Nanjing Putian Telecommunications Co., Ltd.
Half year financial report for 2025
I.Audit report
Has the Semi-annual Report been audited?
□Yes ?No
The Semi-annual Report of the Company has not been audited.
II. Financial statements
The unit of the statements in the financial notes is: yuan
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. 2025/6/30 Unit：RMB
Item 2025/6/30 2024/12/31
Current assets：
Cash and bank balances 108,857,798.62 292,600,989.80
Held-for-trading financial assets
Derivative financial assets
Notes receivable 870,722.06 542,048.95
Accounts receivable 355,110,330.22 293,535,326.34
Receivables financing 12,285,886.75 34,520,299.04
Advances paid 6,129,654.60 2,227,763.86
Other receivable 9,468,151.55 6,859,962.77
Including: Interest receivable
dividend receivable
Inventories 81,442,273.09 87,136,190.30
Contract assets
assets hold available for sale
Non-current assets due within one year
Other current assets 1,638,073.40 1,226,580.06
Total current assets 575,802,890.29 718,649,161.12
Non-current assets：
Debt investment
Other debt investment
Long-term receivable
Long-term equity investments 10,412,571.93 10,412,683.37
Other equity instrument investments 741,953.00 741,953.00
Other non-current financial assets
Investment property 5,183,407.80 5,547,238.47
Fixed assets 83,501,296.13 85,757,024.11
Construction in progress
Productive biological assets
Oil and gas asset
Right-of-use asset 2,317,488.88 2,447,793.04
Intangible assets 11,439,999.49 11,672,324.70
Development expenditure
Goodwill
Long-term prepayments 2,379,263.57 2,076,305.95
Deferred tax assets
Other non-current assets 719,280.00
Total non-current assets 115,975,980.80 119,374,602.64
Total assets 691,778,871.09 838,023,763.76
Current liabilities：
Short-term borrowings 83,838,001.75 128,127,987.75
Transactional financial liabilities
Derivative financial liabilities
Notes payable 2,929,278.53 10,122,225.75
Accounts payable 285,828,817.19 349,342,179.21
Advances received 1,582.00 236,005.32
Contract liabilities 12,257,950.56 24,794,919.13
Employee benefits payable 12,885,223.15 17,066,962.98
Taxes payable 1,369,656.01 8,459,692.52
Other payable 48,122,578.64 41,918,074.35
Including: Interest payable
dividend payable 10,846,600.00
Liability hold for sale
Non-current liabilities due within one year 87,330,731.69 88,060,659.43
Other current liabilities 1,410,876.56 3,125,042.32
Total current liability 535,974,696.08 671,253,748.76
Non-current liability：
Long-term borrowings 70,000,000.00 70,000,000.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liability 851,106.40 840,373.96
Long-term payable
Long-term employee compensation payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liability
Total non-current liability 70,851,106.40 70,840,373.96
Total liability 606,825,802.48 742,094,122.72
Owners' equity (or shareholders' equity):
Share capital 215,000,000.00 215,000,000.00
Other equity instrument
Including: preferred shares
Perpetual bond
Capital reserve 201,060,842.41 197,955,867.58
Less: treasury stocks 2,995,076.96 2,995,076.96
Other comprehensive income (OCI) -1,854,910.00 -1,854,910.00
Special reserves
Surplus reserve 589,559.77 589,559.77
Undistributed profit -401,497,628.66 -394,344,427.37
Total owner's equity (or shareholders' equity) attributable to the
parent company
Minority shareholders' equity 74,650,282.05 81,578,628.02
Total owner's equity (or shareholders' equity) 84,953,068.61 95,929,641.04
Total liabilities and owners’ equity (or shareholders’ equity) 691,778,871.09 838,023,763.76
Legal Representative: Accounting Director: Accounting Manager:
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. 2025/6/30 Unit：RMB
Item 2025/6/30 2024/12/31
Current assets：
Cash and bank balances 35,069,279.17 76,313,327.62
Held-for-trading financial assets
Derivative financial assets
Notes receivable 870,722.06
Accounts receivable 79,130,053.98 80,557,834.64
Receivables financing 517,141.00
Advances paid 1,195,449.23 1,238,241.47
Other receivable 32,690,321.88 22,894,075.34
Including: Interest receivable
dividend receivable 28,553,400.00 19,400,000.00
Inventories 6,898,273.43 12,704,303.71
Contract assets
assets hold available for sale
Non-current assets due within one year
Other current assets 471,327.12 141,091.78
Total current assets 156,842,567.87 193,848,874.56
Non-current assets：
Debt investment
Other debt investment
Long-term receivable
Long-term equity investments 52,344,520.45 52,344,631.89
Other equity instrument investment 741,953.00 741,953.00
Other non-current financial assets
Investment property
Fixed assets 34,683,039.58 35,919,673.67
Construction in progress
Productive biological assets
Oil and gas asset
Right-of-use asset 2,317,488.88 2,447,793.04
Intangible assets 3,961,076.29 4,023,784.51
Development expenditure
Goodwill
Long-term prepayments 1,303,418.49 1,640,998.52
Deferred tax assets
Other non-current assets
Total non-current assets 95,351,496.69 97,118,834.63
Total assets 252,194,064.56 290,967,709.19
Current liabilities：
Short-term borrowings 11,088,001.75 30,031,625.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable 129,688.53 1,809,060.50
Accounts payable 105,194,347.16 114,611,153.64
Advances received
Contract liabilities 6,869,790.37 6,674,105.73
Employee benefits payable 7,389,801.12 7,646,826.89
Taxes payable 20,670.55 1,195,504.22
Other payables 82,225,543.39 86,160,362.06
Including: Interest payable
dividend payable
Liability hold for sale
Non-current liabilities due within one year 87,330,731.69 88,060,659.43
Other current liabilities 710,415.74 867,633.75
Total current liability 300,958,990.30 337,056,931.22
Non-current liability：
Long-term borrowings 70,000,000.00 70,000,000.00
Bonds payable
Including: preferred shares
Perpetual bond
Lease liability 851,106.40 840,373.96
Long-term payable
Long-term employee compensation payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liability
Total non-current liability 70,851,106.40 70,840,373.96
Total liability 371,810,096.70 407,897,305.18
Owners' equity (or shareholders' equity):
Share capital 215,000,000.00 215,000,000.00
Other equity instrument
Including: preferred shares
Perpetual bond
Capital reserve 158,864,042.34 158,864,042.34
Less: treasury stocks 2,995,076.96 2,995,076.96
Other comprehensive income (OCI) -1,854,910.00 -1,854,910.00
Special reserves
Surplus reserve 589,559.76 589,559.76
Undistributed profit -489,219,647.28 -486,533,211.13
Total owner's equity (or shareholders' equity) -119,616,032.14 -116,929,595.99
Total liabilities and owners’ equity (or shareholders’ equity) 252,194,064.56 290,967,709.19
Legal Representative: Accounting Director: Accounting Manager:
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. The year ended June 30, 2025
Unit：RMB
Current period Preceding period
Item
cumulative comparative
I. Operating revenue 306,314,118.65 348,986,240.92
Less：Operating cost 242,780,834.63 264,438,748.73
Taxes and surcharges 1,380,779.48 2,113,711.82
Selling expenses 26,947,332.12 40,232,841.74
Administrative expenses 20,150,513.97 30,517,683.59
R&D expenses 14,599,352.20 17,847,218.56
Financial expenses 4,030,939.14 4,303,168.64
Including:Interst expense 4,242,807.72 4,822,731.40
Interst income 192,058.50 549,603.32
Add: other income 1,364,907.79 2,249,238.87
Investment income (losses are listed with "-") 142,499.31 1,025,849.52
Including: investment income from associates and joint ventures -111.44 -66.50
Derecognition income of financial assets measured at
amortized cost
Net exposure hedging gain (loss are listed with "-")
Gains from changes in fair value (losses are listed with "-")
Credit impairment loss (losses are listed with "-") -781,264.08 1,966,859.78
Assets impairment loss(losses are listed with "-") -302,366.42
Gain on assets disposal (loss are listed with "-") -16,680.80 -468.86
II. Operating profit（loss show as “－”） -2,866,170.67 -5,528,019.27
Plus: non-operating revenue 235,959.49 2,341,968.45
Less: non-operating expenditures 200,898.70 800,754.99
III. Total profit (total loss is listed with "-") -2,831,109.88 -3,986,805.81
Deduct: income tax expense 924,211.67 1,370,104.91
IV. Net profit (net loss is listed with "-") -3,755,321.55 -5,356,910.72
(1) Classified by business continuity:
(2) Classified by ownership:
V. Net after-tax of other comprehensive income
(1) Net after-tax amount of other comprehensive income attributable to
owners of the parent company
and loss
loss under the equity method
loss
under the equity method
comprehensive income
and losses)
(2) Net after-tax amount of other comprehensive income attributable to
minority shareholders
VI. Total comprehensive income -3,755,321.55 -5,356,910.72
(1) Total comprehensive income attributable to owners of the parent -7,153,201.29 -9,457,810.54
(2) Total comprehensive income attributable to minority shareholders 3,397,879.74 4,100,899.82
VII. Earnings per share
(1) Basic earnings per share -0.03 -0.04
(2) Diluted earnings per share -0.03 -0.04
Legal Representative: Accounting Director: Accounting Manager:
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. The year ended June 30, 2025
Unit：RMB
Current period Preceding period
Item
cumulative comparative
I. Operating revenue 17,860,639.02 11,828,284.34
Less：Operating cost 14,742,759.47 10,933,095.56
Taxes and surcharges 97,961.39 447,585.48
Selling expenses 1,769,737.91 3,556,132.99
Administrative expenses 10,919,895.29 15,861,196.24
R&D expenses
Financial expenses 3,195,973.26 3,277,034.82
Including:Interst expense 3,326,989.00 3,581,025.35
Interst income 136,153.06 307,940.40
Add: other income 10,310.52 9,574.65
Investment income (losses are listed with "-") 9,290,483.02 9,725,216.13
Including: investment income from associates and joint
-111.44 -66.50
ventures
Derecognition income of financial assets measured at
amortized cost
Net exposure hedging gain (loss are listed with "-")
Gains from changes in fair value (losses are listed with "-")
Credit impairment loss (losses are listed with "-") 968,023.71 2,063,316.07
Assets impairment loss(losses are listed with "-")
Gain on assets disposal (loss are listed with "-") -16,680.80
II. Operating profit（loss show as “－”） -2,613,551.85 -10,448,653.90
Plus: non-operating revenue 123,516.78 550,000.00
Less: non-operating expenditures 196,401.08 794,734.53
III. Total profit (total loss is listed with "-") -2,686,436.15 -10,693,388.43
Deduct: income tax expense
IV. Net profit (net loss is listed with "-") -2,686,436.15 -10,693,388.43
(1) Net profits from continuing operations -2,686,436.15 -10,693,388.43
(2) Discontinued operating net profit
V.Other comprehensive income net of tax
(1) Comprehensive income not to be reclassified to profit or loss
in equity method
(2) Comprehensive income to be reclassified to profit or loss
equity method
comprehensive income
gains and losses)
VI. Total comprehensive income -2,686,436.15 -10,693,388.43
Legal Representative: Accounting Director:
Accounting Manager:
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. The year ended June 30, 2025
Unit：RMB
Current period Preceding period
Item
cumulative comparative
I. Cash flow from operating activities:
Cash received from the sale of goods and the provision of labor
services
Tax Refund 398,076.73 1,836,129.29
Other cash received relating to operating activities 15,113,042.69 25,446,241.95
Subtotal of cash inflow from operating activities 244,867,359.72 296,368,831.09
Cash paid for purchasing goods and receiving labor services 258,813,921.41 276,072,192.10
Cash paid to and for employees 64,421,717.65 75,097,064.11
Various taxes and fees paid 18,904,119.63 17,516,542.04
Other cash payments related to operating activities 34,993,186.57 49,903,043.75
Subtotal of cash outflows from operating activities 377,132,945.26 418,588,842.00
Net cash flow from operating activities -132,265,585.54 -122,220,010.91
II. Cash flow from investment activities:
Cash received from investment
Cash received from investment income
Net cash received from the disposal of fixed assets, intangible assets
and other long-term assets
Net cash received from disposal of subsidiaries and other business
units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 40.00
Cash paid for the purchase and construction of fixed assets, intangible
assets and other long-term assets
Cash Investment
Net cash paid for acquiring subsidiaries and other business units
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 1,033,301.00 584,433.24
Net cash flows from investing activities -1,033,301.00 -584,393.24
III. Cash flow from financing activities:
Absorb cash received from investment
Including: cash received by the subsidiary from absorbing minority
shareholders' investment
Cash received from borrowing 73,138,001.75 83,379,556.02
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 73,138,001.75 83,379,556.02
Cash paid for debt repayment 117,300,000.00 46,500,000.00
Cash paid for dividends, profits, or interest payments 4,437,064.34 8,540,842.08
Including: dividends and profits paid by subsidiaries to minority
shareholders
Other cash payments related to financing activities 568,965.48 1,601,401.52
Subtotal of cash outflows from financing activities 122,306,029.82 56,642,243.60
Net cash flow from financing activities -49,168,028.07 26,737,312.42
IV. The impact of exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents -182,466,914.61 -96,067,091.73
Add: the balance of cash and cash equivalents at the beginning of the
period
VI. Balance of cash and cash equivalents at the end of the period 105,861,149.82 68,110,588.38
Legal Representative: Accounting Director: Accounting Manager:
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. The year ended June 30, 2025
Unit：RMB
Current period Preceding period
Item
cumulative comparative
I. Cash flow from operating activities:
Cash received from the sale of goods and the provision of labor
services
Tax Refund
Other cash received relating to operating activities 1,767,503.79 14,690,330.97
Subtotal of cash inflow from operating activities 25,456,873.45 37,529,930.17
Cash paid for purchasing goods and receiving labor services 19,387,920.46 25,124,753.52
Cash paid to and for employees 15,255,504.63 18,992,397.84
Various taxes and fees paid 2,848,952.99 1,908,834.65
Other cash payments related to operating activities 6,036,416.59 8,687,235.59
Subtotal of cash outflows from operating activities 43,528,794.67 54,713,221.60
Net cash flow from operating activities -18,071,921.22 -17,183,291.43
II. Cash flow from investment activities:
Cash received from investment
Cash received from investment income 4,000,000.00
Net cash received from the disposal of fixed assets, intangible assets
and other long-term assets
Net cash received from disposal of subsidiaries and other business
units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 4,000,000.00
Cash paid for the purchase and construction of fixed assets, intangible
assets and other long-term assets
Cash Investment
Net cash paid for acquiring subsidiaries and other business units
Other cash paid relating to investing activities
Subtotal of cash outflows from investing activities 149,450.00 164,195.40
Net cash flows from investing activities -149,450.00 3,835,804.60
III. Cash flow from financing activities:
Absorb cash received from investment
Cash received from borrowing 11,088,001.75 12,579,556.02
Other cash receipts related to financing activities
Subtotal of cash inflows from financing activities 11,088,001.75 12,579,556.02
Cash paid for debt repayment 30,000,000.00
Cash paid for dividends, profits, or interest payments 3,505,381.95 3,358,806.97
Other cash payments related to financing activities 568,965.48 1,601,401.52
Subtotal of cash outflows from financing activities 34,074,347.43 4,960,208.49
Net cash flow from financing activities -22,986,345.68 7,619,347.53
IV. The impact of exchange rate changes on cash and cash
equivalents
V. Net increase in cash and cash equivalents -41,207,716.90 -5,728,139.30
Add: the balance of cash and cash equivalents at the beginning of the
period
VI. Balance of cash and cash equivalents at the end of the period 34,810,620.72 7,631,140.62
Legal Representative: Accounting Director:
Accounting Manager:
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. The year ended June 30, 2025 Unit：RMB
Current period
Equity attributable to parent company
Item Other Minority Total
Paid-in Other equity instruments Less: sharehold owner's
Capital compreh Special Surplus
capital (or treasury undistribute Subtotal ers' equity equity
Preferred Perpetual reserve ensive reserves reserve
equity) other stocks d profit
stock bond income
I. Balance at - -
the end of the 1,854,91 589,559.77 394,344,427 81,578,62
.00 67.58 6.96 02 1.04
previous year 0.00 .37 8.02
Add:
Accounting
policy changes
Correction
of previous
errors
Merger of
enterprises
under the same
control
Others
II. Balance at - -
the beginning 1,854,91 589,559.77 394,344,427
.00 67.58 6.96 02 8.02 1.04
of the year 0.00 .37
III. The
amount of
increase or - - - -
decrease in this 7,153,201.2 4,048,226.4 6,928,345. 10,976,57
year (decrease 9 6 97 2.43
is listed with "-
")
(1) Total - - -
comprehensive 7,153,201.2 7,153,201.2 3,755,321
income 9 9 .55
(2) Owner's
investment and 3,104,974. 3,104,974.8 520,374.2 3,625,349
reduction of 83 3 9 .12
capital
shares invested
by the owner
invested by
holders of other
equity
instruments
amount of
share-based
payment
included in
owner's equity
- -
(3) Profit
distribution
surplus reserve
- -
Distribution to
owners (or
shareholders)
(4) Internal
transfer of
owners' equity
of capital
reserve into
capital (or share
capital)
of surplus
reserves into
capital (or
equity)
reserves make
up for losses
of retained
earnings from
changes in the
defined benefit
plan
comprehensive
income carried
forward to
retained
earnings
(5) Special
reserve
special reserves
reserves
(6) Others
IV. Balance at - -
the end of the 1,854,91 589,559.77 401,497,628
.00 42.41 6.96 56 2.05 8.61
period 0.00 .66
Preceding period
Equity attributable to parent company
Other equity instruments Minority
Item Other
Paid-in Preferred Less: Total owner's
Capital comprehe Special Surplus undistrib shareholders'
