Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Nanjing Putian Telecommunications Co., Ltd.
Annual Report 2022
[April 2023]
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Annual Report 2022
Section I Important Notes, Contents and Interpretations
The Board of Directors, Board of Supervisors, directors, supervisors and senior
executives of the Company guarantee the truthfulness, accuracy and
completeness of the Annual Report, and ensure that there are no false records,
misleading statements or major omissions, and they will be held individually and
jointly liable for any legal liability that may arise.
Li Langping, the person in charge of the Company, Liao Rongchao, the person in
charge of accounting, and Lv Yunfei, the person in charge of the accounting firm
(accounting supervisor), declare that they guarantee the truthfulness, accuracy
and completeness of the financial report represented in this Annual Report.
All directors attended the board meeting at which this Annual Report was
considered.
This Annual Report contains forward-looking statements concerning future plans
such as the Company's business plan. It is important to note that these statements
are not intended to constitute a substantive commitment to investors, and
investors and related parties should exercise sufficient risk awareness and
carefully consider the differences among plans, forecasts, and commitments.
In Section III Discussion and Analysis of the Management Team, the Company
has provided an analysis of the potential risks that may affect the Company's
development. We encourage investors to review this section carefully.
The Company planed not to distribute cash dividends and bonus shares, or
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
increase its share capital from provident fund.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Contents
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Contents of Documents for Future Reference
(I) Financial statements containing the signatures and seals of the person in charge of the Company, the person in charge of accounting
work and the person in charge of the accounting firm (accounting supervisor).
(II) The original audit report containing the seal of the accounting firm and the signatures and seals of the certified public accountants.
(III) The originals of all Company documents and announcements publicly disclosed during the reporting period.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Interpretations
Term Means Interpretation
Nanjing Putian Telecommunications Co.,
The Company means
Ltd.
China Electronics Technology Group
CETC means
Corporation
CETC Glarun means CETC Glarun Group Co., Ltd.
Nanjing Southern Telecom Co., Ltd. (a
Southern Telecom means
holding subsidiary of the Company)
Nanjing Putian Telege Intelligent
Telege means Building Ltd. (a holding subsidiary of the
Company)
Nanjing Nanman Electrical Co., Ltd. (a
NM Electrical means wholly-owned subsidiary of the
Company)
Nanjing Putian Datang Information
Datang means Electronics Co., Ltd. (a holding
subsidiary of the Company)
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Section II Company Profile and Main Financial Indicators
I. Company information
Stock abbreviation NJ TEL B Stock code 200468
Stock exchange Shenzhen Stock Exchange
Chinese name Nanjing Putian Telecommunications Co., Ltd.
Chinese abbreviation Nanjing Putian
English name (if any) Nanjing Putian Telecommunications Co., Ltd.
Legal representative Li Langping
Registered address No.8 Fenghui Avenue, Yuhua Economic Development Zone, Nanjing
Postal code 210039
When the Company was established in 1997, its registered address was Building 1 on the west
side of Ericsson in Jiangning Economic and Technological Development Zone, Nanjing; In 2003,
Changes of the Company’s
the registered address of the Company was changed to No.58 Qinhuai Road, Jiangning Economic
registered address
and Technological Development Zone, Nanjing; In 2021, the registered address of the Company
was changed to No.8 Fenghui Avenue, Yuhua Economic Development Zone, Nanjing
Putian Science and Technology Business Incubator, No.8 Fenghui Avenue, Yuhuatai District,
Office address
Nanjing City, Jiangsu Province
Postal code 210039
Website www.postel.com.cn
E-mail securities@postel.com.cn
II. Contact persons and contact information
Secretary of the Board of Directors Securities representative
Name Li Jing Dai Yuan
Putian Science and Technology Business Putian Science and Technology Business
Incubator, No.8 Fenghui Avenue, Incubator, No.8 Fenghui Avenue,
Address
Yuhuatai District, Nanjing City, Jiangsu Yuhuatai District, Nanjing City, Jiangsu
Province Province
Tel. 86-25-69675805 86-25-69675865
Fax 86-25-52416518 86-25-52416518
E-mail lijing@postel.com.cn daiyuan@postel.com.cn
III. Location of information disclosure and provision
Website of the stock exchange where the Company discloses its
Shenzhen Stock Exchange (http://www.szse.cn)
annual report
Names and websites of the media in which the Company
Securities Times, CNINFO (www.cninfo.com.cn)
discloses its annual report
Place where the Annual Report of the Company is prepared Office of the Board of Directors of the Company
IV. Changes in registration
Unified social credit code 91320000134878054G
Changes in the main business of the Company since its listing (if
No change
any)
When the Company was established in 1997, its controlling
shareholder was China National Posts and Telecommunications
Industry Corporation (later renamed China Potevio Information
Industry Group Corporation and China Potevio Information
Industry Group Co., Ltd. successively) In 2005, China Potevio
Information Industry Group Corporation transferred all its
Changes of controlling shareholders (if any) shares to China Potevio Information Industry Co., Ltd. free of
charge, and the Company’s controlling shareholder was changed
to China Potevio Information Industry Co., Ltd. In 2022, China
Potevio Information Industry Co., Ltd. transferred all its shares
to CETC Glarun Group Co., Ltd. free of charge, and the
Company’s controlling shareholder was changed to CETC
Glarun Group Co., Ltd.
V. Other relevant information
Accounting firms engaged by the Company
Name of the accounting firm WUYIGE Certified Public Accountants LLP
Room 2206, Floor 22, No.1 Zhichun Road, Haidian District,
Office address of the accounting firm
Beijing
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Names of the signing accountants Wan Fangquan, Guo Zhigang
Sponsor engaged by the Company to perform continuous supervision duties during the reporting period
□Applicable ?Not applicable
Financial consultant engaged by the Company to perform continuous supervision duties during the reporting period
□Applicable ?Not applicable
VI. Main accounting data and financial indicators
Does the Company need to retroactively adjust or restate the accounting data of previous years
□Yes ?No
Increase or decrease in
the previous year
Operating revenue
(yuan)
Net profit attributable
to shareholders of the -47,390,545.55 -138,766,373.70 65.85% 21,964,552.84
listed company (yuan)
Net profit attributable
to shareholders of the
listed company after
-51,234,544.29 -141,603,716.82 63.82% -154,393,042.76
deducting non-
recurring gains and
losses (yuan)
Net cash flow from
operating activities -30,726,510.39 -61,717,528.76 50.21% 88,145,348.87
(yuan)
Basic earnings per
-0.220 -0.650 66.15% 0.1
share (yuan/share)
Diluted earnings per
-0.220 -0.650 66.15% 0.1
share (yuan/share)
Weighted average -114.39% -105.00% -9.39% 12.29%
return on net assets
Increase or decrease at
the end of the current
By the end of 2022 By the end of 2021 year compared with the By the end of 2020
end of the previous
year
Total assets (yuan) 891,390,055.62 993,571,982.44 -10.28% 1,167,608,410.82
Net assets attributable
to shareholders of the 21,995,336.28 65,187,412.69 -66.26% 189,624,160.92
listed company (yuan)
The lower of the Company's net profit before and after deduction of non-recurring profits and losses for the last three fiscal years is
negative, and the audit report for the latest year shows that there is uncertainty about the Company's ability to continue as a going
concern
□Yes ?No
The lower of the Company's net profit before and after deduction of non-recurring profits and losses is negative
?Yes □No
Item 2022 2021 Remarks
Operating revenue (yuan) 879,566,048.96 917,129,674.49 -
Deducted amount of
operating revenue (yuan)
Amount after deduction of
operating revenue (yuan)
VII. Differences in accounting data under domestic and overseas accounting standards
accounting standards and in accordance with Chinese accounting standards
□Applicable ?Not applicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in accordance
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
with international accounting standards and Chinese accounting standards.
accounting standards and in accordance with Chinese accounting standards
□Applicable ?Not applicable
During the reporting period, there is no difference between the net profit and net assets in the financial reports disclosed in accordance
with overseas accounting standards and Chinese accounting standards.
VIII. Main quarterly financial indicators
Unit: yuan
Q1 Q2 Q3 Q4
Operating revenue 209,168,303.46 198,144,312.89 230,838,273.53 241,415,159.08
Net profit attributable
to shareholders of the -11,616,937.13 -16,094,360.20 -6,590,348.37 -13,088,899.85
listed company
Net profit attributable
to shareholders of the
listed company after
-11,627,342.45 -12,926,126.45 -6,698,530.80 -19,982,544.59
deducting non-
recurring gains and
losses
Net cash flow from
-143,341,352.67 47,477,355.11 -38,687,202.60 103,824,689.77
operating activities
Whether the above financial indicators or the sum of them are significantly different from the relevant financial indicators in the
quarterly report and semi-annual report disclosed by the Company
□Yes ?No
IX. Items and amounts of non-recurring profits and losses
?Applicable □Not applicable
Unit: yuan
Item Amount in 2022 Amount in 2021 Amount in 2020 Description
Profits and losses on
disposal of non-current
assets (including the
write-off part of the
provision for
impairment of assets)
Government subsidies
included in the profits
and losses of the
current period (except
the government
subsidies that are
closely related to the
normal operation of the 210,513.19 660,727.46 6,456,622.79
Company, conform to
the national policies
and regulations, and
are continuously
enjoyed according to a
certain standard quota
or quantitative amount)
Profit and loss of debt
restructuring
Other non-operating
revenue and expenses
other than the above
items
Other profit and loss
items that comply with
the definition of non-
recurring profit and
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
loss
Less: Affected amount
of revenue tax
Affected amount of
minority shareholders' 426,894.09 365,425.45 2,566,581.35
equity (after tax)
Total 3,843,998.74 2,837,343.12 176,357,595.60 --
Details of other profit and loss items that comply with the definition of non-recurring profit and loss:
?Applicable □Not applicable
Other profit and loss items that comply the definition of non-recurring profit and loss are mainly investment income of trading financial
assets during the reporting period.
Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information Disclosur e
by Companies with Public Securities Offerings - Non-recurring Profits and Losses as recurring profit and loss items
□Applicable ?Not applicable
The Company does not define the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information
Disclosure by Companies with Public Securities Offerings as recurring profit and loss items.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Section III Discussion and Analysis of the Management Team
I. Industry in which the Company operates during the reporting period
According to the data released by the Ministry of Industry and Information Technology, in 2022, China made every
effort to promote the construction of a network powerhouse and a digital nation, and strove to deepen the integration
of digital economy and real economy. New progress has been made in the construction of new information
infrastructure such as 5G networks and Gigabit optical networks, and the popularization of various applications has
been accelerated in an all-round way, providing strong support for shaping new advantages of digital economy and
enhancing new dynamics of economic development. During 2022, the communications industry made notable
progress in improving its infrastructure, particularly in the construction of information infrastructure. New
infrastructures, such as 5G networks and Gigabit optical networks, were moderately deployed in anticipation. The
role of digital development was continuously enhanced to support these new infrastructures. Meanwhile, emerging
businesses, such as data centers, cloud computing, big data, and the Internet of Things, saw rapid growth and
contributed over 60% to the industry's development.
The communication equipment manufacturing industry is an upstream industry and an important foundation of the
communications industry. Driven by national policies, the communication equipment manufacturing industry is
generally facing good development opportunities; Additionally, the communication equipment manufacturing
industry is a fully competitive industry, with a great many of players in fierce competition.
The following is an analysis of the Company's main products in different sub-sectors. In terms of communication
infrastructure products, the construction of data centers has gained strong momentum due to the implementation of
"East-to-west Computing Resource Transfer Project" and green energy initiatives. The Company’s products,
including comprehensive cabling, intelligent ODN, and data center support products, has opened up new
opportunities and gained sustained and significant market demand. As for video conferencing products, with the
rapid development of China's digital economy, the information technology application innovation industry is
entering the application stage. This progress has increased the significance of "self-control" technology and created
vast opportunities for the development of the Company's video conferencing products. The Company is gradually
transitioning and upgrading its products to be more cloud-based, intelligent, and integrated to meet the demand of
the market. With respect to intelligent electrical products, the Company's intelligent power distribution products
and platform are at the forefront of a new era in the rail transportation sector. With "green" and "smart" power
distribution systems, the Company is improving operational and maintenance efficiency, energy consumption
management, and energy use in rail transportation. These advancements are effectively assisting customers in
achieving their goals of carbon emissions peak and carbon neutrality. In regard to smart lighting products, to achieve
the goals of carbon emissions peak and carbon neutrality, the construction of eco-friendly intelligent cities is being
prioritized in various regions. The number of intelligent streetlights is rapidly increasing, with approximately one
million new ones installed each year. The Company's IoT-based grid-powered street light controller products have
enormous potential for development.
II. Major business of the Company during the reporting period
As one of the important providers of products and solutions in the field of information and communication in China,
the Company adheres to the strategy of "products + solutions + services" and constantly accelerates product
innovation, industrial restructuring, and transformation and upgrading. The main business of the Company and its
subsidiaries involves communication infrastructure products, video conferencing, intelligent electrical and
intelligent lighting, etc., including optical distribution network and communication supporting integrated solutions
(intelligent ODN integrated solutions, optical network intelligent solution, energy-saving data center solution),
multimedia communication and application solutions, building intelligent integrated solutions, industrial intelligent
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power distribution systems, IoT-based grid-powered street lamp control systems, etc. Its customers include domestic
telecom operators, network service providers, and industry customers from governments, finance, power, medical
industries, etc.
The Company's optical distribution network and communication supporting integrated solutions can be used for
domestic communication network construction, radio and television network transformation, high-speed rail
communication construction, urban subway construction, e-commerce industry, etc.; its data center products are
widely used in data center construction projects of operators, Internet enterprises, etc.; the subsidiary Southern
Telecom can offer multimedia communication and application solutions to large and medium industry customers in
the fields of government, finance, medical care and education; Its subsidiary Telege mainly provides customers with
mid-to-high-end integrated cabling and building intelligent system solutions; the subsidiary NM Electrical provides
intelligent power distribution solutions for various scenarios such as rail transit, airports, ports and parks; the
subsidiary Datang mainly provides customers with solutions of solar energy, IoT-based grid-connected street lamp
controllers, and IoT-based street lamp management and control.
The Company mainly obtains business opportunities by participating in project bidding. It designs, manufactures or
purchases equipment required by customers according to project requirements, and is responsible for installation,
commissioning and system integration, and realizes profits after deducting cost according to contract prices. The
Company's operating performance is mainly affected by the capital expenditure, information technology
investments and bidding results of telecom operators, government agencies and industry customers, as well as
fluctuations in raw material prices and changes in other costs.
III. Analysis of core competitiveness
The Company possesses a well-established market network and extensive industry experience, having provided
long-term services to customers across a diverse range of sectors. These include central enterprises, government
agencies, rail transit companies, telecommunications operators, financial institutions, healthcare providers, electric
power companies, and internet-based businesses.
The Company adheres to a market-oriented approach, and focuses on strengthening and optimizing its core products.
It actively develops new products and continually enhances its innovative capabilities. The Company has significant
technical and product advantages in cabling products. It has developed a series of optical network connection
products that have earned multiple national invention patents. It has a strong brand influence in China’s fiberoptical
communications industry. Its access products have shown excellent performance in wired access networks, optical
transmission networks, and other areas. The Company has ranked among the "China’s Top 10 Most Competitive
Enterprises of Optical Transmission and Network Access Equipment" for years. The subsidiary Southern Telecom
has focused on video communication applications for more than 20 years, and has accumulated abundant market
channels and customer resources, and developed differentiated products and scheme design capabilities. Its self-
developed products have been recognized by large industry customers. Intelligent electrical products of NM
Electrical, a subsidiary, are widely used by customers from airport, dock, rail transit and other industries. With rich
customer resources and industry experience, NM Electrical can provide complete sets of products and solutions
tailored to customer needs. The subsidiary Telege specializes in integrated cabling in high-end market. It is
committed to R&D of new products such as new generation intelligent cabling systems and integrated cabling
management platforms. The smart lighting products of Datang, a subsidiary, are incorporated into Datang’s
integrated solutions of advanced IoT-based grid-connected street lamp control platforms for its customers.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
The Company is an information and communications subsidiary of a central enterprise. Its communications products
have gained a strong brand reputation in the domestic fiber optical communications industry, particularly in the area
of network connection products. The integrated cabling products of Telege have been awarded the prestigious titles
of "Famous Brand of Jiangsu Province" and "Well-known Trademark." They have consistently ranked among the
top ten domestic integrated cabling brands for sixteen consecutive years. Southern Telecom owns well-known
trademarks such as Ruijing and Ruizhi, and its video conferencing products enjoy high brand awareness in the
domestic market. NM Electrical is a well-known brand in the rail transit industry.
During the reporting period, the Company gained 19 new patents, including 7 invention patents, 8 utility models, 4
software copyrights. Additionally, it obtained 88 certifications for its products and participated in the formulation
of 4 national and industry standards.
IV. Analysis of main business
In September 2022, according to the strategic deployment of CETC, in order to promote the high-quality
development of Nanjing Putian, China Potevio Information Industry Co., Ltd., the former controlling shareholder
of the Company, transferred its shares to CETC Glarun Group Co., Ltd. (hereinafter referred to as "CETC Glarun")
free of charge, and entrusted CETC Glarun with the management of Nanjing Putian. Faced with unfavorable factors
such as slowing macroeconomic growth, the Company resolutely implemented the decisions of the Leading Party
Group of CETC and the Party Committee of CETC Glarun, and solidly promoted integrated development in six
aspects: "strategy, business, management, system, teamwork, and culture". The Company strove for maintaining a
stable foundation while making necessary changes to adapt to new challenges by strengthening centralized control,
and actively expanding markets and reinforcing internal management. To achieve this, the Company implemented
several measures. Firstly, it identified its development positioning, consolidated internal and external resources and
actively integrated into the upstream and downstream industry chains to improve economic efficiency. Secondly, it
took steps to reduce costs, improve efficiency and increase profits by strictly controlling low-profit businesses,
clearing unprofitable subsidiaries, streamlining organizational structures, optimizing personnel structures,
recovering accounts receivable and clearing inventory debts, and strengthening cost control. Lastly, it activated
underperforming and idle assets and improved the quality of asset management to promote its stable development.
During the reporting period, the Company realized operating revenue of 879.57 million yuan, and the net profit
attributable to shareholders of the listed company was -47.39 million yuan, a decrease of 91.38 million yuan
compared with the previous year.
Development of main business during the reporting period:
The Company upheld the concept of grand markets and strove to expand further into traditional industry markets
by focusing on key industries and customers. It strengthened collaboration within the upstream and downstream
industry chains of CETC and continuously increased its investment in technology research and development. Its
primary objective was to excel in its core business and become a prominent player in the industry. The Company
has set up the Industrial Development Department to actively promote the business coordination with the member
units of CETC, and formed a variety of business cooperation modes such as system matching, product sales and
joint research and development. The Company’s 12 products in 5 categories have been successfully selected into
CETC’s internal preferred product catalogue, and the Company has become a qualified supplier of many member
units of CETC. Additionally, the Company has obtained the qualification of second-class military secrecy
organization, laying the foundation for actively exploring the military business market.
In terms of integrated cabling products, on the basis of traditional distribution channels, the Company aimed at key
industries and key customers and made breakthrough progress. It supported the construction of key projects such as
mobile cabin hospitals in Shanghai, machine rooms of Shanghai Unicom Data Center, and Beijing Emergency
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Center; it actively followed up customers in military, financial and other industries and implemented an EPC project
of an army; it won the bid for the data center project of Guangxi Branch of Bank of Communications, and achieved
a breakthrough in the bank’s localization of its core machine rooms with domestic products.
In terms of video conferencing products, the Company adopted the sales mode of "product distribution + direct
orders from projects", and continued to strengthen customer stickiness. Targeting leading central enterprises and
top-tier enterprises in finance and other industries, the Company won over 20 significant projects of central
enterprises and aimed to deepen and refine its relationships with high-quality customers. It incorporated its self-
developed products into tailored integrated solutions, promoting successful implementation of projects such as those
of Jining Medical University and Daoli Public Security Sub-bureau. Additionally, the Company actively expanded
its sales network by increasing its efforts in internet marketing and partnering with over 70 distributors.
In regard to smart electrical products, the Company continued expanding its reach in the rail transit sector and won
bids for Nanjing Metro Line 5, Beijing Metro Line 12 and Line 17, etc.; It also focused on developing new industrial
connector products and building distributor channels.
As for communication infrastructure products, the Company attached special importance to developing markets in
industries such as rail transit, energy and power, and military industries. Its intelligent ODN products successfully
won bids for key projects such as those of Beijing Metro, Hangzhou Pipeline, Western Theater and Shanghai
Unicom.
For smart lighting products, the Company strengthened its product structure, broadened its market channels and
innovated its service models, achieving a total shipment of 370,000 solar controllers. It completed a key project,
namely the construction of new rural street light systems in Nanjing, and achieved a new breakthrough in product
development by providing customized solar-powered security monitoring controllers to Hikvision for the first time.
(1) Composition of operating revenue
Unit: yuan
Proportion in Proportion in increase or
Amount Amount decrease
operating revenue operating revenue
Total operating
revenue
Industry
Communication
industry
Electrical industry 91,087,208.27 10.36% 102,430,773.20 11.17% -11.07%
Product
Revenue from
main business -
integrated cabling
products
Revenue from
main business -
video conferencing
products
Revenue from
main business -
smart electrical
products
Revenue from
main business -
communication
infrastructure
products and
others
Internal offset -40,821,613.26 -4.64% -32,454,210.31 -3.54% -25.78%
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Revenue from
other business
Region
Domestic 879,566,048.96 100.00% 917,129,674.49 100.00% -4.10%
Sales mode
Direct selling 464,411,292.37 52.80% 450,874,262.30 49.16% 3.00%
Distribution 415,154,756.59 47.20% 466,255,412.19 50.84% -10.96%
(2) The industries, products, regions and sales modes that account for more than 10% of the Company's operating revenue or
operating profit
?Applicable □Not applicable
Unit: yuan
Operating Gross profit
Operating costs
revenue margin
increased or
increased or increased or
Operating Gross profit decreased over
Operating cost decreased over decreased over
revenue margin the same period
the same period the same period
of the previous
of the previous of the previous
year
year year
Industry
Communication
industry
Electrical
industry
Product
Revenue from
main business -
integrated 363,986,691.29 284,913,207.39 21.72% -4.53% -2.36% -1.74%
cabling
products
Revenue from
main business -
video 304,872,384.83 240,566,689.70 21.09% 3.96% 5.61% -1.24%
conferencing
products
Revenue from
main business -
smart electrical
products
Revenue from
main business -
communication
infrastructure
products and
others
Internal offset -40,821,613.26 -40,621,384.62 0.49% -25.78% -25.17% 0.49%
Revenue from
other business
Region
Domestic 879,566,048.96 698,607,630.42 20.57% -4.10% -3.31% -0.65%
Sales mode
Direct selling 464,411,292.37 378,412,008.17 18.52% 3.00% 4.11% -0.87%
Distribution 415,154,756.59 320,195,622.25 22.87% -10.96% -10.82% -0.12%
When the statistical range of the Company's main business data is adjusted during the reporting period, the Company's main business
data according to the range adjusted at the end of the reporting period in the latest year is
□Applicable ?Not applicable
(3) Whether the Company's physical sales revenue is greater than the labor service revenue
?Yes □No
Year-on-year
Industry Item Unit 2022 2021 increase or
decrease
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Sales Yuan 788,478,840.69 814,698,901.29 -3.22%
Communication Production Yuan 785,475,356.70 793,048,409.88 -0.95%
industry Inventory Yuan 126,106,820.77 129,110,304.76 -2.33%
Sales Yuan 91,087,208.27 102,430,773.20 -11.07%
Production Yuan 73,999,365.12 110,970,857.99 -33.32%
Electrical industry
Inventory Yuan 40,333,417.79 57,421,260.94 -29.76%
Explanation of the reasons why the relevant data changed by more than 30% year-on-year
?Applicable □Not applicable
The main reasons for the large year-on-year decline in the production of electrical products are:
inventory management optimization and inventory occupation reduction.
(4) The performance of major sales contracts and major purchase contracts signed by the Company as of the reporting
period
□Applicable ?Not applicable
(5) Composition of operating costs
Industry
Industry
Unit: yuan
Industry Item Proportion to Proportion to increase or
Amount Amount decrease
operating costs operating costs
Cost of main
business - raw
Communication
material cost 579,046,304.70 82.89% 581,208,359.85 80.44% -0.37%
industry
(procurement
cost)
Communication Cost of main
industry business - other
Communication Cost of other
industry business
Cost of main
business - raw
Electrical
material cost 56,741,067.50 8.12% 65,532,247.28 9.07% -13.42%
industry
(procurement
cost)
Electrical Cost of main
industry business - other
Electrical Cost of other
industry business
Total Operating cost 698,607,630.42 100.00% 722,497,650.68 100.00% -3.31%
Description
(6) Whether the consolidation scope changed during the reporting period
?Yes □No
See the section "Changes in the scope of consolidation" in the notes to the financial statements in the full text of
the annual report.
(7) Major changes or adjustments in the business, products or services of the Company during the reporting period
□Applicable ?Not applicable
(8) Main customers and suppliers
Main sales customers of the Company
Total sales amount of the top five customers (yuan) 109,132,100.82
Proportion of total sales amount of the top five customers to
total annual sales amount
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Proportion of related party sales of the top five customers' sales
to the total annual sales
Information of the Company’s top 5 customers
Proportion to total annual
S/N Customer name Sales (yuan)
sales
Total -- 109,132,100.82 12.41%
Other information of major customers
□Applicable ?Not applicable
Major suppliers of the Company
Total purchase amount of the top 5 suppliers (yuan) 180,847,944.18
Proportion of total purchase amount of the top 5 suppliers to
total annual purchase amount
Proportion of related party purchase amount in the top 5
suppliers' purchase amount to total annual purchase amount
Information of the Company’s top 5 suppliers
Proportion to total annual
S/N Name of supplier Purchase amount (yuan)
purchase amount
Total -- 180,847,944.18 28.44%
Other information of major suppliers
□Applicable ?Not applicable
Unit: yuan
Year-on-year increase Description of major
or decrease changes
Sales expenses 75,331,981.00 91,425,098.10 -17.60%
Management fees 63,190,264.31 67,220,016.02 -5.99%
During the reporting
period, the financing
scale increased
Financial expenses 10,081,432.77 7,313,928.56 37.84%
compared with the
same period of the
previous year
R&D expenses 42,690,479.34 55,472,535.49 -23.04%
?Applicable □Not applicable
Expected impact on the
Name of main R&D
Project purpose Project progress Goals to be achieved future development of
project
the Company
Prototypes or sample
machines of new
Drawings and data
products, sample parts,
(inspection Enhance the
sample products,
Smart micro module specifications, competitiveness of the
formulations, and new R&D completed
(cold channel) instruction manuals, Company in data
equipment that are
product sample data, center products
independently
etc.)
developed by the
company
Development of Prototypes or sample R&D completed Software delivery Enhance the
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
information release machines of new differentiation
systems based on products, sample parts, advantages of the
domestic processor sample products, Company's video
architecture formulations, and new conferencing solutions,
equipment that are enhance the stickiness
independently of major customers,
developed by the and enhance the market
company competitiveness of
video conferencing
project construction.
Enhance the
Prototypes or sample differentiation
machines of new advantages of the
products, sample parts, Company's video
Ruijing video
sample products, conferencing solutions,
conferencing network
formulations, and new R&D completed Software delivery enhance the stickiness
quality diagnosis
equipment that are of major customers,
system
independently and enhance the market
developed by the competitiveness of
company video conferencing
project construction.
Prototypes or sample
machines of new
products, sample parts,
sample products, Sample and test
Intelligent in-situ Improve the intelligent
formulations, and new R&D completed environment, internal
control box level of products
equipment that are evaluation
independently
developed by the
company
Prototypes or sample
machines of new
Introduce products that
New-generation products, sample parts,
Enrich product are more
intelligent cabling sample products,
portfolios and improve technologically
system and integrated formulations, and new R&D completed
technical parameters of advanced to enhance
cabling management equipment that are
products the competitiveness of
platform 2022 independently
the Company
developed by the
company
Prototypes or sample
machines of new Inspection
Integrated cabling
products, sample parts, specifications,
Integrated cabling systems in line with
sample products, instruction manuals,
systems for industrial Achieve the phased future development and
formulations, and new product sample data,
Internet and industrial goals meeting the
equipment that are sample and test
applications requirements of
independently environment, internal
industrial Internet
developed by the appraisal
company
Prototypes or sample
machines of new Inspection
products, sample parts, specifications, Meet the demand of
sample products, instruction manuals, product intelligence
Smart power supply
formulations, and new R&D completed product sample data, and provide customers
optimization project
equipment that are sample and test with satisfactory
independently environment, internal products.
developed by the appraisal
company
R&D personnel of the Company
Number of R&D personnel
(unit: person)
Proportion of R&D personnel 30.30% 27.60% 2.70%
Educational levels of R&D personnel
Bachelor’s degree 173 176 -1.70%
Master’s degree 5 4 25.00%
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Associate’s degree 87 99 -12.10%
Vocational degree 9 7 28.60%
Age of R&D personnel
Under 30 67 76 -11.80%
Over 50 18 21 -14.30%
R&D investment of the Company
R&D investment amount
(yuan)
Proportion of R&D
investment to operating 4.85% 6.05% -1.20%
revenue
Amount of capitalized R&D
investment (yuan)
Proportion of capitalized
R&D investment to R&D 0.00% 0.00% 0.00%
investment
Causes and impacts of major changes in the composition of R&D personnel in the Company
□Applicable ?Not applicable
Reasons for significant changes in the proportion of total R&D investment to operating revenue compared with the previous year
□Applicable ?Not applicable
Reasons for the significant change of capitalization rate of R&D investment and an explanation of its reasonability
□Applicable ?Not applicable
Unit: yuan
Year-on-year increase or
Item 2022 2021
decrease
Subtotal of cash inflow from
operating activities
Subtotal of cash outflow from
operating activities
Net cash flow from operating
-30,726,510.39 -61,717,528.76 50.21%
activities
Subtotal of cash inflow from
investment activities
Subtotal of cash outflows
from investment activities
Net amount of cash flow from
investment activities
Subtotal of cash inflows from
financing activities
Subtotal of cash outflows
from financing activities
Net cash flow from financing
-3,778,296.79 101,591,081.79 -103.72%
activities
Net increase in cash and cash
-16,074,329.47 10,396,323.99 -254.62%
equivalents
Description of the main influencing factors of major year-on-year changes in relevant data
?Applicable □Not applicable
The net cash flow from operating activities increased year on year, mainly due to strengthening recovery of accounts
receivable and clearance of inventory debts, and strictly controlling various costs and expenses.
Cash inflow from investment activities increased year on year, mainly due to the sale of trading financial assets that
were purchased in the previous period and sold in the current period.
Cash outflow from investment activities decreased year on year, mainly due to the non-purchase of trading financial
assets in the current period.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Net cash flow from investment activities increased year on year, mainly due to the sale of trading financial assets
that were purchased in the previous period and sold in the current period.
Cash outflow from fund-raising activities increased year on year, mainly due to the increase in the repayment of
entrusted loans and bank borrowings due in the current period compared with the same period of the previous year.
Net cash flow from fund-raising activities decreased year on year, mainly due to the smaller fund-raising scale in
the current period.
The net increase in cash and cash equivalents decreased year on year, mainly due to the obvious decrease in the
scale of fund raising compared with the same period of the previous year.
