Stock Code: 603529 Abbreviation: Aima Technology
AIMA TECHNOLOGY GROUP CO., LTD.
Letter to Shareholders
Dear Shareholders,
As we close the year 2023, we have together witnessed another extraordinary journey of Aima
Technology. This year, the Company has demonstrated a robust development trend in its
business operations: the annual revenue reached 21.036 billion yuan, an increase of 1.12%
year-over-year, and the net profit attributable to the shareholders of the listed company reached
and strategic focus amidst changes.
Looking back at 2023, the overall business growth of the Company showed a pattern of being
high initially and then tapering off. By the end of the year, the industry began to move towards a
comprehensive recovery, and this consumption state of electric two-wheelers aligned well with
the trend of other domestic consumer goods categories in China. Beyond the long-term positive
outlook for China’s economic development trends, I believe it is essential to reach a consensus
with all shareholders on the following three trends:
First, the consumption trend of electric two-wheelers is showing a K-shaped divergence, where
the upward stroke represents products developed based on consumer demand and usage
scenarios, which feature differentiation, high-end quality, and intelligence, enjoying higher gross
margins and consumer preference. The downward stroke represents products of off-the-shelf,
homogenized, basic functional developed by manufacturers lacking original research
capabilities, have not become more favored despite price reductions. This divergence has
qualitatively changed the existing competitive landscape of the industry, forming two competing
groups: one among enterprises with original research and innovation capabilities and another
among homogeneous, off-the-shelf enterprises. The evolution of competition within these two
groups will likely lead to innovative enterprises continuously eroding the market share of the
follower enterprises. The underlying logic behind the K-shaped divergence is that consumers
need better and more suitable products.
Second, the AIGC technology revolution represented by ChatGPT is profoundly impacting our
lives and work in unprecedented ways, moving fintelligent information into the physical and
biological worlds. AIGC brings more than just speech recognition, facial recognition, and image
recognition; more importantly, it has the capability to create and generate, not only generating
texts, images, and videos but also codes, drugs, formulas, and equations. We will soon witness
significant technological and paradigm shifts brought about by AIGC. Meanwhile, we will also
see more application scenarios of AIGC, including applications in regulatory, social, consumer,
industry, and enterprise domains. This is a technological trend we cannot ignore.
Third, following land, labor, capital, and technology, data is emerging as the fifth major factor of
production. From the “Data 20 Articles” for the construction of basic data management systems
to the assetization of data elements, China has fundamentally established the basic framework
for data resource confirmation, valuation, utilization, circulation, and trading, and data will
become a core strategic resource for enterprises. From the perspective of operating
performance, the assetization of data will become a new growth point for enterprises; from a
business competition perspective, the use of data assets will become a key to winning in
corporate competition; from a management efficiency perspective, the effective use of data
elements will significantly enhance production and operational efficiency; from an R&D
innovation perspective, the rapid flow and sharing of data will provide enterprises with
opportunities for product innovation, service innovation, and business model innovation; from
an industrial development perspective, leveraging data elements to achieve digital
transformation will enhance industrial added value and competitiveness, thereby promoting
industrial upgrading.
These three trends will bring tremendous imagination to the development and restructuring of
the industry, and we will continue to focus on our main business, embrace innovation, act in
accordance with the situation, and rise with the trends.
As the electric two-wheeler industry increasingly becomes a prominent part of the global
transportation system and dual-carbon industry chain, the industry faces both opportunities for
capacity expansion and challenges from demand and regulatory aspects, such as product
lifecycle management and regulatory policies, the lawful acquisition of road rights for innovative
product categories, and the global market promotion and standard compatibility of products. In
response, the Company, as a leading industry player, is willing to assume industry
responsibilities, taking the lead or actively participating in the establishment of industry
standards, organizing industry social responsibility seminars, and facilitating industry
problem-solving. The Company will unite closely with suppliers, dealers, employees, and other
stakeholders to build a harmonious industry ecosystem and promote the healthy development
of the industry.
Aima Technology has been adhering to long-termism since its inception, focusing on one thing
and excelling in one industry, and we have always maintained a prudent and steady attitude in
choosing strategic directions. In 2023, Aima Technology also had a year of consolidation, based
on ample in-depth research, we strategically deliberated and assessed important issues
concerning industry and development of the Company. We believe that, first, regarding the
industry capacity limit: from a long-term perspective, electric two-wheelers and three-wheelers
will be the ideal choice for short and medium-distance travel for residents both domestically and
abroad, which are the fundamental driving factors for industry development, and the concept of
low-carbon travel will increasingly enhance the industry’s development. Thus, there is still room
for market capacity expansion after the era of replacement purchases. Second, consumer
rationality and high-end products: the consumer rationality of "can buy expensive, but not
overpriced" is gradually becoming mainstream. High prices must match the product value and
cost-effectiveness. Currently, the industry's high-end products are mainly marketed with
extended range as their main selling point, which is still in its initial stages, with great potential
for future development. Fashionable, unique design and intelligent functions should be the main
directions to enhance product value. Third, AI technology is developing at a speed surpassing
any previous industry, and as its commercialization progresses, AI will not only become a tool
for enterprises to enhance operational efficiency and innovation capabilities but will also provide
more development opportunities for various industries, including the development of the electric
two-wheeler industry ecosystem. Based on confidence in industry development and
self-awareness, Aima Technology will stay true to its original aspirations, continue to focus on
its main business, and closely revolve around the electric two-wheeler industry ecosystem,
actively exploring new business models with four major transformations as the direction and
focus: transitioning from solely selling vehicles to providing travel solutions, from a leader in
travel products to a leader in the travel ecosystem, from a domestic brand to an international
brand, and from a manufacturing-oriented company to a technology-oriented company.
To date, Aima Technology has an organizational scale of nearly ten thousand people. We are
acutely aware that large companies are prone to formalism and bureaucracy. Therefore, for
Aima Technology to become a century-old enterprise, it must maintain organizational vitality
and cohesion while expanding its organizational scale. To this end, in terms of corporate culture,
we use a strong sense of crisis and determination for excellence to stimulate self-drive,
continuously promoting self-awareness upgrading and transformation, and adopting an open
and knowledge-seeking attitude to actively embrace new trends, new concepts, and new
technologies. In terms of business management, we optimize processes and drive innovation
through digital reengineering, making the Company a "dancing elephant" that can sensitively
and efficiently perceive and respond to changes in external situations and market demands. In
terms of talent cohesion, we adhere to the philosophy of " showing respect for our staff,
improving their competence and making them happy”, viewing the Company as a carrier for
employees to realize their life value, making every effort to provide each employee with decent
remuneration, a pleasant and harmonious work environment, and clear growth opportunities. At
the same time, employees are enabled to share the fruits of the Company's development
through equity incentives, firmly walking the path to common prosperity. In 2023, focusing on
long-term capacity building, we conducted a series of organizational reforms, process
optimizations, and cadre adjustment mechanisms around product lifecycle management, which
further enhanced organizational efficiency and the comprehensive operational efficiency of
"from user demand insight to user demand satisfaction”. Meanwhile, the Company launched an
equity incentive program, covering 324 core employees, further improving the Company's
medium and long-term incentive system
Creating long-term value for shareholders is our unwavering commitment, just as "Users First"
has been our value proposition for over 20 years. To repay our shareholders, based on the
Company's 2023 operating performance and overall financial condition, fully considering the
Company's future development and reasonable returns for shareholders, the Board of Directors
proposes a profit distribution plan for 2023: based on the total share capital registered as of the
record date for the distribution of equity, minus the shares held in the repurchase special
securities account, it is proposed to distribute a cash dividend of 5.34 yuan (including tax) per
Company's 2023 annual general meeting of shareholders.
We feel grateful for the constant company, support and trust from our shareholders, customers,
suppliers and all walks of life! And we look forward to continuing to go hand in hand with all
shareholders.
Optimists win the future, pessimists win the moment; and we possess both an optimistic attitude
and a pessimistic outlook.
Chairman of the Board:
April 15, 2024
Important Notice
I. The Board of Directors, the Board of Supervisors, the directors, the supervisors and
senior management of the Company warrant that there are no false representations or
misleading statements contained in, or material omissions from this report; and jointly
and severally accept full responsibility for the truthfulness, accuracy and completeness
of the information contained in this report.
II. All members of the Board of Directors attended the Board Meeting.
III. Ernst & Young Hua Ming LLP (Special General Partnership) has issued an unqualified
standard audit report for the Company.
IV. The person in charge of the Company, Zhang Jian, the person responsible for
accounting work, Zheng Hui, and the head of the accounting institution (accounting
supervisor), Zheng Hui, declare: they guarantee the truthfulness, accuracy, and
completeness of the financial report in the annual report.
V. The Board of Directors' resolution on the profit distribution proposal for this reporting
period or the proposal for capitalization of capital reserve.
Audited by Ernst & Young Hua Ming LLP (special general partnership), the net profit attributable
to shareholders of the listed company for 2023 was 1,881,115,782.35 yuan, and the parent
company's net profit was 1,774,577,731.31 yuan. As of December 31, 2023, the accumulated
profits distributable to shareholders of the parent company amounted to 2,727,682,959.95
yuan.
For the year 2023, it is proposed to distribute profits based on the total share capital recorded
on the equity distribution record date, deducting shares in the repurchase special securities
account. The profit distribution plan is to distribute a cash dividend of 5.34 yuan (tax included)
per 10 shares to all shareholders. As of December 31, 2023, the total share capital of the
Company is 861,925,007 shares; deducting 14,130,524 shares in the Company's repurchase
special securities account, the base for calculation is 847,794,483 shares, resulting in a total
proposed cash dividend distribution of 452,722,253.92 yuan (tax included). The ratio of cash
dividends for this year (including the cash dividend of 299,949,780.29 yuan distributed in the
mid-year of 2023) is 40.01%.
If there is a change in the total share capital or the number of shares in the repurchase special
securities account due to convertible bonds converting into shares, share repurchases, granting
restricted shares under stock incentive plans, cancellation of shares under stock incentives, or
cancellation of shares for significant asset restructuring, the Company plans to maintain the
same per-share distribution ratio, adjusting the total distribution amount accordingly.
VI. Risk statement concerning forward-looking statements
√Applicable ?Not applicable
If there are forward-looking descriptions such as future plans and development strategies in this
report, they do not constitute substantive commitments to investors by the Company. Investors
should maintain adequate risk awareness and should understand the differences between
plans, forecasts, and commitments, paying attention to investment risks.
VII. Whether there is non-operational fund occupation by the controlling shareholder and
other related parties
No
VIII. Whether there is any situation of providing external guarantees in violation of
decision-making procedures
No
IX. Whether over half of board members cannot guarantee the truthfulness, accuracy and
completeness of the annual report declared by the Company
No
X. Significant risk warnings
During the reporting period, there were no significant risks that materially impacted the
company's production and operations. The Company has detailed the potential risks that may
be faced in the production and operation process in this report. For specific content, please
refer to Section 3 VI. (IV) Possible Risks of the report.
XI. Others
?Applicable √Not applicable
Table of Contents
(I) Full text and Abstract of the Company’s Annual Report signed by the
legal representative of the Company and stamped by the Company;
(II) Financial statements signed by the legal representative, the Financial
Documents Available for Controller, and the head of the accounting department (accounting
Reference supervisor) and stamped by the Company;
(III) The originals of all the Company’s documents and announcements
disclosed on newspapers designed by China Securities Regulatory
Commission during the reporting period.
Section 1 Definition
I. Definition
In this report, unless otherwise stated in the context, the following terms have
the following meanings:
Aima Technology
refers
/Aima/Company/the Aima Technology Group Co., LTD.
to
Company/the Group
refers Yancheng Dingai Venture Capital Partnership (Limited
Yancheng Dingai
to Partnership)
refers Guangdong Aima Vehicle Technology Co., Ltd, a wholly
Guangdong Vehicle
to owned subsidiary of Aima Technology
refers Jiangsu Aima Vehicle Technology Co., Ltd, a wholly
Jiangsu Vehicle
to owned subsidiary of Aima Technology
refers Tianjin Aima Vehicle Technology Co., Ltd., a wholly
Tianjin Vehicle
to owned subsidiary of Aima Technology
refers Zhejiang Aima Vehicle Technology Co., Ltd., a wholly
Zhejiang Vehicle
to owned subsidiary of Aima Technology
refers Henan Aima Vehicle Co., Ltd., a wholly owned subsidiary
Henan Vehicle
to of Aima Technology
refers Tianjin Aima Sports Goods Co., Ltd., a wholly owned
Tianjin Sports
to subsidiary of Aima Technology
refers Guangxi Aima Vehicle Co., Ltd., a wholly owned
Guangxi Vehicle
to subsidiary of Aima Technology
refers Tianjin Suiwanwan Cultural Communication Co., Ltd., a
Suiwanwan
to wholly owned subsidiary of Aima Technology
refers Xiaopa Electric Technology (Shanghai) Co., Ltd., a
Xiaopa Electric
to wholly owned subsidiary of Aima Technology
Tianjin Aima Shared Technology Services Co., Ltd., a
refers
Spozman wholly owned subsidiary of Aima Technology, Renamed
to
as "Tianjin Spozman Technology Co., Ltd”.
refers Chongqing Xiaoma Network Technology Co., Ltd., a
Xiaoma Network
to wholly owned subsidiary of Aima Technology
refers Tianjin Tianli Electric Bicycle Co., Ltd., a wholly owned
Tianjin Tianli
to subsidiary of Aima Technology
refers Aima Technology (Chongqing) Co., Ltd., a wholly owned
Aima Chongqing
to subsidiary of Aima Technology
refers Chongqing Aima Vehicle Technology Co., Ltd., a wholly
Chongqing Vehicle
to owned subsidiary of Aima Technology
refers Aima Technology (Zhejiang) Co., Ltd., a wholly owned
Zhejiang Sales
to subsidiary of Aima Technology
Taizhou Manufacture refers Taizhou Aima Vehicle Manufacture Co., Ltd., a wholly
to owned subsidiary of Aima Technology
refers Aima Technology (Taizhou) Co., Ltd., a wholly owned
Aima Taizhou
to subsidiary of Aima Technology
refers Aima Growth Venture Capital (Ningbo) Co., Ltd., a wholly
Aima Venture Capital
to owned subsidiary of Aima Technology
refers Lishui Aima Vehicle Technology Co., Ltd., a wholly
Lishui Vehicle
to owned subsidiary of Aima Technology
refers Suoteng Technology Hong Kong Co., Ltd., a wholly
Suoteng Technology
to owned subsidiary of Aima Technology
refers Geling New Energy Technology (Shandong) Co., Ltd.,a
Geling New Energy
to controlled subsidiary of Aima Technology
refers Zhejiang Aiska Technology Co.,Ltd.,a controlled
Aiska
to subsidiary of Aima Technology
refers Chongqing Xiaoma Intelligent Technology Co., Ltd., a
Xiaoma Intelligent
to wholly owned subsidiary of Aima Technology
refers Tianjin Xiaoma Intelligent Technology Co.,Ltd., a wholly
Tianjin Xiaoma
to owned subsidiary of Aima Technology
refers Guangxi Xiaoma Intelligent Technology Co.,Ltd., a
Guangxi Xiaoma
to controlled subsidiary of Aima Technology
refers Wanning Xiaoma Intelligent Technology Co.,Ltd., a
Wanning Xiaoma
to wholly owned subsidiary of Aima Technology
refers Taizhou Xiaoma Intelligent Technology Co.,Ltd., a wholly
Taizhou Xiaoma
to owned subsidiary of Aima Technology
refers Yangjiang Xiaoma Intelligent Technology Co.,Ltd., a
Yangjiang Xiaoma
to wholly owned subsidiary of Aima Technology
Chongqing refers Chongqing Aima Electromechanical Technology Co.,
Electromechanical to Ltd., a subsidiary of Aima Technology
refers Chongqing Aima Vehicle Service Technology Co., Ltd., a
Aima Vehicle Service
to wholly owned subsidiary of Aima Technology
Tianjin refers Tianjin Aima Electromechanical Technology Co., Ltd., a
Electromechanical to wholly-owned subsidiary of Aima Technology”.
Super Universe (Chongqing) Vehicle Industry
refers
Super Universe Technology Co., Ltd., a wholly owned subsidiary of Aima
to
Technology
refers Tianjin Aima Lianxiang Technology Co., Ltd., a controlled
Aima Lianxiang
to subsidiary of Aima Technology
refers Tianjin Aima Shengsituo Technology Co., Ltd., a
Aima Shengsituo
to controlled subsidiary of Aima Technology
refers Aima Technology Singapore Pte.ltd., a wholly owned
Singapore Aima
to subsidiary of Aima Technology
refers Powelldd Technology Company Limited, a wholly owned
Vietnam Aima
to subsidiary of Aima Technology
Indonesia Aima refers Pt Aima Electric Vehicles Indonesia, a wholly owned
to subsidiary of Aima Technology
refers Chongqing Aima Zhilian Logistics Co., Ltd., a controlled
Aima Logistics
to subsidiary of Aima Technology
refers Aima Electric Drive Systems Co., Ltd., a wholly owned
Aima Electric Drive
to subsidiary of Aima Technology
refers Aima Nanfang Co., Ltd., a wholly owned subsidiary of
Aima Nanfang
to Aima Technology
refers Tianjin Jiema Electric Technology Co., Ltd., a company
Tianjin Jiema
to in which Aima Technology holds shares
refers Zhejiang Today Sunshine New Energy Vehicle Co., Ltd.,
Today Sunshine
to a company in which Aima Technology holds shares
refers Chongqing Xintai Aluminum Industry Co., Ltd, a
Chongqing Xintai
to company in which Aima Technology holds shares
refers Guangxi Ningfu New Energy Technology Co., Ltd, a
Guangxi Ningfu
to company in which Aima Technology holds shares
refers Shandong Aidebang Intelligent Technology Co., Ltd., a
Shandong Aidebang
to company in which Taizhou Jinfu holds shares
refers Beijing Zhongzhong Travel Technology Co., Ltd., a
Beijing Zhongzhong
to company in which Aima Technology holds shares
Taizhou Jinfu Venture Capital Partnership (Limited
refers
Taizhou Jinfu Partnership), a company in which Aima Technology
to
holds shares
Aima Smart Travel Industrial Park project, a production
Guigang production refers
initiative by Aima Technology under construction in
base to
Guigang, Guangxi
Aima New Energy Smart Travel Eco-Industrial Park
refers
Lishui production base project, a production initiative by Aima Technology under
to
construction in Lishui, Zhejiang
Taizhou Intelligent Electric Vehicle and High-Speed
Taizhou production refers Electric Motorcycle project, a production initiative by
base to Aima Technology under construction in Taizhou,
Zhejiang
Aima Southwest Manufacturing Base project, a
Chongqing production refers
production initiative by Aima Technology under
base to
construction in Tongliang, Chongqing
refers GB17761-2018 Safety Technical Specification for
New National Standard
to Electric Bicycle
Refers
CRSC China Securities Regulatory Commission
to
refers
SSE Shanghai Stock Exchange
to
refers Convertible bonds publicly issued by the Company in
Convertible Bonds
to 2023
refers
Company Law Company Law of the People’s Republic of China
to
refers
Securities Law Securities Law of the People’s Republic of China
to
Yuan, ten thousand refers The Chinese currency renminbi (RMB) and ten thousand
yuan to RMB
refers
Articles of Association Articles of Tianjin Aima Technology Co., Ltd.
to
refers
Reporting period January 1, 2023 to December 31, 2023
to
Same period of last refers
January 1, 2022 to December 31, 2022
year to
Electric two-wheelers contain “electric bicycles” defined
according to the standard “Safety Technical Specification
refers for Electric Bicycle” (GB17761-2018) and “electric
Electric two-wheelers
to moped” and “electric motorcycle” with two wheels
defined according to “Technical Terms of Motorcycle and
Moped Part 1: Type of Vehicle” (GB/T5359.1-2019).
“Electric moped” and “electric motorcycle” with two
Electric two-wheel refers wheels defined according to “Technical Terms of
motorcycle to Motorcycle and Moped Part 1: Type of Vehicle”
(GB/T5359.1-2019).
Note: Discrepancies between the sum of individual values and the total figures in this
report may occur due to rounding adjustments made during calculations.
Section 2 Company Profile and Key Financial Indexes
I. Company’s Information
Chinese name 爱玛科技集团股份有限公司
Abbreviation of Chinese name 爱玛科技
English name Aima Technology Group Co., Ltd.
Abbreviation of English name AIMA
Legal representative Zhang Jian
II. Contact Information
Board Secretary Securities Representative
Name Wang Chunyan Li Xin, Ma Qunbo
Address Dagu North Road, Heping District, Dagu North Road, Heping District,
Tianjin City Tianjin City
Tel 022-5959 6888 022-5959 6888
Fax 022-5959 9570 022-5959 9570
Email amkj@aimatech.com amkj@aimatech.com
III. General Company Information
No. 5 Aima Road, South Area, Jinghai Economic Development
Registered address
Area, Tianjin City
Changes of registered
Not applicable
address
No. 5 Aima Road, South Area, Jinghai Economic Development
Office address
Area, Tianjin City
Zip code 301600
Website www.aimatech.com
Email amkj@aimatech.com
IV. Information Disclosure and Place of Preparation
Media and websites where this Securities Times, Securities Daily, China Securities
Report is disclosed Journal, Shanghai Securities News
Stock exchange website where
http://www.sse.com.cn
this Report is disclosed
Place where this Report is lodged Board of Directors Office of the Company
V. Stock Profile
Stock profile
Category of Abbreviation Stock Abbreviation of stock
Stock exchange
stock of stock code before change
A share Shanghai Stock Aima 603529 Not applicable
Exchange Technology
VI. Other Relevant Information
Name Ernst & Young Hua Ming LLP
Accounting firm 17/F Ernst & Young Building, Eastern Square,
engaged by the Office address No. 1 Dongchangan Street, Dongcheng District,
Company Beijing City
(domestic)
Name of signing
Guo Jing, Zhao Ruiqing
accountant
Name Huatai United Securities Co., Ltd.
Sponsor that 6/F, Block A, Fengming International Building,
fulfilled the Office address No. 22 Fengsheng Hutong, Xicheng District,
continuous Beijing City
supervision
duties during Name of signing sponsor
Zhao Naiji, Yang Yang
the reporting representative
period Duration of continuous
August 16, 2022 to December 31, 2024
supervision
VII. Major Accounting Data and Financial Indexes in Recent Three Years
(I) Major accounting data
Unit: Yuan (RMB)
Yoy change
Major accounting data 2023 2022 2021
(%)
Revenue 21,036,120,862.29 20,802,212,994.46 1.12 15,398,710,870.72
Net profit attributable to
shareholders of the 1,881,115,782.35 1,873,433,343.24 0.41 663,998,092.90
listed company
Net profit deducting
non-recurring gains or
losses attributable to 1,764,467,999.39 1,797,357,709.42 -1.83 616,214,620.89
shareholders of the
listed company
Net cash flows from
operating activities
Yoy change
(%)
Net assets attributable to
shareholders of the 7,712,038,217.61 6,721,176,109.98 14.74 4,974,827,390.92
listed company
Total assets 19,892,813,618.33 18,471,355,153.82 7.7 13,396,944,911.18
(II) Major financial indexes
Major financial indexes 2023 2022 Yoy change (%) 2021
Basic earnings per share (Yuan/share) 2.2 3.31 -33.53 1.79
Diluted earnings per share (Yuan/share) 2.12 3.31 -35.95 1.79
Basic earnings per share deducting
non-recurring gains or losses (Yuan/share)
Decrease of 5.75
Weighted average return on net assets (%) 25.4 31.15 17.46
percentage points
Weighted average return on net assets after Decrease of 6.07
deducting non-recurring profit or loss (%) percentage points
Description of major accounting data and financial indexes of the Company within three
years before the end of the reporting period
?Applicable √Not applicable
VIII. Difference of Accounting Data under Domestic and International Accounting
Standards
(I) Difference between net profits in the financial report concurrently disclosed
according to international accounting standard and accounting standard of China,
and difference between net assets attributable to shareholders of the listed
company
?Applicable √Not applicable
(II)Difference between net profits in the financial report concurrently disclosed
according to overseas accounting standard and accounting standard of China, and
difference between net assets attributable to shareholders of the listed company
?Applicable √Not applicable
(III) Description of difference between overseas and domestic accounting
standards:
?Applicable √Not applicable
IX. Major Financial Data by Quarter in 2023
Unit: Yuan (RMB)
Q1 Q2 Q3 Q4
(Jan. - Mar.) (Apr. - Jun.) (Jul. - Sep.) (Oct. -Dec.)
Revenue 5,441,881,320.83 4,774,698,099.50 7,239,025,069.68 3,580,516,372.28
Net profit attributable
to shareholders of 477,753,704.97 417,036,288.22 662,750,522.73 323,575,266.43
the listed company
Net profit deducting
non-recurring gains
or losses,
attributable to
shareholders of the
listed company
Net cash flows from
operating activities
Description of difference between quarterly data and data of the disclosed periodical
report
?Applicable √Not applicable
X. Non-recurring Gains or Losses Items and Amounts
√Applicable ?Not applicable
Unit: Yuan (RMB)
Non-recurring gains or losses 2023 2022 2021
Profit or loss from disposal of non- current assets,
including the write-off of provision for asset -5,102,906.88 -5,205,312.26 -12,713,091.69
impairment
Government grants recognized in during profit or
loss (excluding those having close relationship
with the Company’s normal business, conforming
to the national policies and regulations and
enjoying ongoing fixed amount or quantity
according to certain standard)
Profit or loss arising from changes in fair value of
financial assets and financial liabilities held by
non-financial entities, and profit or loss arising from
-17,226,650.77 -12,120,000.00 9,978,187.68
disposal of financial assets and financial liabilities,
except for effective hedging activities related to the
Company’s normal business operations
Write back of the impairment provision for
receivables that have been individually tested for 3,439.63 24,164,117.84
impairment
Gains arising when the investment cost in
acquiring subsidiaries, associates, and joint
ventures was less than the fair value of the
identifiable net assets at the time of investment.
Non-operating income or expenses other than the
above items
Other gain or loss in compliance with the definition
of non-recurring gain or loss
Less: Amount affected by the income tax 34,159,727.30 25,387,754.23 15,927,824.01
Affected amount of minority shareholders’ equity
(after tax)
Total 116,647,782.96 76,075,633.82 47,783,472.01
Description of classifying significant items not listed in “Explanatory Announcement No. 1
on Information Disclosure for Companies Issuing Securities—Non-Recurring Gains and
Losses” as non-recurring items, as well as for reclassifying items designated as
non-recurring in the same announcement as recurring profits and losses.
?Applicable √Not applicable
XI. Items Measured at Fair Value
√Applicable ?Not applicable
Unit: Yuan (RMB)
Impact to the profit
Beginning
Name of item Ending balance Change or loss of current
balance
period
Financial assets at fair
value through other
comprehensive income-
receivables financing
Financial asset held for
trading
Total 151,001,429.59 184,934,672.53 33,933,242.94 -14,659,496.76
XII. Others
?Applicable √Not applicable
Section 3 Discussion and Analysis of the Management
I. Discussion and Analysis on Operation Situation
During the reporting period, facing intensified industry competition, extreme weather and
other adverse factors, the Company closely followed the strategic axis of “Users First,
Excellent Products, In-depth Development in the Market, Refined Operation” and the
strategic direction of transitioning to a digitized technology company. It continued to focus
on its core business, namely, development and manufacture of electric two-wheelers,
strictly implemented the annual business plan, and achieved commendable operating
results.
During the reporting period, the Company achieved a revenue of 21,036.1209 million
yuan, an increase of 1.12% year-over-year; net profit attributable to shareholders of the
listed company was 1,881.1158 million yuan, an increase of 0.41% year-over-year; net
profit deducting non-recurring gains or losses attributable to shareholders of the listed
company, was 1,764.4680 million yuan, a decrease of 1.83% year-over-year. The key
focus areas of the Company in 2023 were as follows:
(I) Improvement of product power
Regarding product research and development, the Company examined and reviewed the
product development process with an investment mindset. During the reporting period, the
development of key products was fully upgraded from Aima Forward Product
Development Process (APDS) to Integrated Product Development (IPD). In the planning
phase, comprehensive demand management was implemented, a user demand research
team composed of professionals in planning, research and development, and marketing
was established. The team conducted sufficient market visits and regional observations
under the guidance of scientific methods and produced planning reports focused on
product commercial value and competitiveness, to thoroughly clarify user demand and
product positioning in the early stages of product development, so that the accuracy and
success rate of the product planning can be comprehensively improved. At the
decision-making stage, the Integrated Project Management Team (IPMT), composed of
senior decision-makers from various departments, acted as the product development
decision committee. The team reviewed new product planning reports and made
development decisions based on the concept of investment value, ensuring continuous
launching strategically significant flagship products that precisely meet market demands
while controlling resource input. During the development phase, taking products as
projects, each project's PDT (Product Development Team, formed by personnel from
various functional departments such as industrial design, R&D, procurement,
manufacturing, quality management, and marketing) was fully responsible for the product
development process. Various functional departments collaborated closely to enhance the
feasibility of product design across all functional areas of the Company, and conducted
preparatory work such as component matching, development validation, pilot production,
and launch marketing concurrently from the start of product design, which is conducive to
rapidly developing products and promptly responding to market demands while controlling
development costs.
Regarding technology platformization, the Company treats technology development as a
functional provider of technology and processes for product development. During the
reporting period, the Company continued to advance the construction of Common Build
Block (CBB) shared modules. The technical development department not only provides
CBBs that meet the needs for the current stage of product development, but also
conducts technological reserves and develops CBBs that lead the industry's development
based on the Company's analysis of market trends. In terms of parts platformization, the
Company increased the generalization rate and the modularization rate of components, at
the same time, integrated various components of high adaptability and excellence in
quality, performance, and cost control, then standard interfaces were used for connection
to form platforms, which were applied to the development of multiple vehicle models.
Through vehicle platformization, the various stages of the product development process
could be carried out in parallel and remotely, reducing dependencies between stages, and
could be directly aligned with market demands, thereby enhancing the precision and
efficiency of product development and ensuring the stability of product quality and
performance as well as cost controllability.
Regarding quality management, the Company continuously advanced and optimized the
entire process quality control system. During the reporting period, the IPD process for
product development was initially introduced, the review of quality objectives and
competitiveness in project quality planning was strengthened in the product design phase,
the indicator system, which previously focused on deliverables, was optimized to
emphasize planning information and competitiveness analysis, further shifting quality
management towards being "guided by user demands”. Meanwhile technical expert
teams were established according to the attributes of complete vehicles and components,
and took responsibility for design quality. During the product development stage, the
grading and review management mechanism of quality gate deliverables was
implemented, executing the quality gate pre-review and early warning mechanism to
comprehensively improve the process quality of new project development. In the
production process, relying on intelligent manufacturing, ERP (Enterprise Resource
Planning), intelligent quality management, quality information puzzle, and other digitalized
operational systems, the Company achieved comprehensive quality data collection,
intelligent analysis, smart alerts, intelligent control, smart forecasting, and intelligent
decision-making, established a unified quality management system and common quality
standards, focusing on product issue improvement, and building a rigid and
comprehensive quality management data operation system. In terms of inspection
capability enhancement, integrating the product development testing concepts of the
automotive industry, the Company scientifically designed schemes of test planning and
verification, conducting component-level, system-level, and complete vehicle-level tests
concurrently, to further enhance inspection efficiency and effectiveness. During the
reporting period, over 30 sets of inspection equipment were invested in at the production
bases, expanding inspection capabilities in areas such as shock absorber durability,
material photodegradation, high and low temperature impacts on electrical components,
complete vehicle vibration durability, and vehicle steering. A new dimensional
measurement room was added, capable of measuring the length dimensions and
positional tolerance dimensions of critical components.
(II) Improvement of channel capacity and capability
Channel construction and upgrade were one of the focal points during the reporting period.
On one hand, the Company continued to expand the number of channels, implemented a
strategy to deepen channel penetration, strengthened the establishment of outlets in
urban communities and townships, and increased the number of terminal storefronts. On
the other hand, guided by user demands and utilizing advanced digital intelligence tools to
collect and analyze consumer information and conduct scientific market research, the
Company precisely assessed the consumption characteristics and market trends of
different regions and groups, based on which, the Company strategically adjusted the
channel structure and product combination strategies for different channels.
During the reporting period, the Company continued to enhance the refined management
of stores. The Company has constantly improved the entire lifecycle management of
channels, graded management, and incentive systems, which fostered dealers'
enthusiasm for improving operational and marketing capabilities, helping to maintain
channel vitality and efficiency. The Company gradually strengthened the implementation
of the Retail Manager Plan, which serves individual stores and reaches in-store sellers, to
achieve grid-based channel management by the Company. The Plan has established a
smooth and efficient information sharing and communication mechanism between the
Company and its channels, which is beneficial for the Company to comprehensively and
accurately grasp the specifics of all its dealers and stores, laying a solid foundation for
implementing graded management and precise assistance, also facilitating the rapid
implementation of marketing strategies such as new product launches. The Company
continued to advance the digitization of channels, building a one-stop dealer’s service
platform to efficiently handle dealers’ order placement, inventory management,
distribution and other processes. The Company constructed a retail system “Ling Shou
Tong” for stores to improve channel operational efficiency and collect dynamic sales data,
by which the Company can gather and analyze seasonal, cyclical, and other patterns in
product sales across different regional markets, as well as consumer preferences, market
trends and other relevant information. Based on this information, the Company optimized
the product structure, marketing plans, and inventory structure of each sub-region to
achieve precise marketing and enhance the output of individual stores, furthermore,
channel data can inform production, enhancing the accuracy of its production planning.
The Company has been insisting on value integration of factory and distributor, and has
established a special training system and business team. Based on the analysis of
channel operation and data, dealers, stores, and salespersons were classified, and
tailored empowerment programs and training content were customized for each category,
meanwhile digital training systems were leveraged to achieve precise and efficient
empowerment. To enhance the e-commerce operation capabilities of dealers, the
Company provided operational training and technical support from traffic acquisition to
sales conversion for dealers, guiding more dealers to use various new tools such as
self-media, short videos, and seeding APPs as their regular marketing methods, and
promoting the development of dealer live broadcasting matrix.
In recent years, the Company has piloted the operator model in regions with numerous
dealers but smaller scales. In this model, products sold in the region are uniformly
purchased and distributed by operators collaborating with the Company. Unlike the
traditional model where the Company primarily manages dealers and through them
manages distributors and channel stores, in the operator model, operators manage orders
in a standardized wholesale markup manner. The Company directly utilizes digital
systems to standardize and refine retail management at the store level, strengthening the
Company’s control over terminals while making light asset investments, which facilitates
the rapid and efficient implementation of the Company’s product and marketing policies.
The data recovery ratio of terminal dynamic sales in the operator model is also higher.
During the reporting period, the Company expanded the pilot areas for the operator model
in suitable regions, accumulating operational and retail experience.
Regarding international channels, the International Division implemented channel
expansion plans tailored to the regional characteristics and consumer habits of major
markets. During the reporting period, the Company participated in the China Import and
Export Fair (Guangzhou), Electrify Long Beach exhibition (the USA), and the Milan
exhibition in Italy, actively showcasing its products and engaging in in-depth
communications and negotiations with potential overseas customers, helping to expand
the international sales network. The Company opened an Alibaba international platform
and a standalone site (Aima’s official overseas website), using platform operations to
increase brand exposure in overseas markets and expand customer acquisition channels.
It established product sales cooperation with businesses in North and South America,
making significant progress in local channel expansion. During the reporting period,
international business revenue was 226.0732 million yuan, an increase of 2.21%
year-over-year.
(III) Improvement of brand power
The Company adopted "Technology and Fashion" as its brand proposition, with " Ride
with Aima, Ride with Fashion and Ease" as its brand slogan. During the reporting period, it
undertook a full-dimensional youthful upgrade of the brand, centered on fashion,
innovation, personalization, digitization, social participation, and social responsibility. In
terms of products, the Company's strengths in fashion design and color schemes were
prominent and industry-leading. During the reporting period, it launched the elegantly
luxurious "Egg" model, the fashionably cute "Luna" model, the tech-savvy "Dream Maker"
model, the mech-cool "Geek" model, and the youthful and robust "Commander" model,
aimed at precisely meeting the segmented aesthetic needs of young consumers. In
collaboration with a renowned color institute, the Company conducted research on
industry color trends, released the annual fashionable color "Vibrant Magenta”, and
actively applied it to vehicle design, store displays, and promotional materials, conveying
a brand tone of "sophistication, vitality, optimism, and bravery”. The Company continued
to advance product innovation, enhancing the experience of intelligent features to attract
the attention of young groups with the technological content of the products.
In terms of refreshing the brand image, the Company used fashionable design elements
and colors to upgrade store images, introduced soft fashion terminal scene displays,
implementing popular fashion scenes beloved by young consumer groups such as
"Outdoor Adventure”, "Fashion Exploration”, "Reverse Tourism”, "Solo Leisure”, and
"Human-Pet Coexistence". These actions could provide personalized and enjoyable
shopping, experiences, establishing a strong connection between the Company's
products and the fashionable lifestyle in consumer minds. The Company established the
industry's first female-exclusive category store called " Miss Ladies Fashion Theme Store",
decorated with pink tones and paired with exclusive display designs to showcase terminal
scenes themed around "Punk Girl", "Moon Girl", and "Sweetheart Girl", Showcasing a
sweet, cool, and chic fashion attitude for young women. During the reporting period, more
than 50 exclusive stores were set up. The Company collaborated with high-quality variety
shows "Ride the Wind 2023" and "Call Me by Fire 3", signing talented artists and young
idols as brand fashion ambassadors, and cooperated with the fashion magazine ELLE to
shoot the Aima Shine fashion series. The two hot variety shows had helped Aima brand
maintain high visibility throughout the year on top fashion platforms such as Weibo and
Xiaohongshu, with exposure and discussion exceeding billions of times, achieving
excellent promotional results.
In terms of brand activities, the Company planned interactive brand events to meet the
social needs of young consumers for participation and experience, including launching the
college student-exclusive mini-program "Aima Shining Zone", recruiting college campus
fashion officers, establishing Aima Creative Workshops at multiple universities, holding
the Aima Star Chasing Music Festival, and creating brand promotional IPs on Bilibili. The
Company obtained the authorization for the gaming IP Arena of Valor. and held "Aima
Kings Challenge" events in multiple regions, inviting Arena of Valor championship team
members for live interactions with fans during the finals; the Company invited well-known
basketball stars to participate in the Aima Fans Basketball Festival, integrated Aima
models into popular domestic online games such as "Journey to the West" and "Earth
Revival" as mounts for in-game characters, collaborated with local original IPs beloved by
young generation, launching the Aima-Little Yellow Duck co-branded series. The
Company fully respects the trendy preferences and diverse cultures of the younger
demographic, demonstrating an open, equal, and inclusive brand attitude.
Regarding social responsibility, the Company continuously promoted green operations
and built green factories. During the reporting period, it initiated an ESG campaign at an
industry forum for the first time, led the industry in practicing sustainable development
concepts, actively responding to young consumers' environmental protection concerns,
and building resonance and emotional connections.
(IV) Improvement of technological power
The Company has always regarded independent R&D as the foundation for improving
product performance, competitiveness, and achieving long-term development. It has
continuously increased investments in R&D, with R&D expenses during the reporting
period amounting to 589,467.2 thousand yuan, an increase of 16.34% year-over-year.
During the reporting period, the Company, in collaboration with the China National
Institute of Standardization, introduced the industry's first endurance test standard based
on actual user driving conditions for electric motorcycles, titled “Test Methods for Energy
Consumption Rate and Range of Electric Motorcycles under User Driving Conditions”.
This standard breaks away from the conventional constant speed mileage test method
and instead evaluates the range of electric motorcycles based on actual user driving
conditions, including urban, rural, and comprehensive driving conditions, covering various
real-world usage scenarios, thereby the test results closely reflect the actual endurance
performance, facilitating industry technological innovation and the enhancement of
standards, thereby enhancing consumer trust. Based on the results of tests covering tens
of thousands of kilometers under various conditions, the Company launched a new
generation of engine technology systems during the reporting period—Engine 5, focusing
on performance enhancements in the triple-electric system and smart applications:
developing three types of high-efficiency motors with different performance focuses
tailored to various terrains and landscapes, and utilizing in-house developed controllers
that excel in architecture stability, compatibility, and precise control, further enhancing the
efficiency of the power system. The Company’s intelligent ecosystem was fully integrated,
achieving an interconnected application of "Human-Vehicle-Device-Helmet-APP-Cloud”.
In terms of core technology research in the industry, the Company continued to advance
the R&D of technologies such as motors, controllers, batteries, new materials applications,
having made multiple accomplishments. In motor development, the Company developed
high-efficiency ultra-quiet bread-shaped hub motors and high-efficiency salient pole
motors; the former uses innovative technologies and processes such as patented
bread-shaped magnetic steel designs, unequal air gap designs, and unique adhesive
formulas to achieve high efficiency, high quality, and low noise. The latter's design
philosophy and processes draw from the characteristics of the automotive industry's
reluctance-assisted permanent magnet synchronous motors, using fewer pole pairs to
reduce iron losses in the motor, enhancing high-speed demagnetization capability to
reduce demagnetizing currents, thereby significantly improving energy efficiency while
considering the reluctance torque produced by the salient pole effect, which enhances the
motor's maximum output torque, improving vehicle power performance and riding
experience. The Company's in-house developed motors have been produced internally
and applied in its products, with nearly 4 million units used during the reporting period. In
terms of controllers, the Company developed the Azure Controller, utilizing AUTOSAR
software architecture, torque control strategy architecture, and an integrated three-in-one
domain control system (MCU & VCU & DCDC), offering multiple driving modes to meet
users' needs for various usage scenarios. The Azure Controller has been mass-produced
and applied to the Company’s products. Regarding batteries, the Company actively
monitored the development of cutting-edge technologies in the battery sector,
continuously advancing the R&D of sodium battery applications, making significant
progress during the reporting period. Additionally, the Company maintained R&D
investments in high-gloss color ABS and cover lighting processes, new intelligent sensors,
environmentally friendly water-based coatings, and other fields.
In terms of core technological research in the industry, the Company is committed to
building an all-encompassing smart ecosystem of
"Human-Vehicle-Phone-Helmet-APP-Cloud”, through an integrated ecosystem covering
software application layer APPs, cloud platforms, smart central controls, and smart
helmets, equipped with light, medium, or full smart technology platforms to achieve
varying degrees of interaction and connectivity among the vehicle and mobile phone, user,
Aima cloud, and backend data. On the vehicle end, advanced electronic and electrical
architectures are used with integrated instruments as the smart central control, optimizing
performance under various road conditions, enhancing riding safety and comfort. On the
APP end, it facilitates vehicle access and control of smart features. On the human end,
through peripherals like Aima smart helmets, it achieves interconnectivity between the
vehicle, mobile phone, and user, allowing voice control over phone calls, music playback,
map navigation, and one-touch SOS through wearing the Aima smart helmet. On the
cloud end, the Aima OS (Operating System) middleware and backend provide real-time
data services to users. The smart features loaded on the Company’s products are
responsive and precise, earning consumer recognition, and during the reporting period,
sales of smart models increased significantly.
(V) Improvement of productivity
During the reporting period, the Company's manufacturing system focused on improving
the rapid scalability of new products, ensuring manufacturing quality, and cost reduction
and efficiency improvement, which is conducive to enhancing the Company's overall
manufacturing capabilities to better implement its business strategy within the
manufacturing system. The implementation of the Integrated Product Development (IPD)
process in the manufacturing system involved deep participation in the new product
design and development process, with manufacturability and product consistency as the
main criteria for participating in the data review and engineering prototype review for new
product development. The supporting production preparation work was advanced,
including capacity matching, identification of common components and initiating the
tooling in advance and material preparation based on new product plans, enhancing the
Company's ability to quickly scale up new products. The Company continued to advance
the automation of the production process, during the reporting period, automation projects
were launched at the production bases as needed, including automated welding of
handlebars, robotic powder coating of frames, robotic painting of plastic parts, automatic
locking equipment for disc brakes, automatic loading and unloading for tire removal
machines, and automatic scanning of finished goods in and out of storage, which help
improve production efficiency and ensure product quality. In terms of informatization,
during the reporting period the comprehensive use of informatized production reports at
all production bases was prioritized, covering attendance patterns, team settings,
efficiency monitoring, production dashboards, and other information. By automatically
collecting, summarizing, and presenting data on people, machines, materials, methods,
and information throughout the production process, the Company achieved visibility
across the entire manufacturing chain, early warning of anomalies, and guidance for
improvements at the production site, ensuring the consistency and stability of high-quality
product output. The Company continued to advance its capability to produce core
components in-house, aiming to enhance the quality and supply speed of core
components while reducing costs. During the reporting period, in-house developed and
produced motors were applied in complete vehicle manufacturing, meanwhile, efforts
were made to layout the production of essential components such as electronic controls,
handlebars, and front forks.
During the reporting period, the Company continued to advance the construction of new
bases, creating factories that are automated in production, intelligent in logistics, and
informatized in management, which are also energy-efficient and environmentally friendly.
The Company has also been focusing on promoting the development of industrial clusters
around new bases. In-depth research into the consumption needs and business
environments of major overseas markets led to the initiation of preparations for
establishing a production base in Southeast Asia, accelerating the brand's international
expansion and advancing the localization of production.
(VI) Improvement of operation capacity
During the reporting period, the Company conducted an in-depth review of the entire
business process and industrial value chain, incorporated advanced business concepts
and methodologies, and established a product strategy of "scaling up upon market launch
for strategic products", which is supported by the IPMS process (Integrated Product
Marketing & Sales). The core of this approach is to integrate the Integrated Product
Development (IPD) process with post-product launch sales and service processes. A
sustainable and replicable operational capability for product management has been
cultivated, characterized by direct access from headquarters to distributor stores, deep
coordination among various functions within the Company, and a dual focus on product
sales and brand building. Guided by "user demand insight and satisfaction”, this approach
employs an investment philosophy to guide the entire lifecycle management of products,
maximizing the investment value.
During the reporting period, the Company actively practiced "improving quality,
consolidating quantity, and reducing costs”, with a focus on supply assurance to
continuously build a supply chain system that is stable in quality and highly cost-effective.
In terms of quality improvement, it implemented a supplier grading management system
based on the principle of survival of the fittest, with supply quality as the primary indicator
for supplier performance ratings, establishing rigidity in quality; the Company continued to
advance supplier empowerment programs (including supplier monthly quality meetings,
benchmark learning), special quality meetings with key suppliers and other quality
initiatives, aiming to continuously strengthen the quality foundation of its supply chain.
Regarding quantity consolidation, the Company focused externally on excellent supplier
resources, increased the supply proportion of highly rated suppliers, and continued to
extend the supply chain vertically, integrating suppliers' raw material demands and
organizing centralized procurement; internally, through platformization of components,
SKU simplification, and material standardization, it reduced the variety of components to
increase the purchase volume of single categories, thereby enhancing the efficiency of
the supply chain; consolidating quantity also helps ensure incoming material quality and
reduce purchasing costs. In terms of cost reduction, in addition to consolidation-driven
cost reduction, the Company also focused on R&D cost reduction and guidance for cost
reduction, providing technical and process improvement support to suppliers based on
their actual conditions, reducing supplier resource wastage while ensuring quality, and
enhancing supplier production efficiency. Simultaneously, the Company continuously
pushed forward the localization of the supply chain, on one hand, it encouraged excellent
suppliers to establish factories, offices, or third-party transfer warehouses at or near the
Company's existing production bases to shorten the supply radius; on the other hand, it
planned for localized supplier resources in advance when planning new bases.
localization helps reduce the transportation costs of components and better ensures
supply capability.
During the reporting period, the Company continued to advance the construction of the
smart logistics system. In terms of vehicle sales logistics, it has fully taken over the
transportation business of finished vehicles from the main production bases; the shipping
efficiency improved from the previous management standard of T (order completion day)
+3 to T+2, with a significant increase in the proportion of T+1 shipments, effectively
enhancing the inventory management efficiency. Based on the shipping mileage of orders,
it established standardized delivery lead time, effectively managing the product delivery
process and supporting dealers in reasonably arranging their inventory structure.
Regarding component transportation, it gradually arranged component procurement
logistics operations within the three major industrial clusters in China namely Tianjin, Wuxi,
and Taizhou, the system has taken over the remote transportation of major components.
Under the centralized purchasing model, transportation demands were integrated and the
placement and storage of components were pre-organized according to the
corresponding parts requirements of the production plans, enabling direct use in
production upon arrival without the need for post-arrival inventory sorting, significantly
improving the efficiency of component warehouse unloading and storage, and greatly
enhancing the efficiency of component inventory management. Additionally, the Company
implemented a comprehensive set of logistics delivery standards, enforcing quality
management throughout the entire delivery process to ensure the quality of deliveries.
II. Industry Overview of the Company During the Reporting Period
According to the “Industrial Classification for National Economic Activities”, the industry in
which the Company operates is "C377-C3770 Moped Manufacture" (Group and Class) of
"C37 Manufacture of Railway, Ship, Aerospace and Other Transport Equipment”
(Division).
The first electric two-wheeler in China debuted in 1995. After rapid development and
regulatory exploration for more than 20 years, electric two-wheelers have evolved into the
important transportation and production tools of short-distance travel for Chinese
residents.
Before the implementation of the "New National Standard" in 2019, the industry had
already established a complete industrial chain system and a broad market base. The
social stock of electric bicycles had exceeded 250 million units, with an annual production
and sales volume maintaining around 35 million units for many years, characterized by
fierce market competition and low industry concentration.
The 2019 "New National Standard" regulated the research and development, production,
sales, circulation, and usage of electric bicycles, presenting the industry with an
opportunity for regulated development. At the same time, various localities set different
transition periods for the implementation of the "New National Standard", which is
expected to end by the close of 2024. After the transition period, models that do not meet
the requirements of the "New National Standard" will not be allowed to run on roads., and
the resultant replacement demand will create new growth opportunities in market capacity.
Underpinned by regulated development and replacement demand during the transition
period, the industry has once again entered a period of rapid development. In this phase,
market share tends to concentrate towards large-scale enterprises, industry giants, and
branded companies, accelerating the optimization of industry order and continuously
increasing market concentration.
Against the backdrop of economic transformation, information technology, and
dual-carbon policies, the consumer market for electric two-wheelers is gradually exhibiting
three trends: consumption upgrading and personalized consumer demand, raising
consumer environmental awareness, and the pursuit of convenience and intelligence by
consumers. Additionally, due to increasing demand in the international market, the electric
two-wheeler industry, which originated and thrived locally, is moving further abroad,
accelerating its path to internationalization. Therefore, the future of the electric
two-wheeler industry will likely trend towards differentiation, high-end products,
intelligence, and internationalization. With in-depth consumer insights and customized
product development, continuous application of internet technology, smart technology,
and new energy technology in the electric two-wheeler industry, along with the ongoing
development and expansion of global business, these factors will become the main
drivers of industry development after the end of the "New National Standard" transition
period, propelling the industry into a new phase of rapid growth.
Table Development stages of electric two-wheeler industry
Industry
Industry features and
development Period Development characteristics
structure
stage
From 1995 to Many manufacturers,
Generation and
“New National serious product
rapid Rapid development from zero
Standard” taking homogenization and
development
effect fragmented market share
Transition to From “New Increase in market capacity Numerous small enterprises
orderly National Standard” exit the competition, market
development taking effect to Improved regulatory framework share of leading enterprises
expiry of transition Standardization of industry order increases, resources
period concentrate towards leading
Increased market concentration:
enterprises
Market shifts from primarily domestic
to equally prioritizing both domestic Industry development
From expiry of
Future and and international markets characterized by
transition period of
Transformational differentiation, high-end,
“New National Industry transitions from
Development intelligence, and
Standard” onwards manufacturing and selling vehicles to internationalization
providing user-based services
III. Description of The Company’s Businesses in the Reporting Period
(I) Main business of the Company
The Company was established in 1999 and entered the electric two-wheeler industry in
business includes the research, development, manufacturing, and sales of electric bicycle,
electric moped and electric motorcycle. Over the years, the Company has continuously
enhanced its core competitiveness, becoming one of the leading enterprises in the electric
two-wheeler industry.
(II) Major products of the Company
Electric Electric two-wheel motorcycle
Classification
bicycle Electric moped Electric motorcycle
Non-motor
Nature Motor vehicle Motor vehicle
vehicle
Pedal riding
Mandatory None None
ability
Maximum ≤25km/h
≤50km/h ＞50km/h
Speed
Shall not
Whole mass exceed Can exceed 55kg Can exceed 55kg
Battery ≤48V
No restriction No restriction
Voltage
Production
None Required Required
qualification
Product 3C inclusion in the Ministry of
inclusion in the MIIT
qualification certification Industry and Information
directory
Technology (MIIT) directory
Riding
None Motorcycle driver’s license Motorcycle driver’s license
qualification
The Company's electric tricycle products mainly include leisure electric tricycles, as well
as canopy electric tricycles and freight electric tricycles. The Company's leisure electric
tricycle products not only meet the diverse travel needs of consumers across various
scenarios but also further showcase a fashionable brand proposition through their design
and color schemes. In terms of functionality and configuration, they are better tailored to
the leisure travel and school commute needs of consumer groups such as mothers and
the middle-aged and elderly, garnering strong consumer appreciation. The canopy electric
tricycles adopt automotive-grade manufacturing processes in vehicle design and
production, offering functionality and style, further satisfying consumers' needs for comfort
and travel under various weather conditions. The freight electric tricycles, while being
durable, incorporate stylish elements to meet the diverse needs of consumers across
various application scenarios.
In addition to the main products of electric two-wheelers and tricycles, the Company also
produces low-speed electric four-wheelers, bicycles, electric-assisted bicycles and other
products. The Company is also committed to the development of new products and the
exploration of new businesses, focusing on the green short-distance travel ecosystem.
(III) Operation model
The Company centers its business around users, continuously drives change and
transformation, and implements category innovation and technological innovation, striving
to become a platform-based technology company that provides green and convenient
travel solutions. In recent years, the Company has comprehensively upgraded its product
lifecycle management system through information technology and advanced
management techniques, building an efficient digital product implementation chain,
product delivery chain, and user service chain, thereby enhancing the Company's overall
strength.
In the product design and development segment, the Company sets up various R&D
functional departments oriented towards user needs. The Product Planning Center is
responsible for insight into consumer demands and market research, delivering product
concepts; the Technology R&D Headquarters comprises a Product Management Center
and an Engineering Technology Development Center, the former transforms product
concepts into product strategies and manages products throughout their lifecycle to
ensure competitiveness and achieve business goals; The latter is the technical
implementer of product development, supporting the commercial success of products,
and simultaneously responsible for the Company's technological capacity building. In
recent years, the Company has formed specialized R&D teams and established an
Electrical Development Center under the Engineering Technology Development Center,
engaging in the R&D and verification of core and cutting-edge technologies in the industry
such as triple-electric systems, drives the implementation of R&D projects such as the
upgrading and application of intelligent technology, consumer-end software for vehicle
networking, and networked intelligent hardware.
In the component procurement segment, the Company strives to build an integrated,
adaptable supply chain management system. It sets up a Supply Chain Management
Center and a Business Unit Procurement Center, to select high-quality suppliers and
establish close and friendly long-term supply relationships.
