchuang ordinar
Investment Co., Ltd. y
shares
Industrial and Commercial
RMB
Bank of China Limited -
ordinar
Penghua Quality Selection 5,787,141 5,787,141
y
Mixed Securities Investment
shares
Fund
Description on associated
relationship or consistent
actions among the top 10
common shareholders not
Mr. Ren Jianhua is the actual controller of the controlling shareholder of the Company- Hangzhou
subject to sales
Robam Industrial Group Co., Ltd., and the shareholder of the Company - Hangzhou Jinchuang
restrictions and between
Investment Co., Ltd.; and the natural person shareholder, Shen Guoying, is his wife. Therefore, there
the top 10 common
is a possibility that these shareholders will act in concert.
shareholders not subject to
sales restrictions and the
top 10 common
shareholders
Did any of the top 10 common shareholders and the top 10 common shareholders not subject to sales restrictions of the Company
have any agreed repurchase trading during the reporting period?
□Yes ?No
There was no agreed repurchase trading between the top 10 common shareholders and the top 10 common shareholders not subject
to sales restrictions of the Company during the reporting period.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
IV. Changes in Shares Held by Directors, Supervisors, and Senior Management
□Applicable ?Not applicable
There was no change in the shareholdings of directors, supervisors, and senior management of the Company during the reporting
period. For details, please refer to the Annual Report 2022.
V. Changes in the Controlling Shareholder and the Actual Controller
Changes in the controlling shareholder during the reporting period
□Applicable ?Not applicable
There was no change in the controlling shareholder of the Company during the reporting period.
Changes in the actual controller during the reporting period
□Applicable ?Not applicable
There was no change in the actual controller of the Company during the reporting period.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 8 Preferred Shares
□Applicable ?Not applicable
The Company had no preferred shares during the reporting period.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 9 Bonds
□Applicable ?Not applicable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Chapter 10 Financial Report
I. Audit Report
Whether the semi-annual report has been audited
□Yes ?No
The semi-annual financial report of the Company has not been audited.
II. Financial Statements
The financial statement notes are represented in RMB.
Prepared by: Hangzhou Robam Appliances Co., Ltd.
June 30, 2023
In RMB
Item June 30, 2023 January 1, 2023
Current assets:
Cash and cash equivalents 5,878,791,380.06 5,292,762,670.94
Deposit reservation for balance
Lendings to banks and other financial
institutions
Financial assets held for trading 2,315,606,606.83 2,511,844,508.00
Derivative financial assets
Notes receivable 697,840,910.95 881,773,341.71
Accounts receivable 1,781,653,759.34 1,689,606,828.94
Accounts receivable financing
Prepayments 184,837,219.74 177,500,353.37
Receivable premium
Reinsurance accounts receivable
Provision of cession receivable
Other receivables 104,345,008.35 80,429,057.84
Inc: Interests receivable
Dividends receivable
Redemptory monetary capital for sale
Inventory 1,532,632,739.87 1,610,110,798.10
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 3,657,388.32 334,348.76
Total current assets 12,499,365,013.46 12,244,361,907.66
Non-current assets:
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Loans and advances
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 7,455,321.57 8,718,505.62
Investment in other equity instruments 2,116,023.22 2,116,023.22
Other non-current financial assets
Investment real estate 94,803,614.18 55,887,198.54
Fixed assets 1,585,824,017.21 1,622,235,227.74
Construction in process 463,232,352.92 406,258,146.69
Biological assets for production
Oil & gas assets
Right-of-use assets 16,540,637.28 22,220,144.13
Intangible assets 216,629,731.28 221,356,558.38
Development expenses
Goodwill 60,573,832.56 60,573,832.56
Long-term prepaid expenses 5,150,512.22 5,852,899.90
Deferred income tax assets 375,644,313.06 340,811,345.96
Other non-current assets 49,002,558.75 49,433,497.13
Total non-current assets 2,876,972,914.25 2,795,463,379.87
Total assets 15,376,337,927.71 15,039,825,287.53
Current liabilities:
Short-term borrowings 82,865,891.92 51,723,429.99
Borrowings from the central bank
Borrowings from banks and other
financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payables 795,406,054.79 872,550,306.86
Accounts payable 2,500,293,860.74 2,418,755,167.31
Advance receipts
Contract liabilities 941,928,841.93 959,915,567.03
Financial assets sold for repurchase
Deposits from customers and
interbank
Receivings from vicariously traded
securities
Receivings from vicariously sold
securities
Payroll payable 69,065,454.11 153,942,329.88
Taxes payable 221,499,567.82 152,351,620.58
Other payables 281,333,439.52 281,878,208.25
Inc: Interests payable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Dividends payable
Fees and commissions payable
Dividends payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 112,459,867.60 120,126,501.73
Total current liabilities 5,008,823,591.59 5,016,963,306.84
Non-current liabilities:
Reserves for insurance contracts
Long-term loans
Bonds payable
Inc: Preferred shares
Perpetual bonds
Lease liabilities 14,115,619.44 18,588,966.67
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income 118,988,342.88 123,912,110.43
Deferred income tax liabilities 21,488,962.55 22,107,934.58
Other non-current liabilities
Total non-current liabilities 154,592,924.87 164,609,011.68
Total liabilities 5,163,416,516.46 5,181,572,318.52
Owner’s equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Inc: Preferred shares
Perpetual bonds
Capital reserve 413,471,307.17 409,997,665.58
Less: treasury share 199,995,742.59 199,995,742.59
Other comprehensive income -100,157,634.16 -100,157,634.16
Special reserves
Surplus reserves 474,516,412.50 474,516,412.50
General risk reserves
Undistributed profits 8,556,749,908.27 8,199,079,015.58
Total owners’ equity attributable to the
parent company
Minority equity 119,313,110.06 125,789,202.10
Total owner's equity 10,212,921,411.25 9,858,252,969.01
Total liabilities and owner’s equity 15,376,337,927.71 15,039,825,287.53
Legal representative: Ren Jianhua Person in charge of accounting: Zhang Guofu Head of the accounting department: Zhang Guofu
In RMB
Item June 30, 2023 January 1, 2023
Current assets:
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Cash and cash equivalents 5,642,420,668.83 5,054,810,287.04
Financial assets held for trading 2,310,000,000.00 2,500,000,000.00
Derivative financial assets
Notes receivable 615,413,345.80 879,223,549.33
Accounts receivable 1,766,241,334.83 1,620,543,528.97
Accounts receivable financing
Prepayments 154,560,624.23 167,724,048.79
Other accounts receivable 94,065,660.85 83,900,676.77
Inc: Interests receivable
Dividends receivable 10,200,000.00
Inventory 1,417,140,842.22 1,499,780,747.70
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets
Total current assets 11,999,842,476.76 11,805,982,838.60
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 250,822,992.88 251,769,849.44
Investment in other equity instruments 2,116,023.22 2,116,023.22
Other non-current financial assets
Investment real estate 8,005,690.67 4,426,211.90
Fixed assets 1,388,761,454.25 1,396,227,874.68
Construction in process 463,232,352.92 406,258,146.69
Biological assets for production
Oil & gas assets
Right-of-use assets
Intangible assets 147,633,971.24 149,864,689.61
Development expenses
Goodwill
Long-term prepaid expenses 1,336,731.94 1,486,622.90
Deferred income tax assets 360,600,644.53 323,776,879.25
Other non-current assets 49,002,558.75 49,433,497.13
Total non-current assets 2,671,512,420.40 2,585,359,794.82
Total assets 14,671,354,897.16 14,391,342,633.42
Current liabilities:
Short-term borrowings 6,715,891.92 573,429.99
Financial liabilities held for trading
Derivative financial liabilities
Notes payables 747,796,646.86 810,820,603.91
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Accounts payable 2,294,413,665.55 2,282,866,624.07
Advance receipts
Contract liabilities 852,939,142.65 890,640,445.28
Payroll payable 48,172,777.49 121,417,848.03
Taxes payable 209,660,558.55 130,548,651.54
Other payables 258,096,331.10 254,460,632.28
Inc: Interests payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities 100,679,763.62 109,801,716.95
Total current liabilities 4,518,474,777.74 4,601,129,952.05
Non-current liabilities:
Long-term loans
Bonds payable
Inc: Preferred shares
Perpetual bonds
Lease liabilities
Long-term accounts payable
Long-term payroll payable
Estimated liabilities
Deferred income 82,961,858.88 86,923,728.32
Deferred income tax liabilities 13,387,819.60 13,804,141.19
Other non-current liabilities
Total non-current liabilities 96,349,678.48 100,727,869.51
Total liabilities 4,614,824,456.22 4,701,857,821.56
Owner’s equity:
Capital stock 949,024,050.00 949,024,050.00
Other equity instruments
Inc: Preferred shares
Perpetual bonds
Capital reserve 413,082,217.21 409,608,575.62
Less: treasury share 199,995,742.59 199,995,742.59
Other comprehensive income -100,157,634.16 -100,157,634.16
Special reserves
Surplus reserves 474,516,412.50 474,516,412.50
Undistributed profits 8,520,061,137.98 8,156,489,150.49
Total owner's equity 10,056,530,440.94 9,689,484,811.86
Total liabilities and owner’s equity 14,671,354,897.16 14,391,342,633.42
In RMB
Item Semi-annual 2023 Semi-annual 2022
I. Total operating income 4,934,869,800.15 4,444,310,099.69
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Inc: Operating income 4,934,869,800.15 4,444,310,099.69
Interest income
Earned premium
Fee and commission income
II. Total operating costs 4,072,326,288.42 3,739,161,547.48
Inc: Operating costs 2,372,095,971.50 2,240,019,882.53
Interest expenses
Fee and commission expenses
Surrender value
Net payments for insurance claims
Net allotment of reserves for insurance liabilities
Policy dividend expenditures
Reinsurance expenses
Taxes and surcharges 32,207,971.20 23,760,024.24
Sale expenses 1,360,821,373.41 1,184,704,589.52
Administrative expenses 203,425,816.25 183,583,864.57
R&D expenses 172,734,141.15 169,368,645.53
Financial expense -68,958,985.09 -62,275,458.91
Including: Interest expenses 2,707,272.10 1,018,439.59
Interest income 69,274,034.42 60,042,815.83
Add: other income 70,659,558.76 94,070,746.70
Investment income (“-” for losses) 21,723,618.81 19,168,941.11
Including: Income from investment in joint
-1,263,184.05 -2,947,887.32
ventures and affiliated enterprises
Gains on derecognition of financial assets
measured at amortized cost
Exchange gains (“-” for losses)
Net exposure hedging gains (“-” for losses)
Gains from changes in fair value (“-” for losses)
Losses from credit impairment (“-” for losses) 23,290,586.40 9,024,313.93
Losses from asset impairment (“-” for losses) -3,921,456.14 24,056,013.60
Gains on disposal of assets (“-” for losses) -576,718.41 37,838.75
III. Operating profits (“-” for losses) 973,719,101.15 851,506,406.30
Add: non-operating income 2,803,959.50 2,696,007.72
Less: non-operating expenditure 1,449,874.49 1,558,155.13
IV. Total profits (“-” for total losses) 975,073,186.16 852,644,258.89
Less: income tax expenses 151,830,927.51 131,172,418.86
V. Net profits (“-” for losses) 823,242,258.65 721,471,840.03
(I) By operational sustainability
losses)
losses)
(II) By ownership
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
company (“-” for net losses)
-6,476,092.04 -2,077,541.22
losses)
VI. After-tax net amount of other comprehensive income
After-tax net amount of other comprehensive income
attributable to the owners of parent company
(I) Other comprehensive income that cannot be
reclassified into gains and losses
transferred to gains or losses under the equity method
equity instruments
Company
(II) Other comprehensive income which will be
reclassified into gains and losses
transferred into gains and losses under the equity method
comprehensive income
investments
After-tax net amount of other comprehensive income
attributable to minority shareholders
VII. Total comprehensive income 823,242,258.65 721,471,840.03
Total comprehensive income attributable to owners of the
parent company
Total comprehensive income attributable to minority
-6,476,092.04 -2,077,541.22
shareholders
VIII. Earnings per share (EPS):
(I) Basic EPS 0.87 0.76
(II) Diluted EPS 0.87 0.76
Legal representative: Ren Jianhua Person in charge of accounting: Zhang Guofu Head of the accounting department: Zhang Guofu
In RMB
Item The first half of 2023 The first half of 2022
I. Operating income 4,490,148,776.21 4,159,599,550.58
Less: Operating costs 2,272,924,581.00 2,146,921,987.07
Taxes and surcharges 26,445,659.50 21,169,789.36
Sale expenses 1,071,915,930.73 1,053,210,272.02
Administrative expenses 139,991,185.53 130,121,271.69
R&D expenses 167,969,738.37 161,720,456.56
Financial expense -69,761,406.60 -61,053,558.14
Including: Interest expenses 646,283.95 714,893.28
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Interest income 67,688,700.69 58,189,221.15
Add: other income 61,866,650.16 86,160,552.68
Investment income (“-” for losses) 21,795,614.09 17,639,080.72
Including: Income from investment in joint ventures
-1,019,723.65 -2,947,887.32
and affiliated enterprises
Gains on derecognition of financial assets
measured at amortized cost (“-” for losses)
Net exposure hedging gains (“-” for losses)
Gains from changes in fair value (“-” for losses)
Losses from credit impairment (“-” for losses) 22,393,985.99 11,220,864.57
Losses from asset impairment (“-” for losses) -3,921,456.14 24,056,013.60
Gains on disposal of assets (“-” for losses) -607,881.96 -134,264.41
II. Operating profits (“-” for losses) 982,189,999.82 846,451,579.18
Add: non-operating income 2,738,086.37 2,622,330.74
Less: non-operating expenditure 1,067,871.65 1,188,024.98
III. Total profits (“-” for total losses) 983,860,214.54 847,885,884.94
Less: income tax expenses 148,240,769.05 127,513,732.18
IV. Net profits (“-” for net losses) 835,619,445.49 720,372,152.76
(I) Net profits from going concern (“-” for net losses)
(II) Net profits from discontinued operations (“-” for net
losses)
V. After-tax net amount of other comprehensive income
(I) Other comprehensive income that cannot be
reclassified into gains and losses
transferred to gains or losses under the equity method
equity instruments
Company
(II) Other comprehensive income which will be
reclassified into gains and losses
transferred into gains and losses under the equity method
comprehensive income
investments
VI. Total comprehensive income 835,619,445.49 720,372,152.76
VII. EPS:
(I) Basic EPS
(II) Diluted EPS
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
In RMB
Item The first half of 2023 The first half of 2022
I. Cash flow from operating activities:
Cash received for the sale of goods
and rendering of services
Net increase in clients’ deposits and
deposits from banks and other financial
institutions
Net increase in borrowings from the
central bank
Net increase in borrowings from other
financial institutions
Cash received from receiving
insurance premium of the original
insurance contract
Net cash from receiving reinsurance
premium
Net increase in deposits and
investment of insured persons
Cash received from interests, fees and
commissions
Net increase in borrowed funds
Net increase in repurchase business
funds
Net cash received from vicariously
traded securities
Refunds of taxes 9,479,183.31 29,520,918.02
Other cash received related to
operating activities
Subtotal of cash inflow from operating
activities
Cash paid for purchased products and
received services
Net increase in loans and advances to
customers
Net increase in deposits with the
central bank and other financial
institutions
Cash paid for claims of original
insurance contract
Net increase in lending funds
Cash paid for interests, fees and
commissions
Cash paid for policy dividends
Cash paid to and on behalf of
employees
Cash paid for taxes 432,835,037.24 408,649,175.45
Cash paid related to other operating
activities
Subtotal of cash outflow from operating 4,762,091,828.28 4,702,529,828.15
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
activities
Net cash flow from operating activities 959,732,853.23 322,855,122.33
II. Cash flow from investment activities:
Cash received from return of
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other 156,960.00 1,030,970.40
long-term assets
Net cash received from disposal of
subsidiaries and other business entities
Cash received related to other
investment activities
Subtotal of cash inflow from investment
activities
Cash paid for purchase and
construction of fixed assets, intangible 156,402,668.03 269,416,076.84
assets and other long-term assets
Cash paid to investments 660,000,000.00 923,500,000.00
Net increase in pledged loans
Net cash from subsidiaries and other
operating entities
Cash paid related to other investment
activities
Subtotal of cash outflow from investment
activities
Net cash flow from investment activities 63,023,246.17 -275,734,087.51
III. Cash flow from financing activities:
Cash from acquiring investments 25,000,000.00
Including: Cash received by
subsidiaries from investments of 11,000,000.00
minority shareholders
Cash from acquiring debts 38,500,000.00 17,000,000.00
Other cashes received in relation to
financing activities
Subtotal of cash inflow from financing
activities
Cash paid for repayments of debts 13,500,000.00 3,500,000.00
Cash paid for distribution of
dividends, profits or interest expenses
Including: Dividends or profits paid by
subsidiaries to minority shareholders
Other cash paid in relation to
financing activities
Subtotal of cash outflow from financing
activities
Net cash flow from financing activities -443,777,479.65 -443,071,536.06
IV. Effect of change in exchange rate on
cash and cash equivalents
V. Net increase in cash and cash
equivalents
Add: Opening balance of cash and
cash equivalents
VI. Ending balance of cash and cash
equivalents
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
In RMB
Item Semi-annual 2023 Semi-annual 2022
I. Cash flow from operating activities:
Cash received for the sale of goods
and rendering of services
Refunds of taxes 9,453,997.74 23,286,694.84
Cash received related to other
operating activities
Subtotal of cash inflow from operating
activities
Cash paid for purchased products and
received services
Cash paid to and on behalf of
employees
Cash paid for taxes 376,468,624.51 377,718,507.95
Cash paid related to other operating
activities
Subtotal of cash outflow from operating
activities
Net cash flow from operating activities 953,109,994.63 378,317,090.31
II. Cash flow from investment activities:
Cash received from return of
investments
Cash received from return on
investments
Net cash received from disposal of
fixed assets, intangible assets and other 117,000.00 509,970.40
long-term assets
Net cash received from disposal of
subsidiaries and other business entities
Cash received related to other
investment activities
Subtotal of cash inflow from investment
activities
Cash paid for purchase and
construction of fixed assets, intangible 133,509,231.58 227,459,776.46
assets and other long-term assets
Cash paid to investments 660,000,000.00 850,000,000.00
Net cash from subsidiaries and other
operating entities
Cash paid related to other investment
activities
Subtotal of cash outflow from investment
activities
Net cash flow from investment activities 89,657,068.42 -255,273,637.97
III. Cash flow from financing activities:
Cash from acquiring investments
Cash from acquiring debts
Other cashes received in relation to
financing activities
Subtotal of cash inflow from financing
activities
Cash paid for repayments of debts
Cash paid for distribution of
dividends, profits or interest expenses
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Other cash paid in relation to
financing activities
Subtotal of cash outflow from financing
activities
Net cash flow from financing activities -465,565,279.12 -474,550,909.26
IV. Effect of change in exchange rate on
cash and cash equivalents
V. Net increase in cash and cash
equivalents
Add: Opening balance of cash and
cash equivalents
VI. Ending balance of cash and cash
equivalents
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Current amount
In RMB
The first half of 2023
Owners’ equity attributable to the parent company
Item Other equity instruments General
Other Special Minority Total owner’s
Capita Less: Treasury Surplus risk Undistributed Other interests
Capital reserve comprehensive reserve Subtotal equity
Preferred Perpetua Other
l stock share reserves reserve profits s
shares l bonds s income s
s
I. Ending -
balance of last 100,157,634.1 9,732,463,766.91 9,858,252,969.01
year 6
Add:
Changes in
accounting
policies
Corre
ction of errors
of the previous
period
Busin
ess
combination
under common
control
Other
s
II. Beginning -
balance of this 100,157,634.1 9,732,463,766.91 9,858,252,969.01
year 6
III. Changes in
current period 3,473,641.59 357,670,892.69 361,144,534.28 -6,476,092.04 354,668,442.24
(“-” for
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
decrease)
(I) Total
comprehensive 829,718,350.69 829,718,350.69 -6,476,092.04 823,242,258.65
income
(II) Capital
invested and
decreased by
the owners
shares invested
by the owners
invested by
holders of other
equity
instruments
share-based
payments 3,473,641.59 3,473,641.59 3,473,641.59
recognized in
owners’ equity
(III) Profit
-472,047,458.00 -472,047,458.00 -472,047,458.00
distribution
of surplus
reserve
Appropriation
of general risk
reserve
n to owners (or -472,047,458.00 -472,047,458.00 -472,047,458.00
shareholders)
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(IV) Internal
carry-forward
of owners’
equity
reserve
converted into
capital (or
capital stock)
reserve
converted into
capital (or
capital stock)
reserves
making up for
losses
defined benefit
plans carried
forward to
retained
earnings
comprehensive
income carried
forward to
retained
earnings
(V) Special
reserve
in current
period
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
current period
(VI) Others
IV. Ending -
balance of 100,157,634.1
current period 6
Amount of last year
In RMB
The first half of 2022
Owners’ equity attributable to the parent company
Item Other equity instruments General
Other Special Minority Total owner’s
Less: Treasury Surplus risk Undistributed Other
Capital stock Capital reserve comprehensive reserve Subtotal interests equity
Preferre Perpetua Other
share reserves reserve profits s
d shares l bonds s income s
s
I. Ending -
balance of last 100,157,634.1
year 6
Add:
Changes in
accounting
policies
Corre
ction of errors
of the previous
period
Busin
ess
combination
under common
control
Other
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
s
II. Beginning -
balance of this 100,157,634.1
year 6
III. Changes in
current period
(“-” for
decrease)
(I) Total
comprehensive 723,549,381.25 723,549,381.25 -2,077,541.22 721,471,840.03
income
(II) Capital
invested and
decreased by
the owners
shares invested 11,000,000.00 11,000,000.00
by the owners
invested by
holders of other
equity
instruments
share-based
payments 3,998,366.27 3,998,366.27 3,998,366.27
recognized in
owners’ equity
(III) Profit
-472,047,458.00 -472,047,458.00 -4,000,000.00 -476,047,458.00
distribution
of surplus
reserve
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Appropriation
of general risk
reserve
n to owners (or -472,047,458.00 -472,047,458.00 -4,000,000.00 -476,047,458.00
shareholders)
(IV) Internal
carry-forward
of owners’
equity
reserve
converted into
capital (or
capital stock)
reserve
converted into
capital (or
capital stock)
reserves
making up for
losses
defined benefit
plans carried
forward to
retained
earnings
comprehensive
income carried
forward to
retained
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
earnings
(V) Special
reserve
in current
period
current period
(VI) Others
IV. Ending -
balance of 100,157,634.1
current period 6
Current amount
In RMB
The first half of 2023
Other equity instruments Other
Item Less: Treasury Special Surplus Undistributed Total owner’s
Capital stock Preferred Perpetual Capital reserve comprehensive Others
Others share reserves reserves profits equity
shares bonds income
I. Ending balance of last year 949,024,050.00 409,608,575.62 199,995,742.59 474,516,412.50 8,156,489,150.49 9,689,484,811.86
Add: Changes in
accounting policies
Correction of
errors of the previous period
Others
II. Beginning balance of this 949,024,050.00 409,608,575.62 199,995,742.59 474,516,412.50 8,156,489,150.49 9,689,484,811.86
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
year
III. Changes in current
period (“-” for decrease)
(I) Total comprehensive
income
(II) Capital invested and
decreased by the owners
by the owners
holders of other equity
instruments
payments recognized in 3,473,641.59 3,473,641.59
owners’ equity
(III) Profit distribution -472,047,458.00 -472,047,458.00
reserve
-472,047,458.00 -472,047,458.00
shareholders)
(IV) Internal carry-forward
of owners’ equity
into capital (or capital stock)
into capital (or capital stock)
up for losses
benefit plans carried forward
to retained earnings
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
income carried forward to
retained earnings
(V) Special reserve
period
(VI) Others
IV. Ending balance of -
current period 100,157,634.16
Amount of last year
In RMB
The first half of 2022
Other equity instruments Other
Item Less: Treasury Special Surplus Undistributed Total owner’s
Capital stock Preferred Perpetual Capital reserve comprehensive Others
Others share reserves reserves profits equity
shares bonds income
I. Ending balance of last year 949,024,050.00 404,873,115.14 199,995,742.59 474,516,412.50 6,971,309,836.02 8,499,570,036.91
Plus: Changes in
accounting policies
Correction of
errors of the previous period
Others
II. Beginning balance of this 949,024,050.00 404,873,115.14 199,995,742.59 - 474,516,412.50 6,971,309,836.02 8,499,570,036.91
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
year 100,157,634.16
III. Change in current period
(“-” for decrease)
(I) Total comprehensive
income
(II) Capital invested and
decreased by the owners
by the owners
holders of other equity
instruments
payments recognized in 3,998,366.27 3,998,366.27
owners’ equity
(III) Profit distribution -472,047,458.00 -472,047,458.00
reserve
-472,047,458.00 -472,047,458.00
shareholders)
(IV) Internal carry-forward
of owners’ equity
into capital (or capital stock)
into capital (or capital stock)
up for losses
benefit plans carried forward
to retained earnings
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
income carried forward to
retained earnings
(V) Special reserve
period
(VI) Others
IV. Ending balance of -
current period 100,157,634.16
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
III. Basic Information of the Company
Hangzhou Robam Appliances Co., Ltd. (hereinafter referred to as ROBAM or the Company) is an
incorporated company established by overall changing Hangzhou Robam Home Appliances Co., Ltd. on
November 7, 2000. Approved by China Securities Regulatory Commission (ZJXK [2010] No.1512) in 2010, the
Company for the first time offered 40 million ordinary shares in RMB to the public on November 23, 2010 (stock
code: 002508), with the par value per share of RMB 1 and the issue price per share of RMB 24.00.