capital (or stock Perpetu treasury Subtotal equity
other reserve nsive reserves reserve uted equity
equity) al bond stocks
income profit
- -
I. Balance at the end 5,111,258.
of the previous year 66
Add: Accounting
policy changes
Correction of
previous errors
Merger of
enterprises under the
same control
Others
- -
II. Balance at the 215,000,00 197,097,9 589,559.7 5,111,258. 78,708,576.4
beginning of the year 0.00 15.40 7 66 4
.00 306.51
III. The amount of
- -
increase or decrease 857,952.1 1,425,4 -
in this year (decrease 8 12.05 15,936,709.41
is listed with "-")
(1) Total - -
comprehensive 9,457,81 9,457,810. 4,100,899.82 -5,356,910.72
income 0.54 54
(2) Owner's -
investment and 567,459.8 834,261.18 266,801.31
reduction of capital 7
invested by the owner
by holders of other
equity instruments
share-based payment
included in owner's
equity
(3) Profit -
distribution 10,846,600.00
reserve
owners (or 10,846,600.0
shareholders) 0
(4) Internal transfer
of owners' equity
capital reserve into
capital (or share
capital)
surplus reserves into
capital (or equity)
make up for losses
retained earnings from
changes in the defined
benefit plan
comprehensive income
carried forward to
retained earnings
(5) Special reserve
reserves
reserves
(6) Others
- - -
IV. Balance at the end 215,000,00 197,955,8 1,425,4 589,559.7 72,797,137.4
of the period 0.00 67.58 12.05 7 4
.00 117.05 75
Legal Representative: Accounting Director: Accounting Manager:
Preparation unit：Nanjing Putian Telecommunications Co., Ltd. The year ended June 30, 2025 Unit：RMB
Current period
Other equity instruments Other
Paid-in Less:
Item Capital comprehen Surplus Total owner's
capital (or Preferred Perpetual treasury Special reserves undistributed
other reserve sive reserve equity
equity) stock bond stocks profit
income
- - -
I. Balance at the end 2,995,076.
of the previous year 96
Add: Accounting
policy changes
Correction of previous
errors
Others
- - -
II. Balance at the 215,000,00 158,864,042 2,995,076.
beginning of the year 0.00 .34 96
III. The amount of -
-2,686,436.15
increase or decrease 2,686,436.15
in this year (decrease
is listed with "-")
(1) Total
comprehensive -2,686,436.15
income
(2) Owner's
investment and
reduction of capital
invested by the owner
by holders of other
equity instruments
share-based payment
included in owner's
equity
(3) Profit
distribution
reserve
owners (or
shareholders)
(4) Internal transfer
of owners' equity
capital reserve into
capital (or share
capital)
surplus reserves into
capital (or equity)
make up for losses
retained earnings from
changes in the defined
benefit plan
comprehensive income
carried forward to
retained earnings
(5) Special reserve
reserves
reserves
(6) Others
- - -
IV. Balance at the 215,000,00 158,864,042 2,995,076.
end of the period 0.00 .34 96
Preceding period
Other equity instruments
Item Paid-in Less: Other Total
Perpetual Capital Special Surplus
capital (or treasury comprehensiv undistribute owner's
Preferre bond other reserve reserves reserve
equity) stocks e income d profit equity
d stock
- -
I. Balance at the end of
the previous year
Add: Accounting policy
changes
Correction of
previous errors
Others
- -
II. Balance at the 215,000,00 158,864,042.
-1,854,910.00 589,559.76 482,885,82 110,287,13
beginning of the year 0.00 34
III. The amount of
- -
increase or decrease in 1,425,412.0
this year (decrease is 5
listed with "-")
- -
(1) Total
comprehensive income
(2) Owner's investment 1,425,412.0
and reduction of capital 5
invested by the owner
holders of other equity
instruments
based payment included in
owner's equity
(3) Profit distribution
reserve
owners (or shareholders)
(4) Internal transfer of
owners' equity
reserve into capital (or
share capital)
surplus reserves into
capital (or equity)
make up for losses
earnings from changes in
the defined benefit plan
income carried forward to
retained earnings
(5) Special reserve
reserves
(6) Others
- -
IV. Balance at the end of 215,000,00 158,864,042. 1,425,412.0
-1,854,910.00 589,559.76 493,579,21 122,405,93
the period 0.00 34 5
Legal Representative: Accounting Director: Accounting Manager:
I. Company profile
Nanjing Putian Telecommunications Co., Ltd. (the “Company”), whose predecessor is Nanjing
Telecommunication Facility Factory, was established as a limited liability company through
financing under the approval of National Economic Institutional Reform Commission with
document of approval numbered TGS [1997] 28 dated March 21, 1997. The Company is
headquartered in Nanjing City, Jiangsu Province. Currently it holds a business license with unified
social credit code of 91320000134878054G, with registered capital of 215,000,000.00 yuan, total
share of 215,000,000.00 shares, with par value of 1 yuan per share. Among them, 115,000,000
shares are state-owned legal person shares, and 100,000,000 shares are B shares. The Company was
listed on the Shenzhen Stock Exchange on May 22, 1997.
The Company belongs to telecommunication equipment manufacture industry and is mainly engaged
in R&D, production, and sale of data, wire and wireless telecommunication equipment, distribution
and allocation of layout of telecommunication product, multimedia computer, digital television,
vehicle electronics and conference video system. R & D, manufacturing and sales of new energy
vehicle charging products and their accessories (including electric vehicle charger charging module,
charging station system, split charging cabinet, outdoor integrated pile, various AC and DC charging
piles and other accessories); Design and sales of new energy charging and discharging overall
solutions; Electric vehicle charging operation and maintenance. R & D and sales of software and
intelligent software platform. Smart city, smart elderly care and other industry information services.
R & D, manufacturing, sales, installation and service of video equipment and video conference
system. Agent sales of communication modified vehicles (excluding wholesale), and provide
corresponding after-sales service. Design, system integration and related consulting services of
communication information network engineering and computer information system engineering.
Design, construction, installation and service of building intelligent system engineering. Lease of
self owned assets such as houses and equipment.
The financial statements have been deliberated and approved for issue by the Board of Directors
dated August 4, 2025.
II. Preparation basis of the financial statements
(I) Preparation basis
The financial statements of the Company are prepared on the basis of going concern, based on actual
transactions and events, in accordance with the Accounting Standards for Business Enterprises-Basic
Standards and specific Accounting Standards promulgated by the Ministry of Finance (hereinafter
collectively referred to as the "Accounting Standards for Business Enterprises") and based on the
important accounting policies and accounting estimates described below.
(II) Assessment of the ability to continue as a going concern
The Company has no events or circumstances that would cause material doubt about its ability to go
as a going concern for the 12 months from the end of the reporting period.
III. Significant accounting policies and estimates
Important note: The Company has formulated specific accounting policies and estimates for
transactions or matters such as impairment of financial instruments, depreciation of fixed assets,
amortization of intangible assets and revenue recognition according to the actual characteristics of
production and operation.
(I) Statement of compliance
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the financial position of the
Company as of June 30, 2025, the operating results and cash flows of the year from January to June
(II) Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian
calendar.
(III) Operating cycle
The Company has a relatively short operating cycle for its business, an asset or a liability is
classified as current if it is expected to be realized or due within 12 months.
(IV) Functional currency
The Company’s functional currency is Renminbi (RMB) Yuan.
(V) Method for determining importance criteria and selection criteria
Importance of itemized items in the notes to the financial statements
The Company determines the importance of the detailed items in the notes to the financial
statements, and on the basis of the importance of the items in the financial statements, the specific
items account for a certain proportion of the project, or the combined amount, while taking into
account the nature of the specific items. Some items are not material to the financial statements but
may be material to the notes and still need to be disclosed separately in the notes. The relevant
materiality criteria for the notes to the financial statements are:
item Materiality criteria
Accounting for more than 5% of the amount of the corresponding receivables, and the
Material item receivables for
amount exceeds 4 million yuan, or the provision for bad debts in the current period affects
provision for bad debts
the change in profit and loss
Recovery or reversal of The impact of the reversal of bad debt reserves accounts for more than 5% of the current
provisions for bad debts of period's bad debt reserves, and the amount exceeds 1 million yuan, or affect the change in
significant receivables profit and loss of the current period
Significant debt investments Accounts for more than 5% of the debt investment, and the amount exceeds 1 million yuan
Important accounts payable and
Account for more than 5% of the balance of accounts payable or other payables, and the
other payables with an account
amount exceeds 1 million yuan
age of more than 1 year
Book value of a long-term equity investment of more than 10%, or investment gains (losses
Significant joint ventures or
in absolute terms) from a joint venture or associate of more than 10% of the net profit of the
associates
consolidated statement
(VI) Accounting treatments of business combination under and not under common control
Of a long-term equity investment under the same control enterprise merger form combined party to
pay in cash, transfers non-cash assets or bear debt, as a merger of consideration, the company
owners' equity on the combining date according to the combined party on the final the share of the
book value of the control side of the consolidated financial statements as the initial cost of the long-
term equity investment. If the merging party issues equity instruments as the merger consideration,
the total par value of the issued shares shall be used as the share capital. The difference between the
initial investment cost of long-term equity investment and the book value of the combined
consideration (or the total face value of the issued shares) shall be adjusted to the capital reserve; If
the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
For business combinations not under the same control, the merger cost is the sum of the fair value of
the assets paid by the purchaser, the liabilities incurred or assumed and the equity securities issued
by the purchaser on the purchase date in order to gain control over the acquired purchaser. The
identifiable assets, liabilities and contingent liabilities of the purchased party that are acquired in a
business combination under different control and meet the recognition conditions shall be measured
at fair value on the purchase date. The difference between the buyer's cost of the merger and the fair
value share of the identifiable net assets of the acquiree obtained in the merger is reflected as the
value of goodwill. If the merger cost is less than the fair value share of the identifiable net assets of
the acquiree obtained in the merger, the difference between the merger cost and the fair value share
of the identifiable net assets of the acquiree obtained in the merger shall be included in the non-
operating income of the current period.
(VII) Compilation method of consolidated financial statements
The parent company includes all subsidiaries under its control in the consolidated scope of the
consolidated financial statements. The consolidated financial statements are based on the financial
statements of the parent company and its subsidiaries and are prepared by the parent Company in
accordance with Accounting Standards for Business Enterprises No. 33 - Consolidated Financial
Statements based on other relevant information.
The Company includes all subsidiaries (including the separate entities controlled by the Company)
into the scope of consolidated financial statements, including the enterprises controlled by the
Company, the divisible parts of the investee units and the structured entities.
company
If the accounting policies or accounting periods adopted by a subsidiary are not consistent with those
adopted by the Company, it shall make necessary adjustments to the financial statements of the
subsidiary in accordance with the accounting policies or accounting periods adopted by the
Company when preparing the consolidated financial statements.
The consolidated financial statements are based on the financial statements of the Company and
subsidiaries and have offset internal transactions that occur between the Company and subsidiaries
and among subsidiaries. The shares of the owners' equity of subsidiaries that do not belong to the
Company shall, as minority shareholders' equity, be listed under the "minority shareholders' equity"
item in the consolidated balance sheet. Long-term equity investments of the Company held by
subsidiaries are considered Treasury shares of the Company and are shown as a deduction of
Stockholders' equity in the consolidated balance sheet under the item of Stockholders' equity as
"Less: Treasury shares".
For the subsidiaries acquired by the merger of enterprises under the same control, the merger shall
be deemed to have occurred when the ultimate controlling party began to exercise control, and its
assets, liabilities, operating results and cash flows shall be included in the consolidated financial
statements from the beginning of the merger period. For subsidiaries acquired by a merger of
enterprises not under the same control, the individual financial statements shall be adjusted on the
basis of the fair value of identifiable net assets on the purchase date when preparing consolidated
financial statements.
In the case of partial disposal of the long-term equity investment in the subsidiary without loss of
control, in the consolidated financial statements, the disposal price and the disposal of the long-term
equity investment shall be entitled to the difference between the shares of net assets continuously
calculated by the subsidiary since the purchase date or the merger date, and the capital reserve
(capital premium or equity premium) shall be adjusted. If the capital reserve is insufficient for write-
down, the retained earnings shall be adjusted.
If the investor loses the right of control due to the disposal of part of the equity investment or other
reasons, the remaining equity shall be remeasured according to the fair value on the date of the loss
of the right of control when preparing the consolidated financial statements. The sum of the
consideration obtained from the disposal of the equity and the fair value of the remaining equity,
minus the difference between the shares of the original shareholding proportion which should enjoy
the net assets continuously calculated from the purchase date or merger date of the original
subsidiary, shall be included in the investment income of the period of loss of control, and the
goodwill shall be written down at the same time. Other comprehensive income related to the equity
investment of the original subsidiary shall be converted to current investment income when the right
of control is lost.
(VII) Classification of joint arrangements and accounting treatment of joint operations
Joint venture arrangement is divided into joint venture and joint operation. If the joint venture
arrangement is not reached by a single entity, it shall be classified as joint operation. A separate
subject refers to a subject with a separate identifiable financial structure, including a separate legal
entity and a subject without legal entity qualification but recognized by law. A joint venture
arrangement through a separate entity, usually classified as a joint venture. Where the rights and
obligations of the party under the joint venture arrangement have changed due to changes in relevant
facts and circumstances, the party shall reassess the classification of the joint venture arrangement.
As a participant in the joint operation, the Company shall recognize the following items related to
the share of interests in the joint operation and conduct accounting treatment in accordance with the
relevant accounting standards for enterprises: recognize the assets or liabilities held separately and
recognize the assets or liabilities held jointly according to the share; Recognize the revenue
generated from the sale of the share of output enjoyed by the joint operation; To recognize the
revenue generated by the sale of the output of the joint operation according to its share; Recognize
expenses incurred separately and expenses incurred in joint operations by share.
The Company is a participant without joint control over the joint operation. If the company enjoys
the relevant assets of the joint operation and bears the relevant liabilities of the joint operation, it
shall conduct accounting treatment according to the provisions of the joint operation participant;
Otherwise, according to the provisions of the relevant enterprise accounting standards for accounting
treatment.
The company is the joint venture party, in accordance with the "Accounting Standards for
Enterprises No. 2 - Long-term Equity investment" for the joint venture investment accounting
treatment; The Company is not a joint venture party, according to the extent of the impact on the
joint venture accounting treatment.
(VIII) Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment.
Cash equivalents refer to short-term, highly liquid investments that can be readily converted to cash
and that are subject to an insignificant risk of changes in value.
(IX) Foreign currency translation
The Company shall enter the foreign currency transactions in standard currency at the spot rate
equivalent to the date of occurrence of the transaction. The foreign currency monetary items on the
balance sheet date shall be translated at the spot exchange rate on the balance sheet date. The
exchange difference arising from the difference between the spot exchange rate on the current date
and the initial recognition rate or the spot exchange rate on the previous balance sheet date shall be
included in the current profit and loss, except that the exchange difference of special foreign
currency loans conforming to the capitalization conditions shall be capitalized and included into the
cost of related assets during the capitalization period. For foreign currency non-monetary items
measured at historical cost, the spot exchange rate on the transaction date shall still be adopted and
the amount of the accounting standard currency shall not be changed. Foreign currency non-
monetary items measured at fair value shall be converted by the spot exchange rate on the date of
fair value determination. The difference between the converted amount of accounting standard
currency and the original amount of accounting standard currency shall be treated as fair value
changes (including exchange rate changes) and recorded into current profit and loss or recognized as
other comprehensive income.
If the subsidiaries, joint ventures and associated enterprises of the Company adopt a different
accounting standard currency from the Company, they shall conduct accounting and preparation of
consolidated financial statements after converting their foreign currency financial statements. The
assets and liabilities in the balance sheet shall be translated at the spot exchange rate at the balance
sheet date, and the owners' equity items shall be translated at the spot exchange rate at the time of
occurrence except for the "undistributed profit" item. The income and expense items in the income
statement shall be converted at the spot exchange rate on the transaction date. The balance of
translation in foreign currency financial statements resulting from translation is shown as follows in
owners' equity items and other comprehensive income in the balance sheet. Foreign currency cash
flows shall adopt the spot rate on the date of occurrence of cash flows. The impact of exchange rate
changes on cash is shown separately in the statement of cash flows. When disposing of overseas
operations, the balance of translation of foreign currency statements related to the overseas
operations shall be transferred into the disposal profit or loss of the current period in full or in
proportion to the disposal of the overseas operations.
(X) Financial instruments
Financial instruments refer to contracts that form the financial assets of one party and the financial
liabilities or equity instruments of another party.
(1) Financial assets
The Company classifies financial assets that meet the following conditions as financial assets
measured at amortized cost: ① The Company's business model of managing financial assets is to
collect contract cash flow; ② The terms of the contract of the financial asset stipulate that the cash
flow generated on a specified date is only the payment of the principal amount and the interest based
on the outstanding principal amount.
The Company classifies the financial assets that meet the following conditions as those measured at
fair value and whose changes are included in other comprehensive income: ① The Company's
business model of managing financial assets aims at both collecting contract cash flow and selling
the financial assets; ② The terms of the contract of the financial asset stipulate that the cash flow
generated on a specified date is only the payment of the principal amount and the interest based on
the outstanding principal amount.
For investments in non-trading equity instruments, the Company may, upon initial recognition,
irrevocably designate them as financial assets measured at fair value and whose changes are included
in other comprehensive income. The designation is made on an individual investment basis and the
underlying investment meets the definition of an equity instrument from the issuer's point of view.
In addition to financial assets classified as financial assets measured at amortized cost and financial
assets measured at fair value and whose changes are booked into other comprehensive income, the
Company classifies them as financial assets measured at fair value and whose changes are booked
into current profit and loss. In the initial recognition, if accounting mismatch can be eliminated or
reduced, the Company may irrevocably designate financial assets as financial assets measured at fair
value and whose changes are recorded into current profit and loss.
When the Company changes the business model of managing financial assets, it will reclassify
all the affected financial assets on the first day of the first reporting period after the change of the
business model, and adopt the future applicable method to conduct relevant accounting treatment
from the reclassification date, without retroactive adjustment of previously recognized gains, losses
(including impairment losses or gains) or interest.
(2) Financial liabilities
Financial liabilities at the initial recognition are classified as: financial liabilities measured at fair
value and whose changes are booked into current profit and loss; The financial assets transfer does
not meet the conditions for termination of recognition or continues to involve the financial liabilities
formed by the transferred financial assets; Financial liabilities measured at amortized cost. All
financial liabilities are not reclassified.
