TSANN KUEN (CHINA) ENTERPRISE CO., LTD.
(Unaudited)
August 2025
Section I. Important Statements, Contents & Terms
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Tsann Kuen (China) Enterprise Co., Ltd. (hereinafter referred to as “the
Company”) warrant that this Report is factual, accurate and complete without any false record,
misleading statement or material omission. And they shall be jointly and severally liable for that.
Mr. Cai Yuansong, company principal, and Mr. Wu Jianhua, head of the accounting work & the
accounting division (head of accounting) jointly declare that the financial statements carried in this
Report are factual, accurate and complete.
All directors attended the board session for reviewing this Report.
Any forward-looking statement such as those involving the future operational plans in this Report
shall not be considered as virtual promises of the Company to investors. And investors are kindly
reminded to pay attention to possible risks.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
English translation is for reference only. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
Contents
Documents Available for Reference
(I) The financial statements signed and sealed by the company principal and the head of the
accounting work & the accounting division (head of accounting) of the Company.
(II) The originals of all the Company’s documents and announcements which were disclosed on the
website designated by the CSRC in the reporting period.
(III) The original of this Report carrying the signature of the Board Chairman.
(IV) The aforesaid documents are available at the Board Secretary’s Office of the Company.
Terms
Term Refers to Contents
Xiamen Tsann Kuen, TKC-B, Company,
Refers to Tsann Kuen (China) Enterprise Co., Ltd.
the Company, TKC
Tsann Kuen Zhangzhou, TKL Refers to Tsann Kuen (Zhangzhou) Enterprise Co., Ltd.
Tsann Kuen Shanghai, TKS Refers to Tsann Kuen China (Shanghai) Enterprise Co., Ltd.
East Sino Refers to East Sino Development Limited
SCI Refers to Pt.Star Comgistic Indonesia
Orient Star Investments Refers to Orient Star Investments Limited
SCPDI Refers to Pt.Star Comgistic Property Development Indonesia
TKW Refers to Xiamen Tsannkuen Property Services Co., Ltd.
RMB Refers to RMB YUAN
Section II. Company Profile & Financial Highlights
I.Basic information about the Company
Stock name TKC-B Stock code 200512
Stock exchange Shenzhen Stock Exchange
Chinese name of the
厦门灿坤实业股份有限公司
Company
Abbr. of the Chinese
闽灿坤
name of the Company
English name of the
TSANNKUEN(CHINA) ENTERPRISE CO. LTD
Company
Abbr. of the English
TKC
name of the Company
Legal representative of
Cai Yuansong
the Company
II.Contact information
Board Secretary Securities Representative
Name Sun Meimei Dong Yuanyuan
TSANN KUEN Industrial Park, TSANN KUEN Industrial Park,
Taiwanese Investment Zone, Zhangzhou, Taiwanese Investment Zone,
Contact address
Fujian Province, P.R.China Zhangzhou, Fujian Province,
P.R.China
Tel. 0596-6268161 0596-6268103
Fax 0596-6268104 0596-6268104
E-mail mm_sun@tk-eupa.com yy_dong@tk-eupa.com
III. Other information
Did any change occur to the registered address, office address and their postal codes, website address and email
address of the Company during the reporting period?
□ Applicable ? Inapplicable
No change occurred to the said information in the reporting period, which can be found in the 2024 Annual
Report.
Did any change occur to information disclosure media and where this Report is placed during the reporting period?
□ Applicable ? Inapplicable
The stock exchanges website and the name and website of the media where the Company disclosed the Report, as
well as the location where the Report was filed, remained unchanged during the reporting period. The said
information can be found in the 2024 Annual Report.
Did any change occur to other relevant information during the reporting period?
□ Applicable ? Inapplicable
IV. Accounting and financial highlights
Does the Company adjust retrospectively or restate accounting data of previous years?