In manufacturing segment, the Company possesses strong comprehensive
manufacturing and process design capabilities. Currently, it has eight production bases
located in Tianjin, Henan, Guangdong, Guangxi, Jiangsu, Chongqing, Zhejiang, and
Shandong, all of which have successively obtained the "World Manufacturer Identifier"
certificate from the National Development and Reform Commission. New bases in
Chongqing, Taizhou, Lishui, and Guigang are under construction, and new bases in
Southeast Asia are in preparation. These new bases are planned with high starting points,
with automation and industrial cluster construction as standard configurations, which are
conducive to further enhancing its comprehensive production capacity. Building upon its
vehicle manufacturing capabilities, the Company also possesses capabilities for
producing and/or developing several key components, including chassis, spray-painted
parts, motors, and electronic controls. Additionally, it has established its presence in fields
such as batteries, handlebars, and front forks.
In the sales segment, the Company carries out marketing based on the distribution model,
under which, it insists on the value integration of factory and dealer. Dealers are not only
direct customers of the Company but also important windows through which the Company
sells products to consumers, provides services, and showcases its brand image, making
them important partners of the Company. The Company has established a
comprehensive dealer management system, empowering dealers through operational
support, training outputs, special services from retail managers, precise push of new retail
order information and others. Sales to dealers generally follow a payment-before-delivery
model. In recent years, the Company has actively explored innovative management
model for dealers and channels, such as implementing the operator model, wherein the
Company directly manages its retail outlets. Next, the Company plans to pilot equity
cooperation with dealers to enhance the motivation effects on dealers.
In the logistics segment, the Company has set up a dedicated smart logistics company,
focusing on improving delivery efficiency, logistics quality, and service quality. The
logistics company has completed the integration of logistics resources for the Company's
seven major production bases and three major component industry clusters, undertaking
most of the Company's vehicle transportation and component transportation services,
using self-developed intelligent systems to link the main value chain segments including
supply, manufacturing, sales, and service. The Company connects procurement,
manufacturing, and marketing orders through its logistics management system,
establishing end-to-end value chain management from suppliers to factories to customers.
Leveraging its primary production bases and the component industry clusters, the
Company constructs a domestic logistics network layout to further enhance its core
competitiveness.
In the service segment, to meet the changing needs of users transitioning from the 'era of
purchasing vehicles' to the 'era of using vehicles', the Company has established a
dedicated service company, committed to creating a full lifecycle service system including
sales, maintenance, vehicle replacement, inspection, leasing, and battery swapping.
Relying on distribution channels, it sets up standardized service stores, providing users
with efficient and high-quality services.
In the shared operation business, the Company actively explores and expands business
and operating models related to the green short-to-medium distance travel ecosystem. By
leveraging its strengths and resources in integrated design and manufacturing,
information systems, channel networks, and operational platforms, the Company has
launched the deployment and operation of shared electric bicycles, including closed and
open application scenarios.
IV. Analysis on Core Competitive Advantages in the Reporting Period
√Applicable ?Not applicable
(I) Precision product development and innovation positioned as "technology and
fashion"
The Company upholds "Technology and Fashion" as its brand proposition, considering
technological advancement and product innovation as the main means to enhance its
core competitiveness and achieve long-term development.
In terms of product development, centering around user demands and prioritizing the
commercial value of products as the primary evaluation criterion, the Company has
established an integrated product development process with strategic individual products
or product lines as project units. This process involves close collaboration and mutual
influence among planning, design, R&D, procurement, production, quality management,
and marketing functions. It allows for precise assessment of user demands and product
positioning, and efficiently and accurately completes product realization, delivering
models that precisely meet the target user group's needs under the predefined quality,
time, and cost constraints. The Company's independently developed innovative models
have won several prestigious awards, including the "Annual Innovative Model" and
"Annual Fashion Model" from the China Motorcycle Annual Model Selection Committee,
and the Gold MUSE Award from the International Awards Associate (IAA) in the United
States.
In terms of technology and craftsmanship, the Company has consistently increased its
investment in independent R&D of foundational, cutting-edge, and engineering
technologies within the industry. It has been continuously introducing new technologies
and materials, improving existing production technologies and processes, thereby
enhancing product performance and added value. This strategy serves as the cornerstone
for the Company to maintain its leading technological and product capabilities. Over the
years, the Company has developed a highly professional and influential R&D team within
the industry. As of December 31, 2023, the Company had over 1,900 patents, and several
of its subsidiaries have been certified as high-tech enterprises.
Regarding fashionable design, the Company has always been a trendsetter in the industry
in terms of vehicle body styling, color coordination, and paint texture. It possesses diverse
capabilities for fashion design innovation, offering a wide variety of models that cater to
different consumer groups' pursuit of fashionable lifestyles and personal expression.
Notably, the Company excels in fashion color innovation; it has established an
industry-leading electric two-wheeler popular color R&D base in collaboration with the
authoritative Chinese Fashion Color Association, achieving various original design results.
It also has collaborated with renowned international color institutions to study industry
color trends and analyze the color stories of its products.
Additionally, the Company actively assumes industry responsibilities and leverages its
advantages in R&D and technology to promote the standardization of industry technology.
It has either led or participated in drafting more than thirty national and industry standards,
including Technical Requirements of “Charger in Electric Bicycle”, “Motor Performance
Testing Methods for Electric Motorcycle and Electric Moped”, “Safety Requirements of
Electric Motorcycle and Electric Moped” and "Test Methods for Energy Consumption Rate
and Range of Electric Motorcycles under User Conditions”. And it has been honored with
the "Advanced Unit in Industry Standardization Work" award by the National Bicycle
Standardization Technical Committee's Electric Bicycle Subcommittee.
(II) Advanced Quality Control System and Solid Production Technology, Ensuring
Stable, High-Quality Product Output
The Company has always regarded technological research and development and product
quality as the cornerstone, continuously advancing and optimizing the entire quality
control system. Utilizing advanced product development processes, the Company
identifies quality issues and optimizes designs through virtual simulations and data
modeling during the design phase. In the product development stage, the Company
implements a closed-loop quality management system for new products, conducting strict
reviews of each quality checkpoint according to its standards, and strictly prohibits any
models with issues from entering the mass production stage. The Company enhances
review standards and revises and replay techniques to improve R&D efficiency. In the
component configuration stage, the Company selects leading brand suppliers for
cooperation, and conducts reasonable supervision of supplier production processes
through incoming material inspection; through providing technical consultation and
management assistance, the Company continuously improves the quality management
levels of its suppliers. In terms of manufacturing, the Company implements
comprehensive, real-time dynamic quality management throughout the entire process; it
also establishes a market quality management system, including mechanisms for early
warning of market feedback information and auditing of market quality issues, which
allows for precise and rapid feedback and improvement of quality issues. For quality
inspections, the Company employs a "five-inspection system" consisting of initial
inspection, self-inspection, mutual inspection, spot inspection, and special inspection on
complete vehicles; it continuously enhances the self-testing capabilities of components
and the testing capabilities during the production process, implementing a combination of
preventive and inspection measures.
The Company's production technology is robust, in frame production, it has introduced
advanced CNC pipe bending machines, fully automatic CNC multi-functional laser cutting
equipment, and welding robots, enhancing production efficiency, frame cutting precision,
welding quality, and product quality. In terms of painting technology, the Company has
established a dust-free painting workshop; and utilizing top-notch electrophoretic
technology and high-quality paint materials, and adopting internal and external
double-layer painting, the frame structure can be effectively covered, enhancing its
resistance to aging, corrosion, and other properties while ensuring product aesthetics. In
terms of assembly processes, the Company has been utilizing fully automatic visual
press-fit machines that employ vision recognition technology to collect data on the first
procedure online, automatically recognizing the frame number to be used as a data carrier
for onsite circulation and traceability. At critical processes for motors and controllers, data
collection points and information display points have been established to guide correct
on-site production operations strictly following the 3C control standards. After complete
vehicles pass the final inspection points, barcode information automatically collected by
industrial barcode readers is pushed to the certificate printing station, triggering the
automatic printing of certificates of conformity, consistency certificates, and external box
codes, reducing human intervention and enhancing on-site operational capabilities.
Drawing inspiration from product development testing models in the automotive industry,
the Company has created a testing process that highly aligns with its product
development flow and manufacturing system, conducting comprehensive testing on
components, systems, and complete vehicles to ensure the stable output of product
quality. The Company has established well-equipped testing departments at various
production bases, possessing over 400 types of testing instruments and equipment, with
over 40 technicians who have undergone ISO/IEC professional training and obtained
certifications. Nine specialized departments have been set up, including a geometrical
dimension testing room, complete vehicle performance test lab, road durability room,
environmental test lab, materials analysis room, electronics and electrical test lab,
mechanical performance test lab, and core technology test labs for "four electrics" (battery,
motor, electronic control, and charger) and an intelligent testing lab. the Company has the
capabilities to test electric two-wheelers, three-wheelers, and some low-speed electric
four-wheelers, and Testing Technology Center of Aima Technology has received an
accreditation certificate from the China National Accreditation Service for Conformity
Assessment (CNAS).
The Company’s products have been sold in the market for years, continuously receiving
authoritative recognition and honors for product quality, including the "National Quality
Integrity Benchmark Enterprise" awarded by the China Quality Inspection Association and
the "AAA Grade Enterprise Credit Rating Certificate" awarded by the China Urban
Transportation Association.
(III) Broad Coverage and High-Efficiency Sales Channel System
In terms of offline channels, the Company actively implements a consumer demand
oriented marketing strategy. Seizing the development opportunities of the electric
two-wheeler market and leveraging the brand influence, the Company has vigorously
expanded its distribution channels, forming a nationwide offline sales network that
achieves economies of scale and rapid expansion. Adhering to the value integration of
manufacturer and dealer, the Company has continuously refined its distributor
management system and framework, attracting highly market-shared and influential
distributors in district/county markets to establish long-term strategic partnerships.
Through years of ongoing accumulation, it has built a flat marketing channel system
based on districts/counties, achieving broad coverage and high-efficiency relative
competitive advantages.
In terms of online channels, the Company has developed a multi-platform online channel
system, including major e-commerce platforms like Tmall, JD.com, Douyin, Xiaohongshu,
and Kuaishou. Leveraging a digital empowerment platform and a nationwide service
network, the Company provides comprehensive and convenient shopping experiences for
online consumers at all times. Additionally, in coordination with its marketing measures,
online channels play a critical role in driving traffic and acquiring new customers.
(IV) High-Quality, High-Efficiency, and Broad-Coverage Service Network
After years of operation and accumulation, the Company has established a
comprehensive service network system, comprising nationwide service outlets, an
efficient work order dispatch system, industry-leading service timeliness and standards,
an efficient spare parts storage and distribution system, a performance evaluation system
quantified by service satisfaction, and a professional service team with clearly defined
roles. The high-quality and efficient service is well-received by consumers and has also
garnered high recognition from authoritative institutions, the National Commodity
After-Sales Service Rating Certification Review Committee has awarded the Company a
five-star rating for its technical support and repair services”, and the China Customer
Contact Center awarded it the "Customer Word of Mouth Award”. Additionally, the
Company participated in drafting industry self-regulatory norms such as "After-sales
Service Specifications for Electric Bicycles" and led the drafting of "After-sales Service
Timeliness Specifications for Electric Bicycles", leading the standardized development of
services in the industry.
(V) Youthful Branding with Leading Industry Influence
With "Technology and Fashion" as its brand proposition, based on fashionable,
tech-oriented, and high-quality products, the Company conducts deep-seated brand
building nationwide. Over years of operation, accumulation, and interaction, the Aima
brand has gained widespread recognition and a high reputation, leading in brand
influence.
In recent years, the Company has taken a series of brand actions to align the Aima brand
with the needs, values, and lifestyles of young consumers, creating a brand image and
experience closely connected with them. To meet the consumption demands of young
groups for fashionable, innovative products, the Company has launched various trendy
models and enhanced the intelligent functions of products. It has refreshed the brand in
line with young people’s aesthetic and taste preferences, including but not limited to
collaborating with the internationally renowned designer Rob Janoff (designer of the Apple
logo) for a high-end upgrade of the brand logo, launching the brand slogan "Fashionable
Aima, Comfortable Travel”, upgrading terminal stores with a stylish touch and opening
women-exclusive fashion stores, and working with well-known international color
institutions for color empowerment of products. The Company respects the popular
culture beloved by young groups and has planed brand and marketing activities around
this theme: sponsoring popular variety shows, signing young idols as brand fashion
ambassadors, collaborating with fashion-influential magazines for big shoots of Aima
models, and conducting cross-brand collaborations with popular IPs, hot games, and
well-known brands, creating an Aima promotional matrix on social media platforms
favored by young users like Bilibili and Xiaohongshu. Interactive brand activities have
been conducted not only to motivate young consumer groups to participate in promoting
the Aima brand but also to integrate the Aima brand into the lifestyle of young consumers:
organizing the Aima Star-Chasing Music Festival, organizing events related to esports
and anime in universities, holding DIY creative contests on campuses, etc. The Company
has been implementing the concept of environmental protection and sustainable
development, demonstrating its brand responsibility and gaining the approval and
emotional resonance of young people for collective efforts to protect our planet.
The qualifications and honors obtained by the Company in brand building include China
Well-known Trademark certification, topping the China Brand Power Index (C-BPI) for
electric bicycles for more than ten consecutive years published by Chnbrand. In recent
years, the Company's efforts in youthful branding have been remarkably successful,
gaining widespread recognition and winning several awards for fashion brand innovation,
such as the Fashion Leadership Enterprise Award and the Fashion Brand Innovation
Award at the 2023 International Science and Innovation Festival, multiple integrated
marketing awards at the 30th China International Advertising Festival, and several awards
at the 13th and 14th Tiger Roaring Festival for its innovative marketing solutions.
(VI) Lean Management for Cost Advantages
The Company has established an end-to-end cost management system, fully tapping into
cost-saving and efficiency-enhancing opportunities across all aspects of the business
operations, including research, supply, manufacturing, sales, and services. It has been
executing systematic, detailed management across all business processes and extending
this approach into the vertical industrial chain to achieve comprehensive value
enhancement. By implementing a product-focused strategy, the Company has
successfully reduced product SKUs and resource usage through precise development,
thereby boosting the return on investment for vehicle models and the efficiency of
individual products. Utilizing digital tools, the Company enables information sharing
throughout the industrial chain, accurately assesses customer demands and market
trends to improve the success rate of product development and the accuracy of sales
planning, which optimizes resource allocation and minimizes the waste of resources
caused by unsold inventory. The Company consolidates procurement volumes through
integrated production planning and centralized procurement, while simultaneously
enhancing the procurement volume of standard and common parts through component
platformization and modularization, thus elevating supply chain efficiency through scaling
and improving quality while reducing costs. It guides the entire industry chain to
implement automation and informatization upgrades, apply new materials, new processes,
or operate new systems, for enhancing the production efficiency of the entire industry
chain. An efficient intelligent logistics platform has been established, integrating resources
and effectively reducing the transportation costs of the Company’s complete vehicles and
components procurement. Through full-process closed-loop lean management in its
operations, the Company has developed a strong competitive advantage in terms of cost.
(VII) Digital and smart management system with full empowerment and efficiency
improvement
The Company has implemented the "361 Digitalization Project" strategy, leading the
Company's digital transformation and constructing a digital management system that
highly aligns with its organizational structure and business processes, thereby fully
empowering all business areas. The Company has developed a digital marketing system
centered around retail and covering the entire marketing workflow, achieving seamless
integration from the enterprise marketing system to the dealer store terminals, facilitating
comprehensive online operations for dealers, fostering efficient collaboration. Leveraging
data, models, and algorithms, the Company has enhanced predictive capabilities, guiding
dealer ordering plans and internal production schedules, significantly improving efficiency.
Additionally, the Company has established an Aima-owned traffic pool, advancing a
user-centric operational framework. With planning as a guiding principle and leveraging
data insights, the Company has comprehensively been analyzing business execution,
driving integrated research, production, supply, marketing, and services. Through user
analysis and research, precise planning, forward development, lean manufacturing, and
integrated logistics, customer needs could be met promptly. By refining operations,
integrating business and finance, and controlling budgets comprehensively, the Company
has established core indicators and performance systems across all areas, enabling
timely and efficient operational reviews and data-driven decision-making, reducing costs
and enhancing efficiency, which marks the preliminary realization of the Company's global
informatization, operational digitization, execution automation, and intelligent
decision-making.
(VIII) Talent Team with High Loyalty and Professionalism
Upholding the talent management philosophy of "showing respect for our staff, improving
their competence and making them happy”, the Company has established a human
resources management system centered on talent development and the enhancement of
human capital. This system includes an attractive compensation and incentive scheme,
multifaceted career advancement pathways, a professional talent training system,
comprehensive employee welfare programs, and an inclusive and creative corporate
culture, making the Company a platform for the development of motivated individuals.
Focused on the talent experience, it has been continuously enhancing employees'
happiness, sense of belonging, professional skills, and career ethics, creating a team
characterized by high loyalty and professionalism.
Adhering to the philosophy of "effort and benefit from the same source”, based on
medium-to long-term strategic objectives and anchored on value creation, the Company
has set performance evaluation indicators, value distribution mechanisms, promotion
systems, and training frameworks that align with value creation, strengthening the role of
organizational development and personal growth in performance assessments and value
distribution. It has been continually refining the short term, medium-and-long term
incentive models and honor systems for employees at all levels. For core management,
technical, and business talents, it has established a competitive, scientifically rational
compensation management system and incentive measures, including multi-level,
normalized stock incentive mechanisms, maximally aligning the interests of shareholders,
the Company, and the core team. Currently, the restricted stock incentive plan for 2021
has completed the release of restrictions for the initial phase, and the stock incentive
efforts for 2023 and 2024 are proceeding smoothly.
V. Major Operation Situation During the Reporting Period
In the reporting period, the Company recorded revenue of RMB 21,036.1209 million,
representing a year-on-year increase of 1.12%, the net profit attributable to shareholders
of the listed company of RMB 1,881.1158 million, representing a year-on-year increase of
shareholders of the listed company of RMB 1,764.4680 million, representing a
year-on-year decrease of 1.83%.
(I) Analysis on principal business
accounts
Unit: Yuan (RMB)
Items Amount of the current year Amount of last year Change (%)
Revenue 21,036,120,862.29 20,802,212,994.46 1.12
Cost of sales 17,562,865,946.73 17,398,502,632.36 0.94
Selling expenses 641,208,788.04 587,315,848.35 9.18
Administrative expenses 474,276,849.74 432,777,222.67 9.59
Financial expenses -410,276,786.83 -382,697,297.50 N/A
R&D expenses 589,467,221.52 506,685,038.01 16.34
Net cash flows from operating
activities
Net cash flows from investing
-1,910,192,713.51 -2,178,319,161.48 N/A
activities
Net cash flows from financing
activities
Reasons for the changes in revenue: This was primarily due to the Company's focus on its
core business and continuous exploitation of its brand advantages, which led to a slight
increase in operational performance.
Reasons for the changes in cost of sales: The increase was mainly attributed to changes
in the scale of sales, which grew in tandem.
Reasons for the changes in selling expenses: This was primarily due to market
competition, prompting the Company to expand its sales team and increase marketing
and promotional investments.
Reasons for the changes in administrative expenses: The increase was mainly due to
higher expenditures on professional consulting services and an increase in the
amortization of information systems during the reporting period.
Reasons for the changes in financial expenses: This was primarily due to an increase in
the average scale of funds managed by the Company during the reporting period,
resulting in increased interest income.
Reasons for the changes in R&D expenses: This was mainly due to the expansion of the
R&D team, increased investment in R&D, and higher depreciation and amortization of
R&D equipment.
Reasons for the changes in net cash flows from operating activities: The change was
mainly due to the effects of settlement cycles and methods, with payments for purchases
from the previous year increasing year-on-year during the reporting period.
Reasons for the changes in net cash flows from investing activities: The change was
primarily due to a year-on-year decrease in the net amount of low-risk financial products
purchased and redeemed during the reporting period. Additionally, there was an increase
in the purchase of land for the construction of production bases in Taizhou, Lishui, and
Chongqing, as well as increased investment in the construction of these production
bases.
Reasons for the changes in net cash flows from financing activities: The change was
primarily due to the Company raising funds through the issuance of convertible bonds
during the reporting period. There was also an increase in cash dividend payouts under
the equity distribution for the fiscal year 2022 and the first half of 2023. Furthermore, the
Company repurchased shares using cash as consideration through centralized
competitive bidding.
Detailed description of major changes of the Company in business type, profit makeup or
profit source
?Applicable √Not applicable
√Applicable ?Not applicable
In the reporting period, the Company recorded revenue of RMB 21,036.1209 million,
representing a year-on-year increase of 1.12%, and cost of sales of RMB 17,562.8659
million, representing a year-on-year increase of 0.94%, as the Company achieved
performance growth by focusing on its core business, and continually leveraging its brand
advantages.
(1) Principle operating activities by industry, product, region and sales model
Unit: Yuan (RMB)
Principal operating activities by industry
Gross Revenue Cost of sales
Gross profit
Cost of profit increased/ increased/
By industry Revenue margin increased/
sales margin decreased decreased yoy
decreased yoy (%)
(%) yoy (%) (%)
Railway, ship,
aerospace and
other transport 17,455,112 Increased by 0.16
equipment ,116.87 percentage points
manufacture
industries
Principal operating activities by product
Gross Revenue Cost of sales
Gross profit
Cost of profit increased/ increased/
By Product Revenue margin increased/
sales margin decreased decreased yoy
decreased yoy (%)
(%) yoy (%) (%)
Electric 10,716,325 Decreased by 0.46
bicycles ,781.16 percentage points
Electric
two-wheel 14.76 -18.72 -18.38
motorcycles
Electric 1,434,64 1,124,810, Increased by 5
tricycles 2,114.17 467.69 percentage points
Sale of parts 15.65 10.44 6.59
Others 15.57 4,288.41 4,006.55 /
Principal operating activities by region
Gross Revenue Cost of sales
Gross profit
Cost of profit increased/ increased/
By region Revenue margin increased/
sales margin decreased decreased yoy
decreased yoy (%)
(%) yoy (%) (%)
Northeast 482,866, 402,386,11 Increased by 1.8
China 250.03 9.43 percentage points
East China 16.81 -9.66 -9.3
North China 15.14 -10.74 -10.55
Central China 16.9 15.66 13.25
South China 14.62 -4.74 -2.55
Southwest 1,890,90 1,559,442, Increased by 2.77
China 4,494.15 029.99 percentage points
Northwest 1,476,37 1,229,102, Increased by 0.81
China 0,151.18 090.86 percentage points
Overseas 19.79 2.21 3.85
Undefined 66,439,0 53,935,502 Increased by 11.45
region 39.91 .42 percentage points
Principal operating activities by sales mode
Change of
Gross Change of cost Change of gross
revenue
Cost of profit of sales profit margin
Sales model Revenue compared
sales margin compared with compared with last
with last
(%) last year (%) year (%)
year (%)
Distribution 71,412.4 16.4 1.25 1.2
,262.53 percentage points
Direct sales 15.78 -5.58 -9.13
Description of principal operation by industry, product, region, sales model
①Description of revenue and cost of sales of principal operation by industry: During the
reporting period, the Company focused on its core business and continuously leveraged
its brand advantages, resulting in a slight increase in operational performance.
②Description of principal operation by product: During the reporting period, sales of the
Company's main product, electric bicycles, experienced a slight increase; however, sales
of electric two-wheel motorcycles declined year-on-year due to market competition and
consumer habits. Demand for electric tricycles showed a trend of accelerated growth; due
to the acquisition of Geling New Energy, the combined revenue from the other
short-distance transportation products significantly increased.
③ Description of principal operation by region: The Company actively expanded its
business channels and adjusted the balance of its main domestic sales regions.
④ Description of principal operation by sales model: The Company primarily operates
through a dealership model, which has led to a slight increase in operational performance.
(2) Production and Sales Analysis Table
√Applicable ?Not applicable
Production Sales
Inventory
volume volume
Production Sales increased/
Main product Unit Inventory increased/ increased/
volume volume decreased
decreased decreased
yoy (%)
yoy (%) yoy (%)
Electric
Set 7,529,192 7,603,011 206,420 3.73 5.06 -26.34
bicycles
Electric
two-wheel Set 2,673,154 2,686,623 63,499 -17.86 -17.83 -17.5
motorcycles
Electric
Set 429,377 426,727 16,974 62.97 63.22 18.5
tricycles
Others Set 26,242 25,108 1,803 1,178.85 428.03 29,950.00
Total Set 10,657,965 10,741,469 288,696 -1.12 -0.29 -22.3
Description of production and sales volumes
During the reporting period, the Company saw a slight year-on-year increase in electric
bicycle sales; electric two-wheel motorcycles experienced a decline due to market
competition and consumer habits; electric tricycles saw strong market demand and good
sales; due to the acquisition of Geling New Energy, there was a significant increase in the
combined production, sales, and inventory of the other short-distance transportation
products.
The Company maintained stable production and inventory levels and adjusted among
different product categories based on market orders.
(3) Performance of major purchasing contracts, major sales contracts
?Applicable √Not applicable
(4) Cost Analysis Table
Unit: Yuan
By industry
Change in
Percentage Percentag amount
Amount in
Current period of total costs e of total compared
By industry Cost components same period
amount this period costs last to same
last year
(%) year (%) period last
year (%)
Railway, ship, 16,586,622,78 16,498,119,09
Direct materials 95.02 95.3 0.54
aerospace 7.13 4.70
and other
transport Direct labor and
equipment manufacture 4.98 4.7 6.63
manufacture expenses
industries
Total 100 100 0.91
By product
Change in
Percentage Percentag amount
Amount in
Current period of total costs e of total compared
By product Cost components same period
amount this period costs last to same
last year
(%) year (%) period last
year (%)
Direct materials 57.76 54.77 6.33
Direct labor and
Electric 634,262,560.1 586,195,389.6
manufacture 3.63 3.39 8.2
bicycle 1 3
expenses
Sub-total 61.39 58.16 6.44
Direct materials 27.6 34.01 -18.18
.37 .03
Electric Direct labor and
two-wheel manufacture 0.75 1.01 -25.24
motorcycle expenses
Sub-total 28.35 35.03 -18.38
.25 .68
Direct materials 5.91 3.54 68.49
.34 2
Direct labor and
Electric
manufacture 92,388,336.35 0.53 52,362,529.15 0.3 76.44
tricycle
expenses
Sub-total 6.44 3.84 69.12
.69 7
Direct materials 0.62 2,607,577.70 0.02 4,053.27
Direct labor and
Others manufacture 10,507,506.40 0.06 285,541.45 0 3,579.85
expenses
Sub-total 0.68 2,893,119.15 0.02 4,006.55
Sale of parts Direct materials 3.14 2.96 6.59
Total 100 100 0.82
Description of other situations in cost analysis
During the reporting period, the overall cost structure of the Company's main products
remained stable, with no significant changes.
(5) Changes in the scope of consolidation due to changes in shareholdings of
major subsidiaries during the reporting period
?Applicable √Not applicable
(6) Major changes in the Company's business, products, or services during the
reporting period, or any relevant adjustments
?Applicable √Not applicable
(7) Major customers and major suppliers
A. Major customers of the Company
√Applicable ?Not applicable
The total sales amount to the top five customers was RMB 1,399.6965 million, accounting
for 6.65% of the annual sales amount. Among the sales to the top five customers, the
amount of sales to the related parties was nil, accounting for 0% of the annual sales
amount.
In the reporting period, the circumstance that sales ratio to single customer exceeded
on minority customers
?Applicable √Not applicable
B. Major suppliers of the Company
√Applicable ?Not applicable
The total purchasing amount from the top five suppliers was RMB 6,124.1322 million,
accounting for 37.45% of the annual purchasing amount. Among the purchase from the
top five suppliers, the amount of purchase from the related parties was nil, accounting for
In the reporting period, the circumstance that purchasing ratio from single supplier
exceeded 50% of total amount, there were new suppliers in top five suppliers or it
seriously relied on minority suppliers
?Applicable √Not applicable
√Applicable ?Not applicable
Change
Expense item Current year Prior year Reasons for changes
(%)
Mainly due to market competition, the
Selling Company expanded its sales team and
expenses increased investment in marketing and
promotion.
Mainly due to increases in professional
Administrative consulting service expenses and
expenses amortization of information systems
during the reporting period.
Mainly due to the increase in the average
Financial fund size managed by the Company
-410,276,786.83 -382,697,297.50 N/A
expenses during the reporting period, resulting in
higher interest income.
Mainly because the Company expanded
R&D its R&D team, increased R&D
expenses investments, and saw higher depreciation
and amortization of R&D equipment
(1). Table of R&D expenditure
√Applicable ?Not applicable
Unit: Yuan
Research and development input expensed in current period 589,467,221.52
Research and development input capitalized in current period 0
Total of research and development input 589,467,221.52
Ratio of total R&D input in revenue (%) 2.8
Ratio of capitalization of R&D input (%) 0
(2). Table of R&D Personnel
√Applicable ?Not applicable
Quantity of R&D personnel of the Company 1,089
Ratio of R&D personnel in staff of the Company (%) 11.49
Educational structure of R&D personnel
Category of educational structure People in educational structure
Doctorate 3
Master degree 21
University 429
Junior college 364
High school and below 272
Age structure of R&D personnel
Category of age structure People in age structure
Below 30 (exclusive) 346
Above 60 0
(3). Description of situation
?Applicable √Not applicable
(4). Reasons of major change about R&D personnel structure and impact on future
development of the Company
?Applicable √Not applicable
√Applicable ?Not applicable
Cash flow Change
Current year Prior year Description of change reasons
item (%)
Net cash Primarily due to the impact of the
flows from settlement cycle and method, payments
operating for last year's procurement increased
activities year-on-year during the reporting period.
During the reporting period, the decrease
in the year-on-year difference in
Net cash purchasing and redeeming low-risk
flows from financial products and increased
-1,910,192,713.51 -2,178,319,161.48 N/A
investing investments in land and construction for
activities the Taizhou, Lishui, and Chongqing
production bases were the primary
factors.
During the reporting period, the Company
Net cash raised funds by issuing convertible bonds,
flows from increased cash dividend payouts for the
financing 2022 annual and 2023 interim equity
activities distributions, and repurchased shares
through centralized bidding using cash.
(II) Description of major changes in profit caused by non-principal businesses
?Applicable √Not applicable
(III) Analysis on assets and liabilities
√Applicable ?Not applicable
Unit: Yuan
Percentage Percentage Year-
Closing
of closing Closing of closing on-ye
balance
balance of balance balance of ar
Item of Description of change
current year of last last year in Chan
current
in total year total assets ge
year
assets (%) (%) (%)
The primary reason was the
Prepayment 36,627,8 17,554,5 108.6
s 83.96 74.37 5
expenses.
This was mainly due to a
decrease in receivables for
Other 15,687,9 28,051,9
receivables 06.27 20.26
increase in proceeds from the
disposal of fixed assets.
This stemmed from an increase
Other
current 0.60 0.42 55.65
assets
assets.
Non-current The primary reason was the
assets due 1,628,46 3,524,70 recovery of time deposits due
within one 0,684.93 8,328.77 to mature within a year at the
year period's end.
This was mainly due to
increased investment in the
Constructio
n in 4.99 0.47
progress
Chongqing production bases
during the reporting period.
This was primarily due to the
Intangible 715,925, 457,986, purchase of construction land
assets 849.18 772.95 for the Taizhou, Lishui, and
Chongqing production bases.
This was mainly because the
tax discrepancy from the
Deferred tax 167,938, 84,023,2
assets 840.75 63.65
decreased at the end of the
reporting period.
This resulted from the
Other Company's additional
non-current 28.97 20.62 51.29 purchases of three-year term
assets deposits during the reporting
period.
This was due to the repayment
Short-term 511,250,
borrowings 000.00
during the reporting period.
Non-current This was due to an increase in
liabilities 17,568,1 5,682,22 209.1 bonds payable and lease
due within 22.60 4.67 8 liabilities maturing within a
one year year.
Bonds 1,644,65 8.27 N/A This stemmed from the
payable 0,128.51 issuance of convertible bonds
during the reporting period.
This was due to an increase in
Deferred 292,432, 198,066, government grants related to
income 400.56 664.29 assets received during the
reporting period.
The main reason was the
Company's capital reserve
Equity 4.33 3.11 49.98 being converted to increased
share capital during the
reporting period.
This was because of an
Other equity 432,645, increase in the equity portion of
instruments 369.56 convertible bonds issued
during the reporting period.
This resulted from the
Treasury 481,505, 134,953, 256.7
stock 173.88 200.00 9
during the reporting period.
This was due to the parent
Surplus 430,962, 290,784, company's sustained
reserves 503.50 296.91 profitability and the increased
provision for surplus reserves.
This was because of increased
Other foreign currency translation
comprehen 268.34 0.000001 N/A differences for overseas
sive income subsidiaries at the end of the
reporting period.
This was due to the inclusion of
Minority Geling New Energy within the
shareholder 0.34 0.07 consolidation scope, increasing
s' equity minority interest and profits of
the subsidiary Aima Logistics.
√Applicable ?Not applicable
(1) Asset Scale
Among them, overseas assets amount to 57,463,879.61 yuan (unit: RMB), accounting for
(2) Explanation of high proportion of overseas assets
□ Applicable √ Not Applicable
√Applicable ?Not applicable
Item Closing book value Restriction reason
Currency funds 628,724,982.33 Pledged as bill guarantee deposits
Pledged for issuing bank acceptance
Other non-current assets 4,831,970,833.33
bills
Non-current assets due Pledged for issuing bank acceptance
within one year bills
Total 6,960,695,815.66 /
?Applicable √Not applicable
(IV) Analysis on industrial operation information
?Applicable √Not applicable
(V) Analysis on investment status
Overall analysis on external equity investment
√Applicable ?Not applicable
As of December 31, 2023, the balance of the Company's long-term equity investments
was 127,264,000 RMB, with the balance at the beginning of this reporting period being
The main changes in external equity investments during the reporting period are as
follows: ① The Company subscribed to a portion of the equity of Guangxi Ningfu by
contributing 51,785,700 RMB as an increase in capital, owning 1.97% of Guangxi Ningfu's
equity as of the end of the reporting period. ②The Company invested 17,500,000 RMB
together with Tianjin Shengyuan Investment Group Co., Ltd. to establish Chongqing Xintai,
holding a 35.00% equity stake. ③ The Company purchased an 11.00% equity stake in
Geling New Energy from Taizhou Yuanpingzi Electromechanical Technology Co., Ltd. for
Geling New Energy was included in the consolidation scope.
?Applicable √Not applicable
√Applicable ?Not applicable
(1) Guigang Production Base
In July 2022, the Company held the 28th Meeting of the Fourth Board of Directors, which
approved the proposal to sign an Investment Agreement with the Guigang Municipal
People's Government. The Company agreed to a total investment of approximately 1.15
billion RMB for the construction of the Aima Smart Travel Industrial Park in Guigang,
implemented by the wholly-owned subsidiary Guangxi Vehicle. As of the end of the
reporting period, Guangxi Vehicle had obtained the construction and building permits, and
the Guigang production base project is under construction.
(2) Lishui Production Base
In November 2021, the Company held the Second Extraordinary General Meeting of 2021,
which approved the proposal to sign an Investment Agreement with the Qingtian County
People's Government of Lishui City. The Company agreed to a total investment of
approximately 2 billion RMB for the construction of the Aima New Energy Smart Travel
Eco-Industrial Park project in Qingtian County, Lishui, implemented by the wholly-owned
subsidiary Lishui Vehicle. Lishui Vehicle has obtained the necessary construction and
building permits, and the Lishui production base project is under construction.
(3) Taizhou Production Base
In September 2021, the Company held the 21st Meeting of the Fourth Board of Directors,
which approved the proposal to sign the Taizhou Intelligent Electric Vehicle and
High-Speed Electric Motorcycle Project Investment Agreement. The Company agreed to a
total investment of approximately 1 billion RMB for the construction of the Taizhou
Intelligent Electric Vehicle and High-Speed Electric Motorcycle project in Huangyan
District, Taizhou, implemented by the wholly-owned subsidiary Taizhou Manufacture. As of
the end of the reporting period, the Taizhou production base had obtained all necessary
construction permits, and the project is under construction.
(4) Chongqing Production Base
In August 2021, the Company held the 1st Extraordinary General Meeting of 2021, which
approved the proposal to sign a Project Agreement with the Management Committee of
the Tongliang High-tech Industrial Development Zone in Chongqing. The Company
agreed to an investment plan of approximately 2 billion RMB to build the Aima Southwest
Manufacturing Base in the Tongliang District of Chongqing, implemented by the
wholly-owned subsidiary Chongqing Vehicle. The first phase of the Chongqing production
base has officially commenced production. As of the end of the reporting period, the
second phase of the Chongqing production base had obtained the construction and
building permits, and the project is under construction.
√Applicable ?Not applicable
Fair Accumulat Impair
Purch Sales/re
Begin value ed fair ment
ases demption other
ning change value provisio Ending
Asset category during s during Change
balan during change n for balance
the the s
ce the recognize the
period period
period d in equity period
Stocks
Other Equity
Investment 0
Instruments
Financial 6,918. 42,70 -37,642 12,020.
Products 87 2.62 .68 14
Receivables 833.2
Financing 8
Total
During the reporting period, the Company subscribed to a portion of the equity of Guangxi
Ningfu by contributing additional capital. Since the shareholding ratio did not exceed 5%,
the Company did not have a significant influence over Guangxi Ningfu and accounted for
this investment as a financial instrument measured at fair value through other
comprehensive income. Following the resolution of Guangxi Ningfu’s shareholders’
meeting on June 30, 2023, which approved the addition of the Company's Chairman
Zhang Jian as a director of Guangxi Ningfu, the Company obtained significant influence
over Guangxi Ningfu. Therefore, during the reporting period, it reclassified this investment
as a long-term equity investment accounted for using the equity method, no longer
measured at fair value.
Securities investment
√Applicable ?Not applicable
Unit: Ten Thousand Yuan (RMB)
Pur
Op Gains or Accumula
Co cha Sold
Cate eni losses tive Gain
de Initial Sour ses amoun Account
gory Abbr ng arising changes or loss Closin
of inves ce of duri t ing
of eviati boo from in fair on g book
sec tmen fundi ng during categor
secur on k changes value invest value
urit t cost ng the the y
ity val in fair recognize ments
y peri period
ue value d in equity
od
Self-
Tian Financia
Stoc neng 8,39 -1,764.0 -1,764. 5,584. l assets
k Shar 9.79 0 00 00 held for
.SH fund 00
e trading
s
Description of Securities Investment Situation
√Applicable ?Not applicable
On December 1, 2020, the Company convened the 12th Meeting of the Fourth Board of
Directors, which approved the proposal on Signing a Strategic Placement Subscription
Agreement with Tianneng Battery Group Co., Ltd. The Company agreed to participate as
a strategic investor in the strategic placement of Tianneng Battery Group Co., Ltd., using
its own funds not exceeding 100 million RMB. The investment transaction was completed
in January 2021. As of the end of the reporting period, the Company had not reduced its
holdings in the related stocks.
Private equity investment
?Applicable √Not applicable
Derivatives investment
?Applicable √Not applicable
reporting period
?Applicable √Not applicable
(VI) Sale of major assets and equity
?Applicable √Not applicable
(VII) Analysis on major subsidiaries and Investees
√Applicable ?Not applicable
Unit: Ten Thousand Yuan (RMB)
Name of Control Registered Total Net Rev
Main business Net profit
company relationship capital assets assets enue
Development,
Aima manufacture and sale of 1,07
Wholly-owne 499,075. 200,68 150,593.
Chongqin electric bicycle, electric 1,000 8,80
d subsidiary 24 8.83 67
g moped, electric 6.66
motorcycle
Development,
manufacture and sale of
Wholly- 631,
Tianjin electric bicycle, electric 270,681. 60,890. 44,327.4
owned 10,000 296.
Vehicle moped, electric 85 74 1
subsidiary 10
motorcycle, electric
tricycle
Development,
Wholly- manufacture and sale of 533,
Jiangsu 153,142. 40,832. 22,227.4
owned electric bicycle, electric 44,000 656.
Vehicle 82 01 7
subsidiary moped, electric 95
motorcycle
Development,
Guangdo Wholly- manufacture and sale of 229,
ng owned electric bicycle, electric 10,000 625.
Vehicle subsidiary moped, electric 28
motorcycle
In the reporting period, net profit realized by the above major wholly-funded subsidiaries
came from the production and sales of major products including electric two-wheelers,
electric tricycles. Other subsidiaries and associates of the Company were in normal
operation, and their profit and loss situation had little impact to the Company.
(VIII) Structured entities controlled by the Company
?Applicable √Not applicable
VI. Discussion and Analysis of the Company on Its Future Development
(I) Industrial structure and trend
√Applicable ?Not applicable
At the current stage, as the "New National Standard" reaches its end phase, consumer
demand is showing trends of diversification, High-end, smart integration, and
internationalization. The industry participants are transitioning from the original
"manufacture and sell" model to a "product and service provision" model based on
satisfying consumer demands. A large number of companies lacking the ability to
perceive consumer needs and to fulfill them, with low standardization, small scale, and
poor overall operational efficiency, have been eliminated or shut down, resulting in a
continuous increase in industry concentration.
From the perspective of corporate characteristics, industry participants mainly include two
types of enterprises: The first type is innovative brand enterprises, which focus on
continuous innovation and R&D, and strive to lead industry development. often being able
to keenly perceive trends in user demands and swiftly introduce innovative products
based on these insights, thereby gaining a competitive edge in the market. They hold
numerous patents and innovative products, demonstrating a robust ability to adapt to
market changes, which allows them to flexibly respond to challenges from competitors.
The second type of business is the follower brand, which has weaker capabilities in
innovation. These companies often face technological barriers, product homogeneity, and
a passive following of market trends, placing them at a disadvantage in competition.
Table Market competition landscape of electric two-wheelers
User demand User demand Comprehensive
Market Original research and Competitiv
insight fulfillment operational
participant innovation capability e capability
capability capability efficiency
Innovative brand
Strong Strong Strong High Strong
enterprises
Follower brand
Weak Weak Weak Low Weak
enterprises
(1) Policy
Policies are increasingly refining the regulatory framework. The implementation of
the “New National Standard”, along with other industry policies, has standardized
industry development and created opportunities for leading companies.
Implementation of “New National Standard” brings changes in competition order and
market volume.
The inspection rules of Old National Standard are divided into three categories, veto items,
important items and common items. The electric bicycle, meeting all veto items, at least
qualified in inspection conclusion. The “New National Standard” does not distinguish the
inspection rules of electric bicycle, all technical parameters are mandatory and r
emphasize the non-motorized vehicle status of electric bicycles, such as a maximum
speed limit of 25 km/h, and includes technological measures against tampering with
speed.
With implementation of “New National Standard”, in order to further strengthen
transportation safety management, the administrative departments implement transition
period management policy for the existing electric bicycles that exceed the standard, and
each local government set the transition period. After the transition period expires, the
electric bicycles exceeding the standard will not be allowed to run on the road again. Local
governments promulgated the management policies for electric bicycles that exceed the
standard, and set different transition periods (generally 5 years, i.e. closing before the end
of 2024). And also they strictly executed the “New National Standard”, and the digital and
smart transport monitoring equipment and execution tools greatly reduced execution
difficulty, therefore, the implementation effect of the “New National Standard” was good,
and the replacement demand increasing every year extended the industry’s market
volume.
After implementation of the “New National Standard”, the demand for electric mopeds and
electric motorcycles significantly increased, many manufacturers had to pass strict entry
examination in order to obtain production and management qualification. In addition, all
electric two-wheelers must pass 3C authentication before sale in the market, and the
authentication would generate certain expenses. These measures have significantly
raised industrial entry barrier and the operating costs of whole vehicle manufacturers,
accelerated survival of the fittest in the industry, and had active promotion action for
regulating development and competition order of electric two-wheeler vehicle industry. In
view of implementation effect of “New National Standard” in recent two years, integration
showed acceleration trend in the industry, and the market share would be concentrated to
the leading enterprises.
The industry supervision and administration policies promulgated and implemented in
recent years were mainly related to safety (including riding safety and fire safety).
Benefiting from digital and smart transportation monitoring equipment and execution tools,
the execution strength and effectiveness continue to increase, and the safe use of electric
two-wheelers and industrial order are strictly regulated from production, sales, and user
ends.
In July 2021, the State Taxation Administration, Ministry of Industry and Information
Technology, and Ministry of Public Security jointly released the Measures for the “Use of
Motor Vehicle Invoices”. Enterprises which manufacture and sell motor vehicles shall
issue unified invoices for the motor vehicles which they have sold according to the
principle of “one invoice for one vehicle”, and any electric motorcycles and electric
mopeds not issued with invoices cannot obtain license plates and run on the road. The
'one invoice for one vehicle' policy facilitates after-sale claims by consumers and
effectively eliminates asymmetrical competition in the industry.
In addition, occurrence of public safety accidents arising from electric two-wheelers on fire
catches more social attention in recent years. Execution of the rule “electric vehicles shall
not be upstairs” is stricter, safe charging has become a focal point in consumption and an
important issue affecting the development of the industry, and generated a huge potential
demand market, and also provided room for business expansion and performance growth.
(2) Society
The common view of “low carbon emission and green transport” and worse traffic
jam to commute habit made more users to accept electric two-wheelers.
In recent years, environmental protection has become a global consensus. In response to
the increasingly evident climate risks and the series of issues they precipitate,
governments worldwide have taken action. China has set forth the "Dual Carbon" goals
(carbon peak by 2030 and carbon neutrality by 2060) and continuously refined its legal
and regulatory framework for low-carbon emissions reduction, actively advocating for
green, environmentally friendly concepts. Under such circumstances, the notion of
"low-carbon green travel" has gradually become a social consensus. Electric
two-wheelers, with their environmentally friendly and economical characteristics, align
perfectly with the consumer demands of green travel. Concurrently, as urban traffic
congestion worsens, many families and individuals, despite owning cars, are opting for
electric two-wheelers as a flexible and convenient mode of transportation for short and
medium distances due to their maneuverability and ease of parking.
(3) Economy
The medium and short-distance travel demand of residents is basic, transport cost
advantage makes electric two-wheeler as major selection for medium and
short-distance travel; the rise of take-out distribution and other emerging
businesses remarkably extend the use scenarios of electric two-wheelers.
With economic development and urbanization progress, the travel radius of residents
(including urban and rural residents) continually increases, and the medium and
short-distance travel demand is increasing. Compared with other medium and
short-distance vehicles, electric two-wheeler has the following advantages: economical,
convenient, time-saving and labor-saving, and the transportation cost advantage is even
more obvious, this highly meets the demand of residents and it becomes the major
selection of residents for medium and short-distance travel. This is the basic drive factor
of industry development.
Furthermore, when consumption awareness of residents improves and the “Internet +”
service model is becoming mature in China, various door-to-door services have become
mainstream of new consumption, take-out services driven under O2O (online/offline)
model and express services driven under e-commerce have become the new
consumption scenarios of electric two-wheeler, which benefits the expansion of industry
capacity.
(4) Technology
In-depth research on the design, technology, and processes of electric
two-wheelers, along with the ongoing integration of networking and intelligence,
drives the industry's technological development.
Industry technologies are developed mainly in two paths, one is innovation and
improvement of the inherent technology system of the industry (including material,
process and structure), including performance improvement of core hardware such as
battery, application of new environment-friendly materials and new technologies,
improvement of vehicle body structure. The other is technical application crossing
industries, networking and smart technical application is the R&D field of current important
cross-industry technical application. Both of them jointly promote technology development
of the industry, improvement of product performance and function expansion, and it is
beneficial that the products in the industry obtain wider market recognition. After the
leading enterprises with strength in R&D investment acquire economic interest from
research and development, they will further increase input in R&D and design, so that it
can generate good cycle of R&D - design - manufacture - sale, and promote improvement
of industry concentration and whole upgrading of industry.
(5) International demand
Carbon emission reduction is an important strategic consensus formed on a global
scale. Against the backdrop of continuous implementation of carbon reduction
policies worldwide, the international market for electric two-wheelers is showing a
growing trend.
Since electric two-wheelers emerged, the domestic market has been the primary
consumption market, while demand for electric two-wheelers in the international market
has been low. Compared with electric two-wheelers, motorcycles and electric assistance
products with leisure and fitness functions are greatly accepted by overseas customers.
While environmental protection awareness is being strengthened in the world, many
countries promulgate relevant policies for “prohibiting motorcycle” or encouraging
“replacing oil with electricity”, and the demand for electric two-wheelers in the international
market shows increasing trend, and this provides another huge development space for
the industry.
Economic transformation and consumption upgrading, application of networking
and smart technologies, along with the rise in international demand due to carbon
peaking and carbon neutrality goals, will drive the electric two-wheeler industry
towards differentiation, high-end, smart, and international directions.
(1) Differentiation
Electric two-wheelers in early days mainly met the short-distance travel demand of the
public, and the products focused at riding function and cost performance, they had simple
functions and are homogeneous. With the improvement of residents' living standards and
the trend towards consumption upgrading, the consumption demand for electric
two-wheelers changes to the direction of quality, function, personality and experience,
including color, vehicle model and style (such as business, fashion and sports), driving
mileage, smart interaction, riding comfort, brake safety, stability, etc. In the trend of
consumption demand transformation and consumption upgrading, electric two-wheelers
will show differential trend, namely, manufacturers carry out precise identification and
deep research to segmenting consumption demand, and organize customized production
according to different personal demands.
(2) High-end
With more intensive competition in the industry, restructuring of industry order and change
of consumption demand, high-end will be the necessary option of electric two-wheeler
industry, and is also only way of brand enterprises. High-end trend of the industry includes
three aspects: first, product function upgrading and expansion, second, brand
re-positioning and extension, third, overall high-end transformation. Overall high-end
transformation mainly refers to innovation, evolution and upgrading of the existing
industrial pattern under the networking, smart and digital trend.
(3) Smartness
Consumption upgrading and cross-industry technical application provide opportunities for
smart development of the industry, including development and application of automatic
driving, automatic parking, smart navigation, automatic unlocking, health testing, remote
failure diagnosis, anti-theft warning and other smart modules. Especially, Gen Z people,
who have been one of the major consumption groups, pay more attention to smart
unlocking, human-vehicle interconnection and other smart functions. With continual
development of Internet of vehicles, smart function is hopeful to be the standard function
configuration. At that time, electric two-wheelers will not be limited to be short-distance
transport vehicle, and they will become an important part of residents' smart networking
media systems and a significant source of social networking data.
(4) Internationalization
With formation of international common view on carbon emission reduction and
understanding of overseas users about green and convenient characteristics of electric
two-wheeler, international market faces development opportunity, electric two-wheeler
industry will gradually move from domestic market to global market. At present, many
domestic manufacturers in China are intensifying their efforts to expand into the
international market. Despite the obstacles posed by trade protectionism during
internationalization, the unique advantages of the electric two-wheeler industry and the
international strategies of leading enterprises will help electric two-wheelers enter the
overseas market, and this will become the important development trend of this industry.
(II) Development strategy of the Company
√Applicable ?Not applicable
The Company consistently adheres to the strategic development axis of " Users First,
Excellent Products, In-depth Development in the Market, Refined Operation" continuously
focusing on the field of convenient short-distance transportation. Specializing in the
innovation, research and development, and manufacturing of electric two-wheelers, the
Company has built an end-to-end quality management system to provide consumers with
competitive products and travel solutions. Facing future market development trends
toward youthfulness, fashion, intelligence, and low carbon, the Company maintains and
promotes the transformation from a single vehicle seller to a travel solutions provider, from
a leader in travel products to a leader in the travel ecosystem, from a domestic brand to an
international brand, and from a manufacturing-based company to a technology-based
company. Committed to becoming a platform-based technology fashion company that
provides green and convenient travel solutions, the Company continues to create value
for shareholders, society, customers, and partners.
(III) Business plan
√Applicable ?Not applicable
Centering on user needs, the Company advances the integrated development process of
products and the strategic project of creating major products, achieving both the
development of the right products and their correct development. Simultaneously, by
precisely judging user needs and market trends, the Company continues to invest in core
industry technologies, implementation of intelligent functions, and the application of new
technologies and processes, constantly enhancing the full-process quality control system
to ensure the continuous delivery of advanced performance and stable quality products
that precisely meet the target user group's demands.
The Company firmly adheres to the direction of integrated manufacturer and vendor value,
continuously advancing channel expansion. By utilizing an efficient information system,
the Company refines channel management and empowers dealers, enhancing the
operational capabilities and output of individual stores. Simultaneously, it actively explores
innovative channel models to improve channel operational efficiency and effectiveness.
Relying on dealer channels, the Company promotes the expansion of specialized service
stores to build a service system that covers the entire product lifecycle, providing users
with efficient and high-quality services. The Company intensifies exploration of online
channels to attract traffic and acquire new customers, promoting the coordinated
development of offline and online channels.
To build a supply chain that ensures supply security, stable quality, and cost-effectiveness,
the Company focuses on "improving quality, concentrating volume, and reducing costs”. It
continuously advances supplier tier management and precise empowerment, creating a
high-quality supplier base. Collaboratively advancing R&D, quality management, and
production, the Company deeply involves key suppliers in the R&D and production
processes, advocating the use of new materials, technologies, and processes to achieve
cost reductions while ensuring component quality. The Company continuously
strengthens the localization of the supply chain to enhance supply security and speed.
Centering on the rejuvenation and fashion renewal of the brand, the Company plans and
conducts corresponding brand and marketing activities. Simultaneously, adjusting the
product structure as a marketing focus, the Company intensifies marketing efforts on
popular models.
Focusing on achieving goals in quality (Quality), cost (Cost), and delivery time (Delivery),
the Company undertakes relevant work in automation, informatization construction, lean
production, and the application of new technologies and processes.
The Company continuously promotes the construction of digital intelligence engineering,
empowering various business units, and continually enhancing the Company’s
capabilities in "data nurturing, data management, and data utilization”, establishing a
data-driven management capability.
Increasing investment, the Company steadfastly adopts a localization strategy to expand
into international markets, focusing on key markets to achieve synergistic development of
OEM large customers and independent brand business; building core competitiveness for
the global market.
Further optimizing organizational levels, clarifying functional responsibilities, and
comprehensively implementing performance outcomes in talent cultivation, selection, and
incentive mechanisms; enhancing the cultivation of skilled talents, improving the training
and development system for skilled talents, and establishing a professional development
channel for skilled talents linked with salary distribution; intensifying the introduction of
strategic talents to provide long-term stable growth for the Company.
(IV) Potential risks
√Applicable ?Not applicable
Competition in the electric two-wheeler industry is increasingly intensive. In recent years,
with regulatory development of industry and optimization of competition order, many small
enterprises withdraw from the market, and industry competition mainly exists between
leading enterprises. This new situation sees these enterprises continually reducing sales
prices while improving product performance and expanding service coverage, which
significantly increases the difficulty of competition. If a manufacturer fails to promptly
launch high-cost performance products and offer high-quality services according to
market demand, it may lose original competition advantage and industrial position. At
present, the Company has maintained a leading position in the industry by virtue of its
capabilities of strong product development, technological innovation, excellent cost
control and quality management, good brand image and user reputation, nationwide
marketing channels and service networks and other competitive advantages. The
Company will continually focus on users’ demand, carry out differential competition,
realize smart and high-end products by application of Internet of vehicles technologies,
development of industrial core hardware, improve production efficiency and defined
operation through digital and smart upgrading, development and cost reduction and raise
its cost competition advantage.
With the improvement of consumers' consumption awareness and the trend of
consumption upgrading becoming more and more obvious, consumers' demand for
electric two-wheeled vehicles presents the characteristics of fashion, intelligence and
networking, which requires electric two-wheeled vehicle manufacturers to continuously
research and predict the trend of consumer demand, continue to carry out product
innovation and technology research and development, and launch new models with new
shapes and new functions to meet the constantly upgraded consumer needs of users.