As of June 30, 2023, the total capital stocks of the Company reached 949,024,050 shares, with a registered
capital of RMB 949,024,050. The Company’s unified social credit code is 91330000725252053F; the legal
representative is Ren Jianhua; the registration address is No. 592, Linping Avenue, Yuhang Economic
Development Area, Yuhang District, Hangzhou; and the Headquarters office address is No. 592, Linping Avenue,
Yuhang Economic Development Area, Yuhang District, Hangzhou.
The main business scope is: manufacturing of household appliances; research and development of
kitchenware, sanitary ware and daily necessities; wholesale of kitchenware, sanitary ware and daily necessities;
sales of daily glass products; sales of household appliances; installation services for household appliances;
research and development of household appliances; sales of household products; sales of daily necessities;
manufacturing of wooden daily products; retail of daily household appliances; repair of daily electrical appliances;
sales of electric heating food processing equipment; wholesale of daily necessities; technical services, technical
development, technical consulting, technical exchange, technology transfer, technology promotion; sales of non -
electric household appliances; manufacturing of non-electric household appliances; production of gas appliances;
sales of refrigeration and air conditioning equipment; manufacturing of refrigeration and air conditioning
equipment; development of basic artificial intelligence software; manufacturing of smart household consumption
devices; sales of artificial intelligence hardware; manufacturing of comme rcial, catering, and service-specific
equipment; sales of commercial, catering, and service-specific equipment; import and export of goods;
manufacturing of environmental protection-specific equipment; sales of environmental protection-specific
equipment (except for items that require approval according to law, the Company is authorized to carry out
business activities independently with the business license). Manufacturing of disinfection devices; manufacturing
of electric heating food processing equipment (items that require approval according to law can only be operated
after approval by relevant departments, and the specific business items shall be subject to the approval results).
The Company is a manufacturing company, with major businesses covering re search & development,
production, sales and comprehensive services of kitchen appliances. Its main products include range hoods, gas
stoves, disinfection cabinets, steam ovens, baking ovens, dishwashers, water purifiers, microwave ovens,
integrated stoves, and purification tanks.
The consolidated financial statements of the Company cover ten subsidiaries, including Beijing Robam Electric
Appliance Sales Co., Ltd., Shanghai Robam Appliances Sales Co., Ltd., Hangzhou MingQi Electric Co., Ltd., De
Dietrich Household Appliances Trading (Shanghai) Co., Ltd., Shengzhou Kinde Intelligent Kitchen Appliances
Co., Ltd., Hangzhou Robam Fuchuang Investment Management Co., Ltd., Zhejiang Cookingfuture Technology
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Co., Ltd., Hangzhou Jinhe Electric Appliances Co., Ltd., Robam Appliances Holding (HK) Co., Ltd. and Robam
International (HK) Trading Co., Ltd. Compared to the previous year, Robam Appliances Holding (HK) Co., Ltd.
and Robam International (HK) Trading Co., Ltd. were newly established within the scope of consolida tion of the
Company during the current period.
IV. Basis for Preparation of Financial Statements
The financial statements of the Company are prepared on a going concern basis, and in light of the
Company’s actual transactions and events, in accordance with the Accounting Standards for Business Enterprises
promulgated by the Ministry of Finance of China and relevant provisions, as well as the accounting policies and
estimates stated in the section of "Significant Accounting Policies and Estimates" herein.
After taking into account of factors such as macro policy risks, market management risks, and the current and
long-term profitability, solvency, and financial flexibility of the Company, as well as the intention of the
management to change the operation policies, the management of the Company believes that there are no matters
affecting the Company’s going concern within 12 months from the end of the reporting period onwards.
V. Significant Accounting Policies and Estimates
Specific accounting policies and estimates:
The specific accounting policies and estimates prepared by the Company a ccording to its actual production
and operation include the operating cycle, the recognition and measurement of accounts receivable and bad debts,
measurement of inventory delivered, fixed assets classification as well as depreciation methods, invisible as set
amortization, conditions for the capitalization of R&D expenses, and revenue recognition and measurement.
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises, and truthfully and completely reflect the financial status, business results,
cash flow and other relevant information of the Company.
The Company’s accounting period starts on January 1 and ends on December 31 on the Gregorian calendar.
The normal operating cycle of the Company shall be one year (12 months).
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
The Company adopts RMB as the bookkeeping base currency.
The assets and liabilities acquired by the Company as the combining party in a business combination under
common control shall be measured at the book value of the combined pa rty in the final controller’s consolidated
statements on the combination date. The capital reserve shall be adjusted against the difference between the book
value of the net assets acquired by the combining party and the book value of the combination consi deration paid
by it. If the capital reserve is insufficient to offset the difference, the retained earnings shall be adjusted.
The identifiable assets, liabilities and contingent liabilities acquired from the acquiree in a business
combination not under common control shall be measured at fair value on the acquisition date. The combination
cost is the sum of the fair values of cash or non-cash assets paid, liabilities issued or undertaken, equity securities
issued, among others, by the Company for the purpose of taking control over the acquiree on the acquisition date
and all directly related expenses incurred during the business combination (in case of business combination
accomplished through multiple transactions step by step, the combination cost is the sum of the cost of every
single transaction). If the combination cost is greater than the fair value share of the acquiree’s identifiable net
assets acquired from the acquiree in the combination, the case is recognized as goodwill. Where the combination
cost is less than the fair value share of the identifiable net assets acquired from the acquiree, the fair values of the
identifiable assets, debts and contingent liabilities acquired in the combination and those of non -cash assets
subject to combination consideration or issued equity securities shall be rechecked first, and then in case the
combination cost is less than the fair value shares of the identifiable net assets acquired from the acquiree, the
difference shall be included in the non-operating income in the period of the combination.
All subsidiaries under the control of the Company are included into the consolidated financial statements.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies and
accounting period of the Company when preparing the consolidated financial statements, where the accounting
policies and accounting periods are inconsistent between the Company and its subsidiaries.
All major internal transactions, inter-company balances, and unrealized profits with the scope of
consolidation shall be offset when preparing consolidated financial statements. The portion of owner’s equity of
subsidiaries not held by the parent company and net current profit & loss, other comprehensive incomes and the
portion of total comprehensive incomes belonging to minority equity are presented under “minority equity,
minority interest income, other comprehensive incomes attributable to minority shareholders and total
comprehensive incomes attributable to minority shareholders, respectively”.
For a subsidiary acquired from a business combination under common control, its operating results and cash
flows are included into the consolidated financial statements sinc e the beginning of the consolidation year. When
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
the comparable consolidated financial statements are being prepared, relevant items in the financial statements of
the last year are adjusted with the stated party formed after merging deemed to exist from th e time of the ultimate
controlling party starting to control.
For a subsidiary acquired through business combinations not under the same control, its operating results and
cash flows shall be included into the consolidated financial statement since the dat e when the Company obtains
control. When preparing the consolidated financial statements, the subsidiary's financial statements shall be
adjusted on basis of the fair value of all identifiable assets, liabilities and contingent liabilities ascertained on t he
purchasing date.
For equity interests in an investee not under common control realized by two or more transactions, which
finally bring about the business combination, equity interests in the investee before the acquisition date shall be
re-measured at fair value on the acquisition date and the balance between the fair value and the book value shall
be included in the investment gains for the current period when the consolidated statements are prepared. If the
related acquiree’s equity held before the acquiring date contains other comprehensive income and the other
changes of owner’s equity except for net profits and losses, other comprehensive income and profit distributions,
it shall be transferred to investment gains or losses on the date of acquisitio n, excluding the other comprehensive
income derived from changes of net liabilities or net assets due to re -measurement on defined benefit plan by the
investee.
Without losing any control right, the Company has partially disposed the long -term equity investment in the
subsidiary. In the consolidated financial statement, according to the difference between the disposal prices of part
of the equity investment in the subsidiary and net assets of the subsidiary attributed to the Company as a result of
disposal of long-term equity investment continuously calculated from the purchase date or consolidation date in
the subsidiary, capital premium or stock premium is adjusted, where the capital surplus is not sufficient to be
offset, they are adjusted to the retained earnings.
Where the Company loses the controlling right of the invested party for such reason as disposing partial
equity investment, the remaining equity is re-measured as per the fair value of such equity on the day of losing
controlling right when preparing the consolidated financial statements. The balance from the sum of the
consideration obtained upon the disposal of equity and the fair value of the remaining equity less the appropriable
share of the net asset of the former subsidiaries calculated as per the former shareholding proportion from the
purchase day or merging day is included in the investment income for the period when the right of control is lost
and the goodwill is deducted. Other comprehensive incomes related to former equity investment in subsidiaries
shall be recognized as current investment profits & losses upon losing controls.
The joint arrangement of the Company includes the joint venture.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
The Company, serving as one part of the joint venture, shall, in accordance with the provisions of the
Accounting Standards for Business Enterprises No. 2 Long-term Equity Investments, conduct accounting
treatment of the investment of the joint venture.
Cash presented in the Company’s cash flow statement refers to cash on hand and deposits that are available
for payment at any time. Cash equivalents presented in the cash flow statement refer to short -term investments
(no more than three months) with high liquidity and that are readily convertible to known amounts of cash and
subject to an insignificant risk of changes in value.
? Foreign currency transactions
The Company translates the foreign-currency amount of foreign-currency transactions into an RMB amount
based on the spot exchange rate applicable on the transaction date. On the balance sheet date, the monetary items
in foreign currencies shall be converted at the spot rate on the said balance sheet date. The conversion differences
arising therefrom, except the exchange balance arising from the foreign currency borrowings special for
acquisition or production of qualifying assets which shall be processed according to the capitalization principle,
shall be directly included in the current profit or loss. The foreign currency non -monetary items measured at fair
value shall be converted according to the spot rate of the date when the fair value is confirmed. If the difference
between the converted amount of booking base currency and the original amount of booking base currency
belongs to the foreign currency non-monetary item available for sale of financial assets, such difference shall be
included in the capital reserve. If such difference belongs to the foreign currency non -monetary item which is
measured at fair value and whose change is included into the current profits and losses, it shall be included into
current profits and losses. The foreign currency non-monetary items measured by historical cost shall be still
translated according to the spot rate on the transaction date, while RMB amount remains unchanged.
? Translation of foreign currency financial statements
Assets and liabilities items in the balance sheets of foreign operations are translated into RMB using the spot
exchange rate at the balance sheet date, while the shareholders’ equity items, except for the "undistributed profit
items," are translated into RMB using the spot exchange rate at the date of transaction. The income and expense
items in the income statements of overseas operations are translated at the exchange rate approximate to the spot
rate at the date of transaction. The difference arising from the above translation is pre sented separately under
other comprehensive income. For foreign currency monetary items that materially constitute overseas net
investment in overseas operations, exchange differences arising from changes in exchange rates, when the
consolidated financial statements are prepared, are also separately presented as other comprehensive income
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
During the disposal of an overseas operation, other comprehensive incomes related to the overseas operation are
transferred in proportion into the disposal of current profits and losses.
The foreign currency cash flow and the cash flow of overseas subsidiaries shall be converted using the exchange
rate approximate to the spot rate of the transaction date of the cash flow. The effect of exchange rate changes on
cash is presented separately in the cash flow statement.
The Company shall recognize a financial asset or a financial liability when it becomes a party to a financial
instrument contract.
? Financial assets
Classification, recognition basis and measurement method of financial assets
Based on the business model for management of financial assets and the contractual cash flow characteristics
of financial assets, the Company classifies the financial assets into three types: 1) the financial asset m easured at
amortized cost; 2) the financial asset measured at the fair value with its changes included into other
comprehensive incomes; and 3) and the financial asset measured at the fair value with its changes included into
current profits or losses.
The financial assets meeting all of the following conditions can be classified as those measured at amortized
cost by the Company: ① the Company adopts the business management mode of financial assets for the purpose
of collecting contractual cash flow. ② In accordance with the contract terms of the financial assets, the cash flow
generated at the specific date is only the payment of the principal and the interest on the basis of the outstanding
principal amount. Such financial assets are initially measured at their fair values, with related transaction costs
included into the amount of initial recognition, and subsequent measurement conducted with the amortized cost.
Apart from those designated as hedged items, the difference between the initial amount amortiz ed with the
effective interest method and the amount due, profits or losses incurred upon amortization, impairment, exchange
profits and losses and derecognition shall be included into current profits and losses.
Where the following conditions are reached at the same time, the financial assets can be classified by the
Company as those measured at fair value with the changes included into other comprehensive income: ① the
Company adopts the business management mode of the financial assets for the purpose of collecting contractual
cash flow and selling the financial assets. ② In accordance with the contract terms of the financial assets, the
cash flow generated at the specific date is only the payment of the principal and the interest on the basis of the
outstanding principal amount. Such financial assets are initially measured at their fair values, with related
transaction costs included into the amount of initial recognition. Apart from those designated as the hedged items,
profits or losses incurred by such financial assets shall be included into the comprehensive incomes, except for
credit impairment losses or gains, exchange profits and losses and the interests calculated as per the actual interest
rate for such financial assets. Upon derecognition of the financial assets, the accumulated gains or losses
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
previously recorded in other comprehensive incomes shall be transferred out of such other comprehensive
incomes and included into the current profits and losses.
The interest income is recognized by the Company using the effective interest method. The interest income
is determined by multiplying the book balance of financial assets by the effective interest rate, except for
conditions below: ① For the financial assets purchased by or originating from the Company with credit
impairment, since initial confirmation, the interest income shall be determined as per the amortized cost of the
financial asset and the effect interest rate subject to credit adjustment. ② The financial assets purchased by or
originating from the Company with no credit impairment but having credit impairment during the follow -up
period shall be subject to interest income calculation based on the amortized cost and actual interest rate of the
financial assets during the follow-up period by the Company.
The non-trading equity instrument is designated by the Company as the financial asset which is measured at
its fair value with changes included into current profits and losses. The designation shall not be canceled once it is
made. The non-trading equity instrument investment, designed by the Company to be measured at the fair value
with their changes included into other comprehensive incomes, is initially measured at fair value, with related
transaction cost included into the amount of initial confirmation. Except for the obtained dividends (excluding
those of the recovered investment cost), which are included into current profits and losses, other related profits
and losses (including exchange profits and losses) are completely included into other comprehensive incomes and
will not then be converted into current profits and losses. Upon derecognition, the accumulated gains or losses
previously included into other comprehensive incomes are transferred from other comprehensive incomes and
included into retained earnings.
Financial assets other than those measured at amortized cost and those measured at fair value with changes
recognized in other comprehensive income. Such financial assets are initially measured at their fair values, with
related transaction costs directly included into the current profits and losses. Such financial assets are initially
measured at their fair values, with related transaction costs directly included into the current profits and losses.
Profits or losses of such financial assets shall be included in the current profits and losses.
The financial asset formed by the contingent consideration confirmed during business combination not under
the same control are classified as those measured by its fair value by the Company, with changes included into
current profits and losses.
Recognition basis and measurement method for transfer of financial assets
Financial assets meeting one of the following conditions shall be derecognized by t he Company: ① the
contractual right to collect the cash flow of the financial asset is terminated. ② The financial assets have been
transferred by the Company, and almost all risks and rewards associated with the ownership of the financial asset
are transferred. ③ The financial assets have been transferred, and the Company had neither transferred nor
retained almost all risks and rewards associated with the ownership of the financial assets, but given up the
control over the financial assets.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
For financial asset that is entirely transferred and meets the conditions of de-recognition, the difference
between the book value of financial asset transferred and the sum of consideration received from such transfer and
the accumulated changes in fair value, directly included into other comprehensive income and corresponding to
the derecognized amount (in accordance with the contract terms of the financial assets involved in such transfer,
the cash flow generated at the specific date is only the payment of the princip al and the interest on the basis of the
outstanding principal amount), is included into the current profits and losses.
For financial asset that is partially transferred and meets the conditions of derecognition, the overall book
value of transferred financial asset is split according to their relative fair value between the part derecognized and
the part not derecognized, and the difference between the following two amounts is recognized in current profits
and losses: the sum of consideration received due to transfer and the amount amortized to the derecognized part
and corresponding to the accumulative change of fair value which is firstly included into the other comprehensive
income (in accordance with the contract terms of the financial assets, the cash flow generated at the specific date
is only the payment of the principal and the interest on the basis of the outstanding principal amount), and the
overall book value of aforesaid financial assets.
? Financial liabilities
Classification, recognition basis and measurement method of financial liabilities
The Company’s financial liabilities are grouped, upon initial recognition, into financial liabilities measured
at fair value, with the changes included in the current profit or loss and other financial li abilities.
Financial liabilities measured at fair value with changes included into the current profits and losses include
trading financial liabilities and financial liabilities designated to be measured as at fair value with changes
included into the current profits and losses upon initial recognition. The net gain or loss arising from changes in
fair value, dividends and interest paid related to such financial liabilities are included into current profits and
losses in which they are incurred.
Other financial liabilities are measured subsequently at the amortized cost by adopting the effective interest
method. Apart from the following items, the Company will classify the financial liabilities as those measured at
amortized cost: ① the financial liabilities measured at fair value with changes included into current profits and
losses include financial liabilities held for trading (including derivatives that are financial liabilities) and financial
liabilities designated to be measured at fair value with changes included into current profits and losses. ② The
financial liabilities formed by transferring the financial assets failed to meet the conditions for derecognition or
formed by continuous involvement of transferred financial assets. ③ The financial guarantee contracts that do not
fall under above ① and ② as well as loan commitments at a rate below the market rate of interest that do not fall
under above ①.
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Where a contingent consideration is recognized by the Company as a financial liability in business
combination not under common control, such financial liability shall be measured at fair value with changes
included into the current profits and losses during accounting treatment.
Derecognition conditions for financial liabilities
When the current obligation of the financial liabilities has been relieved in whole or part, the part of the
financial liabilities or obligations that have been relieved upon confirmation is terminated. If the Company
reaches an agreement with the creditor to replace the existing financial liabilities by undertaking new financial
liabilities and the contract terms of the existing and new liabilities are different in substance, the existing financial
liabilities shall be derecognized while the new liabilities shall be recognized. W here all or part of the contract
terms of the existing financial liabilities are subject to material modification, the Company shall derecognize all
or part of the existing financial liabilities while recognizing the financial liabilities with modified ter ms as new
financial liabilities. The difference between the book value of the terminated part upon confirmation and the
considerations paid is included in the current profit and loss.
Method for determining the fair value of financial assets and financial liabilities
The Company measures the fair value of financial assets and financial liabilities in the main market. If there
is no major market, the Company measures the fair value of financial assets and financial liabilities with most
beneficial price for the market and adopts evaluation techniques with much available data and other information
support that is applicable at that time. Input data for determining fair values has three levels, wherein the first
level is the unadjusted price available for the same asset or liability on the date of evaluation in an active market;
the second level is directly or indirectly observable input data of relevant assets or liabilities apart from input data
of the first level; the third level is unobservable input data of relevant assets or liabilities. The Company gives
priority of using the first-level inputs and takes the third-level inputs as the last. The lowest layer that has
significant impact on the overall fair value evaluation determines which level this fair va lue evaluation result shall
belong to.
Investments in equity instruments of the Company are measured at fair value. However, under certain
circumstances, if recent information needed to determine the fair value is insufficient, or if the estimated amount
of the fair value features an extensive distribution scope and the cost represents the best estimate of the fair value
in that distribution scope, the cost may represent the appropriate estimate on the fair value within that distribution
scope.
? Offsetting financial assets and financial liabilities
Financial assets and liabilities of the Company are presented separately in the balance sheet without
offsetting. However, the net amount resulting from the offsetting between financial assets and financial liabili ties
shall be presented in the balance sheet only if all of the following criteria are met: (1) The Company has the
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
statutory right to set off recognized amounts which is currently enforceable. (2) The Company intends either to
settle on a net basis, or to realize the financial assets and pay off the financial liabilities simultaneously.