□ Yes ? No
Unit: RMB Yuan
Item Reporting period Same period of last year YoY +/-（％）
Operating revenue 652,773,296.39 788,085,998.03 -17.17
Net profit attributable to
shareholders of the Company
Net profit attributable to
shareholders of the Company
before extraordinary gains and
losses
Net cash flows from operating
-30,246,868.47 -26,296,992.61 -15.02
activities
Basic EPS (RMB Yuan/share) 0.09 0.18 -50.00
Diluted EPS (RMB
Yuan/share)
Weighted average ROE (%) 1.44 3.11 -1.67
As at the end of the
Item As at the end of last year +/- (%)
Reporting period
Total assets 2,479,488,976.29 2,635,048,828.74 -5.90
Net assets attributable to
shareholders of the Company
Total shares of the Company as at closure of the last trading day before the disclosure of this Report:
Total shares of the Company as at closure of the last trading day
before the disclosure of this Report (share)
Fully diluted EPS based on the latest total shares:
Dividends paid to preference shareholders 0.00
Fully diluted EPS based on the latest total shares (RMB Yuan/share) 0.09
V. Differences between accounting data under domestic and overseas accounting standards
Chinese accounting standards
□ Applicable ? Inapplicable
Chinese accounting standards
□ Applicable ? Inapplicable
VI. Items and amounts of extraordinary gains and losses
? Applicable □ Inapplicable
Unit: RMB Yuan
Items Amount Description
Losses on disposal of non-current assets (inclusive of impairment allowance write-offs) 1,265,588.90
Government grants recognised in current profit or loss (except government grants
that is closely related to operations and determined based on a fixed scale according 1,808,128.78
to the national unified standard)
Gains /(losses) arising from changes in fair value of held-for-trading financial assets
and held-for-trading financial liabilities during the holding period and investment
income arising from disposal of held-for-trading financial assets, held-for-trading 190,396.37
financial liabilities and assets classified as held for sale except effective hedging
transactions related to the Company's principal activities
Funds occupation fee recognised in current profit or loss from non-financial companies
Gains /(losses) on entrusted investments or asset managements
Gains /(losses) arising from entrusted loans to other entities
Provision for impairment of each asset due to force majeure such as a natural
disaster
Reversal of provision for impairment of accounts receivable tested for impairment
individually
The excess of attributable fair value of net identifiable assets over the consideration
paid for subsidiaries, associates, or joint ventures recognised by the Company
Net gains /(losses) of subsidiaries arising from business combination under common
control from the beginning of the reporting period till the combination date
Gains/(losses) generated from non-monetary asset exchange
Gains /(losses) on debt restructuring
Corporate restructuring charge, such as expenditure for staff resettlement
and integration cost
Impact of one-off adjustment to current profit or loss based on the requirements of
taxation and accounting laws and regulations
Share-based payment expenses recognized at one time due to cancellation or
modification of the equity incentive plan
For cash-settled share-based payments, gains or losses arising from changes in the fair
value of employee remuneration payable after the vesting date
Gains /(losses) arising from changes in fair value of investment properties
adopting fair value model for subsequent measurement
Gains /(losses) from excess of fair value in non-arm’s length transactions
Gains /(losses) arising from contingencies other than those related to principal
activities of the Company
Custody fee income from entrusted operations
Other non-operating income/expenses except for items mentioned above 605,362.18
Other extraordinary gains/(losses) defined
Less: Income tax effects 582,940.72
Non-controlling interests effects (after tax) 807,235.01
Total 2,479,300.50
Other gain and loss items that meet the definition of an extraordinary gain/loss:
□ Applicable ? Inapplicable
Explain the reasons if the Company classifies as a recurrent gain/loss item any extraordinary gain/loss item
mentioned in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their
Securities to the Public—Extraordinary Gains and Losses
□ Applicable ? Inapplicable
Section III. Management Discussion & Analysis
I. Main business during the reporting period
Develop, produce and manufacture small home appliances of gourmet cooking, home helper, tea and coffee;
design and manufacture molds related to the above products, sell the products at home and abroad, and
provide after-sales service.
II. Core competitiveness analysis
During the reporting period, the core competitiveness of the Company remained stable and was further
strengthened, which is mainly reflected in the following aspects:
I.Deep technical accumulation and continuous innovation
enabled the company to accumulate profound technological heritage and rich experience in the industry.
established a perfect research and development technology service system, and has a nationally recognized
enterprise technology center, forming a complete innovation chain.
utility model patents and 4 appearance patents. The patent layout covers product structure, core components,
intelligent control and other dimensions, further consolidating the company's technological leadership.
II.Synergistic Innovation and Ecosystem Construction
through collaborative design, joint development, strategic cooperation and other ways to create value and
enhance the added value of products.
the supply chain strategic cooperation supporting ecosystem, enhance the efficiency of industrial chain
synergy, reduce the comprehensive cost and enhance the overall competitiveness.
III.Dual-cycle market strategy and brand advantages
consolidating and expanding the global international market while increasing the development of domestic
market to enhance the influence of independent brand.
competition and continuously improves market share and brand premium.
IV.Product innovation and differentiated competitive advantages
markets." While consolidating and expanding its presence in the global market, it has also established joint
ventures with domestic third-party companies. By leveraging both online (e.g., JD, TikTok ,Rednote) and
offline (e.g., JD MALL) sales channels, the company is intensifying its efforts to develop the domestic
market and enhance the influence of its proprietary brand.
market demand, meet diversified and personalized consumer needs, and form differentiated competitive
advantages.
V.Intellectual property protection and technical barriers
a perfect intellectual property management system. 32 new patents were issued during the reporting period,
which further improved the company's intellectual property protection system.
barriers, maintains its leading position in the industry and continuously improves its core competitiveness.
To summarize, the core competitiveness of the company remained stable and was further strengthened
during the reporting period, laying a solid foundation for the sustainable and healthy development in the
future.
III. Main business analysis
During this reporting period, the Company realized total profit of RMB21.5 million, a decrease of 56.76%
compared with the same period of last year; realized net profit attributable to shareholders of the listed
company of RMB16 million, a decrease of 52.92% compared with the same period of last year; and the
basic earnings per share was RMB0.09, a decrease of RMB0.09 compared with the same period of last year.
The change of the above indicators is mainly due to the impact of the international economic situation, the
orders from American customers decreased significantly; at the same time, the price of raw materials is still
at a high level and the cost of products increased. Based on the existing situation, the company has increased
the investment in Indonesia subsidiary to strengthen the construction of overseas production base, expand its
production scale, enhance the ability to receive orders, seize and attract the market orders of American
customers, maintain and stabilize customer relationships.