Failure to meet consumption expectations will have a negative impact on performance. In
addition, the R&D of new models requires a certain period of time. If a manufacturer takes
the lead in developing similar products and locks the relevant patents, it may put pressure
on the R&D of other manufacturers. The Company always regards R&D and product
innovation as the main means to enhance its product competitiveness and achieve
long-term development. Starting from the needs of users, after years of continuous R&D
investment and exploration, it has acquired the relevant capabilities of accurate user
demand positioning, excellent technology and innovation, which makes its products
popular among consumers. The Company will continue to improve the APDS process with
a user-centered R&D strategy, and enhance the Company's technological capabilities to
reduce R&D risks.
The main sales model of the Company's products is distribution. Dealers are not only the
Company's direct customers, but also important windows for the Company to show its
brand image and enhance its brand reputation to consumers in its distribution areas. The
operating capabilities, risk appetite and willingness to work hard of the dealers have a
greater impact on the sales of the Company's products in the relevant distribution areas. If
the dealer's operation method and service quality are contrary to the Company's business
purpose or the dealer's understanding of the Company's management philosophy
deviates, it may have an adverse impact on the Company's business performance and
brand image. In this regard, the Company continuously improves the dealer management
system, strictly implements the management standards for dealer access, training,
assessment and exit, etc., and establishes a scorecards and dynamic channel
management system to “retain winners and phase out losers”, to stimulate the dealer’
working enthusiasm, improve their operation capabilities and ensure the vitality and
healthy development of the Company's channel system.
The purchase price of raw materials in the industry is affected by factors such as macro
trends and industrial policies, and there is the possibility of fluctuations, which increases
the difficulty of controlling purchase costs and may have a certain impact on the operating
performance of production enterprises. In this regard, the Company has built and will
continue to improve a high-quality and efficient supply chain system, and has set up an
SQE (Supplier Quality Engineer) department, and select and integrate global supply chain
resources. The Company invested in key parts suppliers to ensure the safety of the supply
of key parts; at the same time, for products with a clear price increase, the Company
adopts the method of locking the price in advance and locking the purchase volume to
avoid operating risks caused by sharp price increases. The Company has established
close strategic cooperative relations with major parts suppliers, which is conducive to
achieving sufficient supply of raw materials and stable prices. At the same time, the
Company upgrades and optimizes the supply chain platform through the construction of
digital intelligence, realizes the deep synergy between the Company's manufacturing
process and the supply chain system, and hedges the cost control pressure caused by
rising raw materials with the improvement of production efficiency.
In recent years, as the industry's market capacity continuously expands and the
Company's product sales gradually increase, the Company has decided to build new
production bases to expand capacity and enhance overall production capabilities after
thorough research and validation. These new projects include the Taizhou Intelligent
Electric Vehicle and High-Speed Electric Motorcycle project in Zhejiang, the Aima New
Energy Intelligent Travel Ecological Industrial Park project in Zhejiang Lishui, the Aima
Intelligent Travel Industrial Park project in Guangxi Guigang, the second phase of the
Aima Southwest Manufacturing Base in Chongqing, and an overseas production base in
Southeast Asia. The construction of new bases generally takes a long time, and coupled
with changes in policies, construction conditions, and other factors, there is a risk that the
construction and production of new projects may not progress as expected. Although
these projects have been thoroughly validated by the Company based on scientific
predictions of national industrial policies, industry trends, and market demands, significant
adverse changes in policies, industry trends, or market environments after the new bases
start production could impact the profitability of the projects. Additionally, the
implementation of new projects will lead to an increase in the Company's fixed asset
depreciation expenses, which may adversely affect short-term performance. In response,
the Company will closely monitor policy and market environment changes, accelerate
project construction and production ramp-up, and continuously enhance its technological
strength and product competitiveness to accurately meet consumer demands, thereby
increasing the market share of its products and the profitability of new projects.
(VI) Others
?Applicable √Not applicable
VII. Explanation for Non-disclosure in Accordance with The Accounting Standard
due to Being Not Applicable to The Provisions of the Standard or State Secret and
Business Secrete and Other Special Reasons
?Applicable √Not applicable
Section 4 Corporate Governance
I. Related Information about Corporate Governance
√Applicable ?Not applicable
In accordance with the Company Law, Securities Law, Code of Corporate Governance for
Listed Companies, Rules Governing the Listing of Stocks on Shanghai Stock Exchange
and other laws and regulations, and based on its actual situation, the Company has
constantly improved its corporate governance structure and internal control system to
further enhance its governance level.
The General Meeting of Shareholders, Board of Directors, Board of Supervisors and
managers have their respective clear rights and responsibilities, and they operate in a
regulated manner. Four specialized committees including the Strategy and ESG
Committee, Audit Committee, Nomination Committee, Remuneration and Appraisal
Committee have been set up under the Board of Directors, and each specific committee
does its work according to its duties. In 2023, the Company held 4 general meetings of
Shareholders, 13 meetings of board of directors and 10 meetings of board of supervisors,
reviewing the important matters such as external guarantees, related party transactions,
convertible bonds, stock options, share buy-backs. The Company has updated the
independent director system in accordance with the latest legal and regulatory
requirements. The independent directors rigorously fulfill their responsibilities as
mandated by relevant laws, regulations, and the Company’s Articles of Association,
express independent opinions on related matters, convene special meetings for
deliberation, and effectively safeguard the legal rights and interests of all shareholders.
Concurrently, the Company continues to amend and improve relevant regulations, which
are effectively executed; The Company has established impartial, transparent
performance evaluation standard and incentive and restriction mechanisms for senior
management, and has made comprehensive evaluation with reference to the operation
targets of the Company and its business units, individual ability and performance
examination.
The Company c continuously enhances the quality of its information disclosures according
to the provisions of the Articles of Association, Management Method on Information
Disclosure and other rules. The Company insists on combination of statutory information
disclosure and voluntary information disclosure and ensure that all shareholders and other
stakeholders could obtain the Company’s information equally. During the reporting period,
the Company disclosed 107 temporary reports and 4 regular reports, all announcements
and filing documents are stored in the Company's securities affairs management
department for investors to access. The Company also strictly executed the Insider
Registration and Filing System to enhance the confidentiality of insider information,
maintain the openness, fairness and justness of information disclosure and protect the
legitimate rights and interests of investors.
The Company places high importance on investor relations management. Through
various channels such as the Shanghai Stock Exchange "e-Interaction" platform,
dedicated investor hotline, email, website column, online meetings, and on-site reception,
the Company maintains continuous contact with all types of investors and industry
researchers. This facilitates timely access to corporate information for investors and builds
an effective communication bridge between investors and the listed company. It also
allows the Company to understand the demands and expectations of investors, guiding
and standardizing further improvements in investor relations management to enhance
corporate quality. During the reporting period, the Company organized multiple
performance briefings and investor research activities, and actively participated in
brokerage strategy meetings, conducting a variety of investor communication activities in
accordance with laws and regulations.
Indicate whether there was any material incompliance with the applicable laws and
regulations, as well as the CSRC’s requirements in corporate governance. If yes, please
explain
√Applicable ?Not applicable
II. Specific Measures Taken by the Controlling Shareholder and Actual Controller to
Guarantee the Asset, Personnel, Financial, Organizational and Business
Independence of the Company, as well as Solutions, Progress and Subsequent
Plans when the Company’s Independence Is Intervened
√Applicable ?Not applicable
The Company has been operating strictly in accordance with the Company Law, Articles
of Association and other relevant regulations. The Company maintains independence
from its controlling shareholder, the actual controller and other enterprises under its
control in assets, personnel, finance, organization, business, etc. The Company has a
complete business system and the ability to operate independently in the market. The
concrete situation is as follows:
(I) Independent assets
The Company has an independent and complete production, procurement and sales
system and supporting facilities for production and operation, and legally owns fixed
assets (e.g., plants and equipment) and intangible assets (e.g., land use rights,
trademarks and patents) related to production and operation. There are no instances of
illegal use of the Company’s funds, assets, or other resources by the controlling
shareholder or its affiliates, and there are no unclear property rights in the business
systems and major assets related to operation.
(II) Independent personnel
The Company has set up an independent human resource department, and has
formulated the rules related to labor, personnel and salary. All of the Company’s senior
management, hold full-time positions in and receive remunerations from the Company,
and none of them hold a position other than director and supervisor in the controlling
shareholder or actual controller of the Company or any other enterprise under control
thereof. The Company is absolutely independent from its controlling shareholder and
actual controller, and other enterprises under their control in terms of labor, personnel and
salary management.
(III) Independent finance
The Company has set up an independent finance department, and established a set of
independent, complete and normative financial accounting system, accounting
management system and internal control system. The Company independently opens
banking accounts, pays tax in accordance with the law, and does not use any joint
account with the controlling shareholder, actual controller and other enterprises under
control thereof.
(IV) Independent organization
The Company has independent production, operation and office places. According to law,
the Company has set the general meeting of shareholders as the highest authority, the
board of directors as the decision-making body and the board of supervisors as the
supervisory body, built an independent organizational structure suitable for its own
development, and formulated reasonable and complete position duties and internal
management rules. Each department independently operates according to the stated
responsibilities. There is no shareholder entity or any other entity or individual that
interferes with the establishment of the Company’s organization, and the Company is
completely independent of the controlling shareholder, actual controller and other
enterprises under control thereof.
(V) Independent business
The Company owns independent and complete purchasing, production, sales and
business systems, and has independent management decision-making rights,
independently organizes its production and management according to operation plans,
independently carries out business, which is independent with the controlling shareholder,
actual controller and other enterprises under control thereof. The Company does not have
peer competition or unconscionable related transaction with the controlling shareholder,
actual controller and other enterprises under control thereof.
Indicate whether the controlling shareholder, the actual controller, or any entity under their
control is engaged in the same or similar business with the Company. Explain the impact
of peer competition or any significant change to peer competition on the Company,
solutions taken, progress and subsequent plans.
?Applicable √Not applicable
III. Introduction to General Meetings of Shareholders
Date Index for Date of
Meeting session of resolution search disclosure Meeting resolutions
meeti on the designated of
ng website resolution
Reviewed and adopted the <2023 Stock Option
Incentive Plan (Draft)> and its summary, the
The 1st
Proposal on the <2023 Stock Option Incentive Plan
Extraordinary April
April 15, Implementation Assessment Management
General Meeting 14, www.sse.com.cn
of Shareholders 2023
General Meeting of Shareholders the Authorization
in 2023
for the Board of Directors to Handle Matters Related
to Equity Incentives.
Reviewed and adopted the Proposal on the 2022
Work Report of the Board of Directors, the Proposal
on the Work Report of the Board of Supervisors in
and Capitalization of Capital Reserves in 2022,the
Proposal on the Annual Report of 2022 and its
Summary, the Proposal on Providing Credit
Guarantees for Certain Subsidiaries, the Proposal on
The Annual
May Applying for Comprehensive Credit Line to Bank in
General Meeting May 6,
of Shareholders 2023
in 2022
Regarding Director Compensation for the Fifth Board
of Directors Meeting, the Proposal Regarding
Supervisor Compensation for the Fifth Board of
Supervisors Meeting, the Proposal for the
Reappointment of the Financial Audit Firm and
Internal Control Audit Firm for the Fiscal Year 2023,
the Proposal for Purchasing Liability Insurance for
the Company and Directors, Supervisors, and Senior
Management Personnel.
The 2nd
Extraordinary June Reviewed and adopted the Proposal Regarding
June 6,
General Meeting 5, www.sse.com.cn Changing the Company's Registered Capital and
of Shareholders 2023 Amending the
.
in 2023
The 3rd Sept
Extraordinary embe Septembe Reviewed and adopted the Proposal Regarding the
www.sse.com.cn
General Meeting r 7, r 8, 2023 <2023 Interim Profit Distribution Plan>.
of Shareholders 2023
in 2023
Extraordinary general meetings of shareholders convened at the request of preference
shareholders with resumed voting rights:
Applicable √Not applicable
Description of general meetings of shareholders
Applicable √Not applicable
IV. Situation of Directors, Supervisors and Senior Management
(I) Shareholding changes and remunerations of incumbent directors, supervisors and senior management and those who resigned before
the end of their tenures during the reporting period
√Applicable ?Not applicable
Pre-tax
Whether
Beginni Change in compensation
End of acquiring
ng of shareholding received from the
Gende Ag Start of End of year Reason for remuneration
Name Office title year in the Company during
r e tenure tenure sharehold change from related
shareho reporting the reporting
ing parties of the
lding period period (in ten
Company
thousand RMB)
Chairman Capitalization
Zhang Septembe Septembe 395,243 592,865,7
of the M 54 197,621,900 of capital 321.37 No
Jian r 27, 1999 r 8, 2025 ,800 00
Board, GM reserves
Vice
Chairman
Duan Septembe Septembe
of the F 55 308.23 No
Hua r 13, 2013 r 8, 2025
Board, vice
GM
Zhang Septembe Septembe
Director F 30 50.72 No
Gege r 13, 2013 r 8, 2025
Capitalization
Peng August Septembe 4,147,8
Director M 53 6,221,760 2,073,920 of capital 67.42 No
Wei 26, 2009 r 8, 2025 40
reserves
Capitalization
Director, Septembe Septembe 1,680,0
Gao Hui M 45 2,520,000 840,000 of capital 283.71 No
vice GM r 9, 2022 r 8, 2025 00
reserves
Director,
vice GM,
Wang January Septembe
secretary of M 44 151.29 No
Chunyan 24, 2018 r 8, 2025
board of
director
Sun Independen Septembe Septembe
M 60 10.67 No
Minggui t director r 9, 2022 r 8, 2025
Liu Independen Septembe Septembe
M 55 10.67 No
Junfeng t director r 9, 2022 r 8, 2025
Ma
Independen Septembe Septembe
Junshen M 48 10.67 No
t director r 9, 2022 r 8, 2025
g
Chairman
Septembe Septembe
Xu Peng of board of M 34 30.37 No
r 13, 2016 r 8, 2025
supervisors
Employee May 7, Septembe
Li Yan F 40 69.02 No
supervisor 2018 r 8, 2025
Liu Septembe Septembe
Supervisor F 42 92.60 No
Tingxu r 9, 2022 r 8, 2025
January Septembe
Li Yubao Vice GM M 48 313.08 No
Zheng Vice GM, F 42 July 21, Septembe 560,000 840,000 280,000 Capitalization 222.80 No
Hui Chief 2021 r 8, 2025 of capital
Financial reserves
Officer
Capitalization
Luo Septembe Septembe
Vice GM M 44 840,000 1,260,000 420,000 of capital 326.92 No
Qingyi r 9, 2022 r 8, 2025
reserves
Name Main working experience
Former Executive Director of Tianjin Qiyu Interactive Technology Co., Ltd., and Director of Tianjin Sanshang Investment Management Co., Ltd.
Zhang Jian
Currently serves as the Chairman and General Manager of the Company.
Duan Hua Former Vice General Manager at Aima Technology. Currently the Vice Chairman and Vice General Manager of the Company.
Zhang Former Assistant General Manager and Secretary to the Chairman at the Company. Currently a Director at the Company, Executive Director and
Gege General Manager at Suiwanwan, and Executive Partner at Yancheng Dingai.
Former General Manager of Tianjin Bond Fushida Electric Vehicle Co., Ltd., and General Manager at Tianjin Sports. Currently a Director of the
Peng Wei
Company.
Former President of the special and international business division at the Company. Currently a Director, Vice General Manager, President of the
Gao Hui
electric vehicle division, and General Manager of domestic business at the Company.
Wang Former Chairman and President of Tianjin Sanshang Investment Management Co., Ltd. Currently a Director, Vice General Manager, and Secretary
Chunyan of the Board of Directors at the Company.
Sun Former teaching assistant, lecturer, associate professor and professor of Lanzhou University. Currently an Independent Director of the Company,
Minggui and professor and doctoral supervisor of Glorious Sun School of Business and Management at Donghua University.
Former Vice General Manager and Secretary of the Board of Tasly Pharmaceutical Group Co., Ltd., Vice General Manager and Secretary of the
Liu Junfeng Board at Tianjin Changrong Technology Group Co., Ltd., and Full-time Vice Chairman and Secretary-General of the Tianjin Association for Public
Companies. Currently an Independent Director of the Company and a Consultant at Stock (Tianjin) Engineering Technology Co., Ltd.
Ma Former training partner at Shandong Paramount Accounting Firm. Currently an Independent Director of the Company, director of the Financial
Junsheng Research Institute at the Shanghai Pudong Financial Promotion Association, researcher at the Intelligent Finance Research Institute of the
Shanghai National Accounting Institute, Independent Director at Shanghai Guohui Environmental Technology Co., Ltd., Independent Director at
Shanghai CN Science and Technology Co., Ltd., External Director at Shanghai Yangpu Trading (Group) Co., Ltd., and Independent Director at
Huarong Technology Co., Ltd.
Former Chairman of the Board at Tianjin Bond Fushida Electric Vehicle Co., Ltd., and assistant general manager at Tianjin Sanshang Investment
Xu Peng
Management Co., Ltd. Currently the Chairman of the Board of Supervisors of the Company.
Former section chief of supplier management at the Company's procurement department, secretary to the Vice Chairman, director of the
Li Yan improvement office at the brand management venter, and director of the Office of the Vice Chairman. Currently an Employee Supervisor and
product manager of the R&D department at the Company.
Former section chief of the procurement department and deputy director of the brand center at the Company. Currently a Supervisor and Secretary
Liu Tingxu
to the Deputy Chairman at the Company.
Former director of the procurement department at Tianjin New Times Vehicle Industry Co., Ltd., director of the procurement department at Tianjin
Li Yubao
Taimei Bicycle Co., Ltd., and director of procurement at the Company. Currently the Vice General Manager of the Company.
Former Financial Manager at Midea Group Co., Ltd. Product Company, Vice General Manager and Chief Financial Officer at Meizhi
Optoelectronics Technology Co., Ltd., Vice General Manager at Foshan Hange E-commerce Technology Co., Ltd., Senior Financial Director at
Zheng Hui
Foshan Yunmi Electric Technology Co., Ltd., and Senior Financial Director at the Company. Currently the Vice General Manager and Chief
Financial Officer of the Company.
Former Administrative Vice General Manager at Ningbo Geely Royal Engine Components Co., Ltd. Currently the Vice General Manager of the
Luo Qingyi
Company.
Description of other situation
Applicable √Not applicable
(II) Incumbency of current and resigned directors, supervisors and senior management
during the reporting period
?Applicable √Not applicable
√Applicable ?Not applicable
Ending
Name of Position held in other Starting date of
Name of other entities date of
in-service staff entities tenure
tenure
Tianjin Jiema Electric Technology
Zhang Jian Director January 2019
Co., Ltd.
Zhejiang Today Sunshine New
Zhang Jian Director May 2022
Energy Vehicle Co., Ltd.
Nanjing Zhidou New Energy
Zhang Jian Director May 2023
Vehicle Co., Ltd.
Guangxi Ningfu New Energy
Zhang Jian Director June 2023
Technology Co., Ltd
Yancheng Dingai Venture
Zhang Gege Capital Partnership (Limited Managing partner December 2017
Partnership)
Wuxi Lyuling Electric Technology
Gao Hui Executive director May 2015
Co., Ltd.
Tianjin Association for Public Full-time vice president June
Liu Junfeng August 2021
Companies and secretary general 2023
Glorious Sun School of Business
Professor, doctoral
Sun Minggui and Management, Donghua February 2004
supervisor
University
Shanghai Zhongyin Culture August
Ma Junsheng Independent director September 2022
Communication Co., Ltd 2023
Shanghai Guohui Environmental
Ma Junsheng Independent director October 2020
Technology Co., Ltd.
Shanghai Xien Technology Co.,
Ma Junsheng Independent director February 2022
Ltd.
Shanghai Yangpu Commerce &
Ma Junsheng External director January 2022
Trade (Group) Co., Ltd.
Ma Junsheng Huarong Technology Co., Ltd. Independent director September 2022
Ningbo Hengai Enterprise
May
Luo Qingyi Management Partnership Executive partner December 2021
(Limited Partnership)
Description of
As of the end of the reporting period, Ma Junsheng served as an independent director in
taking office in
no more than three domestic listed companies, in compliance with the relevant provisions
other
of the Guidelines for Independent Directors of Listed Companies.
organizations
(III) Remunerations of directors, supervisors and senior management
√Applicable ?Not applicable
Decision-making process for the The board of directors decides on the remuneration of senior
remuneration of directors, supervisors and management, while the general meeting of shareholders
senior management decides on the remuneration of directors and supervisors.
Directors abstain from discussions on their
Yes.
remuneration at the Board of Directors
The Remuneration and Assessment Referring to industry and regional standards, and considering
Committee or special meeting of the actual situation of the Company, the remuneration for
independent directors provided directors, supervisors, and senior management is determined.
recommendation on compensation of
Directors, Supervisors and Senior
Management
The remuneration of the Company's directors, supervisors, and
Basis for deciding the remuneration of senior management is determined based on the Company's
directors, supervisors and senior compensation distribution system and assessment methods.
management The remuneration of independent directors is determined
according to the actual work they perform for the Company.
For details, please refer to Section IV, (I) Shareholding
Actual payment of remuneration for
changes and remunerations of incumbent directors,
directors, supervisors and senior
supervisors and senior management and those who resigned
management
during the reporting period.
Total remuneration actually obtained by all
directors, supervisors and senior RMB 22.6954 million.
management at the end of reporting period
(IV) Changes in directors, supervisors and senior management
?Applicable √Not applicable
(V) Punishments imposed by securities regulators in the past three years
?Applicable √Not applicable
(VI) Others
?Applicable √Not applicable
V. Board Meetings Convened during the Reporting Period
Date of
Meeting session Meeting Resolutions
Meeting
Reviewed and adopted the Proposal on Clarifying the Public
Issuance Plan of Convertible Corporate Bonds, Proposal on the
The 4th Meeting of the February 20,
Public Issuance and Listing of Convertible Corporate Bonds,
Fifth Board of Directors 2023
Proposal on Establishing Special Accounts for Raised Funds and
Signing Supervision Agreements.
Reviewed and adopted the Proposal on Using Partial Funds
Raised through Convertible Corporate Bonds to Provide Loans to
a Wholly-Owned Subsidiary for Implementation of Fund-raising
Projects, the Proposal on the <2023 Stock Option Incentive Plan
(Draft)> and Its Summary, the Proposal on the <2023 Stock
The 5th Meeting of the March 20,
Option Incentive Plan Implementation and Assessment
Fifth Board of Directors 2023
Management Methods, the Proposal to Request the General
Meeting of Shareholders to Authorize the Board of Directors to
Handle Matters Related to Stock Incentives, the Proposal on
Convening the First Extraordinary General Meeting of
Shareholders of the Company in 2023.
Reviewed and adopted the Proposal on the 2022 Work Report of
the Board of Directors, the Proposal on the Work Report of the
General Manager in 2022, the Proposal on the Final Financial
Report of 2022, the Proposal on the Plan for Profit Distribution
and Capitalization of Capital Reserves in 2022, the Proposal on
the Annual Report of 2022 and its Summary, the Proposal on
The 6th Meeting of the April 14, 2022 Environmental Social and Governance(ESG) Report, the
Fifth Board of Directors 2023 Proposal on the Special Report on Deposit and Use of Raised
Funds in 2022, the Proposal on 2022 Annual Internal Control
Evaluation Report, the Proposal on Use of Idle Self-owned Fund
for Cash Management, the Proposal on Providing Credit
Guarantees for Certain Subsidiaries, the Proposal on Applying for
Comprehensive Credit Line to Bank in 2023, the Proposal on the
Work Report of Independent Directors in 2022, the Proposal on
the Performance Report of the Audit Committee of the Board of
Directors for 2022, the Proposal on Allowance for the Directors of
the Fifth Board of Directors, the Proposal on the Remuneration of
Senior Management in 2022 and Remuneration Program for
the Proposal on the Deposit of Part of the Raised Funds through
Demand Deposits, Negotiable Deposits, and Other Forms of
Current Account Deposits, the Proposal on Purchasing Liability
Insurance for the Company and its Directors, Supervisors and
Senior Management, the Proposal on Adjusting the List of
Incentive Recipients and the Number of Shares Granted under
the 2023 Stock Option Incentive Plan, the Proposal on Granting
Stock Options to Incentive Recipients, the Proposal on Convening
the Annual General Meeting of Shareholders in 2022.
Reviewed and adopted the Proposal on the First Quarter Report
The 7th Meeting of the April 26, of 2023, the Proposal on Using Bank-Accepted Bills to Pay for
Fifth Board of Directors 2023 Fundraising Investment Projects and Replacing with an
Equivalent Amount of Raised Funds
Reviewed and adopted the Proposal on Adjusting the Number of
Shares Granted and the Repurchase Price under the 2021
Restricted Stock Incentive Plan, the Proposal on the Repurchase
and Cancellation of the First Grant of Restricted Shares under the
The 8th Meeting of the Achievement of the Unlocking Conditions for the First Unlocking
May 19, 2023
Fifth Board of Directors Period of the First Grant under the 2021 Restricted Stock
Incentive Plan, the Proposal on Renaming the Board of Directors'
Strategic Committee, the Proposal on Changing the Company’s
Registered Capital and Amending the Articles of Association, and
the Proposal on Convening the Second Extraordinary General
Meeting of Shareholders in 2023.
Reviewed and adopted the Proposal on Using Funds Raised
through Convertible Corporate Bonds to Replace Self-raised
Funds Pre-invested in Fundraising Projects and Paid Issuance
The 9th Meeting of the June 15,
Expenses, the Proposal on Formulating the Working Rules for the
Fifth Board of Directors 2023
Board of Directors' Strategic and ESG Committee, and the
Proposal on Adding Members to the Board of Directors' Strategic
and ESG Committee.
The 10th Meeting of the June 30, Reviewed and adopted the Proposal on Temporarily Not
Fifth Board of Directors 2023 Adjusting the Conversion Price of the Aima CB into Shares.
Reviewed and adopted the Proposal on Extending the Investment
The 11th Meeting of the August 11,
Period for Certain Projects Funded by the Initial Public Offering
Fifth Board of Directors 2023
Proceeds.
Reviewed and adopted the Proposal on the Semi-annual Report
of 2023 and its Summary, the Proposal on the Special Report on
Deposit and Use of Raised Funds in the First Half of 2023, the
Proposal on the Profit Distribution Plan for the First Half of 2023,
The 12th Meeting of the August 21, the Proposal on Adjusting the Number of Shares Granted and the
Fifth Board of Directors 2023 Exercise Price under the 2023 Stock Option Incentive Plan, the
Proposal on the Achievement of the Conditions for Lifting the First
Restriction Period for Reserved Shares under the 2021 Restricted
Stock Incentive Plan, and the Proposal on Convening the Third
Extraordinary General Meeting of Shareholders in 2023.
The 13th Meeting of the August 28, Reviewed and adopted the Proposal on Repurchasing Company
Fifth Board of Directors 2023 Shares through Centralized Bidding.
The 14th Meeting of the October 23, Reviewed and adopted the Proposal on the Third Quarter Report
Fifth Board of Directors 2023 of 2023.
The 15th Meeting of the October 27, Reviewed and adopted the Proposal on Temporarily Not
Fifth Board of Directors 2023 Adjusting the Conversion Price of the Aima CB into Shares.
The 16th Meeting of the December Reviewed and adopted the Proposal on Estimated Daily Related
Fifth Board of Directors 27, 2023 Transactions of the Company and its Subsidiaries in 2023, the
Proposal on Amending the Working Rules for Independent
Directors and the Proposal on Adjusting the Members of the
Board of Directors' Audit Committee.
VI. Performance of Duty by Directors
(I) Attendance of board meetings and general meetings by directors
Attendances at
Attendance at board meetings
Indep General meetings
ende Absence
Required Atten
Name of nt Attendanc Attend from two Number of
attendances danc Abs
director direct e by ance consecutive attendance of
of e in enc
or or telecommu by meetings in general
Board perso e
not nication proxy person or meetings
meetings n
not
Zhang Jian No 13 13 11 0 0 No 4
Duan Hua No 13 13 11 0 0 No 4
Zhang Gege No 13 13 11 0 0 No 4
Peng Wei No 13 13 11 0 0 No 4
Gao Hui No 13 13 11 0 0 No 4
Wang
No 13 13 11 0 0 No 4
Chunyan
Sun Minggui Yes 13 13 13 0 0 No 4
Ma Junsheng Yes 13 13 13 0 0 No 4
Liu Junfeng Yes 13 13 12 0 0 No 4
Explanation for absence from two consecutive Board meetings in person.
?Applicable √Not applicable
Number of Board meetings held in the year 13
Of which: Number of on-site meetings 0
Number of meetings held by telecommunication 11
Number of meetings held both on site and by telecommunication 2
(II) Objections raised by directors on matters of the Company
?Applicable √Not applicable
(III) Others
?Applicable √Not applicable
VII. Specialized Committees under the Board of Directors
?Applicable √Not applicable
(1) Members of the specialized committees
Specialized committees Members
Audit Committee Ma Junsheng, Sun Minggui, Liu Junfeng
Nomination Committee Liu Junfeng, Zhang Jian, Ma Junsheng
Remuneration and Appraisal
Sun Minggui, Duan Hua, Liu Junfeng
Committee
Zhang Jian, Sun Minggui, Liu Junfeng, Ma Junsheng,
Strategy and ESG Committee
Wang Chunyan
(2) The Audit Committee held four meetings during the reporting period.
Other
Convening Important comments
Content of meeting performance
date and suggestions
of duties
April 7, 2023 Reviewed the Proposal on the Annual Report of 2022 Agreed to submit for Nil
and its Summary, the Proposal on the Plan for Profit Board of Directors'
Distribution and Capitalization of Capital Reserves in review
and Use of Raised Funds in 2022,
the Proposal on the 2022 Internal Control Evaluation
Report ,the Proposal on Reappointing the Financial
Audit Firm and Internal Control Audit Firm for 2023.
Agreed to submit for
April 26, Reviewed the Proposal on the First Quarter Report of
Board of Directors' Nil
review
Reviewed the Proposal on the Semi-annual Report of Agreed to submit for
August 21, 2023 and its Summary, and the Proposal on the Board of Directors'
Nil
the First Half of 2023.
Agreed to submit for
October 23, Reviewed the Proposal on the Third Quarter Report of
Board of Directors' Nil
review
(3) The Remuneration and Appraisal Committee held four meeting during the reporting period
Other
Important
Convening perform
Content of meeting comments and
date ance of
suggestions
duties
Reviewed the Proposal on the 2023 Stock Option Incentive Plan
Agreed to submit
March (Draft) and Its Summary, and the Proposal on the Assessment
for Board of Nil
Directors' review
Stock Option Incentive Plan.
Reviewed the Proposal on the Remuneration of Senior
Management in 2022 and Remuneration Program for 2023, the
Proposal on the Allowance for the Directors of the Fifth Board of Agreed to submit
April 14,
Directors, the Proposal on Adjusting the List of Incentive for Board of Nil
Recipients and the Number of Shares Granted under the 2023 Directors' review
Stock Option Incentive Plan, and the Proposal on Granting Stock
Options to Incentive Recipients.
Reviewed the Proposal on Adjusting the Number of Shares
Granted and the Repurchase Price under the 2021 Restricted
Stock Incentive Plan, the Proposal on the Repurchase and
Agreed to submit
May Cancellation of the First Grant of Restricted Shares under the
for Board of Nil
Directors' review
Achievement of the Unlocking Conditions for the First Unlocking
Period of the First Grant under the 2021 Restricted Stock
Incentive Plan.
Reviewed the Proposal on Adjusting the Number of Shares
Granted and the Exercise Price under the 2023 Stock Option Agreed to submit
August
Incentive Plan, and the Proposal on the Achievement of the for Board of Nil
Conditions for Lifting the First Restriction Period for Reserved Directors' review
Shares under the 2021 Restricted Stock Incentive Plan.
(4) Strategy and ESG Committee held two meetings during the reporting period.
Important Other
Convening date Content of meeting comments and performanc
suggestions e of duties
Reviewed the Proposal on Finalizing the Public Agreed to submit
February 20,2023 Issuance Plan for Convertible Corporate Bonds, the for Board of Nil
Proposal on Listing Convertible Corporate Bonds, and Directors' review
the Proposal on Opening Special Accounts for Raised
Funds and Signing Supervisory Agreements.
Agreed to submit
Reviewed the Proposal on the Company’s Strategy
April 14, 2023 for Board of Nil
and Development Planning.
Directors' review
(5) Specification of Objections
?Applicable √Not applicable
VIII. Risks Detected by the Board of Supervisors
?Applicable √Not applicable
IX. Employees of the Company as the Parent and Its Principal Subsidiaries at the
Period-end
(I) Employees
Number of in-service employees of the Company as the parent 1,671
Number of in-service employees of principal subsidiaries 7,808
Total number of in-service employees 9,479
Number of retirees to whom the Company as the parent or its principal subsidiaries
need to pay retirement pensions
Breakdown by Function
Function Number
Production 5,537
Sales 1,352
Technical 1,089
Financial 185
Administrative 1,316
Total 9,479
Breakdown by Education Background
Number
Education
(person)
Doctor 5
Master 79
Undergraduate 1,487
Junior College and Technical secondary school 1,789
High school and below 6,119
Total 9,479
(II) Remuneration policy
√Applicable ?Not applicable
The Company has established an assessment mechanism oriented towards responsibility
outcomes and a contribution-based compensation and benefits system, implementing a
relatively fair internal and competitive external compensation policy. The forms of value
distribution within the Company include opportunities, authority, honors, salaries, bonuses,
medical insurance, equity, dividends, and other benefits.
(III) Training plans
√Applicable ?Not applicable
The Company prioritizes the appreciation of human capital, continuously conducting
customized professional empowerment training and improving the organizational mechanism of
professional study groups, thereby advancing the development of an internal trainer team. In
alignment with strategic goals, job requirements, and operational challenges, the Company has
developed training programs that meet strategic and business needs and consistently tracks
the practical application of theoretical knowledge.
The Company has established a three-tier training system, providing comprehensive
professional support tailored to different functional areas such as leadership, innovation, new
retail, and services. In 2023, the Company conducted over 700 internal and external training
sessions, enhancing the professional skills of more than 500 employees.
(IV) Labor outsourcing
√Applicable ?Not applicable
Total remuneration paid for labor outsourcing RMB 149,292,977
X. Plan on Profit Distribution or Conversion of Capital Reserve
(I) Formulation, implementation or adjustment of the cash dividend policy
√Applicable ?Not applicable
The Company has clearly stipulated the principles, decision-making mechanisms, distribution
standards, and ratios for profit distribution in the Articles of Association and the Shareholder
Return Plan. These provisions comply with relevant regulatory documents, including the
Guidelines for the Supervision of Listed Companies No. 3 - Cash Dividends of Listed
Companies (revised in 2023) and the Self-Regulatory Supervision Guidelines for Listed
Companies No. 5 - Equity Distribution (revised in February 2023).
（1）The Company's 2023 Semi-Annual Profit Distribution Plan was reviewed and approved at
the 12th meeting of the Fifth Board of Directors. In the first half of 2023, based on the total share
capital of 861,924,656 shares before the implementation of the plan, the Company distributed a
cash dividend of 3.48 yuan (inclusive of tax) per 10 shares to all shareholders, totaling
（2）During the reporting period, the Company repurchased shares using its own funds through
centralized bidding, with the total amount reaching 399,920,800.87 yuan (excluding transaction
commissions and other fees).
（3）The Company's 2023 Annual Profit Distribution Plan was reviewed and approved at the
dividend of 5.34 yuan (inclusive of tax) per 10 shares to all shareholders. As of December 31,
shares in the Company’s share repurchase account, the basis for distribution is 847,794,483
shares, resulting in a total proposed cash dividend of 452,722,253.92 yuan (inclusive of tax).
For the year, the Company’s cash dividend (including 299,949,780.29 yuan cash dividend
already distributed for the first half of 2023) accounts for 40.01% of the total.
From the date of disclosure of this Report to the equity registration date for the implementation
of equity distribution, Due to changes in the total share capital or the number of shares in the
share repurchase account resulting from the conversion of convertible bonds, share
repurchases, the use of repurchased shares for granting restricted stock under equity
incentives, the repurchase and cancellation of shares granted under equity incentives, and the
repurchase and cancellation of shares related to significant asset restructurings, the Company
intends to maintain the ratio of distribution and conversion unchanged, and correspondingly
adjust the amount of profit distribution and capital reserve capitalization. This matter needs to
be submitted to the 2023 annual general meeting of the Company for consideration.
(II) Special description of cash dividend policy
√Applicable ?Not applicable
Whether in compliance with regulations of the Articles of Association and √Yes □No
requirements of the resolutions of the general meeting
Whether the standard and ratio of dividends were clear √Yes □No
Whether relevant procedures and mechanisms for decision-making were
√Yes □No
Complete and comprehensive
Whether independent directors performed their duties and responsibilities √Yes □No
Whether minority shareholders were given the opportunity to fully express their
views and demands, and whether their legitimate interests were adequately √Yes □No
protected
(III) If, during the reporting period, the Company was profitable and the parent
Company's profits available for distribution to shareholders were positive, but no cash
dividend distribution plan was proposed, the Company should provide a detailed
disclosure of the reasons and the intended uses and plans for the undistributed profits.
?Applicable √Not applicable
(IV) Profit Distribution and Capitalization of Capital Reserves during the reporting period
√Applicable ?Not applicable
Number of bonus shares for every 10 shares 0
Dividends for every 10 shares (RMB) (tax-inclusive) 8.82
Number of shares converted from capital reserves for every 10 shares 0
Amount of cash dividends (tax-inclusive) 752,672,034.21
Net profit attributable to common shareholders of the Company in the
annual consolidated statement of dividends
Percentage of the net profit attributable to common shareholders of the
Company in the consolidated statements (%)
Shares repurchased in cash which are recognized as cash dividends 399,920,800.87
Total amount of dividends (tax-inclusive) 1,152,592,835.08
Percentage of total dividends in the net profit attributable to common
shareholders of the Company in the consolidated statements (%)
XI. Status and Impact of Share Incentive Schemes, Employee Shareholding Plan or Other
Incentive Measures for Employees
(I) Relevant incentive matters disclosed in temporary announcement with no subsequent
progress or change
√Applicable ?Not applicable
Index to the disclosed
Overview
information
See the relevant
On March 20, 2023, the 5th Meeting of the Fifth Board of Directors
announcements disclosed on
decided to implement the 2023 Stock Option Incentive Plan,
the website of Shanghai
proposing to grant 4.812 million stock options to incentive
Stock Exchange on March
recipients at a grant price of 48.07 yuan per option.
See the relevant
Stock of incentive recipients, 2 proposed incentive recipients resigned, the website of Shanghai
Option reducing the number of incentive recipients from 328 to 326. Stock Exchange on April 7,
Incentive 2023 for details.
Plan On April 14, 2023, the First Extraordinary General Meeting of
Shareholders in 2023 approved the implementation of the 2023 See the relevant
Stock Option Incentive Plan and authorized the board of directors announcements disclosed on
to handle related matters. The 6th Meeting of the Fifth Board of the website of Shanghai
Directors approved the adjustment of the list of incentive Stock Exchange on April 15,
recipients and the number of stock options granted under the 2023 for details.
million stock options to 324 incentive recipients, with the grant
date set as April 14, 2023.
See the relevant
On April 19, 2023, the Company completed the stock option announcements disclosed on
incentive plan of 2023 with China Securities Depository and the website of Shanghai
Clearing Corporation Limited Shanghai Branch. Stock Exchange on April 21,
On August 21, 2023, the 12th Meeting of the Fifth Board of
See the relevant
Directors approved the adjustment of the number of stock options
announcements disclosed on
granted and the exercise price under the 2023 Stock Option
the website of Shanghai
Incentive Plan due to the implementation of equity distribution.
Stock Exchange on August
The adjusted number of stock options granted is 7.164 million,
and the exercise price is 31.18 yuan per option.
On May 19, 2023, the 8th Meeting of the Fifth Board of Directors
approved the adjustment of the number of shares granted and the
repurchase price under the 2021 Restricted Stock Incentive Plan
due to the implementation of equity distribution. The adjusted
See the relevant
number of shares granted is 14.364 million, and the repurchase
announcements disclosed on
price is 8.53 yuan per share. Additionally, the meeting approved
the website of Shanghai
the repurchase and cancellation of 126,000 restricted shares held
Stock Exchange on May 20,
by 4 incentive recipients who no longer qualify due to resignation.
The meeting also confirmed the achievement of the conditions for
lifting the restrictions on the first batch of restricted shares granted
under the 2021 Restricted Stock Incentive Plan, allowing 97
incentive recipients to unlock a total of 4.158 million shares.
See the relevant
Restricted
On June 1, 2023, the first batch of 4.158 million shares granted announcements disclosed on
Stock
under the 2021 Restricted Stock Incentive Plan were unlocked the website of Shanghai
Incentive
and made available for trading. Stock Exchange on May 26,
Plan
See the relevant
On July 27, 2023, the Company completed the repurchase and announcements disclosed on
cancellation of 126,000 restricted shares held by 4 incentive the website of Shanghai
recipients who no longer qualified due to resignation. Stock Exchange on July 25,
On August 21, 2023, the 12th Meeting of the Fifth Board of
See the relevant
Directors approved the achievement of the conditions for lifting
announcements disclosed on
the restrictions on the first batch of reserved shares granted under
the website of Shanghai
the 2021 Restricted Stock Incentive Plan, allowing 14 incentive
Stock Exchange on August
recipients to unlock a total of 113,400 shares. The shares will be
available for trading on August 28, 2023.
(II) Incentives not disclosed in temporary announcement or with subsequent progress
Equity incentive situation
?Applicable √Not applicable
Other description
?Applicable √Not applicable
Employee stock ownership plan
?Applicable √Not applicable
Other incentive measures
?Applicable √Not applicable
(III) Equity incentives granted to directors and senior management during the reporting
period
?Applicable √Not applicable
√Applicable ?Not applicable
In: Share
Restricted
Market value
Restricted Shares Restricted
Grant at the end of
Shares held granted in Unlocked Shares still shares held
Name Position price reporting
at the the shares in lockup at the
(Yuan) period
period-begin reporting period-end
(Yuan)
period
Gao Director,
Hui Vice GM
Luo
Vice GM 840,000 0 / 378,000 882,000 882,000 25.04
Qingyi
Vice GM,
Zheng Chief
Hui Financial
Officer
Total / 3,080,000 0 / 1,386,000 3,234,000 3,234,000 /
Note: In May 2023, the Company implemented the 2022 annual equity distribution, issuing 5
additional shares for every 10 shares to all shareholders from the capital reserve. The number
of restricted shares held by incentive recipients increased proportionally.
(IV) Formulation and implementation of appraisal and incentive mechanisms for senior
management during the reporting period
√Applicable ?Not applicable
The Company's appraisal and incentive mechanisms for senior management are based on
"developing alongside the organization and achieving organizational goals". Suitable
performance indicators are selected according to business characteristics, including financial,
operational, quality metrics, key events, and veto items. The Company sets reasonable
short-term and long-term performance targets for the departments or business units they
oversee, regularly monitors and ensures the achievement of these targets, and implements
short-term and long-term incentives based on the assessment outcomes and the achievement
of organizational goals.
XII. Establishment and Implementation of Internal Control System in the Reporting
Period
√Applicable ?Not applicable
The Company has established an internal control management system in strict compliance with
the regulatory requirements of the China Securities Regulatory Commission and the Shanghai
Stock Exchange, and has continuously refined it in alignment with its operational realities. In
significant aspects as mandated by the corporate internal control standards and related
regulations, with no major deficiencies identified. For detailed information, please refer to the
Exchange.
Description of major defects existing in internal control in the reporting period.
?Applicable √Not applicable
XIII. Management and Control of Subsidiaries during the Reporting Period
√Applicable ?Not applicable
The Company rigorously adheres to laws, regulations, and normative documents from
regulatory authorities, using the Subsidiary Management System approved by the Board of
Directors as a foundation. It effectively manages and supervises personnel, finance, operations,
investment decisions, information disclosure, audit oversight, and the management of archives
and seals across its subsidiaries. This ensures standardized management and risk control of
subsidiaries. In line with the Company’s overall strategic planning, subsidiaries are required to
develop relevant business operation plans, risk management procedures, and internal control
systems, continually enhancing the standardization of their operations.
XIV. Information about the Internal Control Audit Report
√Applicable ?Not applicable
The Company engaged Ernst & Young Hua Ming LLP (a special general partnership) to audit
the implementation of internal controls for the year 2023 and issued a standard unqualified
Internal Control Audit Report. For details, see the Internal Control Audit Report 2023 disclosed
on the same day as the Annual Report.
Disclosure of the internal control audit report: Yes
Opinion type of the internal control audit report: standard unqualified opinions
XV. Rectification of Issues in Self- inspection of Special Actions for Governance of the
Listed Company
Not applicable
XVI. Others
?Applicable √Not applicable
Section 5 Environmental and Social Responsibilities
I. Environmental Information
Whether there is an environmental protection mechanism in place Yes
Investment in environmental protection during the reporting period (in ten thousand
yuan)
(I) Environmental protection status of the Company and its main subsidiaries as key
pollutant discharging entities published by the environmental protection department
√Applicable ?Not applicable
According to the “Announcement on the List of Key Environmental Supervision Units in Tianjin
for 2023” issued by the Tianjin Municipal Bureau of Ecology and Environment, the Group's
subsidiary Tianjin Vehicle was designated in March 2023 as a key air pollutant emission unit, a
key water pollutant emission unit, and a key environmental risk management unit in Tianjin.
According to the “Notice on Issuing the List of Key Environmental Supervision Units for 2023” by
the Shangqiu Municipal Bureau of Ecology and Environment, the Company's subsidiary, Henan
Vehicle, was designated in April 2023 as a key environmental risk management unit in
Shangqiu.
Tianjin Vehicle and Henan Vehicle comply with the relevant requirements of laws, regulations,
and emission permits. They disclose relevant information through the National Emission Permit
Management Information Platform, including the names of major pollutants, emission methods,
emission concentrations, and total emissions, as well as the construction and operation of
pollution control facilities, thereby allowing for public supervision.
√Applicable ?Not applicable
Tianjin Vehicle and Henan Vehicle have constructed various pollutant treatment facilities strictly
according to regulations, standards, environmental impact assessment and approval
requirements, and these pollutant treatment facilities are operating well. They have strictly
executed national, local discharging standards to ensure that the pollutant discharging
concentration meet the standards, and the solid waste has been properly disposed. Details are
as follows:
(1) Tianjin Vehicle
The main air pollutants form Tianjin Vehicle include paint spraying and drying exhaust, powder
spraying exhaust, powder curing exhaust, and gas combustion exhaust. The primary pollutant
factors are dust, toluene, xylene, VOCs, soot, SO2, and NOx. All painting booths, leveling
rooms, and drying rooms of each production line are sealed. The organic exhaust gas is
primarily purified through a "dry filter cotton + zeolite rotor adsorption + RTO" system and then
discharged through exhaust stacks. The main exhaust outlets of the coating workshop are
equipped with online monitoring instruments, which are connected to the Tianjin Municipal
Bureau of Ecology and Environment, enabling real-time monitoring of air pollutant emissions.
The Company's exhaust gas treatment facilities are operating well, and the emission levels of
toluene, xylene, VOCs, particulate matter, soot, SO2, and NOx meet the emission standards.
The wastewater discharged by Tianjin Vehicle includes production wastewater and domestic
sewage, with a focus on monitoring painting wastewater. The main pollutant factors include pH,
COD, BOD5, SS, ammonia nitrogen, total phosphorus, total nitrogen, and petroleum
substances. The plant has a sewage treatment station with a capacity of 500 m?/d, which treats
production wastewater, including painting wastewater. The treatment process involves
"flocculation sedimentation + micro-electrolysis + Fenton + biological contact oxidation". The
treated water meets the Class III standard of the "Integrated Wastewater Discharge Standard"
(DB12/356-2018) and is then discharged into the Tianyu Sewage Treatment Plant of the Ziya
Economic and Technological Development Zone High-Tech Industrial Park through the park's
sewage pipeline network for further treatment. Additionally, the plant implements a separation
system for rainwater and sewage, with flow directions marked on the sewage and rainwater
pipelines. Production wastewater, domestic sewage, and rainwater are discharged separately.
The treated wastewater flows through the municipal pipeline network to a specialized sewage
treatment plant. The plant's sewage treatment facilities are operating well, and the discharge
levels of various pollutant factors meet the standards. The main sewage discharge outlet of the
plant is equipped with online monitoring instruments, which are connected to the Tianjin
Municipal Bureau of Ecology and Environment, enabling real-time monitoring of the compliance
of external wastewater discharge.
Tianjin Vehicle has facilities such as a hazardous waste temporary storage room and a general
solid waste recycling area. The construction of the hazardous waste temporary storage room
complies with the standards of the “Pollution Control Standard for Hazardous Waste Storage”.
General industrial solid waste is sorted, with recyclable materials handed over to third-party
professional agencies for recycling. Production and domestic waste are collected and
periodically removed by sanitation departments, while hazardous waste is safely disposed of by
qualified professional companies. In 2023, all hazardous waste generated by Tianjin Vehicle
was transferred and disposed of in compliance with legal requirements.
In addition to the aforementioned environmental protection measures, Tianjin Vehicle has also
implemented corresponding measures to control noise, ensuring compliance with national and
local environmental protection requirements.
(2) Henan Vehicle
The main pollutant factors in the wastewater discharged by Henan Vehicle include pH, COD,
ammonia nitrogen, SS, and total phosphorus. The plant has a wastewater treatment station with
a capacity of 100 m?/d to treat production wastewater, using a process of "pretreatment +
physicochemical reaction + filtration + biochemical treatment". The treated production and
domestic wastewater are discharged into a specialized municipal sewage treatment plant. The
plant's sewage treatment facilities are operating well, and the discharge levels of various
pollutant factors meet the standards；
Henan Vehicle has facilities such as a hazardous waste temporary storage room and a general
solid waste recycling area. The construction of the hazardous waste temporary storage room
complies with the standards of the "Pollution Control Standard for Hazardous Waste Storage”.
General industrial solid waste is sorted, with recyclable materials handed over to qualified units
for recycling. Production and domestic waste is collected and periodically removed by sanitation
departments, while hazardous waste is safely disposed of by qualified professional companies.
In 2023, all hazardous waste generated by Henan Vehicle was transferred and disposed of in
compliance with legal requirements.
In addition to the aforementioned environmental protection measures, Henan Vehicle has also
implemented corresponding measures to control exhaust gas and noise, ensuring compliance
with national and local environmental protection requirements.
licenses for environmental protection
√Applicable ?Not applicable
Strictly according to the requirements of laws and regulations, the Company prepares
environmental impact assessment (EIA) documents and obtains EIA approval for new and
expanding projects requiring environmental protocols, constructing strictly in accordance with
legal and regulatory requirements. The Company performs the completion and acceptance
procedures of environmental protection according to laws and regulations after the completion
of the construction.
√Applicable ?Not applicable
Tianjin Vehicle and Henan Vehicle filed their contingency plans for environmental emergencies
in local environmental protection administrations in August 2021 and August 2022 respectively
and received the corresponding filing receipt. They further inspected risk sources and took
relevant corrective measures to improve environmental risk prevention mechanism, and reduce
the possibility of environmental risk accidents. Tianjin Vehicle and Henan Vehicle have
organized relevant personnel every year to carry out emergency drills for environmental risk
accidents in order to improve emergency response capacities.
√Applicable ?Not applicable
Tianjin Vehicle and Henan Vehicle have online monitoring systems installed at the main waste
gas and wastewater discharging ports for real-time monitoring of principal pollutants, and
monitoring data is directly uploaded to environmental protection data platform, various
pollutants are discharged in conformity with relevant standards. Tianjin Vehicle and Henan
Vehicle maintain operation and maintenance records for waste gas and wastewater treatment
facilities, as well as solid and hazardous waste, in daily production.
Tianjin Vehicle and Henan Vehicle entrusts qualified testing institutions to regularly monitor
waste water, waste gas and noise strictly in accordance with “Self-Monitoring Technical
Guidance for Pollutant Discharging Entities” and other standards, as well as monitoring
frequency requirement of environmental impact evaluation documents and pollutant discharging
license. The testing report is uploaded to the pollution source monitoring data management and
information sharing platform.
?Applicable √Not applicable
?Applicable √Not applicable
(II) Description of environmental protection situation of companies other than those
defined as key pollutant-discharging entities
√Applicable ?Not applicable
?Applicable √Not applicable
entities
√Applicable ?Not applicable
The Company upholds the concept of green and high-quality development, prioritizing green
production. It thoroughly implements the principles of sustainable development, environmental
protection, and green low-carbon practices in all business activities. The Company has
established a comprehensive green management system, integrating it into all aspects of
production operations and environmental development. This approach aims to create a modern
production enterprise characterized by green products, clean production, beautiful environment,
and scientific management. The Company and its subsidiaries continuously improve the
environmental management system to promote high-quality development. Several subsidiaries
have already obtained environmental management system certification.
The Company and its subsidiaries strictly abide by relevant laws, regulations and standards. All
new, reconstruction and expansion projects have gone through the EIA procedures, with their
construction contents consistent with the EIA approval, and have passed the completion
acceptance of environmental protection. Relevant subsidiaries actively manage the operation of
pollutant prevention and control facilities to ensure satisfactory treatment capacity of the
facilities, strictly implement the management regulations of pollutant discharge licenses, carry
out daily and regular monitoring of pollutants, and realize up-to-standard discharge of waste gas,
wastewater and noise and compliant disposal of solid waste. All relevant subsidiaries have
developed emergency plans for sudden environmental incidents as required, and organized
regular drills.
?Applicable √Not applicable
(III) Relevant information favorable to ecological protection, pollution prevention and
control and environmental responsibility fulfillment
√Applicable ?Not applicable
The Company integrates the concept of sustainable development into its production and
operation, strengthens the green management throughout the product life cycle by establishing
and improving the environmental management system, constantly improves the utilization
efficiency of resources and energy, and actively creates an efficient, clean, low-carbon and
recycling green manufacturing system. The Company and its subsidiaries regularly inspect and
improve high-energy-consuming equipment, enhance the analysis of energy consumption and
improve the energy utilization rate; actively selects energy-saving and water-saving products,
extensively uses recyclable packaging, and works to extend the lifespan of turnover boxes, in
an effort to reduce the consumption of resources and energy.
(IV) Measures taken during the reporting period to reduce carbon emission and their
effectiveness
Whether carbon emission
Yes
reduction measures were taken
Reduction in CO2 equivalent
emissions (Unit: Ton)
Tianjin Vehicle has added a new vacuum paint sludge
drying machine. This machine can remove more than
through the drying process. With a daily processing
Carbon reduction measures (e.g.,
capacity of 4,000 kg, the dried paint sludge is reduced to
using clean energy in power
less than 1,000 kg. This effectively reduces energy
generation, using carbon reduction
consumption in subsequent solid waste treatment
technologies in production,
processes, significantly lowering carbon emissions in the
developing and producing new
solid waste treatment phase. Additionally, the entire
products for carbon reduction)
drying process for the paint sludge is conducted in a
sealed vacuum state, and the resulting gases are treated
with specialized equipment to prevent environmental
pollution.
Detailed description
?Applicable √Not applicable
II. Performance of Social Responsibilities
(I) Whether a social responsibility report, sustainable development report or ESG report
was disclosed separately
√Applicable ?Not applicable
For details about the Company’s performance of its social responsibilities, please refer to the
Environmental, Social and Governance (ESG) Report 2023 published on the same day as the
Annual Report of 2023.