The Company's financial instruments are initially recognized as measured at fair value. For
financial assets and financial liabilities measured at fair value and whose changes are booked into
current profit and loss, relevant transaction costs are directly booked into current profit and loss; For
other types of financial assets or financial liabilities, related transaction costs are included in the
initial recognized amount. For accounts receivable or notes receivable arising from the sale of
products or the provision of services that do not contain or take into account significant financing
components, the amount of consideration to which the Company is entitled to collect as expected
shall be the initial recognition amount. Subsequent measurement of financial instruments depends on
their classification.
(1) Financial assets
①Financial assets measured at amortized cost. After the initial recognition, such financial assets are
measured by the amortized cost using the effective interest rate method. The gains or losses
generated by financial assets measured at amortized cost and not belonging to any hedging
relationship shall be booked into current profit and loss when recognition is terminated, reclassified,
amortized according to the effective interest rate method or impairment is recognized.
②Financial assets that are measured at fair value and whose changes are booked into current profit
or loss. After the initial recognition, such financial assets (except part of the financial assets
belonging to the hedge relationship) shall be measured at the fair value, and the resulting gains or
losses (including interest and dividend income) shall be booked into current profit and loss.
③Investment in debt instruments that are measured at fair value and whose changes are recorded in
other comprehensive income. After the initial recognition, the fair value of such financial assets is
used for subsequent measurement. Interest, impairment losses or gains and exchange gains and
losses calculated using the effective interest rate method are included in current profit and loss, while
other gains or losses are included in other comprehensive income. Upon termination of recognition,
the accumulated gains or losses previously booked into other comprehensive income shall be
transferred out of other comprehensive income and booked into current profit and loss.
(2) Financial liabilities
① Financial liabilities measured at fair value and whose changes are booked into current profit and
loss. Such financial liabilities include trading financial liabilities (including derivative instruments
belonging to financial liabilities) and financial liabilities designated as measured at fair value and
whose changes are booked into current profit and loss. After the initial recognition, the fair value of
such financial liabilities is used for subsequent measurement. Except for the hedge accounting, the
gain or loss (including interest expense) generated by the change in the fair value of trading financial
liabilities is booked into current profit and loss. If a financial liability is specified as a financial
liability measured at fair value and its change is included in current profit and loss, the change in the
fair value of the financial liability caused by the change of the enterprise's own credit risk shall be
included in other comprehensive income, and the change in other fair value shall be included in
current profit and loss. If accounting mismatch in profit and loss will be caused or expanded if the
impact of the change in credit risk of the financial liability is included in other comprehensive
income, the Company shall book all gains or losses of the financial liability into current profit and
loss.
② Financial liabilities measured at amortized cost. After the initial recognition, such financial
liabilities are measured at amortized cost using the effective interest rate method.
If there are financial instruments in active markets, their fair value shall be determined by quotation
in active markets; If there is no active market for financial instruments, use valuation techniques to
determine their fair value. Valuation techniques mainly include market method, income method and
cost method. In limited cases, if recent information used to determine fair value is insufficient, or if
the distribution of possible estimates of fair value is wide, and cost represents the best estimate of
fair value within the range, the cost may represent its appropriate estimate of fair value within the
range of distribution. The Company uses all information about the investee's performance and
operations available after the initial confirmation date to determine whether the cost represents fair
value.
liabilities
(1) Financial assets
The financial assets of the Company shall be terminated if they meet one of the following conditions:
(1) The contractual right to collect the cash flow of the financial assets shall be terminated; (2) The
financial assets have been transferred, and the company has transferred almost all the risks and
rewards of the ownership of the financial assets; (3) The financial assets have been transferred.
Although the Company has neither transferred nor retained almost all rewards on the ownership of
the financial assets, it has not retained control of the financial assets.
Where the Company neither transfers nor retains almost all remuneration on the ownership of the
financial assets, and retains control over the financial assets, the relevant financial assets shall be
recognized according to the degree of continued involvement in the transferred financial assets, and
the relevant liabilities shall be recognized accordingly.
If the transfer of financial assets meets the conditions for termination of recognition as a whole, the
difference between the following two amounts shall be recorded into the current profit and loss: (1)
the book value of the transferred financial assets on the date of termination of recognition; (2) The
sum of the consideration received due to the transfer of financial assets and the amount
corresponding to the part of termination of recognition in the accumulative amount of the change in
fair value directly included in other comprehensive income (the financial assets involved in the
transfer are financial assets classified as measured at fair value and whose change is included in
other comprehensive income).
If the partial transfer of financial assets meets the conditions for termination of recognition, the book
value of the whole transferred financial assets shall be apportioned between the terminated and
unterminated part according to their relative fair value on the transfer date, and then the difference of
the following two amounts shall be recorded into current profit and loss: (1) The book value of the
terminated recognition part on the termination of recognition date; (2) The sum of the consideration
received for the part of termination recognition and the amount corresponding to the part of
termination recognition in the accumulative amount of changes in fair value originally included in
other comprehensive income (financial assets involved in transfer are financial assets classified as
measured at fair value and whose changes are included in other comprehensive income).
(2) Financial liabilities
If the current obligation of the financial liability (or part thereof) has been discharged, the Company
shall terminate the recognition of the financial liability.
If the recognition of financial liabilities (or part thereof) is terminated, the Company shall book the
difference between the book value and the consideration paid into the current profit and loss.
(XI) Methods for determining expected credit losses and accounting treatment
Based on expected credit losses, the Company conducts impairment accounting treatment and
recognizes loss reserves for financial assets (including receivables) measured at amortized cost,
financial assets classified as measured at fair value and whose changes are included in other
comprehensive income (including receivables financing), lease receivables.
On each balance sheet date, the company evaluates whether the credit risk of relevant financial
instruments has significantly increased since the initial recognition. The process of credit impairment
of financial instruments is divided into three stages, and different accounting treatment methods are
adopted for the impairment of financial instruments at different stages: (1) In the first stage, if the
credit risk of the financial instrument does not increase significantly after the initial recognition, the
Company shall calculate the loss reserve based on the expected credit loss of the financial instrument
in the next 12 months, and calculate the interest income based on its book balance (i.e. without
deducting the impairment reserve) and the actual interest rate; (2) In the second stage, if the credit
risk of the financial instrument has increased significantly since the initial recognition but no credit
impairment has occurred, the Company shall measure the loss reserve according to the expected
credit loss during the entire duration of the financial instrument and calculate the interest income
according to its book balance and actual interest rate; (3) In the third stage, if credit impairment
occurs after the initial recognition, the Company shall measure the loss reserve according to the
expected credit loss during the entire duration of the financial instrument, and calculate the interest
income according to its amortized cost (book balance minus impairment reserve already drawn) and
the actual interest rate.
(1) Lower credit risk financial instruments measure loss reserve method
For financial instruments with lower credit risk at the balance sheet date, the Company may
directly assume that the credit risk of such instruments has not increased significantly since the
initial recognition, without comparing them with the credit risk at the time of their initial recognition.
If the default risk of the financial instrument is low, the debtor has a strong ability to perform its
contractual cash flow obligations in the short term, and even if there are adverse changes in the
economic situation and business environment in a longer period of time, it may not necessarily
reduce the borrower's ability to perform its contractual cash flow obligations, the financial
instrument is regarded as having a low credit risk.
(2) How to measure loss reserve for receivables and lease receivables
① Receivables that do not contain significant financing components. For receivables that are formed
from transactions regulated by Accounting Standard for Business Enterprises No. 14 - Revenue and
do not have a significant financing component, the Company adopts a simplified approach that
always measures the loss reserve against expected credit losses over the entire duration.
Depending on the nature of the financial instrument, the Company assesses whether credit risk is
significantly increased on the basis of individual financial assets or a portfolio of financial assets.
The Company divides notes receivable and accounts receivable into several combinations according
to credit risk characteristics, and calculates expected credit losses on the basis of the combination.
The basis for determining the combination is as follows:
Accounts receivable Portfolio 1: combination of related parties within the scope of consolidation
Accounts receivable Portfolio 2: aging portfolio
Notes Receivable Portfolio 1: Banker's Acceptance receivable
Notes Receivable Portfolio 2: Commercial Acceptance receivable
For the accounts receivable divided into portfolios, the company, by referring to the historical credit
loss experience, combined with the current situation and the forecast of future economic conditions,
prepares the comparison table of the expected credit loss rate between the age of accounts receivable
and the entire duration of accounts receivable to calculate the expected credit loss. For notes
receivable divided into portfolios, the Company calculates expected credit losses based on default
risk exposure and expected credit loss rate over the entire duration by referring to historical credit
loss experience, combining current situation and forecast of future economic conditions.
Accounts receivable -- a comparison of the aging of an aging portfolio with the expected credit loss
rate over its entire life
Aging of account Expected credit loss rate of accounts receivable (%)
Within 1 Year 1.00
More than 5 Years 100.00
② Receivables and lease receivables with a significant financing component.
For receivables with a significant financing component and for lease receivables regulated by
Accounting Standard for Business Enterprises No. 21 - Leases, the Company measures the loss
reserve in accordance with the general method known as the "three-stage" model.
(3) Other methods of measuring loss reserves for financial assets
For financial assets other than the above, such as debt investments, other debt investments, other
receivables, long-term receivables other than lease receivables, the Company measures the loss
reserve in accordance with the general method, namely the "three-stage" model.
The Company takes the following factors into account when assessing whether credit risk is
significantly increased in the event of credit impairment of the measurement financial instruments:
The Company divides other receivables into several combinations according to the nature of the
amounts, and calculates the expected credit loss on the basis of the combination. The basis for
determining the combination is as follows:
Other receivables Portfolio 1: Combination of related parties within the scope of consolidation
Other receivables Portfolio 2: Financing margin portfolio
Other receivables Portfolio 3: Export tax rebates receivable portfolio
In order to reflect the changes of the credit risks of financial instruments since the initial recognition,
the Company remeasures the expected credit losses on each balance sheet date, and the resulting
increase in the loss reserve or reversal amount shall be recorded into the current profit and loss as
impairment losses or gains. Write off the carrying value of the financial asset listed in the balance
sheet or into the estimated liabilities or into other comprehensive income (debt investment measured
at fair value and its changes into other comprehensive income).
(XII) Inventories
Inventory refers to finished products or commodities held by the Company in daily activities for sale,
products in the process of production, materials and materials consumed in the process of production
or provision of services, etc. It mainly includes raw materials, turnover materials (packaging, low-
value consumable, etc.), commissioned processing materials, products in process, homemade semi-
finished products, finished products (stock goods), etc.
When the inventory is dispatched, the monthly weighted average method is adopted to determine the
actual cost of delivery.
On the balance sheet date, the inventory shall be measured according to the lower of the cost and net
realizable value, and the inventory decline reserve shall be calculated according to the single
inventory item. However, for the inventory with a large quantity and a low unit price, the inventory
decline reserve shall be calculated according to the inventory category.
On the balance sheet date, the inventory shall be measured by the lower of cost and net realizable
value, and the inventory depreciation reserve shall be calculated according to the difference between
the cost of inventory class and net realizable value. The net realizable value of the inventory directly
used for sale shall be determined by the estimated selling price of the inventory less estimated selling
expenses and related taxes in the normal course of production and operation; For inventories that
need to be processed, the net realizable value shall be determined by the estimated selling price of
finished products produced in the normal course of production and operation after deducting the
estimated cost, estimated selling expenses and related taxes to be incurred upon completion; On the
balance sheet date, if a part of the same inventory has a contract price, but the other part does not
have a contract price, its net realizable value shall be determined respectively, and the corresponding
cost shall be compared with it to determine the amount to be withdrawn or transferred back from the
reserve for inventory declines respectively.
The company's inventory system is the perpetual inventory system.
Low - value consumable goods and packaging are amortized by one - pass method.
(XIII) Contract assets and contract liabilities
The Company presents as a contractual asset the right to receive consideration for goods or services
transferred to the Customer, subject to factors other than the passage of time. Provision for
impairment of contracted assets shall be made according to the expected credit loss method of
financial instruments. For contract assets that do not contain a material financing component, the
Company adopts a simplified method to measure loss provisions. For contract assets that contain
significant financing components, the Company measures loss provisions in accordance with the
general method.
In case of impairment loss on contract assets, "asset impairment loss" shall be debited according to
the amount to be written down, and the impairment provision for contract assets shall be credited;
The reverse entry is made when the asset impairment provision has been transferred back.
Obligations of the Company to transfer goods or services to the Customer for consideration received
or receivable from the customer shall be listed as contractual liabilities.
The Company presents contractual assets and contractual liabilities under the same contract on a net
basis.
(XIV) Long-term equity investments
For the long-term equity investment obtained from the enterprise merger, if the enterprise merger is
under the same control, the initial investment cost of the long-term equity investment shall be taken
as the share of the owner's equity of the merged party in the book value of the final controlling
party's consolidated financial statements on the merger date; In the case of enterprise merger not
under the same control, the initial investment cost of long-term equity investment shall be taken as
the merger cost determined on the purchase date; For long-term equity investment obtained by cash
payment, the initial investment cost is the actual purchase price paid; For the long-term equity
investment obtained by issuing equity securities, the initial investment cost shall be the fair value of
the equity securities issued; The initial cost of long-term equity investment obtained through debt
restructuring shall be determined in accordance with the relevant provisions of Accounting
Standards for Enterprises “CASBE 12 – Debt Restructuring”; For long-term equity investment
obtained by exchange of non-monetary assets, the initial investment cost shall be determined in
accordance with relevant provisions of Accounting Standards for Business Enterprises “CASBE 7 –
Non-cash Assets Exchange”.
For long-term equity investments with control relationship, it is accounted for with cost method; for
long-term equity investments with joint control or significant influence relationship, it is accounted
for with equity method. The company for equity investment consortium, one part of through risk
investment institutions, mutual funds, trust companies or similar subject, including cast the insurance
fund, indirect holding, whether the above subject has a significant influence on this part of the
investment, the company in accordance with the accounting standards for enterprises “CASBE 22 –
Financial Instruments: Recognition and Measurement”, and the rest of the equity method accounting.
Having joint control over the invested entity, refers to an arrangement returns have a significant
impact on activity must go through the participants agreed to share control decisions, including the
sale and purchase of goods or services, financial assets management, purchase and disposal of the
assets, research and development activities, and financing activities, etc.; Having a significant
influence on the invested entity refers to having a significant influence when holding more than 20%
to 50% of the voting capital of the invested entity. Or, although less than 20%, has a significant
impact if one of the following conditions is met: representation on the board of directors or a similar
authority of the invested entity; To participate in the policy making process of the investee;
Dispatching management personnel to the invested units; The invested entity relies on the
technology or technical data of the investment company; Having important transactions with the
invested units.
(XV) Investment property
The Company's investment property categories, including leased land use rights, leased buildings,
land use rights held and ready to be transferred after appreciation. The initial measurement of
investment property is carried out according to the cost, and the subsequent measurement is carried
out according to the cost model.
The average life method is adopted for the depreciation of leased buildings in the Company's
investment property, and the specific accounting policy is the same as that of fixed assets. The land-
use right leased in investment property and the land-use right held and transferred after appreciation
shall be amortized by the straight-line method. The specific accounting policies are the same as those
for intangible assets.
(XVI) Fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services, for
rental to others, or for administrative purposes, and expected to be used during more than one
accounting year. Fixed assets are recognized if, and only if, it is probable that future economic
benefits associated with the assets will flow to the Company and the cost of the assets can be
measured reliably.
The company's fixed assets are mainly divided into: buildings and structures, machinery, electronic
equipment, transport facilities, etc. The depreciation method adopts the average life method. The
service life and estimated net salvage value of fixed assets shall be determined according to the
nature and usage of various types of fixed assets. At the end of the year, the service life, estimated
net salvage value and depreciation method of the fixed assets shall be rechecked. If there is any
difference from the original estimate, corresponding adjustment shall be made. In addition to the
fixed assets that have been fully depreciated but are still in use and the land that is separately priced
and recorded, the Company will calculate and depreciate all the fixed assets.
Estimated residual value Annual depreciation rate
Categories Useful life (years)
proportion (%) (%)
Buildings and structures 15-35 3.00 2.77-6.47
Machinery 10-15 3.00 6.47-9.70
Transport facilities 6-8 3.00 12.13-16.17
Electronic equipment 4-11 3.00 8.82-24.25
Other equipment 4-11 3.00 8.82-24.25
(XVII) Construction in progress
associated with the item will flow to the Company, and the cost of the item can be measured reliably.
Construction in progress is measured at the actual cost incurred to reach its designed usable
conditions.
designed usable conditions. When the auditing of the construction in progress was not finished while
reaching the designed usable conditions, it is transferred to fixed assets using estimated value first,
and then adjusted accordingly when the actual cost is settled, but the accumulated depreciation is not
to be adjusted retrospectively.
(XVIII) Borrowing costs
Borrowing costs incurred by the Company that can be directly attributed to the purchase,
construction or production of assets eligible for capitalization shall be capitalized and included in the
cost of relevant assets; Other borrowing costs shall be recognized as expenses according to the
amount incurred when incurred and recorded into current profits and losses. The assets that meet the
capitalization conditions refer to the fixed assets, investment real estate, inventory and other assets
that need to go through a fairly long period of purchase, construction or production activities to
reach the predetermined state of being usable or saleable.
Capitalization period refers to the period from the beginning of capitalization of borrowing costs to
the end of capitalization. Periods of suspension of capitalization of borrowing costs are not included.
Capitalization of borrowing costs shall be suspended if abnormal interruption occurs in the purchase,
construction or production process and the interruption lasts for more than 3 consecutive months.
The borrowing of a special loan shall be determined according to the amount of the interest expense
actually incurred in the current period of the special loan, minus the interest income obtained from
depositing the unused loan funds in the bank or the investment income obtained from temporary
investment; Occupied general borrowings shall be calculated and determined according to the
weighted average of the accumulated asset expenditure exceeding the portion of special borrowings
multiplied by the capitalization rate of occupied general borrowings, and the capitalization rate shall
be the weighted average interest rate of general borrowings; If there is a discount or premium on the
loan, the amount of discount or premium to be amortized in each accounting period shall be
determined according to the effective interest rate method, and the amount of interest for each period
shall be adjusted.