Unit: RMB Yuan
Same period of last
Item Reporting period +/-% Main reasons for changes
year
Mainly as a result of the decrease
Operating revenue 652,773,296.39 788,085,998.03 -17.17 in foreign sales orders during the
period;
Mainly as a result of the decrease
Operating cost 562,880,349.18 665,733,282.11 -15.45 in main operating revenues during
the period;
Selling expenses 11,706,746.06 15,705,789.17 -25.46
General and administrative
expenses
Mainly as a result of the decrease
Finance costs 2,354,891.68 213,569.01 1,002.64 in interest income during the
period;
Mainly as a result of the increase in
Other income 1,808,128.78 909,068.05 98.90 government subsidies received
during the period;
Investment income 16,576,429.63 14,548,243.97 13.94
Mainly as a result of the increase in
losses in the current period due to
Gains/ (losses) from changes in
-942,083.33 1,950,911.11 -148.29 the reversal of gains on financial
fair values
products of RMB940,000 at the
end of the year 2024;
Mainly as a result of the overdue
payment of goods to some
customers in the current period,
Impairment loss of credit -2,109,067.68 1,310,991.27 -260.88 which required provision for
impairment of accounts receivable
in accordance with the accounting
policy;
Mainly as a result of the decrease
Impairment loss of asset -2,818,668.81 -5,385,687.68 47.66
in provision for loss on decline in
Same period of last
Item Reporting period +/-% Main reasons for changes
year
value of inventories in the current
period as compared to the same
period last year;
Mainly as a result of the increase in
Gains from disposal of assets 1,265,588.90 600,085.35 110.90
gain on disposal of assets;
Mainly as a result of the receipt of
Non-operating income 679,417.25 148,920.32 356.23 refunds of golf memberships in the
current period;
Mainly as a result of the decrease
in profit from the decline in
revenue in the main business of the
Income tax expenses 1,869,934.96 5,204,909.85 -64.07 Company in the current period; and
Mainly as a result of the decrease
in profit as a result of the decrease
in revenue;
Research and development
investments
Net cash flows from operating
-30,246,868.47 -26,296,992.61 -15.02
activities
Mainly as a result of the decrease
in net outflow of bank time
Net cash flows from investing
-11,056,381.12 -152,804,883.43 92.76 deposits for the purpose of
activities
obtaining interest income during
the period;
Mainly as a result of the increase in
Net cash flows from financing short-term borrowings and the
-10,676,069.84 -37,562,013.34 71.58
activities decrease in dividend distribution
during the period;
Decrease in net outflow of bank
Net increase / (decrease) in cash time deposits for the purpose of
-52,657,661.45 -217,996,478.33 75.84
and cash equivalents earning interest income during the
period.
Major changes to the profit structure or sources of the Company during the reporting period:
□ Applicable ? Inapplicable
No such cases.
（1）Breakdown of main business revenues
Unit: RMB Yuan
Reporting period Same period of last year
Item In total operating In total operating +/-%
Amount Amount
revenues (%) revenues (%)
Total operating
revenues
By segments
Small home
appliance 652,773,296.39 100.00 788,085,998.03 100.00 -17.17
manufacturing
By products
Cooking utensils 392,599,119.51 60.14 462,268,892.25 58.65 -15.07
Everyday home
appliances
Reporting period Same period of last year
Item In total operating In total operating +/-%
Amount Amount
revenues (%) revenues (%)
Tea and coffee
makers
Other 25,770,816.77 3.95 33,458,255.53 4.25 -22.98
Total 652,773,296.39 100.00 788,085,998.03 100.00 -17.17
By areas
Americas 246,494,836.05 37.76 364,669,044.48 46.27 -32.41
Europe 227,996,576.35 34.93 254,715,358.72 32.32 -10.49
Asia 171,919,397.77 26.34 153,601,879.71 19.49 11.93
Australia 5,378,593.86 0.82 8,195,752.50 1.04 -34.37
Africa 983,892.36 0.15 6,903,962.62 0.88 -85.75
Total 652,773,296.39 100.00 788,085,998.03 100.00 -17.17
(2) Segments, products or areas contributing over 10% of operating revenues or profit
? Applicable □ Inapplicable
Unit: RMB Yuan
Operating Gross profit
Operating cost:
revenue: +/-% margin: +/-%
Gross profit +/-% from the
Item Operating revenue Operating cost from the same from the same
margin (%) same period of
period of last period of last
last year
year year
By segments
Small home
appliance 652,773,296.39 562,880,349.18 13.77 -17.17 -15.45 -1.76
manufacturing
Total 652,773,296.39 562,880,349.18 13.77 -17.17 -15.45 -1.76
By products
Cooking utensils 392,599,119.51 348,325,391.98 11.28 -15.07 -12.74 -2.37
Everyday home
appliances
Tea and coffee
makers
Other 25,770,816.77 4,991,814.16 80.63 -22.98 -46.48 8.51
Total 652,773,296.39 562,880,349.18 13.77 -17.17 -15.45 -1.76
By areas
Americas 246,494,836.05 225,318,161.22 8.59 -32.41 -29.67 -3.55
Europe 227,996,576.35 199,231,164.91 12.62 -10.49 -8.86 -1.56
Asia 171,919,397.77 132,941,407.38 22.67 11.93 15.87 -2.64
Australia 5,378,593.86 4,356,657.52 19.00 -34.37 -33.85 -0.64
Africa 983,892.36 1,032,958.15 -4.99 -85.75 -80.93 -26.53
Total 652,773,296.39 562,880,349.18 13.77 -17.17 -15.45 -1.76
If the statistical caliber of the company's main business data is adjusted during the reporting period, the
company's main business data for the most recent period is adjusted according to the caliber at the end of the
reporting period.