(II) Details of social responsibility works
√Applicable ?Not applicable
Donation and public
Quantity/Content Descriptions
welfare projects
Total investment (in Ten Mainly for charitable donations, education
Thousand Yuan) donation, etc.
Detailed description
?Applicable √Not applicable
III. Particulars on the Efforts to Consolidate and Expand Its Achievements in Poverty
Alleviation and Rural Area Invigoration
√Applicable ?Not applicable
Poverty alleviation and rural revitalization Quantity/Content
projects
Total investment (in Ten Thousand Yuan) 3.00
Including: funds (in Ten Thousand Yuan) 3.00
The Company actively fulfills its corporate social
responsibility, engaging in public welfare activities and
focusing on rural revitalization and educational
development.
In August 2023, the Company made a special donation
Forms of assistance (e.g., poverty alleviation
through the Guigang City Gangbei Communist Youth
through industrial development, poverty
League to support students from financially disadvantaged
alleviation through employment, poverty
families in Wule Town, Gangbei District. This donation was
alleviation through education, etc.)
used to cover tuition fees and living expenses, contributing
to the rural revitalization and educational development of
Wule Town.
In July 2023, the Company donated to the "6.30 Support
Rural Revitalization" charity event in Dongguan City.
Detailed description
?Applicable √Not applicable
Section 6 Significant Events
I. Fulfillment of Commitments
(I) Commitments of the Company’s actual controller, shareholders, related parties, acquirer, as well as the Company and other relevant
entities during or up to the reporting period
√Applicable ?Not applicable
Whether Whether it If it is not timely
Commitm Commitm If it is not timely
Commitm there is a is timely performed, the
ent ent Commitment performed, the
ent Promisor deadline for and plan for the
Backgrou Descripti Duration specific reasons
Category implementa strictly further step
nd on should be stated
tion performed should be stated
June 15, 2021
Restricted
Zhang Jian and Zhang Gege Note 1 to June 14, Yes Yes N/A N/A
shares
June 15, 2021
Restricted
Yancheng Dingai and its partners Note 2 to June 14, Yes Yes N/A N/A
shares
Zhang Jian, Zhang Gege,
Others Yancheng Dingai and its partners, Note 3 Long term No Yes N/A N/A
Commitm
Liu Jianxin, Peng Wei
ents
The Company, Zhang Jian, Zhang
related to
Gege, Duan Hua, Liu Jianxin,
IPO June 15, 2021
Peng Wei, Fang Hao, Wang
Others Note 4 to June 14, Yes Yes N/A N/A
Quanzhang, Li Yubao, Hao Hong,
Wang Chunyan, Ren Yong, Hu
Yupeng
Solution
to peer
Zhang Jian and Zhang Gege Note 5 Long term No Yes N/A N/A
competitio
n
Solution
to related
party Zhang Jian and Zhang Gege Note 6 Long term No Yes N/A N/A
transactio
ns
Zhang Jian, Zhang Gege, Gao Hui, February 23,
Restricted Peng Wei, Wang Chunyan, Zheng 2023 to
Note 7 Yes Yes N/A N/A
shares Hui, Li Yubao, Luo Qingyi, Duan September 3,
Hua, Liu Tingxu 2023
Commitm February 23,
ents Sun Minggui, Liu Junfeng, Ma 2023 to
Others Note 8 Yes Yes N/A N/A
related to Junsheng, Xu Peng, Li Yan September 3,
refinancin 2023
g
Zhang Jian, Duan Hua, Zhang
Gege, Gao Hui, Peng Wei, Wang
Others Chunyan, Sun Minggui, Liu Note 9 Long term No Yes N/A N/A
Junfeng, Ma Junsheng, Zheng Hui,
Li Yubao, Luo Qingyi
Note 1: Commitment to lock-up of shares for IPO
The Company's controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitment:
From the date of the Company's stock listing, I shall not transfer nor entrust the management of the shares I directly or indirectly hold that were issued
prior to the public offering, nor shall I permit the Company to repurchase those shares held by me, either directly or indirectly, for a period of thirty-six
months.
Upon the expiration of the stated lock-up period, I will establish subsequent shareholding plans based on commercial investment principles, while
strictly adhering to the regulations of the China Securities Regulatory Commission and the stock exchanges. Should there be an intended sale of the
issuer's stock, I will notify the issuer and make an announcement three trading days in advance, and will proceed in accordance with the "Company
Law of the People's Republic of China”, the "Securities Law of the People's Republic of China”, and other relevant regulations of the CSRC and stock
exchanges. If the sale is to be conducted through centralized competitive bidding transactions, I will report and file the reduction plan with the stock
exchanges 15 trading days before the initial sale of the shares and make an announcement accordingly.
Note 2: Commitment to lock-up of shares for IPO
The Company's shareholder Yancheng Dingai and its partners have made the following commitment:
From the date of the Company's stock listing, for a period of thirty-six months, I will not transfer or entrust the management of the shares directly or
indirectly held by myself/our enterprise that were issued prior to the public offering, nor will I allow the Company to repurchase those shares held by
myself/our enterprise, either directly or indirectly.
Note 3: Commitment regarding Intentions to hold and reduce shares after initial public offering
The Company's controlling shareholders and actual controllers, Zhang Jian, Zhang Gege, Yancheng Dingai and its partners, Liu Jianxin, and Peng
Wei, made the following commitments:
(1) While serving as a director or senior management of the Company, I will not transfer more than 25% of the shares I directly or indirectly hold in the
Company annually; and I will not transfer any shares I directly or indirectly hold in the Company within six months of resignation.
(2) I commit that if shares are reduced within two years after the expiration of the lock-up period, the reduction price will not be lower than the issuance
price. Should there be dividends, bonus shares, capital reserve transfers to increase share capital, rights issues, etc., the price will be adjusted
accordingly based on the ex-dividend and ex-rights status.
(3) The above commitments will not be waived due to changes in position, resignation, or similar reasons. Should non-compliance with these
commitments result in losses to the Company or other investors, I shall bear the legal liability to compensate the Company or other investors as
required by law.
Note 4: Commitment to stabilize the Company's stock price and share repurchase
(1) The Company has made the following commitment:
① Within three years from the date of IPO, if the closing price of the Company's stocks is consistently below the net asset value per share as per the
most recent audited financial statement for 20 consecutive trading days (adjusted accordingly if ex-rights and ex-dividends are due to cash dividends,
bonus shares, capital increases, or new share issuance, the same below), the Company will initiate stock price stabilization measures—repurchasing
Company shares—subject to relevant laws, regulations, and provisions without causing the share distribution to fall out of compliance with listing
requirements.
② The Company's Board of Directors shall convene within five trading days from the day the conditions for initiating stock price stabilization measures
are met to deliberate the share repurchase plan, which shall then be submitted for shareholder meeting approval. The Company shall commence the
repurchase on the trading day following the shareholder meeting’s approval of such plan.
③ The share repurchase price shall not exceed the net asset value per share as per the most recent audited financial statement. The methods of
repurchase may include centralized competitive bidding, tender offers, or other methods approved by the securities regulatory authority. Under the
premise that it does not cause the Company’s share distribution to fail to meet the listing requirements, the funds used for each share repurchase by
the Company shall not be less than RMB 10 million, and the total funds used for price stabilization repurchases in a single fiscal year shall not exceed
used for share repurchases shall not exceed the total funds raised in the Company’s initial public offering.
④ If any condition specified in the "Aima Technology Group Co., Ltd. Three-Year Post-IPO Stock Price Stabilization Plan" that terminates the
implementation of stock price stabilization measures is triggered between the time the stock price stabilization plan is initiated and before the formal
implementation of the stabilization measures or during their implementation, the above-mentioned stock price stabilization plan shall be terminated.
⑤ Within three years from the date the Company’s stocks are listed, if new directors (excluding independent directors) or senior management are
appointed, the Company will require these newly appointed directors and senior management to adhere to the commitments made by directors and
senior management at the time of the Company’s listing.
(2) The Company’s controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitment:
① Within three years from the date of IPO, if the closing price of the Company's stocks is consistently below the net asset value per share as per the
most recent audited financial statement for 20 consecutive trading days (adjusted accordingly if ex-rights and ex-dividends are due to cash dividends,
bonus shares, capital increases, or new share issuance, the same below), I will, according to relevant laws, regulations, and provisions, initiate stock
price stabilization measures—acquiring additional Company shares—ensuring it does not cause the Company's share distribution to fall out of
compliance with listing requirements.
② If, following the completion of the Company’s stock price stabilization measures (as officially announced), the closing price of the Company's stocks
remains below the net asset value per share for 10 consecutive trading days or if the closing price is consistently below the net asset value per share
for 20 consecutive trading days within three months thereafter, I will initiate stock price stabilization measures.
③ Within five trading days from the day the conditions for initiating stock price stabilization measures are met, I will propose a plan to acquire
additional Company shares (including the number of shares to be acquired, price range, and completion deadline) and notify the Company. The
Company shall announce the acquisition plan according to the relevant regulations, and I will begin acquiring shares on the trading day following the
announcement.
④ The price at which I acquire shares shall not exceed the net asset value per share at the end of the last fiscal year as audited. The number of
shares I acquire in a twelve-month period from the date the conditions for initiating stock price stabilization measures are triggered shall not exceed 1%
of the total number of Company shares, and the funds I use for acquiring shares shall be at least 30% of the total amount of direct or indirect after-tax
cash dividends and after-tax salaries or allowances I received from the Company in the previous year.
⑤ If any condition specified in the "Aima Technology Group Co., Ltd. Three-Year Post-IPO Stock Price Stabilization Plan" that terminates the
implementation of stock price stabilization measures is triggered between the time the stock price stabilization plan is initiated and before the formal
implementation of the stabilization measures or during their implementation, the above-mentioned stock price stabilization plan shall be terminated.
⑥ I assure that during the implementation of the Company's stock price stabilization plan, I will vote in favor of resolutions related to the repurchase of
shares.
(3) The directors of the Company—Zhang Jian, Zhang Gege, Duan Hua, Liu Jianxin, Peng Wei, Fang Hao—and senior management
personnel—Wang Quanzhang, Li Yubao, Hao Hong, Wang Chunyan, Ren Yong, Hu Yupeng—have made the following commitments:
① For three years from the date of the Company's listing, should the closing price of the Company's stock fall below the net asset value per share as
determined by the most recent audited financial statements for 20 consecutive trading days (with adjustments made for ex-rights and ex-dividends due
to cash dividends, bonus shares, capital increases, or new share issuance, the same below), I will initiate measures to stabilize the stock price by
acquiring additional shares of the Company, ensuring these measures do not cause the Company's equity distribution to fall out of compliance with
listing standards.
②If, following the completion of the Company's stock price stabilization measures (as officially announced), the closing price of the Company's stocks
remains below the net asset value per share for 10 consecutive trading days or if the closing price is consistently below the net asset value per share
for 20 consecutive trading days within three months thereafter, I will initiate further stock price stabilization measures.
③ Within five trading days from the day the conditions for initiating stock price stabilization measures are met, I will propose a plan to acquire
additional Company shares (including the number of shares to be acquired, price range, and completion deadline) and notify the Company. The
Company shall announce the acquisition plan in accordance with the relevant regulations, and I will commence the acquisition on the trading day
following the announcement.
④ The price at which I acquire shares shall not exceed the net asset value per share as determined at the end of the last fiscal year audited. The
number of shares I acquire in a twelve-month period from the date the conditions for initiating stock price stabilization measures are triggered shall not
exceed 1% of the total number of Company shares, and the funds I use for acquiring shares shall be at least 30% of the total amount of direct or
indirect after-tax cash dividends and after-tax salaries or allowances I received from the Company in the previous year.
⑤ Should any condition specified in the "Aima Technology Group Co., Ltd. Three-Year Post-IPO Stock Price Stabilization Plan" that terminates the
implementation of stock price stabilization measures be triggered either before the formal implementation of the stabilization measures or during their
implementation, the aforementioned stock price stabilization plan shall be terminated.
⑥ I assure that during the implementation of the Company's stock price stabilization plan, I will vote in favor of resolutions related to the repurchase of
shares.
Note 5: Commitment regarding the resolution and avoidance of peer competition
The Company's controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitments:
(1) To prevent enterprises that I control or have significant influence over from entering into peer competition with Aima Technology following its public
listing, I hereby commit: While I serve as a controlling shareholder and actual controller of Aima Technology, enterprises under my control or significant
influence will not, either directly or indirectly, engage in any business or activities that compete with Aima Technology, within or outside of China, in any
manner (including but not limited to sole proprietorship, through joint ventures, or by owning shares or other interests in another company or
enterprise). Furthermore, I shall not hold any substantial management roles in any economic organization that is in peer competition with Aima
Technology.
Should Aima Technology expand its business scope, I commit to ensuring that enterprises I control or significantly influence will not compete with Aima
Technology’s expanded business. If I or any enterprises I control or significantly influence encounter business opportunities that could potentially
compete with the current or future operations of Aima Technology, I will take all possible and reasonable steps to offer such opportunities to Aima
Technology first. If Aima Technology decides not to pursue these opportunities, I and the enterprises I control or significantly influence will take
feasible steps to transfer these opportunities to unrelated third parties before these opportunities move to the implementation phase, or we will
withdraw from such business opportunities or take other favorable actions to safeguard Aima Technology's interests and avoid peer competition.
I will ensure that enterprises under my control or significant influence fulfill the obligations stated in this commitment letter by deploying appropriate
institutional mechanisms and personnel (including but not limited to directors, managers) and by maintaining a controlling position.
(2) I assure that I will not use my status as a controlling shareholder and actual controller of Aima Technology to the detriment of the legitimate
interests of Aima Technology and its minority shareholders, nor will I leverage my position to gain undue additional benefits.
(3) I confirm that each commitment in this letter is independently actionable. If I breach any of these commitments, Aima Technology has the right to
demand that I and the enterprises I control or significantly influence immediately cease any competing actions, and may require me or the enterprises I
control or significantly influence to compensate Aima Technology for any direct or indirect financial losses, claims liabilities, and associated costs
incurred.
(4) I ensure that these commitments will remain effective and are irrevocable during the period while Aima Technology is listed on the domestic
securities exchange and while I am a controlling shareholder and actual controller. Should there be any changes in relevant laws, regulations, or
regulatory guidelines during this period, I will update or supplement these commitments accordingly.
Zhang Jian, as the actual controller of the Company, additionally commits:
While I serve as the actual controller of Aima Technology, I will ensure and guarantee that Aima Technology and its subsidiaries will not have any
financial or business dealings with enterprises controlled by or significantly influenced by the Zhang Hong family or Zhang Ru family, nor will they act
through these enterprises to the detriment of Aima Technology and its shareholders (including minority shareholders). Should I violate this
commitment, I am willing to compensate for the resulting losses.
Note 6: Measures taken by the Company to minimize related-party transactions
The Company's controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitments:
(1) I, along with my close relatives and any other economic organizations controlled by myself or my close relatives, will endeavor to avoid or minimize
related-party transactions with Aima Technology (including its consolidated subsidiaries). Transactions that Aima Technology can conduct with
independent third parties through the market will be carried out between Aima Technology and such third parties. I, my close relatives, and the
economic organizations controlled by us will strictly avoid lending to, using the funds of, or engaging in any acts where Aima Technology's funds are
used for advance payments or debt repayments on our behalf.
(2) All necessary transactions between myself, my close relatives, the economic organizations controlled by us, and Aima Technology shall strictly
adhere to market principles. These transactions will be conducted fairly and reasonably on an equal and mutually beneficial basis, with compensation
equivalent to value. Where government pricing exists, it will be adhered to; where there is no government pricing, market fair price shall apply; and in
the absence of both, prices will be determined based on cost plus a reasonable profit margin comparable to similar transactions.
(3) All related-party transactions between myself, my close relatives, the economic organizations controlled by us, and Aima Technology will be clearly
stipulated through written contracts or agreements. These transactions will strictly adhere to the statutes of Aima Technology, the related-party
transaction management system, and other relevant regulations. They will undergo the necessary legal procedures, and I will voluntarily comply with
legal recusal obligations during deliberations of related-party transactions by Aima Technology's governing bodies. Transactions that require approval
from competent authorities will only be executed after such approval has been obtained.
(4) I assure that I will not obtain any improper benefits through related-party transactions nor impose any undue obligations on Aima Technology.
Should any violation of these commitments result in losses to Aima Technology or if benefits to Aima Technology are encroached upon through
related-party transactions, Aima Technology reserves the right to unilaterally terminate such transactions, with any losses incurred to be borne by me.
(5) For unavoidable related-party transactions, I will ensure that Aima Technology strictly follows the decision-making procedures for related-party
transactions, the conflict of interest recusal rules, and disclosure requirements as set out in the Company’s bylaws, to ensure that such transactions
are fair, just, and equitable, thereby preventing any harm to the interests of Aima Technology and its shareholders.
(6) These commitments will remain effective for as long as I am a related party to Aima Technology.
Note 7: Commitment to subscribe for the public issuance of convertible corporate bonds
(1) The Company's controlling shareholders and actual controllers, Zhang Jian, has made the following commitments:
I will subscribe for the convertible bonds to be issued by the Company this time with my self-owned or self-raised funds. The amount of subscription
will be determined according to the relevant laws, regulations and normative documents, the plan for issuance of convertible bonds and my financial
condition at that time.
If I or my spouse, parents or children reduce our shares in the Company within six months before the first day of this issue, I shall not personally
participate in the subscription of the convertible bonds nor entrust others to do so on my behalf.
If I successfully subscribe for the convertible bonds, both I and my spouse, parents and children shall strictly abide by the legal requirements on
short-term trading, that is, we commit not to reduce our shares in the Company and these convertible bonds from the first day of this issue to six
months after the completion of this issue.
I voluntarily make the aforesaid commitment, and agree to be bound by the aforesaid commitment and to strictly abide by relevant laws, regulations
and normative documents. If I or my spouse, parents or children violate the aforesaid commitment, all gains derived from such violation shall be
forfeited to the Company, and I or my spouse, parents or children shall bear the legal liabilities arising therefrom according to law.
(2) Directors Zhang Gege, Gao Hui, Peng Wei, Wang Chunyan, and senior management personnel Zheng Hui, Li Yubao, Luo Qingyi have made the
following commitment:
If I or my spouse, parents or children reduce our shares in the Company within six months before the first day of this issue, I shall not personally
participate in the subscription of the convertible bonds nor entrust others to do so on my behalf.
If neither I, my spouse, parents, nor children reduce our shares in the Company within six months before the first day of this issue, I will decide whether
to participate in the subscription of the convertible bonds according to the market conditions and my capital arrangements. If I successfully subscribe
for the convertible bonds, both I and my spouse, parents and children shall strictly abide by the legal requirements on short-term trading, that is, pledge
not to sell or otherwise dispose of our shares in the Company and these convertible bonds from the first day of this issue to six months after the
completion of this issue.
If I or my spouse, parents or children reduce our shares in the Company or the subscribed convertible bonds in violation of the aforesaid commitment,
all earnings from such violation shall belong to the Company, and I or my spouse, parents or children shall bear the legal liabilities arising therefrom
according to law.
(3) Directors Duan Hua and supervisor Liu Tingxu have made the following commitment:
In this issuance of the Company’s convertible bonds, I will not participate in the subscription. If my spouse, parents and/or children have the
preemptive right to the convertible bonds due to shareholding in the Company, he/she/they will decide whether to participate in the subscription of the
convertible bonds according to the market conditions and capital arrangements. In case of successful subscription of the convertible bonds, both I and
my spouse, parents and/or children shall strictly abide by the legal requirements on short-term trading, that is, commit not to reduce his/her/their
shares in the Company (if any) from the first day of this issue to six months after the completion of this issue. Except for the above circumstances, I
commit not to entrust other entities to participate in the subscription of the convertible bonds, and not to participate in the subscription of the convertible
bonds by using the account of my spouse, parents or children or any other person. The above commitment reveals my genuine intention.
If I or my spouse, parents or children violate the aforesaid commitment, all earnings from such violation shall belong to the Company, and I or my
spouse, parents or children shall bear the legal liabilities arising therefrom according to law.
Note 8: Commitment not to participate in the public issuance of convertible corporate bonds subscription
Directors Sun Minggui, Liu Junfeng, Ma Junsheng, and supervisors Xu Peng and Li Yan have made the following commitment:
I will not participate in the subscription of the convertible bonds to be issued by the Company this time on my own, or through my spouse, parents or
children or any other person. The above commitment reveals my genuine intention. If I participate in the subscription of the convertible bonds in
violation of the above commitment, all earnings from such violation shall belong to the Company, and I shall bear the legal liabilities arising therefrom
according to law.
Note 9: Commitment to measures to compensate for the immediate dilution of returns from the public issuance of convertible corporate
bonds
(1) The Company's controlling shareholders and actual controllers, Zhang Jian and Zhang Gege, have made the following commitments:
① I pledge not to overstep my authority in the management of the Company nor encroach upon the Company’s interests.
② From the date this commitment is made until the completion of this public issuance of convertible corporate bonds by Aima Technology, should
there be new regulatory provisions from the China Securities Regulatory Commission (CSRC), the Shanghai Stock Exchange, or other regulatory
bodies concerning compensation measures and commitments, and if the existing commitments do not meet these new provisions, I pledge to issue
supplementary commitments in accordance with the latest regulations.
As a responsible party for the compensation measures, if I violate the above commitments or refuse to fulfill them, I accept that the CSRC, the
Shanghai Stock Exchange, and other securities regulatory authorities may impose relevant penalties or take management measures as per their
regulations and rules, and I am willing to bear the corresponding legal responsibilities.
(2) Directors Zhang Jian, Duan Hua, Zhang Gege, Gao Hui, Peng Wei, Wang Chunyan, Sun Minggui, Liu Junfeng, Ma Junsheng, and senior
management personnel Zheng Hui, Li Yubao, Luo Qingyi have made the following commitments:
① I pledge not to transfer benefits gratuitously or under unfair conditions to other units or individuals, nor to use other methods to harm the interests of
the Company.
② I commit to restraining my official expenditures.
③ I pledge not to use the Company’s assets for investments or consumption activities unrelated to my responsibilities.
④ I commit that the remuneration system developed by the Board of Directors or the Compensation and Evaluation Committee will be linked to the
implementation of the Company’s compensation measures.
⑤ Should Aima Technology later introduce a company equity incentive policy, I pledge that the proposed conditions for exercising equity incentives
will be linked to the implementation of the Company’s compensation measures.
⑥ From the date this commitment is made until the completion of this public issuance of convertible corporate bonds, should the CSRC, the Shanghai
Stock Exchange, or other regulatory bodies issue new regulatory provisions regarding compensation measures and commitments, and if the existing
commitments do not meet these provisions, I pledge to issue supplementary commitments in accordance with the latest regulations.
As a responsible party for the compensation measures, if I violate the above commitments or refuse to fulfill them, I accept that the CSRC, the
Shanghai Stock Exchange, and other securities regulatory authorities may impose relevant penalties or take management measures as per their
regulations and rules, and I am willing to bear the corresponding legal responsibilities.
(II) If there are earnings forecast for the assets or projects of the Company and the
reporting period is still in the earnings forecast period, the Company should explain
whether the asset or project reaches the original earnings forecast and give the reasons
□ Already reached □ Not reached √ Not applicable
(III) Fulfillment of commitments on the performance and its impacts on goodwill
impairment test
□ Applicable √ Not applicable
II. Non-Operational Occupancy of the Company’s Funds by the Controlling Shareholder
and its Related Parties during the Reporting Period
□ Applicable √ Not applicable
III. Information on Non-Compliance Guarantees
□ Applicable √ Not applicable
IV. Explanation of the Board of Directors in Company on the “Non-standard Opinion
Audit Report” Issued by the Accounting Firm
□ Applicable √ Not applicable
V. Analysis and Explanation on the Causes and Influences of the Changes in the
Company’s Accounting Policies, Accounting Estimates or Correction of Major
Accounting Errors
(I) Analysis and explanation of the Company on the causes and influences of the
changes in the accounting policies and accounting estimates
√ Applicable □ Not applicable
The Interpretation “No. 16 of Accounting Standards for Business Enterprises”, issued in 2022,
stipulates that for transactions that are not business combinations, do not affect accounting
profit or taxable income (or deductible losses) at the time of the transaction, and result in equal
taxable temporary differences and deductible temporary differences due to the initial recognition
of assets and liabilities, the exemption from initial recognition of deferred income tax does not
apply.
Starting from January 1, 2023, the Company has implemented this standard. For lease
transactions where lease liabilities are initially recognized and included in right-of-use assets at
the commencement date of the lease term, the taxable temporary differences and deductible
temporary differences arising from the initial recognition of assets and liabilities will now result in
the respective recognition of deferred income tax liabilities and deferred income tax assets,
instead of the previous practice of not recognizing deferred income tax. According to the
transition provisions, for the transactions occurring between the beginning of the earliest period
presented in the financial statements in which this interpretation is first applied and the date of
the accounting policy change, the Company has made adjustments. The Interpretation “No. 16
of Accounting Standards for Business Enterprises” does not have a significant impact on the
deferred income tax assets and liabilities presented net in the Company's consolidated balance
sheet.
(II) Analysis and explanation of the Company’s analysis on reasons and effects of the
correction of major accounting errors
□ Applicable √ Not applicable
(III) Communication with former accounting firm
□ Applicable √ Not applicable
(IV) Approval procedures and other notes
□ Applicable √ Not applicable
VI. Engagement/Disengagement of the CPAs
Unit: Ten Thousand Yuan (RMB)
Current appointment
Name of the domestic CPAs Ernst & Young Hua Ming LLP
Remuneration to the domestic CPAs 320
Years of the domestic CPAs offering auditing services 11
Name of CPAs of the domestic accounting firm Guo Jing and Zhao Ruiqing
Years of CPAs of the domestic accounting firm
offering auditing services
Name Remuneration
Accounting firm for internal
Ernst & Young Hua Ming LLP 50
control audit
Sponsor Huatai United Securities Co., Ltd. 144
Note to engagement/disengagement of the CPAs
√ Applicable □ Not applicable
On May 5, 2023, the Proposal on Continuing the Employment of the Financial Audit Body and
Internal Control Audit Body for 2023 was reviewed and adopted at the 2022 annual general
meeting of shareholders. Accordingly, Ernst & Young Hua Ming LLP continued to be appointed
as the Company’s financial audit body and internal control audit body for 2023.
Note to the replacement of the CPAs during the auditing
□ Applicable √ Not applicable
Note to audit fees falling by more than 20% (inclusive) compared with the previous year
□ Applicable √ Not applicable
VII. Delisting Risk
(I) Reasons for the delisting risks warning
□ Applicable √ Not applicable
(II) Solution to be adopted by the Company
□ Applicable √ Not applicable
(III) Termination of the listing and its reasons
□ Applicable √ Not applicable
VIII. Events Related to Bankruptcy and Reorganization
□ Applicable √ Not applicable
IX. Major Lawsuit and Arbitration Issues
□ Significant lawsuits and arbitrations in the reporting period
√ No significant lawsuit or arbitration in the reporting period
X. Punishment and Correction on the Listed Company as well as its Directors,
Supervisors, Senior Management, Controlling Shareholders and Actual Controller due to
Suspect of Law Violations
□ Applicable √ Not applicable
XI. Integrity Status of the Company, its Controlling Shareholder and Actual Controller
during the Reporting Period
√ Applicable □ Not applicable
During the reporting period, the Company, its controlling shareholder and actual controller were
all enjoying good reputation in integrity, and there was no failure to perform any effective
judgment of the court, or large amount of outstanding due debts remaining unpaid.
XII. Significant Related-Party Transactions
(I) Related-party transactions from daily operation
in subsequent implementation
□ Applicable √ Not applicable
subsequent implementation
√ Applicable □ Not applicable
On December 29, 2022, the third meeting of the Fifth Board of Directors of the Company
passed a resolution with six votes in favor, none against, and no abstentions, approving the
Proposal on Anticipated Daily Related-party Transactions for the Company and Its Subsidiaries
for the Year 2023. Related Directors Zhang Jian, Duan Hua, and Zhang Gege abstained from
the vote. For more details, please see the announcement published on the Shanghai Stock
Exchange website on December 30, 2022.
For the fiscal year 2023, the anticipated and executed daily related-party transactions between
the Company and related parties are as follows:
Unit: Ten Thousand Yuan
Trading Anticipated Actual amount
Types of related-party transactions Related parties
party amount in 2023 in 2023
Purchasing goods from the related party 3,000.00 793.07
The Providing services to the related party Tianjin Jiema 15.00 89.73
Company Electric Technology
and its Leasing a house to the related party Co., Ltd. 1,200.00 899.40
subsidiaries Other daily related-party transactions 100.00 0.00
Subtotal 4,315.00 1,782.20
Renting a house from the related party Duan Hua 500.00 476.19
The
Company Accepting the services and goods provided Shangqiu Yichong
by the related party Trading Co., Ltd.
Total 9,315.00 5,984.02
□ Applicable √ Not applicable
(II) Related-party transactions concerning acquisition and sales of assets or equity
subsequent implementation
□ Applicable √ Not applicable
implementation
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Ten Thousand Yuan (RMB)
Ass Reason for
Boo Impact of
ess Gai significant
k Settle transactio
Pricing ed ns difference
Conten val ment n on the
Types of principl val fro between
t of ue metho Company'
related-p es for ue Trans m transaction
Relatio related of ds for s
Related arty related of fer the price and
nship -party tran related operating
parties transacti -party tran price ass book value
transac sfer -party results
ons transa sfer et or assessed
tions red transac and
ctions red tran value,
ass tions financial
ass sfer market fair
et condition
et value
Purcha
Tianjin Purchas se of
Jiema Associ e of CNC Not Not Not
Bank No
Electric ate assets pipe Market app app app Not
Technol Compa other bendin price lica lica lica applicable
r impact
ogy Co., ny than g ble ble ble
Ltd. goods machin
e
Sale of
Tianjin semi-a
Sale of
Jiema Associ utomati Not
assets Bank No
Electric ate c pipe Market 3.1 app -0.4 Not
other 2.65 transfe significant
Technol Compa shrinki price 3 lica 8 applicable
than r impact
ogy Co., ny ng ble
goods
Ltd. machin
e
Explanation of related-party transactions involving asset acquisition and sale
During the reporting period, the Company purchased and sold the aforementioned assets to
and from Tianjin Jiema Electric Technology Co., Ltd., an associate company where the
controlling shareholder serves as a director, to meet its production and operational needs. Since
the amounts involved in these related-party transactions were small and did not meet the
thresholds for board review and temporary announcements, the transactions followed the
principles of fairness, equity, and voluntariness, and did not harm the interests of the Company
or its minority investors.
period should be disclosed
□ Applicable √ Not applicable
(III) Significant related-party transactions of joint external investment
subsequent implementation
□ Applicable √ Not applicable
implementation
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(IV) Credits and debts with related parties
subsequent implementation
□ Applicable √ Not applicable
implementation
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(V) Financial transactions between the Company and its related finance companies,
between the Company's holding finance company and the related parties
□ Applicable √ Not applicable
(VI) Others
□ Applicable √ Not applicable
XIII. Significant Contracts and Their Execution
(I) Custody, contacting and leases
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(II) Guarantee
√ Applicable □ Not applicable
Unit: Yuan (RMB)
External guarantees provided by the Company (excluding guarantees to subsidiaries)
Date of
Relationsh
occurrenc
ip
e of the Is the Has the Overdu Counter Guarant
between Amount Guarant Guarant Type of Collater
Guarant Guarante guarante guarant guarant e guarant ee to Relationsh
the guarante ee start ee expiry guarant al (if
or ed party e ee ee been amoun ee related ip
guarantor ed date date ee any)
(date of finished overdue t details party?
and the
agreeme
Company
nt)
Total amount of guarantee occurred during the reporting period
(excluding guarantees to subsidiaries)
Total balance of guarantee at the end of the reporting period (A)
(excluding guarantees to subsidiaries)
Guarantee to the subsidiaries provided by the Company and its subsidiaries
Total amount of guarantees for subsidiaries occurred during the
reporting period
Total balance of guarantees for subsidiaries at the end of the
reporting period (B)
Total amount of guarantees provided by the Company (including guarantees to subsidiaries)
Total amount of guarantees (A+B) 216,443,547.17
of total amount of guarantees to net assets of the Company (%) 2.81
Including:
Amount of guarantees offered to the shareholders, actual controller
and its related parties (C)
Amount of guarantee for liabilities directly or indirectly offered to
the Guaranteed parties with the asset-liability ratio exceeding 70% 167,008,664.86
(D)
Amount of total guarantees exceeding 50% of the net assets (E) 0
Total amount of the aforesaid three guarantees (C+D+E) 167,008,664.86
Note to potential joint and several liabilities for guarantees not yet
N/A
matured”.
The 2022 Annual General Meeting held on May 5, 2023 reviewed and approved
the Proposal on Providing Credit Guarantees for Certain Subsidiaries, and the
Note to the guarantees
above-mentioned guarantees have been reviewed and approved by the
Company's General Meeting.
(III) Entrusting others to manage the cash assets
(1) Overall entrusted wealth management
√ Applicable □ Not applicable
Unit: Ten Thousand Yuan (RMB)
Overdue amount
Type Sources of funds Amount incurred Outstanding balance
unrecovered
Bank financial product Self-owned funds 32,780.00 11,928.66 0
Others
√ Applicable □ Not applicable
The amount of entrusted wealth management in the above table was the highest single-day purchase balance of this type of wealth management
product.；The outstanding balance did not include investment income.
(2) Single entrusted wealth management
□ Applicable √ Not applicable
Others
√ Applicable □ Not applicable
During the reporting period, the Company did not purchase fixed-term wealth management products such as significant single-amount structured
deposits. Other open-ended wealth management products are not applicable.
(3) Provisions for impairment of entrusted wealth management
□ Applicable √ Not applicable
(1) Overall entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(2) Single entrusted loans
□ Applicable √ Not applicable
Others
□ Applicable √ Not applicable
(3) Provisions for impairment of entrusted loans
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(IV) Other important contracts
□ Applicable √ Not applicable
XIV. Explanation of the Progress in Use of Raised Funds
√ Applicable □ Not applicable
(I) Overall usage of raised funds
√ Applicable □ Not applicable
Unit: Ten Thousand Yuan
Total Including: Net amount Net amount Net amount Net amount Net amount Net amount Net amount Net amount
Time of
Source of amount Amount of of raised of raised of raised of raised of raised of raised of raised of raised
fund
raised funds of raised over-raised funds after funds after funds after funds after funds after funds after funds after funds after
arrival
funds funds deducting deducting deducting deducting deducting deducting deducting deducting
issuance issuance issuance issuance issuance issuance issuance issuance
expenses expenses expenses expenses expenses expenses expenses expenses
June 9,
IPO 181,090 0 168,086.38 168,086.38 168,257.49 167,712.27 99.68 28,826.04 17.13 7,462.35
Issuance of
March 1,
Convertible 200,000 0 199,379.74 199,379.74 199,379.74 74,974.09 37.60 74,974.09 37.60 0
Bonds
(II) Details of projects funded by raised funds
√ Applicable □ Not applicable
Unit: Ten Thousand Yuan
Signif
Total Date Speci icant
Invest Whet Bene
Adjus amoun of fic chan
Whet Am ment her Ben fits or
Total ted t of proje reaso ges
her Use oun progre Wh the efit R&D
commit total raised ct ns for in Re
chan Time of t ss by eth input s outco
ted inves funds reach not proje mai
ged Source of ove inv end of er confo real mes
Project invest tment investe ing meeti ct nin
Project Name inves of raised fund r-rai est reporti co rmed ize achie
Nature ment from d by its ng feasi g
tment funds arriva sed ed ng mpl to the d ved
from raise end of plann the bility fun
direct l fun this period ete plann this by
raised d reporti ed plann (spec ds
ion or ds yea (%) (3) d ed yea the
funds funds ng usabl ed ify if
not r period
＝ progr r proje
(1) e progr appli
(2)/(1) ess ct
（2） state ess cable
)
Tianjin Vehicle
Electric Bicycle Productio
June Augu
Complete Vehicle n 8,000. 8,000 8,000. 100.00 Ye
No IPO 9, No st Yes
and Accessories constructi 00 .00 00 % s 8,7
Manufacturing on 08. / No 0.6
Phase I Project 57
Tianjin Vehicle Productio June Augu
Electric Bicycle n No IPO 9, No st Yes
Complete Vehicle constructi 2021 2021
and Accessories on
Manufacturing
Phase II Project
Tianjin Vehicle
Electric Bicycle Productio
June Augu
Complete Vehicle n 8,000. 8,000 8,000. 100.00 Ye
No IPO 9, No st Yes
and Accessories constructi 00 .00 00 % s
Manufacturing on
Phase III Project
Tianjin Vehicle
Electric Bicycle Productio
June Augu
Complete Vehicle n 8,000. 8,000 8,000. 100.00 Ye
No IPO 9, No st Yes
and Accessories constructi 00 .00 00 % s
Manufacturing on
Phase IV Project
Tianjin Vehicle
Electric Bicycle Productio
June Augu
Complete Vehicle n 8,000. 8,000 8,147. 101.85 Ye
No IPO 9, No st Yes
and Accessories constructi 00 .00 90 % s
Manufacturing on
Phase V Project
Tianjin Vehicle
Electric Bicycle Productio
June Augu
Complete Vehicle n 8,000. 8,000 8,000. 100.00 Ye
No IPO 9, No st Yes
and Accessories constructi 00 .00 00 % s
Manufacturing on
Phase VI Project
Tianjin Vehicle
Electric Bicycle Productio
June 2,0 2,5
Production Line n 19,341 19,34 17,016 87.98 June Note
No IPO 9, No 86. No No N/A / No 79.
Technological constructi .08 1.08 .71 % 2024 1
Renovation on
Project
Jiangsu Vehicle Productio
June
Plastic Parts n 7,462. Ye Note
Yes IPO 9, No N/A Yes N/A / Yes N/A
Painting constructi 35 s 2
Production Line on
Technological
Renovation
Project
Tianjin Vehicle
June 4,3
R&D Center 5,053. 5,053 5,200. 102.90 June Ye Note 72.
R&D No IPO 9, No 58. Yes N/A / No
Construction 59 .59 21 % 2024 s 1 01
Project
Jiangsu Vehicle
June 3,2
R&D Center 5,047. 5,047 5,288. 104.77 June Ye Note 9.0
R&D No IPO 9, No 31. Yes N/A / No
Construction 58 .58 22 % 2024 s 1 1
Project
Aima Technology
Operation
IT Upgrade and June Nove
s 8,341. 8,341 8,377. 100.44 Ye 0.2
Big Data Platform No IPO 9, No - mber Yes N/A / No
managem 03 .03 92 % s 0
Construction 2021 2022
ent
Project
Aima Technology Operation
June 19,
Retail Marketing s 48,840 48,84 50,047 102.47 July Ye
No IPO 9, No 149 Yes N/A / No
Network Upgrade managem .75 0.75 .87 % 2023 s
Project ent
Suppleme 5.3
nting 9
Supplementary working June
Working Capital capital No IPO 9, No - N/A Yes N/A / No
.00 0.00 .00 % s
Project and 2021
repaying
loans
Suppleme
nting
Jiangsu Vehicle
working June
Supplementary 7,633 7,633. 100.00 Ye 38.
capital No IPO 9, No N/A Yes N/A / N/A
Working Capital .46 44 % s 90
and 2021
Project
repaying
loans
Lishui Vehicle Productio Issuing Marc 24, Marc 127
New Energy n No converti h 1, No 745 h No No N/A / No ,47
Smart Mobility constructi ble 2023 .45 2025 6.5
Project (Phase I) on bonds 5
Aima Technology Operation Issuing
Marc 50, Dece
Marketing s converti 49,986 49,98 50,228 100.48 Ye
No h 1, No 228 mber Yes N/A / No 0
Network Upgrade managem ble .78 6.78 .64 % s
Project ent bonds
Note 1: The "Tianjin Vehicle Electric Bicycle Production Line Technological Renovation Project”, "Tianjin Vehicle R&D Center Construction Project”,
and "Jiangsu Vehicle R&D Center Construction Project" experienced slight delays in their construction progress due to external environmental factors
and the Company's actual operational situation. Considering the actual investment in the capital-raising projects and future investment plans, on
August 11, 2023, the 11th meeting of the fifth Board of Directors and the 10th meeting of the fifth Supervisory Board reviewed and approved the
"Proposal on the Delay of Some Initial Public Offering Capital Investment Projects”, deciding to postpone the expected date for these projects to reach
operational status to June 2024.
Note 2: Due to significant changes in local environmental protection policies, the "Jiangsu Vehicle Plastic Parts Painting Production Line Technological
Renovation Project" adjusted its operations to entrust the painting of plastic parts to enterprises within a centralized painting center in the area. This
entrusted painting meets the Company's daily operational needs. With the gradual promotion of paint-free technology for plastic parts, the necessity to
continue the original project has significantly decreased. Following the deliberation at the 2021 annual general meeting held on May 6, 2022, the
Company decided to terminate the project and has transferred the unused raised funds to Jiangsu Vehicle's proprietary capital account for permanent
supplementation of working capital.
(III) Changes or terminations of fund-raising investment projects during the reporting
period
□ Applicable √ Not applicable
(IV) Other situations regarding the use of raised funds during the reporting period
√ Applicable □ Not applicable
(1) Initial Public Offering in 2021
On July 21, 2021, the 18th Meeting of the Fourth Board of Directors and the 8th Meeting of the
Fourth Supervisory Board reviewed and approved the Proposal on Using Raised Funds to
Replace Self-Raised Funds Pre-invested in Fundraising Projects and Paid Issuance Expenses.
The Company agreed to use 820.1358 million RMB of the funds raised from the initial public
offering to replace the self-raised funds pre-invested in fundraising projects, and 38.9487 million
RMB (excluding VAT) to replace the self-raised funds used for paid issuance expenses, totaling
Hua Ming LLP, who issued a "Special Verification Report on the Pre-investment of Raised
Funds by Aima Technology Group Co., Ltd. using Self-Raised Funds" (Ernst & Young Hua Ming
(2021) No. 60968971_B09). The Company’s independent directors and the then-sponsor
institution, CITIC Securities Co., Ltd., expressed their independent opinions and verification
opinions, respectively. On July 30, 2021, the Company replaced the total of 859.0845 million
RMB of self-raised funds pre-invested in the fundraising projects with the funds raised from the
initial public offering.
(2) Public Issuance of Convertible Corporate Bonds in 2023
On June 15, 2023, the 9th Meeting of the Fifth Board of Directors and the 9th Meeting of the
Fifth Supervisory Board reviewed and approved the Proposal on Using Raised Funds from
Convertible Corporate Bonds to Replace Self-Raised Funds Pre-Invested in Fundraising
Projects and Paid Issuance Expenses. The Company agreed to use a total of 527.315 million
RMB from the raised funds of the convertible corporate bonds to replace the self-raised funds
pre-invested in fundraising projects and paid issuance expenses. The replacement amount was
reviewed and verified by Ernst & Young Hua Ming LLP, who issued a Verification Report on the
Pre-Investment of Raised Funds by Aima Technology Group Co., Ltd. using Self-Raised Funds
(Ernst & Young Hua Ming (2023) No. 60968971_L10). The Company’s independent directors
and the sponsor institution, Huatai United Securities, expressed their independent opinions and
verification opinions, respectively. On June 26, 2023, the Company replaced the total of
issuance expenses with the funds raised from the convertible corporate bonds.
(3) Using Bankers' Acceptances and Other Methods to Pay Funds for Fundraising Projects
On April 26, 2023, the 7th Meeting of the Fifth Board of Directors and the 7th Meeting of the
Fifth Supervisory Board reviewed and approved the Proposal on Using Bankers' Acceptances
and Other Methods to Pay Funds for Fundraising Projects and Replacing with an Equivalent
Amount of Raised Funds. The Company agreed to use bankers' acceptances and other
methods to pay various expenses in fundraising projects (including those from the initial public
offering and the public issuance of convertible corporate bonds) during the implementation
period, according to actual conditions, and transfer an equivalent amount of funds from the
dedicated fundraising account to the Company’s own account. The Company’s independent
directors and the sponsor institution, Huatai United Securities, expressed their independent
opinions and verification opinions, respectively.
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Ten Thousand Yuan (RMB)
Whether maximum
Approved Cash management
Date of balance during period
amount for cash Start date End date balance at end of
Board review exceeded authorized
management reporting period
limit
June 21, June 21, June 20,
April 14, April 14, April 13,
Others
On June 21, 2022, the Company held the 27th meeting of the fourth Board of Directors and the
of the Temporarily Idle Raised Funds for Cash Management" was reviewed and approved. The
Company agreed to use up to RMB 500 million of temporarily idle funds raised from the initial
public offering (IPO) for cash management, to purchase high-security and high-liquidity
investment products. This authorization is valid for 12 months from the date of approval by the
Board of Directors and Supervisory Board and can be used on a rolling basis within the
authorized amount and validity period. The Company’s independent directors and the then
sponsor, Citic Securities Co., Ltd., both expressed their agreement with this matter.
On April 14, 2023, the Company held the 6th meeting of the fifth Board of Directors and the 6th
meeting of the fifth Supervisory Board, at which the "Proposal on Depositing Part of the Raised
Funds in Current Deposit Forms such as Agreement Deposits and Notice Deposits" was
reviewed and approved. The Company agreed to use up to RMB 2,321 million of raised funds to
be deposited in current deposit forms such as agreement deposits and notice deposits. Among
them, the authorized limit for funds raised from the IPO is up to RMB 275 million, and the
authorized limit for funds raised from the issuance of convertible bonds is up to RMB 2,046
million. This authorization is valid for 12 months from the date of approval by the Board of
Directors and Supervisory Board and can be used on a rolling basis within the authorized
amount and validity period. The Company’s independent directors and the sponsor, Huatai
United Securities, both expressed their agreement with this matter.
During the reporting period, the Company used temporarily idle raised funds to purchase
value-added service current deposits. As of December 31, 2023, the balance of current
deposits purchased with part of the idle raised funds was RMB 1,301.37 million. All these funds
were deposited in the dedicated raised funds accounts, and there was no case of managing
funds outside of the dedicated raised funds accounts.
bank loans
□ Applicable √ Not applicable
□ Applicable √ Not applicable
XV. Note to Other Major Events that Have Significant Impact on Investors' Value
Judgments and Investment Decisions
□ Applicable √ Not applicable
Section 7 Changes in Shares and Information about Shareholders
I. Changes in Shares Capital
(I) Table of changes in shares
Unit: Shares
Before the
Increase or decrease of the change (+, -) After the change
change
Bonu Shares
Percen New Perce
s converted
Quantity tage shares Others Subtotal Quantity ntage
shar from capital
(%) issued (%)
es reserves
I. Restricted shares 74.57 214,263,000 74.07
state-owned legal entities
,000 0 400 5,600 600
Including: shares held by
domestic non-state-owned
legal entities
Shares held by domestic 23,706, 4.13 11,853,100 11,853, 35,559,3 4.13
non-corporate entities 200 100 00
Shares held by domestic 404,819 70.44 202,409,90 -4,397, 198,01 602,832, 69.94
individuals ,800 0 400 2,500 300
investors
Including: shares held by
foreign legal entities
Shares held by foreign
individuals
II. Tradable shares without 146,174 25.43 73,087,002 4,272,4 77,359, 223,533, 25.93
selling restrictions ,004 01 403 407
,004 01 403 407
shares
shares
III. Total shares 100 100
,004 2 9 5,003 007
√ Applicable □ Not applicable
(1) On May 19, 2023, the Company completed the equity distribution for the fiscal year 2022.
The profit distribution and capital increase were based on the total issued capital of
ten shares held, totaling 287,350,002 shares.
(2) On June 1, 2023, the first tranche of the Company's 2021 Restricted Stock Incentive Plan
was unlocked, involving 4,158,000 shares, which became unrestricted and were listed for
trading.
(3) On July 27, 2023, the Company completed the repurchase and cancellation of 126,000
restricted shares from four incentive participants who no longer qualified due to resignation.
(4) On August 28, 2023, an additional 113,400 shares from the reserved grant of the Company's
(5) Starting September 1, 2023, Aima CB could be converted into the Company’s shares; during
the reporting period, a total of 1,001 shares were created through conversion.
asset per share (if any) over the last year and the last reporting period
√ Applicable □ Not applicable
During the reporting period, due to the annual equity distribution for 2022, the repurchase and
cancellation of restricted stock, and convertible bond conversion, the Company’s total issued
capital increased from 574,700,004 shares to 861,925,007 shares. This change resulted in the
dilution of financial metrics such as basic earnings per share and net assets per share for the
fiscal year 2023.
authorities require disclosing
□ Applicable √ Not applicable
(II) Changes in restricted shares
√ Applicable □ Not applicable
In: Share
Number of
Number of shares Increase in Number of Date of
restricted released the number restricted Reason for release
Name of
shares at the from of restricted shares at the restriction on from
shareholders
beginning of restriction shares in the end of the sales restriction
the year on sales in year year on sales
the year
Non-tradable
for 36 June 17,
Zhang Jian 395,243,800 197,621,900 592,865,700
months from 2024
IPO
Yancheng Dingai Non-tradable
Venture Capital for 36 June 17,
Partnership (Limited months from 2024
Partnership) IPO
Restricted
stock
Stock Grant 9,576,000 4,271,400 4,788,000 9,966,600 /
granted in
Recipients
Total 428,526,000 4,271,400 214,263,000 638,391,600 / /
Note: During the reporting period, the Company completed the 2022 annual equity distribution,
issuing an additional five shares for every ten shares held, funded through capital reserves, to
all shareholders. Consequently, the number of restricted shares increased proportionally.
II. Securities Issuance and Listing
(I) Issuance of securities during the reporting period
√ Applicable □ Not applicable
Unit: Shares Currency: RMB
Quantity
Type of shares and
Date of Issuing price (or Shares Date of approved for Expiry date
its derivative
issuance interest rate) issued listing being listed of trading
securities
and traded
Convertible bonds and convertible bonds with warrants
February 100 yuan per March February 22,
Convertible bonds 20,000,000 20,000,000
Other derivative securities
April 19, 48.07 yuan per
Stock options 4,776,000
Note to issuance of securities during the reporting period (for the bonds with different interest
rates during the period, please explain separately):
√ Applicable □ Not applicable
participants. The grant registration was completed on April 19, 2023.
a par value of RMB 100, for a term of six years. These bonds were listed on the Shanghai Stock
Exchange on March 20, 2023, under the abbreviation "Aima CB”.
(II) Changes in total shares and shareholder structure as well as assets and liabilities
structure of the Company
√ Applicable □ Not applicable
During the reporting period, the Company increased its capital by converting capital reserves
into 287,350,002 shares, repurchased and canceled 126,000 shares from departing incentive
participants, and converted 1,001 shares through Aima CB. As a result, the total issued capital
of the Company changed from 574,700,004 shares to 861,925,007 shares.
The aforementioned changes in share capital had no significant impact on the Company's asset
and liability structure.
(III) Existing staff-held shares
□ Applicable √ Not applicable
III. Shareholders and Actual Controller
(I) Total number of shareholders
Total number of common shareholders up to the end of the reporting period 24,261
Total number of common shareholders as at the end of the last month prior to the
disclosure day of the annual report
Total number of preferred shareholders whose voting rights have been restored as at
the end of the reporting period
Total number of preferred shareholders whose voting rights have been restored as at
the end of the month prior to the date of the annual report
(II) Table of top 10 shareholders, top 10 common shares (or tradable shares without
selling restrictions) by the end of reporting period
Unit: Shares
Shareholdings by top 10 shareholders
Increase/ Number of Status of shares
Nature of the
Decreas shares Perc Number of pledged, marked or
Names of the shareholder
e during held at the enta shares held frozen
Shareholders (Full
the end of the ge with selling
name) Status of Quanti
reporting reporting (%) restrictions
the shares ty
period period
Domestic
Zhang Jian 592,865,700 Nil natural
person
Yancheng Dingai
Venture Capital 11,853,1 35,559,30
Partnership (Limited 00 0
Partnership)
Domestic
Hong Kong Securities
-1,236,8 10,780,51 non-state-ow
Clearing Company 1.25 Nil
Ltd.
entity
Domestic
Han Jianhua 6,703,050 0.78 Nil natural
person
Invesco Great Wall
Fund - China Life
Insurance Co., Ltd. -
Dividend Insurance -
Domestic
Invesco Great Wall 3,771,82
Fund China Life 5
person
Balanced Equity
Portfolio Single Asset
Management Plan
(Available for Sale)
Domestic
Peng Wei 6,221,760 0.72 Nil natural
person
Li Shishuang 6,221,692 0.72 Nil
Qiao Baogang 5,590,000 0.65 Nil
China Merchants
Bank Co., Ltd. -
Domestic
Invesco Great Wall 2,600,15
Core China Merchants 8
person
Mixed-Type Securities
Investment Fund
Everbright Sun Life
Asset Management -
Industrial Bank - Domestic
Everbright Sun Life 4,654,876 0.54 Nil natural
Asset No. 121 person
Directed Asset
Management Product
Shareholdings of top 10 shareholders of tradable shares without selling restrictions
Number of tradable Type and quantity of shares
Names of the Shareholders shares without selling
Type Quantity
restrictions
Hong Kong Securities Clearing
Company Ltd.
Han Jianhua 6,703,050 RMB common shares 6,703,050
Invesco Great Wall Fund - China
Life Insurance Co., Ltd. - Dividend
Insurance - Invesco Great Wall
Fund China Life Balanced Equity 6,339,445 RMB common shares 6,339,445
Portfolio Single Asset
Management Plan (Available for
Sale)
Peng Wei 6,221,760 RMB common shares 6,221,760
Li Shishuang 6,221,692 RMB common shares 6,221,692
Qiao Baogang 5,590,000 RMB common shares 5,590,000
China Merchants Bank Co., Ltd. -
Invesco Great Wall Core China
Merchants Mixed-Type Securities
Investment Fund
Everbright Sun Life Asset
Management - Industrial Bank -
Everbright Sun Life Asset No. 121 4,654,876 RMB common shares 4,654,876
Directed Asset Management
Product
Bank of China Co., Ltd. - Invesco
Great Wall Core Zhongjing
One-Year Holding Mixed-Type
Securities Investment Fund
Invesco Great Wall Fund - China
Life Insurance Co., Ltd. -
Traditional Insurance - Invesco
Great Wall Fund China Life
Balanced Equity Traditional
Portfolio Single Asset
Management Plan (Available for
Sale)
As of the end of the reporting period, the Company's dedicated securities
Explanation on repurchase
repurchase account held 14,130,524 shares, which will be used for the
account of top 10 shareholders
implementation of stock incentive plans.
Explanation on delegated voting
rights, entrusted voting rights,
Nil
abstained voting rights of the
aforesaid shareholders
Notes to the related relation or
consistent actions of the Nil
above-mentioned shareholders
Explanation on preference
stockholders with recovered
Nil
voting rights and the number of
stocks held by them
Note: As of the end of the reporting period, Changxing Dingai Investment Management
Partnership (Limited Partnership) has been renamed to Yancheng Dingai Venture Investment
Partnership (Limited Partnership).