Explain the reasons for the significant difference between the net cash flow generated from the Company's operating activities during
the reporting period and the net profit of the current year
□Applicable ?Not applicable
V. Analysis of non-main business
?Applicable □Not applicable
Unit: yuan
Proportion to total
Amount Reasons Is it sustainable
profits
Inventory depreciation
Asset impairment loss -8,379,473.73 29.11% loss and long-term No
equity investment loss
Provision of expected
credit losses for
accounts receivable,
other receivables and
Credit impairment loss -10,854,068.21 37.71% No
bills receivable
according to the new
financial instrument
standards
VI. Analysis of assets and liabilities
Unit: yuan
By the end of 2022 Early 2022 Increase or
Description of
Proportion to Proportion to decrease in
Amount Amount major changes
total assets total assets proportion
Monetary fund 173,863,825.35 19.50% 188,665,530.37 18.99% 0.51%
Accounts
receivable
Contract assets 0.00% 0.00% 0.00%
Inventories 166,440,238.56 18.67% 186,531,565.70 18.77% -0.10%
Investment real
estate
Long-term
equity 10,422,321.80 1.17% 10,422,193.15 1.05% 0.12%
investment
Fixed assets 97,917,714.15 10.98% 117,801,156.71 11.86% -0.88%
Construction in
progress
Right-of-use
assets
Short-term loan 112,836,727.77 12.66% 199,000,000.00 20.03% -7.37%
Contract
liabilities
Long-term
borrowings
increased at the
Long-term loan 105,800,000.00 11.87% 0.00 0.00% 11.87%
end of the
reporting
period
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Lease liabilities 0.00% 0.00% 0.00%
Overseas assets account for a high proportion
□Applicable ?Not applicable
?Applicable □Not applicable
Unit: yuan
Profits and
losses from Changes in
Impairment Purchase Sales
changes in cumulative
Opening accrued in amount in amount in Other Closing
Item fair value fair value
amount the current the current the current changes amount
in the included in
period period period
current equity
period
Financial assets
financial
assets
(excluding 0.00
derivative
financial
assets)
equity
instrument 741,953.00 741,953.00
investment
s
Subtotal of
financial 741,953.00
assets
Receivable 40,852,223. 30,668,999.
s financing 88 36
Total of the
above
items
Financial
liabilities
Other changes
Whether there were any significant changes in the measurement attributes of the Company's main assets during the reporting period
□Yes ?No
Assets with restricted ownership or use rights
(1) Details
Item Ending book value Limit reason
Other monetary funds 2,700,000.00 Funds frozen by banks due to litigation
Other monetary funds 6,779,083.96 Bond cash deposit
Fixed assets 24,947,499.64 Real estate and land mortgage loans
Intangible assets 1,568,556.10 Real estate and land mortgage loans
Total 35,995,139.70 --
(2) Other notes
In addition to the above-mentioned assets with restricted ownership or use rights, the Company pledged its equity
interests in its subsidiaries, namely 40% equity interest in Nanjing Putian Telege Intelligent Building Ltd. (4.8
million yuan), 96.99% equity interest in Nanjing Southern Telecom Co., Ltd. (33.17 million yuan), 50.7% equity
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
interest in Nanjing Putian Changle Communication Equipment Co., Ltd. (5.07 million yuan), 78% equity interest
in Nanjing Putian Network Co., Ltd. (7.8 million yuan), and 100% equity interest in Nanjing Nanman Electrical
Co., Ltd. (41.14 million yuan) to the parent company of the Company for loans granted by the bank entrusted by
the parent company. The Company registered the pledges of its equity interests in Jiangning District, Nanjing High-
tech Industrial Development Zone, Yuhuatai District and Qinhuai Administration for Market Regulation of Nanjing
respectively. The transfer of the above-mentioned equity interests in subsidiaries is restricted until the pledges are
released.
VII. Analysis of investment status
?Applicable □Not applicable
Investment amount in the reporting Investment amount in the same period of
Amplitude of variation
period (yuan) the previous year (yuan)
□Applicable ?Not applicable
□Applicable ?Not applicable
(1) Securities investment
□Applicable ?Not applicable
There was no securities investment during the reporting period.
(2) Derivatives investment
□Applicable ?Not applicable
There was no derivative investment during the reporting period.
□Applicable ?Not applicable
There was no use of the raised funds during the reporting period.
VIII. Sale of major assets and equity
□Applicable ?Not applicable
The Company did not sell any major assets during the reporting period.
□Applicable ?Not applicable
IX. Analysis of the major companies controlled by the Company and companies in which the
Company holds an equity stake
?Applicable □Not applicable
Major subsidiaries, and companies in which the Company holds an equity stake and that contribute more than 10% to the Company's
net profit
Unit: yuan
Company Type of Main Registered Operating Operating
Total assets Net assets Net profit
name company business capital revenue profit
Developme
Nanjing
nt,
Putian
production
Telege 20 million 256,387,57 105,394,84 368,838,45 30,164,822. 28,193,877.
Subsidiary and sales of
Intelligent yuan 9.00 2.00 2.07 49 68
integrated
Building
cabling and
Ltd.
intelligent
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
building
products
Multimedia
Nanjing
communica 34.2
Southern 246,673,51 103,703,33 305,267,62 13,608,857. 7,692,746.0
Subsidiary tion and million
Telecom 4.58 5.03 2.93 20 2
application yuan
Co., Ltd.
solutions
Manufactur
ing and
Nanjing sales of
Nanman industrial 162,567,83 52,583,045. 91,087,208.
Subsidiary million 549,015.66 194,443.41
Electrical intelligent 6.07 91 27
yuan
Co., Ltd. power
distribution
products
Research
and
developme
nt,
production
Nanjing
and sales of
Putian
solar
Datang
energy 10 million 43,710,749. 24,135,485. 26,543,946.
Informatio Subsidiary 116,167.59 120,525.84
controllers, yuan 24 30 45
n
and
Electronics
production
Co., Ltd.
and
processing
of
electronic
products
Manufactur
ing and
sales of
outdoor
cabling
products,
cable
Nanjing distribution
Putian equipment,
Changle outdoor - -
Communic Subsidiary and 10,181,218. 10,198,783.
yuan 93 941,903.93 6
ation machine 13 94
Equipment room
Co., Ltd. network
chassis
(cabinet)
equipment,
communica
tion
electronic
products
Research
and
developme
nt,
production
Nanjing and sales of
Putian software 10 million 17,027,327. 15,938,841. - -
Subsidiary 0.00
Network for yuan 29 04 176,144.72 176,144.72
Co., Ltd. communica
tion,
network
and
electronic
equipment
Chongqing Subsidiary Informatio 50 million 2,012,751.7 2,012,751.7 464,601.75 -18,185.53 -18,185.53
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Puhua n system yuan 8 8
Informatio integration
n services,
Technology manufactur
Co., Ltd. ing of
computer
software
and
hardware
and
peripheral
equipment,
cloud
computing
equipment,
communica
tion
equipment
and
Internet
equipment,
big data
services,
software
developme
nt
Acquisition and disposal of subsidiaries during the reporting period
?Applicable □Not applicable
Ways of acquiring and disposing Impact on overall production, operation
Company name
subsidiaries during the reporting period and performance
Putian Telecommunications (H.K.) Co.,
Liquidation and closure No significant impact
Ltd.
Nanjing Putian Telecommunications
Bankruptcy and liquidation No significant impact
Technology Co., Ltd.
Information of major companies controlled by the Company and companies in which the Company holds an equity stake
X. Structured entities controlled by the Company
□Applicable ?Not applicable
XI. Prospects for the future development of the Company
The year 2023 marks the beginning of the comprehensive implement of the guiding principles of the 20th National
Congress of the Communist Party of China. It is an important year to connect the preceding with the following in
the implementation of the 14th Five-Year Plan, and a crucial year for Nanjing Putian to fully integrate into CETC
Glarun. Faced with new historical opportunities and challenges, the Company will further unite and strengthen its
confidence, take Party building as the guide, and transform the guiding principles of the 20th National Congress of
the Communist Party of China into a powerful driving force for its growth and practical work; It will also follow its
strategic planning to integrate and focus on four major areas: communication infrastructure, audio and video system
integration, intelligent electrical products, and smart lighting. The Company will actively expand into three types
of markets that support CETC’s upstream and downstream industries, server major central enterprises. To achieve
the goal of improving operational quality, the Company will strive to promote all initiatives and create a new era of
its high-quality development.
Key work of the Company in the new year:
customers, keep a foothold in the markets for its advantageous products such as communication infrastructure,
audio-visual system integration, intelligent electrical products, and smart lighting. The Company will advocate the
concept of grand markets, coordinate internal and external resources, deeply explore customer needs, enhance
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
customer loyalty, and improve its comprehensive market competitiveness. Regarding communication infrastructure
products, firstly the Company aims to establish a nationwide unified sales system with market-oriented, systematic
and collaborative features. It will strengthen its marketing capability, consolidate its position in the civilian market,
and seize opportunities to rapidly expand into the military market. Secondly, the Company will continue to expand
its share of the civilian market by developing in the fields of finance, civil aviation airports, and healthcare, while
breaking through the bottleneck of the high-end market. The Company will also actively seek cooperation with units
within the Group, and participate more in integrated projects for military information construction and the research
and development of supporting connectors for military products. In the field of audio and video system integration,
the Company will continue to implement its strategy of "product distribution + direct orders from projects", while
increasing its efforts to develop key customers such as central enterprises, and those in the finance industry and
other industries. Additionally, it will strive to increase the proportion of direct orders and self-developed products.
In terms of intelligent electrical products, the Company will establish a well-rounded channel sales system,
vigorously promote the marketing of intelligent power distribution products and solutions, and accelerate the
marketing of military products, represented by military connectors. With respect to intelligent lighting products, the
Company will explore multiple channels to expand the application scenarios of solar controllers and provide
customers with customized services. For grid-powered products, it will adopt a distributor mode and strengthen its
presence in markets serving government agencies and telecom operators.
The Company will optimize the industrial structure, expand the existing business, strengthen business synergy with
CETC, and foster multiple business growth points; Additionally, it will cultivate new economic growth points to
enhance its core competitiveness.
development.
Adhering to the innovation-driven strategy, the Company will strengthen the core position of scientific and
technological innovation to promote its transformation and upgrading; It will further strengthen the scientific
validity of its new product proposals, improve the success rate of new product development, and reduce risks and
costs.
In terms of operation and management, the Company will follow its strategic planning to continuously optimize the
industrial structure, improve economic efficiency, invigorate assets, improve operational quality, optimize
personnel structure, and build a talent pool. It will benchmark against advanced enterprises and improve its
management in an all-round way. Through deepening reforms, accelerating transformation and upgrading, the
Company will promote its high-quality development.
Risks that the Company may face during its development:
The Company is mainly engaged in the manufacture and sales of communications products, and its customers
include several major telecom operators in China. The development and adjustment of operators' network
construction cycle and investment plans have a significant impact on the Company's operation and bring cyclical
risks to the industry.
Countermeasures: The Company will further integrate high-quality resources, accelerate industrial optimization and
upgrading, actively expand markets and improve industrial profitability.
The rapid development of technology and product upgrades in the telecommunications industry necessitates that
the Company keeps up with the ever-changing market demands and remains relevant in the technological evolution.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Failure to do so, or failure to develop products that meet market demands, could have a negative impact on the
Company’s operations.
Countermeasures: The Company will actively monitor industry trends in technology development and adopt a
market-oriented approach to technology development and introduction. It places great importance on the
organization, planning, and management of product development, expands new product projects, and strives to
maintain its technological leadership in the industry.
The industry in which the Company operates is characterized by fierce competition among a large number of players.
The Company faces intense competition due to the implementation of centralized procurement policies by its
customers, including telecommunications operators. Despite having established a competitive advantage in areas
such as brand recognition, technology, quality, and marketing through its long-term business development efforts,
failure to adapt to future market changes may cause the Company to lose its current advantage in the highly
competitive market.
Countermeasures: The Company will continue to leverage its existing advantages to consolidate its position in
traditional markets while actively expanding into specialized networks and industry-specific markets. To achieve
this, the Company will accelerate its industrial transformation and upgrading efforts, and cultivate strategic
emerging industries. The Company will also continuously strengthen its cost control, and enhance its production
and R&D capabilities to promote the rapid development of new products. Furthermore, the Company will keep a
close eye on market trends, grasp market information, adjust sales policies in a timely manner, and maintain its
competitive edge in the market.
The Company's products are used in projects such as operators’ network construction and subway construction. Due
to factors such as project construction period and lengthy approval processes, the sales payment period is prolonged,
resulting in significant cash flow pressure.
Countermeasures: The Company adheres to budget management for funds, ensuring a dynamic balance between
cash payments and collections. The Company classifies and collects long-term accounts receivables, while
increasing assessment efforts, implementing reward and punishment measures, urging timely recovery of payments,
strengthening inventory management, and enhancing inventory liquidity. If necessary, the Company may obtain
some working capital financing from financial institutions.
XII. Reception of research, communication, interviews and other activities during the reporting
period
□Applicable ?Not applicable
During the reporting period, there were no activities such as reception of research, communication and interviews.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Section IV Corporate Governance
I. Overview of corporate governance
In strict accordance with the requirements of the Company Law, Securities Law, Code of Corporate Governance
for Listed Companies, Listing Rules of Shenzhen Stock Exchange and other relevant laws and regulations, the
Company has built a "three organizations and one team" governance system composed of the Shareholders' General
Meeting, the Board of Directors, the Board of Supervisors and the management team, forming a governance
structure with clearly-defined rights and responsibilities, separate functions and coordinated operation. The
Company has improved the internal control system, strengthened internal and external supervision, and enhanced
standardized operation. During the reporting period, the Company adhered to the combination of Party organization
construction and corporate governance, operated according to law, earnestly safeguarded the legitimate rights and
interests of minority shareholders, and promoted its sustained and healthy development.
The Company has developed the Articles of Association in strict accordance with the Company Law, Guidelines
for Articles of Association of Listed Companies and other laws and regulations to ensure that all shareholders enjoy
equal rights and assume corresponding obligations according to their shares. The convening, holding and voting of
shareholders' meetings are conducted in accordance with the laws and regulations, and internet voting mode is
allowed for all shareholders to ensure that all shareholders have the right to know and make decisions on important
matters. The decision-making procedures for related party transactions strictly comply with the laws and regulations
and the Articles of Association of the Company, and there are no cases of damage to the interests of the Company
and unrelated shareholders.
The Company elects directors in strict accordance with the selection procedures stipulated in laws and regulations
and the Articles of Association. There are 8 members of the Board of Directors, including 3 independent directors.
The number and composition of the Board of Directors comply with laws and regulations. The Board of Directors,
independent directors and professional committees of the Board of Directors shall exercise their functions and
powers in accordance with laws and regulations and the Articles of Association of the Company, and safeguard the
legitimate rights and interests of the Company and all shareholders. All directors abide by laws and regulations and
the relevant provisions of the Articles of Association, perform their duties diligently and cautiously, attend board
meetings seriously, and give their opinions on matters discussed to ensure the efficient operation and scientific
decision-making of the Board of Directors. The convening and holding of board meetings complies with laws and
regulations.
The Company elects supervisors in strict accordance with the selection procedures stipulated in laws and regulations
and the Articles of Association. There are 3 members of the Board of Supervisors, including 1 employee supervisor.
The number and composition of the Board of Supervisors comply with laws and regulations. The Board of
Supervisors operates independently, conscientiously performs its duties, inspects the Company's finance status
according to laws, supervises the legal compliance of directors and senior executives in performing their duties,
exercises the functions and powers stipulated in the Articles of Association, and safeguards the legitimate rights and
interests of the Company and shareholders.
The Company employs senior executives in strict accordance with legal procedures and the Articles of Association
of the Company. There are no cases where controlling shareholders, actual controllers and their related parties
interfere with the normal selection procedures of senior executives and directly appoint or dismiss senior executives
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
without the approval of the Shareholders' General Meeting and the Board of Directors. The Company has established
a mechanism linking remuneration with Company performance and individual performance, and takes the
performance evaluation of senior executives as an important basis for remuneration and other incentives of senior
executives.
The controlling shareholder of the Company exercises shareholders' rights and fulfills shareholders' obligations
according to laws, and there are no cases where the controlling shareholder and actual controller leverage their
control rights to damage the legitimate rights and interests of the Company and other shareholders. The nomination
or recommendation of candidates for directors and supervisors by controlling shareholder shall comply with the
requirements and procedures stipulated by laws and regulations and the Articles of Association of the Company.
Major decisions of the Company are made by the Shareholders' General Meeting and the Board of Directors
according to laws. The Company is independent of the controlling shareholder and actual controller in terms of
personnel, assets, finance, organizations and businesses. They conduct accounting independently, and bear liability
and risks independently. For related party transactions, decision-making procedures and information disclosure
obligations are strictly performed in accordance with relevant regulations. The Company does not provide guarantee
for the controlling shareholder and its affiliated enterprises. The controlling shareholder does not occupy the
Company's funds for non-operating purposes.
The Company respects the legitimate rights of banks and other creditors, employees, customers, suppliers,
communities and other stakeholders. While maintaining its development, striving to improve business performance
and protecting the interests of shareholders, the Company actively fulfills its social responsibilities, conducts
effective exchanges and cooperation with stakeholders to jointly promote the sustained and steady development of
the Company and the industry.
In strict accordance with laws and regulations, self-discipline rules and the Articles of Association, the Company
conscientiously fulfills its information disclosure obligations, continuously strengthens the standardization of
information disclosure, conducts investor exchanges in accordance with regulations, fully protects shareholders'
right to be informed, ensures the transparency of information disclosure, and ensures that all shareholders of the
Company can obtain information with equal opportunities.
Is there any significant difference between the actual situation of corporate governance and the laws, administrative regulations and
the regulations on the governance of listed companies issued by China Securities Regulatory Commission
□Yes ?No
There is no significant difference between the actual situation of corporate governance and the laws, administrative regulations and the
regulations on the governance of listed companies issued by China Securities Regulatory Commission.
controller in terms of assets, personnel, finance, organizations and business
The Company is independent of and completely separated from the controlling shareholder, actual controller and
other related parties in terms of assets, personnel, finance, organizations and business.
The assets owned by the Company are independent and complete, with clear established ownership, and are not
occupied or controlled by any directors, supervisors, senior executives, controlling shareholder, actual controller
and their related parties.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
The Company has an independent labor and personnel system and an independent workforce; Senior executives are
appointed in accordance with regulations, and do not hold other administrative positions except directors and
supervisors in the controlling shareholder or enterprises controlled by it.
The Company has an independent financial department, has established an independent financial accounting system
and developed financial accounting rules, and developed financial management rules for its branches and
subsidiaries. It can make financial decisions independently, without the interference of the controlling shareholder
in the use of the Company’s funds.
The Company has established an independent and sound corporate governance structure and internal operation
management organizations. The Board of Directors, the Board of Supervisors and other internal organizations
operate independently, and there is no mixed operation with the controlling shareholder.
The Company has complete business systems including procurement, production, sales and R&D systems. It can
make independent decisions and operate independently, and does not need to rely on shareholders and other related
parties for production and operation.
III. Horizontal competition
□Applicable ?Not applicable
held during the reporting period
Investor
Session Type Date of meeting Date of disclosure Resolution
participation ratio
The following
proposals were
reviewed and
approved at the
meeting:
The first election of Mr. Sun
extraordinary Extraordinary Xigang as a
general meeting of general meeting of 54.25% February 14, 2022 February 15, 2022 director of the
shareholders in shareholders seventh Board of
Company;
amending the
Articles of
Association of the
Company
The following
proposals were
reviewed and
approved at the
meeting:
the Company’s
Board of Directors
general meeting of meeting of 54.25% May 20, 2022 May 21, 2022
for 2021;
shareholders shareholders
the Company’s
Board of
Supervisor for
annual final
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
financial accounts
report for 2021;
profit distribution
plan for 2021;
the Company for
expected routine
related party
transactions in
The following
proposals were
reviewed and
approved at the
meeting:
changing
accounting firm;
amending the
Articles of
Association of the
Company;
The second 3. Proposal on the
extraordinary Extraordinary election of non-
general meeting of general meeting of 54.36% October 18, 2022 October 19, 2022 independent
shareholders in shareholders directors of the
Directors;
Election of
Independent
Directors of the
Eighth Board of
Directors;
election of non-
employee
supervisors of the
eighth Board of
Supervisors
The following
proposals were
reviewed and
approved at the
meeting:
amending the
Articles of
Association of the
The third Company;
extraordinary Extraordinary
December 15, December 16,
general meeting of general meeting of 54.36% 2. Proposal on
shareholders in shareholders amending the
of Procedure of the
Board of
Directors;
amending the
Company’s Rules
of Procedure of the
Board of
Supervisors
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
general meeting of shareholders
□Applicable ?Not applicable
V. Information on directors, supervisors and senior executives
Numb
er of Numb Numb Numb
shares er of er of er of Reaso
Other
held at shares shares shares ns for
increas
the increas reduce held at the
Servic Term Term es and
Positio Gende beginn ed in d in the end increas
Name e Age starts expires reducti
n r ing of the the of the e or
status on on ons
the current current current decrea
(shares
current period period period se of
)
period (shares (Share (shares shares
(shares ) s) )
)
Direct
or,
Li Octobe
Chair In
Langpi Male 58 r 18, 0 0 0 0 0
man of service
ng 2022
the
Board
Sun Februa
Direct In
Xigan Male 50 ry 14, 0 0 0 0 0
or service
g 2022
Sun Vice Octobe
In
Xigan Chair Male 50 r 18, 0 0 0 0 0
service
g man 2022
Shen Octobe
Direct In
Xiaobi Male 44 r 18, 0 0 0 0 0
or service
ng 2022
Shi Octobe
Direct In
Jiando Male 49 r 18, 0 0 0 0 0
or service
ng 2022
Wang Octobe
Direct In
Xingy Male 44 r 18, 0 0 0 0 0
or service
u 2022
Indepe
Song Octobe
ndent In
Tieche Male 55 r 18, 0 0 0 0 0
directo service
ng 2022
r
Indepe
Octobe
Gao ndent In Femal
Jing directo service e
r
Indepe
Octobe
Huang ndent In
Male 42 r 18, 0 0 0 0 0
Linkui directo service
r
Superv
isor,
Chair
man of Octobe
Mei In
the Male 40 r 18, 0 0 0 0 0
Lin service
Board 2022
of
Superv
isors
Octobe
Superv In
He Hui Male 37 r 18, 0 0 0 0 0
isor service
Qiu Superv In Femal August
Huizhe isor service e 23,
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
n 2017
Execut
ive
Deput
Jia Octobe
y In Femal
Haowe 42 r 18, 0 0 0 0 0
Genera service e
n 2022
l
Manag
er
Deput
y
Liao Octobe
Genera In
Rongc Male 48 r 18, 0 0 0 0 0
l service
hao 2022
Manag
er
Liao Chief Octobe
In
Rongc Accou Male 48 r 18, 0 0 0 0 0
service
hao ntant 2022
Deput
y
Octobe
Genera In Femal
Li Jing 47 r 18, 0 0 0 0 0
l service e
Manag
er
Secret
ary of
the August
In Femal
Li Jing Board 47 23, 0 0 0 0 0
service e
of 2017
Direct
ors
Genera
Fu Octobe
l In
Guoka Male 32 r 18, 0 0 0 0 0
Couns service
i 2022
el
Chair
Sun Februa Octobe
man Not in
Xigan Male 50 ry 14, r 18, 0 0 0 0 0
(forme service
g 2022 2022
r)
Wang Januar Octobe
Direct Not in
Wenku Male 48 y 21, r 18, 0 0 0 0 0
or service
i 2019 2022
Wang Vice April Octobe
Not in
Wenku Chair Male 48 19, r 18, 0 0 0 0 0
service
i man 2019 2022
August Octobe
Li Direct Not in
Male 52 27, r 18, 0 0 0 0 0
Tong or service
August Octobe
Liu Direct Not in Femal
Yun or service e
August Octobe
Qin Direct Not in
Male 54 23, r 18, 0 0 0 0 0
Zhen or service
Wang August Octobe
Direct Not in Femal
Jinfen 52 23, r 18, 0 0 0 0 0
or service e
g 2017 2022
Indepe
August Octobe
Tang ndent Not in Femal
Fuxin directo service e
r
Indepe
August Octobe
Xie ndent Not in
Male 59 23, r 18, 0 0 0 0 0
Manlin directo service
r
Du Indepe Not in Femal 54 August Octobe 0 0 0 0 0
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Xiaoro ndent service e 23, r 18,
ng directo 2017 2022
r
August Octobe
Lv Superv Not in
Male 51 27, r 18, 0 0 0 0 0
Dong isor service
Chair
man of
the August Octobe
Lv Not in
Board Male 51 28, r 18, 0 0 0 0 0
Dong service
of 2019 2022
Superv
isors
August Octobe
Wei Superv Not in Femal
Jie isor service e
Genera
Wang Januar Octobe
l Not in
Wenku Male 48 y 4, r 18, 0 0 0 0 0
Manag service
i 2019 2022
er
Deput
y
August Octobe
Qin Genera Not in
Male 54 26, r 18, 0 0 0 0 0
Zhen l service
Manag
er
Deput
y
Jia June Octobe
Genera Not in Femal
Haowe 42 29, r 18, 0 0 0 0 0
l service e
n 2018 2022
Manag
er
Deput
y
May Octobe
Genera Not in
Lei Xu Male 54 29, r 18, 0 0 0 0 0
l service
Manag
er
Wang Chief August Octobe
Not in
Huaili Accou Male 55 29, r 18, 0 0 0 0 0
service
n ntant 2019 2022
Genera
Liu April Octobe
l Not in Femal
Xiaod 51 20, r 18, 0 0 0 0 0
Couns service e
ong 2018 2022
el
Total -- -- -- -- -- -- 0 0 0 0 0 --
Was there resignation of any directors and supervisors or dismissal of any senior executives during the reporting period?
□Yes ?No
Changes of directors, supervisors and senior executives of the Company
?Applicable □Not applicable
Name Position Type Date Reason
Elected at a general
meeting of
Director, Chairman of shareholders as a
Li Langping Elected October 18, 2022
the Board director and elected by
the Board of Directors
as Chairman
Elected as a director by
Sun Xigang Director Elected February 14, 2022 a general meeting of
shareholders
Elected as Chairman
Sun Xigang Vice Chairman Elected October 18, 2022 by the Board of
Directors
Shen Xiaobing Director Elected October 18, 2022 Elected as a director by
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
a general meeting of
shareholders
Elected as a director by
Shi Jiandong Director Elected October 18, 2022 a general meeting of
shareholders
Elected as a director by
Wang Xingyu Director Elected October 18, 2022 a general meeting of
shareholders
Elected as an
independent director at
Song Tiecheng Independent director Elected October 18, 2022
a general meeting of
shareholders
Elected as an
independent director at
Gao Jing Independent director Elected October 18, 2022
a general meeting of
shareholders
Elected as an
independent director at
Huang Linkui Independent director Elected October 18, 2022
a general meeting of
shareholders
Elected as a supervisor
at a general meeting of
Supervisor, Chairman shareholders and
Mei Lin of the Board of Elected October 18, 2022 elected by the Board of
Supervisors Supervisors as
Chairman of the Board
of Supervisors
Elected as a supervisor
He Hui Supervisor Elected October 18, 2022 at a general meeting of
shareholders
Elected as a supervisor
Qiu Huizhen Supervisor Elected August 23, 2017 at a general meeting of
shareholders
Appointed by the
Executive Deputy Board of Directors as
Jia Haowen Appointed October 18, 2022
General Manager Executive Deputy
General Manager
Appointed by the
Deputy General Board of Directors as
Liao Rongchao Appointed October 18, 2022
Manager Deputy General
Manager
Appointed by the
Liao Rongchao Chief Accountant Appointed October 18, 2022 Board of Directors as
Chief Accountant
Appointed by the
Deputy General Board of Directors as
Li Jing Appointed October 18, 2022
Manager Deputy General
Manager
Appointed by the
Secretary of the Board Board of Directors as
Li Jing Appointed August 23, 2017
of Directors Secretary of the Board
of Directors
Appointed by the
Fu Guokai General Counsel Appointed October 18, 2022 Board of Directors as
General Counsel
Left office upon the
Sun Xigang Chairman of the Board October 18, 2022
expiry of the term
Director, Vice Left office upon the
Wang Wenkui October 18, 2022
Chairman expiry of the term
Left office upon the
Li Tong Director October 18, 2022
expiry of the term
Left office upon the
Liu Yun Director October 18, 2022
expiry of the term
Left office upon the
Qin Zhen Director October 18, 2022
expiry of the term
Wang Jinfeng Director Left office upon the October 18, 2022
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
expiry of the term
Left office upon the
Tang Fuxin Independent director October 18, 2022
expiry of the term
Left office upon the
Xie Manlin Independent director October 18, 2022
expiry of the term
Left office upon the
Du Xiaorong Independent director October 18, 2022
expiry of the term
Supervisor, Chairman
Left office upon the
Lv Dong of the Board of October 18, 2022
expiry of the term
Supervisors
Left office upon the
Wei Jie Supervisor October 18, 2022
expiry of the term
Left office upon the
Wang Wenkui General Manager October 18, 2022
expiry of the term
Deputy General Left office upon the
Qin Zhen October 18, 2022
Manager expiry of the term
Deputy General Left office upon the
Jia Haowen October 18, 2022
Manager expiry of the term
Deputy General Left office upon the
Lei Xu October 18, 2022
Manager expiry of the term
Left office upon the
Wang Huailin Chief Accountant October 18, 2022
expiry of the term
Left office upon the
Liu Xiaodong General Counsel October 18, 2022
expiry of the term
Professional background, main work experience and main responsibilities of current directors, supervisors and senior executives of the
Company
Directors:
Li Langping, male, born in 1964, holds a bachelor’s degree in engineering and is a senior engineer at research fellow
level. He started his career in 1985 and worked in various positions at the 43rd Research Institute of CETC, including
technician, assistant engineer, and engineer, Assistant Deputy Director and Deputy Director at the 5th Office, Vice
President, President, and Deputy Secretary of the Party Committee of the 43rd Research Institute of CETC, as also
served as director, General Manager, and Deputy Secretary of the Party Committee at CETC Microelectronics
Technology Co., Ltd. He is currently serving as the director, General Manager, and Deputy Secretary of the Party
Committee of CETC Glarun Group Co., Ltd., Chairman and Secretary of the Party Committee of Glarun Technology
Co., Ltd., and Chairman of Nanjing Putian Telecommunications Co., Ltd.
Sun Xigang, male, born in 1972, holds an MBA degree and is a senior engineer at research fellow level. He started
his career in 1994 and worked in various positions in the 28th Research Institute of CETC, including technician and
assistant engineer at the 1st Research Department, project manager, deputy director, director and Party branch
secretary at the Science and Technology Department, Director of the Planning Management Department and Party
branch secretary of the Science and Technology Department, Special Assistant to the President and Director of the
Capital Construction Management Department. He is currently serving as Deputy General Manager of CETC LES
Information System Co., Ltd., and Secretary of the Party Committee and Vice Chairman of Nanjing Putian
Telecommunications Co., Ltd.
Shen Xiaobing, male, born in 1978, holds a bachelor’s degree and is an engineer. He started his career in 1997 and
worked in various positions, including technician and assistant engineer at 121st Office of the 12th Department of
the 14th Research Institute of CETC, General Manager of Nanjing Lopu Technology Co., Ltd. and General Manager
of Nanjing Lopu Co., Ltd. He is currently serving as Deputy General Manager of CETC Glarun Group Co., Ltd.,
Chairman of Nanjing Lopu Technology Co., Ltd., Chairman of Nanjing Lopu Industrial Co., Ltd., Chairman of
Nanjing Lopu Co., Ltd. and director of Nanjing Putian Telecommunications Co., Ltd.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Shi Jiandong, male, born in 1973, holds a master’s degree in engineering and is a senior engineer at research fellow
level. He started his career in 1996 and worked in various positions in the 14th Research Institute of CETC, including
assistant engineer and engineer at 302nd Office of the 3rd Department, senior engineer at the 402nd Office of the
the Production Office of the Science and Technology Department, Director of the Scientific Research Office of the
Science and Technology Department, Secretary of United Party Branch of the logistics company under the Materials
and Equipment Department, Vice Director of the Materials and Equipment Department (concurrently), and Director
of General Office (concurrently). He is currently serving as Deputy Director of the Science and Technology
Department in the 14th Research Institute of CETC, and a director of Nanjing Putian Telecommunications Co., Ltd.