The effective interest rate method is a method to calculate the amortized discount or premium or
interest expense of a loan according to the effective interest rate. The effective interest rate is the
future cash flow of the loan during its expected life, discounted as the interest rate used in the current
book value of the loan.
(XIX) Intangible assets
The Company's intangible assets are initially measured at cost. The purchased intangible assets shall
be regarded as the actual cost according to the actual price paid and related expenses. The actual cost
of intangible assets invested by investors shall be determined according to the value stipulated in the
investment contract or agreement, but if the value stipulated in the contract or agreement is unfair,
the actual cost shall be determined according to the fair value. For self-developed intangible assets,
the cost shall be the total amount of expenses incurred before reaching the intended use.
The Company's subsequent measurement methods for intangible assets are as follows: Intangible
assets with limited service life shall be amortized by the straight-line method, and the service life
and amortization method of intangible assets shall be rechecked at the end of the year. If there is any
difference from the original estimate, corresponding adjustment shall be made; Intangible assets with
uncertain service life are not amortized, but at the end of the year, the service life shall be rechecked.
When there is conclusive evidence that the service life is limited, the service life shall be estimated
and amortized according to the straight-line method.
Intangible assets with limited useful life are amortized as follows:
Items Amortization period (years)
Software 3-10
patent right and non-patented technology 5-10
land use right 40-50
The Company will not be able to foresee the period of time that the asset will bring economic
benefits to the Company, or the intangible assets with uncertain service life are identified as
intangible assets with uncertain service life. The judgment basis of uncertain service life is: it comes
from contractual rights or other legal rights, but the contract or legal provisions do not specify the
service life; Based on the industry situation or relevant experts' arguments, it is still impossible to
judge the period when intangible assets bring economic benefits to the company.
At the end of each year, the service life of intangible assets with uncertain service life is reviewed,
mainly in a bottom-up way. The departments related to the use of intangible assets conduct basic
review to evaluate whether the judgment basis of uncertain service life has changed.
projects, as well as specific criteria for development stage expenditures to meet the capitalization
conditions
Expenditure in the research phase of internal research and development projects shall be recorded
into current profits and losses when incurred; The expenditure in the development stage shall be
transferred to the accounting of intangible assets if it meets the conditions of being recognized as
intangible assets.
Specific criteria for dividing the research phase and development phase of an internal research and
development project: (1) it is technically feasible to complete the intangible asset so that it can be
used or sold; (2) it has the intention to complete the intangible asset and use or sell it; (3) The way in
which intangible assets generate economic benefits, including being able to prove that there is a
market for the products produced by using the intangible assets or that there is a market for the
intangible assets themselves, and that the intangible assets will be used internally, being able to
prove their usefulness; (4) it has the support of sufficient technology, financial resources and other
resources to complete the development of the intangible asset and has the ability to use or sell the
intangible asset; (5) The expenditure attributable to the development stage of the intangible asset can
be measured reliably.
(XX) Impairment of part of long-term assets
If long-term equity investment, investment real estate measured by the cost model, fixed assets,
intangible assets of construction in progress and other long-term assets show signs of impairment on
the balance sheet date, the impairment test shall be conducted. If the result of the impairment test
shows that the recoverable amount of the asset is lower than its carrying value, the impairment
reserve shall be calculated and booked into the impairment loss according to the difference.
The recoverable amount is the higher between the net fair value of the asset less the disposal charge
and the present value of the expected future cash flows of the asset. If it is difficult to estimate the
recoverable amount of a single asset, the recoverable amount of the asset group shall be determined
based on the asset group to which the asset belongs. An asset group is the smallest set of assets that
can independently generate cash inflows.
Goodwill shown separately in the financial statements, regardless of whether there is evidence of
impairment, shall be tested for impairment at least annually. In the impairment test, the carrying
value of goodwill is apportion to the group of assets or combination of asset groups expected to
benefit from the synergies of the business combination. If the test results show that the recoverable
amount of the asset group or the asset group combination containing the apportion of goodwill is
lower than its carrying value, the corresponding impairment loss shall be recognized. The amount of
impairment loss shall first offset the book value of goodwill apportion to the asset group or asset
group combination, and then offset the book value of other assets in proportion to the proportion of
the book value of assets other than goodwill in the asset group or asset group combination.
Once the above-mentioned asset impairment loss is recognized, the part whose value can be
recovered shall not be transferred back in the following period.
(XXI) Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over
one year (excluding one year). They are recorded with actual cost, and evenly amortized within the
beneficiary period or stipulated period. If items of long-term prepayments fail to be beneficial to the
following accounting periods, residual values of such items are included in profit or loss.
(XXII) Employee benefits
Employee benefits refers to various forms of remuneration or compensation provided by the
Company for obtaining services provided by employees or for terminating labor relations. Employee
benefits include short-term employee benefits, post-employment benefits, termination benefits and
other long-term employee benefits.
During the accounting period when employees provide services for the company, the actual short-
term compensation is recognized as liabilities and booked into the current profits and losses, except
for those required or allowed to be booked into the cost of assets by the accounting standards for
enterprises. The employee welfare expense incurred by the Company shall be included in the current
profit and loss or the cost of relevant assets according to the actual amount when it is actually
incurred. If the employee welfare fee is non-monetary welfare, it shall be measured at fair value. The
company for the medical treatment insurance premium of worker pay, inductrial injury insurance,
birth insurance premium of social insurance premiums and housing accumulation fund, and
according to the rules extraction of the trade union and employee education funds and provide
services in the workers of the accounting period, according to the provisions stipulated in the basic
and provision ratio calculate and determine the corresponding compensation amount, and confirm
corresponding liabilities, Include current profit or loss or related asset cost.
During the accounting period when employees provide services, the payable amount calculated
according to the set depository plan shall be recognized as liabilities and recorded into the current
profit and loss or the cost of relevant assets. According to the formula determined by the expected
cumulative benefit unit method, the welfare obligation arising from the set benefit plan shall be
attributed to the period of service provided by the employee, and shall be included in the current
profit and loss or the cost of relevant assets.
Termination benefits provided to employees are recognized as an employee benefit liability for
termination benefits, with a corresponding charge to profit or loss at the earlier of the following
dates: a. when the Company cannot unilaterally withdraw the offer of termination benefits because
of an employment termination plan or a curtailment proposal; or b. when the Company recognizes
cost or expenses related to a restructuring that involves the payment of termination benefits.
Other long-term employee benefits provided by the company to the employees that meet the
conditions for setting up an escrow plan shall be dealt with in accordance with the provisions on
setting up an escrow plan; In addition, identify and measure other long-term employee benefit net
liabilities or net assets according to the relevant provisions of the defined benefit plan.
(XXIII) Provisions
An obligation related to a contingent event is recognized as a projected liability when it is a current
obligation undertaken by the Company and the performance of the obligation is likely to result in an
outflow of economic benefits and the amount of the obligation can be measured reliably. The
Company shall make initial measurement according to the best estimate of the expenditure required
to fulfill the relevant current obligations. If there exists a continuous range of expenditure required
and various outcomes within the range are equally likely to occur, the best estimate shall be
determined as the intermediate value within the range; If more than one project is involved, calculate
the best estimate based on the various possible outcomes and the associated probabilities.
On the balance sheet date, the book value of the projected liabilities shall be reviewed. If there is
conclusive evidence that the book value does not truly reflect the current best estimate, the book
value shall be adjusted according to the current best estimate.
(XXIV) Revenue
The Company has fulfilled its performance obligation under the contract, that is, when the customer
obtains control of the relevant commodity or service, it recognizes revenue according to the
transaction price apportioned to the performance obligation. To acquire the control right of relevant
goods refers to to be able to dominate the use of the goods and obtain almost all the economic
benefits from them. Performance obligation refers to the commitment of the company in the contract
to transfer clearly distinguishable commodities to the customer. Transaction Price represents the
amount of consideration that the Company expects to be entitled to collect as a result of the transfer
of goods to the Customer, excluding monies received on behalf of third parties and monies that the
Company expects to refund to the Customer.
Whether the performance obligation is to be performed within a certain period of time or at a certain
point depends on the terms of the contract and relevant legal provisions. If the performance
obligation is performed within a certain period of time, the Company recognizes revenue according
to the progress of performance. Otherwise, the Company recognizes revenue at a point at which the
customer acquires control of the relevant assets.
If one of the following conditions is met, the performance obligation shall be performed within a
certain period of time; otherwise, the performance obligation shall be performed at a certain point: (1)
The customer obtains and consumes the economic benefits arising from the Company's performance
at the same time as the Company's performance; (2) The customer can control the goods under
construction during the company's performance; (3) The commodities produced by the Company
during the performance of the Contract have irreplaceable uses, and the Company has the right to
collect payment for the accumulated performance completed so far throughout the contract period.
For performance obligations performed within a certain period of time, the Company recognizes
revenue in accordance with the progress of performance during that period. If the performance
progress cannot be reasonably determined and the incurred costs are expected to be compensated,
the revenue shall be recognized according to the amount of incurred costs until the performance
progress can be reasonably determined. For performance obligations performed at a certain point,
revenue is recognized at the point when the customer acquires control of the relevant goods or
services. In determining whether the customer has acquired control of the goods, the Company
considers the following indications: (1) the Company has a current collection right in respect of the
goods, i.e. the customer has a current payment obligation in respect of the goods; (2) the Company
has transferred the legal title of the goods to the Customer, that is, the customer has the legal title of
the goods; (3) The Company has physically transferred the commodity to the customer, that is, the
customer has physically possessed the commodity; (4) The Company has transferred the major risks
and rewards in the ownership of the commodities to the Customer, that is, the customer has obtained
the major risks and rewards in the ownership of the commodities; (5) The customer has accepted the
goods; (6) Other signs indicating that the customer has acquired control of the goods.
Specific methods of revenue recognition
The Company mainly sells video conferencing products, integrated cabling products, intelligent
electrical products, communication basic products and other products. The above product sales
business of the company is a performance obligation performed at a certain point, and the product
revenue recognition shall meet the following conditions: The company has delivered the products to
the purchaser according to the contract and accepted them by the purchaser, and the amount of sales
revenue of the products has been determined, the payment for goods has been recovered or the
receipt of payment has been obtained, and the relevant economic benefits are likely to flow in, and
the costs related to the products can be measured reliably.
(XXV) Contract cost
The contract cost of the Company includes the incremental cost incurred to obtain the contract and
the contract performance cost. Incremental costs incurred to acquire a contract (" contract acquisition
costs ") are costs that would not have been incurred otherwise. If the cost is expected to be recovered,
the Company will recognize it as a contract acquisition cost as an asset.
The cost incurred by the Company to perform the contract, which does not fall within the scope of
accounting standards for enterprises such as inventory and meets the following conditions at the
same time, shall be recognized as an asset as the contract performance cost:
materials, manufacturing expenses (or similar expenses), costs expressly borne by the User and other
costs incurred solely as a result of the contract;
The Company will recognize the contract performance costs as assets, the amortization period of the
initial recognition does not exceed one year or a normal business cycle, in the balance sheet into the
"inventory" item; If the amortization period is more than one year or one normal operating cycle at
the time of initial recognition, "other non-current assets" will be included in the balance sheet.
The Company shall record the acquired costs of contracts recognized as assets into the "other current
assets" item in the balance sheet if the amortization period at the initial recognition does not exceed
one year or one normal operating cycle. If the amortization period is more than one year or one
normal operating cycle at the time of initial recognition, "other non-current assets" will be included
in the balance sheet.
The Company amortizes the assets recognized for contract acquisition cost and contract performance
cost (hereinafter referred to as "assets related to contract cost") on the same basis as the commodity
revenue recognized for the assets and records them into the current profit and loss. If the
amortization period of the asset formed by the incremental cost of acquiring the contract does not
exceed one year, it shall be included in the current profit and loss at the time of occurrence.
If the carrying value of the asset related to the contract cost is higher than the difference between the
following two items, the Company will calculate and withdraw the excess part of the impairment
reserve and recognize it as the asset impairment loss:
the asset;
If the difference between the foregoing two items is higher than the carrying value of the asset due to
the change of the factors of impairment in the previous period, it shall revert to the original provision
for asset impairment and be included in the current profit and loss, provided that the carrying value
of the asset after the reversal shall not exceed the carrying value of the asset on the date of reversal
assuming no provision for impairment.
(XXVI) Government grants
Government subsidy refers to the monetary assets or non-monetary assets that the Company obtains
free of charge from the government (but does not include the capital invested by the government as
the owner). If the government subsidy is a monetary asset, it shall be measured according to the
amount received or receivable. Where government subsidies are non-monetary assets, they shall be
measured at fair value; If the fair value cannot be obtained reliably, it shall be measured according to
the nominal amount.
Government subsidies related to daily activities shall be included in other income according to the
economic business essence. Government subsidies unrelated to daily activities shall be included in
non-operating income.
Government documents clearly stipulate that government subsidies for the purchase and construction
of long-term assets or the formation of long-term assets by other means shall be recognized as
government subsidies related to assets. If the government documents do not specify the object of
subsidy, and long-term assets can be formed, the part of government subsidy corresponding to the
value of the asset shall be regarded as the government subsidy related to the asset, and the rest shall
be regarded as the government subsidy related to the income. It is difficult to distinguish between
government subsidies as a whole as government subsidies related to benefits. Government subsidies
related to assets are recognized as deferred income. The amount recognized as deferred income shall
be recorded into current profits and losses in a reasonable and systematic manner during the useful
life of the relevant asset.
Government subsidies other than those related to assets shall be recognized as government subsidies
related to earnings. If the government subsidies related to earnings are used to compensate the
relevant expenses or losses of the enterprise in the subsequent period, they shall be recognized as
deferred earnings and recorded into the current profit and loss during the period when the relevant
expenses are recognized. If it is used to compensate the relevant expenses or losses already incurred
by the enterprise, it shall be directly recorded into the current profit and loss.
If the company obtains a policy preferential loan discount interest, and the finance allocates the
discount interest funds to the lending bank, and the lending bank provides the loan to the Company
at the policy preferential interest rate, the actual amount of the loan is taken as the recorded value of
the loan, and the relevant borrowing costs are calculated according to the loan principal and the
policy preferential interest rate; If the finance directly appropriates the discount interest funds to the
Company, the Company will offset the corresponding discount interest against the relevant
borrowing costs.
Government grants are recognized when the conditions attached to government grants are met and
can be received. The government subsidy measured according to the amount receivable shall be
confirmed at the end of the period when there is solid evidence that it can meet the relevant
conditions stipulated in the financial support policy and is expected to receive the financial support
funds. Government subsidies other than those measured according to the amount receivable shall be
recognized when the amount of subsidies is actually received.
(XXVII) Deferred income tax assets and liabilities
between the carrying amount and tax base of assets and liabilities (and the difference of the carrying
amount and tax base of items not recognized as assets and liabilities but with their tax base being
able to be determined according to tax laws) and in accordance with the tax rate applicable to the
period during which the assets are expected to be recovered or the liabilities are expected to be
settled.
most likely to obtain and which can be deducted from the deductible temporary difference. At the
balance sheet date, if there is any exact evidence that it is probable that future taxable income will be
available against which deductible temporary differences can be utilized, the deferred tax assets
unrecognized in prior periods are recognized.
subsidiaries and associates, unless the Company has control over the timing of the reversal of the
temporary differences and it is likely that the reversal will not occur in the foreseeable future. For
deductible temporary differences related to investments in subsidiaries and associates, deferred tax
assets are recognized when such temporary differences are likely to be reversed in the foreseeable
future and the amount of taxable income used to offset the deductible temporary differences is likely
to be obtained in the future.
(XXVIII) Leases
On the commencement date of the lease term, the Company recognizes the right to use assets and
lease liabilities for leases other than short-term leases and leases of low-value assets, and recognizes
depreciation expense and interest expense, respectively, during the lease term.
The Company uses the straight-line method for each period of the lease term to charge lease
payments for short-term leases and leases for low-value assets to current expenses.
（1）Right-of-use asset
The right-of-use asset is initially measured at cost, which includes: 1) the initial measurement
amount of the lease liability; 2) the lease payments made on or before the start date of the lease term,
if there is a lease incentive, deduct the amount of the lease incentive already enjoyed ; 3) Initial
direct costs incurred by the lessee; 4) The lessee is expected to incur costs 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 upon in the lease terms
The company depreciates right-of-use assets on a straight-line basis. If it can be reasonably
determined that the ownership of the leased asset will be obtained at the expiration of the lease term,
the company shall accrue depreciation over the remaining useful life of the leased asset. If it cannot
be reasonably determined that the ownership of the leased asset can be obtained when the lease term
expires, the company shall accrue depreciation within the shorter of the lease term and the remaining
useful life of the leased asset.
In accordance with the Accounting Standards for Enterprises “ CASBE 8 - Asset Impairment”, the
company determines whether the assets used for use have been impaired and carries out accounting
treatment.
（2）Lease liability
The lease liability is initially measured at the present value of the outstanding lease payments on the
commencement date of the lease term. The lease payment amount includes: 1) the fixed payment
amount (including the substantial fixed payment amount). If there is a lease incentive, the lease
incentive related amount shall be deducted; 2) variable lease payments depending on the index or
ratio; 3) the amount expected to be paid according to the security residual value provided by the
lessee; 4) the exercise price of the purchase option, the premise is that the lessee is reasonable to
determine the exercise of the option; 5) Payment for exercising the option to terminate the lease,
provided that the lease term reflects that the lessee will exercise the option to terminate the lease;
The Company uses the lease embedded interest rate as the discount rate; If it is impossible to
reasonably determine the interest rate embedded in the lease, the incremental borrowing rate of the
Company shall be used as the discount rate. The Company calculates the interest expense of the
lease liability in each period of the lease term at a fixed periodic interest rate and records it as a
financial expense. The cyclical rate refers to the discount rate or the revised discount rate adopted by
the Company.