Top ten shareholders participating in the lending of shares under the refinancing business
□ Applicable √ Not applicable
Changes in the top ten shareholders compared with the previous period
√ Applicable □ Not applicable
Unit: Shares
Changes in the top ten shareholders compared with the previous period
Number of shares held
Number of shares in ordinary and credit
New lent out via securities accounts, including
entries/e lending not yet shares lent out via
Name of shareholder (full name) xits this returned at period securities lending not
reporting end yet returned at period
period end
Total Percent Total Percenta
number age (%) number ge (%)
CITIC Securities Investment Co., Ltd. Exit
Jinshi Entertainment Equity Investment
Exit
(Hangzhou) Partnership (Limited Partnership)
Invesco Great Wall Fund - China Life Insurance
Co., Ltd. - Dividend Insurance - Invesco Great
New
Wall Fund China Life Balanced Equity Portfolio 0 0 6,339,445 0.74
entry
Single Asset Management Plan (Available for
Sale)
Liu Jianxin Exit 0 0 3,600,120 0.42
China Merchants Bank Co., Ltd. - Invesco
New
Great Wall Core China Merchants Mixed-Type 0 0 4,800,114 0.56
entry
Securities Investment Fund
Everbright Sun Life Asset Management -
New
Industrial Bank - Everbright Sun Life Asset No. 0 0 4,654,876 0.54
entry
Note: CITIC Securities Investment Co., Ltd. and Jinshi Entertainment Equity Investment
(Hangzhou) Partnership (Limited Partnership) were not among the top 200 holders in the
Company's ordinary and margin trading credit accounts at the end of the reporting period.
Number of shares held by top ten shareholders with selling restrictions and the selling
restrictions
√ Applicable □ Not applicable
Unit: Shares
Restricted shares allowed for public
trading
Number of
Names of shareholders Increase in
No. restricted Selling restrictions
with selling restrictions Date when public restricted shares
shares
trading is allowed allowed for
public trading
months from IPO
Yancheng Dingai 35,559,300
Venture Capital Non-tradable for 36
Partnership (Limited months from IPO
Partnership)
stock incentive
stock incentive
Non-tradable due to
stock incentive
Non-tradable due to
stock incentive
Non-tradable due to
stock incentive
Non-tradable due to
stock incentive
Non-tradable due to
stock incentive
Non-tradable due to
stock incentive
Notes to the related relation or
consistent actions of the
Nil
above-mentioned
shareholders
Note: "Restricted Stock Incentive" refers to the restrictive stock incentive plan released by the
Company on November 17, 2021. Incentive recipients will be eligible to apply for listing and
trading of their shares only after the performance metrics of the incentive plan are met.
(III) Strategic investors or general legal entity who became the top 10 shareholders due
to placing of new shares
□ Applicable √ Not applicable
IV. Controlling Shareholders and Actual Controllers
(I) Controlling shareholder
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Name Zhang Jian
Nationality China
Residency in other countries or regions (yes/no) No
Main occupations and positions Chairman of the Board & General Manager
□ Applicable √ Not applicable
□ Applicable √ Not applicable
its controlling shareholder
√ Applicable □ Not applicable
(II) Actual controller
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Name Zhang Jian, Zhang Gege
Nationality China
Residency in other countries or
No
regions (yes/no)
Zhang Jian is the Chairman of the Board and the General
Manager of the Company; Zhang Gege is a director of the
Main occupations and positions
Company, the executive director and general manager of
Suiwanwan, and the executive partner of Yancheng Dingai.
Controlling interests in other
domestically and overseas
Not applicable
listed companies in the past 10
years
□ Applicable √ Not applicable
□ Applicable √ Not applicable
actual controllers
√ Applicable □ Not applicable
management
□ Applicable √ Not applicable
(III) Other information about controlling shareholders and actual controllers
□ Applicable √ Not applicable
V. The Cumulative Number of Shares Pledged by The Company's Controlling
Shareholders or Largest Shareholder and Their Concert Parties Exceeds 80% of Their
Total Shareholdings.
□ Applicable √ Not applicable
VI. Other Legal Entity Shareholder Holding More Than 10%
□ Applicable √ Not applicable
VII. Restrictions on Shareholding Reduction
□ Applicable √ Not applicable
VIII. Specific Implementation of Share Repurchase During the Reporting Period
Unit: Yuan (RMB)
Share repurchase plan name Share repurchase plan via centralized bidding transaction
Disclosure time of share repurchase plan August 29, 2023
Planned repurchase of 4,226,542 to 8,453,085 shares,
Planned number of shares to repurchase
representing 0.49% to 0.98% of the total share capital at the
and percentage of total share capital (%)
time of the plan’s disclosure.
Not less than RMB 200 million and not more than RMB 400
Planned repurchase amount
million
Not exceeding six months from the date of approval by the
Planned repurchase period
Company's Board of Directors
Purpose of repurchase For stock incentive or employee share ownership plans
Number of shares already repurchased 14,130,524
Percentage of already repurchased shares
relative to the shares involved in the stock Not applicable
incentive plan (%) (if applicable)
Progress of share repurchase through
Not applicable
centralized bidding transaction
Repurchase and cancellation of partial stock incentive
Share repurchase plan name
restricted shares
Disclosure time of share repurchase plan May 20, 2023
Planned number of shares to repurchase and Planned repurchase of 126,000 shares, representing 0.0146%
percentage of total share capital (%) of the total share capital at the time of plan disclosure
RMB 1,074,800 (plus accrued bank interest for the same
Planned repurchase amount
period).
Planned repurchase period July 27, 2023
Purpose of repurchase Cancellation
Number of shares already repurchased 126,000
Percentage of already repurchased shares
relative to the shares involved in the stock 0.86
incentive plan (%) (if applicable)
Progress of share repurchase through
Not applicable
centralized bidding transaction
Section 8 Preferred Shares
□ Applicable √ Not applicable
Section 9 Bond-related Information
I. Corporate Bonds, Company Bonds, and Non-Financial Corporate Debt Financing
Instruments
?Applicable √Not applicable
II. Convertible Corporate Bonds
?Applicable √Not applicable
(I) Issuance of convertible bonds
√Applicable ?Not applicable
Approved by the China Securities Regulatory Commission with the permit number [2022]3038,
the Company publicly issued 20,000,000 convertible corporate bonds on February 23, 2023.
Each bond has a par value of 100 yuan, totaling an issuance amount of 2,000,000,000 yuan.
China Securities Pengyuan Credit Rating Co., Ltd. provided a credit rating report for this
issuance titled 2022 Public Issuance of Convertible Corporate Bonds Credit Rating Report for
Aima Technology Group Co., Ltd. The Company's corporate credit rating is AA, and the credit
rating for this issuance of convertible bonds is also AA. With the consent of the Shanghai Stock
Exchange Self-Regulatory Supervision Decision [2023]41, the Company's 2,000,000,000 yuan
convertible corporate bonds began trading on the Shanghai Stock Exchange on March 20, 2023,
“under the bond abbreviation 'Aima CB' and bond code '113666'.
(II) Convertible bond holders and guarantors during the reporting period
√Applicable ?Not applicable
Convertible corporate bond name Aima CB
Number of bondholders at period-end 8,983
Guarantors of the Company's convertible bonds N/A
Top ten holders of convertible bonds are as follows：
Amount held at Percentage of holdings
Names of convertible corporate bond holder
period-end (in yuan) (%)
Zhang Jian 825,000,000 41.25
China Construction Bank Corporation - Yifangda
Dual-Bond Enhanced Bond-Type Securities Investment 79,542,000 3.98
Fund
Guosen Securities Co., Ltd. 70,826,000 3.54
Bank of China Limited - Yifangda Steady Income
Bond-Type Securities Investment Fund
China Minsheng Banking Corp., Ltd. - Anxin Steady
Growth Flexible Allocation Mixed-Type Securities 25,346,000 1.27
Investment Fund
Ping An Fund - Ping An Life Insurance Company of
China, Ltd. - Dividend - Individual Insurance Dividend -
Ping An Life - Ping An Fund Fixed Income Mandated
Investment No. 1 Single Asset Management Plan
China Merchants Bank Co., Ltd. - Anxin Steady Profit
Increase Mixed-Type Securities Investment Fund
PICC Asset Management - China Merchants Bank -
PICC Assets Anxin Prosperous World No. 29 Asset 15,650,000 0.78
Management Product
Bank of Communications Co., Ltd. - Xingquan Stable
Profit Increase Bond-Type Securities Investment Fund
Shanghai Pudong Development Bank Co., Ltd. - 15,138,000 0.76
Yifangda Yuxiang Return Bond-Type Securities
Investment Fund
(III) Changes in convertible bonds during the reporting period
√Applicable ?Not applicable
Unit: Yuan (RMB)
Convertible Before the Increase/decrease in this change After the current
corporate bond current change change
Conversion Redemption Repurchase
names
Aima CB 2,000,000,000 40,000 1,999,960,000
Accumulated Conversion of Convertible Bonds During the Reporting Period
√Applicable ?Not applicable
Convertible corporate bond name Aima CB
Conversion amount during the reporting period (yuan) 40,000
Number of shares converted during the reporting period (shares) 1,001
Cumulative number of shares converted (shares) 1,001
Percentage of cumulative shares converted relative to the total
number of shares issued prior to conversion (%)
Outstanding conversion amount (yuan) 1,999,960,000
Percentage of unconverted convertible bonds relative to the total
issuance of convertible bonds (%)
(IV) Adjustment History of Conversion Prices
√Applicable ?Not applicable
Unit: Yuan (RMB)
Convertible corporate bond
Aima CB
names
Conversion Adjusted
Disclosur Explanation of conversion price
price conversio Disclosure media
e date adjustment
adjustment date n price
The Company implemented the annual
China Securities
equity distribution for 2022. According
Journal, Shanghai
May 13, to the regulations related to convertible
May 19, 2023 39.99 Securities News,
Securities Times,
was adjusted from 61.29 yuan per
Securities Daily
share to 39.99 yuan per share.
The Company carried out the
China Securities semi-annual equity distribution for
Journal, Shanghai 2023. According to the regulations
September 22, Septembe
Securities Times, conversion price of Aima CB was
Securities Daily adjusted from 39.99 yuan per share to
Latest conversion price as of
the end of the reporting 39.64
period
(V) The Company's liabilities, credit rating changes, and cash arrangements for debt
repayment in future years
√Applicable ?Not applicable
In accordance with the "Regulations on the Administration of Securities Issuance by Listed
Companies" and the "Regulations on the Issuance and Trading of Corporate Bonds”, the
Company engaged China Securities Pengyuan Credit Rating Co., Ltd. to conduct a credit rating
for the Aima CB issued in February 2023. On May 23, 2023, China Securities Pengyuan issued
the "2023 Follow-up Credit Rating Report for Aima Technology Group Co., Ltd.'s Publicly Issued
Convertible Corporate Bonds”. The Company's corporate credit rating was affirmed at "AA" with
a "stable" outlook, and the credit rating for the Aima CB was also "AA”. There has been no
change in the rating outcomes compared to the previous assessment.
The Company's operations remain stable, with a reasonable asset structure and no significant
changes in liabilities. Its credit status is sound. The primary sources of cash for debt repayment
in the coming year include revenues from the Company's normal business operations, cash
inflows, and the liquidation of current assets.
(VI) Other Matters Regarding Convertible Bonds
√Applicable ?Not applicable
From June 7 to June 30, 2023, the Company's stock price was below 85% of the conversion
price on at least 15 out of 30 consecutive trading days, triggering the downward revision clause
of the Aima CB conversion price. The Company convened the 10th meeting of the fifth Board of
Directors and decided not to adjust the conversion price downward. Furthermore, if the
Company's stock price triggers the downward revision clause of the Aima CB again within the
next three months (from July 1, 2023, to September 30, 2023), the Company will not propose a
downward revision.
From October 9 to October 27, 2023, the Company's stock price was again below 85% of the
conversion price on at least 15 out of 30 consecutive trading days, triggering the downward
revision clause of the Aima CB conversion price. The Company convened the 15th meeting of
the fifth Board of Directors and decided not to adjust the conversion price downward.
Additionally, if the Company's stock price triggers the downward revision clause of the Aima CB
again in the next three months (from October 28, 2023, to January 27, 2024), the Company will
not propose a downward revision plan.
Section 10 Financial report
I. Auditor’s Report
√ Applicable □ Not applicable
Ernst & Young Hua Ming (2024) Shen Zi NO. 70017005_L01
Aima Technology Group Co,. LTD.
To all shareholders of Aima Technology Group Co,. LTD.,
I. Opinion
We have audited the financial statements of Aima Technology Group Co,. LTD. (the
“Company”), which comprise the consolidated and company balance sheets as at 31 December
statement of changes in equity and the consolidated and company statement of cash flows for
the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
financial position of the consolidated and company as at 31 December 2023, and of its financial
performance and cash flows for the year then ended in accordance with Accounting Standards
for Business Enterprises (“ASBEs”).
II. Basis for opinion
We conducted our audit in accordance with China Standards on Auditing (“CSAs”). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the financial statements section of our report. We are independent of the Company
in accordance with China Code of Ethics for Certified Public Accountants (the “Code”), and we
have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
III. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. For each matter
below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of
the financial statements section of our report, including in relation to these matters. Accordingly,
our audit included the performance of procedures designed to respond to our assessment of the
risks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our
audit opinion on the accompanying financial statements.
How our audit addressed the key audit
Key audit matters:
matter：
Sales rebates and incentives
The book value of sales rebates and incentives Our audit procedures performed on sales
payable in the consolidated financial statements rebates and incentives mainly include:
on December 31, 2023 was RMB
rebates and incentives payable in the Company's rebate and incentives management,
financial statements was RMB 146,780,140.33. perform walkthrough and control test on
It is stipulated in the distribution agreement identified controls;
signed with the dealers that sales rebates and 2) check the distribution agreements signed
other specific incentives should be given based with several dealers in 2023 and examine
on the purchase volume to offset against the provisions in the distribution
revenue. On the balance sheet date, sales agreements on sales rebates and
rebates and incentives are estimated based on incentives;
the dealers’ purchase volume and other rebates 3) select a number of dealers to check
and promotion policies. Due to the large number whether the sales rebates and incentives
of dealers and the various forms of sales rebates obtained by them comply with the relevant
and incentives, the purchase volume of each sales policies, and check the application of
dealer and the achievement of other these dealers' sales rebates and incentives;
performances needs to be considered in order to 4) review the year-end rebate provision
determine the period of sales rebates and process prepared by management and
incentives. The calculation of sales rebates and select samples to review the relevant
incentives depends on the judgment and estimate supporting documents;
of the management. 5) execute the subsequent review procedure
to check the sales rebate payable by the
Company at the end of the year and the
actual payment status thereafter.
to internal control of sales rebate and
incentives.
Bad debt provision of accounts receivable
The book value of accounts receivable in the Our audit procedures performed on bad debt
consolidated financial statements on December provision for accounts receivable mainly
value of the accounts receivable in the
Company's financial statements was RMB 1) for the accounts receivable that have been
interview the managers of the sales
The management considers the credit risk department and the legal department, and
characteristics of different customers and review the basis for the management to
evaluates the expected credit losses (“ECLs”) of estimate the bad debt provision, including
accounts receivable based on the aging portfolio. the communication correspondences
Then, on the basis of ECLs, the bad debt between the management and the relevant
provision is measured according to the ECLs customers, the management’s assessment
amount equivalent to the entire lifetime. The on credit risks of the customers in
management considers reasonable and consideration of their operating conditions
supportable information about past events, and historical payment record, etc.;
current conditions and forecasts of future 2) for the accounts receivable assessed by
economic conditions when assessing ECLs. combination, review the management's
setting of the combination of credit risk
The dealers’ customers are scattered and characteristics, key information such as the
numerous, and the estimation of bad-debt aging, and with the combination of credit
provision for accounts receivable depends on the risk characteristics (i.e. aging combination)
judgment and estimation of the management. as the base, review the management’s
basis to assess the credit risk and ECLs
amount, including testing historical default
data, evaluating adjustments to historical
loss rates based on current economic
conditions, and evaluating forward-looking
information by examining publicly available
macroeconomic factors, and check the
actual credit losses incurred during the
year;
accounts receivable, and consider the
impact of subsequent events on the
estimation of bad debt provision;
provision for accounts receivable, and
review the amount of bad debt provision;
for accounts receivable in the financial
statements.
IV. Other information
The management of Aima Technology Group Co,. LTD. is responsible for the other information.
The other information comprises the information included in the Annual Report, other than the
financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report in this
regard.
V. Responsibilities of the management and those charged with governance for the
financial statements
The management of the Company is responsible for the preparation and fair presentation of the
financial statements in accordance with ASBEs, and for designing, implementing and
maintaining such internal control as the management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the management is responsible for assessing Aima
Technology Group Co,. LTD.’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless either
intend to liquidate Aima Technology Group Co,. LTD. or to cease operations or have no realistic
alternative but to do so.
Those charged with governance is responsible for overseeing Aima Technology Group Co,.
LTD.’s financial reporting process.
VI. Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with CSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
generally considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Company to express an opinion on the financial statements.
We are responsible for the direction, supervision and performance of the group audit. We
remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and to communicate with those charged
with governance all relationships and other matters that may reasonably be thought to bear on
our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Ernst & Young Hua Ming LLP Chinese Certified Public Accountant: Guo Jing
Chinese Certified Public Accountant: Zhao Ruiqing
Beijing, the People’s Republic of China 15 April 2024
II. Financial Statements
Consolidated Balance Sheet
December 31, 2023
Prepared by Aima Technology Group Co,. LTD.
Unit: Yuan (RMB)
Items Notes December 31, 2023 December 31, 2022
Current assets:
Currency funds VII.1 6,667,258,951.18 6,633,455,070.29
Settlement reserve
Inter-bank lending
Financial assets held for trading VII.2 176,041,430.92 142,668,675.59
Derivative financial assets
Notes receivable
Accounts receivable VII.5 357,840,165.19 290,365,547.11
Receivables financing VII.7 8,893,241.61 8,332,754.00
Prepayments VII.8 36,627,883.96 17,554,574.37
Receivable premium
Reinsurance accounts receivable
Reserve for reinsurance contract
receivable
Other receivables VII.9 15,687,906.27 28,051,920.26
Including: Interest receivable 1,212,339.44 1,160,941.82
Dividend receivable
Redemptory monetary capital for sale
Inventories VII.10 575,340,281.28 810,511,287.32
Contract assets
Assets classified as held for sale
Current portion of non-current assets VII.12 1,628,460,684.93 3,524,708,328.77
Other current assets VII.13 119,888,220.69 77,023,491.16
Total current assets 9,586,038,766.03 11,532,671,648.87
Non-current assets:
Loan issuing and advance in cash
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments VII.17 127,263,995.91 128,152,070.40
Other equity investments
Other non-current financial assets
Investment properties VII.20 283,701,850.41 254,380,733.64
Fixed assets VII.21 2,183,672,286.70 2,032,623,909.57
Construction in progress VII.22 992,205,279.91 86,011,318.10
Productive biological asset
Oil and Gas Assets
Right-of-use assets VII.25 34,112,539.64 42,520,495.80
Intangible assets VII.26 715,925,849.18 457,986,772.95
Development expenditures
Goodwill
Long-term prepaid expenses VII.28 39,328,251.23 43,895,107.41
Deferred tax assets VII.29 167,938,840.75 84,023,263.65
Other non-current assets VII.30 5,762,625,958.57 3,809,089,833.43
Total non-current assets 10,306,774,852.30 6,938,683,504.95
Total assets 19,892,813,618.33 18,471,355,153.82
Current liabilities:
Short-term borrowings VII.32 511,250,000.00
Borrowings from the central bank
Loans from other banks
Financial liabilities held for trading
Derivative financial liabilities
Notes payable VII.35 6,032,204,440.66 6,853,338,997.32
Accounts payable VII.36 2,459,299,045.99 2,535,832,081.83
Receipts in advance VII.37 19,145,352.20 20,619,060.26
Contract liabilities VII.38 625,232,267.97 638,429,605.04
Money from sale of the repurchased
financial assets
Deposits taking and interbank
placement
Acting trading securities
Income from securities underwriting on
commission
Employee benefits payable VII.39 171,544,807.08 162,900,880.50
Taxes and surcharges payable VII.40 140,201,158.00 154,033,696.44
Other payables VII.41 628,111,216.14 564,648,489.37
Including: interest payable
Dividends payable
Service charge and commission
payable
Payable reinsurance
Liabilities classified as held for sale
Current portion of non-current liabilities VII.43 17,568,122.60 5,682,224.67
Other current liabilities VII.44 28,516,899.32 24,329,644.32
Total current liabilities 10,121,823,309.96 11,471,064,679.75
Non-current liabilities:
Reserve for insurance contract
Long-term borrowings
Bonds payable VII.46 1,644,650,128.51
Including: preferred shares
Perpetual bond
Lease liabilities VII.47 43,479,059.60 53,522,636.81
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income VII.51 292,432,400.56 198,066,664.29
Deferred tax liabilities VII.29 10,356,257.80 14,379,454.97
Other non-current liabilities
Total non-current liabilities 1,990,917,846.47 265,968,756.07
Total liabilities 12,112,741,156.43 11,737,033,435.82
Shareholders’ equity：
Share capital VII.53 861,925,007.00 574,700,004.00
Other equity instruments 432,645,369.56
Including: preferred shares
Perpetual bond
Capital reserves VII.55 1,763,412,639.40 1,977,765,415.63
Less: Treasury stock VII.56 481,505,173.88 134,953,200.00
Other comprehensive income 268.34
Special reserves
Surplus reserves VII.59 430,962,503.50 290,784,296.91
General risks reserves
Retained earnings VII.60 4,704,597,603.69 4,012,879,593.44
Total shareholders’ equity attributable 7,712,038,217.61 6,721,176,109.98
to the parent company
Minority shareholders’ equity 68,034,244.29 13,145,608.02
Total shareholder’s equity 7,780,072,461.90 6,734,321,718.00
Total Liabilities and Shareholder’s 19,892,813,618.33 18,471,355,153.82
equity
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting
supervisor: Zheng Hui
Balance Sheet, Parent Company
December 31, 2023
Prepared by: Aima Technology Group Co,. LTD.
Unit: Yuan (RMB)
Items Notes December 31, 2023 December 31, 2022
Current assets:
Currency funds 3,759,867,193.06 4,266,016,159.86
Financial assets held for trading 96,011,328.54 73,480,000.00
Derivative financial assets
Notes receivable
Accounts receivable XIX.1 142,148,320.82 132,291,280.96
Receivables financing 800,000.00
Prepaid expenses 209,322,655.87 17,235,274.40
Other receivables XIX.2 1,711,340,208.96 68,706,590.46
Including: Interest receivable 415,312.11 350,530.03
Dividend receivable
Inventories 1,219,904.61 4,103,773.21
Contract assets
Assets classified as held for sale
Current portion of non-current assets 982,088,082.19 3,306,865,479.45
Other current assets 759,959.76
Total current assets 6,903,557,653.81 7,868,698,558.34
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments XIX.3 1,110,377,202.67 1,141,022,337.98
Other equity investments
Other non-current financial assets
Investment properties 364,958,228.68 396,853,576.99
Fixed assets 48,328,609.98 53,213,577.74
Construction in progress 14,009,791.48 21,015,488.53
Productive biological asset
Oil and Gas Assets
Right-of-use assets 2,197,714.93 6,601,760.89
Intangible assets 134,873,847.52 101,097,036.78
Development expenditures
Goodwill
Long-term prepaid expenses 12,210,197.77 21,412,482.96
Deferred tax assets 66,307,429.84
Other non-current assets 2,641,121,253.90 1,402,486,388.12
Total non-current assets 4,394,384,276.77 3,143,702,649.99
Total assets 11,297,941,930.58 11,012,401,208.33
Current liabilities:
Short-term borrowings
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 2,357,961,214.82 4,513,457,663.63
Accounts payable 529,945,172.71 662,254,935.86
Receipts in advance 19,612,420.37 21,964,709.66
Contract liabilities 199,774,250.25 224,829,884.12
Employee benefits payable 46,809,701.56 39,866,027.04
Taxes and surcharges payable 83,023,161.77 29,001,097.89
Other payables 406,117,301.77 396,088,908.57
Including: interest payable
Dividends payable
Liabilities classified as held for sale
Current portion of non-current liabilities 7,353,401.71 4,555,680.46
Other current liabilities 6,713,755.59 8,375,154.72
Total current liabilities 3,657,310,380.55 5,900,394,061.95
Non-current liabilities:
Long-term borrowings
Bonds payable 1,644,650,128.51
Including: preferred shares
Perpetual bond
Lease liabilities 2,353,501.71
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 67,366,822.35 52,366,165.75
Deferred tax liabilities 10,790,576.99
Other non-current liabilities
Total non-current liabilities 1,712,016,950.86 65,510,244.45
Total liabilities 5,369,327,331.41 5,965,904,306.40
Shareholders’ equity：
Share capital 861,925,007.00 574,700,004.00
Other equity instruments 432,645,369.56
Including: preferred shares
Perpetual bond
Capital reserves 1,956,903,933.04 2,173,462,800.28
Less: Treasury stock 481,505,173.88 134,953,200.00
Other comprehensive income
Special reserves
Surplus reserves 430,962,503.50 290,784,296.91
Retained earnings 2,727,682,959.95 2,142,503,000.74
Total shareholder’s equity 5,928,614,599.17 5,046,496,901.93
Total Liabilities and Shareholder’s
equity
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting
supervisor: Zheng Hui
Consolidated Income Statement
Unit: Yuan (RMB)
Items Notes 2023 2022
I. Revenue 21,036,120,862.29 20,802,212,994.46
Including: operating revenue VII.61 21,036,120,862.29 20,802,212,994.46
Interest income
Earned insurance premium
Service charge and commission income
II. Total operating costs 18,957,888,320.63 18,647,645,240.06
Including: cost of sales VII.61 17,562,865,946.73 17,398,502,632.36
Interest payment
Service charge and commission payment
Surrender Value
Compensation expenses, net
Provision of reserve for insurance liabilities,
net
Payment of policy dividend
Reinsurance expenses
Taxes and surcharges VII.62 100,346,301.43 105,061,796.17
Selling expenses VII.63 641,208,788.04 587,315,848.35
Administrative expenses VII.64 474,276,849.74 432,777,222.67
Research and development expenses VII.65 589,467,221.52 506,685,038.01
Financial expenses VII.66 -410,276,786.83 -382,697,297.50
Including: Interest expenses 24,713,122.27 8,693,658.65
Interest income 437,121,544.42 394,300,036.06
Add: Other income VII.67 173,159,360.74 78,130,046.97
Investment income (loss is stated with “-”) VII.68 -21,396,254.38 -3,687,987.74
Including: Income from investments in
-28,590,454.64 -21,624,009.83
associates and joint ventures
Income from the derecognition of financial
assets measured at amortised cost
Exchange income (loss is stated with “-”)
Net position hedging gains (loss is stated
with “-”)
Fair value gains (loss is stated with “-”) VII.70 -17,226,650.77 -12,120,000.00
Credit impairment losses (loss is stated with VII.71
-15,472,032.67 18,855,144.03
“-”)
Impairment losses of assets (loss is stated VII.72
-3,823,176.99 -3,399,468.47
with “-”)
Gains on disposal of non-current assets VII.73
(loss is stated with “-”)
III. Operating profit (loss is stated with “-”) 2,193,930,571.93 2,233,631,542.17
Add: Non-operating income VII.74 40,582,816.75 34,198,940.47
Less: Non-operating expenses VII.75 21,155,434.76 40,844,163.45
IV. Total profit (total loss is stated with “-”) 2,213,357,953.92 2,226,986,319.19
Less: Income tax expense VII.76 317,011,002.31 354,443,490.41
V. Net Profit (net loss is stated with “-”) 1,896,346,951.61 1,872,542,828.78
(I) Classified by continuity of operations
stated with “-”)
is stated with “-”)
(II) Classified by ownership
(loss is stated with “-”)
equity (loss is stated with “-”)
VI. Other comprehensive income, net of tax 268.34
(I) Other comprehensive income, net of tax, 268.34
attributable to owners of the parent
be reclassified to profit or loss
(1) Remeasurement of a defined benefit plan
(2) Other comprehensive income using the
equity method that will not be reclassified to
profit or loss
(3) Change in the fair value of other equity
investments
(4) Change in the fair value of the entity’s
own credit risks
reclassified to profit or loss
(1) Other comprehensive income using the
equity method that may be reclassified to
profit or loss
(2) Change in the fair value of other debt
investments
(3) Amount recognized in other
comprehensive income resulting from the
reclassification of financial assets
(4) Provision for credit impairment of
receivables financing
(5) Cash flow hedge reserve (Effective
portion of cash flow hedges)
(6) Exchange differences on translation of 268.34
foreign currency financial statements
(7) Others
(II) Other comprehensive income, net of tax,
attributable to Minority shareholders’ equity
VII. Total comprehensive income 1,896,347,219.95 1,872,542,828.78
(I) Total comprehensive income attributable
to owners of the parent
(II) Total comprehensive income attributable
to Minority shareholders’ equity
VIII. Earnings per share:
(I)Basic earning per share (Yuan/share) 2.20 3.31
(II) Diluted earning per share (Yuan/share) 2.12 3.31
Where business combinations involving entities under common control occurred in the current
period, the net profit achieved by the acquirees before the combinations was RMB0.00, with the
amount for last year being RMB0.00.
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting
supervisor: Zheng Hui
Income Statement, Parent Company
Unit: Yuan (RMB)
Items Notes 2023 2022
I. Operating revenue XIX.4 8,354,752,676.28 8,263,777,075.64
Less: cost of sales XIX.4 7,874,127,442.14 7,659,354,139.02
Taxes and surcharges 17,617,838.74 20,983,232.85
Selling expenses 221,248,416.20 229,438,863.69
Administrative expenses 268,936,664.85 237,029,411.46
Research and development expenses 2,758,407.10 8,732,594.46
Financial expenses -241,758,174.14 -252,311,999.65
Including: Interest expenses 22,365,446.32 426,973.01
Interest income 264,174,764.59 255,146,331.63
Add: Other income 53,986,193.40 3,541,812.97
Investment income (loss is stated with “-”) XIX.5 1,576,271,319.28 647,705,392.11
Including: Income from investments in
-38,817,295.52 -30,086,884.58
associates and joint ventures
Income from the derecognition of financial
assets measured at amortised cost
Net position hedging gains (loss is stated
with “-”)
Fair value gains (loss is stated with “-”) -17,395,271.46 -12,120,000.00
Credit impairment losses (loss is stated
-2,262,133.56 -5,964,963.11
with “-”)
Impairment losses (loss is stated with “-”)
Gains on disposal of non-current assets
(loss is stated with “-”)
II. Operating Profit (loss is stated with “-”) 1,822,788,481.31 993,862,836.76
Add: Non-operating income 8,995,591.36 5,728,258.49
Less: Non-operating expenses 7,017,560.54 30,327,413.42
III. Total profit (total loss is stated with “-”) 1,824,766,512.13 969,263,681.83
Less: Income tax expense 50,188,780.82 79,720,727.74
IV. Net Profit (net loss is stated with “-”) 1,774,577,731.31 889,542,954.09
(I) Profit from continuing operations (net
loss is stated with “-”)
(II) Profit from a discontinued operation (net
loss is stated with “-”)
V. Other comprehensive income, net of tax
(I) Other comprehensive income which
cannot be re-classified into the gain and
loss
plan
equity method that will not be reclassified to
profit or loss
investments
own credit risks
(II) Other comprehensive income that may
be reclassified to profit or loss
equity method that may be reclassified to
profit or loss
investments
comprehensive income resulting from the
reclassification of financial assets
receivables financing
portion of cash flow hedges)
foreign currency financial statements
VI. Total comprehensive income 1,774,577,731.31 889,542,954.09
VII. Earnings per share:
(I)Basic earning per share (Yuan/share)
(II) Diluted earning per share (Yuan/share)
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting
supervisor: Zheng Hui
Consolidated Statement of Cash Flows
Unit: Yuan (RMB)
Items Notes 2023 2022
I. Cash flows from operating activities
Cash receipts from the sale of goods and
the rendering of services
Net increase of customers’ deposit and
due from banks
Net increase of borrowings from the
central bank
Net increase of borrowings from other
financial institutions
Cash received from the premium of the
original insurance contract
Net cash received from the reinsurance
business
Net increase of the reserve from policy
holders and investment
Cash received from interest, service
charge and commission
Net increase of loan from other banks
Net increase of fund from repurchase
business
Net cash received from securities trading
on commission
Receipts of taxes and surcharges refunds 68,378,509.66 116,364,189.79
Other cash receipts relating to operating
VII.78 724,345,794.56 404,578,051.90
activities
Total cash inflows from operating
activities
Cash payments for goods and services 19,878,826,053.53 16,219,896,063.13
Net increase of loans and advances to
customers
Net increase of due from central bank and
due from other banks
Cash from payment for settlement of the
original insurance contract
Net increase of the lending capital
Cash paid for interest, service charge and
commission
Cash for payment of policy dividend
Cash payments to and on behalf of
employees
Payments of all types of taxes and
surcharges
Other cash payments relating to operating VII.78
activities
Total cash outflows from operating
activities
Net cash flows from operating activities 1,864,276,233.90 5,051,454,116.94
II. Cash flows from investing activities:
Cash receipts from returns of investments VII.78 3,798,013,400.00 1,148,910,000.00
Cash receipts from returns on
investments
Net cash receipts from disposal of fixed
assets, intangible assets and other 19,630,741.82 15,787,319.61
long-term assets
Net cash receipts from disposal of
subsidiaries and other business units
Net cash receipts from acquisition of
VII.78 33,504,341.91
subsidiaries
Other cash receipts relating to investing
activities
Total cash inflows from investing activities 4,251,603,095.48 1,185,272,485.11
Cash payments to acquire fixed assets,
intangible assets and other long-term 1,960,197,416.09 842,288,846.59
assets
Cash payments for investments 4,201,598,392.90 2,521,302,800.00
Net increase of the pledged loan
Net cash payments for acquisition of
subsidiaries and other business units
Other cash payments relating to investing
activities
Total cash outflows from investing
activities
Net cash flows from investing activities -1,910,192,713.51 -2,178,319,161.48
III. Cash flows from financing activities:
Cash proceeds from investments by
others
Including: Cash receipts from capital
contributions from Minority shareholders’ 10,000,000.00 4,500,000.00
equity of subsidiaries
Cash receipts from borrowing 1,996,200,000.00 511,250,000.00
Other cash receipts relating to financing VII.78
activities
Total cash inflows from financing activities 2,517,450,000.00 541,239,800.00
Cash repayments for debts 511,250,000.00
Cash payments for distribution of
dividends or profit and interest expenses
Including: Dividends or profit paid to
minority shareholders of subsidiaries
Other cash payments relating to financing VII.78
activities
Total cash outflows from financing
activities
Net cash flows from financing activities 544,548,901.86 -182,243,777.55
IV. Effect of foreign exchange rate
-274,612.34 -967,800.79
changes on cash and cash equivalents
V. Net increase in cash and cash
equivalents
Add: Cash and cash equivalents at the
beginning of the year
VI. Cash and cash equivalents at the
end of the year
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting
supervisor: Zheng Hui
Statement of Cash Flows, Parent Company
Unit: Yuan (RMB)
Items Notes 2023 2022
I. Cash flows from operating activities
Cash receipts from the sale of goods and the
rendering of services
Receipts of tax and surcharges refunds 6,299,378.62 6,047,760.47
Other cash receipts relating to operating
activities
Total cash inflows from operating activities 10,280,405,398.54 9,398,423,863.57
Cash payments for goods and services 11,352,110,681.81 6,519,217,665.28
Cash payments to and on behalf of
employees
Payments of all types of taxes and
surcharges
Other cash payments relating to operating
activities
Total cash outflows from operating activities 11,956,834,750.02 7,531,129,832.18
Net cash flows from operating activities -1,676,429,351.48 1,867,294,031.39
II. Cash flows from investing activities:
Cash receipts from returns of investments 4,261,278,955.56 407,856,433.66
Cash receipts from returns on investments 1,981,835,143.07 685,878,871.32
Net cash received from disposal of fixed
assets, intangible assets and other 494,489.30 2,116,717.78
long-term assets
Net cash receipts from disposal of
subsidiaries and other business units
Other cash receipts relating to investing
activities
Total cash inflows from investing activities 6,322,008,587.93 1,265,852,022.76
Cash payments to acquire fixed assets,
intangible assets and other long-term assets
Cash payments for investments 3,104,473,596.77 924,392,160.00
Net cash payments for acquisition of
subsidiaries and other business units
Other cash payments relating to other
investing activities
Total cash outflows from investing activities 4,906,156,270.90 1,053,220,514.80
Net cash flows from investing activities 1,415,852,317.03 212,631,507.96
III. Cash flows from financing activities:
Cash proceeds from investments by others 28,909,800.00
Cash receipts from borrowings 1,996,200,000.00
Other cash receipts relating to financing
activities
Total cash inflows from financing activities 1,996,200,000.00 28,909,800.00
Cash repayments for debts
Cash payments for distribution of dividends
or profit and interest expenses
Other cash payments relating to financing
activities
Total cash outflows from financing activities 1,454,988,830.25 210,011,906.26
Net cash flows from financing activities 541,211,169.75 -181,102,106.26
IV. Effect of foreign exchange rate
-81,207.07 -713,369.57
changes on cash and cash equivalents
V. Net increase in cash and cash
equivalents
Add: Cash and cash equivalents at the
beginning of the year
VI. Cash and cash equivalents at the end
of the year
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting
supervisor: Zheng Hui
Consolidated Statement of Changes in Owner’s Equity
Unit: Yuan (RMB)
Owners’ equity attributable to the parent company
Other equity
instruments Total
Reser Non-
Items
Other Spe ves sharehold
Pe Less: controlling
Share Capital compre cial Surplus for Retained Oth ers’
Prefe rpe Treasury Sub-total interests
capital reserves hensive rese Reserves gener earnings ers equity
rred tua Othe stock
income rves al
shar l rs
risks
es bo
nd
I. Balance at end of 574,70
prior year 0,004.0
Add: Changes in
accounting policy
Correction of prior
period errors
Business
combination involving
entities under
common control
Others
II. Balance at the 574,70
beginning 1,977,765, 134,953, 290,784,2 4,012,879,5 6,721,176, 13,145,60 6,734,32
of the year 0
III. Changes for the
year (decrease is 287,22 432,
-214,352,7 346,551, 140,178,2 691,718,01 990,862,1 1,045,75
stated with “-”) 5,003.0 645, 54,888,63
(I) Total
comprehensive 268.34
income
(II) Shareholders’
contributions and -124,99 432, 72,997,22 346,551, 159,104,6 39,657,46 198,762,
reduction in capital 9.00 645, 5.77 973.88 139,020.00 42.45 7.01 109.46
contributions by 32,182.6
shareholders 0
by other equity 432,
instruments holders 654, 432,654,
share-based 70,168,93 70,168,93 70,168,9
payments recognised 1.98 1.98 31.98
in equity
-126,00 2,788,459. 346,551, -343,750,4 39,657,46 -304,093,
(III) Profit Distribution
-1,049,358 -1,049,35
- 140,178,2 -1,189,536, -
,585.51 8,585.51
reserves 06.59 6.59
risks reserves
-1,049,358 -1,049,35
shareholders -1,049,358,
,585.51 8,585.51
(IV) Internal
carry-over of owners’ 287,35 -287,350,0
equity 0,002.0 02.00
capital reserves 287,35 -287,350,0
surplus reserves
surplus reserves
changes in the
defined benefit plan
to retained earnings
comprehensive
income to retained
earnings
(V) Special reserves
the year
year
(VI) Others
IV. Balance at end of 861,92 432,
year 0 369. 639.40 173.88 268.34 03.50 03.69 217.61 4.29 2,461.90
Owners’ equity attributable to the parent company
Other equity Othe
instruments r Sp Rese Non- Total
Items
com eci rves controllin shareho
Less:
Share Pre Per Capital preh al Surplus for Retained Oth g lders’
O Treasury Sub-total
capital ferr pet reserves ensiv res Reserves gene earnings ers interests equity
th stock
ed ual e erv ral
er
sha bon inco es risks
s
res d me
I. Balance at end of 4,979,7
prior year 67,730.
,003.00 6,839.31 001.50 547.11 7,390.92 9.11
Add: Changes in
accounting policy
Correction of prior
period errors
Others
II. Balance at the 4,979,7
beginning of the 67,730.
,003.00 6,839.31 001.50 547.11 7,390.92 9.11
year 03
III. Changes for the 1,754,5
year (decrease is 53,987.
,001.00 76.32 200.00 95. 41 046.33 8,719.06 8.91
stated with “-”) 97
(I) Total 1,872,5
comprehensive 42,828.
income 78
(II) Shareholders’
contributions and
reduction in capital
contributions by
shareholders
contributed by other
equity instruments
holders
share-based 80,660,9 80,660,9 80,660,
payments 07.94 07.94 907.94
recognised in equity
(III) Profit -206,02
Distribution 8,719.1
surplus reserves 95.41 5.41
general risk
reserves
shareholders 01.50 001.50 63 8,719.1
(IV) Internal
carry-over of
,001.00 531.62 0.62 0.62
owners’ equity
capital reserves ,001.00 001.00
surplus reserves
surplus reserves
changes in the
defined benefit plan
to retained earnings
comprehensive
income to retained
earnings
-5,915,53 5,915,53
(V) Special reserves
the year
year
(VI) Others
IV. Balance at end 6,734,3
of year 21,718.
,004.00 5,415.63 200.00 296.91 593.44 6,109.98 08.02
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
Statement of Changes in Owner’s Equity, Parent Company
Unit: Yuan (RMB)
Other equity instruments
Other Specia Total
Items Less:
Capital comprehe l Surplus Retained
Share capital Perpet Treasury shareholders’
Preferred reserves nsive reserv Reserves earnings
ual Others stock equity
shares income es
bond
I. Balance at end of prior 574,700,004.0 2,173,462,800 134,953,200. 290,784,296. 2,142,503,00
year 0 .28 00 91 0.74
Add: Changes in
accounting policy
Correction of prior period
errors
Others
II. Balance at the beginning 574,700,004.0 2,173,462,800 134,953,200. 290,784,296. 2,142,503,00
of the year 0 .28 00 91 0.74
III. Decrease/increase of 287,225,003.0 432,64 -216,558,867. 346,551,973. 585,179,959.
the report year (decrease 0 5,369. 24 88 140,178,206. 21
is stated with “-”) 56 59
(I) Total comprehensive 1,774,577,73 1,774,577,731.31
income 1.31
(II) Shareholders’ 432,64 - 139,020.00 155,228,383.35
contributions and reduction -124,999.00 5,369. 69,120,966.67
in capital 56
shareholders 09
other equity instruments 4,022. 432,654,022.65
holders 65
shares counted to 70,168,931.98 70,168,931.98
shareholders’ equity
-1,087,800.00 139,020.00 -347,626,753.88
(III) Profit Distribution 140,178,206.
reserves 59 .59
shareholders -1,049,358,5 -1,049,358,585.5
(IV) Internal carry-over of 287,350,002.0 -287,350,002.
owners’ equity 0 00
reserves 0 00
reserves
surplus reserves
the defined benefit plan to
retained earnings
comprehensive income to
retained earnings
(V) Special reserves
year
(VI) Others 1,670,168.09 1,670,168.09
IV. Balance at end of year 432,64
Items Year 2022
Other equity instruments Other Specia
Less: Total
Capital compreh l Surplus Retained
Share capital Treasury shareholder
Preferred Perpetu Other reserves ensive reserv Reserves earnings
stock s’ equity
shares al bond s income es
I. Balance at end of prior year 403,660,003. 1,910,845,16 201,830,00 1,547,164,3 4,063,499,5
Add: Changes in accounting policy
Correction of prior period errors
Others
II. Balance at the beginning 403,660,003. 1,910,845,16 201,830,00 1,547,164,3 4,063,499,5
of the year
III. Decrease/increase of the report year 171,040,001. 262,617,639. 134,953,2 88,954,295. 595,338,65 982,997,39
(decrease is stated with “-”) 00 17 00.00 41 7.18 2.76
(I) Total comprehensive income 889,542,95 889,542,95
(II) Shareholders’ contributions and reduction 6,840,000.00 426,817,640. 134,953,2 298,704,44
in capital 17 00.00 0.17
instruments holders
shareholders’ equity 4 94
-120,000.00
(III) Profit Distribution 88,954,295. -294,204,2 -205,250,0
(IV) Internal carry-over of owners’ equity 164,200,001. -164,200,001
plan to retained earnings
retained earnings
(V) Special reserves
(VI) Others
IV. Balance at end of year 574,700,004. 2,173,462,80 134,953,2 290,784,29 2,142,503,0 5,046,496,9
Legal representative: Zhang Jian Financial controller: Zheng Hui Accounting supervisor: Zheng Hui
III. Company Profile
√ Applicable □ Not applicable
Aima Technology Group Co,. LTD. is a joint stock limited company registered in Tianjin,
People's Republic of China. It was established on September 27, 1999. The Company is
headquartered at 5 Aima Road, Jinghai Economic Development Zone, Tianjin.
The Company's principal business includes development, manufacturing and sales of
electric bicycles, electric mopeds and electric motorcycles.
The Company's controlling shareholder is Mr. Zhang Jian, a natural person.
IV. Basis for preparation of financial statements
These financial statements have been prepared in accordance with Accounting Standards
for Business Enterprises - Basic Standard and specific accounting standards,
implementation guidance, interpretations and other relevant provisions issued
subsequently by the Ministry of Finance (the “MOF”) (collectively referred to as “ASBEs”).
In addition, the financial statements also disclose relevant financial information in
accordance with the Compilation Rules for Information Disclosure by Companies Offering
Securities to the Public No. 15- General Provisions on Financial Reporting.
√ Applicable □ Not applicable
The financial statements of the Company have been prepared on going concern basis.
The financial statements have been prepared under the historical cost convention, except
for certain financial instruments. If the assets are impaired, corresponding provisions for
impairment shall be made according to relevant requirements.
V. Significant accounting policies and estimates
Presentation on specific accounting policies and accounting estimates
√ Applicable □ Not applicable
The Company has formulated specific accounting policies and accounting estimates
based on the practical production and operation characteristics, which are mainly
reflected in the bad debts of receivables, inventory valuation methods, provision for
write-down of inventories, depreciation and amortization of investment properties,
depreciation of fixed assets, amortization of intangible assets, amortization of long-term
prepaid expenses, recognition and measurement of revenue, etc.
The Company declares that the financial statements prepared by the Company comply
with requirements of the enterprise accounting standards, truly and completely reflect the
concerned information, including the Company’s financial position, results of their
operations, changes in shareholders' equity, cash flow, etc. of the year then ended.
The accounting year of the Group is a calendar year, i.e., from 1 January to 31 December
of each year.
√ Applicable □ Not applicable
The Company takes 12 months as a business cycle.
The Company’s functional currency is Renminbi (“RMB”).
√ Applicable □ Not applicable
Items Materiality criteria
Significant construction in progress Ending balance exceeds 5 ‰ of the
company's total assets
Significant other payables aged over 1 year Individual other payables greater than
RMB100 million
Significant cash flows from investing Individual cash flows greater than RMB500
activities million
and not under the common control
√ Applicable □ Not applicable
Business combinations are classified into business combinations involving entities under
common control and business combinations not involving entities under common control.
(1) Business combinations involving entities under common control
A business combination involving entities under common control is a business
combination in which all of the combining entities are ultimately controlled by the same
party or parties both before and after the combination, and the control is not temporary.
The assets and liabilities (including goodwill arising from the ultimate controlling party’s
acquisition of the entity being absorbed) that are obtained by the absorbing entity in a
business combination involving entities under common control shall be measured on the
basis of their carrying amounts in the financial statements of the ultimate controlling party
at the combination date. The difference between the carrying amount of the net assets
obtained and the carrying amount of the consideration paid for the combination or the
aggregate face value of shares issued as consideration shall be adjusted to capital
premium under capital reserves. If the capital premium is not sufficient to absorb the
difference, any excess shall be adjusted against retained earnings.
(2) Business combinations not involving entities under common control
A business combination not involving entities under common control is a business
combination in which all of the combining entities are not ultimately controlled by the same
party or parties both before and after the combination.
The acquirer shall measure the acquiree’s identifiable assets, liabilities and contingent
liabilities acquired in the business combination at their fair values on the acquisition date.
Goodwill is initially recognised and measured at the difference between the combination
cost and the acquiree's share of the fair value of the acquiree's identifiable net assets
acquired in the combination. After initial recognition, goodwill is measured at cost less any
accumulated impairment losses. If the combination cost is less than any fair value of the
Group’s previously held equity interest in the acquiree is lower than the Group’s interest in
the fair value of the acquiree’s net identifiable assets, the Group reassesses the
measurement of the fair value of the acquiree’s identifiable assets, liabilities and
contingent liabilities. If after that reassessment, the combination cost is still lower than the
Group’s interest in the fair value of the acquiree’s net identifiable assets, the Group
recognises the remaining difference in profit or loss.
statements
√ Applicable □ Not applicable
The scope of the consolidated financial statements, which include the financial statements
of the Company and all of its subsidiaries, is determined on the basis of control. A
subsidiary is an entity that is controlled by the Company (such as an enterprise, a deemed
separate entity, or a structured entity controlled by the Company). An investor can control
an investee if and only if the investor has three elements: the investor has power over the
investee; variable returns due to participation in the investee's activities; ability to use its
power over the investee to influence the amount of its return.
Where the accounting policies or accounting periods adopted by a subsidiary are
inconsistent with those of the Company, necessary adjustments shall be made to the
financial statements of the subsidiary in accordance with the accounting policies and
accounting periods of the Company when preparing the consolidated financial statements.
All intra-group assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Group are eliminated in full on consolidation.
Where the loss for the current period attributable to Minority shareholders’ equity of a
subsidiary exceeds the Minority shareholders’ equity of the opening balance of equity of
the subsidiary, the excess shall still be allocated against the Minority shareholders’ equity.
For subsidiaries acquired through business combinations not involving entities under
common control, the financial performance and cash flows of the acquiree shall be
consolidated from the date on which the Group obtains control, and continue to be
consolidated until the date such control ceases. While preparing the consolidated financial
statements, the Group shall adjust the subsidiary’s financial statements, on the basis of
the fair values of the identifiable assets, liabilities and contingent liabilities recognised on
the acquisition date.
For subsidiaries acquired through business combinations involving entities under common
control, the financial performance and cash flows of the entity being absorbed shall be
consolidated from the beginning of the period in which the combination occurs. While
preparing the comparative financial statements, adjustments are made to related items in
the financial statements for the prior period as if the reporting entity after the combination
has been in existence since the date the ultimate controlling party first obtained the
control.
The Group reassesses whether or not it controls an investee if any change in facts and
circumstances indicates that there are changes to one or more of the three elements of
control.
A change in the Minority shareholders’ equity, without a loss of control, is accounted for as
an equity transaction.
□ Applicable √ Not applicable
Cash comprises the Group’s cash on hand and bank deposits that can be readily
withdrawn on demand. Cash equivalents are short-term, highly liquid investments that are
readily convertible into known amounts of cash, and are subject to an insignificant risk of
changes in value.
√ Applicable □ Not applicable
The Group translates foreign currency transactions into its functional currency.
Foreign currency transactions are initially recorded, on initial recognition in the functional
currency using average exchange rates for the period in which the transactions occur.
However, the capital invested by investors in foreign currencies is translated at the spot
exchange rate on the transaction date. Monetary items denominated in foreign currencies
are translated at the spot exchange rates ruling at the balance sheet date. Differences
arising on settlement or translation of monetary items are recognised in profit or loss, with
the exception of those relating to foreign currency borrowings specifically for the
construction and acquisition of qualifying assets, which are capitalised in accordance with
the guidance for capitalisation of borrowing costs. Non-monetary items that are measured
in terms of historical cost in a foreign currency are translated using the exchange rates of
the initial recognition, and the amount denominated in the functional currency is not
changed. Non-monetary items measured at fair value in a foreign currency are translated
using the exchange rates at the date when the fair value was measured. The resulting
exchange differences are recognised in profit or loss or other comprehensive income
depending on the nature of the non-monetary items.
For foreign operations, the Group translates their functional currency amounts into RMB
when preparing the financial statements as follows: as at the balance sheet date, the
assets and liabilities are translated using the spot exchange rate at the balance sheet date,
and equity items other than “unappropriated profit” are translated at the spot exchange
rates at the dates of transactions; revenue and expense items in profit or loss are
translated using the average exchange rates for the period during which the transactions
occur (unless this is inappropriate due to exchange rate fluctuations, in which case the
spot exchange rates prevailing on the dates of the transactions are used). The resulting
exchange differences are recognised in other comprehensive income. On disposal of a
foreign operation, the component of other comprehensive income relating to that
particular foreign operation is recognised in profit or loss. If the disposal only involves a
portion of a particular foreign operation, the component of other comprehensive income
relating to that particular foreign operation is recognised in profit or loss on a pro-rata
basis.
Foreign currency cash flows and the cash flows of foreign subsidiaries are translated
using the average exchange rates for the period during which the cash flows occur
(unless this is inappropriate due to exchange rate fluctuations, in which case the spot
exchange rates prevailing on the dates of cash flows are used). The effect of exchange
rate changes on cash is separately presented as an adjustment item in the statement of
cash flows.
√Applicable ?Not applicable
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
(1) Recognition and derecognition
The Group recognises a financial asset or a financial liability when it becomes a party to
the contractual provisions of a financial instrument.
A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is primarily derecognised (i.e., removed from the Group’s
consolidated balance sheet) when:
① the rights to receive cash flows from the financial asset have expired;
② the Group has transferred its rights to receive cash flows from the financial asset, or
has assumed an obligation to pay the received cash flows in full without material delay to
a third party under a “pass-through” arrangement; and either has transferred substantially
all the risks and rewards of the financial asset, or has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the
financial asset.
A financial liability is derecognised when the obligation under the liability is discharged or
cancelled, or expires. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of
the original liability and a recognition of a new liability, and the difference between the
respective carrying amounts is recognised in profit or loss.
Regular way purchases and sales of financial assets are recognised and derecognised
using trade date accounting. Regular way purchases or sales are purchases or sales of
financial assets that require delivery within the period generally established by regulation
or convention in the marketplace in accordance with a contract. The trade date is the date
that the Group committed to purchase or sell a financial asset.
(2) Classification and measurement of financial assets
The classification of financial assets at initial recognition depends on the financial asset’s
contractual cash flow characteristics and the Group’s business model for managing them:
financial assets at amortised cost, financial assets at fair value through other
comprehensive income and financial assets at fair value through profit or loss.
Financial assets are measured at fair value on initial recognition, but accounts receivable
or notes receivable arising from the sale of goods or rendering of services that do not
contain significant financing components or for which the Group has applied the practical
expedient of not adjusting the effect of a significant financing component due within one
year, are initially measured at the transaction price.
For financial assets at fair value through profit or loss, relevant transaction costs are
directly recognised in profit or loss, and transaction costs relating to other financial assets
are included in the initial recognition amounts.
The subsequent measurement of financial assets depends on their classification as
follows:
① Debt investments measured at amortised cost
The Group measures financial assets at amortised cost if both of the following conditions
are met: the financial asset is held within a business model with the objective to hold
financial assets in order to collect contractual cash flows; the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding. Financial assets at amortised
cost are subsequently measured using the effective interest method and are subject to
impairment. Gains and losses are recognised in profit or loss when the asset is
derecognised, modified or impaired. Such financial assets mainly include currency funds,
notes receivable, accounts receivable and other receivables.