? Distinction and relevant treatment methods of financial liabilities and equity instruments
The Company distinguishes between financial liabilities and equity instruments ac cording to the following
principles: (1) Where the Company cannot unconditionally avoid fulfilling certain contractual obligation by
delivering cash or other financial assets, then such contractual obligation is in line with the definition of the
financial liability. Although certain financial instruments do not expressly contain terms and conditions for the
contractual obligation to deliver cash or other financial instruments, the contractual obligation may be indirectly
formed according to other terms and conditions. (2) Where a financial instrument must or is able to be settled by
the Company’s own equity instrument, the Company shall consider whether the Company’s own equity
instrument as the settlement instrument is a substitute of cash or other financi al assets, or the residual interest in
the assets of an entity after deducting all of its liabilities. If it is the first case, the instrument shall be the financia l
liability of the issuer. If it is the latter case, the instrument shall be the equity inst rument of the issuer. Under
some circumstances, the contract of a financial instrument may require that the financial instrument must or is
able to be settled by the Company’s own equity instrument. The amount of contractual right or contractual
obligation equals to the amount of its own equity instrument receivable or payable multiplied by its fair value at
the time of settlement. Whether the amount of such contractual right or obligation is fixed, or varies, wholly or
partially, based on variables other than the market value of the Company’s own equity instrument (such as interest
rates, the price of a commodity or the price of a financial instrument), such contract is classified as financial
liability.
In classifying financial instruments (or components) in the consolidated statements, the Company shall take
into account all the terms and conditions agreed between members of the Company and holders of the financial
instruments. If the Company, as a whole, undertakes the obligation to deliver cash, other fi nancial assets or settle
in other ways that cause the financial instrument to become a financial liability, the instrument shall be classified
as financial liability.
If a financial instrument or any of its components is a financial liability, the relevant interests, dividends,
gains or losses, and gains or losses from redemption or re-financing and so on are included in the current profits
and losses of the Company.
If a financial instrument or its component belongs to an equity instrument, for its issue ( including re-
financing), repurchase, sale or cancellation, the Company will treat it as a change in equity and will not recognize
the change in fair value of equity instruments.
? Impairment of financial instruments
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
The Company, based on expected credit losses, performed impairment accounting and recognized credit
impairment losses on financial assets measured at amortized cost, financial assets classified to be measured at the
fair value with the changes included into other comprehensive incomes as well as f inancial guarantee contracts.
The expected credit loss is a weighted average of credit losses on financial instruments weighted at the risk
of default. Credit loss refers to the difference between all contractual cash flows discounted as per the original
effective interest rate and receivable from the contract and all cash flows expected to be received by the Company,
namely, the present value of a shortage of cash. Among them, financial assets purchased or underlying with credit
impairment of the Company shall be discounted at the financial assets’ effective interest rate after credit
adjustment.
For accounts receivable arising from transactions scoped in ASBE on Revenue not containing significant
financing components, the Company takes the simplified measurement method to measure its l oss provisions
based on the amount of expected credit losses during the entire duration.
For financial assets purchased or underlying with credit impairment, the cumulative change in expected
credit loss during the entire duration since the date of balance sheet date after initial recognition will be
recognized as provision for loss. On each date of balance sheet, the amount of change in expected credit loss
during the entire duration is included into current profits and losses as impairment losses or gains . Even if the
expected credit loss within the entire duration determined on the date of balance sheet is less than the amount of
expected credit loss reflected by estimated cash flow upon initial recognition, any favorable change in expected
credit loss will be recognized as impairment gains.
In addition to other financial assets adopting the aforesaid simplified measurement method or financial
assets purchased or underlying with credit impairment, the Company shall assess whether the credit risk of
relevant financial instruments has increased significantly since the initial recognition on each balance sheet date,
and shall respectively accrue their provision for loss and recognize the expected credit loss and its change:
Stage I, the Company shall measure its loss provisions based on the amount of expected credit losses for
the coming 12 months of such financial instrument and calculate the interest on the basis of book balance
and effective interest rate.
recognition but with no credit impairment and it is in Stage II, the Company shall measur e its loss
provisions based on the amount of the expected credit loss of the financial instrument during the entire
duration and calculate the interest on the basis of book balance and effective interest rate.
is in Stage III, the Company shall measure the loss provisions of the financial instrument based on the
amount of expected credit losses during the entire duration, and calculate the interest a t amortized cost
and effective interest rate.
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Increases or reversals of the provisions for credit losses of the financial instrument are recorded in the
current profits and losses as impairment losses or gains. Except for financial assets classified to be measured at
fair value through other comprehensive income, the book balance of financial assets is deducted with provision
for credit losses. For financial assets classified to be measured at fair value, with the change included in other
comprehensive incomes, the Company shall recognize the provision for credit loss in other comprehensive
incomes, and shall not decrease the book value of such financial assets listed in the balance sheet.
Where the Company has measured the provisions for losses based on the amount of the expected credit loss
over the entire duration of such financial instruments in the prior accounting period, but on the current balance
sheet date, such financial instruments no longer fall into the scope of significantly increased credit ris k since
initial recognition, the Company measures the provisions for the losses of such financial instruments based on the
amount equivalent to the expected credit losses over the coming 12 months on the current balance sheet date, with
resulting carrybacks of provisions for losses included into the current profits and losses as impairment gains.
① Significant increase in credit risk
The Company determines if there is a significant increase in credit risk of financial instruments since initial
recognition by comparing the risks of default of financial instruments on the balance sheet date and the date of
initial recognition based on reasonable and well-grounded forward-looking information available. For the
financial guarantee contract, when the Company applies the regulations on impairment of financial instruments,
the date when the Company becomes the party which makes the irrevocable undertaking is regarded as the date of
initial recognition. The Company will take into account the following factors when it assesses whether the credit
risk is significantly increased: whether the operating results of the debtor has actually changed or is expected to
significantly change or not; whether the regulatory, economic or technical environment where the debtor is
located has significantly and adversely changed or not; whether the value of the collateral as the debt pledge or
the guarantee provided by the third party or credit enhancement quality has significantly changed or not, as these
changes are expected to reduce the economic motives of the debtor to make repayments within the time limits
prescribed in the Contract or to impact the default probability; whether the expected performance or repayment
behavior of the debtor has significantly changed or not; whether the Company has changed its management
method for financial instrument credit or not, etc.
On the balance sheet date, if the Company determines that the financial instrument only carries low credit
risks, then the Company will assume that the credit risks of the financial instrument have not increased
significantly since the initial recognition. If the risk of default on financial instruments is low, the borrower is
highly capable of performing its contractual cash flow obligations in the short term, and even if the economic
situation and operating environment are adversely changed over a long period of time but not necessarily reducing
the borrower’s performance of its contractual cash obligations, then the financial instrument is considered as
having a lower credit risk.
② Credit-impaired financial assets
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In case of one or more events adversely affecting the estimated future cash flows of a financial asset, the
financial asset becomes a financial asset to which a credit impairment has occurred. Evidence of a c redit
impairment on a financial asset includes the following information: serious financial difficulties of the debtor; a
breach of contract by the debtor, such as a default or overdue payment of interest or principle; the creditor, for
economic or contractual considerations related to financial difficulties of the debtor, offers the debtor concessions
that are impossible in any other circumstances; it is probable that the debtor will enter bankruptcy or other
financial reorganization; the disappearance of an active market for that financial asset because of financial
difficulties of the issuer or the debtor; the purchase or origination of a financial asset at a deep discount that
reflects the incurred credit losses.
The credit impairment of financial assets may be caused by the joint effect of the above multiple events, and
may not be caused by individually identifiable events.
③ Determination of expected credit losses
In assessing the expected credit loss, the Company takes reasonable and well -founded information into
consideration about past events, current condition and predictions of future economic status based on the expected
credit loss of single and combined financial evaluation instruments.
The Company divides the financial instruments into different portfolios based on the common credit risk
characteristics. See accounting policies of relevant financial instruments for single evaluation standards and
combined credit risk characteristics.
The Company determines the expected credit losses of financial instruments under the following methods:
For financial assets, the credit loss is calculated as the present value of the difference between the
contractual cash flows to be collected by the Company and cash flows that are expected to be collected.
For the financial guarantee contract, the credit loss is the expected payment made to the contract holder by
the Company to reimburse the contract holder against the credit losses incurred by the contract holder, deducted
by the present value of the differences between the amounts expected to be received by the Company from the
contract holder, debtor or any other party.
For financial assets which have been credit-impaired on the balance sheet date but are not purchased or
underlying with credit impairment, the credit loss is calculated as the difference between the book balance of such
financial assets and present value of anticipated future cash flows discounted at the original effective interest rate.
The Company, based on the acceptor credit risk of the notes receivable as common risk characteristics,
divides the notes receivable into different combinations and determines the accounting estimation policy of
expected credit loss.
Classification of
Basis for determining combination Provision method
combination
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The Company believed that there was no significant credit risk in
Banker’s acceptances The acceptor is a banking financial
the bank acceptance held by the Company and there will be no
combined institution.
significant loss due to the default of the bank.
The acceptor is a non-bank financial The company shall measure the bad-debt provision of receivable
Trade acceptances
institution or enterprise like a finance trade acceptance based on the expected credit loss during the entire
combined
company. duration.
For the accounts receivable arising from transactions regulated by the Accounting Standards for Business
Enterprises No. 14 Revenue Standards (whether or not containing significant financing components) and the lease
accounts receivable regulated by the Accounting Standards for Business Enterprises No. 21 Leasing, the Company
takes the simplified measurement method to measure its loss provisions based on the amount of expected credit
losses during the entire duration.
For accounts receivable, the Company assesses whether the credit risk increases significantly on the basis of
a single financial instrument or a combination of financial instrument s. The Company singly evaluates the credit
risk of accounts receivable with significantly different credit risks and the following characteristics: accounts
receivable in dispute with the other party or involved in litigation and arbitration; accounts rece ivable that there
are obvious indications showing that the debtor is likely to be unable to fulfill the repayment obligation. The
Company cannot obtain sufficient evidence of significant increase in credit risk at the level of single financial
instrument at reasonable cost, but it is feasible to assess whether the credit risk increases significantly on the basis
of the combination of financial instruments. When the assessment is performed on the combination of financial
instruments, the Company can classify the financial instruments based on the common credit risk characteristics.
The Company classifies the accounts receivable into the following combinations based on their credit risk
characteristics:
Classification of combination Basis for determining combination Provision method
Credit loss that accrues accounts Accounts receivable with the same aging have
Expected rates of credit loss
receivable by aging analysis method similar credit risk characteristics
Related parties within the consolidation Funds of subsidiaries within the consolidation scope No expected credit loss under normal
scope of controlling shareholders circumstances
If there is objective evidence showing that the credit impairment of certain account receivable has incurred,
the Company shall singly withdraw the bad debt reserve of accounts receivable and confirm the expected credit
loss.
For accounts receivable with credit loss accrued from accounts receivable by aging analysis method, based
on the actual credit loss of previous years and considering the forward-looking information of the current period,
the accounting estimate policies of the Company for measuring the expected credit loss are as follows:
Aging Expected rates of credit loss
Within 1 year 5.00%
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More than 5 years 100.00%
The Company calculates the expected credit loss of accounts receivable on the balance sheet date. If the
expected credit loss is greater than the carrying amount of the current accounts receivables impairment provision,
the Company will recognize the difference as impairment loss of accounts receivable, debit “credit impairment
loss” and credit “bad debt provision”. Otherwise, the Company will recognize the difference as impairme nt gains
and make opposite accounting records.
For the actual credit losses of the Company, if the relevant accounts receivable s are determined to be
unrecoverable and are approved to be written off, the Company shall debit “bad debt provision” and credit
“accounts receivable” according to the approved write-off amount. If the write-off amount is greater than the
accrued loss provisions, the “credit impairment loss” will be debited according to the difference.
Where the following conditions are reached at the same time, the financial assets can be classified as those
measured at fair value and its change and included into other comprehensive income: the Company adopts the
business management mode of the financial assets for the purpose of collecting contractual cash flow and selling
the financial assets. In accordance with the contract terms of the financial assets, the cash flow generated at the
specific date is only the payment of the principal and the interest on the ba sis of the outstanding principal amount.
The Company transfers the accounts receivable held in the form of discount or endorsement, and such
business is more frequent and involves a large amount of money. Its business management model is, in essence, to
collect and sell contract cash flow. According to the relevant provisions of financial instrument standards, the
accounts receivable is classified into financial assets with changes measured at fair value and included in other
comprehensive income.
Determination and accounting method for expected credit loss of other accounts receivable
The Company divides the process of credit impairment of other accounts receivable into three stages and
adopts different accounting treatment methods for the impairment of other accounts receivable in different stages:
? Credit risk has not increased significantly since initial recognition (Stage I)
For the financial instruments in this stage, the Company shall measure the loss provisions based on th e
expected credit loss in the next 12 months.
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The Company classifies other accounts receivable based on aging as a credit risk characteristic and measure
them on the basis of combination, which is equivalent to the expected credit loss in the next 12 month s.
? Credit risk has increased significantly since initial recognition but has not been impaired (Stage II)
For the financial instruments in this stage, the Company shall measure the loss provisions based on the
expected credit loss during the entire duration.
? Credit impairment after initial recognition (Stage III)
For the financial instruments in this stage, the Company shall measure the loss provisions based on the expected
credit loss during the entire duration.
Inventories of the Company mainly include low-value consumables, raw materials, goods in-process,
merchandise inventory and goods shipped in transit.
The inventories are managed based on perpetual inventory system, and valued at actual cost on acquisition.
Low-value consumables and packaging materials are amortized using one-off amortization method.
Low-value consumables and packaging materials are amortized using one-off amortization method.
Inventory revaluation reserves of merchandise inventories and raw materials are generally ac crued as the excess
of the higher cost of individual inventory over its net realizable value. For raw and auxiliary materials of larger
amount and lower unit price, inventory revaluation reserves shall be accrued based on the category.
Net realizable value of stock goods, work in progress, or held-for-sale materials are determined by their
estimated selling price deducted by estimated selling expenses and related taxes. Net realizable value for material
held for production are determined by the estimated selling price of finished goods deducted by the estimated cost
to completion, selling expenses and the related taxes.
? Recognition method and standard of contract asset
Contract asset refers to the rights of the Company to receive consider ation for goods transferred to the
customer, which depend on other factors except for the lapse of time. Where the Company sells two clearly
distinguished commodities to the customer and has the right to collect the payment because one commodity is
delivered and the payment relies on the delivery of the other commodity, the Company will treat the collection
rights as the contract assets.
? Determination and accounting method for expected credit loss of contract assets
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
For the determination method for expected credit loss of contract assets, please refer to relevant contents in
The Company calculates the expected credit loss of contract assets on the balance sheet date. If the expected
credit loss is greater than the carrying amount of the current impairment provision of contract assets, the
Company will recognize the difference as impairment loss, debit "asset impairment loss" and credit "contract
asset impairment provision". Otherwise, the Company will recognize the difference as impairment gains and make
opposite accounting records.
For the actual credit losses of the Company, if the relevant contract assets are determined to be
unrecoverable and are approved to be written off, the Company shall debit "contract asset impairment provision"
and credit "contract assets" according to the approved write-off amount. If the write-off amount is greater than the
accrued loss provisions, the "asset impairment loss" will be debited according to the difference.
? Method for determining asset amount related to contract cost
The Company’s assets related to the contract cost comprise the contract performance cost and the contract
acquisition cost.
The contract performance cost, which is the cost incurred to perform the contract by the Company, not
covered by the accounting standards for business enterprises of other companies, shall be deemed as one asset if it
meets the conditions below: the cost is directly related to one existing contract or one contract expected to be
acquired and covers direct labor cost, direct material cost, manufacturing cost (or similar cost), the cost clearly
specified to be borne by the customer and other costs incurred by the contract only; the cost increases the
resources available to the Company to fulfill performance duties in the future; the cost is expected to be recovered.
The contract acquisition cost refers to the incremental cost incurred by the Company for the purpose of
securing a contract, which will be recognized in the form of contract acquisition cost as an asset if it is expected
to be recovered. If the amortization period of the assets does not exceed one year, such cost shall be included as
current profit or loss. Incremental cost refers to the cost which will not incur unless a contract is secured by the
Company (e.g. sales commission, etc.). Other costs (such as the travel expense, whether or not the contract will be
acquired, except the incremental cost which can be recovered as expected) incurred the Company for purpose of
acquiring the contract shall be included in the current profit or loss at the time of occurrence, unless those clearly
specified to be borne by the customer.
? Asset amortization related to contract cost
The Company’s assets related to contract costs are amortized on the same basis as revenue recognition of
goods related to the asset and included into the current profits or losses.
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? Asset impairment related to contract cost
When the Company recognizes the impairment loss related to contract cost, the Company shall firstly
recognize the impairment loss of other assets which are recognized as per other account standards for business
enterprises and are related to the contract. Then, if the book value is higher tha n the difference between the
remaining consideration expected to be received for the transfer of the commodity associated with the asset and
the estimated costs to be incurred for the relevant commodity, impairment provision will be made for the excess
portion and recognized as asset impairment loss.
If the factors causing the impairment of prior period change and make the previous difference
between the above-mentioned items higher than the book value of the asset, the withdrew asset
impairment provision shall be reversed and included into the current profits or losses, although the book
value of asset after reversion shall not exceed the book value of the asset at the reversion date under the
condition of not withdrawing the impairment provision.
Long-term equity investment of the Company mainly includes the investment to the subsidiaries, associated
enterprises and joint ventures.
The Company follows the basis to judge the joint control: all the participants or group of par ticipants
collectively control the arrangements, and the policies for activities related to such arrangement must be agreed
by all such participants.
Generally, it constitutes significant influence on an investee if the Company controls 20% (inclusive) or
more (less than 50%) voting shares of the investee directly or indirectly through a subsidiary. Where the Company
controls less than 20% voting shares of the investee directly or indirectly through a subsidiary, significant effects
on the investee shall be judged based on the facts and circumstances in the case that appoint representative to the
board of directors or similar organ of power under the investee, participate the development of financial and
operating policies of the investee, conduct important trading with the investee, dispatch management personnel to
the investee, or provide key technical data to the investee.
The one forming control over the investee is the subsidiary of the Company. For the long -term equity
investment acquired through business combination under the same control, the share of the combined party in the
book value of net assets presented in consolidated financial statements of ultimate controlling party acquired at
the date of combination is recognized as initial investment cost of long-term equity investment. The book value of
net assets for the combined party is negative on the combining date, and the long -term equity investment cost is
determined as zero.
In case that equity of the investee under the same control is obtained t hrough multiple deals step by step to
finally form business combination, for package deals, the Company shall account each deal as a deal to obtain the
control. If it is not a package deal, the share of the book value of combined party's net assets present ed in
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
consolidated financial statements of ultimate controlling party acquired at the date of combination is recognized
as initial investment cost of long-term equity investment. The difference between initial investment cost and the
sum of the book value of long-term equity investment before the combination is realized and the book value of
consideration additionally paid to further acquire shares on the date of combination is adjusted against the capital
surplus; if the capital surplus is not sufficient to be offset, the remaining balance is adjusted against retained
earnings.
For long-term equity investments acquired through business combinations not under common control, the
combined cost is used as the initial investment cost.
In case the equity of the investee not under the same control is obtained through multiple deals step by step
to finally form business combination, for package deals, the Company shall account each deal as a deal to obtain
the control. If it is not a package deal, initial investment cost accounted using cost method will be the sum of the
book value of original equity investment and new investment cost. For equity held before the date of acquisition
and accounted with equity method, other related comprehensive income using equity met hod for accounting shall
not be adjusted, and accounting treatment should be applied to these investments on the same basis as those
adopted by the investee for direct disposal of related assets or liabilities. For equity held before the date of
acquisition and accounted at fair value in the available-for-sale financial assets, the accumulated change in fair
value which is originally included in other comprehensive income shall be transferred to the investment profit or
loss for the current period on the combining date.
Apart from the long-term equity investments acquired through business combination mentioned above, the
long-term equity investments acquired by cash payment is used as the cost of investment based on the purchase
price actually paid. For long-term equity investments obtained by issuing equity securities, the fair value of the
equity securities issued is recorded as the initial investment cost. For long -term equity investments obtained by
exchange of non-monetary assets, the initial investment cost shall be determined in accordance with relevant
provisions in the Accounting Standards for Business Enterprises No. 7 Exchange of Non-Monetary Assets; the
initial investment cost shall be determined in accordance with the relevant provisions of the Accounting Standards
for Business Enterprises No. 12 Debt Restructuring by the long-term equity investment of debt restructuring.
Investment in subsidiaries by the Company shall be calculated by cost method, while investment in joint
ventures and associates by the Company shall be calculated by equity method.
For long-term equity investment calculated by cost method, the cost of long-term equity investment shall be
adjusted when the investment is added or recovered. The cash dividends or profits declared to b e distributed by
the investee shall be recognized as the current investment income.
For long-term equity investment calculated by equity method in subsequent measurement, the book value of
the long-term equity investment shall be increased or decreased accordingly with the changes in owner’s equity of
the investee. The shares of the net profits and losses of the investee attributable to the Company shall be
recognized based on the fair value of all identifiable net assets of the investee upon acquisition of the investment
in accordance with the accounting policies and accounting period of the Company, after deducting the parts of the
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profits and losses arising from internal transactions between the associates and joint ventures attributable to the
Company calculated on the basis of shareholding ratio and adjusting the net profits of the investee.
When disposing the long-term equity investment, the balance between the book value and the acquired price
actually shall be included in the current profit and loss. As for long-term equity investments calculated by the
equity method, when other changes in owners’ equity other than net gain or loss of the investee are recorded in
owners’ equity, the amount initially recorded in owners’ equity is proportionally transfer red into current
investment income.
If all transactions from step-by-step disposal of equity to loss of controlling interest do not belong to
package transaction, the Company will conduct accounting treatment for each transaction. In case of package
transaction, all transactions shall be calculated as one transaction of disposing subsidiaries and losing control
power for accounting treatment. However, the difference between disposal cost of each transaction and book
value of long-term equity investment corresponding to equity disposed before losing control power shall be
recognized as other comprehensive income and then shall be transferred into current profits and losses of losing
control power upon such loss.
Measurement model of investment real estate
Measurement by cost method
Depreciation or amortization methods
Leased houses and buildings are included into the investment real estates of the Company. Measurement is
carried out by cost model.
The investment real estates of the Company are depreciated or amortized by the composite life method. The
estimated service life, net residual value ratio and annual depreciation (amortization) rate of the investment real
estate are as follows:
Estimated residual value ratio Annual depreciation rate
Type Depreciation period (year)
(%) (%)
Houses and buildings 20 years 5.00 4.75
(1) Recognition conditions
Fixed assets of the Company refer to tangible assets with service life over one year, which are held for producing goods,
rendering labor services, lease (exclusive of leased houses and buildings) or operation and management.
Fixed assets are recognized when the economic benefits related thereto are likely to flow into the Company and their
costs can be measured reliably. Fixed assets include houses and buildings, machine and equipment, transportation equipment
and other equipment, and the actual cost at the time of acquisition is taken as the entry value. Among them, the cost of
purchased fixed assets includes the purchase price, import duties and other related taxes, as well as other expenditures that
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can be directly attributed to the fixed assets before the fixed assets reach the predetermined serviceable state; the cost of the
self-constructed fixed assets consists of necessary expenses incurred before the constructed assets are ready for the intended
use; the fixed assets invested by investors shall be accounted for at the value agreed in the investment contract or agreemen t,
or at the fair value if the value agreed in the investment contract or agreement is unfair; the fixed assets rented in by way of
financial lease shall be accounted for at the fair value. For fixed assets obtained by financing lease, the lower of the fair value
of rented assets and the present value of the minimum lease payment on the lease start date shall be recorded as the entry
value.