Wang Xingyu, male, born in 1978, holds a master’s degree in engineering and is a senior engineer. He started his
career in 2000, and served successively as assistant engineer of the Materials and Equipment Department, and Vice
Director of the Materials and Equipment Department in the 14th Research Institute of CETC. He is currently serving
as United Party Branch Secretary and Vice Director of the Materials and Equipment Department of the 14th
Research Institute of CETC, Deputy General Manager of the logistics company under the Materials and Equipment
Department, and a director of Nanjing Putian Telecommunications Co., Ltd.
Song Tiecheng, male, born in 1967, holds a doctor’s degree in engineering. He started his career in 1992, served
successively as teaching assistant, lecturer and associate professor at Southeast University, and is currently a
professor of Southeast University and an independent director of Nanjing Putian Telecommunications Co., Ltd.
Gao Jing, female, born in 1968, holds a bachelor’s degree, and is a senior accountant and a certified public
accountant. She started her career in 1989 and worked in various positions, including accountant and deputy director
at AVIC Jincheng Group Co., Ltd., deputy director of AVIC Jincheng Nanjing Engineering Institute of Aircraft
System, chief project accountant of AVIC Electromechanical Systems Co., Ltd., Chief Risk Control Officer of
Shenzhen Kuang-Chi Cutting-edge Equipment Technology Co., Ltd., CFO of Kuang-Chi Technologies Co., Ltd.,
Director of the Risk Control Department and Secretary of the Board of Directors of Shenzhen Hymson Laser
Intelligent Equipment Co., Ltd. She is currently serving as Financial Director and a director of Shenzhen Hymson
Laser Intelligent Equipment Co., Ltd., a director (concurrently) of Shenzhen Kuang-Chi Advanced Structure
Technologies Co., Ltd., an independent director (concurrently) of Shenzhen Redray Biotechnology Corp., Ltd. and
an independent director of Nanjing Putian Telecommunications Co., Ltd.
Huang Linkui, male, born in 1980, holds a bachelor’s degree. He started his career in 2003 and used to be a partner
of Jiangsu Tonganning Law Firm, and is currently a partner of Grandall (Nanjing) Law Firm and an independent
director of Nanjing Putian Telecommunications Co., Ltd.
Supervisors:
Mei Lin, male, born in 1982, holds a master’s degree in law, and is a first-class legal counsel and a senior engineer.
He started his career in 2007, served successively as assistant engineer, engineer, senior engineer and Director of
Legal Affairs Office of the 14th Research Institute of CETC. He is currently serving as Deputy General Counsel
and Director of Legal Affairs Office of CETC Glarun Group Co., Ltd., a supervisor of Magnichip Co., Ltd.,
Chairman of the Board of Supervisors of Nanjing Glarun-Atten Technology Co., Ltd., and Chairman of the Board
of Supervisors of Nanjing Putian Telecommunications Co., Ltd.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
He Hui, male, born in 1985, holds a master's degree in management and is a senior accountant. He joined the work
in 2012, served successively as assistant accountant and deputy minister of the Finance Department of the 14th
Research Institute of China Electronics Technology Group Corporation, and is currently the deputy minister of the
Finance Department of the 14th Research Institute of China Electronics Technology Group Corporation and a
supervisor of Nanjing Putian Telecommunications Co., Ltd.
Qiu Huizhen, female, born in 1973, holds a bachelor’s degree in economics and is a senior accountant. She started
her career in 1997, served successively as representative of woman's congress and Secretary of the CCYL
Committee of Shaokou Township Government, Wan’an County, Jiangxi Province, cost accountant and CEO of the
Finance Department of Nanjing Putian Telecommunications Co., Ltd., Deputy Director of the Personnel Department,
Deputy Director of the Finance Department and Director of the Finance Department of Nanjing Putian
Telecommunications Co., Ltd., and is currently serving as Director of the Audit Discipline Inspection and Risk
Control Department and an employee supervisor of Nanjing Putian Telecommunications Co., Ltd.
Senior executives:
Jia Haowen, female, born in 1980, holds a bachelor’s degree in management and is a senior human resource manager.
She started her career in 2002, and served successively as administrative management specialist and sales
representative at Shanghai Xinhaoshi Real Estate Co., Ltd.; In Nanjing Putian Telecommunications Co., Ltd., she
served successively as Confidential Secretary, and Secretary of the CEO's Office, Assistant Director of the
Integrated Management Department, Assistant Director, Deputy Director and Director of the Human Resources
Department, Director of the Integrated Management Department (concurrently), Party Branch Secretary of the
Integrated Management Department, Director of the Multimedia Application Industry Department in the HQ
(concurrently), and Assistant General Manager. She is currently serving as Executive Deputy General Manager of
Nanjing Putian Telecommunications Co., Ltd., General Manager of the Communications Division (concurrently)
of Nanjing Putian Telecommunications Co., Ltd., Chairman of Nanjing Southern Telecom Co., Ltd., and General
Manager of Chongqing Puhua Information Technology Co., Ltd.
Liao Rongchao, male, born in 1974, holds a master’s degree in accounting and is a senior accountant. He started his
career in 1997, and served successively as probationary accountant and assistant accountant at 200th Office of the
He is currently serving as Deputy General Manager and Chief Accountant of Nanjing Putian Telecommunications
Co., Ltd.
Li Jing, female, born in 1975, holds a master’s degree in management and is a senior economist. She started her
career in 1996, and served successively as secretarial clerk and customs broker at Nanjing Mennekes Electric Co.,
Ltd., purchaser and employee-employer relation management specialist at Nanjing Putian Computer Industry Co.,
Ltd., investment administrator, assistant and Deputy Director of the Corporate Development Department, Deputy
Director of the Strategic Development Department, Deputy Director of the Comprehensive Management
Department, Deputy Director and Director of the Investment Management Department at Nanjing Putian
Telecommunications Co., Ltd. She is currently serving as Deputy General Manager and Secretary of the Board of
Directors at Nanjing Putian Telege Intelligent Building Ltd., a director of Nanjing Putian Datang Information
Electronics Co., Ltd., a director of Nanjing Putian Network Co., Ltd., and a director of Nanjing Putian Changle
Communication Equipment Co., Ltd.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Fu Guokai, male, born in 1990, holds a master’s degree in management and is an engineer. He started his career in
Institute of CETC, and is currently serving as General Counsel of Nanjing Putian Telecommunications Co., Ltd.
Service in shareholder units
?Applicable □Not applicable
Did he/she receive
remuneration and
Name of Position held in
Name of employee Term starts on Term expires on allowances from
shareholder unit shareholder unit
the shareholder
unit?
Director, General
Manager, and
CETC Glarun
Li Langping Deputy Secretary October 15, 2020 Yes
Group Co., Ltd.
of the Party
Committee
CETC Glarun Deputy General Yes
Shen Xiaobing January 10, 2022
Group Co., Ltd. Manager
CETC Glarun Deputy General Yes
Mei Lin June 3, 2022
Group Co., Ltd. Counsel
Information about
the service in the CETC Glarun Group Co., Ltd. is the controlling shareholder of the Company
shareholder unit
Service in other units
?Applicable □Not applicable
Did he/she receive
Position held in remuneration and
Name of employee Name of other unit Term starts on Term expires on
other unit allowances from
other unit?
Glarun Technology Chairman of the
Li Langping December 3, 2020 No
Co., Ltd. Board
Glarun Technology Secretary of the
Li Langping December 3, 2020 No
Co., Ltd. Party Committee
CETC LES
Deputy General December 13,
Sun Xigang Information Yes
Manager 2021
System Co., Ltd.
Nanjing Lopu
Chairman of the
Shen Xiaobing Technology Co., February 10, 2022 No
Board
Ltd.
Nanjing Lopu Chairman of the
Shen Xiaobing February 10, 2022 No
Industrial Co., Ltd. Board
Nanjing Lopu Co., Chairman of the
Shen Xiaobing February 10, 2022 No
Ltd. Board
Vice Director of
The 14th Research the Science and
Shi Jiandong January 5, 2022 Yes
Institute of CETC Technology
Department
Vice Director of
The 14th Research the Materials and
Wang Xingyu November 2, 2020 Yes
Institute of CETC Equipment
Department
Logistics
Company under
the Materials and
Deputy General
Wang Xingyu Equipment January 10, 2013 No
Manager
Department of the
Institute of CETC
Logistics
Deputy Secretary
Company under
Wang Xingyu of the United Party January 5, 2022 No
the Materials and
Branch
Equipment
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Department of the
Institute of CETC
Southeast
Song Tiecheng Professor April 8, 2005 Yes
University
Shenzhen Hymson
Laser Intelligent
Gao Jing Financial Director January 15, 2019 Yes
Equipment Co.,
Ltd.
Shenzhen Hymson
Laser Intelligent
Gao Jing Director May 6, 2019 Yes
Equipment Co.,
Ltd.
Shenzhen Kuang-
Chi Advanced
Gao Jing Structure Director July 19, 2017 No
Technologies Co.,
Ltd.
Shenzhen Redray
Independent
Gao Jing Biotechnology August 6, 2020 No
director
Corp., Ltd.
Grandall (Nanjing)
Huang Linkui Partner May 9, 2022 Yes
Law Firm
Magnichip Co.,
Mei Lin Supervisor June 15, 2021 No
Ltd.
Nanjing Glarun- Chairman of the
December 10,
Mei Lin Atten Technology Board of No
Co., Ltd. Supervisors
Vice Director of
The 14th Research
He Hui the Finance November 6, 2020 Yes
Institute of CETC
Department
Penalties imposed by securities regulatory authorities in the past three years on the Company's directors, supervisors and se nior
executives serving or leaving office during the reporting period
□Applicable ?Not applicable
Decision-making procedures, basis for determination and actual payment of remuneration for directors, supervisors and senior
executives
The Company did not pay remuneration to its directors and supervisors, the directors and supervisors who held
administrative positions of the Company received remuneration according to their administrative positions.
Independent directors received independent director allowances from the Company, and the allowance standard was
decided by the Shareholders' General Meeting. The remuneration standards and assessment methods of senior
executives were decided by the Board of Directors.
For senior executives, the Company implemented the performance-based annual remuneration system, and
assessed and paid the senior executives according to its production and operation indicators and the completion of
the work undertaken by the senior executives.
Remuneration of directors, supervisors and senior executives of the Company during the reporting period
Unit: RMB 10,000
Did he/she
Total pre-tax receive
remuneration remuneration
Name Position Gender Age Service status
received from from related
the Company parties of the
Company
Director,
Li Langping Chairman of Male 58 In service Yes
the Board
Sun Xigang Director Male 50 In service Yes
Sun Xigang Vice Chairman Male 50 In service Yes
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Shen Xiaobing Director Male 44 In service Yes
Shi Jiandong Director Male 49 In service Yes
Wang Xingyu Director Male 44 In service Yes
Independent
Song Tiecheng Male 55 In service 1.5 No
director
Independent
Gao Jing Female 54 In service 1.5 No
director
Independent
Huang Linkui Male 42 In service 1.5 No
director
Supervisor,
Chairman of
Mei Lin Male 40 In service Yes
the Board of
Supervisors
He Hui Supervisor Male 37 In service Yes
Qiu Huizhen Supervisor Female 49 In service 23.36 No
Executive
Jia Haowen Deputy General Female 42 In service 36.45 No
Manager
Deputy General
Liao Rongchao Manager, Chief Male 48 In service 6.97 No
Accountant
Deputy General
Manager,
Li Jing Secretary of the Female 47 In service 31.4 No
Board of
Directors
General
Fu Guokai Male 32 In service 5.82 No
Counsel
Chairman
Sun Xigang Male 50 Not in service Yes
(former)
Deputy
Wang Wenkui Director Male 48 Not in service No
(former)
Director
Li Tong Male 52 Not in service Yes
(former)
Director
Liu Yun Female 49 Not in service Yes
(former)
Director
Qin Zhen Male 54 Not in service Yes
(former)
Director
Wang Jinfeng Female 52 Not in service Yes
(former)
Independent
Tang Fuxin Director Female 66 Not in service 7.5 No
(former)
Independent
Xie Manlin Director Male 59 Not in service 7.5 No
(former)
Independent
Du Xiaorong Director Female 54 Not in service 7.5 No
(former)
Supervisor
Lv Dong Male 51 Not in service Yes
(former)
Chairman of
the Board of
Lv Dong Male 51 Not in service Yes
Supervisors
(former)
Supervisor
Wei Jie Female 45 Not in service Yes
(former)
General
Wang Wenkui Manager Male 48 Not in service 55.73 No
(former)
Deputy General
Qin Zhen Manager Male 54 Not in service 27.53 No
(former)
Jia Haowen Deputy General Female 42 Not in service No
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Manager
(former)
Deputy General
Lei Xu Manager Male 54 Not in service 28.05 No
(former)
Chief
Wang Huailin Accountant Male 55 Not in service 44.63 No
(former)
General
Liu Xiaodong Counsel Female 51 Not in service 28.71 No
(former)
Total -- -- -- -- 315.65 --
VI. Performance of duties by directors during the reporting period
Session Date of meeting Date of disclosure Resolution
The following proposals were
reviewed and approved at the
meeting:
of Mr. Sun Xigang as a
director of the 7th Board of
Directors of the Company was
January 18, 2022 January 19, 2022 reviewed;
of Directors
the Articles of Association of
the Company was reviewed;
the first extraordinary general
meeting of shareholders in
The proposal on electing the
chairman of the 7th Board of
February 14, 2022 February 15, 2022 Directors of the Company was
of Directors
reviewed and approved at the
meeting.
The proposal on expected
routine related party
March 23, 2022 March 24, 2022 transactions in 2022 was
of Directors
reviewed and approved at the
meeting.
The following proposals were
reviewed and approved at the
meeting:
Company’s Board of Directors
for 2021;
Company’s General Manager
for 2021;
financial accounts report for
April 22, 2022 April 23, 2022 4. The Company's Annual
of Directors
Financial Budget Report for
Distribution Plan for 2021;
Report for 2021 and its
summary;
Asset Impairment in 2021;
Control Evaluation Report for
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Credit Line from Banks;
Assessment Report for CETC
Finance Co., Ltd.;
Accounting Errors in the Early
Period;
the Authorization
Management Rules of the
Board of Directors of Nanjing
Putian Telecommunications
Co., Ltd.;
Annual General Meeting of
Shareholders in 2021
The full report of the first
April 28, 2022 April 29, 2022 quarter of 2022 was reviewed
of Directors
and approved at the meeting.
The following proposals were
reviewed and approved at the
meeting:
August 8, 2022 August 9, 2022
of Directors reviewed;
the 2nd extraordinary general
meeting of shareholders in
The following proposals were
reviewed and approved at the
meeting:
general manager of the
Company for the first half of
implementation report for the
first half of 2022 was
reviewed;
August 19, 2022 August 20, 2022 3. The Company's semi-
of Directors
annual report and summary for
Assessment Report for CETC
Finance Co., Ltd. was
reviewed;
liquidation of Nanjing Putian
Telecommunications
Technology Co., Ltd. was
reviewed.
The following proposals were
reviewed and approved at the
meeting:
the Articles of Association of
the Company was reviewed;
September 28, 2022 September 29, 2022
Board of Directors election of the Board of
Directors and the nomination
of candidates for non-
independent directors was
reviewed;
election of the Board of
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Directors and the nomination
of independent director
candidates was reviewed.
The following proposals were
reviewed and approved at the
meeting:
of the chairman and vice
chairman of the 8th Board of
Directors of the Company was
reviewed;
appointment of the executive
deputy general manager of the
Company was reviewed;
appointment of the deputy
general manager of the
Company was reviewed;
appointment of the chief
accountant of the Company
was reviewed;
appointment of the secretary
of the Board of Directors of
October 18, 2022 October 19, 2022 the Company was reviewed;
of Directors
appointment of the Company's
general counsel was reviewed;
the Articles of Association of
the Company was reviewed;
the Company’s Rules of
Procedure of the Board of
Directors was reviewed;
the detailed working rules of
the Company’s special
committees of the Board of
Directors was reviewed;
special committee members of
the 8th Board of Directors was
reviewed;
the 3rd extraordinary general
meeting of shareholders in
The report for the third quarter
October 28, 2022 October 29, 2022 of 2022 was reviewed and
of Directors
approved at the meeting.
The proposal on the
remuneration plan of the
November 18, 2022 November 19, 2022 Company's senior executives
of Directors
in 2022 was reviewed and
approved at the meeting.
Attendances of directors at board meetings and general meetings of shareholders
Number of Number of Whether
Number of Number of Number of
board attendances Number of there was a
on-site attendances attendances
Name of meetings that at board absences failure to
attendances at board at
director should be meetings via from board attend board
at board meetings by shareholders'
attended communicati meetings meetings in
meetings proxy meetings
during the on means person for
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
reporting two
period consecutive
times
Sun Xigang 10 1 9 0 0 No 3
Wang
Wenkui
Li Tong 8 0 8 0 0 No 0
Liu Yun 8 0 8 0 0 No 0
Qin Zhen 8 0 8 0 0 No 2
Wang
Jinfeng
Tang Fuxin 8 0 8 0 0 No 0
Xie Manlin 8 0 8 0 0 No 0
Du Xiaorong 8 0 8 0 0 No 1
Li Langping 3 1 2 0 0 No 2
Shen
Xiaobing
Shi Jiandong 3 1 2 0 0 No 1
Wang
Xingyu
Song
Tiecheng
Gao Jing 3 1 2 0 0 No 1
Huang
Linkui
Explanation for not attending board meetings in person for two consecutive times
Not applicable
Did any directors raise any objections to the relevant matters of the Company
□Yes ?No
During the reporting period, directors did not raise any objections to the relevant matters of the Company.
Were directors' suggestions for the Company adopted
?Yes □No
Explanation of whether the Company adopted suggestions made by directors
During the reporting period, all directors of the Company worked in strict accordance with the Company Law,
Securities Law, Listing Rules of Shenzhen Stock Exchange, Guidelines of Shenzhen Stock Exchange on
Standardized Operation of Listed Companies, and the Articles of Association of the Company, attended the board
meetings on time, carefully studied various proposals submitted to the Board of Directors according to the actual
situation of the Company and made prudent decisions, supervised and promoted the implementation of resolutions
of the Board of Directors, and safeguarded the legitimate rights and interests of the Company and all shareholders.
VII. Situation of the special committees under the Board of Directors during the reporting
period
Important Details of
Number of
Name of the Date of Content of opinions and Performance matters
Members meetings
committee meeting the meeting suggestions of duties objected (if
held
put forward any)
Review of The 2020
the 2021 financial and
Du financial and accounting
Audit
Xiaorong, accounting statements
Committee April 22,
Tang Fuxin, 1 statements audited by
of the Board 2022
Wang audited by Pan-China
of Directors
Jinfeng Pan-China Certified
Certified Public
Public Accountants
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Accountants LLP were
LLP reviewed and
approved,
and it was
agreed to
submit the
statements to
the Board of
Directors for
deliberation.
The
Review of
Du Company's
Audit the
Xiaorong, report for the
Committee April 28, Company's
Tang Fuxin, 1 first quarter
of the Board 2022 report for the
Wang of 2022 was
of Directors first quarter
Jinfeng reviewed and
of 2022
approved
The proposal
on changing
the audit
institution of
the Company
in 2022 was
reviewed and
approved,
and it was
Review of agreed to
Du the proposal propose to
Audit
Xiaorong, on changing the Board of
Committee
Tang Fuxin, 1 July 28, 2022 the Directors to
of the Board
Wang Company's engage
of Directors
Jinfeng accounting WUYIGE
firm in 2022 Certified
Public
Accountants
LLP as the
financial and
internal
control audit
institution of
the Company
in 2022.
The
Review of
Company's
Du the
Audit semi-annual
Xiaorong, Company's
Committee August 19, report and
Tang Fuxin, 1 semi-annual
of the Board 2022 summary for
Wang report and
of Directors 2022 were
Jinfeng summary for
reviewed and
approved
Gao Jing, Shi
Jiandong, Review of The report
Audit and
Wang the for the third
Risk Control
Xingyu, October 26, Company’s quarter of
Committee 1
Song 2022 report for the 2022 was
of the Board
Tiecheng, third quarter reviewed and
of Directors
Huang of 2022 approved
Linkui
Review of The proposal
Gao Jing, Shi
the proposal on the
Remuneratio Jiandong,
on the remuneration
n and Wang
remuneration plan of the
Evaluation Xingyu, November
Committee Song 16, 2022
Company's senior
of the Board Tiecheng,
senior executives in
of Directors Huang
executives in 2022 was
Linkui
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
approved
VIII. Work of the Board of Supervisors
The Board of Supervisors tried to identify risks of the Company in supervision activities during the reporting period
□Yes ?No
The Board of Supervisors had no objection to the supervision matters during the reporting period.
IX. Employees of the Company
Number of employees in the parent company at the end of the
reporting period (unit: person)
Number of employees in major subsidiaries at the end of the
reporting period (unit: person)
Total number of employees at the end of the reporting period
(unit: person)
Total number of paid employees in the current period (unit:
person)
Number of retired employees who receive payments from the
parent company and major subsidiaries (unit: person)
Areas of expertise
Area of expertise Number of employees with the expertise (unit: person)
Production personnel 239
Sales personnel 277
Technical personnel 274
Financial personnel 29
Administrative personnel 86
Total 905
Education attainment
Education attainment Number of persons
Master’s degree or above 23
Bachelor’s degree 372
Associate’s degree 314
Senior high school and below 196
Total 905
The Company strictly implements the national, provincial and municipal laws and regulations, and standardizes the
distribution and payment of remuneration and benefits. In order to further mobilize the enthusiasm, initiative and
creativity of employees, the Company implements an efficiency-oriented and performance-based remuneration
distribution mechanism, and develops remuneration and performance appraisal methods for different positions
according to the characteristics of different positions. Additionally, the Company provides its employees with five
social insurances, housing provident fund, and enterprise annuity in accordance with relevant national regulations.
According to the Company's development plan and the principle of Party-led talent management, the Company
upholds new development concepts in the new development stage and focuses on talent work deployment in the
new era. The Company places great importance on the development of employees’ capabilities, with particular
emphasis on three aspects: training and education, on-the-job cultivation, and practical experience, and improves
its training system to enhance the quality of its talent pool. The Company also prioritizes the training of innovative
and versatile talents, and strengthens training through a layered and graded approach to build up reserves of talents
for its innovation and transformation.
□Applicable ?Not applicable
X. Profit distribution and conversion of capital provident fund to share capital
Development, implementation or adjustment of profit distribution policies, especially cash dividend policies during the reporting period
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
□Applicable ?Not applicable
During the reporting period, the Company made profits and the profit available to shareholders of the parent company was positive,
but no cash dividend distribution plan was proposed
□Applicable ?Not applicable
Profit distribution and conversion of capital provident fund to share capital during the reporting period
□Applicable ?Not applicable
The Company planed not to distribute cash dividends and bonus shares, or increase its share capital from provident fund.
XI. Implementation of the Company’s equity incentive plan, employee stock ownership plan or
other employee incentive measures
□Applicable ?Not applicable
During the reporting period, the Company had no equity incentive plan, employee stock ownership plan or other employee incentive
measures and implementation of such plans and measures.
XII. Construction and implementation of internal control system during the reporting period
The Company kept strengthening its system construction, constantly promoted the development and improvement
of its internal control system, ensuring legal and compliant operations, and orderly implementation of all work. In
the Company developed and amended rules and regulations such as the Rules of Procedure of Party Committee
Meetings, the Basic Rules of Inspection Work, the Learning Rules of the Central Group of the Party Committee,
the Working Mechanism for Implementing the Guiding Principles of General Secretary Xi Jinping's Important
Speech and Important Instructions, and the Learning Rules of "First Topic". In terms of corporate governance, the
Company amended various rules and regulations, such as the Articles of Association, the Rules of Procedure of the
Board of Directors, the Rules of Procedure of the General Manager's Office Meeting, the Rules of Procedure of the
Board of Supervisors, and the Working Rules of Special Committees of the Board of Directors. In terms of daily
operation and management, the Company developed and amended rules and regulations related to daily production
and operation, covering human resources management, financial asset management, legal affairs management,
investment management, audit, informationization, market, technology, quality and procurement management, so
as to ensure the orderly progress of the Company's work. The rules and regulations include the Measures for the
Management of Middle-level Managers, the Measures for the Management of Economic Contracts, the
Comprehensive Budget Management Rules, the Measures for the Administration of Legal Affairs, the Measures for
the Administration of Equity Investment, the Measures for the Administration of Internal Audit, the Measures for
the Administration of Project Management, the Measures for the Administration of Strategic Planning, the Basic
System of Quality Management, and the Measures for the Administration of Single-source Procurement.
In order to further play the role of rules and regulations in ensuring smooth operation and management, the Company
has set up a Rules and Regulations Review Committee to review the rules and regulations developed and amended
by departments and offices; regularly review the existing rules and regulations, and give suggestions on abolishing,
amending and continuing to use existing rules and regulations; organize the development of the Company's annual
rules and regulations amendment plan; analyze and give suggestions on the problems in the development,
amendment and implementation of rules and regulations; guide divisions and holding companies to establish their
own rules and regulations.
The Company implemented safety standardization and integrated management system of quality, environment and
safety, and prepared a number of documents including safety standardization documents, integrated management
system manuals, and procedure documents. The Company supervised and evaluated the design and implementation
of internal control rules and regulations by carrying out annual internal control self-evaluation, external audit of
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
internal control, inspection and acceptance of comprehensive management system, and carrying out special
inspections from time to time. According to the requirements of the Company's internal control rules and relevant
regulations, internal control has been established in all major aspects and effectively implemented, achieving the
goal of internal control. No major defects in internal control of financial reports and non-financial reports have been
found. To meet needs of operation and business development, the Company will continue to improve the
construction of internal control system, strengthen the enforcement of internal control system to promote the healthy
development of the Company.
□Yes ?No
XIII. Management and control of subsidiaries by the Company during the reporting period
Problems
Integration Settlement Follow-up
Company name Integration plan encountered in Solutions taken
progress progress settlement plan
integration
None Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
XIV. Internal control self-evaluation report or internal control audit report
Date of disclosing full-text internal
April 20, 2023
control evaluation report
Index of the disclosed full-text internal CNINFO (www.cninfo.com.cn), "Internal Control Evaluation Report 2022 of Nanjing
control evaluation report Putian Telecommunications Co., Ltd."
Proportion of the total assets of the unit
included in the evaluation scope to the
total assets in the Company's consolidated
financial statements
Proportion of the operating revenue of the
unit included in the evaluation scope to
the operating revenue in the Company’s
consolidated financial statements
Defect identification criteria
Category Financial reporting Non-financial reports
Laws and regulations: Minor violations
that have been corrected are general
defects, violations that result in
punishment are important defects, and
serious violations that lead to severe
Any of the following circumstances
punishment or criminal liability are major
(including but not limited to the
defects.
circumstances) shall generally be deemed
Operation: Temporary halts in production
as a "major defect" in the internal control
that can be restored within half a day are
of financial reports:
considered as general defects, halts
lasting up to 2 days are considered as
and commit major fraud;
important defects, and halts lasting 3 days
or more are considered as major defects.
reports are corrected due to the discovery
Reputation: When negative news
of significant accounting errors in
circulates within the Company without
Qualitative criteria previous years;
greatly affecting its reputation, it is
considered as a general defect. If negative
misstatement in the current financial
news spreads in a certain area and causes
statements, but the misstatement was not
significant damage to the Company's
found in the internal control process;
reputation, it is considered as an important
defect. When negative news circulates
internal audit institutions is not effective;
throughout the country and causes
Major or important defects that have been
significant damage to the Company's
identified and reported to the
reputation, it is considered as a major
management team have not been rectified
defect.
within a reasonable time limit.
Safety: General defects are those that
cause brief impacts on the health of
employees or citizens that can be restored
to normal within a short period. Important
defects are those that cause the death of an
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
employee or citizen, or require a longer
period of time to recover their health.
Major defects are those that cause the
death of multiple employees or citizens or
result in irreparable damage to their
health.
Environment: Environmental pollution
and damage that are within a controllable
range and do not cause permanent
environmental impact are considered as
general defects. Important defects are
those that cause significant pollution to
the surrounding environment and require
high restoration costs. Major defects are
those that cause permanent pollution or
irreparable damage to the surrounding
environment;
Any of the following circumstances
(including but not limited to the
circumstances) shall generally be deemed
as a "major defect" in the internal control
of non-financial reports:
(1) Serious violation of national laws,
administrative regulations and normative
documents, causing adverse effects;
(2) Any important decisions, important
issues, important personnel appointments
and dismissals, and large sum payments
were not approved through the collective
decision-making process;
(3) Serious loss of management personnel
and technical personnel in key positions;
(4) Important business operations related
to the Company's production and
operation lack institutional controls or
suffer from institutional system failures;
(5) Major/important defects in internal
control are not rectified in time.
Potential errors or omissions of total
profit in financial report: Errors or
omissions that are less than 2% of the total
profit/RMB 500,000 are general defects.
Errors or omissions that are greater than
or equal to 2% of the total profit/RMB
profit/RMB 3 million are important
defects. Errors or omissions that are
greater than or equal to 3% of the total
profit/RMB 3 million are major defects.
Potential errors or omissions of total Potential assets and capital losses: Losses
assets in financial reports: Errors or that are less than RMB 100,000 are
omissions that are less than 1% of the total general defects; Losses that are greater
Quantitative criteria assets/RMB 2 million are general defects. than or equal to RMB 100,000 and less
Errors or omissions that are greater than than RMB 1 million are important
or equal to 1% of the total assets/RMB 2 defects; Losses that are greater than or
million and less than 2% of the total equal to RMB 1 million are major defects.
assets/RMB 100 million are important
defects. Errors or omissions that are
greater than or equal to 2% of the total
assets/RMB 100 million are major
defects.
Potential errors or omissions of operating
revenue in financial reports: Errors or
omissions that are less than 0.5% of the
total operating revenue/RMB 2 million
are general defects. Errors or omissions
that are greater than or equal to 0.5% of
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
the total operating revenue/RMB 2
million and less than 1% of the total
operating revenue/RMB 100 million are
important defects. Errors or omissions
that are greater than or equal to 1% of the
total operating revenue/RMB 100 million
are major defects.
Potential errors or omissions of owners'
equity in financial reports: Errors or
omissions that are less than 0.5% of the
total owners' equity/RMB 1 million are
general defects. Errors or omissions that
are greater than or equal to 0.5% of the
total owners' equity/RMB 1 million and
less than 1% of the total owners'
equity/RMB 5 million are important
defects. Errors or omissions that are
greater than or equal to 1% of the total
owners' equity/RMB 5 million are major
defects.
Number of major defects in financial
reports
Number of major defects in non-financial
reports
Number of important defects in financial
reports
Number of important defects in non-
financial reports
?Applicable □Not applicable
Consideration paragraph in internal control audit report
We believe that Nanjing Putian maintained effective internal control over financial reports in all major aspects in accorda nce with
the Basic Standards for Internal Control of Enterprises and relevant regulations.