□ Applicable ? Inapplicable
IV. Analysis of non-core business
? Applicable □ Inapplicable
Unit: RMB Yuan
Ratio to the total Recurring
Items Amount Notes of the causes
profits amount (%) or not
Mainly government grants related to production and
Other income 1,808,128.78 8.41 No
operations
Mainly attributable to investment income from
Investment income 16,576,429.63 77.10 financial products and interest income from time No
deposits
Mainly attributable to the reversal of gains on
Gains from changes financial products of RMB0.94 million at the end of
-942,083.33 -4.38 No
in fair values the year ended December 31, 2024 in the current
reporting period
Mainly due to overdue payments from customers,
Impairment loss of
-2,109,067.68 -9.81 which required provision for impairment of accounts No
credit
receivable in accordance with accounting policy.
Impairment loss of Loss on decline in value of inventories and
-2,818,668.81 -13.11 No
asset impairment loss on fixed assets.
Gains from disposal
of assets
Non-operating Refunds of golf membership fees were received
income during the period.
Non-operating Mainly as a result of fines incurred by a subsidiary,
expenses Indonesia Canstar.
V. Assets and liabilities
Unit: RMB Yuan
At the end of the reporting
At the end of last year
period
Change in
As a As a Reason for any significant
Item percentage
percentage percentage change
Amount Amount (%)
of total of total
assets (%) assets (%)
Cash and cash
equivalents
Mainly as a result of the
Held-for-trading
financial assets
during the period;
Accounts receivable 131,705,355.91 5.31 203,955,899.80 7.74 -2.43
Mainly as a result of the
Advances to suppliers 8,261,158.90 0.33 4,318,758.91 0.16 0.17 increase in prepayment for
goods during the period;
Mainly as a result of the
Other receivables 16,834,594.69 0.68 27,902,480.51 1.06 -0.38 decrease in export tax rebates
receivable during the period;
Inventories 182,041,733.82 7.34 194,399,523.78 7.38 -0.04
Non-current assets Mainly as a result of the
maturing within one increase in the transfer of debt
At the end of the reporting
At the end of last year
period
Change in
As a As a Reason for any significant
Item percentage
percentage percentage change
Amount Amount (%)
of total of total
assets (%) assets (%)
year investments maturing within
one year during the period;
Mainly as a result of the
Long-term equity
investments
associates during the period;
Investment properties 18,874,577.41 0.76 19,287,755.23 0.73 0.03
Fixed assets 154,068,855.87 6.21 146,795,190.83 5.57 0.64
Mainly as a result of the non-
acceptance of the newly
Construction in constructed plant in Canstar
progress Netcom Park, Indonesia, a
subsidiary of the Company
during the period;
Right-of-use assets 347,968,147.44 14.03 353,943,869.92 13.43 0.60
Mainly as a result of the
increase in borrowings by
Short-term borrowings 36,333,653.27 1.47 0.00 0.00 1.47
TKL, a subsidiary, during the
period.
Mainly as a result of the
decrease in the issuance of
Notes payable 4,724,919.53 0.19 19,418,627.35 0.74 -0.55
banker's acceptance bills
during the period;
Contract liabilities 18,059,456.23 0.73 16,296,739.65 0.62 0.11
Mainly as a result of the
Taxes payable 8,299,865.76 0.33 18,310,394.76 0.69 -0.36 payment of 2024 remittance of
enterprise income tax;
Mainly as a result of the
Non-current liabilities
increase in the recognition of
maturing within one 7,548,324.44 0.30 922,678.70 0.04 0.26
one-year lease liabilities
year
during the period.
Lease liabilities 398,487,714.70 16.07 396,004,620.97 15.03 1.04
? Applicable □ Inapplicable
Unit: RMB Yuan
Measures
In the
taken to Any major
Operation Company’s
Asset Nature Value Location protect Earnings impairment
status net assets
asset risk or not
(%)
safety
Small home
Periodic
SCI Investment 198,824,238.95 Indonesia appliance -5,354,351.05 18.33 No
review
manufacturing
Other
N/A
information
? Applicable □ Inapplicable
Unit: RMB Yuan
Profit/loss on Cumulative
Impairment Purchased
fair value fair value Sold in this
Opening provided in in this Other Closing
Item changes in changes reporting
balance this reporting reporting changes balance
this reporting charged to period
period period
period equity
Financial assets
(excluding derivative financial 50,942,083.33 -942,083.33 0.00 0.00 0.00 50,000,000.00 0.00 0.00
assets)
investments
Subtotal of financial assets 50,982,083.33 -942,083.33 0.00 0.00 0.00 50,000,000.00 0.00 40,000.00
Investment properties 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Productive biological assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total of the above 50,982,083.33 -942,083.33 0.00 0.00 0.00 50,000,000.00 0.00 40,000.00
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Any significant changes in the major assets’ measurement attributes of the Company in the reporting period?
□ Yes ? No
Of the other monetary funds, RMB1,700,000.56 is the margin deposited by TKL for opening a letter of credit.
Except for the margin deposited for opening a letter of credit, there are no other funds in monetary funds at the
end of the period with restricted use rights or potential recovery risks due to mortgage, pledge or freeze.