Variable lease payments that are not included in the measurement of lease liabilities are recorded in
current profit and loss when they are actually incurred.
If the Company changes the evaluation result of the option to renew the lease, terminate the lease or
purchase the lease, it will re-measure the lease liability according to the present value calculated by
the changed lease payment amount and the revised discount rate, and adjust the book value of the
right asset accordingly. In the event of a change in the actual lease payment, the estimated payable
amount of the guarantee residual or the variable lease payment depending on the index or ratio, the
lease liability shall be re-measured according to the present value calculated by the changed lease
payment and the original discount rate, and the carrying value of the right asset shall be adjusted
accordingly.
（1）Operating lease accounting treatment
In each period of the lease term, the Company adopts the straight-line method to recognize the lease
receipts from the operating leases as rental income. The Company capitalizes the initial direct
expenses incurred in connection with the operating lease and stages them into current earnings
during the lease term on the same basis of recognition as rental income.
（2）Accounting treatment of finance lease
On the lease commencement date, the Company recognizes the difference between the sum of the
financial lease receivable, the unguaranteed residual value and its present value as unrealized
financing income, and recognizes it as lease income in each period in which the rent is received in
the future. The initial direct expenses incurred by the Company in connection with the leasing
transaction are included in the initial recorded value of the finance lease receivable.
(XXIX) Significant changes in accounting policies and accounting estimates
None.
None.
IV. Taxes
(I) Main taxes and tax rates
Taxes Tax bases Tax rates
The output tax shall be calculated on the basis of the sales of goods and
Value-added tax taxable service income calculated in accordance with the provisions of the 13%、6%、5%、
(VAT) tax law. After deducting the input tax allowed to be deducted in the current 3%
period, the balance shall be the VAT payable.
For housing property levied on the basis of price, housing property tax is
Housing property levied at the rate of 1.2% of the balance after deducting 30% of the cost;
tax for housing property levied on the basis of rent, housing property tax is
levied at the rate of 12% of rent revenue.
Urban
maintenance and Turnover tax payable 7%
construction tax
Education
Turnover tax payable 3%
surcharge
Local education
Turnover tax payable 2%
surcharge
Enterprise
Taxable income 15%、25%
income tax
Taxpayers Income tax rate
Nanjing Putian Telege Intelligent Building Co.,
Ltd
Nanjing Putian Datang Information Electronic Co.,
Ltd.
Taxpayers other than the above-mentioned 25%
(II) Tax preferential policies
December, 2024, valid for 3 years. From 2024 to 2026, the enterprise income tax shall be paid at the
reduced tax rate of 15%.
enterprise certificate in November, 2024, valid for 3 years. From 2024 to 2026, the enterprise
income tax shall be paid at the reduced tax rate of 15%.
software enterprises, and some of the software products produced by Nanjing South
Telecommunications Company Limited and Nanjing Putian Network Co., Ltd. are entitled to enjoy
the preferential tax policy of VAT refund upon collection in accordance with the provisions of Cai
Shui [2011] No.100.
V. Notes to items of consolidated financial statements
Items Closing balance Opening balance
Cash in bank 10,428,246.76 1,123,773.79
Deposit money with finance company 2,996,648.80 4,272,925.37
Other cash and bank balances 95,432,903.06 287,204,290.64
Total 108,857,798.62 292,600,989.80
Details of other cash and bank balances
Items Closing balance Opening balance
Deposit for L/G 2,996,648.80 4,272,925.37
Total 2,996,648.80 4,272,925.37
Note: Other cash and bank balances are restricted funds.
(1) Categories
Items Closing balance Opening balance
Bank acceptance 916,549.54 570,577.84
Trade acceptance 916,549.54 570,577.84
Less: Provision for bad debts 45,827.48 28,528.89
Total 870,722.06 542,048.95
（2）Notes receivable that have been endorsed or discounted at the end of the period and are not yet
due on the balance sheet date
The confirmation amount shall The confirmation amount
Items be terminated at the end of the has not been terminated at
period the end of the period
Trade acceptance 2,498,091.81 35,874,078.35
The acceptor of a bank acceptance bill is a commercial bank. Due to the high creditworthiness of
commercial banks, the possibility of non payment upon maturity of the bank acceptance bill is low.
Therefore, our company will terminate the recognition of bank acceptance bills that have been
endorsed or discounted. The drawer of commercial acceptance bills is usually a state-owned
enterprise or listed company with good commercial credit and low default risk. Therefore, our
company will terminate the recognition of endorsed commercial acceptance bills. If the bill is not
paid upon maturity, according to the provisions of the Bill Law, the company will still bear joint and
several liability to the holder.
(3) Provision for bad debts of notes receivable
Closing balance
Book balance Provision for bad debts
Categories
Provision Carrying amount
Amount % to total Amount proportion
(%)
Note receivable with bad debt
provision accrued on portfolio
Portfolio 1: trade acceptance bill 916,549.54 100.00 45,827.48 5.00 870,722.06
Total 916,549.54 100.00 45,827.48 5.00 870,722.06
Opening balance
Categories Book balance Provision for bad debts
Provision proportion Carrying amount
Amount % to total Amount
(%)
Note receivable with bad debt
provision accrued on portfolio
Portfolio 2: trade acceptance
bill
Total 570,577.84 100.00 28,528.89 5.00 542,048.95
Closing balance
Items
Book balance Provision for bad debts Provision proportion (%)
Trade acceptance 916,549.54 45,827.48 5.00
Total 916,549.54 45,827.48 ——
(Continued)
Opening balance
Items Provision for bad
Book balance Provision proportion (%)
debts
Trade acceptance 570,577.84 28,528.89 5.00
Total 570,577.84 28,528.89 ——
(3) Bad debt provisions for notes receivable accrual, recovered or reversed in the current period
Changes in the current period
Opening Closing
Items Write-
balance Accrual Recovery Others balance
off
Bad debt provisions 28,528.89 17,298.59 45,827.48
(1) Disclosure according to aging
Ages Closing balance Opening balance
Within 1 year 283,307,298.17 230,462,634.34
Among them: within 6 months 206,962,449.13 177,069,811.82
From July to December 76,344,849.04 53,392,822.52
Subtotals within 1 year 283,307,298.17 230,462,634.34
Over 5 years 171,716,472.18 171,103,837.44
Total 544,123,200.35 481,902,132.14
Less: Allowance for doubtful accounts 189,012,870.13 188,366,805.80
Total 355,110,330.22 293,535,326.34
(2) According to the bad debt calculation and withdrawal method classification disclosure
Closing balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
Receivables with provision made on an
individual basis
Receivables with provision made on a
collective basis
Among them: Combination 1: Aging
combination
Total 544,123,200.35 100.00 189,012,870.13 34.74
Opening balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
Receivables with provision made on an
individual basis
Receivables with provision made on a
collective basis
Opening balance
Book balance Provision for bad debts
Categories
Provision
Amount % to total Amount proportion
(%)
Among them: Combination 1: Aging
combination
Total 481,902,132.14 100.00 188,366,805.80 39.09
Provision for bad Provision
Debtors Book balance Reasons
debts proportion (%)
Unable to
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100%
recover
Unable to
Mr. Xu 17,591,683.74 17,591,683.74 100%
recover
Unable to
China Tower Corporation Ltd. 13,819,926.92 13,819,926.92 100%
recover
Unable to
Putian Information Technology Co. LTD 6,047,877.19 6,047,877.19 100%
recover
China Railway Signal&Communication Unable to
Shanghai Engineering Group Co., Ltd recover
Unable to
Other 15,419,803.33 15,419,803.33 100%
recover
Total 76,121,957.07 76,121,957.07 100%
① Aging combination
Closing balance Opening balance
Ages Provision for bad Provision Provision for bad Provision
Book balance Book balance
debts proportion (%) debts proportion (%)
Within 1
year
years
years
years
years
Over 5
years
Total 468,001,243.28 112,890,913.06 24.12 405,762,453.90 112,227,127.56 27.66
(3) Bad debt provision
Change in current period
Opening Closing
Categories Write- Other
balance Accrual Recovery balance
off changes
Receivables with
provision made on 76,139,678.24 17,721.17 76,121,957.07
an individual basis
Receivables with
provision made on a
Change in current period
Opening Closing
Categories Write- Other
balance Accrual Recovery balance
off changes
collective basis
Total 188,366,805.80 663,785.50 17,721.17 189,012,870.13
(4) Details of the top 5 debtors with largest balances
Proportion to the total balance of Provision for bad
Debtors Book balance
accounts receivable (%) debts
The 14th Research Institute of China
Electronics Technology Group Corporation
Dongpo Xi Laos Co., Ltd 19,708,086.54 3.62 19,708,086.54
Mr. Xu 17,591,683.74 3.23 17,591,683.74
China Tower Corporation Ltd. 13,819,926.92 2.54 13,819,926.92
Shenzhen Huawang Enterprise
Management Co., Ltd
Total 85,299,929.29 15.67 51,461,499.52
Items Closing balance Opening balance
Notes receivable (Bank acceptance) 12,285,886.75 34,520,299.04
(1) Age analysis
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 4,501,693.35 73.44 1,065,608.14 47.83
Over 3 years 1,284,175.49 20.95 491,170.71 22.05
Total 6,129,654.60 100.00 2,227,763.86 100.00
(2) Details of the top 5 debtors with largest balances
Proportion to the total
Debtors Closing balance balance of advances
paid (%)
Shenzhen Haiwei Hengtai Intelligent Technology Co., Ltd 1,386,287.86 22.62
Shenzhen Chuangxian Optoelectronics Co., Ltd 456,673.50 7.45
Dingjie Automation Technology Co., Ltd 343,131.00 5.60
Beijing Zhongke Xidian Technology Co., Ltd 245,000.00 4.00
Beijing Yunwang Shitong Technology Co., Ltd 242,100.00 3.95
Total 2,673,192.36 43.61
Items Closing balance Opening balance
Other receivables 9,468,151.55 6,859,962.77
Total 9,468,151.55 6,859,962.77
（1）Other receivables categorized by nature
Categories Closing balance Opening balance
Provisional payment receivable 42,925,614.59 41,004,731.72
Deposit 9,423,684.04 8,623,995.84
Travel allowance 103,250.59 75,593.51
Other 1,103,513.83 1,125,652.04
Total 53,556,063.05 50,829,973.11
Less: Allowance for doubtful accounts 44,087,911.50 43,970,010.34
Total 9,468,151.55 6,859,962.77
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 7,580,286.63 3,841,863.96
Over 5 years 40,914,836.40 40,918,974.04
Total 53,556,063.05 50,829,973.11
Less: Allowance for doubtful accounts 44,087,911.50 43,970,010.34
Total 9,468,151.55 6,859,962.77
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items Total
credit losses losses (credit not impaired) losses (credit impaired)
Opening balance 12,991,915.44 30,978,094.90 43,970,010.34
Accrual for the current
period
Other changes
Closing balance 13,109,816.60 30,978,094.90 44,087,911.50
（4）Bad debt provision
Change in current period
Opening Closing
Categories To withdraw or turn Cancel after
balance Accrual Other changes balance
back verification
Provision for
bad debts
（5）Details of the top 5 debtors with largest balances
Proportion to
the total
Nature of Closing balance of Provision for
Debtors Ages
receivables balance other bad debts
receivables
(%)
Beijing Likang Ordinary
Current
Information Equipment 28,912,122.71 Over 5 years 53.98 28,912,122.71
account
Co., Ltd
Nanjing Putian
Current 3-4 years 504,197.50,
Communication 1,784,619.72 3.33 1,784,619.72
account 4-5 years 404,315.31,
Technology Co., Ltd
Nanjing Putian
Current 1-2years 28206.8；2-
Communication Industry 805,545.63 1.50 40,277.28
account 3years 560281.58
Co., Ltd
Nanjing Construction
Enterprise Migrant
Other
Worker Wage Security 400,000.00 Over 5 years 0.75 400,000.00
deposits
Fund Management
Office
China United Network
Communications Co., Bid bond 390,000.00 Over 5 years 0.73 390,000.00
Ltd. Beijing Branch
Total 32,292,288.06 —— 60.30 32,292,288.06
(1) Details
Closing balance Opening balance
Items Provision for Carrying Provision for
Book balance Book balance Carrying amount
write-down amount write-down
Raw
material 17,448,964.42 10,482,980.51 6,965,983.91 17,620,673.90 10,482,980.51 7,137,693.39
s
Work in
process
Goods
on hand
Goods
dispatch 94,439,802.34 50,869,558.63 43,570,243.71 96,893,480.52 52,614,965.91 44,278,514.61
ed
Products
on
consign
ment for
Closing balance Opening balance
Items Provision for Carrying Provision for
Book balance Book balance Carrying amount
write-down amount write-down
sales
Total 194,620,190.24 113,177,917.15 81,442,273.09 202,208,178.49 115,071,988.19 87,136,190.30
(2) The increase or decrease of the inventory decline reserve and the impairment reserve of contract
performance cost
Increase amount in the Decrease amount in the
current period current period Closing
Items Opening balance
Reversal or balance
Accrual Others Others
write-off
Raw materials 10,482,980.51 10,482,980.51
Work in
process
Goods on
hand
Goods
dispatched
Products on
consignment 52,614,965.91 1,745,407.28 50,869,558.63
for sales
Total 115,071,988.19 1,894,071.04 113,177,917.15
The specific basis for determining the net realizable value and the reasons for turning back or selling
the inventory depreciation reserve in the current period.
Reasons for the reversal of Reasons for the provision for
Specific basis for determining net realizable
Item inventory depreciation provisions depreciation of inventory sold
value
in the current period in the current period
Net realizable value is determined by the During the current period,
The net realizable value of
estimated selling price of the relevant finished the inventory that was set
inventories for which provision was
Raw materials products less the estimated costs to be aside for inventory
made for inventory depreciation in
incurred to completion, estimated sales depreciation at the beginning
previous periods increased
expenses and relevant taxes of the period has been sold
The net realizable value of the inventory is The net realizable value of During the current period,
determined by the estimated selling price of inventories, which has been the inventory that was set
Goods
the inventory less estimated selling expenses provided for the decline of aside for inventory
dispatched
and related taxes in the normal course of inventories in previous periods, depreciation at the beginning
production and operation increased of the period has been sold
The net realizable value of the inventory is During the current period,
The net realizable value of
determined by the estimated selling price the inventory that was set
inventories for which provision was
Goods on hand minus the estimated selling expenses and aside for inventory
made for inventory depreciation in
relevant taxes in the normal course of depreciation at the beginning
previous periods increased
production and operation of the period has been sold
Items Closing balance Opening balance
Input tax to be deducted 1,496,981.62 1,085,488.28
Advance payment of income tax 141,091.78 141,091.78
Items Closing balance Opening balance
Total 1,638,073.40 1,226,580.06
Increase/Decrease
Investment Closing
Opening Adjustment in Cash Closing balance of
Investees income Changes
balance Investments Investments other dividend/Profit Provision for balance provision for
recognized in other Others
increased decreased comprehensive declared for impairment impairment
under equity equity
income distribution
method
I. Subsidiary 10,412,683.37 -111.44 10,412,571.93
Nanjing Puzhu
Optical Network 10,412,683.37 -111.44 10,412,571.93
Co., Ltd
The reason
Amount of designated as
Other
other measurement
comprehensi
Dividen The comprehens at fair value
Closing Opening The cumulative ve income is
Items d cumulativ
loss
ive income and its change
transferred to
balance balance income e gains transferred included in
retained
to retained other
earnings
earnings comprehensiv
e income
Hangzhou
Hongyan
Electric 321,038.00 321,038.00
Appliance
Co., Ltd
Nanjing
Yuhua
electroplating
plant
Beijing
Likangpu
Communicati 1,854,910.00
on Equipment
Co., Ltd.
Total 741,953.00 741,953.00 1,854,910.00
Note: The investment in Nanjing Yuhua Electroplating Factory, Hangzhou Honyar Electrical Co.,Ltd. and Beijing
Likong Communication Equipment Co., Ltd. are classified as other equity instrument investments, the Company
measured it at fair value through other comprehensive income.