Disclosure of internal control audit report Disclosed
Disclosure date of full-text internal control audit report April 20, 2023
CNINFO (www.cninfo.com.cn), “Internal Control Audit Report
Disclosure index of the full-text internal control audit report
of Nanjing Putian Telecommunications Co., Ltd. in 2022”
Type of opinions in internal control audit report Standard unqualified opinion
Whether there are major defects in non-financial reports No
Did the accounting firm issue an internal control audit report with non-standard opinions
□Yes ?No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report of the Board of
Directors
?Yes □No
XV. Rectification of problems found during self-inspection in special actions for listed company
governance
During the reporting period, according to the notification requirements of China Securities Regulatory Commission
and Jiangsu Securities Regulatory Bureau, the Company earnestly carried out special self-inspection and problem
rectification for listed company governance according to the list of special self-inspection of listed company
governance. After self-inspection, it was found that due to the reorganization of the original actual controllers China
Potevio and CETC, the Company failed to conduct a general election upon the expiration of the 7th Board of
Directors' term in a timely manner.
Rectification: During the reporting period, the Company completed the election of the 8th Board of Directors in
accordance with the Company Law and other laws and regulations and the Articles of Association. The election of
the 8th Board of Directors was reviewed and approved at the 62nd meeting of the 7th Board of Directors of the
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Company held on September 28, 2022 and the 2nd extraordinary general meeting of shareholders held on October
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Section V Environmental and Social Responsibilities
I. Major environmental protection issues
Whether the listed company and its subsidiaries are key pollutant discharge units announced by the environmental protection
department
□Yes ?No
Administrative punishment due to environmental problems during the reporting period
Influence on the
Rectification
Name of company Reasons for production and
Violation Penalty measures taken by
or subsidiary punishment operation of the
the Company
listed company
- - - - - -
Refer to other environmental information disclosed by key pollutant discharge units
Measures taken to reduce carbon emissions during the reporting period and their effects
□Applicable ?Not applicable
Reasons for not disclosing other environmental information
The Company and its subsidiaries are not key pollutant discharge units announced by the environmental protection
department. During the reporting period, the Company strictly implemented the relevant national environmental
protection laws and regulations, and there was no violation of environmental protection laws and regulations, and
there was no administrative punishment by the environmental protection department for environmental violations.
II. Social responsibilities
In the communications industry, the Company insists on independent innovation, continuously promotes its own
sustainable development, fulfills its responsibilities and obligations to stakeholders, and strives to achieve
harmonious and win-win development of itself, its employees, society and environment.
The Company constantly improves and optimizes corporate governance, conscientiously fulfills its information
disclosure obligations, ensures shareholders' right to be informed, participate and vote on major issues of the
Company, and ensures the legitimate rights and interests of all shareholders.
The Company attaches great importance to quality, environment and occupational safety and health management,
and has passed GB/T19001-2016 / ISO9001:2015 quality management system certification, GB/T24001-2016 /
ISO14001: 2015 environmental management system certification and GB/T45001-2020 / ISO45001:2018
occupational health and safety management system certification.
The Company strictly abides by the Labor Law, Labor Contract Law and other laws and regulations, always upholds
the core people-oriented values, attaches great importance to the value of employees, cares about their work, life,
health and safety, effectively protects their rights and interests, enhances the cohesion of the Company, and strives
to realize the vision of common development of itself and its employees.
The Company always keeps in mind the mission and responsibilities of central enterprises and enthusiastically
devotes itself to social welfare undertakings. During the reporting period, the Company organized pandemic
prevention volunteers to participate in nucleic acid testing. It also participated in many charitable activities such as
"Love Angel in Action" and "99 Public Welfare Day” fundraising campaign.
Based on the principle of honesty and trustworthiness and legal operation, the Company actively builds cooperative
partnership with suppliers, customers, banks and other relevant stakeholders, respects the legitimate rights and
interests of relevant stakeholders, tries to realize win-win results for itself and relevant stakeholders, and promotes
its sustained and steady development.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
III. Consolidation and expansion of the achievements in poverty alleviation and rural
revitalization efforts
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Section VI Important Matters
I. Implementation of commitments
Company during the reporting period and commitments not fulfilled by the end of the reporting period
?Applicable □Not applicable
Subject of Commitment Type of Contents of Date of Fulfillment
Valid period
commitment party commitments commitments commitment status
Commitments
Commitments See
China on horizontal
made in "Commitment
Electronics competition,
acquisition 1" under "2. August 31, Being fulfilled
Technology related party Long-term
reports or Details of 2021 normally
Group transactions
equity change commitments"
Corporation and capital
reports for details.
occupation
Commitments
Commitments
China on horizontal
made in
Electronics competition, See
acquisition August 31, Being fulfilled
Technology related party “Commitment Long-term
reports or 2021 normally
Group transactions 2”
equity change
Corporation and capital
reports
occupation
Commitments
Commitments
China on horizontal
made in
Electronics competition, See
acquisition August 31, Being fulfilled
Technology related party “Commitment Long-term
reports or 2021 normally
Group transactions 3”
equity change
Corporation and capital
reports
occupation
Commitment
Commitments on maintaining
made in the
See
acquisition CETC Glarun independence September 13, Being fulfilled
“Commitment Long-term
reports or Group Co., Ltd. of Nanjing 2022 normally
equity change Putian
reports Telecommunica
tions Co., Ltd.
Commitment
Commitments on avoiding
made in horizontal
See
acquisition CETC Glarun competition September 13, Being fulfilled
“Commitment Long-term
reports or Group Co., Ltd. with Nanjing 2022 normally
equity change Putian
reports Telecommunica
tions Co., Ltd.
Commitments Commitment
made in on
See
acquisition CETC Glarun standardization September 13, Being fulfilled
“Commitment Long-term
reports or Group Co., Ltd. and reduction 2022 normally
equity change of related party
reports transactions
Commitments
on horizontal
Commitments China Potevio
competition, See
made during Information October 13, Being fulfilled
related party “Commitment Long-term
asset Industry Co., 2020 normally
transactions 7”
reorganization Ltd.
and capital
occupation
China Potevio Commitments Being fulfilled
Commitments Information on horizontal normally (Jia
See
made during Industry Co., competition, October 13, Haowen, Li
“Commitment Long-term
asset Ltd.; China related party 2020 Jing);
reorganization Potevio transactions Fulfilment
Information and capital completed (Xu
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Industry Group occupation Qian, Wang
Co., Ltd. Wenkui, Li
Tong, Liu Yun,
Wang Jinfeng,
Qin Zhen, Tang
Fuxin, Xie
Manlin, Du
Xiaorong, Lei
Xu, Liu
Xiaodong and
Wang Huailin
left their posts
during the
reporting
period).
China Potevio
Information
Commitments Industry Co.,
See
made during Ltd.; China Other October 13, Being fulfilled
“Commitment Long-term
asset Potevio commitments 2020 normally
reorganization Information
Industry Group
Co., Ltd.
Xu Qian; Wang
Wenkui; Li
Tong; Liu Yun;
Wang Jinfeng;
Qin Zhen; Tang
Commitments
Fuxin; Xie See
made during Other November 25, Being fulfilled
Manlin; Du “Commitment Long-term
asset commitments 2020 normally
Xiaorong; Jia 10”
reorganization
Haowen; Lei
Xu; Liu
Xiaodong;
Wang Huailin;
Li Jing
China Potevio
Information
Commitments Industry Co.,
See
made during Ltd.; China Other November 25, Being fulfilled
“Commitment Long-term
asset Potevio commitments 2020 normally
reorganization Information
Industry Group
Co., Ltd.
Commitments
Other
on horizontal
commitments China Potevio
competition, See
made to Information Being fulfilled
related party “Commitment April 8, 2018 Long-term
minority Industry Co., normally
transactions 12”
shareholders of Ltd.
and capital
the Company
occupation
Commitments
Other
on horizontal
commitments China Potevio
competition, See
made to Information Being fulfilled
related party “Commitment April 8, 2018 Long-term
minority Industry Co., normally
transactions 13”
shareholders of Ltd.
and capital
the Company
occupation
Commitments
Other
on horizontal
commitments China Potevio
competition, See
made to Information Being fulfilled
related party “Commitment April 8, 2018 Long-term
minority Industry Co., normally
transactions 14”
shareholders of Ltd.
and capital
the Company
occupation
Other China Potevio Commitments See Being fulfilled
April 8, 2018 Long-term
commitments Information on horizontal “Commitment normally
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
made to Industry Group competition, 15”
minority Corporation related party
shareholders of transactions
the Company and capital
occupation
Commitments
Other
on horizontal
commitments China Potevio
competition, See
made to Information Being fulfilled
related party “Commitment April 8, 2018 Long-term
minority Industry Group normally
transactions 16”
shareholders of Corporation
and capital
the Company
occupation
Commitments
Other
on horizontal
commitments China Potevio
competition, See
made to Information Being fulfilled
related party “Commitment April 8, 2018 Long-term
minority Industry Group normally
transactions 17”
shareholders of Corporation
and capital
the Company
occupation
Other
commitments China Potevio
See
made to Information Other Being fulfilled
“Commitment June 19, 2018 Long-term
minority Industry Group commitments normally
shareholders of Corporation
the Company
Is the
commitment
Yes
fulfilled on
time
If a
commitment is
not fulfilled on
time, the
specific reasons
for the failed Not applicable
fulfillment and
the next work
plan shall be
specified in
detail
Commitment 1
Commitment made by: China Electronics Technology Group Corporation
Contents of commitments
After the review by the State-owned Assets Supervision and Administration Commission of the State Council and
the approval by the State Council, China Potevio Information Industry Group Co., Ltd. (hereinafter referred to as
"China Potevio") was transferred to China Electronics Technology Group Corporation (hereinafter referred to as
"the Company") free of charge and became a wholly-owned subsidiary of the Company (hereinafter referred to as
"the Reorganization"). The Reorganization will result in the Company becoming the indirect controlling shareholder
of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the "Listed Company"), a listed company
affiliated to China Potevio. As the purchaser of the Listed Company, in order to ensure the independence of the
Listed Company in terms of assets, personnel, finance, business and organizations, the Company hereby makes the
following commitments:
(1) The Company ensures that the general manager, deputy general manager, chief financial officer, secretary of the
Board of Directors and other senior executives of the Listed Company will not hold other administrative positions
except directors and supervisors in the Company and other enterprises and institutions controlled by the Company
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
(hereinafter referred to as “Subordinate Enterprises and Institutions"), and will not receive remuneration from the
Company and its Subordinate Enterprises and Institutions.
(2) The Company ensures that the financial personnel of the Listed Company will not work part-time in the
Company and its Subordinate Enterprises and Institutions.
(1) The Company ensures that the Listed Company sets up an independent financial accounting department, has
independent financial accounting system and financial management rules, and makes financial decisions
independently.
(2) The Company ensures that the Listed Company remains independent in financial decision-making, and that the
Company and its Subordinate Enterprises and Institutions do not interfere in the use of funds by the Listed Company.
(3) The Company ensures that the Listed Company independently opens accounts in banks and settle revenue and
expenditures, and independently files tax returns and fulfills tax obligations according to laws.
(1) The Company ensures that the Listed Company and its subsidiaries establish and improve their corporate
governance structures according to laws and can operate independently, and that the offices and production and
business premises of the Listed Company are separated from the Company and its Subordinate Enterprises and
Institutions.
(2) The Company ensures that the Listed Company and its subsidiaries operate independently without subordinate
relationship with the Company’s functional departments.
(1) The Company ensures that the Listed Company has independent and complete assets.
(2) The Company ensures that the Company and its Subordinate Enterprises and Institutions do not illegally occupy
assets, funds and other resources of the Listed Company.
(1) The Company ensures the independence of the Listed Company’s business and operation activities.
(2) The Company ensures that the Listed Company signs contracts and carries out business independently, forms
an independent and complete business system, implements independent accounting of operation and management,
bears liabilities and risks independently, and has the ability to operate independently and continuously in the market.
This commitment shall remain in force during the period during which the Company has control over the Listed
Company. If the Company fails to fulfill the above commitment and causes losses to the Listed Company, the
Company will bear corresponding liability for compensation.
Commitment 2
Commitment made by: China Electronics Technology Group Corporation
Contents of commitments
After the review by the State-owned Assets Supervision and Administration Commission of the State Council and
the approval by the State Council, China Potevio Information Industry Group Co., Ltd. (hereinafter referred to as
"China Potevio") was transferred to China Electronics Technology Group Corporation (hereinafter referred to as
"the Company") free of charge and became a wholly-owned subsidiary of the Company (hereinafter referred to as
"the Reorganization"). The Reorganization will result in the Company becoming the indirect controlling shareholder
of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the "Listed Company"), a listed company
affiliated to China Potevio. As the purchaser of the Listed Company, in order to avoid horizontal competition and
safeguard the interests of public shareholders, the Company hereby makes the following commitment:
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
From the date of issuance of this Letter of Commitment, the Company will further investigate whether there is
horizontal competition with the Listed Company. If there is horizontal competition with the Listed Company, the
Company will strengthen internal coordination and control management to ensure the healthy and sustainable
development of the Listed Company without damaging the interests of the Listed Company and its public investors;
If there is no horizontal competition, during the period when the Company directly or indirectly maintains
substantial equity control over the Listed Company, it will strictly abide by the relevant rules formulated by the
CSRC and the stock exchange and the Articles of Association of the Listed Company, and will not leverage its
control over the Listed Company to engage in horizontal competition that harms the legitimate rights and interests
of the Listed Company and its minority shareholders.
The above Letter of Commitment shall take effect from the date of issuance of the Letter of Commitment, and shall
remain valid during the legal and effective existence of the Listed Company and the period when the Company is
the actual controller of the Listed Company.
Commitment 3
Commitment made by: China Electronics Technology Group Corporation
Contents of commitments
After the review by the State-owned Assets Supervision and Administration Commission of the State Council and
the approval by the State Council, China Potevio Information Industry Group Co., Ltd. (hereinafter referred to as
"China Potevio") was transferred to China Electronics Technology Group Corporation (hereinafter referred to as
"the Company") free of charge and became a wholly-owned subsidiary of the Company (hereinafter referred to as
"the Reorganization"). The Reorganization will result in the Company becoming the indirect controlling shareholder
of Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the "Listed Company"), a listed company
affiliated to China Potevio. As the acquirer of the Listed Company, in order to ensure the legitimate rights and
interests of the Listed Company and its minority shareholders, the Company makes the following commitment
concerning regulating related party transactions between the Company and the Listed Company:
unnecessary related party transactions with the Listed Company and its subsidiaries; Related business transactions
or transactions that are necessary or reasonable will be conducted on the basis of equality and voluntariness and in
accordance with the principles of fairness, impartiality and openness, and the transaction prices will be reasonably
determined based on market prices. For related party transactions that are difficult to compare with market prices
or subject to pricing limitations, the standards of relevant costs and profits should be clearly defined in contracts,
and decision-making procedures should be performed in accordance with relevant laws and regulations, normative
documents and the Articles of Association of the Listed Company, so as to ensure that the legitimate rights and
interests of the Listed Company and other shareholders will not be damaged through related party transactions, and
information disclosure obligations should be performed in accordance with relevant regulations.
Company on related affairs and related party transactions shall not prevent them from conducting business dealings
or transactions with any third party for their own benefit under the same competitive conditions in the market.
This Letter of Commitment shall remain valid during the legal and valid existence of the Listed Company and the
period when the Company is the actual controller of the Listed Company. If the Listed Company suffers losses due
to the Company's violation of the commitment under this Letter of Commitment, the Company will bear
corresponding compensation liabilities according to laws.
Commitment 4
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Commitment made by: CETC Glarun Group Co., Ltd.
Contents of commitments
As the acquirer of NJ TEL B, the Company hereby makes the following commitment to ensure the independence
of the Listed Company in assets, personnel, finance, business and organizations after the completion of this
acquisition:
(1) The Company ensures that the general manager, deputy general manager, chief financial officer, secretary of the
Board of Directors and other senior executives of the Listed Company will not hold other positions except directors
and supervisors in the Company and other enterprises and institutions controlled by the Company (hereinafter
referred to as “Subordinate Enterprises and Institutions"), and will not receive remuneration from the Company and
its Subordinate Enterprises and Institutions.
(2) The Company ensures that the financial personnel of the Listed Company will not work part-time in or receive
remuneration from the Company and its Subordinate Enterprises and Institutions.
(3) The Company ensures that the Listed Company has complete and independent labor, personnel and remuneration
management systems, and that these systems are completely independent of the Company and other enterprises and
institutions controlled by the Company.
(1) The Company ensures that the Listed Company sets up an independent financial accounting department, has
independent financial accounting system and financial management rules, and makes financial decisions
independently.
(2) The Company ensures that the Listed Company remains independent in financial decision-making, and that the
Company and its Subordinate Enterprises and Institutions do not interfere in the use of funds by the Listed Company.
(3) The Company ensures that the Listed Company independently opens accounts in banks and settle revenue and
expenditures, and independently files tax returns and fulfills tax obligations according to laws.
(4) The Company ensures that the financial personnel of the Listed Company do not serve concurrently in the
Company and its Subordinate Enterprises and Institutions.
(1) The Company ensures that the Listed Company and its subsidiaries establish and improve their corporate
governance structures according to laws, establish independent and complete organizations, and operate
independently, and that the office and production and business premises of the Listed Company are separated from
the Company and its Subordinate Enterprises and Institutions, without confusion among their organizations.
(2) The Company ensures that the Listed Company and its subsidiaries operate independently without subordinate
relationship with the Company’s functional departments.
(1) The Company ensures that the Listed Company has independent and complete assets.
(2) The Company ensures that the Company and its Subordinate Enterprises and Institutions do not illegally occupy
assets, funds and other resources of the Listed Company.
(1) The Company ensures the independence of the Listed Company’s business and operation activities.
(2) The Company ensures that the Listed Company has assets, personnel and qualifications to independently carry
out business activities, sign contracts and carry out business independently, forms an independent and complete
business system, implements independent accounting of operation and management, bears liabilities and risks
independently, and has the ability to operate independently and continuously in the market.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
(3) In case of necessary related party transactions between the Company/its Subordinate Enterprises and Institutions
and the Listed Company, agreements shall be signed according to laws, and necessary legal procedures shall be
performed in accordance with relevant laws, regulations and Articles of Association of the Listed Company.
This commitment shall remain valid during the legal and valid existence of the Listed Company and the period
when the Company is the controlling shareholder of the Listed Company. If the Company fails to fulfill the above
commitment and causes losses to the Listed Company, the Company will bear corresponding liability for
compensation.
Commitment 5
Commitment made by: CETC Glarun Group Co., Ltd.
Contents of commitments
The main business of the Company is not identical or similar to that of the Listed Company. Before this acquisition,
the actual controller of the Listed Company was China Electronics Technology Group Corporation (hereinafter
referred to as "CETC"). After the completion of this acquisition, the actual controller of the Listed Company is still
CETC. This acquisition is carried out between different subjects controlled by the same actual controller, without
causing changes in the actual controller of the Listed Company and the related parties of the Listed Company.
Therefore, this acquisition will not cause new horizontal competition between the related parties and the Listed
Company.
In order to avoid horizontal competition and safeguard the interests of public shareholders, the Company hereby
makes the following commitment:
I. As of the date of issuance of this Letter of Commitment, the Company and other enterprises controlled by the
Company do not engage in or participate in any business or activities that constitutes a substantial competition
against the Listed Company in its main business.
II. After the completion of this acquisition, the Company and other enterprises controlled by the Company will not
directly or indirectly engage in the business same as the main business of the Listed Company.
III. After the completion of this acquisition, the Company ensures that the Company and its subordinate units will
not have substantial horizontal competition against the Listed Company in the future through internal coordination
and control management. If the Company and its subordinate units get business opportunities to engage in new
businesses that may result in horizontal competition against the Listed Company, the Company and its subordinate
units will give priority to offering the business opportunities of the said new businesses to the Listed Company for
selection, and make their best efforts to enable the business opportunities of the said new businesses to transfer to
the Listed Company.
If the Listed Company gives up the business opportunities of the said new businesses, the Company and its
subordinate units can operate the relevant new businesses on their own, but in the future, with the needs of business
development, the Listed Company will still enjoy the following rights as permitted by the applicable laws and
regulations and relevant regulatory rules:
and its subordinate units for one or more times;
regulatory rules, choose to operate the assets and/or businesses related to the above businesses of the Company and
its subordinate units by means of entrusted management, lease, contracted operation and licensed use.
IV. This Letter of Commitment shall remain valid during the legal and effective existence of the Listed Company
and the period when the Company is the controlling shareholder of the Listed Company; From the date of issuance
of this Letter of Commitment, if the Listed Company suffers losses due to the violation of the commitment under
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
this Letter of Commitment by the Company or its subordinate units, the Company will bear corresponding
compensation liabilities according to laws.
If the commitment hereunder is impossible to fulfill or needs to be adjusted due to objective reasons such as policy
adjustment and market changes, the Company and the Listed Company will give public explanations to the market
in advance to fully disclose the reasons for adjustment or failure to fulfill the commitment, and propose
corresponding solution.
Commitment 6
Commitment made by: CETC Glarun Group Co., Ltd.
Contents of commitments
After the completion of this acquisition, the Listed Company will continue to strictly comply with the requirements
of relevant laws, regulations and the Listing Rules, abide by the Articles of Association and other provisions on
related party transactions, perform necessary legal procedures, conduct related party transactions in accordance with
legal and effective agreements, give full play to the role of independent directors in practical work, follow the
principles of fairness, impartiality and openness, and fulfill information disclosure obligations, thus protecting the
interests of minority shareholders. In order to reduce and regulate related party transactions, and safeguard the
legitimate rights and interests of the Listed Company and its public shareholders, the Company makes the following
commitment concerning regulating related party transactions between the Company and the Listed Company:
unnecessary related party transactions with the Listed Company and its subsidiaries; Related business transactions
or transactions that are necessary or reasonable will be conducted on the basis of equality and voluntariness and in
accordance with the principles of fairness, impartiality and openness, and the transaction prices will be reasonably
determined based on market prices. For related party transactions that are difficult to compare with market prices
or subject to pricing limitations, the standards of relevant costs and profits should be clearly defined in contracts,
and decision-making procedures should be performed in accordance with relevant laws and regulations, normative
documents and the Articles of Association of the Listed Company, so as to ensure that the legitimate rights and
interests of the Listed Company and other shareholders will not be damaged through related party transactions, and
information disclosure obligations should be performed in accordance with relevant regulations.
Company on related affairs and related party transactions shall not prevent them from conducting business dealings
or transactions with any third party for their own benefit under the same competitive conditions in the market.
This Letter of Commitment shall remain valid during the legal and valid existence of the Listed Company and the
period when the Company is the controlling shareholder of the Listed Company. If the Listed Company suffers
losses due to the Company's violation of the commitment under this Letter of Commitment, the Company will bear
corresponding compensation liabilities according to laws.
If the commitment hereunder is impossible to fulfill or needs to be adjusted due to objective reasons such as policy
adjustment and market changes, the Company and the Listed Company will give public explanations to the market
in advance to fully disclose the reasons for adjustment or failure to fulfill the commitment, and propose
corresponding solution.
Commitment 7
Commitment made by: China Potevio Information Industry Co., Ltd.; China Potevio Information Industry Group
Co., Ltd.
Contents of commitments
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Putian Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing Putian") and its subsidiaries and branches.
voluntariness and in accordance with the principles of fairness, impartiality and compensation for equal value. The
Company or the enterprise controlled by the Company will sign a related party transaction agreement with Nanjing
Putian or its subsidiaries in accordance with the laws, and transaction prices will be determined according to the
reasonable prices recognized by the market to ensure the fairness of the related party transaction prices; In
accordance with relevant laws, regulations, rules, other normative documents and the Articles of Association of
Nanjing Putian or its subsidiaries, fair procedures such as related party transaction decision-making and vote
avoidance shall be performed, and information shall be disclosed in a timely manner to ensure that the legitimate
rights and interests of Nanjing Putian or its subsidiaries and other shareholders of Nanjing Putian will not be
damaged by related party transactions.
to give the Company or the enterprises controlled by the Company conditions superior to those for third parties in
any fair market transaction.
accordance with the Articles of Association of Nanjing Putian and its subsidiaries, will not leverage the identity of
controlling shareholder/actual controller to seek illegitimate interests, will not illegally transfer funds and profits of
Nanjing Putian or its subsidiaries through related party transactions, and guarantees that it will not damage the
legitimate rights and interests of other shareholders of Nanjing Putian.
fully compensate or make up for all direct or indirect losses caused to Nanjing Putian.
Commitment 8
Commitment made by: China Potevio Information Industry Co., Ltd.; China Potevio Information Industry Group
Co., Ltd.
Contents of commitments
Co., Ltd. (hereinafter referred to as "Nanjing Putian"), it guarantees not to leverage its control over Nanjing Putian
to engage in or participate in acts detrimental to the interests of Nanjing Putian and its minority shareholders.
will not own, manage, control, invest in, or engage in any other business or project, directly or indirectly, within or
outside the PRC, which is the same or similar to those currently carried out or planned for the future by Nanjing
Putian and its subsidiaries and branches, nor will they seek to directly or indirectly engage in any business that
competes with the current or planned business of Nanjing Putian and its subsidiaries or branches through joint
venture, cooperation, joint venture with any third party or through any means such as lease operation, contract
operation or entrusted management, nor will they have an interest in the above activities. If the Company and the
enterprises controlled by the Company discover any new business opportunity that constitutes or may constitute a
direct or indirect competition against Nanjing Putian or its holding enterprises in their main business, they will
immediately notify Nanjing Putian in writing and cause the business opportunity to be first provided to Nanjing
Putian or its holding enterprises on reasonable and fair terms and conditions.
Company and the enterprises controlled by the Company engage in these competitive businesses, Nanjing Putian or
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
its holding enterprises have the right to acquire any equity, assets and other interests in the above competitive
businesses from the above entities for one or more times at any time.
otherwise transfer or allow the use of assets and businesses that constitute or may constitute direct or indirect
competition against Nanjing Putian or its holding enterprises in their main business, the Company and the
enterprises controlled by the Company will provide Nanjing Putian or its holding enterprises with the right of first
refusal, and promise to make every effort to urge the enterprises in which the Company holds an equity stake to
provide the right of first refusal to Nanjing Putian or its holding enterprises under the above circumstances.
the losses suffered by Nanjing Putian; All benefits obtained by the Company due to breach of the above
commitments shall belong to Nanjing Putian.
shareholder/actual controller of the Listed Company.
Commitment 9
Commitment made by: China Potevio Information Industry Co., Ltd.; China Potevio Information Industry Group
Co., Ltd.
After the completion of this transaction, the Company will strictly abide by the Company Law, Securities Law,
relevant regulations of China Securities Regulatory Commission, Shenzhen Stock Exchange and the Articles of
Association, etc., and ensure that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as the
"Listed Company") will continue to be completely separated from the Company and the enterprises controlled or
greatly influenced by the Company in terms of personnel, assets, finance, organizations and business, and maintain
the independence of the Listed Company in terms of personnel, assets, finance, organizations and business. In
particular, after the completion of this transaction, the Company will abide by the Notice on Certain Issues
Concerning the Regulation of Financial Transactions between Listed Companies and Related Parties and External
Guarantees by Listed Companies (Z.J.F (2003) No.56) and the Notice of the China Securities Regulatory
Commission and China Banking Regulatory Commission on the Regulation of External Guarantees by Listed
Companies (Z.J.F [2005] No.120) to regulate external guarantees by the Listed Company and its subsidiaries, and
will not illegally occupy funds of the Listed Company and its subsidiaries.
The Company guarantees to strictly fulfill the above commitment. If the rights and interests of the Listed Company
are damaged due to the violation of the above commitment by the Company or the enterprises controlled or greatly
influenced by the Company, the Company will bear corresponding compensation liabilities according to laws.
Commitment 10
Commitment made by: Xu Qian; Wang Wenkui; Li Tong; Liu Yun; Wang Jinfeng; Qin Zhen; Tang Fuxin; Xie
Manlin; Du Xiaorong; Jia Haowen; Lei Xu; Liu Xiaodong; Wang Huailin; Li Jing
Contents of commitments
In order to ensure that the Company's measures to fill the diluted immediate return can be effectively implemented,
all directors and senior executives of the Company make the following commitment:
(I) I promise not to transfer benefits to other units or individuals without compensation or on unfair terms, or to use
other means to harm the interests of the Listed Company;
(II) I promise to restrain my job-related consumption behavior;
(III) I promise not to use the Listed Company's assets for investments and consumption unrelated to my duties;
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
(IV) I promise to do my best, within the scope of my responsibilities and authority, to link the remuneration system
established by the Board of Directors or the Remuneration Committee with the implementation of the Listed
Company's compensation measures to cover losses;
(V) If the Listed Company plans to implement equity incentives in the future, I promise to do my best, within the
scope of my responsibilities and authority, to link the exercise conditions of the equity incentives planned by the
Listed Company with the implementation of the compensation measures to cover losses;
(VI) From the date of this commitment to the completion of this transaction, if the CSRC issues any new regulatory
provisions regarding compensation measures to cover losses to cover losses and related commitments, and the above
commitments cannot satisfy such provisions of the CSRC, I promise to issue a supplementary commitment in
accordance with the latest regulations of the CSRC;
(VII) I promise to diligently fulfill the Listed Company's established compensation measures to cover losses and
any commitments I have made in relation to these measures; if I violate such commitments and cause losses to the
Listed Company or investors, I am willing to assume legal compensation responsibility to the Listed Company or
investors.
Commitment 11
Commitment made by: China Potevio Information Industry Co., Ltd.; China Potevio Information Industry Group
Co., Ltd.
Contents of commitments
Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing Putian") beyond its authority and not encroach
on interests of Nanjing Putian;
provisions on the compensation measures to cover losses and related commitments, and the above commitments
cannot satisfy the provisions of the CSRC, the Company promises to issue supplementary commitments according
to the provisions of the CSRC;
The Company promises to strictly fulfill the above commitments and ensure that the compensation measures to
cover losses can be effectively taken. If the Company violates the above commitments and causes losses to Nanjing
Putian or investors, the Company is willing to bear the compensation responsibility for Nanjing Putian or investors
and the corresponding punishment of the regulatory authorities according to laws.
Commitment 12
Commitment made by: China Potevio Information Industry Co., Ltd.
Commitment: Since Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing Putian")
intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the controlling shareholder
of Nanjing Putian, hereby makes the following commitment:
I. Ensure personnel independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian's production, operation and administration (including labor, personnel
and salary management, etc.) are completely independent of the Company and the companies and enterprises under
the Company.
(II) The Company ensures that Nanjing Putian's general manager, deputy general manager, chief financial officer,
secretary of the Board of Directors and other senior executives work full-time in Nanjing Putian and receive
remuneration from Nanjing Putian, and do not concurrently hold other positions other than directors and supervisors
in the Company and the companies and enterprises under the Company, and do not receive remuneration from the
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Company and the companies or enterprises under the Company; The Company ensures that the financial personnel
of Nanjing Putian do not work part-time in and receive remuneration from the Company and the companies and
enterprises under the Company.
(III) The Company ensures that it recommends candidates to serve as directors, supervisors and senior executives
of Nanjing Putian through legal procedures, and that it will not interfere with the personnel appointment and
dismissal decisions made by the Board of Directors and Shareholders' Meeting of Nanjing Putian.
II. Ensure assets independence and integrity of Nanjing Putian
(I) The Company ensures the assets independence and integrity of Nanjing Putian and its subsidiaries, and ensures
that all these assets are under the control of Nanjing Putian and its subsidiaries, and are independently owned and
operated by Nanjing Putian and its subsidiaries.
(II) The Company ensures that the Company and the companies and enterprises under the Company do not illegally
occupy Nanjing Putian's assets, funds and other resources.