② Debt investments at fair value through other comprehensive income
The Group measures debt investments at fair value through other comprehensive income
if both of the following conditions are met: the financial asset is held within a business
model with the objective of both holding to collect contractual cash flows and selling; the
contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding. Interest
income is recognised using the effective interest method. The interest income, impairment
losses and foreign exchange revaluation are recognised in profit or loss. The remaining
fair value changes are recognised in other comprehensive income. Upon derecognition,
the cumulative fair value change recognised in other comprehensive income is recycled to
profit or loss.
③ Financial assets at fair value through profit or loss
The financial assets other than the above financial assets measured at amortised cost
and financial assets at fair value through other comprehensive income are classified as
financial assets at fair value through profit or loss. Such financial assets are subsequently
measured at fair value with net changes in fair value recognised in profit or loss.
(3) Classification and measurement of financial liabilities
The financial liabilities of the Company are, on initial recognition, classified as: financial
liabilities measured at amortised cost. Transaction costs relating to financial liabilities
measured at amortised cost are included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on their classification:
Financial liabilities measured at amortised cost
Such financial liabilities are subsequently measured at amortised cost using the effective
interest method.
(4) Impairment of financial instruments
Based on the expected credit losses (“ECLs”), the Group recognises an allowance for
ECLs for the financial assets measured at amortised cost, debt investments at fair value
through other comprehensive income.
For accounts receivable and contract assets that do not contain a significant financing
component, the Group applies the simplified approach to recognise a loss allowance
based on lifetime ECLs.
Except for financial assets which apply the simplified approach as mentioned above, other
financial assets, the Group assesses whether the credit risk has increased significantly
since initial recognition at each balance sheet date. If the credit risk has not increased
significantly since initial recognition (stage 1), the loss allowance is measured at an
amount equal to 12-month ECLs by the Group and the interest income is calculated
according to the carrying amount and the effective interest rate; if the credit risk has
increased significantly since initial recognition but are not credit-impaired (stage 2), the
loss allowance is measured at an amount equal to lifetime ECLs by the Group and the
interest income is calculated according to the carrying amount and the effective interest
rate; if such financial assets are credit-impaired after initial recognition (stage 3), the loss
allowance is measured at an amount equal to lifetime ECLs by the Group and the interest
income is calculated according to the amortised cost and the effective interest rate. For
financial instruments with lower credit risk on the balance sheet date, the Company
assumes that its credit risk has not increased significantly since the initial recognition.
The Group assesses the expected credit losses of financial instruments based on
individual items and portfolios. The Group has considered the credit risk characteristics of
different customers, based on common risk characteristics and assessed the expected
credit losses of receivables based on the age combination.
The Group considers reasonable and supportable information about past events, current
conditions and forecasts of future economic conditions when assessing expected credit
losses.
When the Group no longer reasonably expects to collect all or part of the contractual cash
flows of the financial asset, the Group directly writes down the carrying amount of the
financial asset.
(5) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the
balance sheet if there is a currently enforceable legal right to offset the recognised
amounts; and there is an intention to settle on a net basis, or to realize the assets and
settle the liabilities simultaneously.
(6) Convertible bonds
When the Group issues convertible bonds, it determines whether they contain both liability
and equity components according to the terms. If the issued convertible bonds contain
both liabilities and equity components, the liabilities and equity components shall be
separated and treated separately at initial recognition. At the time of separation, the fair
value of the liability component is first measured and used as its initial recognition amount,
and then the initial recognition amount of the equity component is determined according to
the amount after deducting the initial recognition amount of the liability component from
the issue price of the convertible bond as a whole. Transaction costs are allocated
between the liability component and the equity component at their respective relative fair
values. The liability component is disclosed as a liability and subsequently measured at
amortised cost until cancelled, converted or redeemed. The equity component is
disclosed as equity and is not subsequently measured. Convertible bonds issued only
include liability components and embedded derivatives, that is, if the share conversion
right has the characteristics of embedded derivatives, it will be separated from the
convertible bonds as a whole, treated separately as a derivative financial instrument, and
initially recognized at its fair value. The excess of the issue price over initial recognition as
a derivative financial instrument is recognised as a debt instrument. Transaction costs are
allocated on the basis of the issue price of debt instruments and derivative financial
instruments on initial recognition. Transaction costs related to debt instruments are
recognised as liabilities and transaction costs related to derivative financial instruments
are recognised in profit or loss for the period.
(7) Transfer of Financial Assets
A financial asset is derecognised when the Group has transferred substantially all the
risks and rewards of the asset to the transferee. A financial asset is not derecognised
when the Group retains substantially all the risks and rewards of the financial asset.
When the Group has neither transferred nor retained substantially all the risks and
rewards of the financial asset, it either (i) derecognises the financial asset and recognises
the assets and liabilities created in the transfer when it has not retained control of the
asset; or (ii) continues to recognise the transferred asset to the extent of the Group's
continuing involvement, in which case, the Group also recognises an associated liability.
Continuing involvement that takes the form of a guarantee over the transferred financial
asset is measured at the lower of the original carrying amount of the financial asset and
the guarantee amount. The guarantee amount is the maximum amount of consideration
that the Group could be required to repay.
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Method for determination and accounting treatment of the expected credit loss of
accounts receivables
√ Applicable □ Not applicable
For details, please refer to “11. Financial Instruments" and "V. 39. Other Important
Accounting Policies and Accounting Estimates" of "V. Significant Accounting Policies and
Accounting Estimates" in "Section 10. Financial Report".
Combination category and determination basis of provision for bad debts based on
credit risk characteristics
□ Applicable √ Not applicable
Aging calculation method based on the combination of credit risk characteristics
recognized by aging
□ Applicable √ Not applicable
Judgment criteria for determining individual provision for bad debts
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Method for determination and accounting treatment of the expected credit loss of
receivables financing
√ Applicable □ Not applicable
For details, please refer to “11. Financial Instruments" and "V. 39. Other Important
Accounting Policies and Accounting Estimates" of "V. Significant Accounting Policies and
Accounting Estimates" in "Section 10. Financial Report".
Combination category and determination basis of provision for bad debts based on
credit risk characteristics
□ Applicable √ Not applicable
Aging calculation method based on the combination of credit risk characteristics
recognized by aging
□ Applicable √ Not applicable
Judgment criteria for determining individual provision for bad debts
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Method for determination and accounting treatment of the expected credit loss of
other receivables
√ Applicable □ Not applicable
For details, please refer to “11. Financial Instruments" and "V. 39. Other Important
Accounting Policies and Accounting Estimates" of "V. Significant Accounting Policies and
Accounting Estimates" in "Section 10. Financial Report".
Combination category and determination basis of provision for bad debts based on
credit risk characteristics
□ Applicable √ Not applicable
Aging calculation method based on the combination of credit risk characteristics
recognized by aging
□ Applicable √ Not applicable
Judgment criteria for determining individual provision for bad debts
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Inventory category, delivery valuation method, inventory system, amortization method of
low value consumables and packaging materials.
√ Applicable □ Not applicable
The Company’s inventories consist of raw materials, work-in-process and finished goods.
Inventories are initially carried at cost. Cost of inventories comprises all costs of purchase,
costs of conversion and other costs. For inventories delivered, the actual costs are
determined on the weighted average basis. Turnover materials include low value
consumables and packing materials, which are on the immediate write-off basis.
The Company adopts the perpetual inventory system.
Recognition criteria and accrual method of write-down
√ Applicable □ Not applicable
At the balance sheet date, inventories are stated at the lower of cost and net realizable
value. The inventories are written down below cost to net realizable value and the
write-down is recognised in profit or loss if the cost is higher than the net realizable value.
Net realizable value is the estimated selling price in the ordinary course of business less
the estimated costs of completion and the estimated costs necessary to make the sale
and relevant taxes.
Combination category and determination basis for provision for write-down based
on combination, and determination basis for net realizable value of different
categories of inventories
□ Applicable √ Not applicable
The calculation method and determination basis of the net realizable value of each
stock age combination for recognizing the net realizable value of inventory based
on the stock age
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
Recognition criteria and accounting treatment methods for non-current assets held
for sale or disposal groups
□ Applicable √ Not applicable
Recognition criteria and disclosure method for discontinued operations
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Long-term equity investments include equity investments in subsidiaries, joint ventures
and associates.
A long-term equity investment is initially measured at its initial investment cost on
acquisition. The initial cost of a long-term equity investment acquired through a business
combination involving enterprises under common control is the Company’s share of the
carrying amount of the subsidiary’s equity in the consolidated financial statements of the
ultimate controlling party at the combination date. The difference between the initial
investment cost and the carrying amounts of the consideration given is adjusted to the
capital premium in the capital reserve, with any excess adjusted to retained earnings. For
a long-term equity investment acquired through a business combination not under
common control, the combination cost shall be recognised as the initial investment cost (if
a business combination not under common control is achieved step by step through
multiple transactions, the sum of the book value of the equity investment held by the
acquiree before the acquisition date and the newly increased investment cost on the
acquisition date shall be taken as the initial investment cost). For a long-term equity
investment other than a long-term equity investment formed by a business combination,
the initial investment cost shall be determined according to the following methods: for a
long-term equity investment obtained by paying cash, the actual purchase price paid and
the expenses, taxes and other necessary expenses directly related to the acquisition of
the long-term equity investment shall be regarded as the initial investment cost; For those
obtained by issuing equity securities, the initial investment cost shall be the fair value of
the equity securities issued. For a long-term equity investment obtained through a
business combination not involving enterprises under common control, the initial cost
comprises the aggregate of the fair value of assets transferred, liabilities incurred or
assumed, and equity securities issued by the Company, in exchange for control of the
acquiree. For a long-term equity investment obtained through a business combination not
involving enterprises under common control and achieved in stages, the initial cost
comprises the carrying value of the previously-held equity investment in the acquiree
immediately before the acquisition date, and the additional investment cost at the
acquisition date. For long-term equity investments obtained by means other than business
combination, the initial investment cost is determined according to the following method:
for those obtained by paying cash, the actual purchase price paid and the expenses,
taxes and other necessary costs directly related to the acquisition of long-term equity
investments shall be used. Expenses are taken as the initial investment cost. For those
obtained by issuing equity securities, the fair value of the issued equity securities is taken
as the initial investment cost.
For a long-term equity investment where the Company can exercise control over the
investee, the long-term investment is accounted for using the cost method in the
Company’s individual financial statements. Control is achieved when the Group is
exposed, or has rights, to variable returns from its involvement with the investee and has
the ability to affect those returns through its power over the investee.
Under the cost method, the long-term equity investment is measured at its initial
investment cost. When additional investment is made or the investment is recouped, the
cost of long-term equity investment is adjusted accordingly. Cash dividends or profit
distributions declared by the investee are recognised as investment income in profit or
loss.
The equity method is adopted when the Group has joint control, or exercises significant
influence over the investee. Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the relevant activities require the
unanimous consent of the parties sharing control. Significant influence is the power to
participate in the financial and operating policy decisions of the investee, but is not control
or joint control with other parties over those policies.
Under the equity method, where the initial investment cost of a long-term equity
investment exceeds the Group’s interest in the fair value of the investee’s identifiable net
assets at the acquisition date, no adjustment is made to the initial investment cost. Where
the initial investment cost is less than the Group’s interest in the fair values of the
investee’s identifiable net assets at the acquisition date, the difference is charged to profit
or loss, and the cost of the long-term equity investment is adjusted accordingly.
Under the equity method, after it has acquired a long-term equity investment, the Group
recognises its share of the investee’s profit or loss, as well as its share of the investee’s
other comprehensive income, as investment income or loss and other comprehensive
income, and adjusts the carrying amount of the investment accordingly. The Group
recognises its share of the investee’s profit or loss after making appropriate adjustments
to the investee’s profit or loss based on the fair value of the investee’s identifiable assets
at the acquisition date, using the Group’s accounting policies and periods. Unrealised
profits and losses from transactions with its joint ventures and associates are eliminated to
the extent of the Group’s investments in the associates or joint ventures (except for assets
that constitute a business) (However, any loss arising from such transactions which are
attributable to an impairment loss shall be recognised at its entirety). The carrying amount
of the investment is reduced based on the Group’s share of any profit distributions or cash
dividends declared by the investee. The Group’s share of losses of the investee is
recognised to the extent that the carrying amount of the investment together with any
long-term interests that in substance form part of its net investment in the investee is
reduced to zero, except that the Group has the obligations to assume further losses. The
Group’s share of the investee’s equity changes, other than those arising from the
investee’s profit or loss, other comprehensive income or profit distribution, is recognised in
the Group’s equity, and the carrying amount of the long-term equity investment is adjusted
accordingly.
(1) If the cost measurement model is used：
Depreciation or amortization method
An investment property is measured initially at cost. If the economic benefits relating to an
investment property will probably flow in and the cost can be reliably measured,
subsequent costs incurred for the property are included in the cost of the investment
property. Otherwise, subsequent costs are recognised in profit or loss as incurred.
The Group uses the cost model for the subsequent measurement of its investment
properties. For the depreciation method of houses and buildings in investment real estate,
please refer to the relevant content of “Section 10 V. 21 Fixed Assets”, and for the
amortization method of land use rights in investment real estate, please refer to “Section
(1) Recognition of fixed assets
√ Applicable □ Not applicable
A fixed asset is recognised only when the economic benefits associated with the asset will
probably flow into the Group and the cost of the asset can be measured reliably.
Subsequent expenditures incurred for a fixed asset that meets the recognition criteria
shall be included in the cost of the fixed asset, and the carrying amount of the component
of the fixed asset that is replaced shall be derecognised. Otherwise, such expenditures
are recognised in profit or loss as incurred.
The fixed assets are initially measured at the cost. The cost of a purchased fixed asset
comprises the purchase price, relevant taxes and any directly attributable expenditure for
bringing the asset to working condition for its intended use.
(2) Depreciation methods
√ Applicable □ Not applicable
Depreciation Annual
Categories Useful life (year) Residual rate
method depreciation rate
Straight-line
Buildings 20 5% 4.75%
method
Machinery and Straight-line
equipment method
Office Straight-line
equipment method
Straight-line
Vehicles 4 5% 23.75%
method
Electronic Straight-line
equipment method
Production Straight-line
tools method
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least at each year end, and make adjustments if
necessary.
√ Applicable □ Not applicable
The cost of construction in progress is determined according to the actual expenditures
incurred for the construction, including all necessary construction expenditures incurred
during the construction period and other relevant expenditures.
When the asset is ready for its intended use, the criteria for an item of construction in
progress is transferred to fixed assets、intangible assets and long-term deferred expenses
are as follows:
Items Criteria for transfer to fixed assets
The earlier of actual start of use/completion
Buildings
of acceptance
The earlier of actual start of use/completion
Machinery and equipment
of installation and acceptance
√ Applicable □ Not applicable
The borrowing costs that are directly attributable to the acquisition, construction or
production of a qualifying asset are capitalised. The amounts of other borrowing costs
incurred are recognised as an expense in the period in which they are incurred.
Borrowing costs are capitalised when capital expenditure and borrowing costs have been
incurred and the acquisition, construction or production activities necessary to bring the
asset to its intended use or sale have commenced.
Capitalisation of borrowing costs ceases when the qualifying asset being acquired,
constructed or produced gets ready for its intended use or sale. Any borrowing costs
subsequently incurred are recognised in profit or loss.
During the capitalisation period, the amount of interest eligible for capitalisation for each
accounting period shall be determined as follows: where funds are borrowed specifically
for the purpose of obtaining a qualifying asset, the amount of interest eligible for
capitalisation is the actual interest costs incurred on that borrowing for the period less any
bank interest earned from depositing the borrowed funds before being used on the asset
or any investment income on the temporary investment of those funds; or where funds are
borrowed generally for the purpose of obtaining a qualifying asset, the amount of interest
eligible for capitalisation is determined by applying a weighted average interest rate on the
general borrowings to the weighted average of the excess of the cumulative expenditures
on the asset over the expenditures on the asset funded by the specific borrowings.
Capitalisation of borrowing costs is suspended during periods in which the acquisition,
construction or production of a qualifying asset is suspended abnormally by activities
other than those necessary to get the asset ready for its intended use or sale, when the
suspension is for a continuous period of more than 3 months. Borrowing costs incurred
during these periods are recognised as an expense in profit or loss until the acquisition,
construction or production is resumed.
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(1) Useful life, determination basis, estimation, amortization method or review
procedures
√ Applicable □ Not applicable
Intangible assets are amortised on a straight-line basis over their useful lives as follows:
Items Useful Life Determination basis
Land use rights 50 years The shorter of the term
/expected useful life of the
land use right
Software 5-10 years The shorter of the servi
ce life /expected useful
life of software
Trademarks 5-10 years The shorter of validity
period/expected useful
life of trademarks
(2) Collection scope and relevant accounting treatment methods of research and
development expenditure
√ Applicable □ Not applicable
The Group classifies the expenditures on an internal research and development project
into expenditure on the research phase and expenditure on the development phase.
Expenditure on the research phase is recognised in profit or loss as incurred. Expenditure
on the development phase is capitalised only when the Group can demonstrate all of the
following: (i) the technical feasibility of completing the intangible asset so that it will be
available for use or sale; (ii) the intention to complete the intangible asset and use or sell it;
(iii) how the intangible asset will generate probable future economic benefits (among other
things, the Group can demonstrate the existence of a market for the output of the
intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness
of the intangible asset); (iv) the availability of adequate technical, financial and other
resources to complete the development and the ability to use or sell the intangible asset;
and (v) the ability to measure reliably the expenditure attributable to the intangible asset
during the development phase. Expenditure on the development phase which does not
meet these above criteria is recognised in profit or loss when incurred.
√ Applicable □ Not applicable
The Group determines the impairment of assets other than impairment of inventories,
deferred income tax and financial assets, using the following methods: the Group
assesses at the balance sheet date whether there is any indication that an asset may be
impaired. If any indication exists that an asset may be impaired, the Group estimates the
recoverable amount of the asset and performs impairment testing. Goodwill arising from a
business combination and an intangible asset with an indefinite useful life are tested for
impairment at least at each year end, irrespective of whether there is any indication that
the asset may be impaired. Intangible assets that have not been ready for their intended
use are tested for impairment each year.
The recoverable amount of an asset is the higher of its fair value less costs to sell and the
present value of the future cash flows expected to be derived from the asset. The Group
estimates the recoverable amount on an individual basis unless it is not possible to
estimate the recoverable amount of the individual asset, in which case the recoverable
amount is determined for the asset group to which the asset belongs. Identification of an
asset group is based on whether major cash inflows generated by the asset group are
largely independent of the cash inflows from other assets or asset groups.
When the recoverable amount of an asset or asset group is less than its carrying amount,
the carrying amount is reduced to the recoverable amount by the Group. The reduction in
the carrying amount is treated as an impairment loss and recognised in profit or loss. A
provision for impairment loss of the asset is recognised accordingly.
Once the above impairment loss is recognised, it cannot be reversed in subsequent
accounting periods.
√ Applicable □ Not applicable
Long-term expenses to be apportioned are amortized using the straight-line method, and
the amortization period is as follows:
Items Amortization term
Building decoration 36 months
Leasehold Improvement 36 months
Others 24 to 60 months
√ Applicable □ Not applicable
The Company presents contract liabilities in the balance sheet based on the relationship
between the performance of the contract obligations and the payment by the customer.
A contractual liability is an obligation to transfer goods or service to a customer for
consideration received or receivable from the customer, such as money that a business
has received before transferring the promised goods or service.
Employee benefits refer to all forms of consideration or compensation other than
share-based payments given by the Group in exchange for services rendered by
employees or for termination of employment. Employee benefits include short-term
employee benefits, post-employment benefits, termination benefits and other long-term
employee benefits.
(1) Accounting treatment of short-term salaries
√ Applicable □ Not applicable
The Company recognizes the actual short-term remuneration as a liability during the
accounting period when employees provide services to the Group, and stated in the profit
or loss or the cost of related assets.
(2) Accounting treatment of post-employment benefits
√ Applicable □ Not applicable
The employees of the Group participate in a pension scheme and unemployment
insurance managed by the local government, the corresponding expenses shall be
included in the cost of related assets or profit or loss.
(3) Dismission benefits
□ Applicable √ Not applicable
(4) Other long term employees' benefits
□ Applicable √ Not applicable
√ Applicable □ Not applicable
An obligation related to a contingency shall be recognised by the Group as a provision
when the obligation is a present obligation of the Group, and it is probable that an outflow
of economic benefits from the Group will be required to settle the obligation. Additionally, a
reliable estimate can be made of the amount of the obligation.
A provision is initially measured at the best estimate of the expenditure required to settle
the related present obligation, taking into account factors pertaining to a contingency such
as the risks, uncertainties and time value of money as a whole.
√ Applicable □ Not applicable
A share-based payment is classified as either an equity-settled share-based payment or a
cash-settled share-based payment. An equity-settled share-based payment is a
transaction in which the Group receives services and uses shares or other equity
instruments as consideration for settlement.
An equity-settled share-based payment in exchange for services received from
employees is measured at the fair value of the equity instruments granted to the
employees. If such equity-settled share-based payment could vest immediately, related
costs or expenses at an amount equal to the fair value on the grant date are recognised,
with a corresponding increase in capital reserves; if such equity-settled share-based
payment could not vest until the completion of services for a vesting period, or until the
achievement of a specified performance condition, the Group at each balance sheet date
during the vesting period recognises the services received for the current period as
related costs and expenses, with a corresponding increase in capital reserves, at an
amount equal to the fair value of the equity instruments at the grant date, based on the
best estimate of the number of equity instruments expected to vest. The fair value is
determined using the market price, please refer to "Section 10 XV".
Where the terms of an equity-settled share-based award are modified, as a minimum an
expense is recognised as if the terms had not been modified. In addition, an expense is
recognised for any modification that increases the total fair value of the share-based
payments, or is otherwise beneficial to the employee as measured at the date of
modification.
Where an equity-settled share-based award is cancelled, it is treated as if it had vested on
the date of cancellation, and any expense not yet recognised for the award is recognised
immediately. This includes any award where non-vesting conditions within the control of
either the Group or the employee are not met. However, if a new award is substituted for
the cancelled award, and is designated as a replacement on the date that it is granted, the
cancelled and new awards are treated as if they were a modification of the original award.
□ Applicable √ Not applicable
(1) Accounting policies used in revenue recognition and measurement by types of
business
√ Applicable □ Not applicable
Revenue from contracts with customers is recognised when the Group has fulfilled its
performance obligations in the contracts, that is, when the customer obtains control of
relevant goods or services. Control of relevant goods or services refers to the ability to
direct the use of the goods, or the provision of the services, and obtain substantially all of
the remaining benefits from the goods or services.
① Contracts for the sale of goods
When the Group delivers goods such as two-wheeled electric vehicles to customers,
revenue is generally recognized at a point of time based on the following indicators, which
include: the time of goods leave the factory for non-export sales, the time of goods are
loaded on board for export sales, a present right to payment for goods, the transfer of
significant risks and rewards of ownership of goods, the transfer of legal title to goods, the
transfer of physical possession of goods, the customer's acceptance of goods, the time of
customer sign-off if the Group is responsible for transportation.
The amount of consideration to which the Group expects to be entitled as a result of the
transfer of goods to a customer is determined as the transaction price in accordance with
the terms of the contract and in combination with past business practices. Some contracts
of the Group stipulate that when customers purchase more than a certain quantity of
goods, they can enjoy a certain discount, which directly offsets the amount payable by
customers when they purchase goods in the future. The Group makes the best estimate
of the discount based on the expected value or the most likely amount, and the
transaction price after estimating the discount is included in the transaction price to the
extent that the transaction price after estimating the discount does not exceed the amount
that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur when the uncertainty associated with the variable consideration
is subsequently resolved, and reestimates it at each balance sheet date.
For sales with a right of return, the Group recognises the revenue in the amount of
consideration to which the Group expects to be entitled in exchange for transferring
control of the goods to the customer, and recognises the amount expected to be refunded
as a result of the sales return as a refund liability. At the same time, an asset recognised
for an entity’s right to recover goods from a customer on settling a refund liability is
measured by reference to the carrying amount of the goods less any expected costs to
recover the goods (including potential decreases in the value of the returned goods), that
is, right-of-return assets, and recognised cost of sales based on the carrying amount of
the transferred goods at the time of transfer of the goods less the net amount of the asset
cost above. At each balance sheet date, the Group re-estimates the future sales return
and remeasures the assets and liabilities above.
The Group provides a warranty in connection with the sale of a good in accordance with
the contract and the relevant laws and regulations, etc. For the purpose of an
assurance-type warranty that provides the customer the assurance that the good
complies with agreed-upon specifications, please refer to “Section 10 V.31”.
② Contracts for the rendering of services
The Group guarantees its performance obligations by providing after-sales service to
customers. Because the customer simultaneously receives and consumes the benefits
provided by the Group's performance as the Group performs, the revenue is recognised
over time only if the Group can reasonably measure its progress towards the complete
satisfaction of the performance obligation. The Company uses the straight-line method
and determines the progress of the services rendered on the basis of the time elapsed. If
the progress towards the complete satisfaction of the performance obligation cannot be
reasonably measured, but the Group expects to recover the costs incurred in satisfying
the performance obligation, the revenue is recognised only to the extent of the costs
incurred until such time that the Group can reasonably measure the progress towards the
complete satisfaction of the performance obligation.
The amount of consideration to which the Group expects to be entitled as a result of the
transfer of services to a customer is determined as the transaction price in accordance
with the terms of the contract and in combination with past business practices. The Group
accounts for the consideration payable to a customer as a reduction of the transaction
price, and recognises the reduction of revenue when (or as) the later of the recognition of
relevant revenue and the payment (or promised payment) of the consideration to a
customer, unless the payment to the customer is in exchange for a distinct good or service
that the customer transfers to the Group.
(2) Different revenue recognition and measurement methods caused by the
adoption of different business models for similar businesses
□ Applicable √ Not applicable
√ Applicable □ Not applicable
The Group’s contract cost assets include the costs to obtain and fulfil a contract and are
classified as inventories, other current assets and other non-current assets by liquidity.
The Group recognises as an asset the incremental costs of obtaining a contract with a
customer if the Group expects to recover those costs, unless the amortisation period of
the asset is one year or less.
Other than the costs which are capitalised as inventories, fixed assets and intangible
assets, etc., costs incurred to fulfil a contract with a customer are capitalised as an asset if
all of the following criteria are met:
(1) the costs relate directly to a contract or to an anticipated contract, including direct
labor, direct materials, overheads (or similar expenses), costs that are explicitly
chargeable to the customer and other costs that are incurred only because an entity
entered into the contract;
(2) the costs generate or enhance resources of the Group that will be used in satisfying
performance obligations in the future; and
(3) the costs are expected to be recovered.
The contract cost asset is amortised and charged to profit or loss on a systematic basis
that is consistent with the pattern of the revenue to which the asset related is recognised.
The Group accrues provisions for impairment and recognises impairment losses to the
extent that the carrying amount of a contract cost asset exceeds:
(1) the remaining amount of consideration that the entity expects to receive in exchange
for the goods or services to which the asset relates; less
(2) the costs that are expected to be incurred to transfer those related goods or services.
√ Applicable □ Not applicable
Government grants are recognised when all attaching conditions will be complied with,
and the grants will be received. If a government grant is in the form of a transfer of a
monetary asset, it is measured at the amount received or receivable.
Asset-related government grants are recognised when the government document
designates that the government grants are used for constructing or forming long-term
assets. If the government document is inexplicit, the Company should make a judgement
based on the basic conditions to obtain the government grants, and recognises them as
asset-related government grants if the conditions are to form long-term assets through
construction or other method. Otherwise, the government grants should be
income-related.
The Company's government grants are subject to the gross method.
A government subsidy related to income, which is used to compensate the related costs
or losses in the future period, is recognised as deferred income, and is recorded into the
profit or loss or to offset the relevant costs during the period when the related costs and
expenses or losses are recognised; costs or losses incurred in compensation is directly
recorded into the profit or loss or offset the relevant costs.
A government grant relating to an asset shall be offset against the carrying amounts of
relevant assets, or recognised as deferred income and amortised in profit or loss over the
useful life of the related asset by annual instalments in a systematic and rational way
(however, a government grant measured at a nominal amount is recognised directly in
profit or loss). Where the assets are sold, transferred, retired or damaged before the end
of their useful lives, the rest of the remaining deferred income is released to profit or loss
for the period in which the relevant assets are disposed of.
√ Applicable □ Not applicable
For temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts, and temporary differences between the carrying
amounts and the tax bases of items, the tax bases of which can be determined according
to related tax laws for tax purposes, but which have not been recognised as assets and
liabilities, deferred taxes are provided using the balance sheet liability method.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
(1) when the taxable temporary difference arises from the initial recognition of goodwill, or
an asset or liability in an individual transaction that is not a business combination and, at
the time of transaction, affects neither accounting profit nor taxable profit or loss, and the
initial recognition of assets and liabilities does not result in equal taxable temporary
differences and deductible temporary differences, and the initial recognition of assets and
liabilities does not result in equal taxable temporary differences and deductible temporary
differences; and
(2) in respect of taxable temporary differences associated with investments in subsidiaries,
associates and joint ventures, when the timing of the reversal of the temporary differences
can be controlled and it is probable that the temporary differences will not be reversed in
the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, and the
carryforward of unused tax losses and any unused tax credits. Deferred tax assets are
recognised to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, the carryforward of unused tax losses and
unused tax credits can be utilized, except:
(1) when the deductible temporary difference arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor taxable profit or loss; and
(2) in respect of the deductible temporary differences associated with investments in
subsidiaries, associates and joint ventures, deferred tax assets are only recognised to the
extent that it is probable that the temporary differences will be reversed in the foreseeable
future and taxable profit will be available against which the temporary differences can be
utilized in the future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates
that are expected to apply to the period when the asset is realised or the liability is settled,
in accordance with the requirements of tax laws. The measurement of deferred tax
assets and deferred tax liabilities reflects the tax consequences that would follow from the
manner in which the Group expects, at the balance sheet date, to recover the assets or
settle the liabilities.
The carrying amount of deferred tax assets is reviewed at the balance sheet date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be
available in future periods to allow the deferred tax assets to be utilized. Unrecognised
deferred tax assets are reassessed at the balance sheet date and are recognised to the
extent that it has become probable that sufficient taxable profit will be available to allow all
or part of the deferred tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a
legally enforceable right to set off current tax assets and current tax liabilities, and the
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities which
intend either to settle current tax liabilities and assets on a net basis, or to realize the
assets and settle the liabilities simultaneously, in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or recovered.
√ Applicable □ Not applicable
Judgement basis and accounting method for lessees to simplify short-term leases
and leases of low-value assets
√ Applicable □ Not applicable
The Group considers a lease that, at the commencement date of the lease, has a lease
term of 12 months or less, and does not contain any purchase option as a short-term
lease; and a lease for which the individual underlying asset with a lower value when it is
new as a lease of low-value assets. The Group does not recognize right-of-use assets
and lease liabilities for short-term leases and low-value asset leases. The Group
recognises lease payments on short-term leases and leases of low-value assets in the
costs of the related asset or profit or loss on a straight-line basis
At inception of a contract, the Group assesses whether the contract is, or contains, a
lease. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration.
As lessee
The Group recognises lease liabilities and right-of-use assets, except for short-term
leases and leases of low-value assets.
Right-of-use assets
At the commencement date of the lease term, the Group recognises its right to use the
leased asset during the lease term as a right-of-use asset, initially measured at cost. The
cost of right-of-use assets includes: the initial measurement amount of lease liabilities;
lease payments made on or before the commencement date of the lease term (net of
amounts relating to lease incentives received); initial direct expenses incurred by the
lessee; the costs that the lessee expects to incur to dismantle and remove the leased
asset, restore the site where the leased asset is located, or restore the leased asset to the
state agreed in the lease terms. If the Group remeasures lease liabilities due to changes
in lease payments, the carrying amount of right-of-use assets is adjusted accordingly. The
Group subsequently depreciates right-of-use assets using the straight-line method. If it
can be reasonably determined that the ownership of the leased asset will be obtained at
the expiration of the lease term, the Group shall make depreciation for the remaining
service life of the leased asset. If it is impossible to reasonably determine that ownership
of the leased asset can be obtained at the end of the lease term, the Group shall make
depreciation during the shorter of the lease term and the remaining useful life of the
leased asset.
Lease liabilities
At the commencement date of the lease term, the Group recognises the present value of
the lease payments that have not yet been paid as a lease liability, except for short-term
leases and leases of low-value assets. Lease payments include fixed and substantially
fixed payments after deducting lease incentives, variable lease payments that depend on
an index or ratio, amounts expected to be payable based on residual value of the
guarantee, and also the exercise price of the purchase option or the amount payable to
exercise the termination option, provided that the Group is reasonably certain that the
exercise of the option or the lease term reflects the exercise of the termination option by
the Group.
In calculating the present value of lease payments, the Group uses the interest rate
implicit in the lease as the discount rate; If the interest rate implicit in the lease cannot be
determined, the lessee's incremental borrowing rate shall be used as the discount rate.
The Group calculates the interest expense of the lease liability for each period of the lease
term at a fixed periodic interest rate and includes it in profit or loss for the current period,
unless otherwise specified as being included in the cost of related assets. Variable lease
payments that are not included in the measurement of lease liabilities are recognised in
profit or loss for the period in which they are incurred, unless otherwise specified as being
included in the cost of the relevant asset.
After the commencement date of the lease term, the Group increases the carrying amount
of the lease liability upon recognition of interest and decreases the carrying amount of the
lease liability upon payment of lease payments. The Group remeasures lease liabilities at
the present value of the changed lease payments when there is a change in the amount of
substantially fixed payments, a change in the amount expected to be payable in the
residual value of the guarantee, a change in the index or rate used to determine the lease
payments, a change in the assessment or actual exercise of the purchase option, renewal
option or termination option.
Classification criteria and accounting method for leases as lessors
√ Applicable □ Not applicable
A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset, except that a lease is classified as an
operating lease at the inception date.
As the lessor of operating lease
Rental income under an operating lease is recognised on a straight-line basis
over the lease term, through profit or loss. Variable lease payments that are not included
in the measurement of lease receivables are charged to profit or loss as incurred. Initial
direct costs are capitalised and recognised over the lease term on the same basis as
rental income, through profit or loss.
√ Applicable □ Not applicable
The consideration and transaction costs paid for the repurchase of its own equity
instruments reduce shareholders' equity. Except for share-based payment, the issuance
(including refinancing), repurchase, sale or cancellation of own equity instruments are
treated as changes in equity.
The Group measures receivables financing at fair value at each balance sheet date. Fair
value refers to the price that market participants can receive from selling an asset or pay
to transfer a liability in an orderly transaction on the measurement date.
For assets and liabilities measured or disclosed at fair value in the financial statements,
the level of fair value shall be determined according to the lowest level input value that is
important for the fair value measurement as a whole: Level 1 inputs value, the unadjusted
quotation in the active market of the same assets or liabilities that can be obtained on the
measurement date; Level 2 inputs value, inputs other than Level 1 inputs that are directly
or indirectly observable for the relevant asset or liability; Level 3 inputs value,
unobservable inputs for related assets or liabilities.
At each balance sheet date, the Group reassesses the assets and liabilities recognised in
the financial statements that are measured at fair value on an ongoing basis to determine
whether there is a transition between fair value measurement levels.
estimates and assumptions that affect the reported amounts of revenue, expenses, assets
and liabilities, and their accompanying disclosures, and the disclosure of contingent
liabilities at the balance sheet date. Uncertainty about these assumptions and estimates
could result in outcomes that could require a material adjustment to the carrying amounts
of the assets or liabilities affected in the future.
(1) Judgments
In applying the Group's accounting policies, management has made the following
judgements that have a significant effect on the amounts recognised in the financial
statements:
The Group determines whether the property held meets the definition of investment
property and establishes relevant standards in making judgments. The Group classifies
property held for rental or capital appreciation, or both, as investment property. Therefore,
the Group considers whether the manner in which the property generates cash flows is
largely independent of other assets held by the Group. Some properties are partly used to
earn rent or capital appreciation, and the remainder is used to produce goods, provide
services or manage operations. If the portion used to earn rent or capital appreciation can
be sold or leased separately, the Group accounts for that portion separately. If not, the
property is classified as an investment property only if the part used for the production of
goods, the provision of services or the operation and management is not significant. The
Group makes a separate judgment on an individual property basis when determining
whether the ancillary services are significant enough to make the property ineligible for
recognition as an investment property.
(2) Estimation uncertainty
The key assumptions concerning the future and other key sources of estimation
uncertainty at the balance sheet date, that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the future accounting
periods, are described below.
① Impairment of financial instruments
Commencing from January 1, 2019, the Company has adopted the expected credit loss
model to assess the impairment of financial instruments. The Group is required to perform
significant judgement and estimation and take into account all reasonable and
supportable information, including forward-looking information. When making such
judgements and estimates, the Group infers the expected changes in the debtor's credit
risk based on historical repayment data combined with economic policies,
macroeconomic indicators, industry risks and other factors. The different estimates may
impact the impairment assessment, and the provision for impairment may also not be
representative of the actual impairment loss in the future.
② Impairment of non-current assets other than financial assets (other than goodwill)
The Group assesses whether there are any indications of impairment for all non-current
assets other than financial assets at the balance sheet date. Intangible assets with
indefinite useful lives are tested for impairment annually and at other times when such an
indication exists. Other non-current assets other than financial assets are tested for
impairment when there are indications that the carrying amounts may not be recoverable.
An impairment exists when the carrying amount of an asset or asset group exceeds its
recoverable amount, which is the higher of its fair value less costs of disposal and the
present value of the future cash flows expected to be derived from it. The calculation of
the fair value less costs of disposal based on available data from binding sales
transactions in an arm’s length transaction of similar assets or observable market prices
less incremental costs for disposing of the assets. When the calculations of the present
value of the future cash flows expected to be derived from an asset or asset group are
undertaken, management must estimate the expected future cash flows from the asset or
asset group and choose a suitable discount rate in order to calculate the present value of
those cash flows.
③ Provision of sales rebates and rewards
The Group applies the sales rebate and incentive policy to the dealers. According to the
relevant stipulations in the distribution agreement, with reference to the completion of the
agreed assessment indicators by the dealers, sales rebates and incentives are estimated
and accrued at the end of each year.
(1) Change in accounting policies
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Contents and reasons for changes in accounting policies Name of reporting Amount
items significantly affected
affected
Interpretation No.16 of Accounting Standards for Deferred tax assets -
Business Enterprises issued in 2022 stipulates that the and deferred tax
provisions on exemption from initial recognition of liabilities
deferred income tax shall not apply to individual
transactions that are not business combinations, do not
affect accounting profits or taxable income (or deductible
losses) at the time of transactions, and the initially
recognized assets and liabilities lead to equal taxable
temporary differences and deductible temporary
differences. With effect from 1 January 2023, the Group
changes the taxable temporary differences and
deductible temporary differences arising from the initial
recognition of assets and liabilities to the corresponding
deferred tax liabilities and deferred tax assets for lease
transactions initially recognized as lease liabilities and
included in right-of-use assets at the commencement
date of the lease term. In accordance with the transition
requirements, the Group has adjusted the above
transactions that occurred between the beginning of the
earliest period in which the interpretation was first
applied to the presentation of the financial statements
and the date of the change in accounting policy.
Other notes
None
(2) Change of Significant Accounting Estimates
□ Applicable √ Not applicable
(3) First-time implementation of new accounting standards or interpretations of
standards, etc. from 2023 involves adjustments to the financial statements as of the
beginning of the year of first-time implementation.
□ Applicable √ Not applicable
□ Applicable √ Not applicable
VI. Taxes
Types of major taxes and tax rates
√ Applicable □ Not applicable
Types of taxes Tax basis Tax rates
Difference between sales amount and output
Value-added
tax calculated at applicable tax rate after 6%, 9%, 13%
tax
deducting input tax allowed to be deducted
Urban
maintenance It is paid based on the value-added tax
and actually paid
construction tax
Corporate
Based on the amount of income taxable 25%, 22%, 20%,16.5%, 15%
income tax
Education It is paid based on the value-added tax
Surcharge actually paid
Local
It is paid based on the value-added tax
education 2%
actually paid
Surcharge
In case there exist taxpayers subject to different corporate income tax rates, disclose the
information.
√ Applicable □ Not applicable
Income tax rate
Taxpayers
(%)
Aima Technology Group Co., Ltd. 25
Tianjin Aima Lianxiang Technology Co., Ltd. 25
Tianjin Aima Shengsituo Technology Co., Ltd. 25
Aima Electric Drive Systems Co., Ltd. 25
Aima Growth Venture Capital (Ningbo) Co., Ltd. 25
Zhejiang Aiska Technology Co., Ltd. 25
Zhejiang Aima Vehicle Technology Co., Ltd. 25
Jiangsu Aima Vehicle Technology Co., Ltd. 25
Aima Technology (Taizhou) Co., Ltd. 25
Aima Technology (Zhejiang) Co., Ltd. 25
Taizhou Aima Vehicle Manufacture Co., Ltd. 25
Lishui Aima Vehicle Technology Co., Ltd. 25
Tianjin Aima Sports Goods Co., Ltd. 25
Tianjin Aima Electromechanical Technology Co., Ltd. 25
Yangjiang Xiaoma Intelligent Technology Co., Ltd. 20
Tianjin Suiwanwan Culture Communication Co., Ltd. 20
Xiaopa Electric Technology （Shanghai） Co., Ltd. 20
Tianjin Tianli Electric Bicycle Co., Ltd. 20
Chongqing Xiaoma Network Technology Co., Ltd. 20
Tianjin Xiaoma Intelligent Technology Co., Ltd. 20
Wanning Xiaoma Intelligent Technology Co., Ltd. 20
Guangxi Xiaoma Intelligent Technology Co., Ltd. 20
Chongqing Xiaoma Intelligent Technology Co., Ltd. 20
Aima TECHNOLOGY SINGAPORE PTE.LTD., 17
Geling New Energy Technology (Shandong) Co., Ltd. 15
Tianjin Aima Vehicle Technology Co., Ltd. 15
Guangdong Aima Vehicle Technology Co., Ltd. 15
Guangxi Aima Vehicle Co., Ltd. 15
Henan Aima Vehicle Co., Ltd. 15
Tianjin Aima Shared Technology Services Co., Ltd. 15
Aima Technology (Chongqing) Co., Ltd. 15
Chongqing Aima Vehicle Technology Co., Ltd. 15
Chongqing Aima Vehicle Service Technology Co., Ltd. 15
Chongqing Aima Electromechanical Technology Co., Ltd. 15
Super Universe (Chongqing) Vehicle Industry Technology Co., Ltd. 15
Chongqing Aima Zhilian Logistics Co., Ltd. 15
Suoteng Technology Hong Kong Co., Ltd. 16.5
POWELLDD TECHNOLOGY COMPANY LIMITED 20
PT Aima ELECTRIC VEHICLES INDONESIA 22
√ Applicable □ Not applicable
In 2023, Tianjin Suiwanwan Cultural Communication Co., Ltd., Xiaopa Electric Technology
(Shanghai) Co., Ltd., Chongqing Xiaoma Intelligent Technology Co., Ltd., Tianjin Tianli
Electric Bicycle Co., Ltd., Chongqing Xiaoma Network Technology Co., Ltd., Wanning
Xiaoma Intelligent Technology Co., Ltd., Yangjiang Xiaoma Intelligent Technology Co., Ltd,
Guangxi Xiaoma Intelligent Technology Co., Ltd. and Tianjin Xiaoma Intelligent
Technology Co., Ltd. enjoyed preferential taxes for small low-profit enterprises. In
accordance with the Enterprise Income Tax Law of the People’s Republic of China and the
regulations for the implementation, and the Ministry of Finance and the State
Administration of Taxation on further Implementing the Inclusive Tax Deduction and
Exemption Policies for Micro and Small Enterprises (CAISHUI [2022] No. 13), from
January 1, 2022 to December 31, 2024, the annual taxable income of a small low-profit
enterprise that is not less than RMB 1 million nor more than RMB 3 million shall be
included in its taxable income at the reduced rate of 25%, with the applicable enterprise
income tax rate of 20%; In accordance with the Announcement of the State Administration
of Taxation on the Implementation of Preferential Income Tax Policies of Small and
Low-profit Enterprises and Individual Industrial and Commercial Households (State
Administration of Taxation Announcement No. 6 [2023]) and the annual taxable income
that is not more than RMB 1 million ,from January 1, 2023 to December 31, 2024, shall be
included in its taxable income at the reduced rate of 25%, with the applicable enterprise
income tax rate of 20%.
Aima Technology (Chongqing) Co., Ltd., Chongqing Aima Vehicle Technology Co., Ltd.,
Chongqing Aima Vehicle Service Technology Co., Ltd., Chongqing Aima
Electromechanical Technology Co., Ltd., Super Universe (Chongqing) Vehicle Industry
Technology Co., Ltd. and Chongqing Aima Zhilian Logistics Co., Ltd. belong to the
encouraged industrial companies of the Western Development, and can enjoy the tax
preference of 15% corporate income tax from 2021 to 2030.
Tianjin Aima Vehicle Technology Co., Ltd., Guangdong Aima Vehicle Technology Co., Ltd.
and Guangxi Aima Vehicle Co., Ltd. were qualified for hi-tech enterprise in 2021, and may
enjoy the tax preference of 15% corporate income tax from 2021 to 2023.
Henan Aima Vehicle Co., Ltd., Tianjin Aima Shared Technology Services Co., Ltd. and
Geling New Energy Technology (Shandong) Co., Ltd. were qualified for high-tech
enterprise in 2022, and may enjoy the tax preference of 15% corporate income tax from
□ Applicable √ Not applicable
VII. Notes to items of consolidated financial statements
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Cash
Cash at banks 6,612,189,387.29 6,030,234,206.13
Others 55,069,563.89 603,220,864.16
Deposits of finance companies
Total 6,667,258,951.18 6,633,455,070.29
Where: Total amount deposited abroad 57,463,879.61 73.46
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Reason and
Items Ending balance Opening balance basis for
designation
Financial assets at fair /
value through profit or 176,041,430.92 142,668,675.59
loss
Where:
Equity investments 55,840,000.00 73,480,000.00 /
Financial products 120,201,430.92 69,188,675.59 /
Total 176,041,430.92 142,668,675.59 /
Other notes:
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(1) Classification of notes receivable
□ Applicable √ Not applicable
(2) Notes receivable already pledged by the Company at the end of the reporting
period
□ Applicable √ Not applicable
(3) Endorsed or discounted notes receivable at the end of the reporting period, but
not yet due on the balance sheet date
□ Applicable √ Not applicable
(4) Classified disclosure based on the method of provision for bad debt
□ Applicable √ Not applicable
Individual provision for bad debts:
□ Applicable √ Not applicable
Provision for bad and doubtful debts based on portfolio:
□ Applicable √ Not applicable
If the provision for bad debt is accrued in accordance with the general model of expected
credit loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
N/A
Description of significant changes in the book balance of notes receivable with changes
in loss provision in the current period:
□ Applicable √ Not applicable
(5) Provision for bad debts
□ Applicable √ Not applicable
Among them, the amount of bad debt provision recovered or reversed in the current
period is significant:
□ Applicable √ Not applicable
Other notes:
None
(6) Notes receivable actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of notes receivable:
□ Applicable √ Not applicable
Notes receivable write-off description:
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
(1) Disclosed based on aging
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Aging Ending book balance Opening book balance
Within 1 year
Where: Itemized within 1 year
Within 1 year 348,516,988.63 291,745,445.04
Sub-total within 1 year 348,516,988.63 291,745,445.04
Over 3 years 108,695.20
Total 380,379,332.93 297,506,252.15
(2) Classified disclosure based on the method of provision for bad debt
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Categories Provision Book Provision Book
Proportion Proportion
Amount Amount proportion value Amount Amount proportio value
(%) (%)
(%) n (%)
Assessed bad debt 41,832,2 15,181,7 3,176,31 3,176,31 100.0
provision individually 76.77 51.34 7.65 7.65 0
Where:
Individually significant
amount and separate 41,832,2 15,181,7 3,176,31 3,176,31 100.0
provision for bad 76.77 51.34 7.65 7.65 0
debts
Assessed bad debt 338,547, 7,357,41 294,329, 3,964,38 290,365,5
provision in portfolio 056.16 6.40 934.50 7.39 47.11
Where:
Portfolios based on 331,18
credit risk 89.00 2.17 9,639. 98.93 1.35
characteristics 76
Total 100.00 5.93 0,165. 100.00 2.40
Individual provision for bad debts:
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance
Name Bad debt Provision
Book balance Provision reason
provision proportion (%)
Company 1 Estimated
collection risk
Company 2 3,176,317.65 3,176,317.65 100.00 Estimated
collection risk
Company 3 Estimated
collection risk
Total 41,832,276.77 15,181,751.34 36.29 /
Notes for Individual provision for bad debts:
□ Applicable √ Not applicable
Provision for bad and doubtful debts based on portfolio:
√ Applicable □ Not applicable
Provision items on portfolio: Combination of credit risk characteristics
Unit: Yuan (RMB)
Ending balance
Name Accounts Bad debt
Provision proportion (%)
receivable provision
Within 1 year 326,218,878.17 4,702,709.38 1.44
Over 3 years 108,695.20 108,695.20 100.00
Total 338,547,056.16 7,357,416.40 2.17
Note to recognition of provision for bad debts based on portfolio:
□ Applicable √ Not applicable
If the provision for bad debt is accrued in accordance with the general model of expected
credit loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
N/A
Description of significant changes in the book balance of accounts receivable with
changes in loss provision in the current period:
□ Applicable √ Not applicable
(3) Provision for bad debts
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount of movement during the reporting period
Opening Other
Categories Recovery or Charge-off Ending balance
balance Provision chang
reversal or write-off
es
Assessed
bad debt
provision
in portfolio
Total 7,140,705.04 16,882,991.38 -1,426,419.08 -58,109.60 22,539,167.74
Where the significant amount of the reserve for bad debt recovered or reversed:
□ Applicable √ Not applicable
Other notes:
None
(4) Accounts receivable actually written off in the reporting period
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Written off amount
Accounts receivable actually written off 58,109.60
Significant written off of accounts receivable
□ Applicable √ Not applicable
Description of written off of accounts receivable:
√ Applicable □ Not applicable
It is confirmed that the accounts receivable for which bad debt provision has
been made cannot be recovered.
(5) Accounts receivable and contract assets owed by the top five debtors based on
the ending balance
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending Ending balance of Proportion
balance accounts receivable in total
of and contract assets ending Ending balance of
Ending balance of accounts
Organization name contract balance of the provision for bad
receivable
assets accounts debts
receivable
(%)
Company 1 38,089,592.68 38,089,592.68 10.01 11,439,067.25
Company 2 15,383,284.10 15,383,284.10 4.04 221,519.30
Company 3 11,275,942.82 11,275,942.82 2.96 162,373.58
Company 4 10,710,300.18 10,710,300.18 2.82 154,228.32
Company 5 9,768,930.86 9,768,930.86 2.57 140,672.60
Total 85,228,050.64 85,228,050.64 22.40 12,117,861.05
Other notes:
None
Other notes:
□ Applicable √ Not applicable
(1) Contract assets
□ Applicable √ Not applicable
(2) Amount and reasons for significant changes in book value during the reporting
period
□ Applicable √ Not applicable
(3) Classified disclosure by bad debt provision method
□ Applicable √ Not applicable
Individual provision for bad debts:
□ Applicable √ Not applicable
Description of individual provision for bad debts:
□ Applicable √ Not applicable
Provision for bad and doubtful debts based on portfolio:
□ Applicable √ Not applicable
If the provision for bad debt is accrued in accordance with the general model of expected
credit loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
None
Description of significant changes in the book balance of contract assets with changes in
loss provision in the current period:
□ Applicable √ Not applicable
(4) Provision for bad debts
□ Applicable √ Not applicable
Among them, the amount of bad debt provision recovered or reversed in the current
period
is significant:
□ Applicable √ Not applicable
Other notes:
None
(5) Contract assets actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of contract assets:
□ Applicable √ Not applicable
Contract assets write-off description:
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
(1) Classification of financing receivables
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Bank acceptance notes 8,893,241.61 8,332,754.00
Total 8,893,241.61 8,332,754.00
(2) Financing of pledged receivables of the Company at the end of the period
□ Applicable √ Not applicable
(3) Financing of receivables endorsed or discounted by the Company at the end of
the period and not yet due at the balance sheet date
□ Applicable √ Not applicable
(4) Classified disclosure by bad debt provision method
□ Applicable √ Not applicable
Individual provision for bad debts:
□ Applicable √ Not applicable
Description of individual provision for bad debts:
□ Applicable √ Not applicable
Provision for bad and doubtful debts based on portfolio:
□ Applicable √ Not applicable
If the provision for bad debt is accrued in accordance with the general model of expected
credit loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
N/A
Description of significant changes in the book balance of receivables financing with
changes in loss provision in the current period:
□ Applicable √ Not applicable
(5) Provision for bad debts
□ Applicable √ Not applicable
Among them, the amount of bad debt provision recovered or reversed in the current
period is significant:
□ Applicable √ Not applicable
Other notes:
None
(6) Receivables financing actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of receivables financing:
□ Applicable √ Not applicable
Receivables financing write-off description:
□ Applicable √ Not applicable
(7) Change of increase/decrease and fair value of accounts receivable financing in
the reporting period:
□ Applicable √ Not applicable
(8) Other notes:
□ Applicable √ Not applicable
(1) Prepayments are presented based on aging
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year 36,269,084.25 99.02 16,958,698.72 96.61
Over 3 years 176,154.95 0.48 67,870.01 0.38
Total 36,627,883.96 100.00 17,554,574.37 100.00
Description of the reasons for the untimely settlement of prepayments with an age of more
than 1 year and significant amounts:
At 31 December 2023, there were no significant prepayments with an age of more than 1
year.