(1) Investment real estate measured at cost
Items Buildings and structures Total
I.Original book value
(1) External purchase
(2) Transfer of fixed assets
(1) Disposal
(2) Other transfer out
II.Accumulated depreciation and amortization
(1) Accrual or amortization 363,830.67 363,830.67
(2) Transfer of fixed assets
Items Buildings and structures Total
(1) Disposal
(2) other transfer out
III.Provision for impairment
IV.Carrying amount
Categories Closing balance Opening balance
Fixed assets 83,501,296.13 85,757,024.11
(1) Fixed assets
Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
I. Original book value
balance
(1) Acquisition 129,158.73 284,840.98 524,690.27 938,689.98
(2) Transfer of
projects under
construction
(1) Disposal or
scrapping
(2) The scope of
consolidation is
reduced
II.Accumulated
depreciation
(1) Disposal or
scrapping
(1)
Disposal/Scrapping
（2）Transfer to
investment real estate
Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
III.Provision for
impairment
（1）Accrual
（1）
Disposal/Scrapping
（2）Others
IV. Carrying amount
Original book Accumulated Provision for Carrying
Items Remarks
value depreciation impairment amount
Machinery equipment 212,485.00 196,288.30 11,169.15 5,027.55
Electronic equipment 36,000.00 34,920.00 1,080.00
Other equipment 342,985.18 157,407.73 175,287.91 10,289.54
Total 591,470.18 388,616.03 186,457.06 16,397.09
Items Carrying amount
Buildings and structures 14,085,953.05
Items Carrying amount Reasons for unsettlement
Buildings and structures 2,579,459.95 In process
project Houses and buildings Total
Original book value
Opening balance 2,686,684.00 2,686,684.00
The amount increased in the current period
Among them: new leases
Decrease in the current period
Where: disposal
Closing balance 2,686,684.00 2,686,684.00
Accumulated depreciation
project Houses and buildings Total
Opening balance 238,890.96 238,890.96
The amount increased in the current period 130,304.16 130,304.16
Where: accrual 130,304.16 130,304.16
Decrease in the current period
Closing balance 369,195.12 369,195.12
Impairment provisions
book value
Closing book value 2,317,488.88 2,317,488.88
Opening book value 2,447,793.04 2,447,793.04
(1) Details
Items Land use right Software Total
I. Original book value
（1）Acquisition
（1）Disposal
(2)The scope of consolidation is
reduced
II.Accumulated depreciation
（1）Acquisition 167,437.56 64,887.65 232,325.21
（1）Disposal
III. Carrying amount
Items Opening balance Increase Amortization Other decrease Closing balance
Renovation and renovation
expenses
(1) Details of unrecognized deferred tax assets
Items Closing balance Opening balance
Deductible temporary difference 348,344,998.82 349,457,805.78
Deductible losses 158,978,385.63 160,136,771.28
Total 507,323,384.45 509,594,577.06
(2) Maturity years of deductible losses of unrecognized deferred tax assets
Maturity years Closing balance Opening balance Remarks
Year 2026 58,332,948.84 58,332,948.84
Year 2027 46,663,704.85 46,663,704.85
Year 2028 34,598,495.25 34,598,495.25
Year 2029 1,622,476.49 5,269,870.68
Year 2030 1,585,528.35 1,188,328.53
Year 2031 9,571,047.64 9,571,047.64
Year 2032 3,128,208.76 3,128,208.76
Year 2033 1,792,957.22 1,792,957.22
Year 2034 1,683,018.23
Total 158,978,385.63 160,545,561.77
Items Closing balance Opening balance
Long-term asset purchase 719,280.00
Closing balance Opening balance
Items
Book balance Book value Restricted type Restricted case Book balance Book value Restricted type Restricted case
Other cash
Involving litigation bank
and bank 2,996,648.80 2,996,648.80 Guarantee deposit 4,272,925.37 4,272,925.37 Involving litigation bank freeze Guarantee deposit
freeze
balances
Fixed Mortgage loans on real Mortgage loans on real estate
assets estate and land and land
Intangible Mortgage loans on real Mortgage loans on real estate
assets estate and land and land
Total 89,052,842.21 60,473,449.96 90,329,118.78 63,163,747.87
Other notes: In addition to the above-mentioned assets whose ownership or right to use are restricted, the Company pledged 33.17 million yuan corresponding to the 96.99% equity
of its subsidiary, Nanjing Southern Telecom Co., Ltd., to China Potevio Information Industry Co., Ltd. for the purpose of entrusting the finance company to pay the loan to the Company;
The parent company, CLP Guorui Group Co., Ltd., provided a guarantee for the Company's loan to China Electronics Technology Finance Co., Ltd., and the Company pledged the
corresponding capital contribution of RMB 8 million to the parent company for the 40% equity interest of its subsidiary, Nanjing Putian Tianji Building Intelligence Co., Ltd.; The
Company pledged 4 million yuan of capital contribution corresponding to the 40% equity of its subsidiary, Nanjing Putian Datang Information Electronics Co., Ltd., to CETC Financial
Leasing Co., Ltd. for the Company's financial leasing business with CETC Financial Leasing Co., Ltd., and the transfer of the equity of the above-mentioned subsidiaries was restricted
before the release of the pledge.
(1) Details
Borrowing conditions Closing balance Opening balance
Mortgage borrowing 32,088,001.75 49,299,759.96
Borrowing on credit 51,750,000.00 78,828,227.79
Total 83,838,001.75 128,127,987.75
Note: 1. Our company obtained a loan of 11.088 million yuan by mortgaging the property located at
No. 8 Fenghui Avenue, Yuhuatai District, Nanjing City and the land use rights within the occupied
area; 2. Subsidiary Nanjing Putian Tianji Building Intelligence Co., Ltd. obtained a loan of 10
million yuan by mortgaging three properties and land use rights located at No. 18 Songgang Street,
Moling Street, Jiangning District; 3. Subsidiary Nanjing Putian Datang Information Electronics Co.,
Ltd. obtained a loan of 11 million yuan by mortgaging the property located at No. 8 Fenghui Avenue,
Yuhuatai District, Nanjing and the land use rights within the occupied area.
Items Closing balance Opening balance
Banker's acceptance 2,799,590.00 8,313,165.25
Commercial Acceptance Bills 129,688.53 1,809,060.50
Total 2,929,278.53 10,122,225.75
(1) Classified by account age
Items Closing balance Opening balance
Within 1 year (including 1 year) 185,596,516.49 268,987,560.21
More than 1 year 100,232,300.70 80,354,619.00
Total 285,828,817.19 349,342,179.21
(2) Significant accounts payable with age over one year
Name of creditor Closing balance Reasons for unsettlement
Material payment has not yet been settled by
progress.
Items Closing balance Opening balance
Items Closing balance Opening balance
Within 1 year (including 1 year) 1,582.00 236,005.32
Items Closing balance Opening balance
Payment for goods 12,257,950.56 24,794,919.13
(1) Details
Opening Closing
Items Increase Decrease
balance balance
Short-term employee benefits 17,066,962.98 49,962,919.12 54,144,658.95 12,885,223.15
Post-employment benefits - defined
contribution plan
Dismissal welfare 1,390,384.00 1,390,384.00
Total 17,066,962.98 59,701,363.26 63,883,103.09 12,885,223.15
(2) Details of short-term employee benefits
Opening Closing
Items Increase Decrease
balance balance
Wage, bonus, allowance and subsidy 3,625,349.25 39,263,621.00 42,888,970.13 0.12
Employee welfare fund 324,752.06 324,752.06
Social insurance premium 3,589,123.65 3,589,123.65
Including: Medicare premium 3,112,959.52 3,112,959.52
Maternity premium 220,789.00 220,789.00
Occupational injuries premium 255,375.13 255,375.13
Others
Housing provident fund 3,216,865.05 3,908,307.96 3,908,307.96 3,216,865.05
Trade union fund and employee
education fund
Others 14,996.53 2,438,077.15 2,438,077.15 14,996.53
Total 17,066,962.98 49,962,919.12 54,144,658.95 12,885,223.15
(3) Details of defined contribution plan
Opening
Items Increase Decrease Closing balance
balance
Basic endowment insurance premium 8,014,250.93 8,014,250.93
Unemployment insurance premium 333,809.21 333,809.21
Total 8,348,060.14 8,348,060.14
Items Closing balance Opening balance
Items Closing balance Opening balance
VAT 937,322.18 5,469,015.04
Enterprise income tax 1,426,860.42
Property tax 128,452.98 351,313.55
Land use tax 40,752.81 80,701.94
Personal income tax 71,323.06 189,374.87
Urban Maintenance Construction Tax 112,377.41 493,348.10
Educational fee surcharge 48,404.24 210,880.61
Local Education Surcharge 29,722.85 140,868.41
Other tax 1,300.48 97,329.58
Total 1,369,656.01 8,459,692.52
Items Closing balance Opening balance
Dividend payable 10,846,600.00
Other payables 37,275,978.64 41,918,074.35
Total 48,122,578.64 41,918,074.35
(1) Dividend payable
Items Closing balance Opening balance
Dividend of ordinary shares 10,846,600.00
(2) Other payables
Items Closing balance Opening balance
Temporary receipts payable 29,366,088.13 31,279,667.14
Unsettled installation cost 91,836.98 87,519.38
Deposits 1,766,634.28 3,467,780.26
Operating expenses 3,947,191.42 6,279,652.71
Others 2,104,227.83 803,454.86
Total 37,275,978.64 41,918,074.35
Reasons for non-repayment or non-
Name of the unit Closing balance
carry-forward
China Potevio Information Industry Group The settlement conditions have not
Co., Ltd. been met
The settlement conditions have not
Putian High-tech Industry Co., LTD 1,814,696.94
been met
Total 11,406,309.44 ——
Items Closing balance Opening balance
Long-term borrowings maturing within
one year
Lease liabilities that are due within one
year
Total 87,330,731.69 88,060,659.43
Items Closing balance Opening balance
VAT collected in advance 1,410,876.56 3,125,042.32
Interest rate
Items Closing balance Opening balance
range
Pledged borrowings 86,800,000.00 86,907,415.00 4.05%
Guaranteed borrowing 70,000,000.00 70,081,048.61 3.75%-3.80%
subtotal 156,800,000.00 156,988,463.61
Less: Long-term borrowings due within
one year
Total 70,000,000.00 70,000,000.00
Items Closing balance Opening balance
Lease payments 1,426,437.90 1,995,403.38
Less: Financing charges are not
recognized
Less: Lease liabilities due within one
year
Total 851,106.40 840,373.96
Movements
accumulation
Opening Issue fund
Items Bouns Closing balance
balance of new Reserve Others Subtotal
shares
shares transferred to
shares
Total shares 215,000,000.00 215,000,000.00
Items Opening balance Increase Decrease Closing balance
Share premium 137,786,640.63 137,786,640.63
Items Opening balance Increase Decrease Closing balance
Other capital reserve 60,169,226.95 3,104,974.83 63,274,201.78
Total 197,955,867.58 3,104,974.83 201,060,842.41
Note: The increase in other capital reserves is due to the reversal of previous years' provision for housing subsidies
that do not need to be paid by subsidiaries Nanjing Southern Telecom Co., Ltd. and Nanjing Putian Tianji Building
Intelligence Co., Ltd.
Items Opening balance Increase Decrease Closing balance
Repurchase of shares 2,995,076.96 2,995,076.96
Total 2,995,076.96 2,995,076.96
Current period cumulative
Less: Other
Less: Other
comprehensive
Current period comprehensive Closing
Items Opening balance income recorded in Attributable to
cumulative income in the Less: Attributable to balance
the previous period non-controlling
before income previous period is Income tax parent company
is transferred to shareholders
tax transferred to
retained income in
profit and loss
the current period
Other comprehensive income reclassified
-1,854,910.00 -1,854,910.00
into profit and loss
Including: The amount of financial assets
reclassified into other comprehensive -1,854,910.00 -1,854,910.00
income
Items Opening balance Increase Decrease Closing balance
Statutory surplus reserve 589,559.77 589,559.77
Preceding period
Items Current period cumulative
comparative
Balance before adjustment at the end of preceding period -394,344,427.37 -405,721,306.51
Opening balance after adjustment -394,344,427.37 -405,721,306.51
Add: Net profit attributable to owners of the parent
-7,153,201.29 11,376,879.14
company
Closing balance -401,497,628.66 -394,344,427.37
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 300,596,752.68 336,079,406.23 259,256,021.52
II.Other operations 5,717,365.97 1,774,817.63 12,906,834.69 5,182,727.21
Total 306,314,118.65 242,780,834.63 348,986,240.92 264,438,748.73
（2） Current operating income is classified according to the time of revenue recognition
Revenue recognition time Income from main business Other business income
Confirm at a certain point 300,596,752.68 5,717,365.97
Information related to the transaction price allocated to the remaining performance obligations:
The revenue amount corresponding to the performance obligations that have been signed but not yet
performed or not yet fully performed at the end of this reporting period is 130.67 million yuan.
Among them, 128.63 million yuan is expected to be recognized as revenue in 2025, and 2.04 million
yuan is expected to be recognized as revenue in 2026.
Preceding period
Items Current period cumulative
comparative
Housing property tax 323,840.89 891,842.13
Land use tax 123,704.75 227,553.24
Urban Maintenance Construction Tax 377,146.95 384,786.01
Educational fee surcharge 243,311.66 229,660.02
stamp duty 121,565.11 176,959.51
Preceding period
Items Current period cumulative
comparative
Other tax 165,127.51 157,723.75
Total 1,380,779.48 2,113,711.82
Preceding period
Items Current period cumulative
comparative
Employee benefits 19,815,398.16 25,421,151.68
Transportation and transportation damage 82,002.90
Business entertainment 2,457,168.65 4,991,275.17
Travel expense 1,416,503.31 2,055,425.91
Administrative expenses 391,873.51 714,051.79
Sales service fee 13,446.17 2,636,417.86
Business publicity expenses 127,443.12 138,486.21
Conference expense 317,045.28 433,988.25
Equipment maintenance fee
Others 2,408,453.92 3,760,041.97
Total 26,947,332.12 40,232,841.74
Preceding period
Items Current period cumulative
comparative
Employee benefits 15,096,826.52 22,289,020.01
Consulting and intermediary fees 1,314,105.11 2,253,277.69
Depreciation and amortization 2,266,412.64 2,333,672.81
Administrative expenses 529,574.61 1,417,075.15
Rental fee 2,443.00 667,598.28
Travel expense 118,923.37 464,118.77
Business entertainment 57,576.79 231,149.93
Others 764,651.93 861,770.95
Total 20,150,513.97 30,517,683.59
Preceding period
Items Current period cumulative
comparative
Employee benefits 11,992,151.17 14,357,492.47
Intermediate test fee 621,605.96 822,542.72
Travel expense 468,715.85 131,950.57
Material requisition 331,382.56 549,896.81
Depreciation and amortization 440,846.79 472,560.96
Preceding period
Items Current period cumulative
comparative
Others 744,649.87 1,512,775.03
Total 14,599,352.20 17,847,218.56
Preceding period
Items Current period cumulative
comparative
Interest expenditures 4,242,807.68 4,822,731.40
Less: Interest income 278,138.20 549,603.32
Exchange loss 1,161.88
Less: gain on foreign exchange
Financial institution fees 65,107.78 29,388.96
Others 651.60
Total 4,030,939.14 4,303,168.64
Related to
Current Preceding
Items
assets/Related to
period cumulative period comparative
earnings
Provincial Engineering Technology Research Center
award, Provincial Enterprise Technology Center
award, Jiangsu Province special small and medium-
sized enterprise award
VAT plus deduction 642,714.50 875,867.67 Income correlation
Software tax refund 360,806.90 266,839.35 Income correlation
Received from the Finance Bureau of Jiangning
District, Nanjing City (2024 Jiangning District
Industrial and Information Technology Development
Special Fund)
Nanjing Qinhuai District People's Government 60,000.00 Income correlation
Budgetary revenue to be reported 35,160.22 34,957.20 Income correlation
Personal income tax rebate 12,226.17 9,574.65 Income correlation
Receive subsidies from the management committee of
Nanjing Jiangning Economic and Technological
Development Zone (intelligent transformation,
specialization and special new) awards
Employee training subsidy 1,500.00 Income correlation
Total 1,364,907.79 2,249,238.87
Preceding period
Items Current period cumulative
comparative
Income from long-term equity investments accounted
-111.44 -66.50
for by the equity method
Others 142,610.75 1,025,916.02
Total 142,499.31 1,025,849.52
Preceding period
Items Current period cumulative
comparative
Bad debt loss of notes receivable -17,298.59 641,516.36
Bad debt loss of accounts receivable -646,064.33 908,087.57
Bad debt loss of other receivables -117,901.16 417,255.85
Total -781,264.08 1,966,859.78
Preceding period
Items Current period cumulative
comparative
Inventory write-down loss -302,366.42
Preceding period
Items Current period cumulative
comparative
Gain on disposal of fixed assets -16,680.80 -468.86
Preceding Amount included
Current period
Items period in non-recurring
cumulative
comparative profit or loss
Unpaid payables
Penalty income 51,782.00 49,576.26 51,782.00
Others 184,177.49 184,177.49
Total 235,959.49 235,959.49
Preceding Amount included
Current period
Items period in non-recurring
cumulative
comparative profit or loss
Loss on damage and retirement of non-current assets
Preceding Amount included
Current period
Items period in non-recurring
cumulative
comparative profit or loss
Penalty expenditure 5,455.58 25,000.00 5,455.58
Late fees paid 17.26 17.26
Others 195,425.86 195,425.86
Total 200,898.70 200,898.70
(1) Details
Preceding period
Items Current period cumulative
comparative
Current income tax expense calculated in accordance
with the tax law and relevant provisions
Others 381,254.77 436,741.79
Total 924,211.67 1,370,104.91
(2) Accounting profit and income tax expense adjustment process
Items Amount
Profit before tax -2,831,109.88
Income tax expenses based on tax rate applicable to the parent company -707,777.47
Effect of different tax rate applicable to subsidiaries 1,914,814.24
Effect of prior income tax reconciliation 381,153.52
The effect of non-taxable income 1,034,793.56
The impact of deductible temporary differences or deductible losses on deferred income
tax assets was not recognized in this period
The Impact of additional deduction for Research and development Expenses (Negative
-2,095,972.00
figures presented
Income tax expense 924,211.67
Please refer to Note 5 (34) for details.