III. Ensure business independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian has an independent procurement and sales systems; has the assets,
personnel and qualifications to independently carry out business activities, and has the ability to operate
independently in the market.
(II) The Company ensures that the Company and the companies and enterprises under the Company avoid horizontal
competition against Nanjing Putian and its subsidiaries.
(III) The Company ensures to conduct strict control of related party transactions and minimize continuing related
party transactions between Nanjing Putian and its subsidiaries and the Company and the companies and enterprises
under the Company. The Company puts an end to the illegal occupation of Nanjing Putian's funds and assets, and
will not require Nanjing Putian and its subsidiaries to provide any form of guarantee to the Company and the
companies and enterprises under the Company. For necessary related party transactions, the Company will follow
the principle of "fairness, impartiality and openness", make transaction prices consistent with those for non-related
enterprises, and disclose information in a timely manner.
(IV) The Company ensures not to interfere in major decisions of Nanjing Putian by any means other than exercising
shareholders' rights according to laws, and not to affect the independence of Nanjing Putian's assets, personnel,
finance, organizations and business.
IV. Ensure organizational independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian and its subsidiaries establish and improve their own corporate
governance structures according to laws, and completely separate from the Company and the companies and
enterprises under the Company; The Company ensures that Nanjing Putian and its subsidiaries are completely
separated from the Company and the companies and enterprises under the Company in terms of offices and
production and business premises, without confusion among their organizations.
(II) The Company ensures that Nanjing Putian and its subsidiaries operate independently, and the Company will not
directly or indirectly interfere in the decision-making and operation of Nanjing Putian without the approval of the
Board of Directors and Shareholders' Meeting of Nanjing Putian.
(III) The Company ensures that the Shareholders' Meeting, Board of Directors, independent directors, Board of
Supervisors and senior executives of Nanjing Putian independently exercise their functions and powers in
accordance with laws, regulations and the Articles of Association.
V. Ensure financial independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian has an independent financial accounting department, an independent
financial accounting system, standardized and independent financial accounting rules and financial management
rules.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
(II) The Company ensures that Nanjing Putian remains independent in financial decision-making, and that the
Company and the companies and enterprises under the Company do not interfere in the use and dispatch of funds
of Nanjing Putian.
(III) The Company ensures that Nanjing Putian maintains its own independent bank accounts and does not share
any bank accounts with the Company and the companies and enterprises under the Company.
(IV) Ensure independent tax payment by Nanjing Putian according to laws.
The above commitment shall remain valid and irrevocable during the period when the Company is the controlling
shareholder of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to
Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 13
Commitment made by: China Potevio Information Industry Co., Ltd.
Contents of commitments
In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing Putian")
intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the controlling shareholder
of Nanjing Putian, hereby makes the following commitment:
I. The Company will not leverage its identity as Nanjing Putian's controlling shareholder to require Nanjing Putian
and its subsidiaries to give rights superior to those for third parties in the market in business cooperation or engage
in any acts that harm the interests of Nanjing Putian and its subsidiaries in transactions.
II. The Company will not leverage its identity as Nanjing Putian's controlling shareholder to seek priority rights to
conclude transactions with Nanjing Putian and its subsidiaries.
III. When carrying out related party transactions that are really necessary and unavoidable, it ensures that they are
carried out in accordance with the principle of marketization and fair prices, and will strictly comply with the
relevant laws, regulations, normative documents and the relevant provisions of the Articles of Association of the
listed company, perform the transaction procedures and information disclosure obligations, and ensures that the
legitimate rights and interests of the Company and other shareholders will not be damaged through related party
transactions.
The above commitment shall remain valid and irrevocable during the period when the Company is the controlling
shareholder of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to
Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 14
Commitment made by: China Potevio Information Industry Co., Ltd.
Commitment: Since Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing Putian")
intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the controlling shareholder
of Nanjing Putian, hereby makes the following commitment:
I. The Company and the related enterprises controlled by the Company have not engaged in any production and
operation business or activities that directly or indirectly compete against Nanjing Putian, and promise not to engage
in any production and operation business or activities that directly or indirectly compete against Nanjing Putian in
the future.
II. The Company does not own, manage, control, invest or engage in any other businesses or projects that are the
same as or similar to the those of Nanjing Putian.
III. If the Company or its any related enterprise obtains any business opportunity from any third party that constitutes
substantial competition or may constitute substantial competition against Nanjing Putian in its business, the
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Company will immediately notify Nanjing Putian and transfer the business opportunity to Nanjing Putian after
obtaining approval from the third party.
IV. The Company will supervise and restrain the production and operation activities of itself and its related
enterprises. If the products or businesses of the Company and its related enterprises are the same as or similar to
those of Nanjing Putian in the future, the Company promises to take the following measures to solve the problem:
(I) When Nanjing Putian deems it necessary, the Company and its related enterprises will reduce their holdings until
all the relevant assets and businesses held by the Company and its related enterprises are transferred;
(II) Nanjing Putian may, when it deems it necessary, give priority to the acquisition of relevant assets and businesses
held by the Company and its related enterprises through appropriate means;
(III) If the Company and its related enterprises have conflicts of interest with Nanjing Putian due to horizontal
competition, the interests of Nanjing Putian shall be given priority;
(IV) The Company will take other measures conducive to avoiding horizontal competition.
The above commitment shall remain valid and irrevocable during the period when the Company is the controlling
shareholder of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to
Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 15
Commitment made by: China Potevio Information Industry Group Corporation
Commitment: In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as
"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the
actual controller of Nanjing Putian, hereby makes the following commitment:
I. Ensure personnel independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian's production, operation and administration (including labor, personnel
and salary management, etc.) are completely independent of the Company and the companies and enterprises under
the Company.
(II) The Company ensures that Nanjing Putian's general manager, deputy general manager, chief financial officer,
secretary of the Board of Directors and other senior executives work full-time in Nanjing Putian and receive
remuneration from Nanjing Putian, and do not concurrently hold other positions other than directors and supervisors
in the Company and the companies and enterprises under the Company, and do not receive remuneration from the
Company and the companies or enterprises under the Company; The Company ensures that the financial personnel
of Nanjing Putian do not work part-time in and receive remuneration from the Company and the companies and
enterprises under the Company.
(III) The Company ensures that it recommends candidates to serve as directors, supervisors and senior executives
of Nanjing Putian through legal procedures, and that it will not interfere with the personnel appointment and
dismissal decisions made by the Board of Directors and Shareholders' Meeting of Nanjing Putian.
II. Ensure assets independence and integrity of Nanjing Putian
(I) The Company ensures the assets independence and integrity of Nanjing Putian and its subsidiaries, and ensures
that all these assets are under the control of Nanjing Putian and its subsidiaries, and are independently owned and
operated by Nanjing Putian and its subsidiaries.
(II) The Company ensures that the Company and the companies and enterprises under the Company do not illegally
occupy Nanjing Putian's assets, funds and other resources.
III. Ensure business independence of Nanjing Putian
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
(I) The Company ensures that Nanjing Putian has an independent procurement and sales systems; has the assets,
personnel and qualifications to independently carry out business activities, and has the ability to operate
independently in the market.
(II) The Company ensures that the Company and the companies and enterprises under the Company avoid horizontal
competition against Nanjing Putian and its subsidiaries.
(III) The Company ensures to conduct strict control of related party transactions and minimize continuing related
party transactions between Nanjing Putian and its subsidiaries and the Company and the companies and enterprises
under the Company. The Company puts an end to the illegal occupation of Nanjing Putian's funds and assets, and
will not require Nanjing Putian and its subsidiaries to provide any form of guarantee to the Company and the
companies and enterprises under the Company. For necessary related party transactions, the Company will follow
the principle of "fairness, impartiality and openness", make transaction prices consistent with those for non-related
enterprises, and disclose information in a timely manner.
(IV) The Company ensures not to interfere in major decisions of Nanjing Putian by any means other than exercising
shareholders' rights according to laws, and not to affect the independence of Nanjing Putian's assets, personnel,
finance, organizations and business.
IV. Ensure organizational independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian and its subsidiaries establish and improve their own corporate
governance structures according to laws, and completely separate from the Company and the companies and
enterprises under the Company; The Company ensures that Nanjing Putian and its subsidiaries are completely
separated from the Company and the companies and enterprises under the Company in terms of offices and
production and business premises, without confusion among their organizations.
(II) The Company ensures that Nanjing Putian and its subsidiaries operate independently, and the Company will not
directly or indirectly interfere in the decision-making and operation of Nanjing Putian without the approval of the
Board of Directors and Shareholders' Meeting of Nanjing Putian.
(III) The Company ensures that the Shareholders' Meeting, Board of Directors, independent directors, Board of
Supervisors and senior executives of Nanjing Putian independently exercise their functions and powers in
accordance with laws, regulations and the Articles of Association.
V. Ensure financial independence of Nanjing Putian
(I) The Company ensures that Nanjing Putian has an independent financial accounting department, an independent
financial accounting system, standardized and independent financial accounting rules and financial management
rules.
(II) The Company ensures that Nanjing Putian remains independent in financial decision-making, and that the
Company and the companies and enterprises under the Company do not interfere in the use and dispatch of funds
of Nanjing Putian.
(III) The Company ensures that Nanjing Putian maintains its own independent bank accounts and does not share
any bank accounts with the Company and the companies and enterprises under the Company.
(IV) Ensure independent tax payment by Nanjing Putian according to laws.
The above commitment shall remain valid and irrevocable during the period when the Company is the actual
controller of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to
Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 16
Commitment made by: China Potevio Information Industry Group Corporation
Contents of commitments
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as "Nanjing Putian")
intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the actual controller of
Nanjing Putian, hereby makes the following commitment:
subsidiaries to give rights superior to those for third parties in the market in business cooperation or engage in any
acts that harm the interests of Nanjing Putian and its subsidiaries in transactions.
transactions with Nanjing Putian and its subsidiaries.
carried out in accordance with the principle of marketization and fair prices, and will strictly comply with the
relevant laws, regulations, normative documents and the relevant provisions of the Articles of Association of the
listed company, perform the transaction procedures and information disclosure obligations, and ensures that the
legitimate rights and interests of the Company and other shareholders will not be damaged through related party
transactions.
The above commitment shall remain valid and irrevocable during the period when the Company is the actual
controller of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to
Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 17
Commitment made by: China Potevio Information Industry Group Corporation
Commitment: In view of the fact that Nanjing Putian Telecommunications Co., Ltd. (hereinafter referred to as
"Nanjing Putian") intends to apply to Shenzhen Stock Exchange for resumption of listing, the Company, as the
actual controller of Nanjing Putian, hereby makes the following commitment:
operation business or activities that directly or indirectly compete against Nanjing Putian, and promise not to engage
in any production and operation business or activities that directly or indirectly compete against Nanjing Putian in
the future.
same as or similar to the those of Nanjing Putian.
substantial competition or may constitute substantial competition against Nanjing Putian in its business, the
Company will immediately notify Nanjing Putian and transfer the business opportunity to Nanjing Putian after
obtaining approval from the third party.
If the products or businesses of the Company and its related enterprises are the same as or similar to those of Nanjing
Putian in the future, the Company promises to take the following measures to solve the problem:
(1) When Nanjing Putian deems it necessary, the Company and its related enterprises will reduce their holdings
until all the relevant assets and businesses held by the Company and its related enterprises are transferred;
(2) Nanjing Putian may, when it deems it necessary, give priority to the acquisition of relevant assets and businesses
held by the Company and its related enterprises through appropriate means;
(3) If the Company and its related enterprises have conflicts of interest with Nanjing Putian due to horizontal
competition, the interests of Nanjing Putian shall be given priority;
(4) The Company will take other measures conducive to avoiding horizontal competition.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
The above commitment shall remain valid and irrevocable during the period when the Company is the actual
controller of Nanjing Putian. In case of violation of the above commitment and thus causing economic losses to
Nanjing Putian, the Company will compensate Nanjing Putian.
Commitment 18
Commitment made by: China Potevio Information Industry Group Corporation
Commitment: The Group makes the following statements and commitments regarding the operation and future
development plan of Nanjing Putian’s private network communications business, and the business of the Group and
the enterprises controlled by the Group (except Nanjing Putian and its controlled enterprises):
In order to optimize the internal resource allocation of the Group and give full play to Nanjing Putian's business
capabilities, from 2016, the Group has entrusted Nanjing Putian to produce the private network communications
products that were originally purchased by China Potevio Information Industry Co., Ltd. (hereinafter referred to as
“Potevio Co., Ltd."), a wholly-owned subsidiary of the Group. The Group's private network communications
business was originally a trade-oriented business where products were purchased and sold by Potevio Co., Ltd. from
external suppliers. From 2016, the business has been successfully transformed into an independent processing and
production business. The current business model is as follows: Potevio Co., Ltd. will sign entrusted production
contracts with Nanjing Putian and its subsidiary Southern Telecom after obtaining orders from customers, and
Nanjing Putian will be responsible for production. At present, the customer of Potevio Co., Ltd. is Fortune Industrial
Corp., and the total annual order amount of existing model products remains above 500 million yuan. It is expected
to have a stable demand period of 3 to 5 years.
The Group undertakes to take Nanjing Putian as the operating entity of private network communications business,
including but not limited to:
existing multi-network cloud-based data processing communication devices and related military-civilian integration
projects (that is, the private network communications business referred to in this commitment), and it is exclusive;
network communications business including sales into Nanjing Putian within 3 years; If the relevant business
resources cannot be integrated into Nanjing Putian due to external reasons such as special requirements of
downstream customers on the subject qualifications of direct partners (for example, non-foreign-funded enterprises),
the Group will cooperate with Nanjing Putian to carry out relevant business under the condition of meeting the
requirements of relevant laws and regulations, that is, undertake relevant business in the name of the Group or its
subordinate enterprises, and Nanjing Putian will be responsible for actual operation.
The above commitment shall take effect from the date of signing this commitment, and shall remain valid and
irrevocable during the existence of Nanjing Putian and the period when the Group is recognized as a related party
that is not allowed to engage in business same as or similar to Nanjing Putian’s private network communications
business in accordance with relevant regulations. If the above commitment is proved to be untrue or not fulfilled,
all benefits obtained by the Group due to breach of the commitment shall be owned by Nanjing Putian, and the
Group shall compensate for all direct and indirect losses suffered by Nanjing Putian and bear corresponding legal
liabilities.
profit forecast period, the Company shall explain whether the assets or projects have achieved the original
profit forecast and the reasons therefor.
□Applicable ?Not applicable
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
II. Non-operating occupation of funds by controlling shareholders and other related parties of
the Listed Company
□Applicable ?Not applicable
During the reporting period, there was no non-operating occupation of funds by controlling shareholders and other related parties of
the Listed Company.
III. Illegal external guarantees
□Applicable ?Not applicable
During the reporting period, the Company had no illegal external guarantees.
IV. Explanation of the Board of Directors on the relevant information of the latest Non-standard
Audit Report
□Applicable ?Not applicable
V. Explanations of the Board of Directors, the Board of Supervisors and independent directors
(if any) on the Non-standard Audit Report for the reporting period issued by the accounting
firm
□Applicable ?Not applicable
VI. Explanation of changes in accounting policies, accounting estimates compared with the
financial report of the previous year or correction of material accounting errors
□Applicable ?Not applicable
During the reporting period, there was no change in accounting policies, accounting estimates or correction of major accounting errors.
VII. Explanation of changes in the scope of consolidated statements compared with the financial
report of the previous year
?Applicable □Not applicable
According to the Decision of Qinhuai District People's Court of Nanjing City, Jiangsu Province (2022) S. 0104 P.
No.37, the bankruptcy liquidation procedure of the subsidiary Nanjing Putian Telecommunications Technology Co.,
Ltd. has been started and handed over to the trustee in bankruptcy. For the reporting period, its profits and losses
and cash flow from January to October were included in the consolidated statements.
The subsidiary Putian Telecommunications (H.K.) Co., Ltd. has been liquidated. For the reporting period, its profits
and losses and cash flow from January to May during the liquidation period were included in the consolidated
statements.
VIII. Appointment and dismissal of accounting firm
Accounting firm currently engaged
Name of domestic accounting firm WUYIGE Certified Public Accountants LLP
Remuneration of domestic accounting firm (in 10,000 yuan) 80
Continuous years of audit service of the domestic accounting
firm
Name of CPAs of the domestic accounting firm Wan Fangquan, Guo Zhigang
Continuous years of audit service of CPAs of the domestic
accounting firm
Whether to change the accounting firm in the current period
□Yes ?No
Engagement of internal control audit accounting firm, financial consultants or sponsors
?Applicable □Not applicable
The Company engaged WUYIGE Certified Public Accountants LLP as the internal control audit institution in 2022,
and the internal control audit fee was 200,000 yuan.
IX. Delisting after the disclosure of the annual report
□Applicable ?Not applicable
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
X. Matters related to bankruptcy reorganization
□Applicable ?Not applicable
No bankruptcy reorganization related matters occurred during the reporting period.
XI. Major litigation and arbitration matters
?Applicable □Not applicable
Basic Whether an Result and Enforcement
Amount Progress of
information estimated influence of of litigation Date of Disclosure
involved (in litigation
of litigation liability is litigation (arbitration) disclosure index
(arbitration) formed (arbitration) judgments
Nanjing
Shengtian
Internet It has no
Announceme
Technology significant
nt on
Co., Ltd. v. impact on the
Accumulated
Nanjing Court- profit of the
Execution April 26, Litigation
Putian 64.99 No ordered Company in
completed 2022
Telecommuni mediation the current
(Announcem
cations Co., period or
ent No.
Ltd.: Case of after the
Dispute over period
Sales
Contract
Nanjing
Putian
Telecommuni
cations Co.,
Ltd. v.
Baotou
It has no
Branch of
significant
China
impact on the
Broadnet
Court- profit of the
Inner April 26,
Mongolia 2022
mediation the current
Network Co.,
period or
Ltd., China
after the
Broadnet
period
Inner
Mongolia
Network Co.,
Ltd.: Case of
Dispute over
Contract
It has no Ibid
Nanjing
significant
Putian
impact on the
Telecommuni
The verdict profit of the
cations Co., Execution April 26,
Ltd. v. Li Qi: completed 2022
into effect the current
Case of
period or
Labor
after the
Dispute
period
Nanjing Ibid
Gongmei
Technology It has no
Co., Ltd. and significant
Nanjing impact on the
Putian The verdict profit of the
All claims April 26,
Telecommuni 217 No has come Company in
dismissed 2022
cations Co., into effect the current
Ltd. (the period or
third party) v. after the
General period
Hospital of
the Eastern
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Theater
Command:
Case of
Dispute over
Contract
Nanjing Ibid
Qinhuai
Maoye
It has no
Department
significant
Store v.
impact on the
Nanjing
The verdict profit of the Claims
Putian April 26,
Telecommuni 2022
into effect the current the verdict
cations Co.,
period or
Ltd.: Case of
after the
Dispute over
period
Housing
Lease
Contract
Nanjing Ibid
Putian
Telecommuni
It has no
cations Co.,
significant
Ltd. v.
impact on the
Nanjing
Court- profit of the
Gongmei April 26,
Technology 2022
mediation the current
Co., Ltd. and
period or
Luo Maning:
after the
Case of
period
Dispute over
Sales
Contract
Nanjing Ibid
Putian
Telecommuni
cations Co., It has no
Ltd. v. significant
Nantong impact on the
Huarong profit of the
Case April 26,
Construction 19.56 No Company in -
withdrawn 2022
Group Co., the current
Ltd.: Case of period or
Dispute over after the
Engineering period
Construction
Contract
Nanjing Ibid
Southern
Telecom Co., It has no
Ltd. v. significant
Beikong impact on the
Easycode The verdict profit of the
April 26,
(Beijing) 39.89 No has come Company in In execution
Technology into effect the current
Co., Ltd.: period or
Case of after the
Dispute over period
Sales
Contract
Nanjing It has no Ibid
Southern significant
Court-
Telecom Co., impact on the April 26,
Ltd. v. profit of the 2022
mediation
Demage Company in
Messe: Case the current
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
of Dispute period or
over Sales after the
Contract period
Nanjing Ibid
Putian Telege
Intelligent
Building Ltd.
It has no
v. Yu Yumei,
significant
Peng Xiong
impact on the
and Peng
profit of the
Shikui: Case Case April 26,
of Dispute withdrawn 2022
the current
over
period or
Shareholders'
after the
Liability for
period
Harming the
Interests of
Company
Creditors
Nanjing
Hehao
Communicati
on
Technology
Co., Ltd. and
Nanjing
Putian
Telecommuni
cations
April 26,
Technology 93.39 No Under trial Pending - Ibid
Co., Ltd. (the
third party) v.
Nanjing
Huamai
Technology
Co., Ltd.:
Case of
Dispute over
Sales
Contract
It has no Announceme
Zhang Shuo
significant nt on
v. Nanjing
impact on the Accumulated
Putian
Court- profit of the Litigation
Telecommuni Execution September 2,
cations Co., completed 2022
mediation the current (Announcem
Ltd.: Case of
period or ent No.
Labor
after the 2022-030)
Dispute
period
Jiangsu Ibid
Yanbaifen
It has no
Trading Co.,
significant
Ltd. v.
impact on the
Nanjing
Court- profit of the
Putian Execution September 2,
Telecommuni completed 2022
mediation the current
cations Co.,
period or
Ltd.: Case of
after the
Dispute over
period
Sales
Contract
Hefei It has no Ibid
HTMICRO significant
WAVE Case impact on the September 2,
Technology withdrawn profit of the 2022
Co., Ltd. v. Company in
Nanjing the current
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Putian period or
Telecommuni after the
cations Co., period
Ltd.: Case of
Dispute over
Sales
Contract
Renqiu Ibid
Zenghua
Communicati
It has no
on
significant
Equipment
impact on the
Co., Ltd. v.
profit of the
Nanjing Case September 2,
Putian withdrawn 2022
the current
Telecommuni
period or
cations Co.,
after the
Ltd.: Case of
period
Dispute over
Sales
Contract
Zhu Cuiping Ibid
and other
three people
v. Nanjing
Putian September 2,
Telecommuni 2022
cations Co.,
Ltd.: Case of
Labor
Dispute
Nanjing Ibid
Putian
Telecommuni
cations Co.,
Ltd. v.
Nanjing
It has no
Ai'erte
significant
Photo-
impact on the
Electric Co.,
profit of the
Ltd. and Case September 2,
Nanjing withdrawn 2022
the current
Hehao
period or
Communicati
after the
on
period
Technology
Co., Ltd.:
Case of
Disputes
over Sales
Contract
Nanjing Ibid
Putian
Telecommuni
cations Co.,
It has no
Ltd. v. Great
significant
Wall
impact on the
Broadband
Court- profit of the
Network September 2,
Service Co., 2022
mediation the current
Ltd. Ningbo
period or
Branch and
after the
Great Wall
period
Broadband
Network
Service Co.,
Ltd.: Case of
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Disputes
over Sales
Contract
Nanjing Ibid
Putian
Telecommuni
cations Co.,
Ltd. v. Great
Wall It has no
Broadband significant
Network impact on the
Service Co., Court- profit of the
September 2,
Ltd. Luoyang 28.01 No ordered Company in In execution
Branch and mediation the current
Great Wall period or
Broadband after the
Network period
Service Co.,
Ltd.: Case of
Disputes
over Sales
Contract
Zhu Cuiping Ibid
v. Nanjing
Putian
Telecommuni September 2,
cations Co., 2022
Ltd.: Case of
Labor
Dispute
It has no Ibid
Shen Lei v.
significant
Nanjing
impact on the
Putian
Court- profit of the
Telecommuni Execution September 2,
cations Co., completed 2022
mediation the current
Ltd.: Case of
period or
Labor
after the
Dispute
period
Tianrui Ibid
Longyuan
(Shanghai)
It has no
Electrical
significant
Equipment
impact on the
Co., Ltd. v.
Court- profit of the
Nanjing Execution September 2,
Nanman completed 2022
mediation the current
Electrical
period or
Co., Ltd.:
after the
Case of
period
Dispute over
Sales
Contract
Nanjing Ibid
Nanman It has no
Electrical significant
Co., Ltd. v. impact on the
Nanjing The verdict profit of the Execution
September 2,
Puyan 58.43 No has come Company in not
Electric Co., into effect the current completed
Ltd.: Case of period or
Dispute over after the
Sales period
Contract
Nanjing Court- It has no Execution Ibid
September 2,
Nanman 424.6 No ordered significant not
Electrical mediation impact on the completed
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Co., Ltd. v. profit of the
Ningbo Company in
Tian'an the current
Group period or
Mutual after the
Inductance period
Ware Co.,
Ltd.: Case of
Dispute over
Sales
Contract
Nanjing Ibid
Nanman
It has no
Electrical
significant
Co., Ltd. v.
impact on the
COOEC-
profit of the
Fluor Heavy Case September 2,
Industries withdrawn 2022
the current
Co., Ltd.:
period or
Case of
after the
Disputes
period
over Sales
Contract
Yu Guochao Ibid
v. Nanjing
Nanman
Electrical September 2,
Co., Ltd.: 2022
Case of
Labor
Dispute
Nanjing Ibid
Putian Telege It has no
Intelligent significant
Building Ltd. impact on the
v. Itssky profit of the
Case September 2,
Technology 22.61 No Company in -
withdrawn 2022
Co., Ltd.: the current
Case of period or
Dispute over after the
Sales period
Contract
Nanjing Ibid
Putian Telege
Intelligent It has no
Building Ltd. significant
v. The First impact on the
Company of Court- profit of the
Execution September 2,
China Eighth 49.1 No ordered Company in
completed 2022
Engineering mediation the current
Bureau Ltd.: period or
Case of after the
Dispute over period
Sales
Contract
Nanjing Ibid
Putian
It has no
Network Co.,
significant
Ltd. v.
impact on the
Enjoyor
Court- profit of the
Technology Execution September 2,
Co., Ltd.: completed 2022
mediation the current
Case of
period or
Dispute over
after the
Computer
period
Software
Development
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Contract
Nanjing Ibid
Putian Telege
Intelligent
It has no
Building Ltd.
significant
v. Jiangsu
impact on the
Runyu
Court- profit of the
Zhaoye Execution September 2,
Intelligent completed 2022
mediation the current
Technology
period or
Co., Ltd.:
after the
Case of
period
Dispute over
Sales
Contract
Nanjing
Southern
Telecom Co.,
Ltd. v. Announceme
Qingdao nt on
Huashi Accumulated
Wisdom Litigation
October 27,
Technology 628.54 No Under trial Pending -
Co., Ltd.:
Case of (Announcem
Dispute over ent No.:
Computer 2022-038)
Software
Development
Contract
Ren Haitao,
Hu Jun and
Wang Wei v.
Nanjing
Putian October 27,
Telecommuni 2022
cations Co.,
Ltd.: Case of
Labor
Dispute
Nanjing Ibid
Dianchao
Electric It has no
Technology significant
Co., Ltd. v. impact on the
Nanjing The verdict profit of the
Execution October 27,
Putian 3.28 No has come Company in
completed 2022
Telecommuni into effect the current
cations Co., period or
Ltd.: Case of after the
Dispute over period
Sales
Contract
Nanjing Ibid
Putian
Telecommuni
It has no
cations Co.,
significant
Ltd. v.
impact on the
Beijing
profit of the
Guotie Case October 27,
Huachen withdrawn 2022
the current
Communicati
period or
on
after the
Technology
period
Co., Ltd.:
Case of
Dispute over
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Sales
Contract
Li Jia v. Ibid
Nanjing
Putian
Telecommuni October 27,
cations Co., 2022
Ltd.: Case of
Labor
Dispute
Nanjing Ibid
Putian
Telecommuni
cations Co.,
Ltd. v. China
Broadnet October 27,
Ningxia 2022
Network Co.,
Ltd.: Case of
Dispute over
Sales
Contract
Hu Ibid
Dongshuang
v. Nanjing
Putian
October 27,
Telecommuni 17.78 No Under trial Pending -
cations Co.,
Ltd.: Case of
Labor
Dispute
Nanjing Ibid
Nanman
Electrical
Co., Ltd. v.
Jilin Jihua
Huaqiang October 27,
Construction 2022
Co., Ltd.:
Case of
Dispute over
Sales
Contract
Nanjing Ibid
Nanman
Electrical
Co., Ltd. v.
Wuhan
Putian October 27,
Hongyan 2022
Electric Co.,
Ltd.: Case of
Dispute over
Sales
Contract
Chen Lu v. Ibid
Nanjing
Nanman
Electrical October 27,
Co., Ltd.: 2022
Case of
Labor
Dispute
Other
litigation that
did not meet
the
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
disclosure
criteria
during the
reporting
period
XII. Punishment and rectification
?Applicable □Not applicable
Type of
Date of Disclosure
Name Type Reason investigation/pu Result (if any)
disclosure index
nishment
CNINFO, the
Company’s
Announcement
on Receipt of
the Written
The Company Decision on
Non-
Nanjing Putian was ordered to Administrative
conforming January 28,
Telecommunica Others Others take corrective Supervision
revenue 2022
tions Co., Ltd. regulatory Measures from
recognition
measures Jiangsu
Securities
Regulatory
Bureau
(Announcement
No.: 2022-004)
Description of rectification
?Applicable □Not applicable
According to the requirements of the Written Decision of Jiangsu Securities Regulatory Bureau on
Administrative Supervision Measures, the Company corrected and disclosed accounting errors in the
relevant data of periodic reports from 2017 to 2019 (see the Company's Announcement on Correction
of Previous Accounting Errors issued on April 26, 2022 for details), and submitted a written
rectification report to Jiangsu Securities Regulatory Bureau.
XIII. Credit status of the Company, its controlling shareholders and actual controllers
□Applicable ?Not applicable
XIV. Major related party transactions
?Applicable □Not applicable
Amou
Pricin nt of Propo Appro Settle Availa
Whet
Type g Price relate rtion ved ment ble
Conte her it
of princi of d to the transa metho marke
nt of excee Date
Relate relate ple of relate party amou ction d of t price Disclo
Relati relate ded of
d d relate d transa nt of quota relate of sure
on d the disclo
party party d party ction simila (in d simila index
transa appro sure
transa party transa (in r 10,00 party r
ction ved
ction transa ction 10,00 transa 0 transa transa
quota
ction 0 ctions yuan) ction ctions
yuan)
Anno
Nanji unce
Contr Purch
ng ment
olled asing
Hikvi Telec on
by the goods
sion ommu Expec
same and Bank March
Digita nicati Marke 129.0 129.0 ted
ultima receiv 129 0.20% 2,000 No transf 25,
l ons t price 0 0 Routi
te ing er 2022
Techn produ ne
contro labor
ology cts Relate
lling servic
Co., d
party es
Ltd. Party
Trans
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
action
s in
releas
ed on
CNIN
FO
Contr
Hangz
olled
hou Telec
by the
Hikvi ommu
same Bank March
sion nicati Marke
ultima 63.91 63.91 0.10% No transf 63.91 25, Ibid
Techn ons t price
te er 2022
ology produ
contro
Co., cts
lling
Ltd.
party
The Ibid
Resea
Contr
rch
olled
Institu
by the
te of
same Bank March
China Testin Marke
ultima 0.50 0.5 0.00% No transf 0.50 25,
Electr g fee t price
te er 2022
onics
contro
Techn
lling
ology
party
Group
Corpo
ration
Contr Ibid
Putian olled
High- by the
tech same Bank March
Labor Marke
Indust ultima 25.55 25.55 0.04% No transf 25.55 25,
cost t price
ry te er 2022
Co., contro
Ltd. lling
party
The Ibid
Resea
Contr
rch
olled
Institu Telec
by the
te of ommu
same Bank March
China nicati Marke 903.5 903.5 903.5
ultima 1.03% No transf 25,
Electr ons t price 3 3 3
te er 2022
onics produ
contro
Techn cts
lling
ology Sellin
party
Group g
Corpo goods
ration and 10,00
Contr provid 0 Ibid
Taiji olled ing
Telec
Comp by the servic
ommu
uter same es Bank March
nicati Marke 444.3 444.3 444.3
Corpo ultima 0.51% No transf 25,
ons t price 1 1 1
ration te er 2022
produ
Limit contro
cts
ed lling
party
CETC Contr Telec Ibid
Potevi olled ommu Bank March
Marke 421.3 421.3 421.3
o by the nicati 0.48% No transf 25,
t price 1 1 1
Scien same ons er 2022
ce & ultima produ
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Techn te cts
ology contro
Co., lling
Ltd. party
Hebei Ibid
Far-
Contr
east
olled
Com Telec
by the
munic ommu
same Bank March
ation nicati Marke 214.2 214.2 214.2
ultima 0.24% No transf 25,
Syste ons t price 2 2 2
te er 2022
m produ
contro
Engin cts
lling
eering
party
Co.,
Ltd.