VI. Investments made
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
(1) Securities investments
□ Applicable ? Inapplicable
No such cases in the reporting period.
(2) Investment in derivative financial instruments
? Applicable □ Inapplicable
□ Applicable ? Inapplicable
No such cases in the reporting period.
VII. Sale of major assets and equity interests
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
VIII. Main controlled and joint stock companies
? Applicable □ Inapplicable
Main subsidiaries and joint stock companies with over 10% effect on the Company’s net profit
Unit: RMB Yuan
Relationship
Company Main business Registered Operating Operating
with the Total assets Net assets Net profit
name scope capital revenues profit
Company
Small home
USD160
TKL Subsidiary appliance 2,218,388,565.76 1,328,235,051.35 608,398,533.13 17,036,763.66 19,422,435.70
million
manufacturing
Subsidiaries obtained or disposed in this reporting period
□Applicable ? Inapplicable
IX. Structured bodies controlled by the Company
? Applicable □Inapplicable
X. Risks facing the Company and countermeasures
In 2025, the competition in the small household electrical appliances industry entered the “deep water”,
intelligent, scenario, green has become the mainstream trend, and consumers' requirements for the functional
integration, emotional value and personalized experience of the products have been significantly enhanced. At the
same time, the strong rise of local brands, foreign brands adhere to the high-end market, cross-border enterprises
to accelerate the entry, the industry competition pattern is more complex.
Factors such as geopolitical tensions, trade barriers and emerging industry policies may reshape the global trade
pattern; differences in national regulations (e.g., EU carbon tariffs, U.S. certificates of origin) increase the
difficulty of corporate compliance, and the low threshold of counterfeiting technology in emerging markets makes
it costly for companies to defend their rights; insufficient orders in mature markets in Europe and the U.S. and
Southeast Asian production capacity expansion leads to an oversupply of low- and medium-end products, and
intensified price wars.
To address the complexities and volatilities of competitive risks, the company has implemented the following
strategic measures: focusing on a trinity of competitiveness encompassing "technology + application scenarios +
emotional value" to reinforce differentiated advantages in smart controls, health-focused functionalities, and
aesthetic design; deepening collaborative development with global tier-one brands to enhance product value-add
and customer stickiness; accelerating the development of domestic proprietary brands by expanding across both
online e-commerce and offline retail channels to boost brand penetration; strengthening product R&D and
technological innovation to improve the value-add and competitiveness of export products; enhancing
cooperation with trade partners to jointly navigate trade challenges; advancing core technologies, optimizing
supply chains, and elevating brand power to capture the high-end product market segment; transitioning toward
product superiority, technological leadership, and innovation-driven advantages; diversifying market expansion to
increase corporate revenue and profitability while establishing competitive edges in the new phase of industry
rivalry. Additionally, production capacity is being globalized and decentralized to mitigate risks associated with
single-origin dependence.
The company's products are mainly exported, and the main settlement currency is the U.S. dollar, exchange rate
fluctuations will have a greater impact on the company's operating results. 2025 the first half of the year, the
RMB against the U.S. dollar showed a slight appreciation, the risk of exchange rate fluctuations still need to be
vigilant. In order to reduce the impact of exchange rate fluctuations on the company's assets, liabilities and
profitability level changes, the establishment of exchange rate risk-neutral management mechanism, the use of
forwards, options and other financial instruments for hedging. Optimize the structure of foreign currency assets
and liabilities, and enhance the proportion of natural hedging.
As the manufacturing industry “difficult to recruit” problem persists, labor costs are rising year by year, especially
the front-line operators and skilled workers pay pressure. In order to cope with the risk of declining profitability
due to rising labor costs, the company accelerates the intelligent manufacturing and automation transformation,
improves the per capita output efficiency and reduces the dependence on labor; promotes procurement
modularization, lean automation, etc. to achieve manpower saving, and continuously improves the production
environment, promotes the retention bonus policy, and improves the employees' enthusiasm and sense of identity
by improving employee welfare and strengthening the construction of corporate culture to reduce the turnover
rate. identity, and reduce the turnover rate.
As the country's “dual-carbon” goal advances, green manufacturing, design and recycling have become the focus
of policy, coupled with increasingly stringent environmental regulations, the cost of compliance for companies in
terms of pollution prevention and control, public health protection, and carbon emissions reduction continues to
rise. This is both a challenge and an opportunity. For this reason, the company firmly takes lean manufacturing as
its core strategy and actively responds to it through the following initiatives:
Technological upgrading: Invest vigorously in energy-saving equipment, clean production processes and
environmentally friendly new materials, upgrade automation and environmentally friendly process technology,
and significantly improve energy utilization efficiency.
Practicing low carbon: Incorporate low carbon concepts into product design and develop innovative and
environmentally friendly products.
Build a system: Systematically promote green design, green manufacturing and green supply chain construction.
Strengthen compliance: At the same time, develop products in line with international standards and obtain carbon
footprint certification to enhance export competitiveness.
Copper prices rose significantly in the first half of 2025, plastic, aluminum and other raw material prices remain
high, cost pressure persists. The company's countermeasures are as follows: establish a raw material price
monitoring and early warning mechanism, and carry out strategic procurement and inventory adjustment at the
right time. Promote supply chain diversification, avoid dependence on a single supplier, and enhance bargaining
power. Enhance the universality of parts and reduce material loss through product platformization and
modularization design. Research and develop alternative materials and fully utilize the RCEP tariff concession
policy to reduce the impact of rising costs.