(2) Prepayments to the top five debtors of the ending balance collected based on
the debtors of the prepayments
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Proportion in total ending
Organization name Ending balance
balance of prepayments (%)
Supplier 1 6,000,000.00 16.38
Supplier 2 5,000,000.00 13.65
Supplier 3 2,508,800.00 6.85
Supplier 4 2,400,000.00 6.55
Supplier 5 1,623,450.00 4.43
Total 17,532,250.00 47.86
Other notes:
None
Other notes:
□ Applicable √ Not applicable
Items Presentation
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Interest receivables 1,212,339.44 1,160,941.82
Other receivables 14,475,566.83 26,890,978.44
Total 15,687,906.27 28,051,920.26
Other notes:
□ Applicable √ Not applicable
Interest receivables
(1) Classification of interest receivable
√ Applicable □ Not applicable
Items Ending balance Opening balance
Interest of accounts receivable 1,212,339.44 1,160,941.82
Total 1,212,339.44 1,160,941.82
(2) Significant overdue interest
□ Applicable √ Not applicable
(3) Classified disclosure by bad debt provision method
□ Applicable √ Not applicable
Individual provision for bad debts:
□ Applicable √ Not applicable
Description of individual provision for bad debts:
□ Applicable √ Not applicable
Provision for bad and doubtful debts based on portfolio:
□ Applicable √ Not applicable
(4) If the provision for bad debt is accrued in accordance with the general model of
expected credit loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
None
Description of significant changes in the book balance of interest receivables
with changes in loss provision in the current period:
□ Applicable √ Not applicable
(5) Provision for bad debts
□ Applicable √ Not applicable
Among them, the amount of bad debt provision recovered or reversed in the current
period is significant:
□ Applicable √ Not applicable
Other notes:
None
(6) Interest receivables actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of interest receivables:
□ Applicable √ Not applicable
Interest receivables write-off description:
□ Applicable √ Not applicable
Other notes：
□ Applicable √ Not applicable
Dividend receivable
(1) Dividend receivable
□ Applicable √ Not applicable
(2) Significant dividends receivable with age exceeding 1 year
□ Applicable √ Not applicable
(3) Classified disclosure by bad debt provision method
□ Applicable √ Not applicable
Individual provision for bad debts:
□ Applicable √ Not applicable
Description of individual provision for bad debts:
□ Applicable √ Not applicable
Provision for bad and doubtful debts based on portfolio:
□ Applicable √ Not applicable
(4) If the provision for bad debt is accrued in accordance with the general model of
expected credit loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
None
Description of significant changes in the book balance of dividend receivable with
changes in loss provision in the current period:
□ Applicable √ Not applicable
(5) Provision for bad debts
□ Applicable √ Not applicable
Among them, the amount of bad debt provision recovered or reversed in the current
period is significant:
□ Applicable √ Not applicable
Other notes:
None
(6) Dividend receivable actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of dividend receivable:
□ Applicable √ Not applicable
Dividend receivable write-off description:
□ Applicable √ Not applicable
Other notes：
□ Applicable √ Not applicable
Other receivables
(1) Disclosed based on aging
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Aging Ending book balance Opening book balance
Within 1 year
Where: Itemized within 1 year
Within 1 year 12,908,132.59 25,350,872.34
Sub-total within 1 year 12,908,132.59 25,350,872.34
Over 3 years 1,085,474.53 1,265,939.69
Total 14,504,766.83 26,904,718.07
(2) Classification based on the nature of fund
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Nature of the fund Ending book balance Opening book balance
Three guarantees 5,577,033.25 11,527,981.67
Receivable from disposal of 4,928,340.21
fixed assets
Deposits 4,670,405.87 1,766,722.22
Advance to employees 164,078.56 242,296.80
Others 4,093,249.15 8,439,377.17
Total 14,504,766.83 26,904,718.07
(3) Provision for bad debts
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Stage 1 Stage 2 Stage 3
Lifetime ECLs (no Lifetime ECLs
Bad debt provision expected Total
credit impairment (credit impairment
credit
incurred) already incurred)
losses
Balance as at January
Balance as at January
reporting period
-- transferred into
Stage 2
-- transferred into
Stage 3
-- revered to Stage 2
-- reversed to Stage 1
Accrual 18,900.00 18,900.00
Reversal 3,439.63 3,439.63
Transfer out
Write-off
Other changes
Balance as at
December 31, 2023
Classification basis of each stage and provision ratio for bad debts
None
Note to the significant changes in the book balance of other receivables with changes in
provision for loss in the reporting period:
□ Applicable √ Not applicable
The amount of provision for bad debts in the reporting period and the basis for assessing
whether the credit risk of financial instruments has increased significantly.
□ Applicable √ Not applicable
(4) Provision for bad debts
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount of movement during the reporting period
Opening Ending
Categories Recovery or Charge-off Other
balance Provision balance
reversal or write-off changes
Bad debt 13,739.63 18,900.00 3,439.63 29,200.00
provision
Total 13,739.63 18,900.00 3,439.63 29,200.00
Where a significant amount of the reserve for bad debt recovered or reversed during the
reporting period:
□ Applicable √ Not applicable
Other notes:
None
(5) Other receivables actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of other receivables:
□ Applicable √ Not applicable
Other receivables write-off description:
□ Applicable √ Not applicable
(6) Other receivables owed by the top five debtors based on the ending balance
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Proportion in Bad debt
Organization total ending Nature of reserve
Ending balance Aging
name balance of other Payment Ending
receivables balance
Company 1 2,102,806.68 14.50 Rent Within 1 year
Company 2 1,143,704.91 7.89 Deposits Within 1 year
Company 3 500,000.00 3.45 Deposits Over 3 years
Company 4 500,000.00 3.45 Deposits Within 1 year
Company 5 450,000.00 3.10 Deposits Over 3 years
Total 4,696,511.59 32.39 / /
(7) Presentation in other receivables due to centralized management of funds
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
(1) Classification of inventories
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Provision for
Provision for
write-down of
write-down of
Items Book Book inventories / Book
inventories / Book value
balance balance impairment of value
impairment of costs
costs to fulfil a
to fulfil a contract
contract
Raw 199,024,55 195,201,37 343,462, 343,399,3
materials 3.43 6.44 948.77 71.70
Finished 380,138,90 380,138,90 467,111, 467,111,9
goods 4.84 4.84 915.62 15.62
Total 3,823,176.99 63,577.07
(2) Provision for write-down of inventories / impairment of costs to fulfil a contract
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount increased in the Decrease in the
Opening reporting period reporting period Ending
Items
balance Reversal or balance
Provision Others Others
write-off
Raw materials 3,823,176.9
Total 63,577.07 3,823,176.99 63,577.07
Reasons for reversal or write-off of provision for write-down of inventories in the current
period
√ Applicable □ Not applicable
As at December 31, 2023, the net realizable value of some inventories was lower than the
book value, and the provision for write-down of inventories was RMB 3,823,176.99 yuan
this year.
In 2023, the Group transferred provision for decline in value of inventories due to sales of
RMB 63,577.07 yuan.
Provision for write-down of inventories by portfolio
□ Applicable √ Not applicable
Accrual criteria for provision for write-down of inventories by portfolio
□ Applicable √ Not applicable
(3) Calculation standard and basis to the amount of capitalized borrowing costs
involved in the ending balance of inventories
□ Applicable √ Not applicable
(4) Note to the current amortization amount of contract performance costs
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Non-current assets due within one year 1,628,460,684.93 3,524,708,328.77
Total 1,628,460,684.93 3,524,708,328.77
Debt investment due within one year
□ Applicable √ Not applicable
Other debt investments due within one year
□ Applicable √ Not applicable
Other notes to non-current assets due within one year
As at December 31, 2023, the Company issued bank acceptance bills pledged with
RMB 1,500,000,000.00 yuan of three-year time certificates of deposit due within 1 year
(December 31, 2022: RMB 3,200,000,000.00 yuan), for details, please refer to Section
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Input VAT to be credited 99,451,703.53 61,570,447.87
CIT paid in advance 20,436,517.16 15,453,043.29
Total 119,888,220.69 77,023,491.16
Other notes:
None
(1) About debt investment
□ Applicable √ Not applicable
Changes in provision for impairment of debt investments in the current period
□ Applicable √ Not applicable
(2) Significant debt investment at the end of the reporting period
□ Applicable √ Not applicable
(3) Provision for impairment
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
None
Description of significant changes in the book balance of debt investment
with changes in loss provision in the current period:
□ Applicable √ Not applicable
The amount of provision for impairment in the reporting period and the basis for assessing
whether the credit risk of financial instruments has increased significantly.
□ Applicable √ Not applicable
(4) Debt investment actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of debt investment:
□ Applicable √ Not applicable
Debt investment write-off description:
□ Applicable √ Not applicable
Other notes：
□ Applicable √ Not applicable
(1) About other debt investment
□ Applicable √ Not applicable
Changes in provision for impairment of other debt investments in the current period
□ Applicable √ Not applicable
(2) Significant other debt investment at the end of the reporting period
□ Applicable √ Not applicable
(3) Provision for impairment
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
None
Description of significant changes in the book balance of other debt investment
with changes in loss provision in the current period:
□ Applicable √ Not applicable
The amount of provision for impairment in the reporting period and the basis for assessing
whether the credit risk of financial instruments has increased significantly.
□ Applicable √ Not applicable
(4) Other debt investment actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of other debt investment:
□ Applicable √ Not applicable
Other debt investment write-off description:
□ Applicable √ Not applicable
Other notes：
□ Applicable √ Not applicable
(1) About long-term receivables
□ Applicable √ Not applicable
(2) Classified disclosure by bad debt provision method
□ Applicable √ Not applicable
Individual provision for bad debts:
□ Applicable √ Not applicable
Description of individual provision for bad debts:
□ Applicable √ Not applicable
Provision for bad and doubtful debts based on portfolio:
□ Applicable √ Not applicable
(3) If the provision for bad debt is accrued in accordance with the general model of
expected credit loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
None
Description of significant changes in the book balance of long-term receivables with
changes in loss provision in the current period:
□ Applicable √ Not applicable
The amount of provision for bad debts in the reporting period and the basis for assessing
whether the credit risk of financial instruments has increased significantly.
□ Applicable √ Not applicable
(4) Provision for bad debts
□ Applicable √ Not applicable
Among them, the amount of bad debt provision recovered or reversed in the current
period is significant:
□ Applicable √ Not applicable
Other notes:
None
(5) Long-term receivables actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of long-term receivables:
□ Applicable √ Not applicable
Long-term receivables write-off description:
□ Applicable √ Not applicable
Other notes：
□ Applicable √ Not applicable
(1) About long-term equity investments
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Increase/ Decrease (+ / -) in the reporting period
Investment Other Other Provisio Impairment
Opening Cash Ending
Investees Decr income under compre equity n for Other at the end of
balance Increase dividend balance
ease the equity hensive moveme impairm s the year
declared
method income nt ent
I. Joint Venture
Sub-total
II. Associates
Today 9,903,82 8,378,520.
-1,525,302.81
Sunshine 2.89 08
Tianjin Jiema 11,725,908.91
Geling New 39,329,4 9,554,78 -47,938,
-946,082.92
Energy 02.77 2.42 102.27
Taizhou Jinfu -38,817,295.52
Beijing 26,490,6 26,663,44
Zhongzhong 84.45 1.28
Chongqing 17,500,0 16,443,26
-1,056,733.76
Xintai 00.00 6.24
Guangxi 51,785,7 53,641,99
Ningfu 00.00 4.63
Sub-total -28,590,454.64
Total
(2) Impairment test of long-term equity investments
□ Applicable √ Not applicable
Other notes:
None
(1) About other equity instrument investment
□ Applicable √ Not applicable
(2) Description of derecognition in the current period
□ Applicable √ Not applicable
Other notes:
√ Applicable □ Not applicable
Ningfu by means of capital increase. Since the shareholding ratio is not more than 5%,
which has no significant impact on Guangxi Ningfu, the Company accounted for the initial
investment as a financial asset measured at fair value through other comprehensive
income. According to the resolution of the shareholders' meeting of Guangxi Ningfu on
June 30, 2023, it was agreed to add Zhang Jian, chairman of the Company, as a director
of Guangxi Ningfu. The Company has a significant impact on Guangxi Ningfu. During the
reporting period, it was adjusted to a long-term equity investment calculated by the equity
method and no longer measured at fair value. By the end of the reporting period, the
Company had invested 51.7857 million yuan and held 1.97% of the equity of Guangxi
Ningfu.
② In February 2023, Spozman and Yunnan Xiaoji Intelligent Transportation Technology
Co., Ltd. jointly established Kunming Michi Transportation Technology Co., Ltd. with a
registered capital of 1 million yuan, and Spozman subscribed a capital contribution of
Spozman has not yet completed the paid-in.
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
Measurement model for investment-oriented real estate
(1) Investment properties measured based on the cost method
Unit: Yuan (RMB)
Items Buildings Land use rights Total
I. Original book value
the reporting period
(1) Purchased
(2) Inventories\fixed 96,225,288.44 91,822,602.04
assets/construction in 188,047,890.48
process transferred in
(3) Increase of
enterprise consolidation
the reporting period
(1) Disposals
(2) Other transfer out
(3) Transfer out to fixed 69,462,483.75 34,499,601.56
assets or intangible 103,962,085.31
assets
II. Accumulative depreciation and accumulative amortization
the reporting period
(1) Depreciation and
amortisation provided 19,020,727.05 1,833,180.49 20,853,907.54
during the year
(2) Transfer-in of the
fixed asset or intangible 44,568,497.05 21,825,066.47 66,393,563.52
assets
the reporting period
(1) Disposal
(2) Other transfer out
(3) Transfer out to fixed
assets or intangible 26,722,401.31 5,760,381.35 32,482,782.66
assets
III. Provision for impairment
the reporting period
(1) Provision
the reporting period
(1) Disposal
(2) Other transfer out
IV. Book value
of the reporting period
beginning of the
reporting period
(2) Investment property with no title certificate
□ Applicable √ Not applicable
(3) Impairment testing of investment properties measured at cost
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
Items Presentation
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Fixed asset 2,183,569,604.60 2,032,571,583.72
Disposal of fixed assets 102,682.10 52,325.85
Total 2,183,672,286.70 2,032,623,909.57
Other notes:
□ Applicable √ Not applicable
Fixed asset
(1) About fixed assets
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Machinery
Office Electronic Production
Items Buildings and Vehicles Total
equipment equipment tools
equipment
I. Original book value:
the reporting period 6.35 9.46 1 03 .90 20
(1) Purchase 10,238,028. 77,477,817. 1,867,912.9 8,870,246.3 53,253,192. 154,823,722.
(2) Transfers from 23,319,329. 22,610,185. 4,748,367.9 234,663,033 285,987,906.
construction in progress 71 32 1 .82 82
(3) Increase of enterprise 2,662,424.0 8,389,276.5 20,597,579. 32,565,723.1
consolidation 5 2 43 5
(4) Transfers from 69,462,483. 69,462,483.7
investment properties 75 5
the reporting period 15 96 6 6 60 42
(1) Disposals or 21,328,863. 2,561,371.9 2,047,210.6 32,440,648. 61,759,125.9
retirements 96 6 6 60 8
(2) Transferred into 96,225,288. 96,225,288.4
investment properties 44 4
II. Accumulative depreciation
the reporting period 1.02 42 2 16 .88 67
(1) Depreciation provided 103,775,74 48,379,505. 4,422,767.1 13,389,626. 117,376,046 293,631,996.
during the year 9.71 42 2 16 .88 36
(2) Transfers from 26,722,401. 26,722,401.3
investment properties 31 1
the reporting period 09 21 5 6 86 4
(1) Disposals or 13,153,104. 2,392,946.1 1,540,050.2 19,763,975. 39,425,600.0
retirements 21 5 6 86 9
(2) Transferred into 44,568,497. 44,568,497.0
investment properties 05 5
III. Provision for impairment
the reporting period
(1) Provision
the reporting period 8
(1) Disposals or
retirements
(2) Write-off in current 1,720,019.6
year 8
IV. Book value
of the reporting period 38.05 2.13 4 6 50 .62 4.60
beginning of the 11.78 8.16 46 0 03 .39 3.72
reporting period
(2) About temporarily idle fixed assets
□ Applicable √ Not applicable
(3) Fixed assets leased through operating lease
□ Applicable √ Not applicable
(4) About fixed assets without title certificate
√ Applicable □ Not applicable
Unit: Yuan (RMB)
The reason why the title certificate has
Items Book value
not been granted
For self-built auxiliary function houses,
Buildings 4,924,739.86 it is unnecessary to apply for title
certificate.
(5) Impairment test of fixed assets
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
Disposal of fixed assets
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Disposal of fixed 102,682.10 52,325.85
assets
Total 102,682.10 52,325.85
Other notes:
None
Items Presentation
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Engineering supplies 973,358,340.87 63,522,676.76
Construction in progress 18,846,939.04 22,488,641.34
Total 992,205,279.91 86,011,318.10
Other notes:
□ Applicable √ Not applicable
Construction in progress
(1) About construction in progress
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Impairm Impairm
Items Book Book Book
ent Book value ent
balance balance value
reserve reserve
Guangxi Vehicle’s 244,200,67 244,200,674.
factory building 4.07 07
Chongqing Vehicle’s 233,605,35 233,605,357. 1,372,641. 1,372,641.
factory building 7.47 47 51 51
Taizhou
Manufacture’s
factory building
Lishui Vehicle’s 197,57 197,574, 1,660 1,660
factory building 4,713.52 713.52 ,261.97 ,261.97
Jiangsu Vehicle’s 19,362, 19,362,9 3,272 3,272
moulds 920.50 20.50 ,592.74 ,592.74
Tianjin Vehicle’s 15,302, 15,302,8 8,403 8,403
moulds 825.35 25.35 ,362.82 ,362.82
Zhejiang Vehicle’s 8,479,2 8,479,22 8,269 8,269
factory building 26.14 6.14 ,289.96 ,289.96
Aima Group’s 3,875,3 3,875,33 10,74 10,74
Software 30.19 0.19 9,759.11 9,759.11
Others 17,719, 17,719,0 12,07 12,07
Total
(2) Movements of important construction in progress projects in the reporting
period
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Project Opening Transfe Other Ending The Project Accumu Where: Interest Source of
Budget Addition
name balance rred to decrea balance proportion of Progre lated Capitalize capitaliza funds
the ses projects ss amount d amount tion rate
fixed investment of of interest of the
assets accounted interest in the current
for budget capitaliz current period
(%) ation period (%)
Guangxi
Vehicle’s 575,140, 244,200,6 244,200,6 Own
factory 000.00 74.07 74.07 funds
building
Taizhou
Manufact
ure’s 48.00 Own funds
factory
building
Chongqi
ng
Vehicle’s 16.00 Own funds
factory
building
Lishui
Vehicle’s 977,320, 1,660,26 195,914,4 197,574,7 39,741, 39,741,69 Funds
factory 000.00 1.97 51.55 13.52 699.34 9.34 raised
building
Total / / /
(3) Provision for impairment of construction in progress in the reporting period
□ Applicable √ Not applicable
(4) Impairment test of construction in progress
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
Engineering supplies
(1) About engineering supplies
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Provision Provision
Items
Book balance for Book value Book balance for Book value
impairment impairment
Engineering
supplies
Total 18,846,939.04 18,846,939.04 22,488,641.34 22,488,641.34
Other notes:
None
(1) Productive biological asset by using the cost measurement model
□ Applicable √ Not applicable
(2) Impairment testing of productive biological asset measured at cost
□ Applicable √ Not applicable
(3) Productive biological asset by using the fair value measurement model
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
(1) About oil and gas assets
□ Applicable √ Not applicable
(2) Impairment test of oil and gas assets
□ Applicable √ Not applicable
Other notes:
None
(1) About right-of -use assets
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Buildings Total
I. Original book value:
reporting period
Newly leased 302,179.38 302,179.38
reporting period
Expiration of lease contract 519,368.35 519,368.35
II. Accumulative depreciation
reporting period
(1) Depreciation provided 8,653,838.43
during the year
reporting period
(1) Disposals 463,071.24 463,071.24
III. Provision for impairment
reporting period
(1) Provision
reporting period
(1) Disposal
IV. Book value
reporting period
the reporting period
(2) Impairment testing of right-of-use assets
□ Applicable √ Not applicable
Other notes:
None
(1) About the intangible assets
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Land use Patent Non patented
Items Software Trademarks Total
rights right technology
I. Original book value:
balance 9.65 805.98
increased in the 680,141.42 374,996,413.04
reporting period
(1) Purchase 5,646,869.13
(2) Internal R&D
(3) Increase due
to business 680,141.42 805,454.11
combinations
(4) Transfers
from 293,311,53 40,732,9
construction-in-p 4.14 54.10
rocess
(5) Transferred
from investment 34,499,601.
properties in the 56
reporting period
decreased in the 04 91,822,602.04
reporting period
(1) Disposal
(2) Transferred
into investment 91,822,602.
properties in the 04
reporting period
balance 3.31 941.90
II. Accumulative amortization
balance 27 31.96
increased in the 845,243.51 47,059,801.24
reporting period
(1) Amortisation
provided during 845,243.51 41,299,419.89
the year
(2) Transferred
from investment 5,760,381.3
properties in the 5
current year
decreased in the 21,825,066.47
reporting period
(1) Disposal
(2) Transferred
into investment 21,825,066.47
properties
balance 84 088.65
III. Provision for impairment
balance
increased in the
reporting period
(1) Provision
decreased in the
reporting period
(1) Disposal
balance
IV. Book value
the end of the 991,766.46 715,925,849.18
reporting period
the beginning of 360,659,23 96,170,6
the reporting 0.38 74.02
period
The proportion of intangible assets formed through internal R&D to the balance of
intangible assets at the end of the period was nil.
(2) About the land use rights without title certificate
□ Applicable √ Not applicable
(3) Impairment test of intangible assets
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
(1) Original book value of the goodwill
□ Applicable √ Not applicable
(2) Provision for impairment of the goodwill
□ Applicable √ Not applicable
(3) Relevant information of the assets group or portfolio of the assets groups where
the goodwill is located
□ Applicable √ Not applicable
Changes in asset groups or portfolio of assets groups
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
(4) Specific method for determining recoverable amount
The recoverable amount is determined at fair value less costs to sell
□ Applicable √ Not applicable
The recoverable amount is determined at the present value of the expected future cash
flows
□ Applicable √ Not applicable
Reasons for the difference between the above information and the information used in the
previous year's impairment test or external information
□ Applicable √ Not applicable
Reasons for the difference between the information used in the impairment test of the
previous year and the actual situation of the current year
□ Applicable √ Not applicable
(5) Performance commitments and impairment of goodwill
There is a performance commitment when goodwill is formed and the reporting period or
the previous period is within the performance commitment period
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Opening Amount Amount amortized Other
Items Ending balance
balance increased in in the reporting decrease
the reporting period
period
Refurbishment
payment
Payment for the
improvement of
the rented fixed
assets
Others 28,290,985.67 15,886,084.98 14,050,980.80 30,126,089.85
Total 43,895,107.41 18,526,517.32 23,093,373.50 39,328,251.23
Other notes:
None
(1) Deferred tax asset before being offset
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance (Restated)
Deductible Deductible
Items Deferred tax Deferred tax
temporary temporary
assets Assets
differences differences
Deductible loss 292,432,400.56 55,865,092.35 198,066,664.29 40,218,297.85
Deferred income 22,568,367.74 5,337,959.51 7,154,444.67 1,598,398.96
Bad debt
provision
Provision of
inventories
Depreciation
book-tax
difference of fixed
assets
Provision for
impairment of 231,255.01 34,688.25 2,734,154.64 582,125.16
fixed assets
Investment 90,000,000.00 22,500,000.00 51,544,467.53 12,804,720.20
losses of
associates
Sales rebates 398,469,160.37 76,718,223.52 437,665,926.26 84,566,172.38
and rewards
Lease liability 55,424,934.33 8,453,886.93 58,542,198.47 9,257,505.85
Share-based 80,660,907.94 19,156,587.56
payment
Accrued 11,735,395.43 2,462,967.14 11,182,837.33 3,983,843.20
expenses
Total 1,080,276,891.61 218,331,380.16 900,421,759.10 182,292,444.24
(2) Deferred tax liabilities before being offset
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance (Restated)
Taxable Taxable
Items Deferred tax Deferred tax
temporary temporary
Liabilities Liabilities
differences differences
Investment income of
financial products 247,823,980.29
Depreciation of fixed
assets
Deferred interest
payments on 1,212,339.44 231,372.12 1,158,116.42 219,920.55
occupancy fees
Profit or loss from
associates
Right-of-use assets 34,112,539.64 5,284,685.06 42,444,180.63 6,860,563.71
Total 312,858,321.11 60,748,797.21 493,696,058.34 112,648,635.56
(3) Net amount of deferred tax assets/liabilities after being offset
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Offset amount
Net amount at
Offset amount at the
Net amount at the beginning
at the end of beginning of
Items the end of the of the
the reporting the reporting
reporting period reporting
period period
period
(Restated)
Deferred tax 50,392,539.41 167,938,840.75 98,269,180.59 84,023,263.65
assets
Deferred tax 50,392,539.41 10,356,257.80 98,269,180.59 14,379,454.97
liability
(4) Details of unrecognised deferred income tax assets
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Deductible temporary 48,539,293.97
differences
Deductible tax losses 46,743,189.14 20,898,005.44
Total 46,743,189.14 69,437,299.41
(5) Unrecognised deferred tax assets arising from deductible tax losses will expire
in the following years
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount at the end
Amount at the year
Year of the reporting Remarks
beginning
period
To expire in 2023 588,361.75
To expire in 2024
To expire in 2025
To expire in 2026 10,066,688.21
To expire in 2027 6,797,513.52 10,242,955.48
To expire in 2028 39,945,675.62
Total 46,743,189.14 20,898,005.44 /
Other notes:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Provision
Items for Book Book Provision for
Book balance Book value
impairmen value balance impairment
t
Three-year
fixed deposit
certificates
Store 238,077,253. 238,077,2 150,975,384 150,975,384.
Decoration 06 53.06 .28 28
Prepayment for
land use right
and equipment
Total
Other notes:
As of December 31, 2023, the Group issued bank acceptance notes with three-year fixed
deposit certificates of RMB 4,831,970,833.33 yuan as the pledge (December 31, 2022:
RMB 3,230,000,000.00 yuan)，Section 10 VII. 31 Assets restricted in ownership or right of
use for details.
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Items Book Provision for Book Book Provision for
Book value
balance impairment value balance impairment
Currency funds 628,724,982 628,724,9 1,096,591,5 1,096,591,54
.33 82.33 49.00 9.00
Other
non-current
assets
Non-current
assets due
within one year
Total
Other notes:
with one-year deposit certificates of RMB 574,654,611.45 yuan as the pledge (December
for financial products (December 31, 2022: 23,600,000.00 yuan); as of December 31,2023,
the Group had no currency funds frozen due to labor litigation (December 31, 2022: RMB
fixed deposit certificate of RMB 6,331,970,833.33 yuan as the pledge (December 31,
(1) Classification of short-term borrowings
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Pledged loans 511,250,000.00
Total 511,250,000.00
Notes to the classification of short-term borrowings:
None
(2) Short-term borrowings overdue but still remaining outstanding
□ Applicable √ Not applicable
Short-term borrowings overdue but still remaining outstanding
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(1) Presentation of notes payable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Categories Ending balance Opening balance
Bank acceptance notes 6,032,204,440.66 6,853,338,997.32
Total 6,032,204,440.66 6,853,338,997.32
Notes payable that due and unpaid at the end of the period were nil. The reason for the
overdue payment is none.
(1) Presentation of accounts payable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Accounts payable 2,459,299,045.99 2,535,832,081.83
Total 2,459,299,045.99 2,535,832,081.83
(2) Significant accounts payable with age exceeding 1 year or overdue
□ Applicable √ Not applicable
Other notes
√ Applicable □ Not applicable
As of December 31, 2023, the Company had no significant accounts payable aged over
one year.
(1) Presentation of receipts in advance
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Factory building rent 19,145,352.20 20,619,060.26
Total 19,145,352.20 20,619,060.26
(2) Significant receipts in advance with age exceeding 1 year
□ Applicable √ Not applicable
(3) Amount and reasons for significant changes in book value during the reporting
period
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
(1) About contract liabilities
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Sales rebates 398,469,160.37 437,665,926.26
Advances from sales of goods 224,607,522.84 198,486,523.06
Advances from service 2,155,584.76 2,277,155.72
Total 625,232,267.97 638,429,605.04
Significant contract liabilities with age exceeding 1 year
□ Applicable √ Not applicable
Other notes:
√ Applicable □ Not applicable
As of December 31, 2023, the Company had no significant contract liabilities aged over
one year.
(1) Employee benefits payable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
I. Short-term
employee 162,471,954.56 1,208,709,124.89 1,199,976,927.52 171,204,151.93
benefits
II. Post-employment
benefits-defined 428,925.94 87,762,921.39 87,851,192.18 340,655.15
contribution plans
III. Dismissal
compensation
IV. Other benefit due
within a year
Total 162,900,880.50 1,296,472,046.28 1,287,828,119.70 171,544,807.08
(2) Presentation of short-term remuneration
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Opening Increase in the Decrease in the
Items Ending balance
balance reporting period reporting period
I. Wages or salaries,
bonuses, allowances and 170,355,783.80
subsidies
II. Staff welfare 3,661,845.20 61,382,270.24 64,920,996.19 123,119.25
III. Social security
contributions
Including: Medical insurance 290,422.92 45,152,780.08 45,266,838.65 176,364.35
Work injury insurance 21,184.34 3,575,303.54 3,579,988.55 16,499.33
Maternity insurance 7,119.60 2,486,623.74 2,493,743.34
IV. Housing fund 490,870.00 31,349,860.78 31,429,161.78 411,569.00
V. Union running costs and
employee education costs
VI. Short-term paid absence
from work
VII. Short-term profit-sharing
plan
VIII. Other insurance for
employees
Total 171,204,151.93
(3) Presentation of the defined contribution plan
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Opening Increase in the Decrease in the Ending
Items
balance reporting period reporting period balance
insurance
Contributions
Total 428,925.94 87,762,921.39 87,851,192.18 340,655.15
Other notes:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Value-added tax 1,843,442.58 7,961,223.12
Corporate income tax 124,817,949.00 134,652,186.50
Personal income tax 4,262,371.99 2,867,285.91
Urban maintenance and 329,977.27 586,791.60
construction tax
Land appreciation tax 4,451,173.83 4,566,646.41
Stamp duty 1,795,237.40 589,381.87
Education Surcharge 236,274.94 419,518.73
Others 2,464,730.99 2,390,662.30
Total 140,201,158.00 154,033,696.44
Other notes:
None
(1) Items Presentation
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Interest payable
Dividends payable
Other payables 628,111,216.14 564,648,489.37
Total 628,111,216.14 564,648,489.37
Other notes:
□ Applicable √ Not applicable
(2) Interest payable
Presentation of classification
□ Applicable √ Not applicable
Significant overdue interest payable:
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
(3) Dividends payable
Presentation of classification
□ Applicable √ Not applicable
(4) Other payables
Other payables stated based on nature of fund
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Deposits 370,849,646.25 304,954,079.97
Money for subscription of 81,505,389.60 134,953,200.00
restricted shares
Expenses accrued 79,984,245.20 72,492,382.44
Payable of equipment & 39,748,430.43 30,572,005.48
engineering projects
Others 56,023,504.66 21,676,821.48
Total 628,111,216.14 564,648,489.37
Significant other payables with age exceeding 1 year
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Cause of failure in repayment
Items Ending balance
or carry-over
Security deposit of suppliers 167,276,991.01 The cash pledge has not been
refunded as the cooperation is
going on
Total 167,276,991.01 /
Other notes:
□ Applicable √ Not applicable
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Long-term borrowings due
within one year
Bonds payable due within 4,999,900.00
one year
Long-term payables due
within one year
Lease liabilities due within 12,568,222.60 5,682,224.67
one year
Total 17,568,122.60 5,682,224.67
Other notes:
None
About other current liabilities
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Short-term bonds payable
Refund payables
Pending output VAT 28,516,899.32 24,329,644.32
Total 28,516,899.32 24,329,644.32
Increase/decrease of the short-term bonds payable:
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
(1) Classification of long-term borrowings
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
(1) Bonds payable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Convertible bonds 1,644,650,128.51
Total 1,644,650,128.51
(2) Details of bonds payable (excluding other financial instruments classified as
financial liabilities, such as preferred shares, perpetual bonds, etc.)
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Openi Amortiza Repaym Share
Issuance Accrued Ending
Bond Face Coupon Issue Bond Issue ng tion of ent in conversion Default
in current interest at balanc
name value rate（%） date term amounts balan discount current in current or not
period face vale e
ce s period period
Febru
Conv 1,644,6
ertible Note -32,336.46 50,128. No
bonds 51
Total / / / / -32,336.46 50,128. /
Note: The coupon rate of convertible corporate bonds is 0.3% in the first year, 0.5% in the
second year, 1.0% in the third year, 1.5% in the fourth year, 1.8% in the fifth year and
(3) Notes to convertible company bonds
√ Applicable □ Not applicable
Time of share
Item Conditions of share conversion
conversion
Convertible bond holders shall convert the convertible September 1,
Convertible bonds from the first trading day six months after the 2023 to
company bonds issuance of the convertible bonds to the maturity date of February
the convertible bonds 22,2029
Approved by CRSC [2022] No.3038, the Company issued 20,000,000 convertible bonds
with a face value of RMB100. The bonds pay interest on February 22 every year and
repay the principal at maturity. The initial conversion price of convertible bonds is 61.29
yuan per share. On 19 May 2023, due to the implementation of the annual equity
distribution in 2022, the conversion price of the Company was adjusted from 61.29 yuan
per share to 39.99 yuan per share in accordance with the relevant provisions of
convertible bonds. On September 16, 2023, the Company implemented the semi-annual
equity distribution in 2023. According to the relevant provisions of convertible bonds, the
conversion price of Aima Convertible Bonds was adjusted from 39.99 yuan per share to
As the above equity transfer is a derivative of the Company's exchange of a fixed amount
of its own equity instruments for a fixed amount of cash or other financial assets, the
Group accounts for it as equity. The fair value of the liability components of these bonds is
estimated at the issue date using market interest rates for similar bonds without warrants,
with the remainder being recognised as the fair value of the equity component and
included in other equity instruments.
Accounting treatment and judgment basis for equity conversion.
□ Applicable √ Not applicable
(4) Note to other financial instruments classified as financial liabilities
Basic information on the outstanding other financial instruments, including preferred
shares, perpetual bonds, etc. at the end of the reporting period
□ Applicable √ Not applicable
Statement of movement of the outstanding other financial instruments, including preferred
shares, perpetual bonds, etc. at the end of the reporting period
□ Applicable √ Not applicable
Note to the basis of other financial instruments classified as financial liabilities
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Lease payments 57,072,622.13 69,772,565.55
Unrecognised financing costs -13,593,562.53 -16,249,928.74
Total 43,479,059.60 53,522,636.81
Other notes:
None
Items Presentation
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
Long-term accounts payable
(1) Long term accounts payable stated based on the nature
□ Applicable √ Not applicable
Special accounts payable
(1) Special accounts payable stated based on the nature
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
About deferred income
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Increase in the Decrease in
Opening Cause of
Items reporting the reporting Ending balance
balance formation
period period
Related
Government
subsidies
assets
Total 198,066,664.29 106,434,406.51 12,068,670.24 292,432,400.56 /
Other notes:
□ Applicable √ Not applicable
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Increase/Decrease (+/ -)
Capital
reserves\
Opening
Shares Bonus surplus Ending balance
balance Others Sub-total
issued shares reserves
turned to
shares
Total
Shares
Other notes:
(1) On April 14, 2023, the sixth meeting of the fifth board of directors of the Company
deliberated and approved the Proposal on the Plan for Profit Distribution and Conversion
of Capital Reserve into Share Capital in 2022. Based on the total share capital of
capital reserve for every 10 shares to all shareholders. After this conversion, the total
share capital of the Company was increased to 862,050,006 shares, with an increase of
share capital of RMB 287,350,002.00 yuan.
(2) On July 25, 2023, the Company repurchased and cancelled 126,000 restricted shares,
which were granted under the Restricted Stock Incentive Plan 2021 for the first time, from
four incentive objects resigned due to personal reasons who were no longer eligible for
incentives, with a decrease of share capital of RMB 126,000.00 yuan.
(3) Since September 2023, the convertible bonds issued by the Company can be
converted into shares of the Company. As of December 31, 2023, a total of 1,001 shares
have been converted, increasing the share capital by RMB 1,001.00 yuan.
(1) Basic information on the outstanding other financial instruments, including
preferred shares, perpetual bonds, etc. at the end of the reporting period
√ Applicable □ Not applicable
The basic information and changes of the current convertible corporate bonds are detailed
in Section 10 VII. 46 Bonds Payable.
(2) Statement of movement of the outstanding other financial instruments,
including preferred shares, perpetual bonds, etc. at the end of the reporting period
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Decrease in current
Financial Opening Increase in current period Ending
period
instruments
Book Book
outstanding Number Number Book value Number Number Book value
value value
Convertible 432,654,022.
bonds 65
Total 20,000,000 400 8,653.09 19,999,600 432,645,369.56
Note to their increase/decrease and the cause(s) of their movement of other equity
instruments in the reporting period and the basis for the corresponding accounting
treatment:
√ Applicable □ Not applicable
Approved by CRSC [2022] No.3038, the Company issued 20,000,000 convertible bonds
with a face value of RMB100. The bonds pay interest on February 22 every year and
repay the principal at maturity. The initial conversion price of convertible bonds is 61.29
yuan per share.
Other notes:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Increase in Decrease in
Items Opening balance Ending balance
current year current year
Capital
premium
(capital stock
premium)
Other capital
reserve
Total 1,977,765,415.63 74,085,025.77 288,437,802.00 1,763,412,639.40
Other notes, including the changes in the current period and the reasons for the changes:
Changes in capital reserve for the year are attributable to:
reserve was reduced by RMB1,087,800.00 yuan;
amortization of restricted stock expenses and stock option expenses;
increased capital reserve by RMB 306,251.85 yuan;
convertible corporate bonds;
recognized in the waiting period, the deferred income tax assets formed in excess are
directly included in the owner's equity, resulting in an increase in capital reserve of RMB
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
Share-based
Payment
Total 134,953,200.00 399,999,784.28 53,447,810.40 481,505,173.88
Other notes, including the changes in the current period and the reasons for the changes:
Changes in Treasury stock in the current year were due to: 1) the restricted stock equity
incentive plan of the Company in 2021 was partially unlocked upon expiration, and the
repurchase obligation was released to reduce Treasury stock by RMB 52,373,030.40
yuan; 2) This year, 126,000 restricted shares were repurchased and cancelled, and
Treasury stock were reduced by RMB 1,074,780.00 yuan; 3) This year, 14,130,524 shares
were repurchased, and Treasury stock were increased by RMB 399,999,784.28 yuan.
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the current period
Less:
Amount Less:
Transferred
incurred Transferred
from other
before from other Attributable to Attributable to
Opening comprehensi Less: Ending
Item income comprehensi parent Minority
balance ve income in Income tax balance
tax in ve income in company after shareholders’
the prior expenses
the the prior tax equity after tax
period to
current period to
retained
period profit or loss
earnings
I ． Other
comprehensiv
e income that
cannot be
reclassified
into profit or
loss
Where:
Remeasureme
nt of a defined
benefit plan
Other
comprehensiv
e income
using the
equity method
that will not be
reclassified to
profit or loss
Change in the
fair value of
other equity
investments
Change in the
fair value of
the entity’s
own credit
risks
II. Other
comprehensiv
e income to be 268.34 268.34 268.34
reclassified to
profit or loss
Other
comprehensiv
e income
using the
equity method
that may be
reclassified to
profit or loss
Change in the
fair value of
other debt
investments
Amount
recognised in
other
comprehensiv
e income
resulting from
the
reclassification
of financial
assets
Provision for
credit
impairment of
other debt
investments
Cash flow
hedge reserve
Exchange
differences on
translation of
foreign 268.34 268.34 268.34
currency
financial
statements
Total other
comprehensiv 268.34 268.34 268.34
e income
Other explanations, including the adjustment to the amount initially recognized when the
effective portion of the profit or loss on the cash flow hedge is transferred to the hedged
item:
None
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Increase in the Decrease in the
Items Opening balance Ending balance
reporting period reporting period
Statutory
surplus 290,784,296.91 140,178,206.59 430,962,503.50
reserve
Discretionary
surplus
reserves
reserve fund
Enterprise
Development
Fund
Others
Total 290,784,296.91 140,178,206.59 430,962,503.50
Notes to surplus reserves, including the change in the current period, the reasons for the
change:
In accordance with the Company Law and the Company's Articles of Association, the
Company appropriates 10% of the profit to the statutory surplus reserves. Where the
accumulated amount of the surplus reserves reaches 50% or more of the Company’s
registered capital, further appropriation is not required.
After the appropriation to the statutory surplus reserves, the Company may appropriate
the discretionary surplus reserves. When approved, the discretionary surplus reserves
can be used to make up for accumulated losses or converted to the paid-in capital.
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Reporting period Previous period
Retained earnings at the end of the
previous period before the adjustment
Total retained earnings under adjustment
at the beginning of the reporting year
(adjustment up +, adjustment down -)
After adjustment: Retained earnings at
the beginning of the reporting period
Plus: net profit attributable to owners of
the parent
Less: Appropriation to statutory surplus
reserves
Appropriation to discretionary surplus
reserves
Appropriation to general risks reserves
Cash dividends declared 1,049,358,585.51 205,250,001.50
Dividends converted to capital
Cancellation of restricted stock cash
-139,020.00
dividends
Retained earnings at the end of the
reporting period
Statement of adjustment of retained earnings at the beginning of the reporting period:
relevant new provisions influencing the retained earnings at the beginning of the reporting
period was RMB 0.00 yuan.
earnings at the beginning of the reporting period was RMB 0.00 yuan.
retained earnings at the beginning of the reporting period was RMB 0.00 yuan.
control influencing the retained earnings at the beginning of the reporting period was RMB
beginning of the reporting period was RMB 0.00 yuan.
Note: 1. On April 15, 2023, after deliberation and approval at the annual general meeting
of shareholders in 2022, based on the total share capital of 574,700,004 shares of the
Company before the implementation of the plan, a cash dividend of RMB 13.04 yuan was
distributed for every 10 shares, with a total cash dividend of RMB 749,408,805.22 yuan.
On September 16, 2023, after deliberation and approval at the third extraordinary general
meeting of shareholders, based on the total share capital of 861,924,656 shares of the
Company before the implementation of the plan, a cash dividend of RMB 3.48 yuan was
distributed for every 10 shares, with a total cash dividend of RMB 299,949,780.29 yuan.
and the eighth meeting of the fifth board of supervisors, deliberated and approved the Bill
on Repurchase and Cancellation of Some Restricted Stocks First Granted under the
Restricted Stock Incentive Plan in 2021, repurchasing and canceling a total of 126,000
restricted shares held by four incentive objects that have been granted but have not yet
been lifted. According to the 2021 Restricted Stock Incentive Plan of Aima Technology
Group Co., Ltd., if the restricted shares cannot be lifted, the Company shall deduct the
cash dividends enjoyed by the incentive object when repurchasing the restricted shares in
accordance with the provisions of the incentive plan. As of the repurchase date, the
Company has cancelled the cumulative cash dividend of RMB 139,020.00 yuan
distributed on the above repurchased restricted shares.
(1) Operating revenue and costs of sales
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the reporting period Amount incurred in the previous period
Items
Revenue Cost Revenue Cost
Primary
business
Other
businesses
Total 21,036,120,862.29 17,562,865,946.73 20,802,212,994.46 17,398,502,632.36
(2) Breakdown of operating revenue and costs of sales
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Total
Classification of Contracts
Operating revenue Costs of sales
Types of commodities
Revenue from electric
bicycles, electric Tricycle, bicycles 20,873,852,542.77 17,455,112,116.87
and accessories
Rental income 45,372,400.74 30,234,754.10
Other revenue 116,895,918.78 77,519,075.76
Classification based on the
operation regions
Domestic 20,810,047,648.92 17,381,543,552.03
Overseas 226,073,213.37 181,322,394.70
Time classification based on
transfer of commodities
Revenue recognition at a
point in time
Revenue recognition over
time
Total 21,036,120,862.29 17,562,865,946.73
Other notes
□ Applicable √ Not applicable
(3) Information about the Group’s performance obligations
√ Applicable □ Not applicable
Unit: Yuan (RMB)
The
Amounts Types of
nature of Whether
assumed by quality
the goods it is the
Timing of Significant the Company assurance
the main
Item performance payment that are provided by
Company responsi
obligations terms expected to the Company
undertak ble
be refunded to and related
es to person
customers obligations
transfer
The The contract Electric
customer price is two-whee
Sales of Quality
obtains generally due lers, Yes 0
goods assurance
control of upon delivery electric
the relevant of the goods tricycle,
goods and receipt of etc.
the invoice
After-
Provision When Advances
sales
of providing from Yes 0 None
service
services services customers
extension
Total / / / / 0 /
(4) Information about apportioning to the residual performance obligations
√ Applicable □ Not applicable
In this reporting period, the aggregate amount of the transaction price allocated to the
performance obligations that are unsatisfied, partially unsatisfied, or without contract
signed was RMB 226,763,107.60 yuan, which is expected to be recognised as revenue in
(5) Significant contract changes or significant transaction price adjustments
□ Applicable √ Not applicable
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Excise tax
Sales tax
Urban maintenance and
construction tax
Education surcharge 19,421,736.06 22,970,992.61
Resource tax
Real estate tax 19,887,759.17 20,144,185.11
Land use tax 9,575,917.13 4,917,111.34
Tax on using vehicle and boat 63,694.22 57,516.00
Stamp duty 24,940,672.76 25,217,252.62
Others 88,089.13 218,331.65
Total 100,346,301.43 105,061,796.17
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Employee benefits 356,478,756.46 340,972,332.90
Advertisement and propaganda 128,252,330.13
expenses
Business travel expenses 42,756,939.75 37,211,421.89
Transportation expenses 18,883,533.99 32,326,093.02
Consulting service 33,078,849.27 25,139,713.34
Others 61,758,378.44 51,091,961.05
Total 641,208,788.04 587,315,848.35
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Employee benefits 255,810,909.14 244,895,671.09
Depreciation and amortization 87,410,736.71 76,108,989.94
Consulting services 56,896,861.55 33,971,119.44
Others 74,158,342.34 77,801,442.20
Total 474,276,849.74 432,777,222.67
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Employee benefits 265,547,642.84 212,768,918.62
Depreciation and amortization 112,408,208.42 71,713,991.80
Professional service fees 163,637,390.70 185,359,756.90
Others 47,873,979.56 36,842,370.69
Total 589,467,221.52 506,685,038.01
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Interest income -437,121,544.42 -394,300,036.06
Interest expenses 24,713,122.27 8,693,658.65
Service charge expenses 2,133,895.19 1,941,279.12
Foreign exchange differences -2,259.87 967,800.79
Total -410,276,786.83 -382,697,297.50
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Amount incurred in the Amount incurred in the
reporting period previous period
Government subsidies related to
the ordinary course of business
Value added tax credit 29,826,884.74 46,432.16
Others 1,107,950.00 15,150.00
Total 173,159,360.74 78,130,046.97
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in
Items
reporting period the previous period
Return on investment from financial
products
Long-term equity investment income
-28,590,454.64 -21,624,009.83
under the equity method
Investment income or loss from disposal
of
long-term equity investments
Return on investment during the holding of
financial assets held for trading
Losses arising from the acquisition of 4,627,046.25
control of subsidiaries and the
remeasurement of the original long-term
equity investment at fair value on the
combination date
Total -21,396,254.38 -3,687,987.74
Other notes:
None
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Source of income arising from Amount incurred in the Amount incurred in the
change in fair value reporting period previous period
Financial assets held for trading -17,226,650.77 -12,120,000.00
Where: Gains from changes in fair
value of derivative financial
instruments
Total -17,226,650.77 -12,120,000.00
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Impairment loss for accounts -15,456,572.30 -7,138,208.26
receivable
Impairment loss for other -15,460.37 25,993,352.29
receivables
Total -15,472,032.67 18,855,144.03
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
I. Loss for write-down of
inventories and Impairment loss -3,823,176.99 -63,577.07
for contract assets
II. Impairment loss for fixed -3,335,891.40
assets
Total -3,823,176.99 -3,399,468.47
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Loss on disposal of fixed 456,784.34 1,286,052.98
assets
Total 456,784.34 1,286,052.98
Other notes:
None
About non-operating income
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in Amount incurred in Amount counted to the
Items the reporting the previous current non-operating
period period profit or loss
Total gain on disposal of
non-current assets
Including: Gains on
disposal of fixed assets
Gains on disposal of
intangible assets
Gain on exchange of
non-monetary assets
Donations accepted
Government subsidies 6,048,790.15 12,908,508.78 6,048,790.15
Penalty income 16,381,376.97 9,760,705.37 16,381,376.97
Accident claims 4,891,549.05 1,409,233.00 4,891,549.05
Others 13,261,100.58 10,120,493.32 13,261,100.58
Total 40,582,816.75 34,198,940.47 40,582,816.75
Other notes:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount counted to
Amount incurred in Amount incurred in the current
Items
the reporting period the previous period non-operating profit
or loss
Total losses on damage and
retirement of non-current 5,640,313.40 6,491,365.24 5,640,313.40
assets
Where: Loss on disposal of
fixed assets
Loss on disposal of
intangible assets
Loss on exchange of
non-monetary assets
Donation expenditures for
public interest
Others 9,393,976.23 6,841,473.22 9,393,976.23
Total 21,155,434.76 40,844,163.45 21,155,434.76
Other notes:
None
(1) Statement of income tax expenses
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Current tax 401,379,769.33 335,674,890.22
Deferred tax -84,368,767.02 18,768,600.19
Total 317,011,002.31 354,443,490.41
(2) Process of adjustment of accounting profit and income tax expenses
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the
Items
reporting period
Total profit 2,213,357,953.92
Income tax expense at the statutory or applicable tax rate 553,339,488.48
Effect of different tax rates for some subsidiaries -163,855,827.40
Adjustments in respect of current tax of previous periods 1,317,659.04
Income not subject to tax -1,908,437.13
Costs, expenses and losses not deductible for tax 4,556,855.71
The effect of using deductible losses of deferred income tax assets
-11,743,432.86
that have not been recognised in the previous period
Deductible temporary differences of deferred income tax assets
and tax losses not recognised
Tax preferences such as R&D expenses super deduction -70,353,207.66
Effect on opening deferred tax of change in the tax rate -745,794.90
Income tax expenses 317,011,002.31
Other notes:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
For details, please refer to Section 10 VII. 57 Other comprehensive income
(1) Cash relating to operating activities
Other cash received relating to operating activities
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Interest income 181,475,377.84 176,106,716.62
Government subsidy 242,639,052.42 170,221,879.89
Recovery of engineering claims 24,164,117.84
Liquidated damage income 15,561,226.65 9,495,487.50
Collection of security deposit and
advance payment
Collection of bill deposits 188,866,227.06
Others 20,928,333.31 18,602,244.33
Total 724,345,794.56 404,578,051.90
Notes to other cash received relating to operating activities:
None
Other cash paid relating to operating activities
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Administrative expenses and 272,474,014.29
R&D expenses paid in cash
Selling expense paid in cash 258,934,286.79 201,212,849.54
Payment of bill deposit 150,254,422.39 79,544,463.13
Bank service charge paid 2,133,895.19 1,941,279.12
Others 25,176,224.34 11,816,296.94
Total 713,979,383.69 566,988,903.02
Notes to other cash paid relating to operating activities:
None
(2) Cash relating to investment activities
Cash received relating to significant investing activities
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Recovery fixed deposit of
financial products
Total 3,798,013,400.00 1,148,910,000.00
Notes to cash received relating to significant investing activities
None
Cash paid relating to significant investing activities
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Purchase of financial products
and fixed deposit certificates
Investments in associates 69,285,700.00 47,502,800.00
Total 4,201,598,392.90 2,521,302,800.00
Notes to cash paid relating to significant investing activities
None
Other cash received relating to investing activities
□ Applicable √ Not applicable
Other cash paid relating to investing activities
□ Applicable √ Not applicable
(3) Cash relating to financing activities
Other cash received relating to financing activities
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Recovery of loan deposits 511,250,000.00
Total 511,250,000.00
Notes to other cash received relating to financing activities:
None
Other cash paid relating to financing activities
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Payment of loan deposits 511,250,000.00
Cash outflows relating to long
term rented assets
Repurchase shares 399,999,784.28
Purchase of the Minority
shareholders’ equity
Repurchase of restricted shares 1,074,780.00
Total 412,292,512.63 517,454,858.42
Notes to other cash paid relating to financing activities:
None
Changes in liabilities arising from financing activities
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Item Opening Increase in current period Decrease in current period Ending balance
balance Cash Non-cash Non-cash
Cash change
change changes changes
Short-term 511,250,000. 511,250,000.
borrowings 00 00
Dividends 1,049,358, 1,049,358,58
payable 585.51 5.51
Bonds payable
(including
those due 32,336.46
within one
year)
Lease
liabilities
(including 59,204,861.4 2,922,512.
those due 8 07
within one
year)
Total 32,336.46
(4) Description of cash flows presented on a net basis
□ Applicable √ Not applicable
(5) Significant activities and financial effects that do not involve current cash
receipts and payments but affect the financial position of the enterprise or may
affect the cash flow of the enterprise in the future
□ Applicable √ Not applicable
(1) Notes to the statement of cash flows
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount in the Amount in the previous
Supplementary information
reporting period period
Net profit 1,896,346,951.61 1,872,542,828.78
Plus: Provisions for asset impairment 3,823,176.99 3,399,468.47
Loss from impairment of credit 15,472,032.67 -18,855,144.03
Depreciation of fixed assets, depletion of oil and
gas asset, depreciation of productive biological 293,631,996.36 213,431,999.00
asset
Amortization of right-of-use assets 8,653,838.43 9,032,240.71
Depreciation and amortization of investment 20,853,907.54 15,941,635.01
property
Amortization of intangible assets 41,299,419.89 30,383,432.14
Amortization of long-term prepaid expenses 23,093,373.50 18,353,328.15
Loss (income is stated in “-”) from disposal of fixed
assets, intangible assets and other long-term 5,183,529.06 5,584,963.80
assets
Loss on retirements of fixed assets (profit is stated
with “-”)
Loss from change of fair value (profit is stated with
“-”)
Financial expenses (income is stated with “-”) -213,832,837.26 -196,253,286.61
Investment loss (income is stated with “-”) 21,396,254.38 3,687,987.74
Decrease of the deferred tax asset (increase is
-80,345,569.85 4,820,369.66
stated with “_”)
Increase of deferred tax liability (decrease is stated
-4,023,197.17 13,948,230.53
with “-”)
Decrease of inventories (Increase is stated with “-”) 281,199,216.13 -14,885,655.50
Decrease in receivables from operating
-82,581,119.97 116,574,148.98
activities (Increase is stated with “-”)
Increase in payables from operating activities
-550,594,554.10 2,846,422,709.33
(Decrease is stated with “-”)
Share-based payments 70,168,931.98 80,660,907.94
Others 97,304,232.94 34,543,952.84
Net cash flows arising from operating activities 1,864,276,233.90 5,051,454,116.94
Capital converted from liabilities
Convertible company bonds due within a year
Fixed assets under finance lease
Ending cash balance 6,034,424,497.73 5,536,066,687.82
Less: Opening balance of cash 5,536,066,687.82 2,846,143,310.70
Plus: Ending balance of cash equivalent
Less: Opening balance of cash equivalent
Net increase of cash and cash equivalents 498,357,809.91 2,689,923,377.12
(2) Net cash paid for acquisition of subsidiary in the reporting period
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount
Cash or cash equivalents paid for business combinations in
the current period
Less: Cash and cash equivalents held by the Company on
the acquisition date
Net cash paid to acquire subsidiaries -33,504,341.91
Other notes:
None
(3) Net cash received from disposal of subsidiary in the reporting period
□ Applicable √ Not applicable
(4) Composition of cash and cash equivalents
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
I. Cash 6,034,424,497.73 5,536,066,687.82
Including: Cash in stock
Bank deposit available for payment at 6,034,424,497.73 5,536,066,687.82
any time
Other monetary fund used for payment
at any time
Due from central bank available for
payment
Due from banks
Call loan to banks
II. Cash equivalents
Including: bond investment due within
three months
III. Ending balance of cash and cash 6,034,424,497.73 5,536,066,687.82
equivalents
Including ： Use of restricted cash and
cash equivalents by the parent
company or subsidiaries within the
Group
(5) Limited scope of use but still presented as cash and cash equivalents
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Item Current amount Reason
Currency funds 628,724,982.33 Pledge for issuing bank
acceptance draft
Total 628,724,982.33 /
(6) Currency funds out of the scope of cash and cash equivalents
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount of prior
Item Current amount Reason
period
Bill guarantee deposits 58,179,842.00 602,379,488.38 Deposits and frozen
Certificates of deposit funds with long term
and interest due within 574,654,611.45 470,461,808.22 and weak liquidity
one year expected to expire
Judicial frozen
monetary funds
Financial products
purchased
Total 632,834,453.45 1,097,388,382.47 /
Other notes:
□ Applicable √ Not applicable
Note to the description of item “Others” and adjusted amounts for adjusting the closing
balance of the previous year:
□ Applicable √ Not applicable
(1) Foreign currency monetary items
√ Applicable □ Not applicable
In: Yuan
Item Closing balance of
Ending balance of Translation
translation in RMB
foreign currency exchange rate
Currency funds - - 57,463,879.61
Including: USD 8,113,267.20 7.0827 57,463,837.60
EUR
HKD 46.36 0.9062 42.01
Trade receivables - - 57,396,204.90
Including: USD 8,024,547.55 7.0827 56,835,462.93
EUR 71,348.48 7.8592 560,741.97
HKD
Other payables - - 38,004.18
Including: USD 5,020.68 7.0827 35,559.97
EUR 311.00 7.8592 2,444.21
Other notes:
None
(2) Note to overseas operating entities, including important overseas operating
entities, which should be disclosed about its principal business place, function
currency for bookkeeping and basis for the choice. In case of any change in
function currency, the cause should be disclosed.