Nanji Ibid
ng Contr
Rail olled
Telec
Transi by the
ommu
t same Bank March
nicati Marke 103.8 103.8 103.8
Syste ultima 0.12% No transf 25,
ons t price 7 7 7
m te er 2022
produ
Engin contro
cts
eering lling
Co., party
Ltd.
Contr Ibid
olled
Nanji by the
ng same Bank March
Labor Marke
Lopu ultima 43.42 43.42 0.05% No transf 43.42 25,
cost t price
Co., te er 2022
Ltd. contro
lling
party
Beijin Ibid
g Taiji Contr
Infor olled
Telec
matio by the
ommu
n same Bank March
nicati Marke
Syste ultima 38.05 38.05 0.04% No transf 38.05 25,
ons t price
m te er 2022
produ
Techn contro
cts
ology lling
Co., party
Ltd.
Liyan Ibid
g
Syste
Contr
m
olled
Equip Telec
by the
ment ommu
same Bank March
Co., nicati Marke
ultima 35.95 35.95 0.04% No transf 35.95 25,
Ltd. ons t price
te er 2022
of the produ
contro
lling
Resea
party
rch
Institu
te
The Contr Telec Ibid
Bank March
Resea by the nicati Marke
rch same ons t price
er 2022
Institu ultima produ
te of te cts
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
China contro
Electr lling
onics party
Techn
ology
Group
Corpo
ration
Zhong Ibid
kexin Contr
Integr olled
ated by the
Circui same Bank March
Marke
t Co., ultima OEM 10.96 10.96 0.01% No transf 10.96 25,
t price
Ltd. te er 2022
Nanji contro
ng lling
Branc party
h
CETC Contr Ibid
Easter olled
Telec
n by the
ommu
Com same Bank March
nicati Marke
munic ultima 5.25 5.25 0.01% No transf 5.25 25,
ons t price
ations te er 2022
produ
Group contro
cts
Co., lling
Ltd. party
CETC Contr Ibid
LES olled
Telec
Infor by the
ommu
matio same Bank March
nicati Marke
n ultima 3.50 3.5 0.00% No transf 3.50 25,
ons t price
Syste te er 2022
produ
m contro
cts
Co., lling
Ltd. party
Nanji Ibid
ng Contr
Putian olled
Telec
Hong by the
ommu
yan same Bank March
nicati Marke
Electr ultima 1.06 1.06 0.00% No transf 1.06 25,
ons t price
ical te er 2022
produ
Techn contro
cts
ology lling
Co., party
Ltd.
Beijin Ibid
g Contr
Putian olled
Taili by the
Com same Bank March
Testin Marke
munic ultima 0.32 0.32 0.00% No transf 0.32 25,
g fee t price
ation te er 2022
Techn contro
ology lling
Co., party
Ltd.
Contr Rent Ibid
Putian
olled and
High-
by the Renti proper
tech Bank March
same ng ty Marke 93.80
Indust 88.24 88.24 100 No transf 88.24 25,
ultima proper mana t price %
ry er 2022
te ty geme
Co.,
contro nt
Ltd.
lling fees
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
party
Contr Ibid
olled
Nanji by the
Leasi
ng same Bank March
ng Marke
Lopu ultima Rent 39.52 39.52 9.44% 200 No transf 39.52 25,
proper t price
Co., te er 2022
ty
Ltd. contro
lling
party
China Ibid
Contr
Potevi
olled
o
by the Intere
Infor
same st on Intere Bank March
matio Marke 774.1 774.1 72.03 774.1
ultima entrus st on 1,000 No transf 25,
n t price 5 5 % 5
te ted loan er 2022
Indust
contro loan
ry
lling
Co.,
party
Ltd.
Total -- -- -- -- -- -- -- --
Details of return of large sales Not applicable
The Company estimates that the total amount of routine related party transactions in 2022 did
not exceed 133 million yuan, including no more than 20 million yuan for the purchase of
products and acceptance of labor services from related parties, no more than 100 million yuan
for the sale of products and provision of labor services to related parties, no more than 2
Actual performance during the million yuan for the rental income from properties leased to related parties, no more than 1
reporting period (if any) for million yuan for the rent and property management services accepted for properties leased
expected routine related party from related parties, and no more than 10 million yuan for the interest paid on entrusted loans
transactions during the period with to related parties. During the reporting period, the actual total amount of routine related party
estimated total amount by category transactions was 33.5981 million yuan, including 2.1896 million yuan for the purchase of
goods and acceptance of labor services, 22.3894 million yuan for the sale of goods and
provision of labor services, 395.2 thousand yuan of rental income, 882.4 thousand yuan for
rent and property management fees, and 7.7415 million yuan for interest paid on entrusted
loans. The actual total amount did not exceed the estimated total amount.
Reasons for the large difference
between the transaction price and
Not applicable
the market reference price (if
applicable)
□Applicable ?Not applicable
During the reporting period, there were no related party transactions of assets or equity acquisition or sale.
□Applicable ?Not applicable
During the reporting period, there were no related party transactions involving joint external investment
?Applicable □Not applicable
Whether there were non-operating related party transactions involving creditor's rights and debts
□Yes ?No
During the reporting period, there was no non-operating related party transactions involving creditor's rights and debts
?Applicable □Not applicable
Deposit business
Amount in the current period
Maximum
Range of Opening Total deposit Total Closing
Related daily deposit
Relation Deposit balance (in amount in withdrawal balance (in
parties limit (in
interest rate 10,000 yuan) the current amount in 10,000 yuan)
period (in the current
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Other
CETC enterprises
Finance Co., controlled by 69,550.04 0.25%-1.1% 715.16 50,073.67 48,759.69 2,407.44
Ltd. the actual
controller
Loan business
Amount in the current period
Total
Loan amount Range of Opening Total loan Closing
Related repayment
Relation (in 10,000 loan interest balance (in amount in balance (in
parties amount in
yuan) rate 10,000 yuan) the current 10,000 yuan)
the current
period (in
period (in
Credit granting or other financial business
Total amount (in Actual amount incurred
Related parties Relation Business type
Other enterprises
CETC Finance Co.,
controlled by the actual Credit granting 20,000 0
Ltd.
controller
□Applicable ?Not applicable
There was no deposit, loan, credit or other financial business between the financial company controlled by the Company and its related
parties.
□Applicable ?Not applicable
There were no other major related party transactions during the reporting period.
XV. Major contracts and their performance
(1) Trusteeship
□Applicable ?Not applicable
There was no trusteeship during the reporting period.
(2) Contracting
□Applicable ?Not applicable
There was no contracting during the reporting period.
(3) Leasing
?Applicable □Not applicable
Description of leasing
During the reporting period, the Company and its subsidiaries incurred rental expenses of 940,700 yuan and rental
revenue of 4,187,900 yuan.
Items that brought profit or loss to the Company amounting to more than 10% of the total profit of the Company in the reporting period
□Applicable ?Not applicable
The Company did not have any leasing item that brought profit or loss to the Company amounting to more than 10% of the total profit
of the Company in the reporting period.
?Applicable □Not applicable
Unit: RMB 10,000
External guarantee (excluding the guarantee for subsidiaries) of the Company and its subsidiaries
Name of Disclosu Guarante Actual Actual Guarante Collatera Counter- Guarante Whether Whether
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
guarante re date e date of guarante e type l (if any) guarante e period the it is
e of amount occurren e e (if any) guarante guarante
recipient announc ce amount e has ed by
ement been related
related fulfilled parties
to
guarante
e
amount
The Company’s guarantee for its subsidiaries
Disclosu
re date
of Whether Whether
Name of announc Actual Actual the it is
Guarante Counter-
guarante ement date of guarante Guarante Collatera Guarante guarante guarante
e guarante
e related occurren e e type l (if any) e period e has ed by
amount e (if any)
recipient to ce amount been related
guarante fulfilled parties
e
amount
Novemb
Nanjing
er 12,
Southern April 20, October
Telecom 2021 28, 2021
July 22,
Co., Ltd.
February
Nanjing 23, 2022
Southern April 20, February -
Telecom 2021 15, 2022 Novemb
Co., Ltd. er 16,
Total amount of Total actual amount
guarantees approved of guarantees for
for subsidiaries 0 subsidiaries during 1,000
during the reporting the reporting period
period (B1) (B2)
Total amount of
Total actual balance
approved guarantees
of guarantees for
for subsidiaries at
the end of the
end of the reporting
reporting period
period (B4)
(B3)
Guarantee of subsidiaries to subsidiaries
Disclosu
re date
of Whether Whether
Name of announc Actual Actual the it is
Guarante Counter-
guarante ement date of guarante Guarante Collatera Guarante guarante guarante
e guarante
e related occurren e e type l (if any) e period e has ed by
amount e (if any)
recipient to ce amount been related
guarante fulfilled parties
e
amount
Total amount of the Company’s guarantees (that is, the total of the first three items)
Total amount of Total actual amount
approved guarantees of guarantees during
during the reporting the reporting period
period (A1+B1+C1) (A2+B2+C2)
Total amount of
Total actual balance
approved guarantees
of guarantees at the
at the end of the 0 0
end of the reporting
reporting period
period (A4+B4+C4)
(A3+B3+C3)
Where:
Balance of guarantees provided to
shareholders, actual controllers and their
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
related parties (D)
Balance of debt guarantees directly or
indirectly provided to the guaranteed
recipients with asset-liability ratio exceeding
Explanation of the guarantee liability
incurred during the reporting period or
evidence of the possibility of joint and None
several liability (if any) for unexpired
guarantee contracts
Explanation of providing external guarantees
None
in violation of prescribed procedures (if any)
Details of adopting compound guarantees
(1) Entrusted financial management
□Applicable ?Not applicable
There was no entrusted financial management during the reporting period.
(2) Entrusted loans
□Applicable ?Not applicable
There was no entrusted loan during the reporting period.
□Applicable ?Not applicable
There was no other major contract during the reporting period.
XVI. Explanations of other major matters
?Applicable □Not applicable
Related query index of the information
Matter Date of disclosure
disclosure website
Announcement on the Resignation of
the Chairman of the Board of January 13, 2022 CNINFO (www.cninfo.com.cn)
Directors
Announcement of the Resolutions of
the 55th Meeting of the 7th Board of January 19, 2022 CNINFO (www.cninfo.com.cn)
Directors
Notice on Convening the 1st
Extraordinary General Meeting of January 19, 2022 CNINFO (www.cninfo.com.cn)
Shareholders in 2022
Announcement on Receipt of the
Written Decision on Administrative
January 28, 2022 CNINFO (www.cninfo.com.cn)
Supervision Measures from Jiangsu
Securities Regulatory Bureau
Annual Performance Forecast for
January 29, 2022 CNINFO (www.cninfo.com.cn)
Announcement of the Resolutions of
the 1st Extraordinary General February 15, 2022 CNINFO (www.cninfo.com.cn)
Meeting of Shareholders in 2022
Announcement of the Resolutions of
the 56th Meeting of the 7th Board of February 15, 2022 CNINFO (www.cninfo.com.cn)
Directors
Announcement on the Progress of
February 24, 2022 CNINFO (www.cninfo.com.cn)
Guarantees for Subsidiaries
Announcement of the Resolutions of
the 57th Meeting of the 7th Board of March 25, 2022 CNINFO (www.cninfo.com.cn)
Directors
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Announcement on Expected Routine
March 25, 2022 CNINFO (www.cninfo.com.cn)
Related Party Transactions in 2022
Announcement of the Resolutions of
the 58th Meeting of the 7th Board of April 26, 2022 CNINFO (www.cninfo.com.cn)
Directors
Announcement of the Resolutions of
the 24th Meeting of the 7th Board of April 26, 2022 CNINFO (www.cninfo.com.cn)
Supervisors
Annual Report 2021 April 26, 2022 CNINFO (www.cninfo.com.cn)
Announcement on Provision for
April 26, 2022 CNINFO (www.cninfo.com.cn)
Impairment of Assets in 2021
Announcement on Correction of
April 26, 2022 CNINFO (www.cninfo.com.cn)
Previous Accounting Errors
Notice on Convening the 2021
Annual General Meeting of April 26, 2022 CNINFO (www.cninfo.com.cn)
Shareholders
Announcement on Expected
Continuous Related Party
April 26, 2022 CNINFO (www.cninfo.com.cn)
Transactions with CETC Finance Co.,
Ltd. in 2022
Announcement on Accumulated
April 26, 2022 CNINFO (www.cninfo.com.cn)
Litigation
Report for the First Quarter of 2022 April 29, 2022 CNINFO (www.cninfo.com.cn)
Announcement of Abnormal
May 13, 2022 CNINFO (www.cninfo.com.cn)
Fluctuations in Stock Trading
Announcement of Resolution of 2021
Annual General Meeting of May 21, 2022 CNINFO (www.cninfo.com.cn)
Shareholders
and Continuous Supervision
Summary Report of CITIC Securities
Co., Ltd. on Major Asset Sale and May 21, 2022 CNINFO (www.cninfo.com.cn)
Related Party Transactions of
Nanjing Putian Telecommunications
Co., Ltd.
Announcement on Convening the
May 26, 2022 CNINFO (www.cninfo.com.cn)
Semi-annual Performance Forecast
July 15, 2022 CNINFO (www.cninfo.com.cn)
for 2022
Announcement on the Change of
August 9, 2022 CNINFO (www.cninfo.com.cn)
Accounting Firm
Announcement of the Resolutions of
the 60th Meeting of the 7th Board of August 9, 2022 CNINFO (www.cninfo.com.cn)
Directors
Announcement of Resolutions of the
Board of Directors in Semi-annual August 23, 2022 CNINFO (www.cninfo.com.cn)
Report
Announcement of Resolutions of the August 23, 2022
Board of Supervisors in Semi-annual CNINFO (www.cninfo.com.cn)
Report
Semi-annual Report for 2022 August 23, 2022 CNINFO (www.cninfo.com.cn)
Announcement on Bankruptcy and August 23, 2022
CNINFO (www.cninfo.com.cn)
Liquidation of Subsidiaries
Announcement on Accumulated
September 2, 2022 CNINFO (www.cninfo.com.cn)
Litigation
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Prompt Announcement on Proposed
Transfer of State-owned Equity
September 15, 2022 CNINFO (www.cninfo.com.cn)
Interests without Compensation and
Change in Controlling Shareholders
Announcement of the Resolutions of
the 27th Meeting of the 7th Board of September 29, 2022 CNINFO (www.cninfo.com.cn)
Supervisors
Announcement of the Resolutions of September 29, 2022
the 62nd Meeting of the 7th Board of CNINFO (www.cninfo.com.cn)
Directors
Notice on Convening the 2nd September 29, 2022
Extraordinary General Meeting of CNINFO (www.cninfo.com.cn)
Shareholders in 2022
Summary of Acquisition Report of
Nanjing Putian Telecommunications September 30, 2022 CNINFO (www.cninfo.com.cn)
Co., Ltd.
Legal Opinions on Exemption of
CETC Glarun Group Co., Ltd. from October 13, 2022 CNINFO (www.cninfo.com.cn)
the Issue of a Tender Offer
Brief Report of Nanjing Putian October 13, 2022
Telecommunications Co., Ltd. on CNINFO (www.cninfo.com.cn)
Changes in Equity
Acquisition Report of Nanjing Putian October 13, 2022
CNINFO (www.cninfo.com.cn)
Telecommunications Co., Ltd.
Legal Opinion on the Acquisition October 13, 2022
Report of Nanjing Putian CNINFO (www.cninfo.com.cn)
Telecommunications Co., Ltd.
Announcement of the Resolutions of
the 1st Meeting of the 8th Board of October 19, 2022 CNINFO (www.cninfo.com.cn)
Supervisors
Announcement of the Resolutions of October 19, 2022
the 2nd Extraordinary General CNINFO (www.cninfo.com.cn)
Meeting of Shareholders in 2022
Announcement of the Resolutions of October 19, 2022
the 1st Meeting of the 8th Board of CNINFO (www.cninfo.com.cn)
Directors
Announcement on Accumulated
October 27, 2022 CNINFO (www.cninfo.com.cn)
Litigation
Report for the Third Quarter of 2022 October 29, 2022 CNINFO (www.cninfo.com.cn)
Announcement of the Resolutions of
the 3rd Meeting of the 8th Board of November 17, 2022 CNINFO (www.cninfo.com.cn)
Directors
Notice on Convening the 3rd
Extraordinary General Meeting of November 29, 2022 CNINFO (www.cninfo.com.cn)
Shareholders in 2022
Announcement of the Resolutions of
the 3rd Extraordinary General December 16, 2022 CNINFO (www.cninfo.com.cn)
Meeting of Shareholders in 2022
Announcement on the Progress of
Related Party Transactions for
Entrusted Loans Provided by December 28, 2022 CNINFO (www.cninfo.com.cn)
Controlling Shareholders to the
Company
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
XVII. Major issues of the Company's subsidiaries
□Applicable ?Not applicable
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Section VII Changes in Shares and Shareholders
I. Changes in shares
Unit: share
Before the change Increase or decrease (+, -) in this change After the change
Conversio
Issue of n of
Proportio Share Proportio
Quantity new provident Others Subtotal Quantity
n offering n
shares fund into
shares
I.
Unlisted 115,000,0 115,000,0
tradable 00 00.00
shares
of 53.49% 53.49%
founders
Where:
Shares 115,000,0 115,000,0
held by 00 00
the state
Shares
held by
domestic
legal
persons
Shares
held by
overseas
legal
persons
Others
held by
legal
persons
held by
employee
s
Preferred
shares or
other
II. Listed
tradable 46.51% 46.51%
shares
Ordinary
shares in
Renminbi
shares 100,000,0 100,000,0
listed in 00 00
China
shares
listed
overseas
III. Total 215,000,0 215,000,0
number of 00 00
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
shares
Reasons for changes in shares
□Applicable ?Not applicable
Approval of share changes
□Applicable ?Not applicable
Transfer of shares
□Applicable ?Not applicable
Effect of share changes on financial indicators such as basic and diluted earnings per share and net assets per share attributable to
ordinary shareholders of the Company for the most recent year and the most recent period
□Applicable ?Not applicable
Other contents that the Company deems necessary to be disclosed or required to be disclosed by the securities regulatory authority
□Applicable ?Not applicable
□Applicable ?Not applicable
II. Issuance and listing of securities
□Applicable ?Not applicable
structure of assets and liabilities of the Company
□Applicable ?Not applicable
□Applicable ?Not applicable
III. Shareholders and actual controllers
Unit: share
Total
Total number of
number of preferred
Total ordinary shareholder
Total number of preferred
number of shareholder s whose
shareholders whose voting
ordinary s at the end voting
rights were restored at the
shareholder of last rights were
s at the end month restored at
before the disclosure date
of the before the the end of
of the annual report (if
reporting disclosure the
any) (see Note 8)
period date of the reporting
annual period (if
report any) (see
Note 8)
Shareholders holding more than 5% of the shares or the top 10 shareholders' shareholdings
Number of Pledge, marking or
Increase or
shares held Number of Number of freezing
decrease
Name of Type of Shareholdi at the end unlisted listed and
during the
shareholder shareholder ng ratio of the tradable tradable Shares
reporting Quantity
reporting shares held shares held status
period
period
China
Potevio State-
Informatio owned 115,000,00 115,000,00
n Industry legal 0 0
Co., Ltd. person
Shenwan Overseas 4,602,100.0 - 4,602,100.0
Hongyuan legal 0 1,814,720.0 0
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Securities person 0
(H.K.) Ltd.
GUOTAI
JUNAN
Overseas
SECURITI 2,552,458.0 - 2,552,458.0
legal 1.19% 0
ES (HONG 0 242,448.00 0
person
KONG)
LIMITED
Natural
Zheng 2,449,739.0 2,449,739.0
person in 1.14% 0.00 0
Enyue 0 0
China
Natural
Sun 2,080,000.0 2,080,000.0
person in 0.97% 80,000.00 0
Huiming 0 0
China
Natural
Gu Jinhua person in 0.87% 0.00 0
China
BOCI
Overseas
SECURITI 1,266,945.0 1,266,945.0
legal 0.59% 0.00 0
ES 0 0
person
LIMITED
Guosen
Securities
Overseas
(Hong 1,180,082.0 - 1,180,082.0
legal 0.55% 0
Kong) 0 648,600.00 0
person
Brokerage
Co., Ltd.
Natural
Zhen 1,002,300.0 1,002,300.0
person in 0.47% 10,400.00 0
Hongquan 0 0
China
Natural
Xiang Yan person in 0.42% 905,602.00 0.00 0 905,602.00
China
Strategic investors or
general legal entities
becoming top 10
shareholders as a result of None
the placement of new
shares (if any) (see Note
Description of the above- Among the top 10 shareholders, China Potevio Information Industry Co., Ltd. was not related to
mentioned shareholders' other shareholders and was not a party acting in concert. The Company did not know whether other
association or concerted shareholders were related to each other or were parties acting in concert.
actions
Explanation of the above
shareholders' involvement
in proxy/entrusted voting None
rights and abstention from
voting rights
Special note on the
existence of repurchase
special accounts of the top None
(see Note 10)
Shareholding of the top 10 tradable shareholders
Type of shares
Number of listed and tradable shares held at the end of the reporting
Name of shareholder Type of
period Quantity
shares
Domestic
Shenwan Hongyuan listed
Securities (H.K.) Ltd. foreign
shares
Domestic
GUOTAI JUNAN
listed
SECURITIES (HONG 2,552,458.00 2,552,458.00
foreign
KONG) LIMITED
shares
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Domestic
listed
Zheng Enyue 2,449,739.00 2,449,739.00
foreign
shares
Domestic
listed
Sun Huiming 2,080,000.00 2,080,000.00
foreign
shares
Domestic
listed
Gu Jinhua 1,871,371.00 1,871,371.00
foreign
shares
Domestic
BOCI SECURITIES listed
LIMITED foreign
shares
Domestic
Guosen Securities (Hong
listed
Kong) Brokerage Co., 1,180,082.00 1,180,082.00
foreign
Ltd.
shares
Domestic
listed
Zhen Hongquan 1,002,300.00 1,002,300.00
foreign
shares
Domestic
listed
Xiang Yan 905,602.00 905,602.00
foreign
shares
Domestic
listed
Xia Zulin 900,000.00 900,000.00
foreign
shares
Description of the
relationship or concerted
action among the top 10
shareholders with
unlimited tradable shares, The Company did not know whether the above shareholders were related to each other or were
and between the top 10 acting in concert.
shareholders with
unlimited tradable shares
and the top 10
shareholders
Description of the
participation of the top 10
ordinary shareholders in
None
margin financing and
securities lending business
(if any) (see Note 4)
Whether the Company's top 10 ordinary shareholders and top 10 shareholders holding ordinary shares with unlimited selling
conditions entered into agreed repurchase transactions during the reporting period
□Yes ?No
The top 10 ordinary shareholders of the Company and the top 10 shareholders holding ordinary shares with unlimited selling
conditions did not conduct agreed repurchase transactions during the reporting period.
Nature of controlling shareholder: central state-owned holding
Type of controlling shareholder: legal person
Legal
Name of controlling
representative/person Date of establishment Organization code Main business
shareholder
in charge
The company primarily
China Potevio
engages in the
Information Industry Xu Xiaoming July 23, 2003 91110000710931555N
manufacturing and
Co., Ltd.
trading of information
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
and communication
products, as well as
relevant technology
research and services.
Its business scope
covers various industry
sectors, including
information and
communication,
broadcasting and
television, industrial
informatization,
financial electronics,
and new energy.
Shareholdings in other
domestic and foreign
listed companies which
the controlling
shareholder controlled
or in which the
controlling shareholder
held an equity stake
during the reporting
period
Changes of controlling shareholder during the reporting period
□Applicable ? Not applicable
China Potevio Information Industry Co., Ltd., the former controlling shareholder of the Company, transferred 115 million state-
owned legal person shares of the Company to CETC Glarun Group Co., Ltd. for free. As of April 18, 2023, the transfer formalities
were completed. CETC Glarun Group Co., Ltd. holds 115 million shares of the Company, accounting for 53.49% of the total share
capital of the Company, and it is the controlling shareholder of the Company.
Nature of actual controller: central state-owned assets management institution
Type of actual controller: legal person
Legal
Name of actual
representative/person Date of establishment Organization code Main business
controller
in charge
Mainly engaged in the
construction of national
important military and
civilian large-scale
electronic information
China Electronics Unified social credit systems, and the
Technology Group Chen Zhaoxiong February 25, 2002 code development and
Corporation 91110000710929498G production of major
equipment,
communication and
electronic equipment,
software and key
components.
Other domestic and foreign listed companies controlled by the actual controller: Hangzhou Hikvision
Equity interests in other Digital Technology Co., Ltd., Taiji Computer Corporation Limited, CETC Digital Technology Co., Ltd.,
domestic and foreign CETC Cyberspace Security Technology Co., Ltd.; Glarun Technology Co., Ltd., Sun Create Electronics
listed companies Co., Ltd., Chengdu Spaceon Electronics Co., Ltd., CETC Potevio Science & Technology Co., Ltd.,
controlled by the actual Phoenix Optics Co., Ltd., CETC Acousto-optic Technology Co., Ltd., Hebei Sinopack Electronic
controller during the Technology Co., Ltd., Eastern Communications Co., Ltd., Eastcompeace Technology Co., Ltd., Guobo
reporting period Electronics Co., Ltd., Hangzhou Ezviz Network Co., Ltd., Chengdu SIWI Science and Technology Co.,
Ltd.
Change of actual controller during the reporting period
□Applicable ?Not applicable
The actual controller of the Company was not changed during the reporting period.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Ownership and control relationship between the Company and the actual controller in the form of a block diagram
State-owned Assets Supervision and
Administration Commission of the
State Council
China Electronics Technology Group
Corporation
China Potevio Information Industry
Group Co., Ltd.
China Potevio Information Industry
Co., Ltd.
Nanjing Putian Telecommunications
Co., Ltd.
Control of the Company by the actual controller through trust or other asset management modes
□Applicable ?Not applicable
pledged 80% of the number of shares held by them
□Applicable ?Not applicable
□Applicable ?Not applicable
and other entities making commitments
□Applicable ?Not applicable
IV. Implementation of share repurchase during the reporting period
Implementation progress of share repurchase
□Applicable ?Not applicable
Implementation progress of reducing repurchased shares by centralized bidding transaction
□Applicable ?Not applicable
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Section VIII Information on Preferred Shares
□Applicable ?Not applicable
The Company had no preferred shares during the reporting period.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Section IX Information on Bonds
□Applicable ?Not applicable
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
Section X. Financial Report
I. Audit report
Type of audit opinion Standard unqualified
Signing date of audit report April 18, 2023
WUYIGE CERTIFIED PUBLIC ACCOUNTANTS
Name of audit institute
LLP.
Serial of Auditing Report DAXIN SHEN ZI [2023]No. 1-01215
Name of CPA Wang Fangquan Guo Zhigang
Auditor’s Report
DAXIN SHEN ZI [2023]No. 1-01215
To the Shareholders of Nanjing Putian Telecommunications Co., Ltd.:
I. Opinion
We have audited the financial statements of Nanjing Putian Telecommunications Co., Ltd (hereafter referred to as “the Company”),
which comprise the consolidated and the Company's balance sheets as at December 31, 2022, the consolidated and the Company's
statements of income, the consolidated and the Company's statements of cash flows and the consolidated and the Company's statements
of changes in equity for the year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Company as at December
Enterprises.
II. Basis for Opinion
We conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the Code of Ethics for Chinese Certified Public Accountants and have fulfilled our
other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements
of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters.
(I) Revenue recognition
As stated in notes III (24) of the financial statements and notes V(34), Operating revenue and operating costs, the sales revenue of the
company in 2022 was 879,56.60 ten thousand yuan.
Operating income is one of the company's key performance indicators and an important part of the source of profit. There is an inherent
risk that management manipulates revenue recognition for specific purposes, and we therefore identify revenue recognition as a critical
audit event.
(1) Understand and evaluate the revenue process of transaction booking and key internal controls of management.
(2) Select samples of revenue transactions recorded in the reporting period, check sales orders, sales invoices, shipping records,
customer receipt documents and other materials, and evaluate whether relevant revenue recognition conforms to your company's
accounting policies for revenue recognition.
(3) Perform analytical review procedures for operating revenue and gross profit margin based on product, customer and other
dimensions to judge the rationality of changes in operating revenue and gross profit margin.
(4) Confirm the sales revenue generated by major customers and the balance of accounts receivable to evaluate the authenticity and
accuracy of your company's revenue recognition.
(5) Perform sample tests on sales revenue recognized around the balance sheet date to assess whether sales revenue is recognized in
the appropriate period.
(II) Provision for bad debts of accounts receivable
Event description
The relevant disclosures are detailed in notes III (11) and V (4) to the financial statements.
As of December 31, 2022, the book balance of accounts receivable of the company is 49,850.52 ten thousand yuan, the balance of bad
debt reserve is 19,388.90 ten thousand yuan, and the book value is 30,461.62 ten thousand yuan, accounting for 34.17% of the total
assets
The management of your company (hereinafter referred to as the management) measures its loss reserve in accordance with the
expected credit loss amount equivalent to the entire duration based on a single account receivable or a combination of accounts
receivable based on the credit risk characteristics of each account receivable. For the receivables that measure expected credit losses
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
on a single item basis, the management estimates the expected cash flow by taking into account reasonable and evidence -based
information about past events, current conditions and future economic conditions, and determines the allowance for bad debts
accordingly. For accounts receivable that measure expected credit loss on the basis of portfolio, the management divides the portfolio
based on aging, refers to historical credit loss experience and makes adjustments according to forward-looking estimates, and prepares
a comparison table between aging accounts receivable and expected credit loss rate to determine the allowance for bad debts.
Due to the significant amount of accounts receivable and the significant management judgment involved in the impairment test of
accounts receivable, we identified the impairment of accounts receivable as a critical audit matter.
For the impairment of accounts receivable, our audit procedures mainly include:
(1) Understand and evaluate the design and operational effectiveness of key internal controls related to accounts receivable bad debt
reserve;;
(2) For the accounts receivable for which bad debt provision is made according to individual assessment, we have sampled and reviewed
the basis for the management to calculate the recoverable amount, including the management's assessment of the customer's credit risk
based on the customer's current credit status, repayment willingness and repayment ability;
(3) For the accounts receivable set aside for bad debts according to the aging combination, we sampled the key information such as
aging and overdue days；
(4) We reviewed management's calculation of allowance for doubtful accounts receivable;
(5) Implement confirmation of large and important accounts receivable, and evaluate the rationality of the management's provision for
bad debts of accounts receivable based on procedures such as post-period collection and long-term reason analysis of accounts
receivable.