Geopolitical tensions and trade protectionism rise, many countries to raise tariffs or add non-tariff barriers,
reshaping trade rules, export uncertainty steeply. from May 14, the United States will part of the Chinese small
household appliances tariffs from the highest 125% temporarily reduced to 10%, but superimposed on the section
reduction window on August 12 and the risk of a second hike in the third quarter. temporary tariff suspension on
Southeast Asia expired on July 8th. The Red Sea crisis has not been resolved, Panama drought, North American
port labor negotiations, etc. further increase the volatility of shipping schedule. High inflation in major economies
around the world weakened consumers' purchasing power, and overall order demand contracted.
It is expected that the international situation in the second half of 2025 will be characterized by “high tariffs +
high freight costs + regional differentiation”. With the release of overseas production capacity, market
diversification and product structure upgrading, the company is deeply cultivating the major markets of Europe
and the United States while expanding the emerging markets of Southeast Asia, the Middle East, Russia and other
emerging markets, so as to reduce the dependence on a single market. The company adheres to the development
concept of globalization, strengthens industrial competitiveness, optimizes product structure, expands diversified
markets, increases independent innovation and other measures to actively respond to the challenges and seize the
opportunities.
Ⅺ.Development and implementation of market value management systems and
valuation enhancement plans
Whether the company has a market value management system in place.
□ Applicable ? Inapplicable
Whether the company has disclosed plans for valuation enhancement.
? Applicable □ Inapplicable
In 2025, in order to realize an increase in the value of the Company's investment and improve the ability to return
to shareholders, the Company will take the following specific measures:
XII. "Quality and Return Dual Improvement" Action Plan Implementation Status
Whether the company has disclosed an announcement for its "Quality and Return Dual Improvement" action plan.
□ Applicable ? Inapplicable
Section IV. Corporate Governance & Environmental & Social
Responsibility
I. Changes in directors, supervisors and executive officers
? Applicable □ Inapplicable
Name Positions held typology Date rationale
Chairman of the
Yang Yongquan leave office 2025/05/16 job transfer
Supervisory Board
Ding Hongming supervisor leave office 2025/05/16 job transfer
Supervisor of Employee
Zheng Caiyun leave office 2025/05/16 job transfer
Representatives
II. Pre-plan for profit allocation and turning capital reserve into share capital for the
reporting period
□ Applicable ? Inapplicable
The Company planned not to distribute cash dividend and bonus share, and not to convert capital reserves into
share capital in half year.
III. Implementation of any equity incentive plan, employee stock ownership plan or other
incentive measures for employees
□ Applicable ? Inapplicable
The Company planned not to distribute cash dividend and bonus share, and not to convert capital reserves into
share capital in half year.
IV. Disclosure of environmental information
Whether listed companies and their major subsidiaries are included in the list of enterprises whose environmental
information is disclosed in accordance with the law.
□ Applicable ? Inapplicable
V. Social responsibility situation
Not available.
Section V. Significant Events
I. Commitments of the Company’s actual controller, shareholders, related parties and
acquirer, as well as the Company and other commitment makers, fulfilled in this reporting
period or ongoing at the period-end
□ Applicable ? Inapplicable
No such cases in the reporting period.
II. Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
□ Applicable ? Inapplicable
III. Illegal provision of guarantees for external parties
□ Applicable ? Inapplicable
IV. Engagement and disengagement of CPAs firm
Whether the semi-annual financial report has been audited
□ Yes ? No
The semi-annual financial report of the Company has not been audited.
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by
board of directors and supervisory board
□ Applicable ? Inapplicable
VI. Notes for the related information of “non-standard audit reports” last year by board of
directors
□ Applicable ? Inapplicable
VII. Bankruptcy and restructuring
□ Applicable ? Inapplicable
VIII. Litigations and arbitrations
Significant litigations and arbitrations
□ Applicable ? Inapplicable
Other lawsuits
? Applicable □ Inapplicable
Unit: RMB’0,000
Situation of
Whether
Lawsuit Trial results and execution of
Basic situation of form into Disclosure Disclosure
amount Process of lawsuit (arbitration) influences of lawsuit judgment of
lawsuit (arbitration) estimated date index
(RMB’0,000) (arbitration) lawsuit
liabilities
(arbitration)
On August 19, 2024, the Company filed a lawsuit with the People's
Court of Haicang District, Xiamen City (during which the defendant
refused to accept the summons, and on October 22, 2024, the
defendant was served by public notice), claiming that in the case of
the housing lease contract dispute with the defendant, Craftsmen
Forever, Craftsmen Forever was required to pay to the Company the
total amount of 256,600 RMB for the rent of the building,
management fee, utilities and liquidated damages, etc., and that the
defendant was continuing to rent the building, and then changed the
lawsuit claim. After that, it changed the litigation demand and
claimed that the defendant should return the house rent, management
fee, utility fee and liquidated damages totaling 637,300 Yuan as of
the latest date. After that, Artisanal Permanent Residency objected to
The case of housing the jurisdiction and filed a counterclaim requesting that the Company
lease dispute between should pay the house repair cost of 178,500 Yuan, the loss of house
the Company and rent of 230,100 Yuan, the restoration of the related property service Pending second instance
Xiamen Craftsmen of the leased property in the case as well as the Company should bear judgment of the Court
Forever Industry & the litigation cost of the case. After two court hearings, the Xiamen
Trade Co. Haicang District People's Court ruled in favor of the Company's
claim to Artisanal Permanent Residence for house rent of
RMB461,148, property management fee of RMB55,126, utility fee of
RMB45,749.19, and ruled that Artisanal Permanent Residence shall
pay to the Company the amount of RMB178,500 for house repair
costs, RMB230,100 for loss of house rent, RMB230,100 for
restoration of property services in relation to the leased property and
the Company's share of the litigation costs in this case, and the
Company shall bear the litigation costs in this case. On April 13,
Court, and after the public hearing of the case by the Xiamen
Intermediate People's Court on June 6, 2025, the case is now awaiting
the judgment of the Xiamen Intermediate People's Court of the
second instance.