□ Applicable √ Not applicable
(1) As lessee
√ Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable √ Not applicable
Lease expenses for short-term leases or low-value assets that are simplified
□ Applicable √ Not applicable
Sale and leaseback transactions and basis of judgment
□ Applicable √ Not applicable
Total cash outflows related to leases is 10,024,978.61 (Unit: Yuan (RMB))
(2) As lessor
Operating leases as lessors
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Including: Income related to variable lease payments
Item Rental income
not included in lease receipts
Rental of
buildings
Total 45,372,400.74
Finance leases as lessors
□ Applicable √ Not applicable
Reconciliation of undiscounted lease receipts to net lease investments
□ Applicable √ Not applicable
Undiscounted lease receipts over the next five years
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Annual undiscounted lease receipts
Item
Ending balance Opening balance
Within 1 year, inclusive 38,931,449.25 21,123,816.81
Over 5 years 25,000.00
Total undiscounted lease
receipts after five years
(3) Recognise profit or loss on sales of finance leases as a manufacturer or dealer
□ Applicable √ Not applicable
Other notes:
None
□ Applicable √ Not applicable
(1) Presented by nature of expenses
VIII. Research and development expenditure
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in the
Items
reporting period previous period
Employee benefits 265,547,642.84 212,768,918.62
Depreciation and 112,408,208.42 71,713,991.80
amortization
Professional service fees 163,637,390.70 185,359,756.90
Others 47,873,979.56 36,842,370.69
Total 589,467,221.52 506,685,038.01
Including: Expenditures for
research and development
Capitalized research and
development expenditure
Other notes:
None
(2) Research and development expenditure eligible for capitalization
□ Applicable √ Not applicable
Significant capitalized research and development projects
□ Applicable √ Not applicable
Provision for impairment of development expenses
□ Applicable √ Not applicable
Other notes:
None
(3) Important outsourcing research projects
□ Applicable √ Not applicable
IX. Changes in scope of consolidation
√ Applicable □ Not applicable
(1) Business combinations not under common control in the current period
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Revenue
Net profit of Cash flow of
Deter from the
the acquiree the acquiree
Equity Equity minatio acquiree
Name of Equity Cost of from the from the
acquisitio acquisit Purchase n basis from the
the acquisition equity acquisition acquisition
n ratio ion date of acquisition
acquire date acquisition date to the date to the
（%） method purcha date to the
end of the end of the
se date end of the
period period
period
Geling May Equity
May 31, 52,565,148. Acquisi 204,757,530. 99,160,746.7
New 60.01% 31,2023 deliver 9,520,307.18
Energy y
Other notes:
In August 2021, the Company acquired 49.01% equity of Geling New Energy at RMB
carrying amount of equity held by the Group was RMB 38,383,319.85 yuan. On that date,
the Group acquired 11% equity interest in Geling New Energy at a consideration of RMB
(2) Cost of combination and goodwill
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Consolidation costs Geling New Energy
--Cash 9,554,782.42
--Fair value of non-cash assets
--Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of equity held before the
acquisition date at the acquisition date
--Others
Total consolidation costs 52,565,148.52
Less: Share of fair value of identifiable net
assets acquired
Amount of goodwill/combination cost less than
-99,502.54
fair value of identifiable net assets acquired
Determination method of fair value of combination cost:
□ Applicable √ Not applicable
Fulfillment of performance commitments:
□ Applicable √ Not applicable
The main reasons for the formation of large goodwill:
□ Applicable √ Not applicable
Other notes:
None
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Geling New Energy Technology (Shandong) Co., Ltd.
Fair value at acquisition date Carrying amount at acquisition date
Assets:
Current assets 109,678,741.32 106,843,611.89
Non-current
assets
Total assets 147,433,231.62 144,598,102.19
Liabilities:
Current liabilities 59,667,004.70 59,667,004.70
Total liabilities 59,667,004.70 59,667,004.70
Net assets 87,766,226.92 84,931,097.49
Less: Minority
interest
Net assets
acquired
Determination method of fair value of identifiable assets and liabilities:
Asset based valuation
Contingent liabilities of the acquiree assumed in a business combination:
None
Other notes:
None
(4) Gains or losses arising from remeasurement of equity held before the
acquisition date at fair value
Whether there are transactions that achieve business combination step by step through
multiple transactions and obtain control during the reporting period
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount of
other
Gains or Determination comprehensiv
losses method and e income
Book value
Acquisition Acquisition Acquisition Acquisition Fair value arising from main related to the
of originally
date of the ratio of cost of method of of remeasurem assumptions of original equity
held equity
Name of original originally originally originally previously ent of the fair value of held before
before the
the equity held held equity held equity held equity held equity previously the original the
acquisition
acquiree before the before before before at held equity equity held acquisition
date at the
acquisition acquisition acquisition acquisition acquisition at fair value before the date
acquisition
date date (%) date date date before the acquisition date transferred to
date
acquisition on the investment
date acquisition date income or
retained
earnings
Geling
New July 2021 49% Purchase
.00 85 6.10 5 valuation
Energy
Other notes:
None
(5) Description of the combination consideration or fair value of the acquiree's
identifiable assets and liabilities that cannot be reasonably determined on the
acquisition date or at the end of the current period
□ Applicable √ Not applicable
(6) Other notes
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
Whether there are transactions or events that have lost control of subsidiaries in the
current period
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
Whether there is a situation in which the investment in a subsidiary is disposed of step by
step through multiple transactions and the control right is lost in the current period
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
Explain the changes in the scope of consolidation (e.g., new subsidiaries, liquidation
subsidiaries, etc.) caused by other reasons and relevant information:
√ Applicable □ Not applicable
Proportio
Total n of voting
shareholdin rights Reason for
Name of Place of Nature of
g ratio of the enjoyed new
subsidiary registration business
Company by the subsidiary
(%) Company
(%)
Tianjin New
manufacturin
Electromechanica Tianjin 100 100 establishmen
g industry
l t
New
Guangdon technical
Yangjiang Xiaoma 100 100 establishmen
g service
t
New
Wholesale
Aima Taizhou Zhejiang 100 100 establishmen
and retail
t
New
technical
Guangxi Xiaoma Guangxi 60 60 establishmen
service
t
Aima Electric New
Zhejiang Services 100 100
Drive establishmen
t
New
manufacturin
Vietnam Aima Vietnam 100 100 establishmen
g industry
t
Acquisition
Geling New manufacturin
Shandong 60.01 60.01 during the
Energy g industry
year
Acquisition
Wholesale
Aiska Zhejiang 60.01 60.01 during the
and retail
year
New
technical
Tianjin Xiaoma Tianjin 100 100 establishmen
service
t
New
technical
Wanning Xiaoma Hainan 100 100 establishmen
service
t
New
manufacturin
Indonesia Aima Indonesia 100 100 establishmen
g industry
t
Wholesale
Aima Nanfang Jiangsu 100 100 cancellation
and retail
New
technical
Taizhou Xiaoma Zhejiang 100 100 establishmen
service
t
New
manufacturin
Aima Lianxiang Tianjin 51 51 establishmen
g industry
t
New
manufacturin
Aima Shengsituo Tianjin 51 51 establishmen
g industry
t
Note: Aiska is a wholly-owned subsidiary of Geling New Energy.
□ Applicable √ Not applicable
X. Interests in other entities
(1) Composition of the enterprise group
√ Applicable □ Not applicable
Unit: Ten Thousand Yuan (RMB)
Subsidiary Principal Registered Place of Nature of Shareholding Obtain
Name place of capital registration business ratio (%) Mode
business Direct Indirect
Tianjin Vehicle Tianjin 10,000.00 Tianjin Manufacture 100 Establishment
Henan Vehicle Henan 10,000.00 Henan Manufacture 100 Establishment
Jiangsu Vehicle Jiangsu 44,000.00 Jiangsu Manufacture 100 Establishment
Guangdong Manufacture
Guangdong 10,000.00 Guangdong 100 Establishment
Vehicle
Zhejiang Vehicle Zhejiang 10,000.00 Zhejiang Manufacture 100 Establishment
Xiaopa Electric Shanghai 200.00 Shanghai Services 100 Establishment
Tianjin Sports Tianjin 1,000.00 Tianjin Manufacture 100 Establishment
Wholesale
Xiaoma Network Chongqing 1,000.00 Chongqing 100 Establishment
and retail
Spozman Tianjin 1,000.00 Tianjin Manufacture 100 Establishment
Guangxi Vehicle Guangxi 10,000.00 Guangxi Manufacture 100 Establishment
Tianjin Tianli Tianjin 500.00 Tianjin Manufacture 100 Establishment
Wholesale
Aima Chongqing Chongqing 1,000.00 Chongqing 100 Establishment
and retail
Chongqing Manufacture
Chongqing 10,000.00 Chongqing 100 Establishment
Vehicle
Zhejiang Sales Zhejiang 1,000.00 Zhejiang Manufacture 100 Establishment
Taizhou Manufacture
Zhejiang 40,000.00 Zhejiang 100 Establishment
Manufacture
Aima Venture Investment
Zhejiang 3,000.00 Zhejiang 100 Establishment
Capital platform
Lishui Vehicle Zhejiang 10,000.00 Zhejiang Manufacture 100 Establishment
Suoteng HK $63 Wholesale
Hong Kong Hong Kong 100 Establishment
Technology million and retail
Wholesale
Aima Singapore Singapore S $1000 Singapore 100 Establishment
and retail
Chongqing
Chongqing 5,000.00 Chongqing Manufacture 100 Establishment
Electromechanical
Xiaoma Technical
Chongqing 5,000.00 Chongqing 100 Establishment
Intelligence service
Aima Vehicle Wholesale
Chongqing 5,000.00 Chongqing 100 Establishment
Service and retail
Aima Logistics Chongqing 5,000.00 Chongqing Logistics 55 Establishment
Wholesale
Super Universe Chongqing 2,000.00 Chongqing 100 Establishment
and retail
Tianjin
Tianjin 5,000.00 Tianjin Manufacture 100 Establishment
Electromechanical
Wholesale
Aima Taizhou Zhejiang 1,000.00 Zhejiang 100 Establishment
and retail
Technical
Guangxi Xiaoma Guangxi 5,000.00 Guangxi 60 Establishment
service
Aima Electric
Zhejiang 6,000.00 Zhejiang Services 100 Establishment
Drive
VND190,440 Manufacture
Vietnam Aima Vietnam Vietnam 100 Establishment
million
Manufacture Consolidation
Geling New not under
Shandong 8,922.00 Shandong 60.01
Energy common
control
Consolidation
Wholesale not under
Aiska Zhejiang 1,000.00 Zhejiang 60.01
and retail common
control
Technical
Tianjin Xiaoma Tianjin 1,000.00 Tianjin 100 Establishment
service
Technical
Wanning Xiaoma Hainan 2,000.00 Hainan 100 Establishment
service
IDR 169,543
Indonesia Aima Indonesia Indonesia Manufacture 100 Establishment
million
Consolidation
under
Suiwanwan Tianjin 500.00 Tianjin Services 100
common
control
Technical
Yangjiang Xiaoma Guangdong 50.00 Guangdong 100 Establishment
service
Taizhou Xiaoma Zhejiang 700.00 Zhejiang Services 100 Establishment
Aima Shengsituo Tianjin 500.00 Tianjin Manufacture 51 Establishment
Aima Lianxiang Tianjin 1,000.00 Tianjin Manufacture 51 Establishment
Description of the difference between shareholding ratio and voting right ratio in
subsidiaries:
None
The basis for holding half or less of the voting rights but still controlling the investee and
holding more than half of the voting rights but not controlling the investee:
None
For significant structured entities included in the scope of consolidation, the basis of
control is as follows:
None
Basis for determining whether the company is an agent or a principal:
None
Other notes:
None
(1) Significant non-wholly owned subsidiaries
□ Applicable √ Not applicable
(2) Key financial information of significant non-wholly owned subsidiaries
□ Applicable √ Not applicable
(3) Significant restrictions on the use of enterprise group assets and the
settlement of enterprise group debts
□ Applicable √ Not applicable
(4) Financial or other support provided to structured entities included in the scope
of consolidated financial statements
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
the subsidiary is still controlled
√ Applicable □ Not applicable
(1) Description of changes in owners' equity in subsidiaries
√ Applicable □ Not applicable
In November 2023, the Company acquired 22% and 5% of Spozman's equity from the
minority shareholders Zhu Yu and Li Yuan for a total consideration of RMB 5,137,857.00
yuan. Upon completion of the acquisition, the Group holds 100% equity interest in
Spozman. As a result of this transaction, the minority interest in the consolidated financial
statements decreased by RMB 5,444,108.84 yuan and the capital reserve increased by
RMB 306,251.85 yuan.
(2) Effect of transactions on Minority shareholders’ equity and owners' equity
attributable to the parent company
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Spozman
Acquisition cost/disposal consideration 5,137,857.00
--Cash 5,137,857.00
--Fair value of non-cash assets
Total purchase cost/disposal consideration 5,137,857.00
Less: Share of net assets of subsidiaries
calculated based on the proportion of equity
acquired/disposed
difference -306,251.84
Including: Adjustment of capital reserve 306,251.84
Adjustment of surplus reserve
Adjusted retained earnings
Other notes
□ Applicable √ Not applicable
√ Applicable □ Not applicable
(1) Significant joint ventures or associates
√ Applicable □ Not applicable
Shareholding ratio Accounting for
Name of Principal
Place of Nature of (%) investments in
joint venture place of
registration business joint ventures or
or associate business Direct Indirect
associates
Today Zhejiang Zhejiang Manufacturing 10.42 Equity method
Sunshine industry
Tianjin Tianjin Tianjin Manufacturing 40.00 Equity method
Jiema industry
Taizhou Zhejiang Zhejiang Venture 55.90 Equity method
Jinfu capital
Beijing Beijing Beijing Services 38.00 Equity method
Zhongzhong
Chongqing Chongqing Chongqing Manufacturing 35.00 Equity method
Xintai industry
Guangxi Guangxi Guangxi Manufacturing 1.97 Equity method
Ningfu industry
Description of the difference between shareholding ratio and voting right ratio in joint
ventures or associates:
According to the Taizhou Jinfu Partnership Agreement, as one of the limited partners, the
Company has no right to unilaterally determine the relevant activities of the Partnership,
so it does not control Taizhou Jinfu, but has a significant impact on it.
The basis for holding less than 20% of the voting rights but having significant influence, or
holding 20% or more of the voting rights but not having significant influence:
According to Today Sunshine's articles of association, the Company has the right to
appoint directors to its board of directors, and accordingly has the right to participate in the
decision-making of its financial and operating decisions, thereby exerting significant
influence on it.
According to the resolution of the shareholders' meeting of Guangxi Ningfu, the Company
appoints directors to its board of directors, and accordingly has the right to participate in
the decision-making of its financial and operating decisions, thus exerting significant
influence on it.
(2) Key financial information of significant joint ventures
□ Applicable √ Not applicable
(3) Key financial information of significant associates
□ Applicable √ Not applicable
(4) Summary financial information of insignificant joint ventures and associates
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Closing balance/amount Opening balance/amount
incurred in the current period incurred in prior period
Joint venture:
Total carrying amount of
investments
Total of the following items calculated by shareholding ratio
--Net profit
--Other comprehensive
income
--Total comprehensive
income
Associates:
Total carrying amount of 127,263,995.91 128,152,070.40
investments
Total of the following items calculated by shareholding ratio
--Net profit -28,590,454.64 -21,624,009.83
--Other comprehensive
income
--Total comprehensive
income
Other notes
None
(5) Description of significant restrictions on the ability of joint ventures or
associates to transfer funds to the Company
□ Applicable √ Not applicable
(6) Excess losses of joint ventures or associates
□ Applicable √ Not applicable
(7) Unrecognized commitments related to investments in joint ventures
□ Applicable √ Not applicable
(8) Contingent liabilities related to investments in joint ventures or associates
□ Applicable √ Not applicable
□ Applicable √ Not applicable
statements
Description of structured entities not included in the scope of consolidated financial
statements:
□ Applicable √ Not applicable
□ Applicable √ Not applicable
X. Government Grants
period
□ Applicable √ Not applicable
Reasons for failing to receive the estimated amount of government subsidies at the
estimated time point
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount Other
Transfer to
Financial Amount of new included in changes
Opening other income in Related to
statement subsidies in the non-operating in the Ending balance
balance the current assets/income
items current period income in the current
period
current period period
Deferred
income
Total 198,066,664.29 106,434,406.51 12,068,670.24 292,432,400.56 /
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the current Amount incurred in prior
Type
period period
Asset-related 12,068,670.24 9,937,776.17
Related to income 130,155,855.76 68,130,688.64
Other 6,048,790.15 12,908,508.78
Total 148,273,316.15 90,976,973.59
Other notes:
None
XI. Risks Related to Financial Instruments
√ Applicable □ Not applicable
The Company is exposed to various risks of financial instruments in its daily activities,
mainly including credit risk, liquidity risk and market risk. The Company's main financial
instruments include currency funds, accounts receivable, receivables financing, notes
payable and accounts payable. The risks associated with these financial instruments and
the risk management strategies adopted by the Company to mitigate these risks are
described below.
(1) Credit risk
The Company only deals with recognized and reputable third parties. In accordance with
the Company's policy, a credit review is required for all customers who require credit
transactions. In addition, the Company continuously monitors the balance of accounts
receivable to ensure that the Company is not exposed to significant bad debt risks. For
transactions not settled in the functional currency of the relevant business unit, the
Company does not provide credit transaction conditions unless specifically approved by
the Company's credit control department.
As the counterparties of monetary funds, financial assets held for trading, receivables
financing, other non-current assets and certificates of deposit due within one year are
banks with good reputation and high credit rating, these financial instruments have low
credit risk.
The Company's other financial assets include accounts receivable and other receivables.
The credit risk of these financial assets arises from the default of the counterparty, and the
maximum risk exposure is equal to the carrying amount of these instruments.
Since the Company only deals with recognized and reputable third parties, no collateral is
required. Credit risk is centrally managed by customer/counterparty, geographical region
and industry. There is no significant concentration of credit risk within the Company as the
Company's accounts receivable are widely dispersed across the customer base.
For the quantitative data of the Company's credit risk exposure arising from notes
receivable, accounts receivable and other receivables, please refer to "Section VII. 5
Accounts receivable" and "Section VII. 9 Other receivables".
(2) Liquidity risk
The Company's objective is to use a variety of financing means to maintain the balance
between sustainability and flexibility of financing. The Company finances its operations
through funds generated from operations and borrowings.
The following table summarizes the maturity analysis of financial liabilities based on
undiscounted contractual cash flows:
December 31, 2023
Financial liabilities Within 1 year 2 to 3 years Over 3 years Total
years
Notes payable
Trade payables
Other payables
Lease liabilities
.14 4 5 3
Non-current
liabilities due within 20,179,767.71
one year
Bonds payable 5,999,880.00
.00 00 0.00 0.00
Total
(3) Market risk
The Company is exposed to transactional exchange rate risk. Such risks arise from sales
or purchases made by an operating unit in a currency other than its functional currency. As
the amount of the Company's foreign currency business is not significant, the Company
believes that changes in foreign exchange rates will not have a significant impact on the
Company's financial statements.
(1) The Company conducts hedging business for risk management
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
(2) The Company conducts qualifying hedging business and applies hedge
accounting
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
(3) The Company carries out hedging business for risk management and expects
to achieve risk management objectives but does not apply hedge accounting
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
(1) Transfer Method Classification
□ Applicable √ Not applicable
(2) Financial assets derecognised as a result of transfer
□ Applicable √ Not applicable
(3) Transferred financial assets with continuing involvement
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
XII. Disclosure of Fair Value
based on the fair value
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Fair value at the end of the reporting period
Level 3
Level 2 fair fair
Items Level 1 fair value
value value Total
measurement
measurement measu
rement
I. Continuous fair value
measurement
(I) Financial assets held for 176,041,430.92 176,041,430.92
trading
value through profit or loss
(1) Debt instrument
investment
(2) Equity instrument
investment
(3) Derivative financial assets
at fair value through profit or
loss
(1) Debt instrument
investment
(2) Equity instrument
investment
(II) Other debt investment
(III) Other equity instrument
investment
(IV) Investment properties
purpose
to be assigned after
appreciation.
(V) Biological assets
asset
(VI) Receivables financing 8,893,241.61 8,893,241.61
Total assets measured
based on fair value
(VI) Financial liabilities held for
trading
value through profit or loss
Where: Issued transactional
bonds
Derivative financial liabilities
Others
designated at fair value
through profit or loss
Total liabilities continuously
measured based on fair
value
II. Non-continuous fair value
measurement
(I) Held-for-sale assets
Total assets
non-continuously measured
based on fair value
Total liabilities
non-continuously measured
based on fair value
continuous and non-continuous first level fair value
□ Applicable √ Not applicable
valuation technique as used, nature of important parameters and quantitative
information
□ Applicable √ Not applicable
valuation technique as used, nature of important parameters and quantitative
information
□ Applicable √ Not applicable
on adjusted information and unobservable parameters between the book value at
beginning and end of the period
□ Applicable √ Not applicable
levels incurred in the reporting period, state the cause of conversion and determine
conversion time point
□ Applicable √ Not applicable
change
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
XIV. Related parties and transactions
□ Applicable √ Not applicable
Refer to the Notes for details of the Company's subsidiaries
√ Applicable □ Not applicable
For details of the Company's subsidiaries, please refer to “Section 10. 1 Equity in
subsidiaries”.
Refer to the Notes for details of the Company's major joint ventures or associates
√ Applicable □ Not applicable
Please refer to Section 10 “VII. 17 Long-term Equity Investments” and “X. 3 Equity in Joint
Ventures or Associates” for the important joint ventures or associates of the Company.
Other joint ventures or associates that had related-party transactions with the Company in
the reporting period, or had related-party transactions with the Company in the previous
period and formed a balance are as follows
√ Applicable □ Not applicable
Name of joint venture or associate Relationship with the Company
Beijing Zhongzhong Travel Technology An associate
Co., Ltd.
Tianjin Jiema Electric Technology Co., An associate in which the controlling shareholder
Ltd. acts as a director
Other notes
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Names of other related parties Relationship between other related parties and the
Company
Shandong Aidebang Intelligent A joint stock company of an associate
Technology Co., Ltd.
Taizhou Aidebang Intelligent
Subsidiary of a joint stock company of an associate
Technology Co., Ltd.
Tianjin Magic Square Travel
Subsidiary of an associate
Technology Co., Ltd.
Tianjin Xintai Precision Technology Co.,
Subsidiary of an associate
Ltd.
Enterprises controlled by close family members of
Shangqiu Yichong Trading Co., Ltd.
directors
Shandong Zhidou Automobile Sales Subsidiaries of companies of which the controlling
Co., Ltd. shareholder is a director
Geling New Energy Technology Original associates
(Shandong) Co., Ltd.
Director 、 vice general manager ,the controlling
Duan Hua
shareholder’s spouse
Other notes:
As of May 31, 2023, the Group acquired an 11% equity interest in Geling New Energy for
RMB 9,554,782.42 yuan, holding a total of 60.01% equity interest in Geling New Energy,
which was transferred from an associate of the Group to a holding subsidiary of the
Group.
(1) Related-party transactions of purchase and sale of commodities and supply
and acceptance of labor services
Statement of purchase of commodities and acceptance of labor services
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount of Whether the
Description
Amount incurred approved transaction Amount incurred
Related of
in the reporting transactions (if amount is in the previous
parties related-party
period applicable) exceeded (if period
transactions
applicable)
Tianjin
Purchase of
Jiema
raw
Electric 7,930,676.55 30,000,000.00 No 6,917,694.49
materials 、
Technology
service
Co., Ltd
Shandong
Aidebang
Purchase of
Intelligent 1,166,963.01 N/A 53,999,230.71
raw materials
Technology
Co., Ltd.
Taizhou
Purchase of
Aidebang
raw
Intelligent 53,487,247.61 N/A 120,959,079.64
materials 、
Technology
service
Co., Ltd.
Geling New
Energy
Purchase of
Technology 56,846.20 N/A 24,803,224.66
raw materials
(Shandong)
Co., Ltd.
Shangqiu
Yichong Purchase of
Trading raw materials
Co., Ltd
Tianjin
Xintai
Purchase of
Precision 6,868,850.94 N/A
raw materials
Technology
Co., Ltd
Total 106,766,839.12 225,653,968.73
Statement of sales of goods/supply of services
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Description of Amount Amount incurred
Related party related-party incurred in the in the previous
transactions reporting period period
Tianjin Jiema Electric
Supply of services 897,280.36 400,633.54
Technology Co., Ltd
Beijing Zhongzhong Travel
Sales of goods 5,309.73 3,565,572.70
Technology Co., Ltd.
Geling New Energy
Sales of goods and
Technology (Shandong) Co., 3,886,720.43 30,758,228.37
supply of services
Ltd.
Tianjin Magic Square Travel
Sales of goods 10,318,512.40 1,653,539.83
Technology Co., Ltd.
Total 15,107,822.92 36,377,974.44
Note to related-party transactions of purchase and sale of commodities and supply and
acceptance of labor services
√ Applicable □ Not applicable
As of December 29, 2022, the third meeting of the fifth board of directors of the company
decided to consider and adopt the Bill on the Forecast of Daily Related Party Transactions
of the Company and Subsidiaries in 2023. For details, please refer to the relevant
announcement disclosed on the website of Shanghai Stock Exchange on December 30,
(2) Related entrusted management/contracted and mandatory
management/contracting
Statement of the Company's entrusted management/contracting:
□ Applicable √ Not applicable
Related entrusted management/contracting
□ Applicable √ Not applicable
Statement of the Company's entrusted management/outsourcing
□ Applicable √ Not applicable
Related management/outsourcing
□ Applicable √ Not applicable
(3) Related-party lease
The Company as lessor:
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Categories of Rental income Rental income
Names of lessee leasehold recognised in the recognised in the
properties reporting period previous period
Tianjin Jiema Electric
Property lease 8,993,986.50 5,795,080.18
Technology Co., Ltd.
Tianjin Magic Square
Property lease 4,364.49
Travel Technology Co., Ltd.
Tianjin Xintai Precision
Property lease 756,661.26
Technology Co., Ltd
Total 9,755,012.25 5,795,080.18
The Company as lessee:
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Rental charges for Variable lease
streamlined payments not
Interest expense on
short-term leases included in the Increased right-to-use
Rent paid lease liabilities
and leases of measurement of the assets
Categories assumed
low-value assets (if lease liability (if
Names of of applicable) applicable)
lessor leasehold
properties Amount Amount Amount Amount Amount Amount Amount Amount
Amount Amount
incurred incurred incurred incurred incurred incurred incurred incurred
incurred in incurred in
in the in the in the in the in the in the in the in the
the reporting the previous
reportin previous reporting previous reporting previous reporting previous
period period
g period period period period period period period period
Duan Property 4,761,904.7 4,761,904.7 206,224. 412,806.
Hua lease 6 6 30 47
Related lease
□ Applicable √ Not applicable
(4) Related guarantee
The Company as a guarantor
□ Applicable √ Not applicable
The Company as a guarantee
□ Applicable √ Not applicable
Note to related guarantee
□ Applicable √ Not applicable
(5) Borrowings and lendings among related parties
□ Applicable √ Not applicable
(6) Assets assignment and liabilities reorganization of related parties
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred
Description of Amount incurred in
Related party in the reporting
related-party transactions the previous period
period
Tianjin Jiema Electric
Purchase of fixed assets 372,721.24
Technology Co., Ltd
Taizhou Aidebang
Purchase of intangible
Intelligent Technology 382,300.88
assets
Co., Ltd
Tianjin Jiema Electric
Sale of fixed assets 26,548.67
Technology Co., Ltd
Geling New Energy
Technology Sale of fixed assets 11,277,349.19
(Shandong) Co., Ltd.
(7) Remuneration to senior executives
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the reporting Amount incurred in the
Items
period previous period
Remuneration to senior
executives
In 2023, the total remuneration of key management personnel of the Company (including
monetary, physical and other forms) was RMB 39,257,367.09 yuan (2022: RMB
corresponding to the total expenses recognized through amortization of share-based
payment in the current year are RMB 16,562,409.03 yuan (2022: RMB 28,497,920.00
yuan).
(8) Other related-party transactions
√ Applicable □ Not applicable
From January to December 2023, the Group received a total dividend of RMB
December 2022: RMB 2,800,000.00 yuan).
Related party Amount incurred in Amount incurred in
Related party
transactions the reporting period the previous period
Tianjin Jiema Electric
Dividends 3,200,000.00 2,800,000.00
Technology Co., Ltd
(1) Receivables
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Description Related party Book Bad debt Book Bad debt
balance reserve balance reserve
Taizhou
Aidebang
Prepayment Intelligent 243,116.36
Technology Co.,
Ltd
Tianjin Jiema
Electric
Prepayment 9,469.19
Technology Co.,
Ltd.
Tianjin Jiema
Other Electric
receivables Technology Co.,
Ltd.
Shandong
Other Zhidou
receivables Automobile
Sales Co., Ltd
Other Geling New 4,821,488.81
receivables Energy
Technology
(Shandong) Co.,
Ltd.
Other Duan Hua
receivables
(5) Payables
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending book Opening book
Entry name Related parties
balance balance
Tianjin Jiema Electric technology
Trade payables 43,543.94 1,162,195.26
Co., Ltd.
Taizhou Aidebang Intelligent
Trade payables 62,033.43 1,103,656.70
technology Co., Ltd.
Shangqiu Yichong Trading Co.,
Trade payables 8,269,086.54 14,031,638.68
Ltd.
Shandong Aidebang Intelligent
Trade payables 218,650.44 22,567.50
Technology Co., Ltd.
Tianjin Xintai Precision
Trade payables 4,533,421.33
Technology Co., Ltd.
Geling New Energy Technology
Trade payables 1,606,049.08
(Shandong) Co., Ltd.
Contract Beijing Zhongzhong Travel
liabilities Technology Co., Ltd.
Contract Tianjin Magic Square Travel
liabilities Technology Co., Ltd.
Other current Beijing Zhongzhong Travel
liabilities Technology Co., Ltd.
Other current Tianjin Magic Square Travel
liabilities Technology Co., Ltd.
Advances from Tianjin Jiema Electric Technology
customers Co., Ltd
Advances from Tianjin Magic Square Travel
customers Technology Co., Ltd.
Advances from Tianjin Xintai Precision
customers Technology Co., Ltd.
Shangqiu Yichong Trading Co.,
Other payables 100,000.00 50,000.00
Ltd.
Tianjin Jiema Electric Technology
Other payables 1,073,649.95 1,297,834.33
Co., Ltd.
Other payables Taizhou Aidebang Intelligent 1,521,356.41 1,000,000.00
Technology Co., Ltd.
Tianjin Magic Square Travel
Other payables 8,833.33
Technology Co., Ltd.
Tianjin Xintai Precision
Other payables 359,050.00
Technology Co., Ltd.
Geling New Energy Technology
Other payables 200,000.00
(Shandong) Co., Ltd.
Lease liabilities Duan Hua 2,353,501.71
Non-current
liabilities due Duan Hua 2,353,501.71 4,555,680.46
within one year
(3) Other items
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
XV. Share-based payment
√ Applicable □ Not applicable
Quantity unit: Ten Thousand Shares Unit: Ten Thousand Yuan (RMB)
Grant in current Unlocked in current Expiration of
Current exercise
Grant to period period current period
Category Amount of Amount of Amount of Amount of
Number Number Number Number
money money money money
restricted 427.14 3,643.50 12.60 107.48
stock
options
Total 716.40 22,337.35 427.14 3,643.50 12.60 107.48
Stock options or other equity instruments outstanding at the end of the period
√ Applicable □ Not applicable
Outstanding stock options at Other equity instruments
the end of the period outstanding at the end of the
Grant to Category period
Range of Remaining Range of Remaining
exercise price contractual exercise price contractual
term term
stock yuan/share
yuan/share
Other notes
(1) 2023 stock options
The sixth meeting of the fifth board of directors of the Company reviewed and approved
the Bill on Granting Stock Options to Incentive Objects of the Stock Option Incentive Plan
in 2023, which determined that on April 14, 2023, 4,776,000 stock options were granted to
company completed the grant registration of the 2023 stock option incentive plan.
On August 21, 2023, the 12th meeting of the fifth board of directors of the Company
considered and approved the Bill on Adjusting the Granting Number and Exercise Price of
the Stock Option Incentive Plan in 2023. As the company implemented the equity
distribution in 2022, it distributed a cash dividend of 1.304 yuan (including tax) per share,
increased 0.5 shares per share with capital reserve, and adjusted the number of shares
granted to 7.164 million (10,000 shares) in 2023, The exercise price is adjusted to 31.18
yuan per share.
By the end of the reporting period, the number of stock options granted by the Company in
(2) 2021 restricted stock
At the 8th meeting of the 5th Board of Directors of the Company, the Proposal on
Adjusting the Number of Restricted Stock Incentive Plans Granted and the Repurchase
Price in 2021, the Proposal on the Achievements of Removing the Restriction Conditions
in the First Release Period of the First Grant of the Restricted Stock Incentive Plan in
Restricted Stocks in the Restricted Stock Incentive Plan in 2021 were considered and
approved, Due to the adjustment of equity distribution, the number of restricted stock
incentive plans granted in 2021 is 14,364,000 shares and the repurchase price is 8.53
yuan per share; Confirm that the unlocking conditions for the first unlocking period of the
first partial grant of the restricted stock incentive plan in 2021 have been met, 97 incentive
objects can be unlocked, and the number of unlocked shares is 4,158,000; It is confirmed
that 4 incentive objects in the first grant part of the restricted stock incentive plan in 2021
have resigned for personal reasons and no longer qualify as incentive objects, and the
Company will repurchase and cancel the total 126,000 restricted shares that have been
granted but not yet lifted. On June 1, 2023, the restricted stock incentive plan in 2021
granted 4,158,000 shares in the first unlocking period for the first time to be unlocked and
listed and circulated. On July 27, 2023, the Company completed the repurchase and
cancellation procedures of 126,000 restricted shares of four incentive objects in the first
grant part of the restricted stock incentive plan in 2021.
On August 21, 2023, the twelfth meeting of the fifth board of directors of the Company
deliberated and approved the Bill on the Achievements of Unlocking Conditions for the
First Unlocking Period of the Reserved Grant Part of the Restricted Stock Incentive Plan
in 2021, confirming that the unlocking conditions for the first unlocking period of the
reserved grant part of the Restricted Stock Incentive Plan in 2021 were achieved, 14
incentive objects could be unlocked, and the number of unlocked shares was 113,400. On
August 28, 2023, 113,400 shares reserved for the first unlocking period of the restricted
stock incentive plan in 2021 were unlocked for listing and circulation.
As at the end of the reporting period, the number of restricted shares granted by the
Company in 2021 was 9,966,600, of which 9,702,000 shares were granted for the first
time and 264,600 shares were reserved for grant.
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Equity settled share-based payment
objects
Method of determining the fair value Black-Scholes model,
Closing price on grant
of equity instruments at the date of underlying stock price: 60.00
date
grant yuan/share
Historical volatility:
Important parameters of fair value of
N/A 16.3715%
equity instruments at grant date
Risk-free interest rate:
Best estimate of
Basis for determining the number of Best estimate of expected
expected vesting at
vested equity instruments vesting at the end of the year
the end of the year
Reasons for significant differences
between current period estimates N/A N/A
and prior period estimates
Accumulated amount of
equity-settled share-based payment 131,696,934.06 19,132,905.86
included in capital reserve
Other notes
None
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Equity settled share-based Cash settled share-based
Grant to Category
payment expenses payment expenses
Production personnel 797,204.42
Salesman 16,533,973.00
Management 32,460,671.66
Research and development
personnel
Total 70,168,931.98
Other notes
As the Company's operating income in 2023 and net profit attributable to shareholders of
listed companies after excluding the impact of equity incentives did not meet the Company
level performance assessment requirements in the first exercise period set by the 2023
stock option equity incentive plan, the accrued cost of stock option incentives in 2023 was
□ Applicable √ Not applicable
√ Applicable □ Not applicable
On April 15, 2024, the 21st meeting of the fifth board of directors of the Company
considered and adopted the Bill on Adjusting the Exercise Price of the 2023 Stock Option
Incentive Plan. As the Company implements the semi-annual equity distribution in 2023, it
distributes a cash dividend of 0.348 yuan per share (including tax), and the exercise price
of the 2023 stock option incentive plan is adjusted to 30.83 yuan per share accordingly.
XVI. Commitments and contingencies
√ Applicable □ Not applicable
Important external commitments, the nature and the amount existing as at the balance
sheet date
Items December 31, 2023 December 31, 2022
Capital commitments with contract 1,641,661,780.44 68,081,624.42
signed but not yet provided
(1) Significant contingencies existing as at the balance sheet date
□ Applicable √ Not applicable
(2) The Company had no important contingencies unnecessary to be disclosed but
necessary to be explained
□ Applicable √ Not applicable
□ Applicable √ Not applicable
XVII. Events after the balance sheet date
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Profit or dividend to be distributed 452,722,253.92
Profit or dividend announced to be distributed after review and
approval
The Company held the 21st meeting of the 5th Board of Directors at which a preplan for
profit distribution in 2023 was approved. According to the preplan, the Company was to
distribute profits based on the total share capital registered on the date of equity
distribution and equity registration minus the shares in the special securities account for
repurchase. The profit distribution plan is to distribute a cash dividend of RMB 5.34 yuan
(including tax) per 10 shares to all shareholders. As of December 31, 2023, the total share
capital of the Company was 861,925,007 shares, and the base after deducting
RMB 452,722,253.92 yuan (including tax).
If, from the date of disclosure of this announcement to the date of equity distribution
registration, the number of shares in the company's total share capital or special securities
account for repurchase changes due to convertible bond conversion, share repurchase,
use of repurchased shares to grant restricted shares for equity incentives, repurchase and
cancellation of shares granted for equity incentives, repurchase and cancellation of
shares for major asset restructuring, etc., the company intends to maintain the distribution
ratio per share unchanged and adjust the total distribution accordingly.
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Stock option incentive plan
On February 29, 2024, the Company held the first extraordinary general meeting of 2024
to consider and approve the proposal on the Stock Option Incentive Plan for 2024 (Draft)
and its summary, and the proposal on the Management Measures for the Implementation
Evaluation of the Stock Option Incentive Plan for 2024. According to the resolution of the
general meeting of the Company, the total number of incentive objects granted by the
Company was 204, the number of stock options granted was 13.70 million with the
exercise price of RMB 12.61 yuan per share. The incentive plan is valid for a maximum of
the stock options granted to the incentive objects.
XVIII. Other significant events
(1) Retroactive restatement
□ Applicable √ Not applicable
(2) Prospective application method
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(1) Non-monetary assets exchange
□ Applicable √ Not applicable
(2) Other assets exchange
□ Applicable √ Not applicable
□ Applicable √ Not applicable
□ Applicable √ Not applicable
(1) Basis for determining the reporting segments and accounting policy
□ Applicable √ Not applicable
(2) Financial information of the reporting segments
□ Applicable √ Not applicable
(3) In case there is no reporting segment or the total assets and liabilities of the
reporting segments cannot be disclosed, explain the reason
√ Applicable □ Not applicable
The Company is mainly engaged in the electric two-wheelers business, and the assets
related to the services supply are located in China. In terms of internal organizational
structure and management requirements, the Company takes the Company's businesses
as a whole to review internal reports, allocate resources and performance assessment.
Therefore, except the information already presented in the financial statements, there is
no other segment information necessary to be presented.
(4) Other notes
√ Applicable □ Not applicable
Geographical information: The vast majority of the Company's foreign transaction revenue
comes from domestic sources. The Company's non-current assets (excluding financial
assets and deferred income tax assets) are all located in China.
In 2023, the Company did not generate more than 10% of its operating revenues from a
single customer.
making
□ Applicable √ Not applicable
□ Applicable √ Not applicable
XIX. Notes to the parent company’s financial statements
(1) Disclosed based on aging
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Aging Ending book balance Opening book balance
Within 1 year
Where: Itemized within 1 year
Within 1 year 136,823,141.44 132,394,484.26
Sub-total within 1 year 136,823,141.44 132,394,484.26
Over 3 years 108,695.20
Total 149,074,050.12 137,024,744.78
(2) Classified disclosure based on the method of provision for bad debt
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Book balance Bad debt reserve Book balance Bad debt reserve
Book
Categories Provision Book Provision
Proportion Proportio value
Amount Amount proportion value Amount Amount proportion
(%) n (%)
(%) (%)
Assessed
bad debt 3,176,31 3,176,31 32,471, 3,176,31 29,295,16
provision 7.65 7.65 486.51 7.65 8.86
individually
Where:
Individual
provision 3,176,31 3,176,31 32,471, 3,176,31 29,295,16
for bad 7.65 7.65 486.51 7.65 8.86
debts
Assessed
bad debt 145,897, 3,749,41 142,148, 104,553 1,557,14 102,996,1
provision in 732.47 1.65 320.82 ,258.27 6.17 12.10
portfolio
Where:
Portfolios
based on
credit risk 97.87 2.57 76.30 1.49
characterist
ics
Total 100.00 / 100.00 /
Individual provision for bad debts:
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance
Name Bad debt Provision Provision
Book balance
provision proportion reason
(%)
Suning
Procurement
Less likely to
Center of Suning 3,176,317.65 3,176,317.65 100.00
be recovered
Tesco Group Co.,
Ltd.
Total 3,176,317.65 3,176,317.65 100.00 /
Notes to the provision for bad debts by individual items:
□ Applicable √ Not applicable
Provision for bad debts based on portfolio:
√ Applicable □ Not applicable
Provision items on portfolio: Provision for bad debts recognised based on the portfolio of
credit risk characteristics
Unit: Yuan (RMB)
Ending balance
Name Bad debt
Accounts receivable Provision proportion (%)
provision
Within 1 year 136,820,462.44 1,692,649.20 1.24
Over 3 years 108,695.20 108,695.20 100.00
Total 145,897,732.47 3,749,411.65 2.57
Notes to recognition of provision for bad debts based on portfolio:
□ Applicable √ Not applicable
Provision for bad debt is accrued in accordance with the general model of expected credit
loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
N/A
Description of significant changes in the book balance of accounts receivable with
changes in loss provision in the current period:
□ Applicable √ Not applicable
(3) Provision for bad debts
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount of movement during the reporting period
Opening Ending
Categories Recovery Charge-off Other
balance Provision balance
or reversal or write-off changes
Provision
for bad 390,692.59 50,968.08
debts
Total 390,692.59 50,968.08
Where the significant amount of the reserve for bad debt recovered or reversed:
□ Applicable √ Not applicable
Other notes
None
(4) Accounts receivable actually written off in the reporting period
□ Applicable √ Not applicable
Where, the important accounts receivable written-off
□ Applicable √ Not applicable
Notes to accounts receivable written-off
□ Applicable √ Not applicable
(5) Accounts receivable and contract assets owed by the top five debtors based on
the ending balance
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending Ending Proportion
balance balance of in total
Ending Ending
of trade ending
Organization balance of balance of the
contract receivables balance of
name trade provision for
assets and contract accounts
receivables bad debts
assets receivable
(%)
Company 1 10,710,300.18 10,710,300.18 7.18 154,228.32
Company 2 9,768,930.86 9,768,930.86 6.55 140,672.60
Company 3 8,478,929.97 8,478,929.97 5.69 1,798,681.54
Company 4 8,258,026.01 8,258,026.01 5.54 118,915.57
Company 5 4,168,579.22 4,168,579.22 2.80 60,027.54
Total 41,384,766.24 41,384,766.24 27.76 2,272,525.57
Other Notes
None
Other Notes:
□ Applicable √ Not applicable
Items Presentation
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Interest receivables 415,312.11 350,530.03
Dividends receivable
Other receivables 1,710,924,896.85 68,356,060.43
Total 1,711,340,208.96 68,706,590.46
Other notes:
□ Applicable √ Not applicable
Interest receivables
(1) Classification of interest receivable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Ending balance Opening balance
Interest of accounts
receivable
Total 415,312.11 350,530.03
(2) Significant overdue interest
□ Applicable √ Not applicable
(3) Classified disclosure by bad debt provision method
□ Applicable √ Not applicable
Individual provision for bad debts:
□ Applicable √ Not applicable
Description of individual provision for bad debts:
□ Applicable √ Not applicable
Provision for bad and doubtful debts based on portfolio:
□ Applicable √ Not applicable
(4) If the provision for bad debt is accrued in accordance with the general model of
expected credit loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
N/A
Description of significant changes in the book balance of interest receivables with
changes in loss provision in the current period:
□ Applicable √ Not applicable
(5) Provision for bad debts
□ Applicable √ Not applicable
Among them, the amount of bad debt provision recovered or reversed in the current
period is significant:
□ Applicable √ Not applicable
Other notes:
None
(6) Interest receivables actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of Interest receivables:
□ Applicable √ Not applicable
Interest receivables write-off description:
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
Dividend receivable
(1) Dividend receivable
□ Applicable √ Not applicable
(2) Significant dividends receivable with age exceeding 1 year
□ Applicable √ Not applicable
(3) Classified disclosure by bad debt provision method
□ Applicable √ Not applicable
Individual provision for bad debts:
□ Applicable √ Not applicable
Description of individual provision for bad debts:
□ Applicable √ Not applicable
Provision for bad and doubtful debts based on portfolio:
□ Applicable √ Not applicable
(4) If the provision for bad debt is accrued in accordance with the general model of
expected credit loss
□ Applicable √ Not applicable
Classification basis of each stage and provision ratio for bad debts
None
Description of significant changes in the book balance of dividend receivables with
changes in loss provision in the current period:
□ Applicable √ Not applicable
(5) Provision for bad debts
□ Applicable √ Not applicable
Among them, the amount of bad debt provision recovered or reversed in the current
period is significant:
□ Applicable √ Not applicable
Other notes:
None
(6) Dividend receivables actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of dividend receivables:
□ Applicable √ Not applicable
Dividend receivables write-off description:
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
Other receivables
(1) Disclosed based on aging
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Aging Ending book balance Opening book balance
Within 1 year
Where: Itemized within 1 year
Within 1 year 1,687,264,600.01 67,617,489.04
Sub-total within 1 year 1,687,264,600.01 67,617,489.04
Over 3 years 522,003.54 579,394.50
Total 1,710,954,096.85 68,366,360.43
(2) Classification based on the nature of fund
□ Applicable √ Not applicable
(3) Provision for bad debts
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Stage 1 Stage 2 Stage 3
Lifetime Lifetime
Expected expected credit
Bad debt provision Credit losses losses (credit Total
Expected
(no credit impairment
Credit losses
impairment already
incurred) incurred)
Balance as at January 1,
Balance as at January 1,
-- Transferred into Stage 2
-- Transferred into Stage 3
-- Revered to Stage 2
-- Reversed to Stage 1
Accrual 18,900.00 18,900.00
Reversal
Transfer out
Write-off
Other changes
Balance as at December 31,
Classification basis of each stage and provision ratio for bad debts
N/A
Note to the significant changes in the book balance of other receivables with changes in
provision for loss in the reporting period:
□ Applicable √ Not applicable
The amount of provision for bad debts in the reporting period and the basis for assessing
whether the credit risk of financial instruments has increased significantly
□ Applicable √ Not applicable
(4) Provision for bad debts
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount of movement during the reporting period
Opening Ending
Categories
balance Recovery or Charge-off Other balance
Provision
reversal or write-off changes
Bad debt
provision
Total 10,300.00 18,900.00 29,200.00
Where a significant amount of the reserve for bad debt recovered or reversed during the
reporting period:
□ Applicable √ Not applicable
Other notes
None
(5) Other receivables actually written off in the reporting period
□ Applicable √ Not applicable
Significant write-off of other receivables:
□ Applicable √ Not applicable
Description of write-off of other receivables:
□ Applicable √ Not applicable
(6) Other receivables owed by the top five debtors based on the ending balance
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Proportion Closing
in total balance
Organization ending Nature of of
Ending balance Aging
name balance of Payment Provision
other for bad
receivables debts
Company 1 1,484,812,105.66 86.78 Intercompany Within 1
borrowings year
borrowings year and
Company 2
ears
Company 3
borrowings year
Company 4
borrowings years
Company 5
accounts year
Total 1,693,498,862.33 98.98 / /
(7) Presentation in other receivables due to centralized management of funds
□ Applicable √ Not applicable
Other notes:
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending balance Opening balance
Provision Provision
Items for for
Book balance Book value Book balance Book value
impairme impairme
nt nt
Investment
in 1,110,377,202.6 1,110,377,202.6 1,102,205,042.4 1,102,205,042.4
subsidiarie 7 7 6 6
s
Investment
in
associates 38,817,295.52 38,817,295.52
and joint
ventures
Total
(1) Investment in subsidiaries
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Ending
Provision
balance
for
Increase in Decrease in of the
Opening impairme
Investees the reporting the reporting Ending balance provision
balance nt in the
period period for
reporting
impairme
period
nt
Aima 100,000,000.
Nanfang 00
Aima
Chongqin 866,070,335.76 38,072,730.4 904,143,066.18
g 2
Henan
Vehicle
Guangdon
g Vehicle
Guangxi
- 1,419,004.75 1,419,004.75
Vehicle
Zhejiang
Vehicle
Tianjin
Vehicle
Aima
Venture 92,329,028.97 869,285.82 93,198,314.79
Capital
Tianjin
Sports
Suiwanwa
n
Super
Universe
Suoteng
Technolog 1,100.00 58,310,594.1 58,311,694.14
y 4
Total
(2) Investment in associates and joint ventures
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Investmen Opening Increase/ decrease (+ / -) in the reporting period Endin Ending
t in: balance Incr Dec Investment Other Other Cash Provision Oth g balance of
eas reas Income under compre equity divide for ers balan the
e e the equity hensive move nd impairme ce provision for
method income ment declar nt impairment
ed
I. Joint venture
Sub-total
II. Associates
Taizhou
Jinfu
Sub-total 38,817,295.52 -38,817,295.52
Total 38,817,295.52 -38,817,295.52
(3) Impairment test of long-term equity investments
□ Applicable √ Not applicable
Other notes:
None
(1) Operating revenue and costs
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the reporting Amount incurred in the previous
Items period period
Income Cost Income Cost
Primary 8,141,955,276.7 7,696,852,769. 8,032,042,197.5 7,464,933,212
business 4 18 9 .00
Other 194,420,927.0
businesses 2
Total
(1). (2) Breakdown of operating income and operating cost
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Total
Contract classification
Business income Operating costs
Commodity Type
Revenue from electric two-wheelers,
electric tricycle, bicycles and accessories
Rental income 20,839,493.37 17,390,429.26
Other income 191,957,906.17 159,884,243.70
Classification by region of operation
Chinese Mainland 8,314,180,504.64 7,839,544,341.37
Other countries or regions 40,572,171.64 34,583,100.77
Classification by time of goods transfer
Transfer at a point in time 8,333,913,182.91 7,856,737,012.88
Transferred over a period of time 20,839,493.37 17,390,429.26
Total 8,354,752,676.28 7,874,127,442.14
Other notes
□ Applicable √ Not applicable
(2). (3) Notes to performance obligations
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amounts
The nature Types of quality
assumed by
Timing of of the Whether it assurance
Significant the company
performanc goods the is the main provided by the
Project payment that are
e company responsible company and
terms expected to be
obligations undertakes person related
refunded to
to transfer obligations
customers
The
contract
price is
When generally Electric
Contract goods are due upon two-wheele
Yes 0 Quality assurance
liabilities delivered to delivery of rs, electric
a customer the goods tricycle, etc.
and receipt
of the
invoice
When
Provision Advance Aftersales
providing Yes 0 None
of services receipts extension
services
Total / / / / 0/
(4) Notes to apportioning to the residual performance obligations
√ Applicable □ Not applicable
At the end of the reporting period, the revenue corresponding to the performance
obligations that have been signed but have not been fulfilled or have not been fulfilled is
(5) Significant contract changes or significant transaction price adjustments
□ Applicable √ Not applicable
Other notes:
None
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Amount incurred in the Amount incurred in
Items
reporting period the previous period
Long-term equity investment income
under the cost method
Long-term equity investment income
-38,817,295.52 -30,086,884.58
under the equity method
Return on investment from financial
products
Gains from disposal of long-term equity
investment
Total 1,576,271,319.28 647,705,392.11
Other notes:
None
□ Applicable √ Not applicable
XX. Supplementary information
√ Applicable □ Not applicable
Unit: Yuan (RMB)
Items Amount
Profit or loss from disposal of non- current assets, including the write-off
-5,102,906.88
of provision for asset impairment
Government grants recognized in during profit or loss (excluding those
having close relationship with the Company’s normal business,
conforming to the national policies and regulations and enjoying 148,273,316.15
ongoing fixed amount or quantity according to certain standard)
Profit or loss arising from changes in fair value of financial assets and
financial liabilities held by non-financial entities, and profit or loss
-17,226,650.77
arising from disposal of financial assets and financial liabilities, except
for effective hedging activities related to the Company’s normal
business operations
Write back of the impairment provision for receivables that have been
individually tested for impairment
Gains arising when the investment cost in acquiring subsidiaries,
associates, and joint ventures was less than the fair value of the 99,502.54
identifiable net assets at the time of investment
Non-operating income or expenses other than the above items 18,838,780.52
Other gain or loss in compliance with the definition of non-recurring gain
or loss
Less: Amount affected by the income tax 34,159,727.30
Affected amount of minority shareholders’ equity (after tax) 72,171.19
Total 116,647,782.96
If the Company identifies items not listed in Explanatory Announcement No.1 on
Information Disclosure of Companies Offering Securities to the Public - Non-recurring
Profit and Loss as non-recurring profit and loss items and the amount is significant, and
defines non-recurring profit and loss items listed in Explanatory Announcement No.1 on
Information Disclosure of Companies Offering Securities to the Public - Non-recurring
Profit and Loss as recurring profit and loss items, the reasons shall be explained.
□ Applicable √ Not applicable
Other notes
□ Applicable √ Not applicable
√ Applicable □ Not applicable
Net return Earnings per share
on equity,
Profit in the reporting period weighted Basic
Diluted earnings
average earnings per
per share
(%) share
Net profit attributable to owners of the
parent
Net profit attributable to owners of the
parent excluding non-recurring gains or 24.01 2.06 1.99
losses
Standards (CAS) and International Accounting Standards (IAS)
□ Applicable √ Not applicable
□ Applicable √ Not applicable
Chairman of the Board: Zhang Jian
The Report was approved by the Board of Directors. Date of the submission 4/15/2024
Revision information
□ Applicable √ Not applicable
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