(1) Other cash receipts related to operating activities
Current period Preceding period
Items
cumulative comparative
Government grants 326,959.74 1,106,531.85
Interest income 278,138.20 549,603.32
Incomings and outgoings 14,507,944.75 23,790,106.78
Total 15,113,042.69 25,446,241.95
(2) Other cash payments related to operating activities
Current period Preceding period
Items
cumulative comparative
Current period Preceding period
Items
cumulative comparative
Out-of-pocket expenses 20,932,890.53 21,811,489.52
Incomings and outgoings 14,060,296.04 28,091,554.23
Total 34,993,186.57 49,903,043.75
(3) Cash paid related to other investing activities
Item Year ended 30/6/2025 Year ended 31/12/2024
Other 568,965.48 1,601,401.52
(4) Other cash payments related to financing activities
Current increase Current decrease
Opening
Items Cash movement Non-cash Cash movement Non-cash Ending balance
balance
movement movement
Short-term
borrowings
long-term
loan
Lease
liability
Non-
current
liability 88,060,659.43 188,463.61 541,464.13 87,330,731.69
due within
one year
Total 287,029,021.14 73,138,001.75 4,780,810.91 122,386,529.83 541,464.13 242,019,839.84
(1) Supplement information to the cash flow statement
Current period Preceding period
Items
cumulative comparative
I. Reconciliation of net profit to cash flow from operating
activities:
Net profit -3,755,321.55 -5,356,910.72
Add: Provision for assets impairment loss 302,366.42
Provision for credit impairment loss 2,717,311.50 -1,966,859.78
Depreciation of fixed assets, depletion of oil and gas
assets, depreciation of productive biological assets, and 3,174,853.64 4,135,616.24
depreciation of investment real estate
Depreciation of right-of-use assets 130,304.16 108,586.80
Amortization of intangible assets 177,923.87 408,044.56
Amortization of long-term prepayments 410,661.77 488,283.61
Loss on disposal of fixed assets, intangible assets and
other long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains)
Gains from derecognition of financial assets at amortized
cost
Losses on changes in fair value (Less: gains)
Current period Preceding period
Items
cumulative comparative
Financial expenses (Less: gains) 4,242,807.72 4,822,731.40
Investment losses (Less: gains) -142,499.31 -1,025,849.52
Decrease of deferred tax assets (Less: increase)
Increase of deferred tax liabilities (Less: decrease)
Decrease of inventories (Less: increase) 6,225,211.19 -5,052,069.50
Decrease of operating receivables (Less: increase) -72,868,785.57 -98,020,947.40
Increase of operating payables (Less: decrease) -72,594,733.76 -21,063,471.88
Others -1,966,859.78
Net cash flows from operating activities -132,265,585.54 -122,220,010.91
II. Significant investing and financing activities not related to
cash receipts and payments:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets leased in under finance leases
III. Net changes in cash and cash equivalents:
Cash at the end of the period 105,861,149.82 68,110,588.38
Less: Cash at the beginning of the period 288,328,064.43 164,177,680.11
Add: Cash equivalents at the end of the period
Less: Cash equivalents at the beginning of the period
Net increase of cash and cash equivalents -182,466,914.61 -96,067,091.73
(2) Cash and cash equivalents
Preceding period
Items Current period cumulative
comparative
I. Cash 105,861,149.82 288,328,064.43
Including: Cash on hand
Cash in bank on demand for payment 105,861,149.82 288,328,064.43
Cash equivalents
Cash and cash equivalents at the end of the period 105,861,149.82 288,328,064.43
VI.R&D expenditure
（一）Listed by nature of expenses
Preceding period
Items Current period cumulative
comparative
Employee Compensation 11,992,151.17 14,357,492.47
Travel expenses 468,715.85 131,950.57
DEPRECIATION AND
AMORTIZATION
Material requisition 331,382.56 549,896.81
interlocutory costs of experiments 621,605.96 822,542.72
other 744,649.87 1,512,775.03
Total 14,599,352.20 17,847,218.56
Among them: expensed research and
development expenses
VII. Changes in the consolidation scope
NONE.
VIII. Interest in other entities
(I) Interest in subsidiaries
（1）Details
Main Holding proportion (%)
Place of Business Acquisition
Subsidiaries operating
registration nature Direct Indirect Method
place
Nanjing South
Telecommunications Nanjing City Nanjing City Manufacture 96.99% 3.01% Set up
Company Limited
Nanjing Putian
Tianji Building Nanjing City Nanjing City Manufacture 45.77% Set up
Intelligence Co., Ltd
Merger of
Nanjing Putian enterprises
Datang Information Nanjing City Nanjing City Manufacture 40.00% under
Electronic Co., Ltd. different
control
（2）Notes
Remarks on inconsistency between holding proportion owned and voting rights proportion owned in
subsidiaries
a. The Company holds 45.767% of voting rights in Nanjing Putian Telege Intelligent Building Ltd.,
the other voting rights are decentralized. The Company has over half member of the Board of
Directors, and it not only controls this company but also has a privileged variable return by taking
part in Nanjing Putian Telege Intelligent Building Ltd’s related activity. The Company has the
ability to impact the amount of return and control over Nanjing Putian Telege Intelligent Building
Ltd.
b. The company holds Nanjing Putian Datang Information Electronics Co., LTD. 40% equity, the
company in Nanjing Putian Datang information electronics Co., LTD. As the number of board
members more than half of the company's board of directors, has the power of Nanjing Putian
Datang information Electronics Co., LTD., Be able to enjoy variable returns by participating in
relevant activities of Nanjing Putian Datang Information Electronics Co., LTD., and have the ability
to influence the amount of returns by using the power of Nanjing Putian Datang Information
Electronics Co., LTD., and be able to control Nanjing Putian Datang Information Electronics Co.,
LTD.
Holding proportion Non-controlling Dividend declared to Closing balance of
Subsidiaries of non-controlling shareholders’ profit non-controlling non-controlling
shareholders or loss shareholders interest
Nanjing Putian
Telege Intelligent 54.23% 3,125,614.20 10,846,600.00 54,179,504.48
Building Ltd.
Closing balance
Subsidiaries Non-
Non-current Current Total
Current assets Total assets current
assets liabilities liabilities
liabilities
Nanjing Putian
Telege
Intelligent
Building Ltd.
(continued)
Opening balance
Subsidiaries Non-
Non-current Current Total
Current assets Total assets current
assets liabilities liabilities
liabilities
Nanjing Putian
Telege
Intelligent
Building Ltd.
Current period cumulative
Subsidiaries Total
Operating Cash inflow from
Net profit comprehensive
revenue operating activities
income
Nanjing Putian Telege Intelligent
Building Ltd.
Previous period occurrence amount
Subsidiaries Total
Operating Cash inflow from
Net profit comprehensive
revenue operating activities
income
Nanjing Putian Telege Intelligent
Building Ltd.
(II) Interest in joint venture or associates
Closing
Opening balance/Preceding
Items balance/Current period
period comparative
cumulative
Joint ventures
Total carrying amount of investments 10,412,571.93 10,412,622.64
Proportionate shares in the following items:
Net profit -111.44 -133.01
Total comprehensive income -111.44 -133.01
VIV. Government subsidy
(一) Government grants recognised in profit or loss for the current period
Preceding period
Items Current period cumulative
comparative
Provincial Engineering Technology Research Center Award,
Provincial Enterprise Technology Center Award, Jiangsu
Province Specialized, Refined, Unique and New Small and
Medium sized Enterprise Award
Value added tax additional deduction 642,714.50 875,867.67
Special Fund for Industrial and Information Technology
Development in Jiangning District in 2024
Software tax refund 360,806.90 266,839.35
Qinhuai District People's Government of Nanjing City 60,000.00
Pending report of budgeted income 34,957.20
Personal income tax refund 9,574.65
Subsidies and rewards from the Management Committee of
Nanjing Jiangning Economic and Technological Development 2,000.00
Zone
Employee training subsidy 1,500.00
Total 1,317,521.40 2,249,238.87
X. Risks related to financial instruments
The Company aims to seek the appropriate balance between the risks and benefits from its use of
financial instruments and to mitigate the adverse effects that the risks of financial instruments have
on the Company’s financial performance. Based on such objectives, the Company’s risk
management policies are established to identify and analyze the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits.
The Company has exposure to the following risks from its use of financial instruments, which
mainly include: credit risk, liquidity risk, and market risk. Management has deliberated and
approved policies concerning such risks, and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other
party by failing to discharge an obligation.
(1) Evaluation method of credit risk
At each reporting date, the Company assesses whether the credit risk on a financial instrument has
increased significantly since initial recognition. When assessing whether the credit risk has increased
significantly since initial recognition, the Company takes into account reasonable and supportable
information, which is available without undue cost or effort, including qualitative and quantitative
analysis based on historical data, external credit risk rating, and forward-looking information. The
Company determines the changes in default risk of financial instruments during the estimated
lifetime through comparison of the default risk at the balance sheet date and the initial recognition
date, on an individual basis or a collective basis.
The Company considers the credit risk on a financial instrument has increased significantly when
one or more of the following qualitative and quantitative standards are met:
probability of default in the remaining lifetime has risen by more than a certain percentage compared
with the initial recognition;
financial position, present or expected changes in technology, market, economy or legal environment
that will have significant adverse impact on the debtor’s repayment ability;
(2) Definition of default and credit-impaired asset
The Company defines a financial asset as in default when the financial instrument meets one or more
of the following criteria, which are consistent with the definition of credit impairment incurred:
difficulty, having granted to the debtor a concession(s) that the creditor would not otherwise
consider.
The key factors in the measurement of expected credit loss include the probability of default, loss
rate of default, and exposure to default risk.
the notes to this financial statement for accounts receivable, accounts receivable financing, other
receivables, and inventory.
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In
order to control such risks, the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions
with relatively high credit levels, hence, its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers who uses credit settlement on a
regular/continuous basis. The Company selects credible and well-reputed customers based on credit
assessment result, and conducts ongoing monitoring on receivables, to avoid significant risks in bad
debts.
As the Company's accounts receivable risk points are distributed across multiple partners and
multiple customers, 15.68% of the Company's accounts receivable as of June 30, 2025 (December
have significant credit concentration risk.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each
financial asset on the balance sheet.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations
associated with cash or other financial assets settlement, which is possibly attributable to failure in
selling financial assets at fair value on a timely basis, or failure in collecting liabilities from
counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company utilized financing tools such as notes settlement, bank
borrowings, etc. and adopts long and short financing methods to optimizing financing structures, and
finally maintains a balance between financing sustainability and flexibility. The Company has
obtained credit limit from several commercial Nanjing Putian Telecommunications Co., Ltd. 2021
Annual Report 187 banks to meet working capital requirements and expenditures.
Financial instruments classified based on remaining time period till maturity
Closing balance
Items Contract amount 1-3 Over 3
Carrying amount Within 1 year
not yet discounted years years
Short-term borrowings 83,838,001.75 83,838,001.75 83,838,001.75
Notes payable
Accounts payable 285,828,817.19 285,828,817.19 285,828,817.19
Other payable 48,122,578.64 48,122,578.64 48,122,578.64
Non-current liabilities due
within one year
Subtotal 505,120,129.27 505,120,129.27 505,120,129.27
(Continued)
Opening balance
Items Contract amount Over 3
Carrying amount Within 1 year 1-3 years
not yet discounted years
Short-term borrowings 128,127,987.75 128,127,987.75 128,127,987.75
Notes payable
Accounts payable 349,342,179.21 349,342,179.21 349,342,179.21
Other payable 41,918,074.35 41,918,074.35 41,918,074.35
Non-current liabilities due
within one year
Subtotal 617,571,126.49 617,571,126.49 617,571,126.49
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value of financial
instruments or future cash flows due to changes in market price.
Interest risk is the risk that an enterprise may encounter fluctuation in fair value of financial
instruments or future cash flows due to changes in market interest. The Company’s fair value interest
risks arise from fixed-rate financial instruments, while the cash flow interest risks arise from floating
interest financial instruments. The Company determines the proportion of fixed-rate financial
instruments and floating interest rate financial instruments based on the market environment, and
maintains a proper financial instruments portfolio through regular review and monitoring. The
Company’s interest risk relates mainly to bank borrowings with floating interest rate
Foreign exchange risk refers to the risk that the fair value or future cash flow of a financial
instrument may fluctuate due to changes in foreign exchange rates. The Company operates in
mainland China and its main activities are denominated in renminbi, so the Company's exposure to
foreign exchange movements is not material. The Company's foreign currency monetary assets and
liabilities at the end of the period are detailed in the relevant notes to the financial statements.
XI. Fair value
(I) Details of fair value of assets and liabilities at fair value at the balance sheet date
Level 1 fair value Level 2 fair value Level 3 fair value Closing
Items
measurement measurement measurement balance
I. Recurring fair value
measurement
（一）Other equity instrument
investments
Total assets at recurring fair
value measurement
二、Non-continuous fair value
measurement
（一）Financing of receivables 12,285,886.75 12,285,886.75
Total assets that are not
consistently measured at fair 12,285,886.75 12,285,886.75
value
(II) Valuation technique(s) and key input(s) for level 3 fair value at recurring and non-recurring fair
measurement
Hangzhou Honyar Electrical Co.,Ltd., due to no changes of operating environment and conditions
and financial conditions of the invested enterprises, the Company measured at investment cost.
Co., Ltd., due to deterioration of operating environment and conditions and financial conditions of
the invested enterprises, the Company measured at zero value.
XII. Related party relationships and transactions
(I) Parent company
Voting right
Registered Holding
proportion
Parent Business proportion over
Place of registration capital（Ten over the
company nature the Company
thousand yuan） Company
(%)
(%)
China Electric No.359 Jiangdong Middle Electronic
Power Rui Group Road, Jianye District, equipment 1,000,000,000.00 53.49% 53.49%
Co., LTD Nanjing manufacturing
The ultimate control party is China Electronics Technology Group Co., LTD.
(II) Status of the Company's subsidiaries
See Note "VIII. Interests in Other Entities" for details.
(III) Joint ventures and associates of the Company
For the important joint ventures or associates of the enterprise, see Note "VIII. Interests in Other
Entities", other joint ventures or associates that have related party transactions with the Company in
the current period, or have a balance of related party transactions with the Company in the previous
period.
Joint ventures or associates Relationships with the Company
SEI-Nanjing Putian Optical Network Co., Ltd. Joint ventures
(IV) Other related parties of the Company
Related parties Relationships with the Company
Nanjing Putian Communication Technology Co., LTD Under the control of the ultimate controller
Hangzhou Hikvision Technology Co., LTD Under the control of the ultimate controller
Nanjing Putian Hongyan Electrical Technology Co., LTD Under the control of the ultimate controller
Related parties Relationships with the Company
Under the control of the ultimate controller
Corporation
Putian High-tech Industry Co., LTD Under the control of the ultimate controller
Nanjing Les Information Technology Co., LTD Under the control of the ultimate controller
Under the control of the ultimate controller
Corporation
Research Institute 28 of China Electronics Technology Group
Under the control of the ultimate controller
Corporation
Nanjing Guorui Defense Systems Co., LTD Under the control of the ultimate controller
Nanjing Guorui Xinwei Software Co., LTD Under the control of the ultimate controller
Nanjing Rail Transit System Engineering Co., LTD Under the control of the ultimate controller
Tianbo Information Technology Co., LTD Under the control of the ultimate controller
Nanjing Lop Co., LTD Under the control of the ultimate controller
China Electronics Kepu Tian Technology Co., LTD Under the control of the ultimate controller
Hebei Far East Communication System Engineering Co., LTD Under the control of the ultimate controller
Cetc Taili Communication Technology Co., LTD Under the control of the ultimate controller
Taiji Computer Corporation Limited Under the control of the ultimate controller
Putian Rail Transit Technology (Shanghai) Co., LTD Under the control of the ultimate controller
China Electronics Guorui Group Co., LTD Under the control of the ultimate controller
Nanjing Lop Technology Co., LTD Under the control of the ultimate controller
Nanjing Meichen Microelectronics Co., LTD Under the control of the ultimate controller
Guorui Technology Corporation Under the control of the ultimate controller
Eastern Communications Corporation Under the control of the ultimate controller
Liyang 28th Institute System Equipment Co., LTD Under the control of the ultimate controller
Dianke Cloud (Beijing) Technology Co., LTD Under the control of the ultimate controller
Sichuang Electronics Co., LTD Under the control of the ultimate controller
Beijing Aotewei Technology Co., LTD Under the control of the ultimate controller
Hangzhou Hongyan Electric Power Co., LTD Under the control of the ultimate controller
China Electric Rice Information System Co., LTD Under the control of the ultimate controller
China Potevio Information Industry Corporation Under the control of the ultimate controller
China Electronics Finance Co., LTD Under the control of the ultimate controller
Shanghai Putian Post & Telecommunication Technology Co.,
Under the control of the ultimate controller
LTD
Putian Information Technology Co., LTD Under the control of the ultimate controller
Putian Communications LLC Under the control of the ultimate controller
China Electronics Technology (Nanjing) Electronic Information
Under the control of the ultimate controller
Development Co., LTD
Hangzhou Hikvision Digital Technology Co., LTD. Nanjing
Under the control of the ultimate controller
Branch
China Far East International Tendering Corporation Under the control of the ultimate controller
Beijing Likan General Communication Equipment Co., LTD An affiliate of the company
Related parties Relationships with the Company
Nanjing Putian Information Technology Co., LTD Under the control of the ultimate controller