Situation of
Whether
Lawsuit Trial results and execution of
Basic situation of form into Disclosure Disclosure
amount Process of lawsuit (arbitration) influences of lawsuit judgment of
lawsuit (arbitration) estimated date index
(RMB’0,000) (arbitration) lawsuit
liabilities
(arbitration)
On January 22, 2025, the Company filed a lawsuit with the People's
Court of Haicang District, Xiamen City, claiming that the Company
and Zhuo Yincheng had a dispute over the rental contract, and that
Zhuo Yincheng was required to pay to the Company an aggregate
amount of RMB77,355.76 in respect of the rent, management fee,
utility fee and liquidated damages. Later, the Company and Zhuo
In the matter of the
Yincheng reached a settlement agreement, which stipulated that the
housing lease contract
lease contract was terminated in advance, and the Company forfeited Have withdrawn one's
dispute between the 7.735 No No No
Zhuo Yincheng's lease deposit of RMB24,000 and utility deposit of complaint
Company and Cheukyin
RMB2,000, and Zhuo Yincheng transferred the fixed decoration
City
placed by Zhuo Yincheng to the Company without any
compensation.On February 27, 2025, the Company filed an
application for the withdrawal of the case with the People's Court of
Xiamen City, Haicang District. On April 8, 2025, the Xiamen
Haicang District People's Court issued a civil ruling that the case was
dismissed.
The first-instance court
ordered the defendant to
An online petition was filed with the Ningbo Intermediate People's cease infringement and
Court on August 14, 2023, seeking an injunction against the compensate the plaintiff
The invention patent defendant to cease all infringing activities, compensation for the for economic losses and
dispute cases where the plaintiff's economic losses, and reimbursement for reasonable reasonable expenses
subsidiary TKL sued expenses incurred in the course of litigation, amounting to RMB incurred in rights
Cuori Electrical 3,351,751. protection, totaling RMB
Appliances (GROUP) The first-instance trial commenced on March 30, 2023. 824,257.
Co., Ltd. A judgment was rendered by the court on May 13, 2024. The case has been heard in
The defendant filed an appeal against the judgment on May 29, 2024. the second instance and is
Second trial begins May 22, 2025. currently awaiting the
court's decision in the
second instance.
Situation of
Whether
Lawsuit Trial results and execution of
Basic situation of form into Disclosure Disclosure
amount Process of lawsuit (arbitration) influences of lawsuit judgment of
lawsuit (arbitration) estimated date index
(RMB’0,000) (arbitration) lawsuit
liabilities
(arbitration)
The case concerns the
dispute over the An administrative lawsuit was filed with the Beijing Intellectual
invalidity decision of Property Court on July 17, 2023, regarding the review decision on the
patent invalidation declaration request No. 561240; The decision of nullity was
CN200610069596.6 The first-instance hearing was held on October 11, 2023, and the upheld in the first instance,
No No No
(Pancake Machine) first-instance judgment was received on October 27, 2023, upholding pending the hearing of the
issued by the China the original invalidation decision; second instance.
National Intellectual Our company appealed to the Supreme Court on November 13, 2023;
Property Administration The second-instance hearing was held on May 28, 2024.
against our company.
The case involves the
subsidiary TKL filing a
lawsuit against the An administrative lawsuit was filed with the Beijing Intellectual
China National Property Court regarding the review decision on the invalidation
Intellectual Property request for Trademark No. 560665 On August 7, 2023. The decision of nullity was
Administration over its The first instance hearing was held on January 18, 2024, and the first upheld at first instance,
No No No
decision to invalidate instance judgment was received on July 18, 2024, upholding the pending a decision at
Patent original invalidation decision. second instance.
CN201810220898.1, On August 7, 2024, the Company filed an appeal with the Supreme
which pertains to a Court.
grilling and toasting
appliance.