(2) Depreciation method
Annual depreciation
Type Depreciation method Depreciation period Residual value rate
rate
Houses and buildings Straight-line method 20 years 5.00% 4.75%
Machine and
Straight-line method 10 years 5.00% 9.50%
equipment
Transportation
Straight-line method 5 years 5.00% 19.00%
equipment
Other equipment Straight-line method 5 years 5.00% 19.00%
Processing of subsequent expenditure of fixed assets: The subsequent expenditure of fixed assets mainly
includes renovation/modification expenditure, repair expenditure, etc. When the relevant economic benefits are
likely to flow in and the costs can be measured in a reliable manner, they shall be in cluded into the cost of fixed
assets. For the replaced part, the book value shall be derecognized. All the other subsequent expenditures are
recognized in profit or loss for the current period in which they are incurred.
The Company will recheck the estimated service life, the estimated net residual value and the depreciation
method of the fixed assets on each balance sheet date.
Changes, if any, are regarded as the accounting estimate changes. A fixed asset is derecognized when it is
disposed of or no economic benefit is expected from the use or disposal of the asset. The amount of proceeds on
sale and transfer of a fixed asset as well as disposal of a scrapped or damaged fixed asset less its carrying amount
and related taxes, is recognized in profit and loss for the current period.
Construction in progress is measured at its actual cost. The self-operating works is measured according to
the direct material, direct wage, direct construction cost, etc.; the outsourced works is me asured according to the
project price payable; the project cost of the equipment installation works is determined according to the value of
installed equipment, installation cost, commissioning cost and other expenditures incurred. The cost of
construction in process shall also include borrowing costs that should be capitalized.
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The fixed assets constructed by the Company shall be transferred into fixed assets at the estimated value
based on project budget, construction cost and actual project cost from the date when fixed assets get ready for
intended use and depreciation of such assets will be accrued in next month. Upon completion of the final accounts
formalities, the original value difference of the fixed assets will be adjusted.
Recognition principle of borrowing cost capitalization: The borrowing costs incurred by the Company that
can be directly attributable to the acquisition and construction or production of qualifying assets will be
capitalized and incurred in the relevant asset cost. Other borrowing costs are recognized as expenses based on the
amount incurred, and included in the current profit and loss. Qualifying assets are defined as assets that require a
substantial amount of time (usually more than one year) for constructi on or production activities before the asset
is ready for its intended use or sale. These include fixed assets, intangible assets and inventory.
Period of capitalizing the borrowing costs: The Company will start to capitalize the borrowing costs related
to the qualifying assets when the asset expenditure has been incurred, the borrowing costs have been incurred, and
the acquisition, construction or production activities necessary to prepare assets for their intended use or sale are
in progress. Where the acquisition or production of a qualifying asset are interrupted abnormally and the
interruption period lasts for more than 3 months, the capitalization of the borrowing costs shall be suspended.
Capitalization of borrowing costs shall cease once the acquisition, construction or production necessary to prepare
the qualifying asset for its intended use or sale are complete.
Method for calculating the amount of borrowing costs to capitalize: If borrowing funds specifically for
acquiring, constructing or producing qualifying assets, the amount of interest eligible for capitalization by the
Company will be the actual interest costs incurred during the specific borrowing period minus the interest income
obtained by depositing or temporarily investing unspent borrowed funds. Where a general borrowing is used for
the acquisition, construction or production of a qualifying asset, the Company shall calculate and determine its
amount of interest to be capitalized by taking the weighted average of the accumulative asset expenditure minus
the asset expenditure of the specific borrowing, multiplied by the weighted average interest rate of the general
borrowing used.
The right-of-use asset refers to the right of the Company to use the leased assets as a lessee during the lease
term.
(1) Initial measurement
On the commencement date of the lease term, the Company carries out initial measurement to the right -of-
use asset. The cost comprises the following four items: ① initial measurement amount of lease liabilities; ② the
amount of lease payment made on or before commencement date of lease term, net of relevant amount of used
lease incentives (if any); ③ the initial direct cost incurred (i.e., the incremental cost incurred by reaching the
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lease agreement); ④ costs expected to be incurred to disassemble and remove the leased assets, restore the site
where the leased assets are located or restore the leased assets to the conditions as agreed under the terms of the
lease, excluding costs incurred to produce the inventory.
(2) Subsequent measurement
On the commencement date of the lease term, the Company carries out subsequent measurement to the right -
of-use assets in the cost mode, that is, measuring the right-of-use assets by deducting the accrued depreciation
amount and accrued impairment loss from the cost. Where the Company remeasures the lease liabilities according
to relevant provisions of the lease criterion, the book value of the use -of-right asset shall be adjusted
correspondingly.
Depreciation of right-of-use assets
On the commencement date of the lease term, the provision for depreciation shall be made by the Company
to the right-of-use assets. Generally, the depreciation amount of the use-of-right assets is accrued from the month
when the lease term starts. The accrued depreciation amount shall be recognized as the cost of relevant assets or
current profit or loss according to the purpose of the right-of-use assets.
When determining the depreciation method of right-of-use asset, the Company shall make decisions
according to the expected consumption method of the economic benefits related to the right -of-use asset and
accrue depreciation to the right-of-use asset with the linear method.
When determining the depreciation years of the right-of-use asset, the Company shall follow the principles
below: If the Company can reasonably determine that the ownership of the leased asset is acquired at the
expiration of the lease term, depreciation shall be accrued within the remaining service life of the leased asset.
Where it is not reasonably certain that the ownership of the lease assets can be obtained upon expiry of lease term,
the lease assets shall be depreciated over the shorter of the lease term and the remaining service life of the lease
assets.
Impairment of right-of-use assets
In case of impairment of right-of-use asset, the Company shall make subsequent depreciation as per the book
value of right-of-use asset after the impairment loss is deducted.
(1) Valuation method, service life and impairment test
The intangible assets of the Company mainly include land use rights, software, trademarks and patents. As
for intangible assets that are purchased, the actual cost is composed of the actual price paid and other relevant
expenditures. For the intangible assets that are invested by investors, the actual cost is determined by the agreed
value in the investment contract or agreement, but if the agreed value is not fair, the fair value will be taken as the
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actual cost. Intangible assets are amortized using the composite life method, and the classifications and
amortization periods of the Company’s intangible assets are as follows:
Type Amortization year
Land use right 50 years
Patents 10 years
Software 3-5 years
Trademark or domain name 10 years
The Company’s land use rights are amortized evenly according to the lease term, starting from the date of
transfer. The Company’s patent rights, non-patented technologies, special software use rights and other intangible
software amortized evenly by stages according to whichever period is the shortest: the asset’s estimated useful life,
the beneficial period stipulated in the contract, or the period of legal validity. The amount of amortization is
included into the current profits and losses or included into the relevant asset cost according to the beneficiaries.
At the end of each year, the Company shall review, and adjust in case of changes, the estimated useful lives
and amortization methods used for intangible assets with limited useful lives; in each accounting period, the
Company carries out reviews of the estimated useful life of intangible assets whose useful life is uncertain. Where
there is evidence showing that the useful life of these intangible assets is limited, the Com pany will estimate the
useful life thereof and amortize these intangible assets during the estimated useful life remaining.
The internal R&D expenditures of the Company can be divided into expenditures made at the research stage
and those made at the development stage, depending on the nature of the expenditure and the extent of uncertainty
on whether the R&D activities will finally form intangible assets.
For internally-generated intangible assets, expenditures at the research stage are included into the c urrent
profits and losses when incurred; expenditures at the development stage are recognized as an asset, when the
following conditions are met:
? It is technically feasible to complete the intangible assets so that they can be used or sold.
? There is an intention to complete and use or sell the intangible assets.
? There is a potential market for the products manufactured by applying the intangible assets or
there is a potential market for the intangible assets themselves.
? There is sufficient support in terms of technological, financial and other resources in order to
complete the development of the intangible assets, and there is the capability to use or sell the
intangible asset;
? The expenditures made on the intangible assets during the development stage can be measured
reliably.
Expenditures made in the development stage that fail to meet the above conditions shall be included in the
current profits and losses when incurred. The development expenditures previously included in the profit and loss
statement will not be recognized as assets in subsequent periods. The expenditures incurred and capitalized at the
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development stage are recorded as development expenditures on the balance sheet and will be carried over as the
intangible asset on the date when the project is ready for its intended use.
If the expenditures made at the research and development stages cannot be distinguished, all the R&D
expenditures incurred will be fully included in the current profits and losses. The costs of the intangible assets
generated by internal development activities only include the total expenditures incurred from the time when the
capitalization conditions are met to the point when the intangible assets are used for their intended purposes; for
expenditures that are already recorded as such in the profit and loss statement before the capitalization conditions
are met during development of the same intangible asset, no adjustments will be made.
On each balance sheet date, the Company shall audit the projects of subsidiaries, joint ventures and
associates, including long-term equity investments, fixed assets, projects under construction, and intangible assets
with finite useful lives. If any of the signs listed below are identified, this is an indic ation that the asset may be
impaired and the Company will conduct an impairment test. Impairment test is carried out on the intangible assets
with uncertain goodwill and beneficial period at the end of each period, irrespective of whether there is any
indication that the assets may be impaired. If there is difficulty in testing the recoverable amount of a single asset,
a test shall be conducted on the asset group which the asset belongs to, or on a combination of asset groups.
After the impairment test, if the book value of the asset exceeds its recoverable amount, the difference shall
be recognized as an impairment loss. Once such an impairment loss has been confirmed, it shall not be reversed in
the subsequent accounting period. The recoverable amount of an asset is the greater of its fair value less the net
value of asset disposal and present value of expected future cash flow.
The following signs may indicate asset impairment:
?
? Current market price of the asset drops substantially, with the drop in price being notably higher
than the expected drop over time or due to the asset’s normal use.
? Significant changes occur in the current period, or are predicted to occur in the near future, with
regard to the economic, technological or legal environment in which the enterprise conducts its
business operations, or in the asset market, and these changes have or will have negative impacts
on the enterprise;
? The market interest rate or other market investment return rates have risen in the current period,
affecting the enterprise’s discount rate for calculating the asset’s present value of expected future
cash flow, and leading to a substantial decrease in recoverable amounts of the assets;
? There is any amount of evidence to prove the asset has been out of date or the physical asset has
been damaged.
? The asset has been or will be left unused, terminated for use or disposed of ahead of schedule.
? There is evidence from the enterprise’s internal reports proving that the economic performance
of the asset has been lower or will be lower than expected. For example, the net cash flow
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generated by the assets or operating profits (or losses) realized is much lower (or higher) than the
expected amounts;
? Other signs indicating that the asset may have been impaired.
Contract liabilities reflect the obligations of the Company to transfer goods to the client for which
consideration is received or receivable from the client. Before the Company transfers goods to the client, and the
client has paid the consideration in the contract or the Company has obtained the right of unconditionally
collecting the consideration, the contract liabilities are recognized according to the received or receivable amount
either at the time of actual payment by the client or when the payment is due―whichever is earlier.
(1) Accounting treatment method of short-term remuneration
Short-term remunerations mainly include wages, bonuses, allowances and subsidies, employee welfare,
housing provident funds, labor union funds, employee education funds, medical insurance premiums, industrial
injury insurance premiums, and maternity insurance premiums. In the accounting period during which the
employee has rendered service, the actual short-term remuneration incurred is recognized as a liability and
included into the current profits and losses or related asset costs based on the beneficiary.
(2) Accounting treatment method of post-employment benefits
The post-employment benefits mainly consist of basic endowment insurance, unemployment insurance,
enterprise and annuity payments, which are classified into defined contribution plans according to the risks and
obligations undertaken by the Company. Moreover, the contributions paid into a separate entity in exchange for
the employee’s services during the accounting periods at the balance sheet date are recognized as a liability, and
recorded in current profits and losses or relevant asset costs based on the beneficiary.
(3) Accounting treatment method of dismissal benefits
Dismissal benefits are required in instances when the Company terminates labor relationships with a certain
employee prior to the maturity of their labor contract. The Company shall recognize the employee remuneration
liabilities incurred from termination benefits and include them into the current profits and losses. This occurs
either when the Company cannot unilaterally withdraw the termination benefits provided by the plan on the
termination of the labor relationship or dismissal proposal, or when the Company recognizes the costs or expenses
related to restructuring the payment of termination benefits―whichever occurs earlier. The compensations paid
exceeding one year will be discounted then included in the current profits or losses.
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(4) Accounting treatment method of other long-term employee benefits
Other long-term benefits mainly include long-term incentive plans and long-term benefits. The Company
conducts accounting treatment according to relevant provisions of the defined contribution plans.
(1) Initial measurement
The Company shall initially measure the lease liabilities according to the present value of the lease payment
unpaid on the commencement date of the lease term.
The lease payment refers to the payment made by the Company to the leaser as for the right of use the leased
assets during the lease term, including: ① fixed payment and practical fixed payment, with relevant lease
incentive (if any) deducted; ② variable lease payments that are based on an index or rate, which shall be
determined at the time of initial measurement based on the index or rate on the commencement date of the lease
term; ③ the exercise price of a purchase option if the Company is reasonably cer tain to exercise that option; ④
the amount payable for exercising the option to terminate the lease if the Company intends to exercise the option
to terminate the lease during the lease term; ⑤ expected payable amount based on secured residual value
provided by the Company.
In calculating the present value of the lease payments, the Company adopts the interest rate embedded in the
lease as the discount rate. The rate is the interest rate that equates the sum of present value of the lessor's lease
receipts and the present value of the unsecured residual value to the sum of the fair value of the leased asset and
the lessor's initial direct costs. If the Company is unable to determine the interest rate embedded in the lease, it
will adopt the incremental borrowing rate as the discount rate. The incremental loan interest rate is defined as the
interest rate that the Company would have to pay to borrow, for a term similar to the duration of the lease and
with similar security, the funds necessary to obtain an asset of similar value to the asset by right of use in a
similar economic environment. The interest rate is related to the following items: ① The Company's own
situation, including the debt repayment ability and credit status of the Group; ② the term of the "loan", i.e. the
lease term; ③ the amount of "borrowed" funds, i.e. the amount of lease liabilities; ④ the "mortgage conditions",
i.e. the nature and quality of the underlying assets; ⑤ the economic environment, including the jurisdiction where
the lessee is located, the valuation currency, and the contract signing time. The incremental borrowing rate is
determined by considering the above factors and adjusting the bank loan interest rate which is as a basis.
(2) Subsequent measurement
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When the lease term commences, the Company shall make subsequent measurement for the lease liabilities
on the basis of principles below: ① the carrying account of increased lease liabilities when the interests of lease
liabilities are recognized; ② the carrying account of decreased lease liabilities when the lease payment is made;
③ the book value of remeasured lease liabilities when the lease payment is changed due to revaluation, lease
change or other reasons.
The interest expenses of lease liabilities in each period of the lease term are calculated in accordance with
the fixed periodic interest rate, and are included in the current profit or loss, unless capitalization is required. The
periodic interest rate refers to the discount rate taken by the Company for initial measurement or the revised
discount rate taken by the Company when it is necessary to remeasure the lease liabilities as per the revised
discount rate due to lease payment change or lease change.
(3) Re-measurement
After the commencement date of the lease term, the Company remeasures the lease liabilities at the present
value of the revised lease payments and adjusts the book value of the right -of-use asset accordingly, if any of the
following occurs. If the book value of the right-to-use assets has been reduced to zero, but the lease liabilities still
need to be further reduced, the Company shall include the remaining amount in the profits and losses of the
current period. ① Substantial fixed payment amount changes (in this case, the original discount rate is used for
discounting); ② changes in the estimated payable amount of the secured residual value (in this case, the original
discount rate is used for discounting); ③ changes in the index or ratio used to determine lease payments (in this
case, the revised discount rate is used for discounting); ④ changes in the evaluation results of purchase option (in
this case, the revised discount rate is used for discounting); ⑤ changes in the evaluation results or actual exercise
of renewal option or option to terminate the lease (in this case, the revised discount rate is used for discounting).
When a obligation related to contingencies such as external guarantee, pendi ng litigation or arbitration,
product quality assurance, layoff plans, loss contracts, restructuring obligations, environmental pollution control,
commitments, and disposal obligation of fixed assets also meet the following conditions, the Company recogniz es
it as a liability: the obligation is currently being undertaken by the Company; there is a high possibility that the
fulfillment of the obligation will result in the outflow of economic benefits from the enterprise; and the amount of
the obligation can be reliably measured.
Provisions are initially measured according to the best estimate of the expenditure required to settle the
present obligation, taking into account factors related to contingencies such as risks, uncertainties and the time
value of money. Where the time value of money has a significant impact, the best estimate shall be ascertained
after discounting the future relevant cash outflow. The book value of provisions is reviewed at the balance sheet
date and adjusted to reflect the current best estimate if there is any change.
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For possible obligations arising from past transactions or events whose existence depends on whether one or
more uncertain future events occur; or for present obligations formed by past transactions or events, where the
fulfillment of the obligation is not likely to cause an outflow of economic benefits from the Company, or the
amount of the obligation cannot be reliably measured, the Company will disclose these possible or present
obligations as contingent liabilities.
Share-based payment refers to transactions in which equity instruments are granted or liabilities are incurred
based on equity instruments in order to obtain services provided by the employees or other parties. Share -based
payments are divided into equity-settled and cash-settled share-based payments.
Equity-settled share-based payments made in exchange for the service of employees are measured at the fair
value on the date at which the equity instrument is granted to employees. Wher e the right may only be exercised if
the service is completed within the waiting period, or if specified performance conditions are met, the fair value
shall be included in relevant costs or expenses using the straight-line method and capital surplus shall be
increased accordingly, based on the best estimate of the number of vested equity instruments within the waiting
period.
Cash-settled share-based payments shall be measured at the fair value of liabilities, and recognized on the
basis of share options or other equity instruments undertaken by the Company. If excisable immediately after the
grant, the fair value of the liabilities assumed shall be included in the relevant costs or expenses on the granting
date, and the liabilities shall be increased accordingly. If it is necessary to complete the services in the waiting
period or achieve the specified performance conditions before the right is excisable, on each balance sheet date of
the waiting period, the services acquired in the current period shall be included in the cost or expense based on the
best estimation of the excisable right, and the liabilities shall be adjusted accordingly according to the fair values
of the liabilities assumed by the Company.
On each balance sheet date and settlement date prior to the settlement of relevant liabilities, the fair value of
the liabilities will be re-measured, with any changes recorded in the profits and losses at the current period.
Accounting policies used for the recognition and measurement of income
Operating revenues of the Company are mainly from sales of goods, rendering labor service and transferring
right to use assets.
? Revenue recognition principle
The Company recognizes the revenue upon fulfillment of its performance obligations within the contract,
that is, when the client obtains control of the relevant goods or services. Acquisition of control over relevant
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goods or services means the ability to manage the use of such goods or the provision of services and to receive
almost all economic benefits therefrom.
The Company assesses the contract from the commencement date of the contract and recognizes each
individual performance obligation included by the contract, and determines if each individual performance
obligation will be fulfilled during a certain period or at a certain time point.
The performance obligations are to be fulfilled within a specified period once the Company meets one of the
following conditions; otherwise, the Company is to fulfill the performance obligations at a specified time point:
obligations.
of fulfilling the performance obligations.
and the Company has the right to collect partial payments for the cumulative performance obligations that have
been fulfilled so far within the contract period.
If the performance obligations are performed within the specified period, the Company will recognize the
revenue within this period in accordance with the progress of the contract’s performance. If the performance
progress cannot be reasonably determined and the costs incurred by the Company are expected to be compensated,
the revenue will be ascertained according to the costs incurred, until the performance progress can be reasonably
determined.
If the performance obligations are performed at the specified time point, the Company will recognize the
revenue at the time when the client obtains control over the relevant goods or services. In judging whether the
client has obtained control over goods or services, the Company shall consider the following signs:
The Company lists the right to receive considerations for transfer of goods or services to the customer as a
contract asset, for which the impairment will be withdrawn on the basis of expected credit loss. The right of the
Company to unconditionally receive considerations from the customer is listed as receivables. The Company
presents the obligation to transfer goods or services to the customer for considerations received or receivable from
the customer as a contract liability.
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? Revenue measurement principle
transaction price to each single performance obligation according to the relative proportion of the separate selling
price of the goods or services promised by the single performance obligation at the beginning of the contract, a nd
the revenue shall be measured according to the transaction price apportioned to each single performance
obligation.
transfer of goods or services to the client, excluding the amount collected by third parties. The transaction price
refers to the amount of consideration that the Company expects to collect for transfer of goods or services to the
client, excluding the amount collected by third parties. The expected amount to be returned to the client will be
listed as a liability and not be included into the transaction price.
according to the amount payable in cash when the client obtains control of the goods or services. The difference
between the transaction price and the contract consideration shall be amortized by the effective interest method
during the contract period. On the contract start date, if the Company estimates that the time between the client's
acquisition of control over goods or services and the payment of the price by the client will not exceed one year,
the significant financing in the contract shall not be considered.
? Specific method for revenue recognition
Revenue recognized by time point
Selling electric appliances, fittings and materials by the Company is the performance obligation at a time
point.
Revenue recognition conditions for domestic sales commodity: The Company has delivered the product to
the customer according to the contract terms and the customer has received the product; the payment has been
collected or the receipt voucher has been provided and relevant economic profits might flow into the Company;
main risks and remuneration as for the ownership of the commodity have been transferred; and legal ownership
and control right of the commodity have been transferred.
Revenue recognition conditions for exported commodity: The Company has declared the product to the
customs and the product has been delivered according to the contract terms; the bill of lading has been obtained,
the payment has been collected or the receipt voucher has been provided and relevant economic profits might flow
into the Company; main risks and remuneration as for the ownership of the commodity have been transferred; and
legal ownership and control right of the commodity have been transferred.
Revenue recognized by performance progress
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
The technical service revenue of the Company and the business contract between the operating lease and the
customer are the performance obligations to be performed within a period, for which the revenue shall be
recognized according to the performance progress.
Differences in accounting policies for revenue recognition due to different operating models for the same
type of business
The government grants of the Company include fiscal appropriation. Asset -related government grants refer
to government grants obtained by the Company for purchasing and acquiring long-term assets or forming long-
term assets by other ways. Income-related government grants refer to those other than asset-related government
grants. In case the purpose of a grant is not expressly stipulated in the government document, t he Company will
categorize the grant according to these above principles. If it is difficult to categorize the grant, it will be
categorized as the income-related government grant.
If a government grant is a monetary asset, it will be measured at the amount received; for the grant
appropriated according to the fixed quota or for the grant where there is concrete evidence showing that the
Company is qualified to receive governmental financial support and will be able to receive the support by the end
of the period, the grant will be measured at the receivable; if the government grant is a non -monetary asset, it will
be measured at the fair value, or measured at its nominal amount (RMB 1) if the fair value cannot be obtained
reliably.