Nanjing Nanman Electric Co., LTD Under the control of the ultimate controller
Anhui Sichuang Electronics Co., LTD Under the control of the ultimate controller
Cetc Metrology, Testing and Certification (Beijing) Co., LTD Under the control of the ultimate controller
(V) Related party transactions
Current period Preceding period
Related parties Content of transaction
cumulative comparative
China Electronics Technology (Nanjing) Electronic Telecommunication
Information Development Co., LTD products
Telecommunication
Nanjing Nanman Electric Co., LTD 1,401,993.77
products
Management
Cetc Asset Management Co., LTD 11,367.48
Services
Winning bid service
China Far East International Tendering Corporation 6,109.77
fee
Hangzhou Hikvision Digital Technology Co., Ltd. Telecommunication
Beijing Branch products
Nanjing Putian Hongyan Electrical Technology Co., Telecommunication
LTD products
Current period Preceding period
Related parties Content of transaction
cumulative comparative
Telecommunication
Electronics Technology Group 9,093,672.28 2,677,186.98
products
Corporation
Research Institute 28 of China
Telecommunication
Electronics Technology Group 2,886,382.27 10,571,709.48
products
Corporation
Tianbo Information Technology Co., Telecommunication
LTD products
Telecommunication
Beijing Aotewei Technology Co., LTD 750,159.29
products
Nanjing Guorui Defense Systems Co., Telecommunication
LTD products
Dianke Cloud (Beijing) Technology Telecommunication
Co., LTD products
Putian Rail Transit Technology Telecommunication
(Shanghai) Co., LTD products
China Electronics Kepu Tian Telecommunication
Technology Co., LTD products
China Electronics Technology
Telecommunication
(Nanjing) Electronic Information 132,743.36
products
Development Co., LTD
Telecommunication
Nanjing Lop Technology Co., LTD 60,260.62 258,413.13
products
Telecommunication
Eastern Communications Corporation 45,575.20 128,113.81
products
Nanjing Les Electronic Equipment Co., Telecommunication
LTD products
Telecommunication
Nanjing Lop Co., LTD 2,108,165.46 3,201,174.26
products
Telecommunication
Guorui Technology Corporation 3,079,976.36
products
Nanjing Les Information Technology
Service fee 3,025,086.19 1,219,731.86
Co., LTD
Hebei Far East Communication Telecommunication
System Engineering Co., LTD products
Nanjing Guorui Xinwei Software Co., Telecommunication
LTD products
Nanjing Meichen Microelectronics Co., Telecommunication
LTD products
Nanjing Rail Transit System Telecommunication
Engineering Co., LTD products
Hangzhou Hongyan Electric Power Telecommunication
Co., LTD products
Telecommunication
Electronics Technology Group 43,504.03
products
Corporation
Cetc Taili Communication Technology Telecommunication
Co., LTD. Xining Branch products
Cetc Taili Communication Technology Telecommunication
Co., LTD. Yinchuan Branch products
Lease income \ expenses Lease income and
Name of lessee Status of leased assets recognized in the current expenses confirmed in the
period previous period
Rent and property
Nanjing Lop Co., LTD 197,619.05 197,619.05
income
Rent and property
Electronics Technology Group 1,200,550.46 1,413,979.03
income
Corporation
Cetc Metrology, Testing and Rent and property
Certification (Beijing) Co., LTD income
Lease income \ expenses Lease income and expenses
Name of Lessor Status of leased assets recognized in the current confirmed in the previous
period period
Rent and property
Putian High-tech Industry Co., LTD 336,767.76
management fees
Rent and property
Beijing Shouxin Co., LTD 469,662.32
management fees
Amount Commencement Maturity Whether the guarantee is
Name of related party
guaranteed date date mature
China Electric Power Rui Group
Co., LTD
China Electric Power Rui Group
Co., LTD
Related transaction Current period Preceding period
Name of related party
content cumulative comparative
Entrusted loan
China Potevio Information Industry Corporation 86,800,000.00 86,800,000.00
principal
China Potevio Information Industry Corporation Loan interest 1,669,815.00 4,354,177.50
Related transaction Current period Preceding period
Name of related party
content cumulative comparative
Principal of long-term
China Electronics Finance Co., LTD 70,000,000.00 70,000,000.00
borrowing
Long-term loan
China Electronics Finance Co., LTD 1,259,937.50 2,696,708.34
interest
Cetc Financial Leasing Co., LTD Other interest 38,233.79 79,729.23
Items Current period cumulative Preceding period comparative
Key management’s emoluments 1,302,295.00 1,957,209.00
(VI) Balance due to or from related parties
Ending balance Opening balance
Items Name of related party Bad debt
Book balance Book balance Bad debt reserve
reserve
Bank deposits:
China Electronics Technology
Finance Co., LTD
Accounts
receivable:
Nanjing Les Information
Technology Co., LTD
Shanghai Putian Post &
Telecommunication 8,755,534.00 8,755,534.00 8,755,534.00 8,755,534.00
Technology Co., LTD
China Electronics Technology 20,986,883.99 209,868.84 18,560,060.00 185,600.60
Group Corporation
Hebei Far East Communication
System Engineering Co., LTD
Research Institute 28 of China
Electronics Technology Group 15,635,284.64 312,502.25 13,445,649.66 205,355.90
Corporation
Putian Information Technology
Co., LTD
Putian Communications LLC 4,317,924.00 3,729,909.00 4,317,924.00 3,729,909.00
Nanjing Guorui Xinwei
Software Co., LTD
China Potevio Information
Industry Corporation
Nanjing Guorui Defense
Systems Co., LTD
China Electronics Kepu Tian
Technology Co., LTD
Nanjing Rail Transit System
Engineering Co., LTD
Nanjing Lop Co., LTD 829,203.63 8,292.04 178,712.22 1,787.12
Putian Rail Transit Technology
(Shanghai) Co., LTD
Taiji Computer Corporation
Limited
Nanjing Meichen
Microelectronics Co., LTD
Ending balance Opening balance
Items Name of related party Bad debt
Book balance Book balance Bad debt reserve
reserve
Sichuang Electronics Co., LTD 135,557.43 54,046.68 135,557.43 133,377.18
Cetc Taili Communication
Technology Co., LTD
Tianbo Information Technology
Co., LTD
Liyang 28th Institute System
Equipment Co., LTD
Eastern Communications
Corporation
China Electronics Technology
(Nanjing) Electronic Information 12,000.00 600.00 12,000.00 600.00
Development Co., LTD
Nanjing Lop Technology Co.,
LTD
China Electric Rice Information
System Co., LTD
Nanjing Nanman Electric Co.,
LTD
Guorui Technology Corporation 1,377,304.37 64,466.91 2,404,882.65 24,048.83
Dianke Cloud (Beijing)
Technology Co., LTD
Beijing Aotewei Technology
Co., LTD
Xiao Ji 99,027,539.07 23,324,338.30 96,532,702.01 23,252,424.22
Advance
payments:
Hangzhou Hikvision
Technology Co., LTD
Hangzhou Hikvision Digital
Technology Co., LTD. Nanjing 4,200.00
Branch
Xiao Ji 4,200.00 34,875.00
Other
receivables:
Putian Information Technology
Co., LTD
China Potevio Corporation 1,000.00 1,000.00 1,000.00 1,000.00
Hangzhou Hikvision
Technology Co., LTD
Hangzhou Hikvision Digital
Technology Co., LTD. Nanjing 2,766.00 2,766.00
Branch
Nanjing Putian Communication
Technology Co., LTD
Beijing Likan General
Communication Equipment 28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
Co., LTD
Xiao Ji 31,065,542.43 31,065,542.43 31,090,938.43 31,090,938.43
Totals 225,530,184.56 54,389,880.73 414,862,806.08 54,343,362.65
Project name Related Parties Closing balance Opening balance
Project name Related Parties Closing balance Opening balance
Accounts payable:
China Electronics Technology (Nanjing) Electronic
Information Development Co., LTD
China Potevio Corporation 14,918,045.42 14,918,045.42
Nanjing Nanman Electric Co., LTD 2,992,443.36 2,530,091.68
Putian High-tech Industry Co., LTD 25,000.00 25,000.00
Nanjing Putian Hongyan Electrical Technology Co., LTD 195,824.09
Xiao Ji 23,040,387.92 24,355,987.10
Contract liabilities:
China Potevio Corporation 3,727,418.22 3,727,418.22
Xiao Ji 3,727,418.22 3,727,418.22
Other payables:
Putian High-tech Industry Co., LTD 1,814,696.94 1,814,696.94
Nanjing Putian Information Technology Co., LTD 2,312,412.69 2,467,412.69
Putian Communications LLC 200,000.00 200,000.00
China Putian Information Industry Group Co., LTD 9,519,612.50 9,591,612.50
Xiao Ji 13,846,722.13 14,073,722.13
Non-current liabilities
due within one year:
China Potevio Corporation 188,463.61
XI. Share based payment
None.
XII.Commitments and contingencies
(I) Commitments
As of June 30th, 2025, the Company has no material commitments to disclose.
(II) Contingencies
As of June 30th, 2025, the Company had no material contingencies to disclose.
XIII. Events after the balance sheet date
As of the date of this report, the Company does not need to disclose any significant non adjusting
events after the balance sheet date.
XIV. Other significant events
Segment reports
Reportable segments are identified based on operating segments which are determined based on the
structure of the Company’s internal organization, management requirements and internal reporting
system. The Company identified reportable segments based on products, which include video
conferencing products, integrated wiring product, precision manufacturing, and other products.
Assets and liabilities shared by different segments are allocated pro rata among segments.
The Company identified reportable segments based on products, assets and liabilities of each
segment are the actual amount of its proportion in assets and liabilities, and revenue from main
operations and cost of main operations are those generated or incurred by each product segment.
Precision
Video conferencing Generic cable Inter-segment
Item manufacturing and Elimination
products products offsetting
others
income
cost
income from
-111.44
joint ventures
and associates
impairment -1,171,913.93 -528,388.30 919,038.15 -541,660.28
losses
of assets
and 126,561.56 1,192,130.42 2,630,406.74 55,355.28 110,917.97
amortization
tax
expenses
liabilities
XV. Notes to items of parent company financial statements
(I) Accounts receivable
Ages Closing balance Opening balance
Within 1 year 51,877,945.99 47,287,939.57
Over 5 years 157,098,086.00 156,866,329.69
Total 246,577,525.46 248,955,102.33
Less: Allowance for doubtful accounts 167,447,471.48 168,397,267.69
Total 79,130,053.98 80,557,834.64
Closing balance
Categories Book balance Provision for bad debts
Provision
Amount % to total Amount
proportion (%)
Receivables with provision made on an individual
basis
Receivables with provision made on a collective
basis
Among them: Combination 1: aging method 165,235,347.26 67.01 92,858,590.69 56.20
Combination 2: related parties 6,753,297.41 2.74
Total 246,577,525.46 100.00 167,447,471.48 67.91
Opening balance
Categories Book balance Provision for bad debts
Provision
Amount % to total Amount
proportion (%)
Receivables with provision made on an individual
basis
Receivables with provision made on a collective
basis
Among them: Combination 1: aging method 169,715,844.54 97.33 93,808,386.90 55.27
Combination 2: related parties 4,650,377.00 2.67
Total 248,955,102.33 100.00 168,397,267.69 67.64
（1）Receivables with provision made on an individual basis
Provision for Provision
Debtors Book balance Reasons
bad debts proportion (%)
Expected
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100.00 recovery is at
risk
Expected
MR.XU 17,591,683.74 17,591,683.74 100.00 recovery is at
risk
Expected
China Tower Corporation Limited 13,819,926.92 13,819,926.92 100.00 recovery is at
risk
Expected
Putian Information Technology Co. LTD 4,514,800.91 4,514,800.91 100.00 recovery is at
risk
Expected
China Railway Communication Signal Shanghai
Engineering Group Co., LTD
risk
Expected
Others 15,419,803.33 15,419,803.33 100.00 recovery is at
risk
Total 74,588,880.79 74,588,880.79
（2）Receivables with provision made on a collective basis
Combination 1: Aging combination
Closing balance Opening balance
Ages Provision for Provision proportion Provision for Provision
Book balance Book balance
bad debts (%) bad debts proportion (%)
Within 1
year
years
years
years
years
Over 5
years
Total 165,235,347.26 92,858,590.69 56.20 169,715,844.54 93,808,386.90 55.27
Combination 2: related parties
Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
Within 1
year
Total 6,753,297.41 4,650,377.00
Change in current period
Opening
Categories To withdraw or Cancel after Closing balance
balance Accrual Other changes
turn back verification
Credit risk
portfolio 93,808,386.90 -949,796.21 92,858,590.69
accrual
Accrued on a
case-by-case 74,588,880.79 74,588,880.79
basis
Total 168,397,267.69 -949,796.21 167,447,471.48
Proportion to the total
Provision for bad
Debtors Book balance balance of accounts
debts
receivable (%)
The 14th Research Institute of China
Electronics Technology Group 20,986,883.99 8.51 209,868.84
Corporation
Dongpo Xi Laos Co., Ltd. 19,708,086.54 7.99 19,708,086.54
Mr. Xu 17,591,683.74 7.13 17,591,683.74
China Tower Co., Ltd 13,819,926.92 5.60 13,819,926.92
Shanghai Potevio Technology Co., Ltd 8,755,534.00 3.55 8,755,534.00
Total 80,862,115.19 32.78 60,085,100.04
(II)Other receivable
Items Closing balance Opening balance
Dividends receivable 28,553,400.00 19,400,000.00
Other receivables 4,136,921.88 3,494,075.34
Total 32,690,321.88 22,894,075.34
（1）Details
Items Closing balance Opening balance
Nanjing Putian Datang Information Electronics Co., Ltd. 28,553,400.00 19,400,000.00
（1）Other receivable categorized by nature
Items Closing balance Opening balance
Temporary payment receivable 40,754,643.28 39,807,462.57
Deposit 4,456,123.63 4,391,570.77
Travel allowance 70,792.59 32,492.59
Others 364,410.03 835,652.04
Total 45,645,969.53 45,067,177.97
Less: Allowance for doubtful accounts 41,509,047.65 41,573,102.63
Total 4,136,921.88 3,494,075.34
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 3,143,907.69 944,116.13
Over 5 years 39,100,865.61 39,110,865.61
Total 45,645,969.53 45,067,177.97
Less: Allowance for doubtful accounts 41,509,047.65 41,573,102.63
Total 4,136,921.88 3,494,075.34
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items 12-month Lifetime expected Lifetime expected Total
expected credit credit losses (credit credit losses
losses not impaired) (credit impaired)
Opening balance 10,595,007.73 30,978,094.90 41,573,102.63
Opening balance in the current
-64,054.98 -64,054.98
period
Closing balance - 10,530,952.75 30,978,094.90 41,509,047.65
（4）Provision for bad debts
Change in current period
Opening Closing
Categories To withdraw or Cancel after
balance Accrual Other changes balance
turn back verification
Losses on bad
debts
（5）Details of the top 5 debtors with largest balances
Proportion
to the total
Nature of Closing balance of Provision for
Debtors Ages
receivables balance other bad debts
receivables
(%)
Beijing Likangpu Temporary
Telecommunications Equipment payment 28,912,122.71 Over 5 years 63.34 28,912,122.71
Co.,Ltd. receivable
Temporary yuan for 3-4 years,
Nanjing Putian Technology Co., Ltd payment 1,784,619.72 404,315.31 yuan for 3.91 1,784,619.72
receivable 4-5 years, and
more than 5 years
Temporary
Nanjing Putian Communication
payment 805,545.63 Over 5 years 1.76 805,545.63
Industry Co., Ltd.
receivable
Proportion
to the total
Nature of Closing balance of Provision for
Debtors Ages
receivables balance other bad debts
receivables
(%)
Nanjing Construction Enterprise Security
Migrant Worker Wage Security Fund Deposit and 400,000.00 Over 5 years 0.88 400,000.00
Management Office Deposit
China United Network Security
Communications Co., Ltd. Beijing Deposit and 390,000.00 Over 5 years 0.85 390,000.00
Branch Deposit
Total 32,292,288.06 —— 32,292,288.06
(III) Long-term equity investments
Closing balance Opening balance
Items Provision for Carrying Provision for
Book balance Book balance Carrying amount
impairment amount impairment
Investments in
subsidiaries
Investments in
associates and 10,412,571.93 10,412,571.93 10,412,683.37 10,412,683.37
joint ventures
Total 53,639,030.45 1,294,510.00 52,344,520.45 53,639,141.89 1,294,510.00 52,344,631.89
Opening Provision for
Beginning Closing Closing balance
balance of impairment
Investees balance (book Decrease balance (book of provision for
impairment made in current
value) value) impairment
provision period
Nanjing Putian
Telege Intelligent 3,320,003.45 3,320,003.45
Building Ltd.
Nanjing Southern
Telecom Co., Ltd.
Nanjing Putian
Datang Information 5,436,797.07 5,436,797.07
Electronics Co., Ltd.
Nanjing Putian
Communication
Technology Co.,
LTD
Total 41,931,948.52 1,294,510.00 41,931,948.52 1,294,510.00
Increase/Decrease
Investment Closing
Opening Adjustment in Cash Closing balance of
Investees income Changes
balance Investments Investments other dividend/Profit Provision for balance provision for
recognized in other Others
increased decreased comprehensive declared for impairment impairment
under equity equity
income distribution
method
I. Joint ventures
SEI-Nanjing Putian
Optical Network 10,412,683.37 -111.44 10,412,571.93
Co., Ltd.
Total 10,412,683.37 -111.44 10,412,571.93
Full text of the Semi-annual Report for 2025 of Nanjing Putian Telecommunications Co., Ltd.
(IV) Operating revenue/Operating cost
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 16,260,961.31 14,735,889.65 10,079,325.99 10,900,205.84
II.Other operations 1,599,677.71 6,869.82 1,748,958.35 32,889.72
Total 17,860,639.02 14,742,759.47 11,828,284.34 10,933,095.56
Revenue recognition time Income from main business Other business income
Confirm at a certain point 16,260,961.31 1,599,677.71
Information related to the transaction price allocated to the remaining performance obligations: The revenue
amount corresponding to the performance obligations that have been signed but not yet fulfilled or fully fulfilled
at the end of this reporting period is 10.83 million yuan, of which 8.79 million yuan is expected to be recognized
as revenue in 2025 and 2.04 million yuan is expected to be recognized as revenue in 2026.
(V) Investment income
Current period Preceding period
Items
cumulative comparative
Investment income from long-term equity investments under cost method -111.44 -66.50
Others 9,290,594.46 9,725,282.63
Total 9,290,483.02 9,725,216.13
XVI. Other supplementary information
(I) Schedule of non-recurring profit or loss
Items Current amount Description
Profit and loss on disposal of non-current assets, including the write-off part of the asset
-16,680.80
impairment provision
Government subsidies included in the current profit and loss (closely related to the
business of the enterprise, except those enjoyed in accordance with the national unified 314,000.00
standard quota or quantitative government subsidies)
Allowance for impairment reversal of receivables tested separately for impairment 17,721.17
Gains and losses on debt restructuring 142,610.75
Other non-operating income and expenses other than those described above 35,060.79
Other profit and loss items that meet the definition of non-recurring profit and loss
Minus: Impact of income tax 65,059.45
Amount of influence of minority shareholders 171,194.75
Full text of the Semi-annual Report for 2025 of Nanjing Putian Telecommunications Co., Ltd.
Items Current amount Description
Total 256,241.07
(II) Return on net assets(RONA) and earnings per share(EPS)
EPS (yuan/share)
Profit of the reporting period Weighted average RONA (%)
Basic EPS（Yuan per share） Diluted EPS（Yuan per share）
Net profit attributable to
-66.39% -0.03 -0.03
shareholders of ordinary shares
Net profit attributable to
shareholders of ordinary shares
-68.77% -0.03 -0.03
after deducting non-recurring
profit or loss
(1) Differences in net profits and net assets in the financial reports disclosed in accordance with
international accounting standards and in accordance with Chinese accounting standards
□Applicable ?Not applicable
(2) Differences in net profits and net assets in the financial reports disclosed in accordance with overseas
accounting standards and in accordance with Chinese accounting standards
□Applicable ?Not applicable
(3) As for explanation of the reasons for the discrepancy in accounting data under domestic and overseas
accounting standards, if the discrepancy adjustment is made for the data audited by an overseas audit
institution, the name of the overseas institution shall be indicated
Nanjing Putian Telecommunications Co., Ltd.
August 4, 2025
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