IV. Other Information
The directors of the Company are responsible for the other information. The other information comprises all of the information included
in the annual report other than the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Directors and Those Charged with Governance for the Financial Statements
The directors of the Company are responsible for the preparation of financial statements that give a true and fair view in accordance
with Accounting Standards for Business Enterprises, and for such internal control as the directors determine is necessary to enable the
preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the Company or to cease operations or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with auditing standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with auditing standards, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
A. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the directors.
D. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our a uditor’s
report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusion s
are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
E. Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
Full text of the Annual Report 2022 of Nanjing Putian Telecommunications Co., Ltd.
F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit a nd
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the
audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expec ted
to outweigh the public interest benefits of such communication.
WUYIGE CERTIFIED PUBLIC ACCOUNTANTS LLP.
Certified Public Accountant of China
(Engagement partner)
Certified Public Accountant of China
China . Beijing
Date: April 18, 2023
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.Consolidated balance sheet as at December 31, 2022(Expressed in
Renminbi Yuan)
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Monetary unit: RMB Yuan
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
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 April 18, 2023.
The Company includes Nanjing Putian Changle Communication Equipment Co., LTD., Nanjing
Putian Tianji Building Intelligence Co., LTD., and other seven subsidiaries in the scope of the current
consolidated financial statements, as detailed in Notes VI and VII of the financial statements.
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.
The company advocates the concept of big market. On the basis of maintaining the advantages
of traditional industrial market, it further enriches military connectors, optical modules and other high
gross profit products, expands key industries and key customers, strengthens the collaboration of the
upstream and downstream industrial chain of China Electronics, constantly increases the investment
in technology research and development, and strives to make the main business more refined and
stronger. 12 products of 5 categories were successfully selected into the preferred catalogue of the
internal distribution of China Electrical Science and Technology, and became qualified suppliers of
many member units of China Electrical Science and Technology. Obtaining the military
confidentiality Class II qualification, to actively develop the military business market to lay the
foundation.
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
of the Company as of December 31, 2022, the operating results and cash flows of the year from January
to December 2022 and other relevant information.
(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) 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.
(VI) 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.
subsidiary 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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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 venture. 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.
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
(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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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.
Of the invested entity has joint control, refers to an arrangement returns have a significant impact
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
benefits 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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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:
related to 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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
difference 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.
is 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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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;
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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) Explanation of changes in major accounting policies and accounting estimates
Since the first implementation of Interpretation of Accounting Standards No. 15 in 2022, the
Company has not involved the adjustment of the financial statements at the beginning of the first
implementation year.
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 13%、6%、
(VAT) the tax law. After deducting the input tax allowed to be deducted in the 5%、3%
current 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
The Company 25%
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
in November, 2021, valid for 3 years. From 2021 to 2023, the enterprise income tax shall be paid at
the reduced tax rate of 15%.
enterprise certificate in November, 2021, valid for 3 years. From 2021 to 2023, the enterprise income
tax shall be paid at the reduced tax rate of 15%.
welfare enterprise, which complies with the provisions of Guo Shui Fa [2007] No. 067 and enjoys
the preferential tax policies of immediate collection and refund of value-added tax and plus
deduction of wages of the disabled.
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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 on hand 343.39 343.39
Cash in bank 164,384,398.00 180,458,727.47
Other cash and bank balances 9,479,083.96 8,206,459.51
Total 173,863,825.35 188,665,530.37
Including: Total amount deposited abroad
Deposit money with finance company 24,074,373.95 7,151,551.17
Details of other cash and bank balances
Items Closing balance Opening balance
Deposit for L/G 6,779,083.96 8,205,628.07
Frozen funds 2,700,000.00
Others 831.44
Total 9,479,083.96 8,206,459.51
Note: Other cash and bank balances are restricted funds.
Items Closing balance Opening balance
fair value and whose changes are included in current profits 20,000,000.00
and losses
Including: Debt Instrument Investment
Equity instrument investment
Others 20,000,000.00
whose changes are booked into current profit or loss
Including: Debt Instrument Investment
Equity instrument investment
Others
Total 20,000,000.00
(1) Categories
Items Closing balance Opening balance
Bank acceptance 2,222,820.00
Trade acceptance 26,807,458.99 14,424,413.04
Less: Provision for bad debts 1,340,372.95 721,220.66
Total 27,689,906.04 13,703,192.38
(2) Provision for bad debts of notes receivable
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Closing balance
Categories Book balance Provision for bad debts
Carrying
Provision amount
Amount % to total Amount
proportion (%)
Receivables with
provision made on an
individual basis
Receivables with
provision for bad debts 29,030,278.99 100.00 1,340,372.95 4.62 27,689,906.04
made on a collective basis
Total 29,030,278.99 —— 1,340,372.95 4.62 27,689,906.04
Opening balance
Categories Book balance Provision for bad debts
Carrying
Provision amount
Amount % to total Amount
proportion (%)
Receivables with
provision made on an
individual basis
Receivables with
provision for bad debts 14,424,413.04 100.00 721,220.66 5.00
made on a collective basis
Total 14,424,413.04 —— 721,220.66 5.00
Closing balance
Items Provision for bad
Book balance Provision proportion (%)
debts
Trade acceptance 26,807,458.99 1,340,372.95 5.00
Bank acceptance 2,222,820.00 ——
Total 29,030,278.99 1,340,372.95 ——
(Continued)
Opening balance
Items Provision for bad
Book balance Provision proportion (%)
debts
Trade acceptance 14,424,413.04 721,220.66 5.00
Bank acceptance
Total 14,424,413.04 721,220.66 ——
(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
Receivables with provision made on
an individual basis
Receivables with provision for bad 721,220.66 619,152.29 1,340,372.95
debts made on a collective basis
Trade acceptance 721,220.66 619,152.29 1,340,372.95
Total 721,220.66 619,152.29 1,340,372.95
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
(4) 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 The confirmation
shall be terminated at the amount has not been
Items
end of the period terminated at the end of
the period
Bank acceptance 16,329,248.60
Trade acceptance 9,410,000.00
Total 25,739,248.60
(1) Disclosure according to aging
Ages Closing balance Opening balance
Within 1 year 185,688,715.74 174,417,246.90
Over 5 years 129,317,629.98 112,796,028.54
Less: Allowance for doubtful accounts 193,889,013.84 196,835,247.01
Total 304,616,212.04 334,586,551.93
(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
Aging combination 422,934,162.33 100.00 118,317,950.29 27.98
Total 498,505,225.88 100.00 193,889,013.84 38.89
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
Aging combination 453,042,019.34 100.00 118,455,467.41 26.15
Total 531,421,798.94 100.00 196,835,247.01 37.04
Provision for Provision
Debtors Book balance Ages Reasons
bad debts proportion
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
(%)
Dongpo Xi Laos Co., Unable
Ltd. to recover
Unable
Mr. Xu 17,591,683.74 17,591,683.74 Over 5 years 100
to recover
China Tower Unable
Corporation Ltd. to recover
Jilin Lidi Information Unable
Technology Co., Ltd to recover
China Railway
Communication 4-5 year
Unable
Signal Shanghai 5,241,400.50 5,241,400.50 3,114,600.94，over 5 100
to recover
Engineering Group years 2,126,799.56
Co., Ltd
Unable
Other 13,210,215.85 13,210,215.85 100
to recover
Total 75,571,063.55 75,571,063.55
① Aging combination
Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
Within 1
year 185,668,485.74
Over 5 years 83,127,104.01 100.00 83,127,104.01 79,257,618.32 100.00 79,257,618.32
Total 422,934,162.33 27.98 118,317,950.29 453,042,019.34 26.15 118,455,467.41
(3) Bad debt provision
Change in current period
Opening
Categories Write- Closing balance
balance Accrual Recovery
Other
off changes
Receivables with
provision made on an 78,379,779.60 -1,115,039.30 75,571,063.55
individual basis
Receivables with
provision made on a 118,455,467.41 7,898,015.43 118,317,950.29
collective basis
Total 196,835,247.01 6,782,976.13 193,889,013.84
(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
Dongpo Xi Laos Co., Ltd. 19,708,086.54 3.95 19,708,086.54
Mr. Xu 17,591,683.74 3.53 17,591,683.74
China Tower Corporation Ltd. 13,819,926.92 2.77 13,819,926.92
Henan Branch of China United 8,828,589.22 8,828,589.22
Network Communication Co., Ltd.
Shanghai Potevio Co., Ltd. 8,755,534.00 1.76 8,755,534.00
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Proportion to the total balance of Provision for bad
Debtors Book balance
accounts receivable (%) debts
Total 68,703,820.42 13.78 68,703,820.42
Items Closing balance Opening balance
Notes receivable (Bank acceptance) 30,668,999.36 40,852,223.88
(1) Age analysis
Closing balance Opening balance
Ages
Amount % to total Amount % to total
Within 1 year 6,186,93i0.98 32.42 18,003,886.43 79.50
Over 3 years 3,494,882.49 18.32 2,391,641.84 10.56
Total 19,081,824.22 100.00 22,645,816.66 100.00
Advances paid with an account age of more than 1 year and significant amount
Creditor Debtors Closing balance Ages Reasons
Nanjing Putian The settlement
Telecommunications Huawei Technology Co., Ltd 8,300,290.11 1-2 years period has not
Co., Ltd. reached
(2) Details of the top 5 debtors with largest balances
Proportion to the total
Debtors Closing balance balance of advances
paid (%)
Huawei Technology Co., Ltd 8,300,290.11 43.50
Nanjing Qixun Electric Co., Ltd. 473,980.00 2.48
Tico Digital Science and Technology Limited Company 359,200.00 1.88
Shenzhen Huifung Intelligent System Co., Ltd. 324,300.00 1.70
Beijing Guozhisheng Technology Co., Ltd. 220,008.00 1.15
Total 9,677,778.11 50.71
Items Closing balance Opening balance
Interest receivable
Dividends receivable
Other receivables 56,070,287.57 57,562,392.95
Less: Allowance for doubtful accounts 44,353,986.38 40,934,197.78
Total 11,716,301.19 16,628,195.17
（1）Other receivables categorized by nature
Categories Closing balance Opening balance
Provisional payment receivable 39,559,820.38 40,950,602.33
Deposit 13,816,308.52 12,054,412.80
Travel allowance 608,332.22 905,189.12
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Categories Closing balance Opening balance
Other 2,085,826.45 3,652,188.70
Less: Allowance for doubtful accounts 44,353,986.38 40,934,197.78
Total 11,716,301.19 16,628,195.17
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 8,928,722.74 7,008,502.69
Over 5 years 35,748,383.17 34,316,502.98
Less: Allowance for doubtful accounts 44,353,986.38 40,934,197.78
Total 11,716,301.19 16,628,195.17
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Items 12-month Lifetime expected credit Total
Lifetime expected credit
expected credit losses (credit not
losses (credit impaired)
losses impaired)
Opening balance 648,426.35 40,285,771.43 40,934,197.78
Opening balance in
the current period
--Transferred to
-616,275.16 616,275.16
phase II
--Transferred to
phase III
--Reversed to phase
II
--Reversed to phase I - -
Provision made in
the current period
Provision recovered
in current period
Provision written off
in current period
Other changes -32,151.19 -32,151.19
Closing balance 12,259,677.83 32,094,308.55 44,353,986.38
（4）Bad debt provision
Change in current period
Opening Cancel Closing
Categories
balance Accrual
To withdraw or
after
Other balance
turn back changes
verification
Provision for
bad debts
（5）Details of the top 5 debtors with largest balances
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Proportion to
the total
Nature of Closing balance of Provision for
Debtors Ages
receivables balance other bad debts
receivables
(%)
Beijing Likangpu Temporary
Communication payment 28,912,122.71 Over 5 years 51.56 28,912,122.71
Equipment Co., Ltd. receivable
China Potevio Security
Company Limited deposit
Nanjing Putian Temporary
Communication payment 805,545.63 1.44 805,545.63
Over 5 years
Industry Co., Ltd. receivable
Construction
headquarters of Security
Shenzhen Metro Group deposit
Co., Ltd
Deposit
Beijing Lekang Real Within 1 year
and
Estate Management 336,978.03 41,474.22; 2-3 years 0.60 16,848.90
advance
Co.,Ltd. 295,503.81
payment
Total 32,602,878.97 —— 58.15 30,765,028.87
(1) Details
Closing balance Opening balance
Items Provision for Carrying Provision for Carrying
Book balance Book balance
write-down amount write-down amount
Raw
material 27,176,586.65 11,431,889.29 15,744,697.36 31,234,604.53 9,134,918.13 22,099,686.40
s
Work in
process
Goods 102,664,462.2
on hand 7
Goods
dispatch 59,779,466.22 85,709,151.25 58,758,181.09 113,482,534.16
ed
Products
on
consign 1,064,779.21 804,691.99 260,087.22 1,242,747.33 804,691.99 438,055.34
ment for
sales
Total 111,721,631.26 186,531,565.70
(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
Opening current period current period Closing
Items
balance Reversal or balance
Accrual Others Others
write-off
Raw 9,134,918.13 2,409,624.20
materials
Work in 2,797,339.41
process
Goods on 40,226,500.64 1,137,219.61 41,363,720.25
hand
Goods 58,758,181.09 3,538,119.92 59,779,466.22
dispatched
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Increase amount in the Decrease amount in the
Opening current period current period Closing
Items
balance Reversal or balance
Accrual Others Others
write-off
Products on
consignment 804,691.99 804,691.99
for sales
Total 111,721,631.26 7,084,963.73 2,629,487.83 116,177,107.16
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 provision
Reasons for the reversal of
Specific basis for determining net for depreciation of
Item inventory depreciation
realizable value inventory sold in the
provisions in the current period
current period
During the current
Net realizable value is determined by the The net realizable value of
period, the inventory that
estimated selling price of the relevant inventories for which
Raw was set aside for
finished products less the estimated costs provision was made for
materials inventory depreciation at
to be incurred to completion, estimated inventory depreciation in
the beginning of the
sales expenses and relevant taxes previous periods increased
period has been sold
The net realizable value of the inventory During the current
The net realizable value of
is determined by the estimated selling period, the inventory that
inventories, which has been
Goods price of the inventory less estimated was set aside for
provided for the decline of
dispatched selling expenses and related taxes in the inventory depreciation at
inventories in previous
normal course of production and the beginning of the
periods, increased
operation period has been sold
The net realizable value of the inventory During the current
The net realizable value of
is determined by the estimated selling period, the inventory that
inventories for which
Goods on price minus the estimated selling was set aside for
provision was made for
hand expenses and relevant taxes in the inventory depreciation at
inventory depreciation in
normal course of production and the beginning of the
previous periods increased
operation period has been sold
Items Closing balance Opening balance
Input tax to be deducted 3,432,231.67 5,526,501.01
Advance payment of income tax 2,236,499.06
Total 3,432,231.67 7,763,000.07
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Increase/Decrease
Investmen Closing
Opening t income Adjustment in Change Cash Closing balance of
Investees Investment Investment recognized other s in dividend/Profi Provision for
balance Others balance provision for
s increased s decreased under comprehensiv other t declared for impairment impairment
equity e income equity distribution
method
I.
Subsidiar
y
Nanjing
Putian 1,294,510.0 1,294,510.0 1,294,510.0
Hotel Co., 0 0 0
Ltd.
II. Joint
ventures
SEI-
Nanjing
Putian 10,422,193.1 10,422,321.8
Optical 5 0
Network
Co., Ltd.
Total 128.65
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
The reason
designated
Amount of as
Other
other measuremen
comprehensi
Dividen The comprehensi t at fair value
Closing Opening The cumulative ve income is
Items d cumulati ve income and its
balance balance income ve gains
loss
transferred change
transferred
to retained
to retained included in
earnings
earnings other
comprehensi
ve income
Nanjing
Yuhua
Electroplating
Factory
Hangzhou
Honyar
Electrical
Co.,Ltd.
Beijing
Likong
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 21,510,162.44 21,510,162.44
(1) Disposal
(2) Other transfer out
II.Accumulated depreciation and amortization
(1) Accrual or amortization 854,578.64 854,578.64
(2) Transfer of fixed assets 7,159,235.28 7,159,235.28
(1) Disposal
(2) other transfer out
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Items Buildings and structures Total
III,Provision for impairment
IV.Carrying amount
Categories Closing balance Opening balance
Fixed assets 98,643,676.71 118,527,119.27
Liquidation of fixed assets
Less: Impairment provision 725,962.56 725,962.56
Total 97,917,714.15 117,801,156.71
(1) Fixed assets
Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
I. Original book value
balance
(1) Acquisition 704,325.85 1,311,380.56 177,335.20 61,769.91 191,596.37 2,446,407.89
(2) Transfer of 889,175.09 889,175.09
projects under
construction
(3) Others 14,956,490.90 23,108,200.87 38,064,691.77
(1) Disposal or 65,688.07 1,066,835.42 1,367,566.80 1,475,445.01 110,159.49 4,085,694.79
scrapping
(2) Transfer into 21,510,162.44 21,510,162.44
investment real estate
(3) Others 9,801,192.39 112,790.27 28,150,709.11 38,064,691.77
(4) Changes in the 330,832.62 330,832.62
scope of consolidation
II.Accumulated
depreciation
balance
（1）Accrual 5,709,950.58 1,544,614.96 1,163,195.66 110,442.62 106,275.61 8,634,479.43
（2）Others 5,867,263.24 18,983,373.78 24,850,637.02
(1) 8,849.64 823,102.39 1,511,539.87 1,417,509.85 96,871.91 3,857,873.66
Disposal/Scrapping
（2）Transfer to 7,159,235.28 7,159,235.28
investment real estate
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Buildings and Machinery Electronic Transport Other
Items Total
structures equipment equipment facilities equipment
（3）Others 139,394.62 135,941.71 24,575,300.69 24,850,637.02
（4）Change in 325,034.80 325,034.80
consolidation scope
III.Provision for
impairment
balance
（1）Accrual
（2）Others 11,550.65 11,550.65
（1）
Disposal/Scrapping
（2）Others 11,048.35 502.30 11,550.65
IV. Carrying amount
balance
Original book Accumulated Provision for Carrying
Items Remarks
value depreciation impairment amount
Machinery equipment 219,385.00 202,981.30 11,550.65 4,853.05
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 598,370.18 395,309.03 186,838.56 16,222.59
Items Carrying amount Reasons for unsettlement
Buildings and structures 35,460,964.00 In process
Categories Closing balance Opening balance
Construction in progress project 292,996.23
Engineering materials
Less: Impairment provision
Total 292,996.23
(1) Basic information of construction projects in progress
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Closing balance Opening balance
Items Provision Provision
Book Carrying Book Carrying
for for
balance amount balance amount
impairment impairment
Beijing Fen Yang Technology Co., Ltd.
CRM system
（2）Changes in major construction projects under construction
Opening Transferred to fixed Closing
Projects Budgets Increase Decrease
balance assets balance
Data center 889,175.09 889,175.09
exhibition hall 900,000.00
project
CRM system of
Beijing Fen Yang
Technology Co.,
LTD
(Continued)
Accumulated
Amount of
Completion amount of Annual
Accumulated input borrowing cost Fund
Items percentage borrowing capitalization
to budget (%) capitalization in source
(%) cost rate (%)
current period
capitalization
Data center exhibition
hall project
CRM system of Beijing
Fen Yang Technology 100.00
Co., LTD
(1) Details
Items Software Land use right Total
I. Original book value
（1）Acquisition 390,996.23 390,996.23
（1）Disposal
II.Accumulated depreciation
（1）Acquisition 371,990.34 634,289.61 1,006,279.95
（1）Disposal
III. Carrying amount
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Other
Items Opening balance Increase Amortization Closing balance
decrease
Renovation expenditure 4,973,968.20 442,028.87 1,462,172.62 3,953,824.45
(1) Details of unrecognized deferred tax assets
Items Closing balance Opening balance
Deductible temporary difference 357,780,952.89 350,212,296.71
Deductible losses 297,743,081.95 247,021,502.77
Total 655,524,034.84 597,233,799.48
(2) Maturity years of deductible losses of unrecognized deferred tax assets
Maturity years Closing balance Opening balance Remarks
Year 2021 3,321,233.55
Year 2022 6,340,354.15
Year 2023 4,729,689.33 6,538,713.94
Year 2024 125,729,965.87 110,600,873.27
Year 2025 5,019,673.59
Year 2026 93,920,899.53 115,200,654.27
Year 2027 56,541,198.42
Year 2029 1,622,476.49
Year 2030 1,188,328.53
Year 2031 10,250,907.64
Year 2032 3,759,616.14
Total 297,743,081.95 247,021,502.77
(1) Details
Borrowing conditions Closing balance Opening balance
Pledged borrowings 50,000,000.00
Mortgaged borrowings 32,800,000.00 24,000,000.00
Secured borrowings 30,036,727.77 175,000,000.00
Total 112,836,727.77 199,000,000.00
Items Closing balance Opening balance
Trade acceptance 1,251,741.17
(1) Classified by account age
Items Closing balance Opening balance
Within 1 year (including 1 year) 291,414,050.48 368,737,153.57
More than 1 year 179,453,232.59 169,626,589.37
Total 470,867,283.07 538,363,742.94
(2) Significant accounts payable with age over one year
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Name of creditor Closing balance Reasons for unsettlement
SEI-Nanjing Putian Optical Network Co., Material payment/According to the contract
Ltd. schedule, both parties have not settled
Material payment/According to the contract
Potevio Company Limited 18,016,137.43
schedule, both parties have not settled
Nanjing Xingping Industry Co., Ltd. 10,259,917.14 Not yet settled
Material payment/According to the contract
Xi'an Huasheng Communication Co., Ltd. 5,924,163.75
schedule, both parties have not settled
Total 54,458,943.98
Items Closing balance Opening balance
Within 1 year (including 1 year) 240,585.08
More than 1 year
Total 240,585.08
Items Closing balance Opening balance
Payment for goods 15,048,811.36 18,884,024.60
(1) Details
Opening Closing
Items Increase Decrease
balance balance
Short-term employee benefits 19,445,171.68 154,105,025.36 156,076,309.18 17,473,887.86
Post-employment benefits - defined
contribution plan
Total 19,445,171.68 175,998,530.64 177,969,814.46 17,473,887.86
(2) Details of short-term employee benefits
Opening Closing
Items Increase Decrease
balance balance
Wage, bonus, allowance and subsidy 3,625,349.25 107,021,305.11 3,625,349.25
Employee welfare fund 8,691,111.11 8,691,111.11
Social insurance premium 11,170,555.27 11,170,555.27
Including: Medicare premium 9,867,524.53 9,867,524.53
Occupational injuries premium 628,235.38 628,235.38
Maternity premium 674,795.36 674,795.36
Others
Housing provident fund 3,294,519.74 10,180,057.52 10,257,712.21 3,216,865.05
Trade union fund and employee 10,987,355.16
education fund 10,616,677.03
Compensation for termination of labor
relations
Others 14,996.53 8,764,073.23 8,764,073.23 14,996.53
Total 19,445,171.68
(3) Details of defined contribution plan
Opening
Items Increase Decrease Closing balance
balance
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Basic endowment insurance premium 19,937,983.24
Unemployment insurance premium 856,693.72 856,693.72
Company annuity payment 1,098,828.32 1,098,828.32
Total 21,893,505.2
Items Closing balance Opening balance
VAT 3,347,506.52 1,007,843.11
Enterprise income tax 2,752,400.75 774,605.96
Individual income tax 185,396.12 298,962.05
Urban maintenance and construction tax 411,899.55 166,309.25
Housing property tax 265,078.20 409,138.78
Land use tax 76,065.10 83,316.67
Education surcharge&local education
surcharge
Other tax 60,103.57 24,242.50
Total 7,390,521.21 2,881,067.35
Items Closing balance Opening balance
Interest payable
Dividend payable 1,692,213.38 2,142,213.38
Other payables 57,514,067.70 61,864,581.70
Total 59,206,281.08 64,006,795.08
(1) Dividend payable
Items Closing balance Opening balance
Dividend of ordinary shares 1,692,213.38 2,142,213.38
(2) Other payables
Items Closing balance Opening balance
Temporary receipts payable 34,476,014.33 42,582,100.22
Unsettled installation cost 8,160,449.74 7,085,494.06
Deposits 6,273,154.05 4,797,260.63
Operating expenses 7,860,725.92 4,643,277.05
Others 743,723.66 2,756,449.74
Total 57,514,067.70 61,864,581.70
Items Closing balance Opening balance
Long-term payables due within one year 2,656,474.95
Items Closing balance Opening balance
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
VAT collected in advance 1,691,302.29 2,454,923.31
Opening
Items Closing balance 利率区间
balance
Pledged borrowings 105,800,000.00
Movements
accumulation
Opening Issue Closing
Items fund
balance of Bouns balance
Reserve Others Subtotal
new shares
transferred to
shares
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
Other capital reserve 60,077,533.45 766,258.68 59,311,274.77
Total 197,864,174.08 766,258.68 197,097,915.40
Note: Disposal of subsidiaries resulted in a decrease of 766,258.68 in capital reserve.
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Current period cumulative
Less: Other
comprehensive
Less: Other
Current income recorded
comprehensive Attributable Closing
Items Opening balance period in the previous Less: Attributable
income in the to non- balance
cumulative period is Income to parent
previous period controllin g
before transferred to tax company
is transferred to shareholders
income tax retained income
profit and loss
in the current
period
Other comprehensive income
-6,819,637.82 4,964,727.82 4,964,727.82 -1,854,910.00
reclassified into profit and loss
Including: The amount of financial
assets reclassified into other -1,854,910.00 -1,854,910.00
comprehensive income
Differences in translation of
-4,964,727.82 4,964,727.82 4,964,727.82
foreign currency financial statements
Total -6,819,637.82 4,964,727.82 4,964,727.82 -1,854,910.00
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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
-341,446,683.34 -202,680,309.64
period
Add: Increase due to adjustment (or less: decrease)
Opening balance after adjustment -341,446,683.34 -202,680,309.64
Add: Net profit attributable to owners of the parent
-47,390,545.55 -138,766,373.70
company
Less: Appropriation of statutory surplus reserve
Withdraw arbitrary surplus reserve
Dividend payable on ordinary shares
Common stock dividends converted into capital
stock
Closing balance -388,837,228.89 -341,446,683.34
(1) Details
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 862,124,004.15 686,483,649.52 896,485,694.43 705,367,055.78
II.Other operations 17,442,044.81 12,123,980.90 20,643,980.06 17,130,594.90
Total 879,566,048.96 698,607,630.42 917,129,674.49 722,497,650.68
(2) Statement of operating income deduction
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Current Year (Ten Previous year (ten Specific
Items Specific deduction
thousand Yuan) thousand Yuan) deduction
Amount of operating income 87,956.60 91,712.97
Total amount of business income deduction items 1,086.60 1,088.50
Proportion of the total amount of deductible items in the operating revenue (%) 1.24% / 1.19% /
I. Business income unrelated to main business
from leasing fixed assets, intangible assets and packaging, selling materials, and water and electricity of
exchanging non-monetary assets with materials, operating entrusted management 1,086.60 tenants was 3.136,500 yuan. 861.50
business, etc., as well as income that is included in the main business income but is Materials sales revenue 7,443,900
outside the normal operation of the listed company. yuan.