If a government grant related to assets is recognized as deferred income, such grant is recognized in the
current profit or loss based on equal division within the service life of the relevant asset.
If the relevant asset has been sold, transferred, retired or damaged before the end of the service life, the
balance of the relevant deferred income that has not been allocated will be transferred into the current profit and
loss of asset disposal.
Government grants related to income that compensate future costs, expenses or losse s are recognized as
deferred income, and recognized in profit or loss in reporting the related costs, expenses or losses. The
government grants relating to the ordinary activities are included in other income or deducted against relevant
costs and expenses according to the nature of the accounting event, otherwise, they are included in non -operating
income. Government grants unrelated to daily activities will be included in non -operating income.
If the Company obtains the subsidized loan as a result of preferential financial policy, there will be two
situations: the Ministry of Finance appropriates the interest subsidy to the lending bank, or the Ministry of
Finance directly appropriates the subsidy to the Company, and the accounting treatment for each of th ese
situations is as follows:
? Where the Ministry of Finance appropriates the subsidy to the lending bank, and the bank
provides the Company with the loan at a discounted interest rate, the Company will use the
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
actual amount of loan received as the book value of the loan, and calculate the relevant
borrowing costs based on the principal of the loan and the interest rate.
? Where the Ministry of Finance directly appropriate the interest subsidy to the Company, the
Company will deduct the corresponding interest subsidy against the borrowing costs.
Where the governmental grants recognized by the Company need to be returned, the accounting treatment
will be done as follows in the period they are returned:
of assets will be adjusted.
but the excessive part will be included in the current profit or loss .
Deferred income tax assets and deferred income tax liabilities of the Company are c alculated and recognized
based on the differences (temporary differences) between the tax base and the book value of the assets or
liabilities. For the deductible loss and tax credits that can be deducted annually in the subsequent years according
to tax laws, the corresponding deferred income tax assets are recognized. Where the temporary differences arise
from the initial recognition of goodwill, the corresponding deferred income tax liabilities are not recognized. No
deferred income tax asset or deferred income tax liability is recognized where the temporary differences arising
from the initial recognition of assets or liabilities in a transaction that is not a business combination affect neither
accounting profit nor taxable profit (or deductible loss). On the balance sheet date, the deferred income tax asset
and liability are measured at the applicable tax rates during the period when the asset is realized or the liability is
settled as expected.
The Company recognizes the deferred income tax asset to the extent that it is probable that the taxable
income will be available against which the deductible temporary differences, deductible losses and tax credits can
be deducted.
(1) Accounting method for operating lease
(1) Identification of lease
Lease refers to that the leaser transfers the right to use the asset to the lessee within a certain period to obtain
consideration contracts. On the commencement date of the contract, the Company assesses whether the contract
serves as the lease or includes the lease. If one party to the contract transfers the right to control one or more
identified assets during a certain period in exchange for consideration, such contract is or includes lease. To
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
determine whether the contract has transferred the right to control the use of the identified assets in a certain
period of time, the Company assesses whether the customer in the contract is entitled to receive almost all the
economic benefits arising from the use of the identified assets during the use period and i s entitled to manage the
use of the identified assets during the use period.
If a number of separate leases are contained in one contract, the Company will split the contract and adopt
accounting methods to each lease on an individual basis. If a contract includes both lease and non-lease
components, the Company will separate the lease from the non-lease component before accounting treatment.
(2) The Company serves as the lessee
At the commencement of the lease term, the right-of-use assets and lease liabilities shall be recognized for
the lease by the Company. Refer to note on right-of-use assets and lease liabilities for details on the recognition
and measurement of right-of-use assets and lease liabilities.
Lease change refers to the change in lease scope, lease consideration and lease term beyond the terms of the
original contract, including increasing or terminating the right to use one or more leased assets, extending or
shortening the lease term stipulated in the contract, etc. The effective date of lease change refers to the date when
the Parties reach the agreement on lease change.
When a change happens to the lease and meets the following conditions, the Company will treat it as a
separate lease: ① the change expands the lease scope or extends lease term by increasing the right to use one or
more leased assets; ② the increased consideration is equivalent to the single price for the expanded portion of
lease scope or the extended portion of lease term adjusted according to contract circumstances.
In case where accounting treatment is not made for lease change as a single lease, on the effective date of
lease change, the Company will appropriate the consideration of the changed contract according to the relevant
provisions of the lease criteria and redefine the updated lease term. In addition, the Company will discount the
changed lease payment according to the revised discount rate, so as to remeasure the lease liabilities. In
calculating the present value of the lease payment after the change, the Company uses the interest rate implicit in
lease for the remaining lease term as the discount rate. if the interest rate implicit in lease for the remaining lease
term cannot be determined, the incremental borrowing interest rate of the lessee on the effective date of lease
change shall be used as the discount rate by the Company. With regard to the impact of the above adjustment of
lease liabilities, the Company adopts accounting methods in the following situations: ① In the event that the
lease scope is narrowed down or the lease term is shortened as a result of the lease change, the lessee shall reduce
the book value of the right-of-use assets, and the relevant gains or losses from the partial or complete termination
of the lease shall be included into the current loss and profit. ② For the lease liabilities remeasured due to other
lease changes, the lessee shall adjust the book value of the right-of-use assets accordingly.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
For short-term leases with a lease term of no more than 12 months and low-value asset leases at a low value
when individual leased assets are brand new, the Company chooses not to recognize the right -of-use assets and
lease liabilities. Lease payments under short-term leases and leases of low-value assets are recognized by the
Company on a straight-line basis or other systematic and reasonable basis over the lease term, and included into
the cost of the related assets or current profits or losses.
(3) The Company serves as the lessor
On the basis of the contract is evaluated as a lease or including a lease in (1), the Company, as the lessor,
divides the lease into financial lease and operating lease at the commencement of the lease.
A lease that transfers in substance almost all the risks and rewards incident to ownership of a leased asset is
classified as a financial lease by the lessor. A lease other than the financial lease is an operating lease.
The Company usually classifies a lease as a financial lease if one or more of the following situations exist:
① the ownership of the leased asset is transferred to the lessee at the expiration of the lease term; ② the lessee
has the right to choose to purchase the leased asset; the established purchase price is expected to be much lower
than the fair value of the leased asset when the right of choice is exercised, and hence it can be reasonably
determined that the lessee will exercise this right of choice on the inception of lease; ③ the lease term accounts
for a substantial proportion (no less than 75%) of the service life of the leased asset, notwithstanding that the
ownership of the asset will not be transferred; and ④ on the inception of lease, the present value of the lease
receipts is almost equal to the fair value of the leased asset (no less than 90% of the fair value of the leased asset.).
and ⑤ the leased assets are of a specialized nature that only the lessee can use them without making major
modifications. The Company may also classify a lease as a financial lease if one or more of the following signs
exist: ① if the lessee cancels the lease, the resulting loss to the lessor shall be borne by the lessee; ② the gain or
loss arising from the fluctuation in the fair value of the residual value of the ass et shall be attributable to the
lessee; and ③ the lessee is able to continue the lease to the next period at a rent much lower than the market level.
Initial measurement
On the commencement date of lease term, the Company recognizes financial lease receivables for financial
lease and derecognizes financial lease assets. Upon initial measurement of financial lease accounts receivable, the
Company takes net investment in lease as entry value of financial lease accoun ts receivable.
Net investment in lease is the sum of unsecured residual value and the present value of outstanding lease
receipts discounted on interest rate implicit in lease on the commencement date of the lease term. Lease receipts
refer to the amount that the lessor shall collect from the lessee for transferring the right to use the leased assets
during the lease term, including: ① the amount of fixed payment and substantial fixed payment to be paid by the
lessee, net of relevant amount of lease incentives if any; ② variable lease payments that are based on an index or
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
rate, which shall be determined at the time of initial measurement based on the index or rate on the
commencement date of the lease term; ③ exercise price of call option, given that the lessee will reasonably
exercise such option; ④ amount payable by the lessee for exercising the option to terminate the lease, if it is
indicated during the lease term that the lessee will exercise the option to terminate the lease; ⑤ the residual value
of the guarantee provided to the lessor by the lessee, a party related to the lessee and an independent third party
with the financial ability to meet the guarantee obligation.
Subsequent measurement
The Company calculates and recognizes the interest income in each period of the lease term according to the
fixed periodic rate. Such periodic rate refers to the implicit discount rate used to determine the net investment in
the lease (in case of sublease, the discount rate of the original lease is adopted if the i nterest rate implicit in lease
of the sublease cannot be determined (adjustments are made based on the initial direct costs associated with
sublease)), or the revised discount rate determined according to the relevant provisions when the change of the
financial lease has not been treated as a separate lease for accounting, and it is satisfied that the lease will be
classified as the financial lease if the change takes effect at the beginning of the lease.
Accounting treatment of lease change
When a change happens to the financial lease and meets the following conditions, the Company will treat it
as a separate lease: ① the change expands the lease scope by increasing the right to use one or more leased assets;
② the increased consideration is equivalent to the single price for the expanded portion of lease scope adjusted
according to contract circumstances.
If such a change to the financial lease is not accounted for as a separate lease and the condition is satisfied
that if the change becomes effective on the commencement date of the lease, the lease is classified as an operating
lease, the Company will account for it as a new lease from the effective date of the lease change and regard the
net lease investment prior to the effective date of the lease change as the book value of the leased asset.
Treatment of rent
The Company adopts the straight-line method or other systematic and reasonable methods to recognize the
lease receipts from operating leases as rental income during all periods within the lease term.
Incentive measures provided
If a rent-free period is provided, total rent shall be amortized by adopting the straight -line method or other
systematic and reasonable methods within the lease term not excluding the rent-free period, and the rental income
shall be recognized in the rent-free period. Certain costs incurred by the lessee, if undertaken by the Company,
shall be excluded from total rental income and the balance of rental income after deducti ng these costs shall be
amortized within the lease term.
Initial direct costs
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
The initial direct costs incurred by the Company related to the operating lease shall be capitalized to the cost
of leased underlying asset and shall be included into current pro fits and losses on the same basis as recognition of
rental income during the lease term.
Depreciation
For fixed assets included in assets under operating leases, accrual depreciation shall base on the depreciation
policy adopted by the Company for similar assets. Other assets under operating leases shall be amortized in a
systematic and reasonable manner.
Variable lease payments
Variable lease payments acquired by the Company in connection with operating leases that are not included
in the lease receipts are included into the current profits and losses when actually incurred.
Change of operating lease
In case of changes in the operating lease, the Company will treat it as a new lease as of the effective date of
the change, and the lease advance or accounts receivable related to the lease before the change will be regarded as
the amount received from the new lease.
(1) Significant accounting policy changes
?Applicable □Not applicable
Contents and reasons for
Approval procedure Remarks
accounting policies changes
On December 13, 2022, the
Ministry of Finance issued the
Interpretation No. 16 of the
Accounting Standards for Business The 2nd meeting of the 6th Board
Enterprises (CK [2022] No. 31). of Directors
The Company has implemented the
Interpretation No. 16 of the ASBE
since January 1, 2023.
On December 13, 2022, the Ministry of Finance issued the Interpretation No. 16 of the Accounting
Standards for Business Enterprises (CK [2022] No. 31), wherein the accounting treatment for deferred income tax
related to assets and liabilities arising from single transaction not eligible for initial recognition exemption is
effective from January 1, 2023, without requiring retrospective adjustments.
For single transaction subject to this regulation that occurred between the beginning of the earliest reporting
period for which this regulation is first applied and the implementation date, as well as temp orary differences and
deductible temporary differences arising from the recognition of right -of-use assets and lease liabilities at the
beginning of the earliest reporting period due to the application of this regulation, adjustments shall be made in
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
accordance with this regulation. The implementation of this regulation has not had a significant impact on the
financial condition and operating results of the Company.
(2) Significant accounting estimate changes
□Applicable ?Not applicable
(3) Relevant financial statement items at the beginning of 2023 when the adjustments stipulated in the new accounting
standards apply for the first time
□Applicable ?Not applicable
VI. Taxation
Category Tax base Tax rate
VAT Income from sales of goods 13%
Income from provision of technical
VAT 6%
services
VAT Rental income 5%, 9%
City maintenance and construction tax Turnover tax payable 7%
Education surcharge Turnover tax payable 3%
Local education surcharge Turnover tax payable 2%
House tax 70% of the original value of the house 1.2%
House tax Rental income 12%
Land use tax Total land area RMB 5-10/m2
Corporate income tax Taxable income 8.25%, 15%, 16.5%, 20%, 25%
Disclosure of taxpayers with different corporate income tax rates
Name of taxpayer Income tax rate
Hangzhou Robam Appliances Co., Ltd. 15%
Shengzhou Kinde Intelligent Kitchen Appliances Co., Ltd. 15%
Zhejiang Cookingfuture Technology Co., Ltd. 25%
Beijing Robam Appliances Sales Co., Ltd. 25%
Shanghai Robam Appliances Sales Co., Ltd. 25%
Hangzhou MingQi Electric Co., Ltd. 25%
De Dietrich Household Appliances Trading (Shanghai) Co.,
Ltd.
Hangzhou Robam Fuchuang Investment Management Co.,
Ltd.
Hangzhou Jinhe Electric Appliances Co., Ltd. 25%
The tax rate for profits less than 2 million Hong Kong
Dollars under the second-tier tax system is 8.25%, and for
Robam Appliances Holding (HK) Co., Ltd. (Note 1)
the excess portion equal to or greater than 2 million Hong
Kong Dollars, it is 16.5%.
The tax rate for profits less than 2 million Hong Kong
Dollars under the second-tier tax system is 8.25%, and for
Robam International (HK) Trading Co., Ltd. (Note 1)
the excess portion equal to or greater than 2 million Hong
Kong Dollars, it is 16.5%.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
The Company obtained the Certificate of High-Tech Enterprise (Certificate No.: GR202033007142)
jointly issued by Department of Science and Technology of Zhejiang Province, Zhejiang Provincial
Department of Finance, Zhejiang Provincial Tax Service, State Taxation Administration, and Local
Taxation Bureau of Zhejiang Province on December 1, 2020. The certificate is valid for 3 years.
According to the relevant provisions, after being identified as a high -tech enterprise, the Company will
enjoy the relevant preferential policies of the state on high-tech enterprises for three consecutive years
(i.e., the Company is entitled to the preferential income tax policy from January 1, 2020 to December 31,
According to the Announcement of the State Taxation Administration on the Implementation of
Preferential Income Tax Policy for Hi-tech Enterprises (Announcement 2017 No. 24 of the State
Taxation Administration), an enterprise shall prepay the income tax temporarily at the rate of 15% before
passing the re-certification in the year when the enterprise's Certificate of High -Tech Enterprise expires,
and if it still fails to obtain the qualification as a high-tech enterprise before the end of the year, it shall
make up for the taxes of the corresponding period in accordance with the regulations The Company has
reapplied for the qualification of high-tech enterprise. Before the recognition is approved, the corporate
income tax will be temporarily prepaid at a tax rate of 15% in 2023
The subsidiary of the Company, Shengzhou Kinde Intelligent Kitchen Appliances Co., Ltd.
(hereinafter referred to as Shengzhou Kinde), obtained the Certificate of High -tech Enterprise (Certificate
No.: GR202233010421) jointly issued by Department of Science and Technology of Zhejiang Province,
Zhejiang Provincial Department of Finance, and Zhejiang Provincial Tax Service, State Taxation
Administration on December 24, 2022. After the recognition, it will enjoy the preferential tax policy of
the state on high-tech enterprises for three consecutive years (i.e., it is entitled to the preferential income
tax policy from January 1, 2022 to December 31, 2024), and its corporate income tax shall be levied at
the tax rate of 15%.
According to the Announcement [2023] No. 6 of the State Taxation Administration), Hangzhou
Robam Fuchuang Investment Management Co., Ltd., a subsidiary of the Company, will include 25% of
the portion of annual taxable income not exceeding RMB 1 million of small and micro-profit enterprises
into the taxable income, and pay corporate income tax at a rate of 20%.
Preferential VAT policy
According to the Notice on Value-Added Tax Policies for Software Products Issued by the Ministry
of Finance and the State Taxation Administration (CS [2011] No. 100), the Company's sales of embedded
software products are eligible for immediate VAT refund after collection.
Preferential land use tax policy
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
According to Article 7 of the Decision of the State Council on Amending the Interim Regulations of the
People's Republic of China on Urban Land Use Tax (State Council Order No. 483 of the People's
Republic of China), the Company enjoys preferential policies of exemption from land use tax.
VII. Notes to items in the consolidated financial statements
In RMB
Item Ending balance Beginning balance
Cash in hand 182,584.13 85,806.05
Deposit in bank 5,776,710,554.59 5,194,887,841.18
Other cash and cash equivalents 101,898,241.34 97,789,023.71
Total 5,878,791,380.06 5,292,762,670.94
Other description
Note: The other cash and cash equivalents are RMB 101,898,241.34, including the L/G margin of RMB
of which are limited; and the Alipay and WeChat wallet balance is RMB 976,770.36, which can be withdrawn
without any limit at any time.
Use of restricted cash and cash equivalents
Item Ending balance Beginning balance
Letter of guarantee and margin for acceptance
of bill
ETC margin 13,000.00 13,000.00
Total 100,921,470.98 96,348,329.20
In RMB
Item Ending balance Beginning balance
Financial assets measured at fair value
with changes included into current 2,315,606,606.83 2,511,844,508.00
profit or loss
Including:
financial products 2,315,606,606.83 2,511,844,508.00
Total 2,315,606,606.83 2,511,844,508.00
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(1) Classified presentation of notes receivable
In RMB
Item Ending balance Beginning balance
Banker’s acceptance 578,318,951.21 609,791,571.72
Trade acceptance 119,521,959.74 271,981,769.99
Total 697,840,910.95 881,773,341.71
In RMB
Ending balance Beginning balance
Book balance Bad debt reserve Book balance Bad debt reserve
Type Book Book
Percenta Percenta
Percenta value Percenta value
Amount Amount ge of Amount Amount ge of
ge (%) ge (%)
provision provision
Notes
receivabl
e with an
individua 1.39% 53.05%
l bad
debt
provision
Includi
ng:
Bad debt
provision
s by 1.39% 53.05%
individua
l item
Notes
receivabl
e with a 704,131, 6,290,62 697,840, 889,884, 14,004,6 875,880,
collectiv 540.67 9.72 910.95 737.69 58.56 079.13
e bad
debt
Includi
ng:
Including
:
Banker’s 82.13% 67.57%
acceptan
ce
Trade
acceptan 17.87% 5.00% 31.04% 5.00%
ce
Total 100.00% 0.89% 100.00% 2.29%
Collective bad debt provision:
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision
Banker’s acceptances
combined
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Trade acceptances combined 125,812,589.46 6,290,629.72 5.00%
Total 704,131,540.67 6,290,629.72
(2) Bad debt provision, and its recovery or reversal in the current period
Bad debt provision in the current period:
In RMB
Amount of change in the current period
Recover Ending
Type Beginning balance
Provision y or Write-off Others balance
reversal
Trade
acceptance
Total 20,664,601.78 -14,373,972.06 6,290,629.72
Significant recoveries or reversals of provisions for bad debts during the reporting period:
□Applicable ?Not applicable
(3) Notes transferred to accounts receivable by the Company due to drawer’s non -performance at the end of
the period
In RMB
Amount of accounts receivable transferred at the end of the
Item
period
Trade acceptance 388,054,304.18
Total 388,054,304.18
(1) Classified disclosure of accounts receivable
In RMB
Ending balance Beginning balance
Book balance Bad debt reserve Book balance Bad debt reserve
Type Book Book
Percenta Percenta
Percenta value Percenta value
Amount Amount ge of Amount Amount ge of
ge (%) ge (%)
provision provision
Accounts
receivabl
e with
individua 1,579,34 1,007,91 571,421, 1,639,67 1,030,78 608,898,
l bad 0,304.84 9,074.13 230.71 9,315.79 0,696.17 619.62
debt
provision
s
Includi
ng:
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Bad debt
provision
s by 54.96% 63.82% 58.71% 62.86%
individua
l item
Accounts
receivabl
e with a
collectiv 45.04% 6.51% 41.29% 6.29%
e bad
debt
provision
Includi
ng:
Multiple
accounts
receivabl
e which
are
grouped
by
expected
credit
loss 45.04% 6.51% 41.29% 6.29%
based on
their age
character
istics and
with a
collectiv
e bad
debt
provision
Total 100.00% 38.00% 100.00% 39.50%
Bad debt provisions by individual item:
In RMB
Ending balance
Name Percentage of
Book balance Bad debt reserve Reasons for provision
provision
Unit 1 657,106,467.98 657,106,467.98 100.00% Debt default
Unit 2 541,917,836.68 162,577,431.46 30.00% Overdue debt
Unit 3 116,422,160.38 47,034,405.36 40.40% Overdue debt
Unit 4 78,095,830.77 54,667,081.53 70.00% Debt default
Unit 5 31,086,961.45 6,217,392.29 20.00% Overdue debt
Unit 6 28,139,039.02 19,225,685.81 68.32% Overdue debt
Unit 7 24,428,569.14 6,195,424.47 25.36% Overdue debt
Unit 8 22,763,973.13 15,934,781.19 70.00% Debt default
Unit 9 14,080,420.74 8,587,655.52 60.99% Overdue debt
Unit 10 13,773,333.34 3,646,561.03 26.48% Overdue debt
Unit 11 13,671,133.59 6,306,115.04 46.13% Overdue debt
Unit 12 8,644,489.50 6,051,142.65 70.00% Debt default
Unit 13 8,009,318.82 2,345,903.11 29.29% Overdue debt
Unit 14 4,204,830.93 2,943,381.65 70.00% Debt default
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Unit 15 3,660,575.03 1,415,427.52 38.67% Overdue debt
Expected to be
Unit 16 13,335,364.34 7,664,217.52 57.47% exposed to recovery
risk
Total 1,579,340,304.84 1,007,919,074.13
Collective bad debt provision:
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision
With 1 year 1,104,644,435.40 55,232,221.79 5.00%
More than 5 years 2,077,830.26 2,077,830.26 100.00%
Total 1,294,467,156.01 84,234,627.38
Description on basis for determining combination：
If the bad debt provisions for accounts receivable is recognized in accordance with the expected general credit loss model,
please disclose the relevant information of the bad debt provisions in the same manner as the disclosure of other accounts
receivable.
□Applicable ?Not applicable
Disclosed based on the aging
In RMB
Aging Ending balance
Within 1 year (including 1 year) 1,379,014,659.28
Within 1 year (including 1 year) 1,379,014,659.28
More than 3 years 42,088,878.31
More than 5 years 7,666,817.41
Total 2,873,807,460.85
(2) Bad debt provision, and its recovery or reversal in the current period
Bad debt provision in the current period:
In RMB
Amount of change in the current period
Type Beginning balance Recovery or Ending balance
Provision Write-off Others
reversal
Bad debt reserves
for accounts 1,103,342,052.84 27,424,660.76 38,556,641.14 56,370.95 1,092,153,701.51
receivable
Total 1,103,342,052.84 27,424,660.76 38,556,641.14 56,370.95 1,092,153,701.51
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(3) Accounts receivable actually written off in the current period
In RMB
Item Amounts written off
Accounts receivable actually written off 56,370.95
(4) Top five debtors with the largest ending balances of accounts receivable
In RMB
Proportion in the total
Ending balance of accounts Ending balance of bad debt
Unit ending balance of accounts
receivable reserves
receivable
Unit 1 541,936,354.72 18.86% 160,861,018.17
Unit 2 452,376,997.98 15.74% 452,376,997.98
Unit 3 215,712,302.12 7.51% 10,805,775.09
Unit 4 95,125,955.20 3.31% 95,125,955.20
Unit 5 83,171,694.86 2.89% 4,158,584.74
Total 1,388,323,304.88 48.31%
(5) Accounts receivable whose recognition is terminated due to transferal of financial assets
? Amount of assets and liabilities arising from the transfer of accounts receivable and continued
involvement
Asset item Ending balance Liability item Ending balance
Accounts receivable with
recourse factoring
(1) Advance payments presented by age
In RMB
Ending balance Beginning balance
Aging
Amount Percentage (%) Amount Percentage (%)
With 1 year 183,566,440.82 99.32% 176,828,710.59 99.62%
More than 3 years 54,528.03 0.03% 30,069.48 0.02%
Total 184,837,219.74 177,500,353.37
Explanation on the reasons for no timely settlement of advance payments with an account age of over 1 year and significant
amount:
(2) Top five payers with the largest ending balances of advance payments
The ending balances of advance payments of the top five payers by the end of the current period totaled
RMB 65,777,907.89, accounting for 35.59% of the total.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Other description:
In RMB
Item Ending balance Beginning balance
Other receivables 104,345,008.35 80,429,057.84
Total 104,345,008.35 80,429,057.84
Other accounts receivable
In RMB
Initial book balance at the beginning of
Nature of receivable Book balance at the end of the period
the period
Security/guarantee deposits 41,749,526.32 38,184,552.92
Collections by a third party 66,011,015.04 50,695,825.81
Cash reserve 7,456,903.93 2,601,040.33
Withholdings 6,654,501.04 4,898,268.76
Others 1,158,091.06 519,033.02
Total 123,030,037.39 96,898,720.84
In RMB
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Bad debt reserve Expected credit loss Total
over the entire over the entire
over the next 12
duration (without duration (with credit
months
credit impairment) impairment)
Balance as of January
Balance on January 1,
period
Provision in the
current period
Balance as of June 30,
Changes in the book balance with significant change in amount of the loss provision in the current period
□Applicable ?Not applicable
Disclosed based on the aging
In RMB
Aging Ending balance
Within 1 year (including 1 year) 94,698,406.83
Within 1 year (including 1 year) 94,698,406.83
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
More than 3 years 13,322,708.88
More than 5 years 9,205,035.40
Total 123,030,037.39
Bad debt provision in the current period:
In RMB
Amount of change in the current period
Type Beginning balance Recovery Ending balance
Provision or Write-off Others
reversal
Bad debt
provision for
other
receivables
Total 16,469,663.00 2,215,366.04 18,685,029.04
In RMB
Proportion in the
total ending
Nature of Ending balance of
Unit Ending balance Aging balance of other
receivable bad debt reserves
accounts
receivable
Collections by a
Unit 1 third party and 42,366,468.93 34.44% 2,247,773.50
above
unit deposits
Collections by a
Unit 2 third party and 6,168,313.58 0-5 years 5.01% 363,415.70
unit deposits
Collections by a
Unit 3 third party and 5,858,119.76 0-3 years 4.76% 372,256.20
unit deposits
Collections by a
Unit 4 third party and 5,797,765.08 4.71% 339,888.30
above
unit deposits
Unit 5 Unit deposits 5,500,000.00 With 1 year 4.47% 275,000.00
Total 65,690,667.35 53.39% 3,598,333.70
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(1) Classification of inventories
In RMB
Ending balance Beginning balance
Provision for Provision for
obsolete obsolete
Item inventory or for inventory or for
Book balance impairment of Book value Book balance impairment of Book value
the cost of the cost of
contract contract
performance performance
Delivered goods 894,301,401.87 31,897,303.28 862,404,098.59 946,934,786.68 34,166,612.43 912,768,174.25
Merchandise
inventory
Raw materials 89,091,388.40 89,091,388.40 124,228,344.80 124,228,344.80
Low-cost
consumables and
packing
materials
Products in
process
Contract
performance 33,756,452.26 33,756,452.26 44,135,708.88 44,135,708.88
costs
Total 66,954,369.08 72,589,176.99
(2) Provision for obsolete inventory or for impairment of the cost of contract performance
In RMB
Increased amount in the current Decreased amount in the
Beginning period current period
Item Ending balance
balance Reversals or
Provision Others Others
write-off
Delivered
goods
Merchandise
inventory
Total 72,589,176.99 -5,634,807.91 66,954,369.08
In RMB
Increase/decrease in the current period Ending
Beginni
Investm Adjustm Cash Ending balance
ng Additio Negativ Other Impairm
ent ent of dividen balance of
Investee balance nal e changes ent
profit or other ds or Others （book impairm
（book investm investm in provisio
loss compre profits value) ent
value) ent ent equity n
recogniz hensive declared provisio
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
ed using incomes and n
the distribut
equity ed
method
I. Joint venture
De
Dietrich
Trade 3,824,4 3,272,8
(Shangh 60.03 76.08
.95
ai) Co.,
Ltd.
Subtotal 551,583
.95
II. Associated enterprises
Zhejian
g
Tingshu
o Brand
Operati 1,065,9 597,853
on 93.31 .61
.70
Manage
ment
Co.,
Ltd.
Shaoxin
g
Shuaige
Kitchen
and 3,828,0 3,584,5
Bathroo 52.28 91.88
.40
m
Technol
ogy Co.,
Ltd.
Subtotal 711,600
.10
Total 1,263,1
In RMB
Item Ending balance Beginning balance
Shanghai MXCHIP Information
Technology Co., Ltd.
Total 2,116,023.22 2,116,023.22
Disclosure of non-tradable equity instrument investment by item in the current period
In RMB
Recognized Accumulated Accumulated Amount Reason for Reason for
Name of item
dividends gains losses transferred being the transfer
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
income from other designated to of other
comprehensi be measured comprehensi
ve incomes by fair value ve incomes
to retained and the to retained
earnings change being earnings
recorded in
other
comprehensi
ve income
Suzhou
Industrial
Park Ruican Held not for
Investment the purpose
Enterprise of trading
(Limited
Partnership)
Shanghai
MXCHIP Held not for
Information the purpose
Technology of trading
Co., Ltd.
(1) Investment real estate under the cost measurement mode
?Applicable □Not applicable
In RMB
Item Buildings Land use right Total
I. Original book value
the current period
(1) Outsourcing 3,808,528.00 3,808,528.00
(2) Transfer from
inventories/fixed
assets/construction in
progress
(3) Increased
amount in business
combination
the current period
(1) Disposal
(2) Other transfer-
out
II. Accumulated depreciation
and amortization
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
the current period
(1) Accrual or
amortization
the current period
(1) Disposal
(2) Other transfer-
out
III. Impairment provision
the current period
(1) Provision
the current period
(1) Disposal
(2) Other transfer-
out
IV. Book value
In RMB
Item Ending balance Beginning balance
Fixed assets 1,585,809,148.56 1,622,235,227.74
Disposal of fixed assets 14,868.65
Total 1,585,824,017.21 1,622,235,227.74
(1) Fixed assets
In RMB
Houses and Machine and Transportation
Item Other equipment Total
buildings equipment equipment
I. Original book
value:
balance
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
amount in the 20,459,727.29 47,079,335.37 411,327.43 9,696,218.33 77,646,608.42
current period
(1)
Purchase
(2)
Transfer from
construction in
progress
amount in the 37,558,132.67 2,971,354.22 1,168,153.67 420,470.46 42,118,111.02
current period
(1)
Disposal or 2,971,354.22 1,168,153.67 420,470.46 4,559,978.35
retirement
(2) Other
decreases
balance
II. Accumulated
depreciation
balance
amount in the 35,424,531.71 30,617,780.33 921,753.56 6,860,725.84 73,824,791.44
current period
(1)
Provision
amount in the 398,543.79 897,570.06 574,101.01 1,870,214.86
current period
(1)
Disposal or 398,543.79 897,570.06 574,101.01 1,870,214.86
retirement
balance
III. Impairment
provision
balance
amount in the
current period
amount in the
current period
balance
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
IV. Book value
book value
book value
(2) Fixed asset without certificate of title
In RMB
Reasons for failure to obtain the
Item Book value
property right certificate
The formalities for newly built houses
Houses and buildings 695,125,331.52
are being processed
(3) Disposal of fixed assets
In RMB
Item Ending balance Beginning balance
Disposal of fixed assets 14,868.65 0,00
Total 14,868.65
In RMB
Item Ending balance Beginning balance
Construction in process 463,232,352.92 406,258,146.69
Total 463,232,352.92 406,258,146.69
(1) Construction in progress
In RMB
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Construction of
Maoshan
Intelligent
Manufacturing
Base
infrastructure
Robam Mansion
project
Project of the
First Production 663,716.80 663,716.80 5,941,592.92 5,941,592.92
Department
Customized
management 4,922,885.32 4,922,885.32 5,505,845.75 5,505,845.75
software
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Project of the
Third Production 747,113.74 747,113.74 3,855,078.16 3,855,078.16
Department
Project of the
Second
Production
Department
Other smaller
projects
Total 463,232,352.92 463,232,352.92 406,258,146.69 406,258,146.69
(2) Current changes in major projects under construction
In RMB
Amou
Propor Includ
nt Accu Interes
Increa tion of ing:
transfe Other mulate t
sed accum capital
rred decrea d capital
Begin amoun Endin ulative Projec ized
Name into ses in amoun ization Fundi
Budge ning t in g constr t interes
of fixed the t of rate in ng
t balanc the balanc uction progre ts in
item assets curren capital the source
e curren e invest ss the
in the t ized curren
t ment curren
curren period interes t
period in the t
t t period
budget period
period
Constr
uction
of
Maosh
an
Intelli
gent 86.27
Manuf %
acturi
ng
Base
infrast
ructur
e
Roba
m
Mansi 35.05
on %
projec
t
Total 988,41 5,877. 3,301. ,888.1 0,290.
In RMB
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Item Houses and buildings Total
I. Original book value
period
current period
(1) Disposal 3,146,563.11 3,146,563.11
II. Accumulated depreciation
period
(1) Provision 2,662,033.50 2,662,033.50
current period
(1) Disposal 129,089.76 129,089.76
III. Impairment provision
period
(1) Provision
current period
(1) Disposal
IV. Book value
Other description:
(1) Intangible assets
In RMB
Item Land use right 3. Patent right Software Trademark Total
I. Original book
value
balance
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
amount in the 2,043,855.39 2,043,855.39
current period
(1)
Purchase
(2)
Internal research
and development
(3)
Increased amount
in business
combination
(4) Transfer from
construction in 1,277,817.66 1,277,817.66
progress
amount in the
current period
(1)
Disposal
balance
II. Accumulated
amortization
balance
amount in the 2,248,848.08 561,538.46 2,729,064.83 1,231,231.12 6,770,682.49
current period
(1)
Provision
amount in the
current period
(1)
Disposal
balance
III. Impairment
provision
balance
amount in the
current period
amount in the
current period
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
balance
IV. Book value
book value
book value
(1) Original book value of goodwill
In RMB
Decrease in
Increase in the current
the current
period
Name of investee or item that generates Beginning period
Ending balance
goodwill balance Generated by
business Disposal
combination
Shengzhou Kinde Intelligent Kitchen
Appliances Co., Ltd.
Total 80,589,565.84 80,589,565.84
(2) Goodwill impairment provision
In RMB
Increase in Decrease in
Name of investee or item that generates the current the current
Beginning balance period period Ending balance
goodwill
Provision Disposal
Shengzhou Kinde Intelligent Kitchen
Appliances Co., Ltd.
Total 20,015,733.28 20,015,733.28
In RMB
Increased amount Amount of
Beginning
Item in the current amortization in Other decreases Ending balance
balance
period the current period
Office decoration
expenses
Service fee 568,331.27 422,287.67 181,450.61 809,168.33
Brand
endorsement cost
Consulting fee 78,916.67 11,567.53 32,711.45 57,772.75
Environmental
protection costs
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Total 5,852,899.90 1,377,251.43 2,079,639.11 5,150,512.22
(1) Deferred income tax assets before offset
In RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Credit impairment
provision
Deferred income tax
assets before offset
recognized based on 1,039,899,206.63 155,984,881.00 775,373,813.20 116,306,071.98
the provisional
estimated expenses
Changes in the fair
value of other equity
instrument
investments
Deferred income tax
assets before offset
recognized based on
the deferred income
Asset impairment
provision
Unrealized profits of
internal transactions
Deferred income tax
assets before offset
recognized due to
equity incentive
Unrecognized
financial expenses
Total 2,454,605,891.69 375,644,313.06 2,216,982,717.85 340,811,345.96
(2) Deferred income tax liabilities before offset
In RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Asset appraisal
appreciation arising
from business
combination where
the acquired company
is not controlled by
the same party after
the combination
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Temporary taxable
difference incurred
from pre-tax 123,729,002.53 18,559,350.38 125,852,613.90 18,877,892.09
deduction of fixed
assets
Total 143,259,750.33 21,488,962.55 147,386,230.51 22,107,934.58
(3) Deferred income tax assets or liabilities presented in net amount after offset
In RMB
Amount of deferred
Initial amount of
income tax assets Ending balance of Beginning balance of
deferred income tax
offset against deferred deferred income tax deferred income tax
Item assets offset against
income tax liabilities assets or liabilities assets or liabilities
deferred income tax
at the end of the after offset after offset
liabilities
period
Deferred income tax
assets
Deferred income tax
liabilities
(4) Presentation of unrecognized deferred income tax assets
In RMB
Item Ending balance Beginning balance
Deductible tax losses 62,061,288.62 44,298,409.84
Total 62,061,288.62 44,298,409.84
(5) The deductible losses of unrecognized deferred income tax assets will be due in the following years
In RMB
Year Ending amount Beginning amount Remarks
Total 62,061,288.62 44,298,409.84
In RMB
Ending balance Beginning balance
Item
Book balance Impairment Book value Book balance Impairment Book value
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
provision provision
Prepayments
for equipment 2,123,363.72 2,123,363.72 4,082,671.76 4,082,671.76
purchase
Engineering
mortgage 59,751,206.40 12,872,011.37 46,879,195.03 48,666,572.69 3,315,747.32 45,350,825.37
housing*1
Total 61,874,570.12 12,872,011.37 49,002,558.75 52,749,244.45 3,315,747.32 49,433,497.13
Other description:
*1. It refers to the engineering mortgage housing and parking space that the Company has signed a debt
restructuring agreement at the end of the period and completed the procedures for purchasing houses through
online signing, with a total value of RMB 59,751,200 and a provision for impairment of RMB 12,872,000 Please
refer to the relevant description in 2. The Company's debt restructuring matters of Section XV Other Important
Matters of this report.
(I)Short-term borrowing classification
In RMB
Item Ending balance Beginning balance
Credit borrowings*1 62,650,000,00 51,150,000,00
Mortgaged borrowings*2 13,500,000,00
Accounts receivable factoring 6,715,891,92 573,429,99
Total 82,865,891,92 51,723,429,99
Description on the classification of short-term borrowings:
*1: Shengzhou Kinde, a subsidiary of the Company, has obtained a working capital credit loan from
Shaoxing Shengzhou Branch of Bank of Communications and Shaoxing Shengzhou Branch of China Construction
Bank. The loan has a term of 1 year and an interest rate range of 3.40% - 3.70%.
*2: Shengzhou Kinde, a subsidiary of the Company, has mortgaged a portion of its new factory building to
Shaoxing Shengzhou Guangtong Branch of Bank of Communications for a working cap ital loan. The loan has a
term of 1 year and an interest rate of 3.35%.
In RMB
Type Ending balance Beginning balance
Banker’s acceptance 795,406,054.79 872,550,306.86
Total 795,406,054.79 872,550,306.86
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(1) Presentation of accounts payable
In RMB
Item Ending balance Beginning balance
Payment for materials 1,059,832,651.57 1,179,804,339.04
Payment for expenses 1,217,692,019.85 1,004,448,565.06
Payment for construction 194,896,770.92 202,679,315.68
Payment for equipment 27,872,418.40 31,822,947.53
Total 2,500,293,860.74 2,418,755,167.31
Note: As of June 30, 2023, the balance of important accounts payable with an age of more than one year
totaled RMB 54,451,132.43, mainly involving the unsettled project payments and expenses.
In RMB
Item Ending balance Beginning balance
Advances on sales 941,928,841.93 959,915,567.03
Total 941,928,841.93 959,915,567.03
(1) Presentation of employee compensation payable
In RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
I. Short-term
remuneration
II. Post-employment
benefits-defined 3,696,456.80 31,866,055.19 33,632,928.80 1,929,583.19
contribution plan
III. Termination
benefits
Total 153,942,329.88 449,854,387.47 534,731,263.24 69,065,454.11
(2) Presentation of short-term employee compensation
In RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
subsidies and allowances
Including: medical 4,212,988.20 20,091,043.23 23,144,243.38 1,159,788.05
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
insurance
Work-
related injury insurance
education expenses
Total 150,070,271.37 417,416,219.82 500,581,551.15 66,904,940.04
(3) Presentation of the defined contribution plans
In RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
insurance
Total 3,696,456.80 31,866,055.19 33,632,928.80 1,929,583.19
In RMB
Item Ending balance Beginning balance
Corporate income tax 120,316,589.51 70,376,526.39
VAT 88,178,502.55 56,957,133.24
House tax 10,992.77 10,345,173.49
Land use tax 4,382,947.50
City maintenance and construction tax 6,212,384.11 3,805,759.15
Individual income tax 2,128,408.21 2,226,988.94
Education surcharge 2,662,450.29 1,631,039.59
Stamp tax 215,273.42 1,538,692.42
Local education surcharge 1,774,966.96 1,087,359.86
Total 221,499,567.82 152,351,620.58
In RMB
Item Ending balance Beginning balance
Other payables 281,333,439.52 281,878,208.25
Total 281,333,439.52 281,878,208.25
(1) Other amounts payable presented by nature
In RMB
Item Ending balance Beginning balance
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Security deposits payable 268,251,005.52 265,582,978.77
Collections by a third party 3,509,947.18 7,285,543.45
Guarantee deposits payable 5,425,488.88 6,122,832.30
Others 4,146,997.94 2,886,853.73
Total 281,333,439.52 281,878,208.25
Note: As of June 30, 2023, the important other accounts payable with an age of more than one year totaled
RMB 246,327,416.93, mainly involving the sales deposits.
In RMB
Item Ending balance Beginning balance
Lease liabilities due within one year 3,970,613.16 5,720,175.21
Total 3,970,613.16 5,720,175.21
In RMB
Item Ending balance Beginning balance
Output VAT to be carried forward 112,459,867.60 120,126,501.73
Total 112,459,867.60 120,126,501.73
In RMB
Item Ending balance Beginning balance
Lease payment amount 20,814,370.46 28,173,738.18
Unrecognized financial expenses -2,728,137.86 -3,864,596.28
Non-current liabilities due within one
-3,970,613.16 -5,720,175.23
year after reclassification
Total 14,115,619.44 18,588,966.67
In RMB
Beginning Increase in the Decrease in the Cause of
Item Ending balance
balance current period current period formation
Government
grants
Total 123,912,110.43 4,900,000.00 9,823,767.55 118,988,342.88
Items with government grants:
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
In RMB
Amount
included
Added Amount Amount
in non-
subsidy included in of cost
Beginning operating Other Ending Related to
Liability item amount in other income deduction
balance income changes balance assets/incomes
the current in the current in current
in the
period period period
current
period
Subsidies for
factory
buildings,
infrastructure
Related to
construction, 36,988,382.11 961,898.11 36,026,484.00
assets
equipment, etc.