previous fiscal year. service income
Subtotal of business income unrelated to main business 1,086.60 1,088.50
II. Income without commercial substance
III. Other income that has nothing to do with the main business or has no commercial
substance
Amount after deduction of operating income 86,870.00 90,624.47
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
(3) Operating income for the current period is classified according to the time of revenue
recognition
Revenue recognition time Main operations Other operations
Confirm at a certain point 862,124,004.15 17,442,044.81
Preceding period
Items Current period cumulative
comparative
Urban maintenance and construction tax 1,616,471.39 1,646,043.10
Education surcharge&local education surcharge 1,154,331.76 1,175,291.31
Housing property tax 1,226,460.58 1,515,792.33
Land use tax 472,310.06 498,237.90
Other tax 431,367.74 402,132.06
Total 4,900,941.53 5,237,496.70
Preceding period
Items Current period cumulative
comparative
Employee benefits 51,675,564.01 59,605,079.90
Business entertainment 8,102,994.12 11,019,689.73
Travelling expenses 3,495,888.41 6,418,642.09
Office expenses 2,327,400.49 5,363,559.72
Sales service charges 4,273,777.24 2,926,661.81
Conference expenses 420,557.41 889,635.62
Promotion expenses 572,798.35 804,186.18
Equipment maintain fees 12,303.98 57,709.51
Others 4,450,696.99 4,339,933.54
Total 75,331,981.00 91,425,098.10
Preceding period
Items Current period cumulative
comparative
Employee benefits 44,564,523.09 48,553,979.21
Depreciation and amortization 6,115,801.58 6,228,837.26
Consulting, intermediary and legal fees 3,040,563.68 2,489,981.97
Office expenses 3,823,473.00 2,216,172.51
Lease expenses 2,210,789.52 1,436,824.81
Business entertainment 939,099.40 1,371,565.12
Travelling expense 1,053,212.45 980,357.83
Funding for Party Building 60,551.22 500,644.92
Others 1,382,250.37 3,441,652.39
Total 63,190,264.31 67,220,016.02
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Preceding period
Items Current period cumulative
comparative
Employee benefits 36,089,623.23 44,723,969.01
Travelling expenses 934,536.37 1,741,927.99
Depreciation and amortization 1,467,608.27 1,597,958.93
Material use 1,085,053.28 2,299,851.88
Intermediate test fee 1,681,442.67 131,608.52
Others 1,432,215.52 4,977,219.16
Total 42,690,479.34 55,472,535.49
Preceding period
Items Current period cumulative
comparative
Interest expenditures 10,747,567.42 8,198,913.03
Less: Interest income 781,316.52 1,231,541.18
Losses on foreign exchange 6,594.36 3,832.90
Less: gain on foreign exchange 10.20
Financial institution fees 105,949.33 184,069.24
Others 2,648.38 158,654.57
Total 10,081,432.77 7,313,928.56
Preceding Related to
Current period
Items period assets/Related to
cumulative
comparative earnings
Related to
Government grants related to income 1,702,585.06 2,409,577.05
earnings
Withholding and payment of individual tax service
fee return
Others 4,000.00
Total 1,732,297.20 2,431,022.05
Preceding period
Items Current period cumulative
comparative
Investment income from long-term equity
investments under equity method
Investment gains from the disposal of trading
financial assets
Investment income from derecognition of financial
assets at amortized cost
Others 480,631.61
Total 817,965.74 2,434,520.91
Preceding period
Items Current period cumulative
comparative
Bad debt loss of notes receivable -619,152.29 -35,481.13
Bad debt loss of accounts receivable -6,782,976.13 -44,144,093.60
Bad debt loss of other receivables -3,451,939.79 -2,116,627.64
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Preceding period
Items Current period cumulative
comparative
Total -10,854,068.21 -46,296,202.37
Preceding period
Items Current period cumulative
comparative
Inventory write-down loss -7,084,963.73 -61,026,996.13
Impairment losses on long-term equity investments -1,294,510.00
Total -8,379,473.73 -61,026,996.13
Preceding period
Items Current period cumulative
comparative
Gain on disposal of fixed assets 555,016.98 -134,892.35
Preceding Amount included
Current period
Items period in non-recurring
cumulative
comparative profit or loss
Unpaid payables 99,519.59 99,519.59
Penalty income 8,890.51 6,600.00 8,890.51
Others 3,093,180.22 478,955.18 3,093,180.22
Total 3,201,590.32 485,555.18 3,201,590.32
Preceding Amount included
Current period
Items period in non-recurring
cumulative
comparative profit or loss
Penalty expenditures 2,000.00 51,075.65 2,000.00
Donation expenditures 2,000.00
Overdue expenditure 161,691.92 10,353.90 161,691.92
Others 458,112.32 97,245.58 458,112.32
Total 621,804.24 160,675.13 621,804.24
(1) Details
Preceding period
Items Current period cumulative
comparative
Current income tax expense calculated in accordance
with the tax law and relevant provisions
Deferred income tax expense
Others 3,188,452.95
Total 8,581,183.35 5,789,994.37
(2) Accounting profit and income tax expense adjustment process
Items Amount
Profit before tax -28,785,156.35
Income tax expenses based on tax rate applicable to the parent company -7,196,289.09
Effect of different tax rate applicable to subsidiaries -3,053,754.73
Effect of prior income tax reconciliation 3,188,452.95
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Items Amount
The effect of non-taxable income
The impact of non-deductible costs, expenses and losses 2 415 974.44
The effect of deductible temporary differences or deductible losses of deferred tax
assets not recognized in the previous period
The effect of deductible temporary differences or deductible losses on deferred tax 23 899,419.62
assets was not recognized in the current period
Deduction of R&D expenditures -10,672,619.84
Income tax expenses 8,581,183.35
(1) Other cash receipts related to operating activities
Current period Preceding period
Items
cumulative comparative
Government grants 363,345.72 682,172.46
Interest income 1,460,033.50 1,231,541.18
Incomings and outgoings 33,075,711.39 11,457,279.40
Others 7,725,241.18 5,607,786.16
Total 42,624,331.79 18,978,779.20
(2) Other cash payments related to operating activities
Current period Preceding period
Items
cumulative comparative
Out-of-pocket expenses 50,305,591.96 52,821,136.05
Incomings and outgoings 32,253,196.38
Others 4,013,738.38 775,548.40
Total 86,572,526.72 53,596,684.45
(3) Other cash payments related to financing activities
Current period Preceding period
Items
cumulative comparative
Installment financing lease payments 10,561,405.18
Others 1,077,527.58
Total 1,077,527.58 10,561,405.18
(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 -37,366,339.70 -140,094,713.27
Add: Provision for assets impairment loss 8,379,473.73 57,308,316.79
Provision for credit impairment loss 10,854,068.21 46,296,202.37
Depreciation of fixed assets, depletion of oil and gas
assets, depreciation of productive biological assets, and 9,489,058.06 9,285,082.58
depreciation of investment real estate
Depreciation of right-of-use assets
Amortization of intangible assets 1,006,279.95 972,371.92
Amortization of long-term prepayments 1,462,172.62 1,750,744.95
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Current period Preceding period
Items
cumulative comparative
Loss on disposal of fixed assets, intangible assets and
-555,016.98 134,892.35
other long-term assets (Less: gains)
Fixed assets retirement loss (Less: gains) 48,177.46
Gains from derecognition of financial assets at amortized
-2,434,384.72
cost
Losses on changes in fair value (Less: gains)
Financial expenses (Less: gains) 10,747,567.42 8,202,745.93
Investment losses (Less: gains) -817,965.74 -136.19
Decrease of deferred tax assets (Less: increase)
Increase of deferred tax liabilities (Less: decrease)
Decrease of inventories (Less: increase) 15,635,851.24 -44,197,910.17
Decrease of operating receivables (Less: increase) 24,164,049.92 139,371,979.70
Increase of operating payables (Less: decrease) -73,773,886.58 -138,312,721.00
Others
Net cash flows from operating activities -30,726,510.39 -61,717,528.76
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 164,384,741.39 180,459,070.86
Less: Cash at the beginning of the period 180,459,070.86 170,062,746.87
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 -16,074,329.47 10,396,323.99
(2) Cash and cash equivalents
Current period Preceding period
Items
cumulative comparative
I. Cash 164,384,741.39 180,459,070.86
Including: Cash on hand 343.39 343.39
Cash in bank on demand for payment 164,384,398.00 180,458,727.47
Other monetary funds readily available for payment
Money deposited with a central bank that can be used for
payment
Deposit of interbank funds
Interbank debits
II. Cash equivalents
Including: bond investments maturing within three months
III. Cash and cash equivalents at the end of the period 164,384,741.39 180,459,070.86
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Current period Preceding period
Items
cumulative comparative
Including: restricted use of cash and cash equivalents by
the parent company or subsidiaries within the Group
Items Closing carrying amount Reasons for restrictions
Other cash and bank balances 2,700,000.00 Involving litigation bank freeze
Other cash and bank balances 6,779,083.96 Guarantee deposit
Fixed assets 24,947,499.64 Property and land mortgage loans
Intangible assets 1,568,556.10 Property and land mortgage loans
Total 35,995,139.70 --
Note: We remind users of financial statements that, apart from the above assets with title or use right restrictions, in
order to entrust the parent company to apply for loans from Bank of Beijing, Jiangning Sub-branch, the Company
pledged its holding equities to the parent company, which include equity of Nanjing South Telecommunications Co
Ltd. 33.17 million yuan(96.99% shares of stock equity), equity of Nanjing Putian Telege Intelligent Building Co., Ltd.
Ltd. 5.07 million yuan(50.7% shares of stock equity), equity of Nanjing Putian Network Co., Ltd. 7.80 million yuan(78%
shares of stock equity), equity of Nanjing Mennekes Electric Co., Ltd. 41.14 million yuan (100% shares of stock equity ).
The Company has registered the equity pledge at Nanjing Jiangning Market Supervision Administration. Those equities
are with use restrictions before released.
(1) Monetary items in foreign currencies
Closing balance in RMB equivalent at the
Items Exchange rate
foreign currencies end of the period
Cash and bank balances 103,322.38 6.9646 719,599.05
Including: USD 103,322.38 6.9646 719,599.05
(1) Details
The amount recorded in
Presented
Items Amounts under
the current profit and
loss
VAT refund 1,253,284.01 Other income 1,253,284.01
Subsidies for high-tech enterprises 260,000.00 Other income 260,000.00
Government subsidies related to income 139,183.65 Other income 139,183.65
Subsidies for vocational training 31,202.84 Other income 31,202.84
Job stabilization subsidy 8,500.00 Other income 8,500.00
Recruit registered poor employees to reduce
taxes on entry
Others 2,614.56 Other income 2,614.56
Total 1,702,585.06 1,702,585.06
VI. Changes in the consolidation scope
procedure according to the decision Letter (2022) Su 0104 Breaking 37 of Qinzhun District People's
Court of Nanjing, Jiangsu Province, and handed over to the administrator. In the current period, its
profit and loss and cash flow from January to October are included in the merger model Park.
completed in May 2022, and the profit and loss and cash flow from January to May during the
liquidation period are included in the merger scope in the current period.
VII. Interest in other entities
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
(I) Interest in subsidiaries
（1）Details
Main Holding proportion (%)
Place of Business Acquisition
Subsidiaries operating
registration nature Direct Indirect Method
place
Nanjing Putian
Changle Nanjing Nanjing
Manufacture 50.70 Set up
Telecommunications City City
Equipment Co., Ltd.
Nanjing Putian
Nanjing Nanjing
Telege Intelligent Manufacture 45.77 Set up
City City
Building Ltd.
Nanjing South
Nanjing Nanjing
Telecommunications Manufacture 96.99 3.01 Set up
City City
Company Limited
Merger of
enterprises
Nanjing Mennekes Nanjing Nanjing
Manufacture 100.00 under
Electric Co., Ltd. City City
different
control
Nanjing Putian Nanjing Nanjing
Manufacture 78.00 Set up
Network Co., Ltd. City City
Merger of
Nanjing Putian enterprises
Nanjing Nanjing
Datang Information Manufacture 40.00 under
City City
Electronic Co., Ltd. different
control
Chongqi ng Chongqi ng
Chongqing Puhua
City City
Information Manufacture 100.00 Set up
Chongqin g Chongqin g
Technology Co., Ltd
City City
（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% 15,289,539.86 10,846,600.00 57,155,622.81
Building Ltd.
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Closing balance
Subsidiarie Non-
s Non-current Current current
Current assets Total assets Total liabilities
assets liabilities liabilitie
s
Nanjing
Putian
Telege 220,616,216.6 35,771,362.3 256,387,579.0 150,992,737.0 150,992,737.0
Intelligent 9 1 0 0 0
Building
Ltd.
(continued)
Opening balance
Subsidiarie Non-
s Non-current Current current
Current assets Total assets Total liabilities
assets liabilities liabilitie
s
Nanjing
Putian
Telege 211,702,890.6 35,559,085.8 247,261,976.4 150,061,012.1 150,061,012.1
Intelligent 2 4 6 4 4
Building
Ltd.
Current period cumulative
Subsidiaries Total
Operating Cash inflow from
Net profit comprehensive
revenue operating activities
income
Nanjing Putian Telege Intelligent
Building Ltd.
(continued)
Preceding period comparative
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 10,422,321.80 10,422,193.15
Proportionate shares in the following items:
Net profit 128.65 136.19
Total comprehensive income 128.65 136.19
VIII. 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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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 have 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.
in Notes V(3), V(4) and V(7) to these financial statements.
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
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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, 12.50% of the Company's accounts receivable as of June 30, 2022 (June 30,
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 1-
Carrying Over
amount not yet Within 1 year 3
amount 3 years
discounted years
Short-term 112,836,727.77 112,836,727.77 112,836,727.77
borrowings
Notes payable
Accounts 470,867,283.07 470,867,283.07 470,867,283.07
payable
Other payable 59,206,281.08 59,206,281.08 59,206,281.08
Non-current
liabilities due within
one year
Subtotal 642,910,291.92 642,910,291.92 642,910,291.92
(Continued)
Opening balance
Items Contract 1-
Carrying Over
amount not yet Within 1 year 3
amount 3 years
discounted years
Short-term 199,000,000.00 203,055,109.72 203,055,109.72
borrowings
Notes payable 1,251,741.17 1,251,741.17 1,251,741.17
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Accounts 538,363,742.94 538,363,742.94 538,363,742.94
payable
Other payable 64,006,795.08 64,006,795.08 64,006,795.08
Non-current 2,656,474.95 2,717,664.49 2,717,664.49
liabilities due within
one year
Subtotal 805,278,754.14 809,395,053.40 809,395,053.40
(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.
IX. Fair value
(I) Details of fair value of assets and liabilities at fair value at the balance sheet date
Level 1 fair Level 2 fair Level 3 fair
Closing
Items value value value
balance
measurement measurement measurement
I. Recurring fair value measurement
investments
Total assets at recurring fair value
measurement
(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.
Equipment Co., Ltd., due to deterioration of operating environment and conditions and financial
conditions of the invested enterprises, the Company measured at zero value.
X. Related party relationships and transactions
(I) Parent company
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Registered Voting right
Holding
proportion
Parent Business capital（Ten proportion over
Place of registration over the
company nature thousand the Company
Company
yuan） (%)
(%)
China Potevio
Zhongguancun Science Information
Company 190,305.00 53.49 53.49
and Technology Park, industry
Limited
Haidian District, Beijing
The ultimate control party is China Electronics Technology Group Co., LTD.
China Potevio Company Limited, the former controlling shareholder of the company, transfers
capital of the Company, it is the controlling shareholder of the Company.
(II) Status of the Company's subsidiaries
See Note "VII. 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 "VII. 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 Hongyan Electrical Technology Co., An affiliated company of the ultimate controlling party
Ltd.
Nanjing Hikvision Digital Technology Co., Ltd. An affiliated company of the ultimate controlling party
Nanjing Putian Communication Technology Industrial An affiliated company of the ultimate controlling party
Park Co., Ltd.
China Electronics Technology Finance Co., Ltd. An affiliated company of the ultimate controlling party
The 23rd Research Institute of China Electronics An affiliated company of the ultimate controlling party
Technology Group Co., Ltd
Potevio Information Technology Co., Ltd. An affiliated company of the ultimate controlling party
Beijing Putian Taili Telecommunications Technology An affiliated company of the ultimate controlling party
Co.,Ltd.
Hangzhou HONYAR Electrical Co., Ltd. An affiliated company of the ultimate controlling party
Eastern Communications Co., Ltd. An affiliated company of the ultimate controlling party
Putian EASTERN Communications Group Co., Ltd. An affiliated company of the ultimate controlling party
Potevio Industrial Co., Ltd. An affiliated company of the ultimate controlling party
Potevio Telecommunications Co., Ltd. An affiliated company of the ultimate controlling party
Beijing Putian Desheng Technology Incubator Co., An affiliated company of the ultimate controlling party
Ltd.
Chengdu Westone Information Security Technology An affiliated company of the ultimate controlling party
Co., Ltd.
Hebei FAR-EAST Communication SYSTEM An affiliated company of the ultimate controlling party
Engineering Co., Ltd.
Nanjing Rail Transit System Engineering Co., Ltd. An affiliated company of the ultimate controlling party
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Related parties Relationships with the Company
NANJING LES INFORMATION TECHNOLOGY An affiliated company of the ultimate controlling party
CO.,LTD
Eccom Network SYSTEM Ltd. An affiliated company of the ultimate controlling party
Nanjing Lopu Co., Ltd. An affiliated company of the ultimate controlling party
Sun Create Electronics Co., Ltd. An affiliated company of the ultimate controlling party
China KEY SYSTEM & Integrated Circuit Co., Ltd. An affiliated company of the ultimate controlling party
Nanjing Branch
Wuhan Putian New Energy Co., Ltd. An affiliated company of the ultimate controlling party
Shanghai Potevio Network Technoligies Limited An affiliated company of the ultimate controlling party
Shanghai Potevio Co., Ltd. An affiliated company of the ultimate controlling party
Gemplus (Tianjin) New Technologies Co., Ltd. An affiliated company of the ultimate controlling party
Beijing Taiji Information System Technology Co., Ltd. An affiliated company of the ultimate controlling party
Hangzhou Hikvision Technology Co., Ltd. An affiliated company of the ultimate controlling party
China Putian Corporation An affiliated company of the ultimate controlling party
Nanjing Putian Information Technology Co., Ltd. An affiliated company of the ultimate controlling party
Beijing Likangpu Telecommunications Equipment Co.,
A subsidiary of the company
Ltd.
(V) Related party transactions
Content of Current period Preceding period
Related parties
transaction cumulative comparative
Nanjing Hikvision Digital Technology Co., Ltd. Telecommunication
products
Hangzhou Hikvision Technology Co., Ltd. Telecommunication
products
Nanjing Putian Hongyan Electrical Technology Co., Telecommunication
Ltd. products
Potevio Company Limited Telecommunication
products
The 23rd Research Institute of China Electronics
Testing fee 5,000.00 23,018.87
Technology Group Co., Ltd
Potevio Information Technology Co., Ltd. Telecommunication
products
Nanjing Putian Communication Technology
Labor expense 255,471.65 258,113.16
Industrial Park Co., Ltd.
Current Preceding
Content of
Related parties period period
transaction
cumulative comparative
The 28th Research Institute of China Telecommunication
Electronics Technology Group Co., Ltd products 9,035,292.74
Telecommunication
Taiji Computer Corporation Limited
products 4,443,100.78
CETC Potevio SCIENCE&TECHNOLOGY Telecommunication
Co., Ltd. products 4,213,115.06
Hebei FAR-EAST Communication SYSTEM Telecommunication
Engineering Co., Ltd. products 2,142,224.08 4,606,252.16
Nanjing Rail Transit System Engineering Telecommunication
Co., Ltd. products 1,038,659.29 1,328,017.68
Nanjing Lopu Co., Ltd. Labor expense
Beijing Taiji Information System Technology Telecommunication
Co., Ltd. products 380,530.98
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
System Equipment Co.,LTD of The 28th Telecommunication
Research Institute (Liyang) products 359,462.86
The 55th Research Institute of China Telecommunication
Electronics Technology Group Co., Ltd products 131,858.40
China KEY SYSTEM & Integrated Circuit Substitute
Co., Ltd. Nanjing Branch processing 109,562.74 74,165.34
Putian EASTERN Communications Group Telecommunication 23,588.42
Co., Ltd. products 52,532.81
CETC LES Information System Company Telecommunication
Limited products 35,018.40
Nanjing Putian Hongyan Electrical Telecommunication
Technology Co., Ltd. products 10,619.47
Beijing Putian Taili Telecommunications 3,150.44 7,867.42
Testing fee
Technology Co.,Ltd.
Telecommunication
Potevio Information Technology Co., Ltd.
products 66,796.46
Telecommunication
Potevio Company Limited
products 517,067.86
Telecommunication
Eastern Communications Co., Ltd.
products 1,295,903.33
Chengdu Westone Information Security Telecommunication
Technology Co., Ltd. products 3,094,690.26
NANJING LES INFORMATION Telecommunication
TECHNOLOGY CO.,LTD products 162,831.85
Telecommunication
Eccom Network SYSTEM Ltd.
products 59,320.35
Telecommunication
Sun Create Electronics Co., Ltd.
products 88,685.84
Telecommunication
Wuhan Putian New Energy Co., Ltd.
products 16,088.49
Lease income \ expenses Lease income and
Name of lessee Status of leased assets recognized in the current expenses confirmed in the
period previous period
Income from rent and
Nanjing Lopu Co., Ltd. 395,238.10 395,238.10
property fees
Lease income \ expenses Lease income and
Name of Lessor Status of leased assets recognized in the current expenses confirmed in the
period previous period
Nanjing Putian Communication
Rent and management
Technology Industrial Park Co., 882,443.64 839,675.19
fee
Ltd.
Whether the
Amount Commencement
Guarantees Guarantors Maturity date guarantee is
guaranteed date
mature
Nanjing Southern
The company 20,000,000.00 2021/11/12 2022/7/22 Yes
Telecom Co.,Ltd
Nanjing Southern
The company 10,000,000.00 2022/02/23 2022/11/16 Yes
Telecom Co.,Ltd
Preceding
Related transaction Current period
Name of related party period
content cumulative
comparative
Potevio Company Limited Loan interest 7,741,475.85 4,477,491.67
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Items Current period cumulative Preceding period comparative
Key management’s emoluments 3,156,438.00 3,668,506.00
(VI) Balance due to or from related parties
Closing balance Opening balance
Items Related parties Book Provision for Book Provision for
balance bad debts balance bad debts
Cash and
bank
balances
China Electronics Technology
Finance Co., Ltd.
Accounts
receivable
Taiji Computer Corporation
Limited
China KEY SYSTEM &
Integrated Circuit Co., Ltd. 65,333.00 - 26,373.10 263.73
Nanjing Branch
CETC LES Information System
Company Limited
Nanjing Rail Transit System
Engineering Co., Ltd.
The 28th Research Institute of
China Electronics Technology 4,111,020.00 41,110.20
Group Co., Ltd
Hebei FAR-EAST
Communication SYSTEM 8,058,730.63 327,755.62 7,954,628.78 210,528.84
Engineering Co., Ltd.
Sun Create Electronics Co., Ltd. 183,262.43 26,252.98 183,262.43 8,388.89
Potevio Telecommunications Co.,
Ltd.
Potevio Information Technology
Co., Ltd.
Potevio Company Limited 5,519,204.83 4,357,744.25 5,519,204.83 3,339,327.20
Shanghai Potevio Co., Ltd. 8,755,534.00 8,755,534.00 8,755,534.00 8,755,534.00
System Equipment Co.,LTD of
The 28th Research Institute 190,083.00 9,504.15
(Liyang)
Putian EASTERN
Communications Group Co., Ltd.
Nanjing Lopu Co., Ltd. 44,000.00 2,200.00
The 55th Research Institute of
China Electronics Technology 14,900.00 149.00
Group Co., Ltd
CETC Potevio
SCIENCE&TECHNOLOGY 2,988,000.00 29,880.00
Co., Ltd.
Gemplus (Tianjin) New
Technologies Co., Ltd.
subtotal 42,726,072.16 20,711,292.80 33,933,892.17 14,037,548.15
Notes
receivable
CETC Potevio
SCIENCE&TECHNOLOGY 1,772,820.00 88,641.00
Co., Ltd.
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Closing balance Opening balance
Items Related parties Book Provision for Book Provision for
balance bad debts balance bad debts
Other
receivable
Potevio Company Limited 2,245,100.00 1,954,305.00 2,245,100.00 1,953,355.00
Potevio Information Technology
Co., Ltd.
Nanjing Hikvision Digital
Technology Co., Ltd.
CETC Potevio
SCIENCE&TECHNOLOGY 91,100.00 4,555.00
Co., Ltd.
Tianbo Electronic Information
Technology Co., Ltd.
Hangzhou HONYAR Electrical
Co., Ltd.
The 23rd Research Institute of
China Electronics Technology 1,500.00 15.00 67,400.00 3,370.00
Group Co., Ltd
Beijing Likangpu
Telecommunications Equipment 28,912,122.71 28,912,122.71 28,912,122.71 28,912,122.71
Co., Ltd.
subtotal 31,858,822.71 31,250,857.71 31,672,422.71 31,240,647.71
Advances
paid
Beijing Likangpu
Telecommunications Equipment 6,850.00
Co., Ltd.
Items Related parties Closing balance Opening balance
Accounts
payable
Potevio Company Limited 18,016,137.43 18,016,137.43
Hangzhou Hikvision Technology Co., Ltd. 504,393.96
Nanjing Putian Communication Technology
Industrial Park Co., Ltd.
Subtotal 18,545,531.39 18,016,137.43
Contract
liabilities
Potevio Company Limited 4,690,537.30 4,703,127.30
Other payables
China Putian Corporation 9,580,000.00 9,580,000.00
Potevio Telecommunications Co., Ltd. 200,000.00 200,000.00
Potevio Company Limited 118,973.06 231,015.28
Nanjing Putian Communication Technology
Industrial Park Co., Ltd.
Nanjing Putian Information Technology Co.,
Ltd.
Potevio Information Technology Co., Ltd. 400,000.00 400,000.00
Subtotal 16,805,671.76 17,259,436.87
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
XI. Commitments and contingencies
(I) Commitments
As of December 31st, 2022, the Company has no material commitments to disclose.
(II) Contingencies
As of December 31st, 2022, the Company had no material contingencies to disclose.
XII. Events after the balance sheet date
As of April 18th, 2023, except as disclosed in this note X (1), the Company has no post-balance
sheet events that need to be disclosed.
XIII. 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, electrical products, wiring products, 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.
Communications
Video Intelligent
Generic cable infrastructure Inter-segment
Items conferencing electrical Total
products products and offsetting
products products
others
Revenue from
main operations
Cost of main
operations
Total assets 246,673,514.58 256,387,579.00 162,567,836.07 474,938,756.96 -249,177,630.99 891,390,055.62
Total liabilities 142,970,179.55 150,992,737.00 109,984,790.16 532,204,911.92 -145,597,218.91 790,555,399.73
XIV. Notes to items of parent company financial statements
(I) Accounts receivable
Ages Closing balance Opening balance
Within 1 year 43,483,236.49 52,993,552.29
Over 5 years 103,377,145.03 91,555,641.94
Less: Allowance for doubtful accounts 155,462,979.31 149,111,938.07
Total 104,179,575.75 124,745,572.67
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Closing balance
Categories Book balance Provision for bad debts
% to Provision
Amount Amount
total proportion (%)
Receivables with provision made on an
individual basis
Receivables with provision made on a
collective basis
Among them: Combination 1: aging method 188,947,762.27 99.09 86,501,709.52 45.78
Combination 2: related parties 1,733,523.00 0.91
Total 259,642,555.06 100.00 155,462,979.31 59.88
Opening balance
Categories Book balance Provision for bad debts
% to Provision
Amount Amount
total proportion (%)
Receivables with provision made on an
individual basis
Receivables with provision made on a
collective basis
Among them: Combination 1: aging method 202,113,852.99 99.18 79,035,628.98 38.78
Combination 2: related parties 1,667,348.66 0.82
Total 273,857,510.74 100.00 149,111,938.07 54.45
（1）Receivables with provision made on an individual basis
Provision
Provision for
Debtors Book balance proportion Reasons
bad debts
(%)
Dongpo Xi Laos Co., Ltd.
to recover
China Tower Corporation Limited
to recover
Mr. Xu
to recover
China Railway Signal&Communication 5,241,400.50 5,241,400.50 100.00 Unable
Shanghai Engineering Bureau Group to recover
Co.,Ltd.
Others
to recover
Total 68,961,269.79 68,961,269.79 100.00
（2）Receivables with provision made on a collective basis
Combination 1: Aging combination
Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
Within 1
year
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Closing balance Opening balance
Ages Provision Provision
Provision for Provision for
Book balance proportion Book balance proportion
bad debts bad debts
(%) (%)
Over 5
years
Total 188,947,762.27 45.78 86,501,709.52 202,113,852.99 39.10 79,035,628.98
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 1,733,523.00 1,667,348.66
Change in current period
Opening Closing
Categories
balance Accrual
To withdraw Cancel after Other balance
or turn back verification changes
Provision for 155,462,979.31
bad debts
Proportion to the
total balance of Provision for
Debtors Book balance
accounts bad debts
receivable (%)
Dongpo Xi Laos Co., Ltd. 19,708,086.54 7.59% 19,708,086.54
Mr. Xu 17,591,683.74 6.78% 17,591,683.74
China Tower Corporation Limited 13,819,926.92 5.32% 13,819,926.92
Liantong Henan Branch 8,828,589.22 3.40% 5,794,725.99
Shanghai Potevio Co.,Ltd. 8,755,534.00 3.37% 8,755,534.00
Total 68,703,820.42 26.46% 65,669,957.19
(II) Other receivable
Items Closing balance Opening balance
Interest receivable
Dividends receivable 600,000.00 600,000.00
Other receivables 65,902,582.81 68,372,223.81
Less: Allowance for doubtful accounts 41,175,475.72 40,428,187.81
Total 25,327,107.09 28,544,036.00
（1）Details
Items Closing balance Opening balance
Nanjing Putian Datang Information Electronics Co., Ltd. 600,000.00 600,000.00
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
（1）Other receivable categorized by nature
Items Closing balance Opening balance
Temporary payment receivable 55,986,690.26 57,565,967.09
Deposit 7,751,311.73 9,401,005.10
Travel allowance 442,731.30 349,937.77
Others 1,721,849.52 1,055,313.85
Less: Allowance for doubtful accounts 41,175,475.72 40,428,187.81
Total 24,727,107.09 27,944,036.00
（2）Age analysis
Ages Closing balance Opening balance
Within 1 year 23,014,515.42 21,361,891.68
Over 5 years 34,269,839.30 35,222,932.73
Less: Allowance for doubtful accounts 41,175,475.72 40,428,187.81
Total 24,727,107.09 27,944,036.00
（3）Changes in provision for bad debts
Phase I Phase II Phase III
Lifetime
Items 12-month Lifetime expected Total
expected credit
expected credit credit losses (credit
losses (credit
losses not impaired)
impaired)
Opening balance 250,754.64 40,177,433.17 40,428,187.81
Opening balance in the current
period
--Transferred to phase II -250,754.64 250,754.64
--Transferred to phase III
--Reversed to phase II 9,220,644.66 -9,220,644.66
--Reversed to phase I
Provision made in the current
period
Provision recovered in current
period
Provision written off in current
period
Other changes
Closing balance - 10,218,687.21 30,956,788.51 41,175,475.72
（4）Provision for bad debts
Change in current period
Opening Closing
Categories
balance Accrual
To withdraw or Cancel after Other balance
turn back verification changes
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
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 43.87% 28,912,122.71
Co.,Ltd. receivable
Security 938,000.00；
China Potevio Company Limited 1,938,000.00 2.94% 1,938,000.00
deposit Over 5 years
Temporary
Nanjing Putian Communication
payment 805,545.63 Over 3 years 1.22% 805,545.63
Industry Co., Ltd.
receivable
Total 31,655,668.34 48.03% 31,655,668.34
(III) Long-term equity investments
Closing balance Opening balance
Items Provision Provision
Carrying Carrying
Book balance for Book balance for
amount amount
impairment impairment
Investment
s in 113,409,068.6 1,294,510.0 112,114,558.6 115,319,588.6 1,910,520.0 113,409,068.6
subsidiarie 4 0 4 4 0 4
s
Investment
s in
associates
and joint
ventures
Total
Provision for Closing
Opening Incr Closing impairment balance of
Investees Decrease
balance ease balance made in provision for
current period impairment
Nanjing Putian Changle
Communication 2,610,457.00 2,610,457.00
Equipment Co., Ltd.
Nanjing Putian Telege
Intelligent Building Ltd.
Nanjing Southern
Telecom Co., Ltd.
Nanjing Mennekes
Electric Co., Ltd.
Nanjing Putian Network
Co., Ltd.
Nanjing Putian Datang
Information Electronics 5,436,797.07 5,436,797.07
Co., Ltd.
Nanjing Putian Hotel
Co., Ltd.
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
PUTIAN
TELECOMMUNICATI 1,910,520.0
ONS (H.K.) CO. 0
LIMITED
Chongqing Puhua
Information Technology 2,000,000.00 2,000,000.00
Co., Ltd.
Total 115,319,588.6 1,910,520.0 113,409,068.6
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Increase/Decrease
Investment Closing
income Adjustment in Cash balance of
Opening Changes Provision Closing
Investees Investments Investments recognized other dividend/Profit provision
balance in other for Others balance
increased decreased under comprehensive declared for for
equity impairment impairment
equity income distribution
method
I. Joint
ventures
SEI-Nanjing
Putian Optical
Network Co.,
Ltd.
Total 10,422,193.15 128.65 10,422,321.80
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
(IV) Operating revenue/Operating cost
Current period cumulative Preceding period comparative
Items
Revenue Cost Revenue Cost
I.Main operations 114,398,871.87 103,317,341.26 109,762,989.18 98,939,817.40
II.Other operations 3,945,565.52 3,820,744.62 11,490,076.50 9,759,140.72
Total 118,344,437.39 107,138,085.88 121,253,065.68 108,698,958.12
recognition
Income from main Other business
Revenue recognition time
business income
Confirm at a certain point 114,398,871.87 3,945,565.52
(V) Investment income
Preceding
Current period
Items period
cumulative
comparative
Investment income from long-term equity investments under cost method 9,153,400.00 9,753,400.00
Investment income from long-term equity investments under equity method 128.65 136.19
Debt restructuring gains 2,434,384.72
Others 1,104,350.78
Total 10,257,879.43 12,187,920.91
XIV. Other supplementary information
(I) Schedule of non-recurring profit or loss
Items Amount Remarks
asset impairment provision
tax refund, reduction and exemption
business of the enterprise, except those enjoyed in accordance with the national 210,513.19
unified standard quota or quantitative government subsidies)
current profit and loss
that of the investment, an enterprise shall enjoy the income generated from the fair
value of the identifiable net assets of the invested entity
disasters
integration costs, etc
appreciably unfair price
merger date arising from the merger of enterprises under the same control
the company's business
business, tradable financial assets, and other illiquid financial assets, derivative
Nanjing Putian Telecommunications Co., Ltd.
Notes to Financial Statements
Items Amount Remarks
financial assets, changes in the fair value of the tradable financial liabilities have
profit and loss, as well as the disposal of tradable financial assets, other illiquid
financial assets, creditor's rights investment, transactional financial liabilities and
other derivative financial liabilities of investment returns
separately will be transferred back
that are measured using the fair value model
taxation, accounting and other laws and regulations
loss
Total 3,843,998.74
(II) Return on net assets(RONA) and earnings per share(EPS)
Weighted average RONA EPS (yuan/share)
Profit of the reporting period (%) Basic EPS Diluted EPS
Current Preceding Current Preceding Current Preceding
period period period period period period
Net profit attributable to shareholders
-114.39 -105.00 -0.22 -0.65 -0.22 -0.65
of ordinary shares
Net profit attributable to shareholders
of ordinary shares after deducting -107.15 -0.24 -0.66 -0.24 -0.66
non-recurring profit or loss
Board of Directors
of Nanjing Putian Telecommunications Co., Ltd.
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