in new
Chengnan
District
Funds for
intelligent
manufacturing,
integrated Related to
standard and assets
new model
application
program
Construction of
production line
with an annual
Related to
output of 2.25 19,757,289.36 1,288,947.10 18,468,342.26
assets
million sets of
kitchen
appliances
Intelligent
unmanned
factory project Related to
based on 5G and assets
cloud
technology
Technological
upgrading for Related to
manufacturing assets
enterprises
Construction
project of
kitchen Related to
appliance R&D, assets
design and
testing center
Construction of
production line
with an annual
Related to
output of 1.08 3,569,352.75 341,245.58 3,228,107.17
assets
million sets of
built-in kitchen
appliances
Technological 1,842,576.75 181,798.36 1,660,778.39 Related to
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
upgrading assets
project with an
annual output of
Robam Future Related to
Factory Project assets
Construction of
digital
intelligent Related to
workshop for assets
smart home
appliances
Development of
new generation
of
environmentally-
Related to
friendly energy- 340,374.47 95,325.46 245,049.01
assets
saving kitchen
appliances and
their production
line
Recycling-
Related to
centered renewal 268,856.49 45,794.94 223,061.55
assets
project
Academician &
Related to
expert work 166,251.24 21,860.04 144,391.20
assets
station
Kitchen
appliance R&D, Related to
design and assets
testing center
Construction of
the digital
workshop with
Related to
an annual output 13,680.19 5,500.20 8,179.99
assets
of 2.25 million
sets of kitchen
appliances
In RMB
Increase and decrease of this change (+, -)
Beginning Shares Ending
balance Issue of new Bonus converted balance
Others Subtotal
shares shares from capital
reserve
Total
number of
.00 .00
shares
In RMB
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Capital (stock)
premium
Other capital reserves 8,198,332.91 3,473,641.59 11,671,974.50
Total 409,997,665.58 3,473,641.59 413,471,307.17
In RMB
Increase in the current Decrease in the
Item Beginning balance Ending balance
period current period
Share repurchase 199,995,742.59 199,995,742.59
Total 199,995,742.59 199,995,742.59
In RMB
Amount of the current period
Less: amount Less: amount
included in included in
Amount
other other
incurred Amount
comprehensive comprehensive Amount
Beginning before Less: after tax
Item incomes incomes after tax Ending balance
balance income income attributable
previously and previously and attributable
tax in tax to the
then then to minority
the expenses parent
transferred transferred shareholders
current company
into the into current
period
current profit retained
or loss earnings
I. Other
comprehensive
incomes that
- -
cannot be
reclassified
into profit or
loss
Changes
in the fair
value of other - -
equity 100,157,634.16 100,157,634.16
instrument
investments
Total other
- -
comprehensive
incomes
In RMB
Item Beginning balance Increase in the current Decrease in the Ending balance
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
period current period
Statutory surplus
reserve
Total 474,516,412.50 474,516,412.50
In RMB
Item Current period Previous period
Undistributed profit at the end of
previous period before adjustment
Undistributed profit at the beginning
of the period after adjustment
Add: Net profits attributable to owners
of the parent company in the current 829,718,350.69 1,572,404,918.21
period
Ordinary share dividend
transferred to capital stock
Undistributed profit at the end of the
period
In RMB
Amount of the current period Amount of the previous period
Item
Income Cost Income Cost
Main business 4,793,316,106.76 2,305,082,060.11 4,317,490,105.88 2,205,131,842.03
Other businesses 141,553,693.39 67,013,911.39 126,819,993.81 34,888,040.50
Total 4,934,869,800.15 2,372,095,971.50 4,444,310,099.69 2,240,019,882.53
In RMB
Item Amount of the current period Amount of the previous period
City maintenance and construction tax 19,865,052.45 15,541,302.70
Education surcharge 14,189,320.42 11,100,930.49
House tax 1,211,155.82 309,227.61
Stamp tax 1,306,922.24 1,176,949.93
Vehicle and vessel usage tax 5,139.84 9,939.84
Land use tax -4,374,871.70 -4,382,947.50
Others 5,252.13 4,621.17
Total 32,207,971.20 23,760,024.24
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
In RMB
Item Amount of the current period Amount of the previous period
Marketing service expenses 650,120,122.89 631,391,446.17
Advertisement expenses 356,749,434.59 259,175,406.07
Employee compensation 166,363,948.22 139,790,625.89
Booth decoration expenses 60,230,248.91 59,578,022.62
Promotional activity expenses 33,830,183.32 18,422,096.45
Material consumption 38,389,111.98 33,049,395.80
Travel expenses 11,697,748.47 6,801,054.02
Intermediary service fees 10,695,310.63 7,477,610.64
Rental fees 7,933,192.97 8,555,672.36
Business hospitality cost 9,309,526.51 7,472,828.11
Office expenses 7,850,063.78 4,560,789.33
Others 7,652,481.14 8,429,642.06
Total 1,360,821,373.41 1,184,704,589.52
In RMB
Item Amount of the current period Amount of the previous period
Employee remuneration 109,523,028.03 91,121,750.84
Depreciation and amortization 31,430,035.98 25,271,929.68
Consulting service fees 13,684,786.20 12,229,974.53
Maintenance expenses 2,281,377.24 10,083,182.01
Office expenses 6,714,440.34 6,639,136.07
Rental and property fees 4,762,887.30 5,712,938.91
Business hospitality cost 4,660,750.07 4,374,301.07
Travel expenses 4,142,395.01 3,083,013.05
Communication expense 3,460,975.01 2,918,739.13
Costs of equity incentive 3,473,641.59 3,998,366.27
Travel expenses 2,465,253.34 2,285,073.79
Material consumption 4,742,269.13 4,431,994.70
Others 12,083,977.01 11,433,464.52
Total 203,425,816.25 183,583,864.57
In RMB
Item Amount of the current period Amount of the previous period
Employee remuneration 88,567,764.03 78,436,915.06
Direct input 65,160,510.13 73,217,115.42
Depreciation and amortization 7,419,085.38 7,636,633.77
Design fees 2,146,030.75 2,899,636.01
Other expenses 9,440,750.86 7,178,345.27
Total 172,734,141.15 169,368,645.53
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
In RMB
Item Amount of the current period Amount of the previous period
Interest expenses 2,707,272.10 1,018,439.59
Less: Interest income 69,274,034.42 60,042,815.83
Add: foreign exchange gain/loss -3,213,064.29 -3,940,324.55
Add: other expenses 820,841.52 689,241.88
Total -68,958,985.09 -62,275,458.91
In RMB
Sources generating other incomes Amount of the current period Amount of the previous period
Financial support fund to boost the
corporate development
Amortization of deferred income 9,823,767.55 8,354,145.46
Embedded software tax refund 9,453,997.74 23,286,694.84
Special funds for industrial
development
VAT exemption or reduction 922,350.00 10,643.41
Post allowance and social insurance
allowance
Handling fee refund 684,354.91 482,308.94
R&D input grants 382,847.00
Patent awards 1,175,521.65
Other grants 648,750.00 5,000.00
Total 70,659,558.76 94,070,746.70
In RMB
Item Amount of the current period Amount of the previous period
Income from long-term equity
investments accounted for using the -1,263,184.05 -2,947,887.32
equity method
Investment income during holding of
financial assets for trading
Total 21,723,618.81 19,168,941.11
In RMB
Item Amount of the current period Amount of the previous period
Bad debt losses on notes receivable 14,373,972.06 163,813,946.01
Bad debt losses from accounts
receivable
Bad debt losses of other receivables -2,215,366.04 4,029,453.07
Total 23,290,586.40 9,024,313.93
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
In RMB
Item Amount of the current period Amount of the previous period
Loss from obsolete inventory and from
impairment of the cost of contract 5,634,807.91 24,056,013.60
performance
Loss from non-current asset impairment -9,556,264.05
Total -3,921,456.14 24,056,013.60
In RMB
Sources of asset disposal income Amount of the current period Amount of the previous period
Non-current asset disposal income -711,723.90 37,838.75
Including: income from disposal of
-711,723.90 37,838.75
fixed assets
Right-of-use asset disposal
income
In RMB
Amount included in the
Amount of the current Amount of the previous
Item current non-recurring profit
period period
or loss
Liquidated damages and
fines
Non-current asset scrapping
income
Others 2,803,549.50 2,682,807.72 2,803,549.50
Total 2,803,959.50 2,696,007.72 2,803,959.50
In RMB
Amount included in the
Amount of the current Amount of the previous
Item current non-recurring profit
period period
or loss
External donations 1,120,457.50 1,000,077.70 1,120,457.50
Amercement outlay 14,450.00 56,677.00 14,450.00
Losses from non-current
asset damage or retirement
Others 314,293.04 429,381.96 314,293.04
Total 1,449,874.49 1,558,155.13 1,449,874.49
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(1) Presentation of income tax expenses
In RMB
Item Amount of the current period Amount of the previous period
Current income tax expenses 187,282,866.64 183,792,350.28
Deferred income tax expenses -35,451,939.13 -52,619,931.42
Total 151,830,927.51 131,172,418.86
(2) Adjustment of accounting profit and income tax expense
In RMB
Item Amount of the current period
Total profit 975,073,186.16
Income tax expense calculated based on statutory/applicable
tax rate
Effects of the subsidiaries’ application of different tax rates -820,020.02
Effects of the adjustment of income tax in previous period 25,904.18
Effects of the non-deductible costs, expenses and losses 1,548,109.31
Effects of the deductible temporary differences or
deductible losses of unrecognized deferred income tax 4,626,478.50
assets in the current period
Profit and loss of joint ventures and associated companies
accounted for by equity method
Income tax expense 151,830,927.51
(1) Other cash received in relation to operating activities
In RMB
Item Amount of the current period Amount of the previous period
Interest revenue on deposits 69,274,034.42 60,042,815.83
Government grants 56,322,854.76 63,679,906.40
Guarantee and security deposits 14,303,618.62 14,850,829.06
Letter of credit and acceptance bill
margin
Revenue collected and payment made
on behalf of other agencies
Cash reserve 1,343,606.65 1,233,346.31
Other payments 6,266,385.36 2,891,773.89
Total 162,988,244.01 177,926,833.07
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(2) Other cash paid related to operating activities
In RMB
Item Amount of the current period Amount of the previous period
Period expenses 1,243,206,922.01 1,141,993,734.77
Letter of credit and acceptance bill
margin
Revenue collected and payment made
on behalf of other agencies
Guarantee and security deposits 8,133,397.66 13,629,302.87
Cash reserve 4,097,943.96 8,383,255.70
Others 1,336,189.77 5,565,795.10
Total 1,288,457,982.86 1,200,889,342.46
(3) Other cash received in relation to financing activities
In RMB
Item Amount of the current period Amount of the previous period
Income from accounts receivable
factoring
Total 6,482,178.88 1,012,732.06
(4) Other cash paid in relation to financing activities
In RMB
Item Amount of the current period Amount of the previous period
Attached refund of recourse factoring 3,516,183.32
Rental 3,212,200.53 3,020,626.80
Total 3,212,200.53 6,536,810.12
(1) Supplementary information of Cash Flow Statement
In RMB
Amount of the
Supplementary information Current amount
previous period
Net profit 823,242,258.65 721,471,840.03
Add: Asset impairment provision 3,921,456.14 -24,056,013.60
Loss from credit impairment -23,290,586.40 -9,024,313.93
Depreciation of fixed assets, depreciation of oil and gas assets, and
depreciation of productive biological assets
Depreciation of right-of-use assets 2,662,033.50 2,735,187.20
Amortization of intangible assets 6,770,682.50 6,787,723.52
Amortization of long-term deferred expenses 2,079,639.11 2,454,162.19
Losses arising from disposal of fixed assets, intangible assets and other
long-term assets (gains expressed with "-")
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Losses on disposal of fixed assets (gains indicated with "-") 673.95 72,018.47
Losses from fair value change (gains expressed with “-”)
Financial expenses (profit shall be indicated with"-") -1,152,076.14 -2,921,884.96
Investment losses (gains expressed with “-”) -21,723,618.81 -19,168,941.11
Decrease in deferred income tax assets (increase shall be indicated
-34,832,967.10 -54,426,406.39
with “-”)
Increase in deferred income tax liabilities (decrease shall be indicated
-618,972.03 1,806,474.98
with “-”)
Decrease in inventories (increase shall be indicated with “-”) 83,112,866.12 -28,800,735.18
Decrease in operating receivables (increase shall be indicated with “-”) 80,656,601.27 -137,525,667.47
Increase in operating payables (decrease expressed with "-") -37,946,892.42 -196,645,420.26
Net cash flow from operating activities 959,732,853.23 322,855,122.33
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets acquired under financing leases
Ending balance of cash 5,777,869,909.08 3,327,149,844.76
Less: cash beginning balance 5,196,414,341.74 3,719,988,820.35
Add: ending balance of cash equivalents
Less: cash equivalents at the beginning of the period
Net increase in cash and cash equivalents 581,455,567.34 -392,838,975.59
(2) Composition of cash and cash equivalents
In RMB
Item Ending balance Beginning balance
I.Cash 5,777,869,909.08 5,196,414,341.74
Including: cash on hand 182,584.13 85,806.05
deposits available for payment
at any time
Other cash and cash equivalents
available for payment at any time
III.Balance of cash and cash
equivalents at the end of the period
In RMB
Item Ending book value Reasons for limit
Letters of guarantee and bill
Cash and cash equivalents 100,908,470.98
acceptance margin
Cash and cash equivalents 13,000.00 ETC margin
Investment real estate 6,120,022.18 Collateral for bank loans
Fixed assets 95,880,347.37 Collateral for bank loans
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Total 202,921,840.53
(1) Foreign currency monetary item
In RMB
Ending balance in foreign Exchange rate for
Item Ending balance in RMB
currency conversion
Cash and cash equivalents
Including: USD 9,596,961.05 7.2258 69,345,721.16
Euro 11.92 7.8775 93.90
Australian Dollar 858.77 4.7992 4,121.41
Accounts receivable
Including: USD 3,338,013.85 7.2258 24,119,820.48
AUD 30.00 4.7992 143.98
Accounts received in
advance
Including: US Dollar 493,687.67 7.2258 3,567,288.37
Australian dollar 179,904.81 4.7992 863,399.16
(1) Basic information of government grants
In RMB
Amounts included in current
Type Amount Items
profits and losses
Financial support fund to
boost the corporate 44,730,000.00 Other income 44,730,000.00
development
Embedded software tax
refund
Technological upgrading for
manufacturing enterprises
Special funds for industrial
development
VAT exemption or
reduction
Post allowance and social
insurance allowance
Refund of individual income
tax handling fee
R&D input grants 382,847.00 Other income 382,847.00
Other grants 648,750.00 Other income 648,750.00
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
VIII. Changes in the scope of consolidated financial statements
Explanation on changes in the scope of consolidated financial statements due to other reasons (such as the establishment or
liquidation of subsidiary companies, etc.) and relevant circumstances:
On May 29, 2023, the Company invested in and established Robam Appliances Holding (HK) Co., Ltd., with a registered
capital of USD 500,000 and a shareholding ratio of 100%, which mainly operates investment business in Hong Kong. On June
with a registered capital of USD 500,000 and a shareholding ratio of 100%, which mainly opera tes the sales of kitchen
appliances in overseas markets. Currently, both companies have completed the registration with the Hong Kong government,
but the registered capital has not been in place and they have not been put into operation.
IX. Interests in Other Entities
(1) Composition of the Robam Group
Principal place Registration Nature of Shareholding ratio Acquisition
Subsidiary
of business place business Direct Indirect method
Businesses
Beijing Robam Sales of
combination
Appliances Beijing Beijing kitchen 100.00%
under common
Sales Co., Ltd. appliances
control
Shanghai Businesses
Sales of
Robam combination
Shanghai Shanghai kitchen 100.00%
Appliances under common
appliances
Sales Co., Ltd. control
Hangzhou
Sales of Acquisition
MingQi
Hangzhou Hangzhou kitchen 100.00% upon its
Electric Co.,
appliances establishment
Ltd.
De Dietrich
Household
Sales of Acquired
Appliances
Shanghai Shanghai kitchen 51.00% through
Trading
appliances investment
(Shanghai)
Co., Ltd.
Shengzhou
Business
Kinde Production and
combination
Intelligent sales of
Shengzhou Shengzhou 51.00% not under
Kitchen kitchen
common
Appliances appliances
control
Co., Ltd.
Hangzhou Asset, Acquisition
Robam Hangzhou Hangzhou investment 100.00% upon its
Fuchuang management, establishment
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Investment etc.
Management
Co., Ltd.
Zhejiang
Acquisition
Cookingfuture Smart kitchen
Shengzhou Shengzhou 32.13% upon its
Technology design
establishment
Co., Ltd.
Hangzhou
Sales of Acquisition
Jinhe Electric
Hangzhou Hangzhou kitchen 100.00% upon its
Appliances
appliances establishment
Co., Ltd.
Robam
Sales of Acquisition
International
Hong Kong Hong Kong kitchen 100.00% upon its
(HK) Trading
appliances establishment
Co., Ltd.
Robam Asset,
Acquisition
Appliances investment
Hong Kong Hong Kong 100.00% upon its
Holding (HK) management,
establishment
Co., Ltd. etc.
Explanation on the shareholding ratio in subsidiaries that differs from the voting right ratio in subsidiaries:
Note: The Company holds 50% or less voting rights in Zhejiang Cookingfuture Technology Co., Ltd., but still maintains
control over it. This is based on the fact that the Company has a controlling relationship with Shengzhou Kinde, so the
Company has a controlling relationship with its holding subsidiary Zhejiang Cookingfuture Technology Co., Ltd.
(2) Major non-wholly owned subsidiaries
In RMB
Gains/losses Dividend declared
Proportion of shares
attributable to and distributed to Ending balance of
Subsidiary held by minority
minority shareholders minority shareholders minority equity
shareholders
in the current period in the current period
Shengzhou Kinde
Intelligent Kitchen 49.00% -4,243,411.45 114,049,873.06
Appliances Co., Ltd.
Zhejiang
Cookingfuture 37.00% -2,232,758.49 8,596,471.29
Technology Co., Ltd.
(3) Main financial information of important partially-owned subsidiaries
In RMB
Ending balance Beginning balance
Non- Non-
Subsid Non- Curren Non- Curren
Curren curren Total Curren curren Total
iary curren Total t curren Total t
t t liabilit t t liabilit
t assets liabilit t assets liabilit
assets liabilit ies assets liabilit ies
assets ies assets ies
ies ies
Sheng 120,29 353,31 473,60 188,12 44,127 232,25 152,25 348,85 501,11 203,57 45,292 248,86
zhou 4,987. 2,096. 7,084. 8,143. ,626.9 5,770. 6,797. 5,702. 2,499. 6,227. ,175.5 8,403.
Kinde 90 86 76 55 5 50 00 41 41 80 0 30
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Intelli
gent
Kitche
n
Applia
nces
Co.,
Ltd.
Zhejia
ng
Cooki
ngfutu 18,369 26,709 25,723 32,393
re ,746.7 ,282.6 ,850.4 ,846.8
Techn 7 5 8 1
ology
Co.,
Ltd.
In RMB
Amount incurred in the current period Amount of the previous period
Total Cash flow Total Cash flow
Subsidiary Operating comprehen from Operating comprehen from
Net profit Net profit
income sive operating income sive operating
income activities income activities
Shengzhou
Kinde
- - - - - -
Intelligent 67,284,556 77,502,270
Kitchen .69 .79
.85 .85 .57 82 82 .76
Appliances
Co., Ltd.
Zhejiang
Cookingfu - - - - - -
ture 6,034,482. 6,034,482. 8,517,161. 593,200.02 3,614,071. 3,614,071. 10,664,349
Technolog 41 41 83 30 30 .92
y Co., Ltd.
(1) Important joint ventures or associates
Shareholding ratio Accounting
Name of joint treatment for
Principal place Registration Nature of
ventures or investment in
of business place business Direct Indirect
associates joint ventures
or associates
De Dietrich
Appliances Sales of
Trading Shanghai Shanghai kitchen 51.00% Equity method
(Shanghai) appliances
Co., Ltd.
Zhejiang
Tingshuo
Brand Hangzhou Hangzhou Retail 40.00% Equity method
Operation
Management
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Co., Ltd.
Shaoxing
Shuaige
Kitchen
Kitchen and
Shaoxing Shaoxing appliance 40.00% Equity method
Bathroom
manufacturing
Technology
Co., Ltd.
(2) Summary of the financial information of minor joint ventures and associates
In RMB
Ending balance/amount incurred in Beginning balance/amount of the
current period previous period
Joint venture:
Total book value of investment 3,272,876.08 3,824,460.03
Totals of the following items
calculated as per respective
shareholding proportion
--Net profit -551,583.95 162,760.00
-Total comprehensive income -551,583.95 162,760.00
Associated company:
Total book value of investment 4,182,445.49 4,894,045.59
Totals of the following items
calculated as per respective
shareholding proportion
--Net profit -711,600.10 -989,384.29
-Total comprehensive income -711,600.10 -989,384.29
X. Risks Related to Financial Instruments
Major financial instruments of the Company include accounts receivable, accounts payable, etc. See Note for
detailed description of these financial instruments. Risks related to these financial instruments and risk
management policies adopted by the Company to reduce such risks are outlined as follows. The management of
the Company manages and monitors such risk exposures to ensure to keep the risks above within limited scope.
Risk management conducted by the Company is to properly balance risk and income, minimize negative
impacts of the risks on the Company’s business performance and maximize benefits of the shareholders and other
equity investors. Based on the risk management objective, the Company’s basic risk management policy is to
determine and analyze all kinds of risks faced by the Company, establish appropriate risk bottom line for risk
management, and monitor all risks promptly and reliably to keep risks within a limited range.
? Market risk price risk
Since the Company sells its products at market prices, it may be affected by such price fluctuations.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
? Credit risk
As of Friday, June 30, 2023, the biggest credit risk exposure that may bring financial loss to the Company
mainly comes from the Company’s financial assets loss caused by the other party’s failure to perform its
obligations in the contract, particularly including the loss in the book value of recognized financial assets in the
consolidated balance sheet.
To reduce credit risk, the Company has a dedicated team responsible for determining the credit line,
conducting credit approval and implementing other monitoring procedures, to ensure that necessary measures are
taken to recover due debt. In addition, the Company reviews the recovery of each account payable on each
balance sheet date, so as to ensure sufficient bad debt provisions for unrecoverable accounts. Therefore, the
management of the Company holds that the credit risk faced by the Compa ny has been significantly reduced.
The credit risk of the Company’s liquid capital is low since it is deposited at banks with relatively high
credit rating.
Because the risk exposures of the Company are related to multiple contracting parties and multiple clients,
the Company has no major credit risk concentration.
The Company adopts necessary policies to ensure all of the clients involved in the sales of our products have
good credit record. The Company has no major credit risk concentration.
Total amount of the top five accounts receivable: RMB 1,388,323,304.88.
Total amount of the top five other accounts receivable: RMB 65,690,667.35
? Liquidity risk
Liquidity risk is faced by the Company where it cannot meet its financial obligations as they fall due. The
Company manages the liquidity risk by ensuring capital liquidity to fulfill its due obligations to avoid
unacceptable losses or damages to corporate reputation. The Company management has closely examined the
liquid assets of the Company and regularly analyzed the liability structure/term and bank lines and so on to endure
fund sufficiency. It is concluded that the Company has sufficient funds to meet the demands of short -term loans
and capital expenditure of the Company. Analysis of the financial assets an d financial liabilities of the Company
as per maturity of the undiscounted contract obligations remained is made as follows:
Balance on June 30, 2023:
Item Within 1 year 1-2 years 2-5 years Over 5 years Total
Financial assets
Cash and cash
equivalents
Financial assets
held for trading
Notes receivable 697,840,910.95 697,840,910.95
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Accounts
receivable
Other accounts
receivable
Financial
liabilities
Short-term
borrowings
Notes payables 795,406,054.79 795,406,054.79
Accounts
payable
Other payables 281,333,439.52 281,333,439.52
Payroll payable 69,065,454.11 69,065,454.11
Other current
liabilities
Non-current
liabilities due 3,970,613.16 3,970,613.16
within one year
Lease liabilities 3,760,929.49 5,367,442.53 4,987,247.42 14,115,619.44
? Sensitivity analysis of foreign exchange risk
The exchange rate risk borne by the Company is mainly associated with US Dollar, Euro, Australian Dollar,
etc. The foreign exchange risk borne by the Company is mainly associated with US Dollar (which shall be
changed according to relevant realities). The Company's main business activities are priced and settled in
Renminbi. As of June 30, 2023, the Company’s balances of assets and liabilit ies are in RMB (except for the
balance of the assets and liabilities in foreign currency in “Foreign currency monetary item" in this Note).
Exchange risk resulting from the assets and liabilities whose balances are in foreign currency may affect the
Company’s performance.
The Company pays close attention to the impact of change in exchange rate on the Company’s exchange risk.
Currently, the Company hasn’t adopted any measures to avoid foreign exchange risk.
XI. Disclosure of Fair Value
In RMB
Ending fair value
Item Fair value Fair value Fair value
measurement (Level measurement (Level measurement (Level Total
I. Continuous fair
-- -- -- --
value measurement
(I) Financial assets
held for trading
measured at fair value
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
with changes included
in current profit or
loss
(1) Financial products 2,315,606,606.83 2,315,606,606.83
(III) Investment in
other equity 2,116,023.22 2,116,023.22
instruments
Total assets measured
continuously at fair 2,317,722,630.05 2,317,722,630.05
value
II. Non-continuous
fair value -- -- -- --
measurement
unobservable parameters for the items involved in Level 3 continuous fair value measurement
Relationship
Significant between
June 30, 2023
Item Valuation techniques unobservable unobservable
Fair value
value value and fair
value
Optimal fair value Investment
financial products 2,315,606,606.83 —
estimation cost
Investment in other Optimal fair value Investment
equity instruments estimation cost
Note: Due to the deteriorating operating environment, operating conditions and financial status of the
invested company, Suzhou Industrial Park Ruican Investment Enterprise (Limited Partnership), the Company
measured its fair value at zero yuan as a reasonable estimate.
XII. Related Party and Related Party Transactions
Proportion of
Proportion of the Company's shares
Nature of
Parent company Registration place Registered capital voting right of the held by the parent
business
parent company company in the
Company
Hangzhou Robam Investment and
Hangzhou,
Industrial Group industrial RMB 60 million 49.68% 49.68%
Zhejiang
Co., Ltd. management
See Note "Composition of the Robam Group" for more about the Company’s subsidiaries
Name of other related parties Relation between other related parties and the Company
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Hangzhou Amblem Household Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Yuhang Robam Fuel Station Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Nbond Nonwovens Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Yuhang Yaguang Spray Coating Factory Other related parties
Hangzhou City Garden Hotel Co., Ltd. Other related parties
Hangzhou Bonyee Daily Necessity Technology Co., Ltd. Controlled by the same ultimate controlling party
Shaoxing Kinde Electric Appliances Co., Ltd. Other related parties
Hangzhou Guoguang Touring Commodity Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Xiaozhijia Health Care Product Co., Ltd. Controlled by the same ultimate controlling party
Hangzhou Linping ROBAM Charity Foundation Other related parties
Shaoxing Shuaige Kitchen and Bathroom Technology Co.,
Other related parties
Ltd.
Hangzhou Runqun Hardware Co., Ltd. Other related parties
(1) Related transactions regarding purchasing and selling goods and providing and accepting labor
services
Table of the purchasing of goods and receiving of labor services
In RMB
Whether exceeds
Description of the
Amount of the Trading limit the approved Amount of the
Related parties connected
current period approved limited or not previous period
transactions
(Y/N)
Hangzhou
Amblem Purchase of
Household Co., goods
Ltd.
Hangzhou
Yuhang Yaguang Receiving of
Spray Coating labor services
Factory
Hangzhou
Xiaozhijia Health Purchasing of
Care Product Co., goods
Ltd.
Shaoxing Shuaige
Kitchen and
Purchase of
Bathroom 439,198.72 439,198.72 No 376,177.00
goods
Technology Co.,
Ltd.
Hangzhou
Yuhang Robam Purchase of
Fuel Station Co., goods
Ltd.
Zhejiang
Tingshuo Brand
Receiving of
Operation 0 0 No 200,000.00
labor services
Management Co.,
Ltd.
Hangzhou
Guoguang Purchase of
Touring goods
Commodity Co.,
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Ltd.
Hangzhou
Bonyee Daily
Purchase of
Necessity 4,470.08 4,470.08 No 8,344.42
goods
Technology Co.,
Ltd.
Hangzhou
Receiving of
Runqun Hardware 3,569,947.74 3,569,947.74 No 0
labor services
Co., Ltd.
Table of goods sales/labor service provision
In RMB
Description of the Amount of the previous
Related parties Amount of the current period
connected transactions period
Hangzhou Amblem Household
Sale of goods 1,629,834.52 2,332,591.12
Co., Ltd.
Hangzhou linping ROBAM
Sale of goods 1,001,649.72 696,446.84
Charity Foundation
Hangzhou Nbond Nonwovens
Sale of goods 16,429.20 10,746.90
Co., Ltd.
(2) Related lease
The Company acts as the lessor:
In RMB
Rental income recognized in Lease income recognized in
Lessee Type of leased asset
the current period the previous period
Hangzhou Robam Industrial
Housing 14,400.00 14,400.00
Group Co., Ltd.
The Company acts as the Lessee:
In RMB
Rental expenses Variable lease
for simplified payments not
Interest expense
short-term leases included in the Increased right-
Rental paid incurred on lease
and leases of low- measurement of of-use assets
liabilities
Type value assets (if lease liabilities (if
of applicable) applicable)
Lessor
leased Amoun Amoun Amoun Amoun Amoun
asset Amoun Amoun Amoun Amoun Amoun
t t t t t
t of the t of the t of the t of the t of the
incurre incurre incurre incurre incurre
previou previou previou previou previou
d in the d in the d in the d in the d in the
s s s s s
current current current current current
period period period period period
period period period period period
Hangzh
ou
Robam
Industr Housin 275,01 275,01
ial g 2.28 2.28
Group
Co.,
Ltd.
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(1) Accounts receivable
In RMB
Ending balance Beginning balance
Name of item Related parties
Book balance Bad debt reserve Book balance Bad debt reserve
Hangzhou
Accounts Amblem
receivable Household Co.,
Ltd.
Hangzhou
Xiaozhijia Health
Prepayments 3,769.89
Care Product Co.,
Ltd.
Hangzhou Nbond
Accounts
Nonwovens Co., 12,000.00
receivable
Ltd.
Hangzhou linping
Accounts
ROBAM Charity 966,744.00
receivable
Foundation
(2) Accounts payable
In RMB
Book balance at the end of Initial book balance at the
Name of item Related parties
the period beginning of the period
Hangzhou Yuhang Robam Fuel
Accounts payable 3,033,735.55 2,548,095.18
Station Co., Ltd.
Hangzhou Runqun Hardware Co.,
Accounts payable 2,984,762.46
Ltd.
Hangzhou Amblem Household Co.,
Accounts payable 1,344,844.58 4,386,391.83
Ltd.
Hangzhou Xiaozhijia Health Care
Accounts payable 481,898.83
Product Co., Ltd.
Shaoxing Shuaige Kitchen &
Accounts payable 95,111.00 298,021.70
Bathroom Technology Co., Ltd.
Hangzhou Yuhang Yaguang Spray
Accounts payable 3,043,849.87
Coating Factory
Hangzhou Guoguang Touring
Accounts payable 6,963.19
Commodity Co., Ltd.
Hangzhou Yuhang Yaguang Spray
Other payables 200,000.00 200,000.00
Coating Factory
Hangzhou Amblem Household Co.,
Other payables 5,000.00
Ltd.
Hangzhou Guoguang Touring
Other payables 2,000.00 2,000.00
Commodity Co., Ltd.
XIII. Share Payment
?Applicable □Not applicable
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
In RMB
Total amount of equity instruments granted by the Company
in the current period
Total amount of equity instruments exercised by the
Company in the current period
Total amount of invalid equity instruments of the Company
in the current period
The exercise price of the 2021 Stock Option Incentive Plan
is RMB 36.57/share, with a remaining term of 1-2 years; the
The range of exercise price and remaining contract term of
exercise price of the 2022 Stock Option Incentive Plan is
the Company's outstanding stock options at the end of the
RMB 29.27/share, with a remaining term of 1-3 years; the
period.
exercise price of the 2023 Stock Option Incentive Plan is
RMB 22.51/share, with a remaining term of 1-3 years.
Other description
In April 2021, the Company granted stock options to 138 middle-level managers and key technical (business) backbone
personnel, with a total of 3.04 million shares and an exercise price of RMB 36.57 /share.
In April 2022, due to the failure to meet the exercise conditions of the first exercise period of the stock options under
the Company's 2021 Stock Option Incentive Plan and the departure of 4 incentive targets who no longer meet the incentive
conditions, the Company cancelled 1.264 million stock options.
In May 2023, due to the failure to meet the exercise conditions of the second exercise period of the stock options under
the Company's 2021 Stock Option Incentive Plan and the departure of 13 incentive targets who no longer meet the incentive
conditions, the Company cancelled 945,000 stock options.
In April 2022, the Company granted stock options to 282 middle-level managers and key technical (business) backbone
personnel, with a total of 4.78 million shares and an exercise price of RMB 29.27 /share.
In May 2023, due to the failure to meet the exercise conditions of the first exercise period of the stock options under the
Company's 2022 Stock Option Incentive Plan and the departure of 13 incentive targets who no longer meet the incentive
conditions, the Company cancelled 1,609,000 stock options.
On April 25, 2023, the Company held the 14th meeting of the 5th Board of Directors, deliberating and adopting the
Proposal on 2023 Stock Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals. On May
options were actually granted, with a total of 325 incentive targets, 5.52 million options granted and an exercise price of R MB
?Applicable □Not applicable
In RMB
Method for determining the fair value of equity instruments The Company evaluates the fair value of stock options
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
on the grant date using the internationally recognized Black-Scholes option
pricing model.
basis for determining the number of vested equity
Best estimate of the number of vested equity instruments
instruments
Reasons for material differences between the current
Not Applicable
estimate and the previous estimate
Cumulative amount of equity-settled share-based payments
included in the capital reserve
Total expense recognized for equity-settled share-based
payments in the current period
XIV. Commitments and Contingencies
(1) Major commitments on the balance sheet date
The Company committed to investing RMB 4 million in Zhejiang Tingshuo Brand Operation Management Co., Ltd., of
which RMB 2 million has been paid in, accounting for 40% of the shares. The remaining RMB 2 million has not been paid in.
In addition to the above commitments, as of the day of submission of the Financial Statements, the Company has no other major
commitments.
XV. Events After the Balance Sheet Date: None
XVI. Other Significant Events
As of June 30, 2023, the Company's situation regarding the signing of the engineering mortgage housing
agreement and the completion of procedures for purchasing houses through online signing is as follows:
Including: Completion of Amount required in
procedures for online signing case of unfinished
Amount of debt repayment
Item and delivery of houses procedures for online
agreement signed
Amount required for the signing and delivery of
procedures houses
Real estate clients 329,839,806.74 70,422,825.01 259,416,981.73
Total 329,839,806.74 70,422,825.01 259,416,981.73
The Company signed a engineering mortgage housing agreement with the aforementioned real estate clients, involving a
total accounts receivable balance of RMB 329,839,800. The procedures for online signing and delivery of the portion of RMB
value of the real estate used for debt repayment at the time of debt restructuring is presented in the item of other non -current
assets, with a fair value of the portion of RMB 70,422,800 confirmed through public market inquiry. The Company paid a
price difference of RMB 2,588,700 in cash. At the time of debt restructuring, there was no profit or loss from the restructur ing.
The procedures for online signing and filing of the houses have not yet been completed for the remaining portion of RMB
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
bad debt provision at an expected credit loss rate of 20%.
As of June 30, 2023, the Company has no other significant events to be disclosed.
XVII. Notes to Main Items of the Financial Statements of the Parent Company
(1) Classified disclosure of accounts receivable
In RMB
Ending balance Beginning balance
Book balance Bad debt reserve Book balance Bad debt reserve
Type Percenta Book Percenta Book
Percenta ge of value Percenta ge of value
Amount Amount Amount Amount
ge (%) provisio ge (%) provisio
n n
Account
s
receivab
le with 1,491,0 1,543,9
individu 18,527. 53.38% 63.79% 55,986. 58.11% 62.96%
,758.57 ,768.67 ,395.33 ,590.99
al bad 24 32
debt
provisio
ns
Inclu
ding:
Bad
debt
provisio 951,136 539,881 972,062 571,893
ns by ,758.57 ,768.67 ,395.33 ,590.99
individu
al item
Account
s
receivab
le with a 1,302,1 1,226,3 1,112,9 1,048,6
collectiv 30,129. 46.62% 5.82% 59,566. 30,148. 41.89% 5.78% 49,937.
e bad 47 16 56 98
debt
provisio
n
Inclu
ding:
Account
s
receivab 139,822 139,822 99,792, 99,792,
le ,432.68 ,432.68 768.36 768.36
grouped
accordin
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
g to
related
parties
Multiple
account
s
receivab
le which
are
grouped
by
expecte
d credit
loss 1,162,3 1,086,5 1,013,1
based 07,696. 41.61% 6.52% 37,133. 37,380. 38.13% 6.34%
on their 79 48 20
age
characte
ristics
and with
a
collectiv
e bad
debt
provisio
n
Total 48,656. 07,321. 36.77% 41,334. 86,134. 42,605. 39.01% 43,528.
% %
Bad debt provisions by individual item:
In RMB
Ending balance
Name Percentage of
Book balance Bad debt reserve Reasons for provision
provision
Unit 1 657,106,467.98 657,106,467.98 100.00% Debt default
Unit 2 527,846,545.67 158,353,963.70 30.00% Overdue debt
Unit 3 116,422,160.38 47,034,405.36 40.40% Overdue debt
Unit 4 31,086,961.45 6,217,392.29 20.00% Overdue debt
Unit 5 28,139,039.02 19,225,685.81 68.32% Overdue debt
Unit 6 24,428,569.14 6,195,424.47 25.36% Overdue debt
Unit 7 22,763,973.13 15,934,781.19 70.00% Debt default
Unit 8 14,080,420.74 8,587,655.52 60.99% Overdue debt
Unit 9 13,773,333.34 3,646,561.03 26.48% Overdue debt
Unit 10 13,671,133.59 6,306,115.04 46.13% Overdue debt
Unit 11 8,644,489.50 6,051,142.65 70.00% Debt default
Unit 12 8,009,318.82 2,345,903.11 29.29% Overdue debt
Unit 13 5,797,448.18 4,058,213.73 70.00% Debt default
Unit 14 4,204,830.93 2,943,381.65 70.00% Debt default
Unit 15 3,660,575.03 1,415,427.52 38.67% Overdue debt
Expected to be
Unit 16 11,383,260.34 5,714,237.52 50.20% exposed to recovery
risk
Total 1,491,018,527.24 951,136,758.57
Collective bad debt provision: for multiple accounts receivable grouped by expected credit loss based on their age
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
characteristics, their bad debts are provided for collectively.
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision
With 1 year 985,880,622.44 49,294,031.12 5.00%
More than 5 years 1,204,199.73 1,204,199.73 100.00%
Total 1,162,307,696.79 75,770,563.31
Description on basis for determining combination：
Collective bad debt provision: Accounts receivable grouped according to related parties with a collective bad debt provision
In RMB
Ending balance
Name
Book balance Bad debt reserve Percentage of provision
Accounts receivable
grouped according to related 139,822,432.68
parties
Total 139,822,432.68
Description on basis for determining combination：
If the bad debt provisions for accounts receivable is recognized in accordance with the expected general credit loss model,
please disclose the relevant information of the bad debt provisions in the same manner as the disclosure of other accounts
receivable.
□Applicable ?Not applicable
Disclosed based on the aging
In RMB
Aging Ending balance
Within 1 year (including 1 year) 1,399,469,771.05
Within 1 year (including 1 year) 1,399,469,771.05
More than 3 years 17,476,562.90
More than 5 years 4,848,162.88
Total 2,793,148,656.71
(2) Bad debt provision, and its recovery or reversal in the current period
Bad debt provision in the current period:
In RMB
Beginning Amount of change in the current period
Type Ending balance
balance Provision Recovery or Write-off Others
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
reversal
Bad debt
reserves for 1,036,342,605.9 1,026,907,321.8
accounts 1 8
receivable
Total 29,121,357.11 38,556,641.14
(3) Top five debtors with the largest ending balances of accounts receivable
In RMB
Proportion in the total
Ending balance of accounts Ending balance of bad debt
Unit ending balance of accounts
receivable reserves
receivable
Unit 1 527,846,545.62 18.90% 158,353,963.69
Unit 2 452,376,997.98 16.19% 452,376,997.98
Unit 3 147,390,416.19 5.28% 7,369,520.81
Unit 4 95,125,955.20 3.40% 95,125,955.20
Unit 5 83,153,664.86 2.98% 4,157,683.24
Total 1,305,893,579.85 46.75%
(4) Amount of assets and liabilities arising from the transfer of accounts receivable and continued
involvement
Asset item Ending balance Liability item Ending balance
Accounts receivable
factoring
In RMB
Item Ending balance Beginning balance
Dividends receivable 10,200,000.00
Other accounts receivable 94,065,660.85 73,700,676.77
Total 94,065,660.85 83,900,676.77
(1) Dividends receivable
In RMB
Item (or investee) Ending balance Beginning balance
Shengzhou Kinde Intelligent Kitchen
Appliances Co., Ltd.
Total 10,200,000.00
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(2) Other accounts receivable
In RMB
Initial book balance at the beginning of
Nature of receivable Book balance at the end of the period
the period
Collections by a third party 66,011,015.04 50,695,825.81
Security/guarantee deposits 32,855,617.64 30,213,932.48
Related transactions 4,064,000.00 4,064,000.00
Withholdings 5,886,431.32 4,337,682.15
Cash reserve 3,227,223.76 1,972,794.63
Others 1,026,223.49 6,022.00
Total 113,070,511.25 91,290,257.07
In RMB
Phase I Phase II Phase III
Expected credit loss Expected credit loss
Bad debt reserve Expected credit loss Total
over the entire over the entire
over the next 12
duration (without duration (with credit
months
credit impairment) impairment)
Balance as of January
Balance on January 1,
period
Provision in the
current period
Balance as of June 30,
Changes in the book balance with significant change in amount of the loss provision in the current period
□Applicable ?Not applicable
Disclosed based on the aging
In RMB
Aging Ending balance
Within 1 year (including 1 year) 87,477,200.35
Within 1 year (including 1 year) 87,477,200.35
More than 3 years 14,098,169.25
More than 5 years 11,021,952.40
Total 113,070,511.25
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Bad debt provision in the current period:
In RMB
Amount of change in the current period
Beginning Ending
Type Recovery or
balance Provision Write-off Others balance
reversal
Bad debt
provision for
other
receivables
Total 17,589,580.30 1,415,270.10 19,004,850.40
In RMB
Proportion in the
total ending
Nature of Ending balance of
Unit Ending balance Aging balance of other
receivable bad debt reserves
accounts
receivable
Collections by a
Unit 1 third party and 42,067,468.93 0-3 years 37.21% 2,146,623.45
unit deposits
Collections by a
Unit 2 third party and 5,948,313.58 With 1 year 5.26% 297,415.68
unit deposits
Collections by a
Unit 3 third party and 5,747,755.08 5.08% 334,887.75
above
unit deposits
Collections by a
Unit 4 third party and 5,512,168.68 0-3 years 4.88% 316,415.93
unit deposits
Unit 5 Unit deposits 5,500,000.00 Within 1 year 4.86% 275,000.00
Total 64,775,706.27 57.29% 3,370,342.81
In RMB
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investments in 267,352,263.1 246,952,263.1 267,279,396.1 246,879,396.1
subsidiaries 9 9 0 0
Investments in
joint ventures
and associated
companies
Total 20,400,000.00 20,400,000.00
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(1) Investment in subsidiaries
In RMB
Beginning Increase/decrease in the current period Ending Ending
balance balance balance of
Investee Additional Negative Impairment
（book Others （book impairment
value) investment investment provision value) provision
Shengzhou
Kinde
Intelligent 162,320,000 162,320,000
Kitchen .00 .00
Appliances
Co., Ltd.
Hangzhou
MingQi 52,275,243. 52,348,110.
Electric Co., 18 27
Ltd.
De Dietrich
Household
Appliances 20,400,000.
Trading 00
(Shanghai)
Co., Ltd.
Shanghai
Robam
Appliances
Sales Co.,
Ltd.
Beijing
Robam
Appliances
Sales Co.,
Ltd.
Hangzhou
Robam
Fuchuang 10,000,000. 10,000,000.
Investment 00 00
Management
Co., Ltd.
Hangzhou
Jinhe
Electric
Appliances
Co., Ltd.
Robam
International
(HK)
Trading Co.,
Ltd.
Robam
Appliances
Holding
(HK) Co.,
Ltd.
Total 72,867.09
.10 .19 00
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
(2) Investment in joint ventures and associated companies
In RMB
Increase/decrease in the current period
Invest
ment Cash Ending
Beginn Adjust balance
profit dividen Ending
ing ment of of
Investo Additio Negati or loss Other ds or Impair balance
balance other impair
r nal ve recogni change profits ment （book
（book compre Others ment
invest invest zed s in declare provisi value)
value) hensive provisi
ment ment using equity d and on
income on
the distribu
s
equity ted
method
I. Joint venture
De
Dietric
h Trade -
(Shang 551,58
hai) 3.95
Co.,
Ltd.
Subtota 3,824,4 3,272,8
l 60.03 76.08
II. Associated enterprises 二、联营企业
Zhejian
g
Tingsh
uo
Brand -
Operati 468,13
on 9.70
Manag
ement
Co.,
Ltd.
Subtota 1,065,9 597,85
l 93.31 3.61
Total 1,019,7 0.00
In RMB
Amount of the current period Amount of the previous period
Item
Income Cost Income Cost
Main business 4,362,487,508.28 2,211,299,281.37 4,044,712,473.72 2,113,758,543.93
Other businesses 127,661,267.93 61,625,299.63 114,887,076.86 33,163,443.14
Total 4,490,148,776.21 2,272,924,581.00 4,159,599,550.58 2,146,921,987.07
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
In RMB
Item Amount of the current period Amount of the previous period
Income from long-term equity
investments accounted for using the -1,019,723.65 -2,947,887.32
equity method
Investment income during holding of
financial assets for trading
Total 21,795,614.09 17,639,080.72
XVIII. Supplementary Information
?Applicable □Not applicable
In RMB
Item Amount Description
Gains and losses on disposal of non-
current assets (including the part
-576,982.36
written-off with provision for asset
impairment accrued)
Government subsidy included in
current gains and losses (except the
government subsidy closely related to
the Company’s normal business, in 60,521,206.11
line with national policy and enjoyed
by quota or ration in accordance with
the unified national standard)
Reversal of impairment provision for
accounts receivable tested for 38,556,641.14
impairment separately
Other non-operating revenues and
expenses except the above items
Less: Affected amount of income tax 15,524,210.60
Affected amount of minority
shareholders’ equity
Total 83,026,373.31 --
Explanation on the circumstance where items of the non-recurring gains and losses listed in the Explanatory Announcement
No. 1 on Information Disclosure for Companies Offering Their Securities to the Public — Non-recurring Profits and Losses
(referred to as “Announcement No.1”) are defined as recurring profits and losses
?Applicable ?Not applicable
Item Amount Reasons
VAT exemption, reduction or
refund
Refund of individual income tax
handling fee
Full Text of Hangzhou Robam Appliances Co., Ltd. Semi-Annual Report 2023
Total 10,138,352.65 —
EPS
Profit within the Reporting Weighted average
Period return on net assets Basic earnings per share
Diluted EPS (RMB/share)
(EPS) (RMB/share)
Net profit attributable to
common stockholders of the 8.24% 0.87 0.87
Company
Net profit attributable to
common shareholders of the
Company after deducting non-
recurring profits and losses
(1) Differences of net profits and net assets in the Financial Report disclosed as per the IAS and CAS
□Applicable ?Not applicable
(2) Differences of net profits and net assets in the Financial Report disclosed as per the foreign
accounting standard and CAS
□Applicable ?Not applicable
(3) Explanation of the reasons of accounting data differences under domestic and foreign accounting
standards shall be made, and where data audited by an overseas audit institution has been adjusted
based on the differences, the name of the overseas institution shall be indicated.
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