IX. Punishments and rectifications
□ Applicable ? Inapplicable
X. Credit conditions of the Company as well as its controlling shareholder and actual controller
□ Applicable ? Inapplicable
XI. Significant related-party transactions
? Applicable □ Inapplicable
Unit: RMB’0,000
Pricing Proportion Whether
Settlement
Type of the Content of the principle of Transa in same Approved exceeded Similar
Transactio method of the Disclosure Disclosure
Related party Relationship related-party related-party the related- ction kind of transaction the market
n amount related-party date index
transaction transaction party price transaction quota approved price
transaction
transaction s (%) quota
Company directly
Purchase of
Thermaster controlled by actual Based on
commodities Purchase of
Electronic (Xiamen) controller and their the market 1,232.78 3.04% 3,500.00 No
from the raw parts
Ltd. close family price and
related party Settled
members both www.cninf
according to the 11 March
parties N/A N/A o.com.cn
contract signed 2025
Sales of abide by
Sales of parts by both parties
Star Comgistic Ultimate controlling commodities the fair and
and finished 166.28 0.25% 600.00 No
Capital Co., Ltd. company to the related reasonable
products
party principle
Total 1,399.06 4,100.00
Details of large amount of sales returns N/A
As for the prediction on the total amount of routine related-party
transactions to be occurred in the reporting period by relevant types, the N/A
actual performance in the reporting period
Reason for significant difference between the transaction price and the
N/A
market price
□ Applicable ? Inapplicable
□Applicable ? Inapplicable
? Applicable □ Inapplicable
Whether was any contract related to the non-operating credits and liabilities with related parties?
□ Yes ? No
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
XII. Significant contracts and execution
(1) Entrustment
□ Applicable ? Inapplicable
(2) Contracting
□ Applicable ? Inapplicable
(3) Leasing
□ Applicable ? Inapplicable
? Applicable □ Inapplicable
Unit: RMB’0,000
Guarantees between subsidiaries
Guarantee
Disclosure
Actual for a
Guaranteed date of the Line of Actual occurrence Counter- Term of
guarantee Type of guarantee Collateral Due or not related
party guarantee line guarantee date guarantee guarantee
amount party or
announcement
not
PT.STAR
COMGISTIC 2025/4/26 3,750.00 254.38 Pledge N/A 1 year No No
INDONESIA
PT.STAR
COMGISTIC 2024/10/24 2,250.00 83.69 Pledge 100% credit N/A 1 year No No
INDONESIA
Total guarantee line for
Total actual guarantee amount for subsidiaries
subsidiaries approved during 3,750.00 789.17
during this Reporting Period (C2)
this Reporting Period (C1)
Total approved guarantee line
Total actual guarantee balance for subsidiaries
for subsidiaries at the end of 6,000.00 338.07
at the end of this Reporting Period (C4)
this Reporting Period (C3)
Total guarantee amount (total of the above-mentioned three kinds of guarantees)
Total guarantee line approved
Total actual guarantee amount during this
during this Reporting Period 3,750.00 789.17
Reporting Period (C2)
(C1)
Total approved guarantee line
Total actual guarantee balance at the end of
at the end of this Reporting 6,000.00 338.07
this Reporting Period (C4)
Period (C3)
Proportion of the total actual guarantee amount (C4) in net assets
of the Company
Of which:
Amount of guarantees provided for shareholders, the actual
controller and their related parties (D)
Amount of debt guarantees provided directly or indirectly for
entities with a liability-to-asset ratio over 70% (E)
Portion of the total guarantee amount in excess of 50% of net
assets (F)
Total amount of the three kinds of guarantees above (D+E+F) 0
Explanation on undue guarantee or possible joint liquidated
None
liability undertaken
Explanation on providing external guarantee violating
None
established procedures
Specification of the use of composite guarantees
Not available.
? Applicable □ Inapplicable
Unit: RMB’0,000
Allowance for impairment
Type Resource of funds Amount incurred Undue balance Amount overdue of overdue wealth
management instruments
Bank financial product Self-owned fund 5,000.00 0.00 0.00 0.00
Total 5,000.00 0.00 0.00 0.00
Particular information of high-risk entrusted asset management with individual significant amount or low security, poor liquidity and no principal protection
? Applicable □ Inapplicable
Unit: RMB’0,000
Amount of Actual Whether there
Amount Overview of
actual recovery of Whether go is wealth
Annual withdrawn the item and
Name of the Type of the Type of the Resource Determination Estimate profits or profits or through management
Amount Initial date Ended date Use of fund yield for impairment the related
trustee trustee product of funds of return profit losses in losses in stator entrustment
reference provision in index for
reporting reporting procedures plan in future
current year inquiring
period period or not
Principal-
Payment of Subject to the
Xiamen protected Self- Recovered
Structural interest and future market http://www.c
International Bank with 5,000.00 owned 2024/1/10 2025/1/9 3.11% 157.66 157.66 upon N/A Yes
deposit principal at yield and fund ninfo.com.cn
Bank floating fund maturity
maturity condition
proceeds
Total 5,000.00 157.66 157.66
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment for entrusted asset management
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
XIII. Other significant events
□ Applicable ? Inapplicable
XIV. Significant events of subsidiaries
□ Applicable ? Inapplicable
Section VI. Change in Shares & Shareholders
I. Changes in shares
Unit: share
Before Increase/decrease (+/-) After
Increase
Percentage New Bonus from Percentage
Number Other Subtotal Number
(%) issues shares capital (%)
reserve
Of which: Shares
held by state
Shares held by
domestic corporations
Shares held by
foreign corporations
Others
by corporations in
placement
or others
shares
listed foreign shares
stocks listed abroad
Reasons for the share changes
□ Applicable ? Inapplicable
Approval of share changes
□ Applicable ? Inapplicable
Transfer of share ownership
□ Applicable ? Inapplicable
Implementation progress of share repurchases
□ Applicable ? Inapplicable
Progress on reducing the repurchased shares by way of centralized bidding
□ Applicable ? Inapplicable
Change in share capital’s impacts on basic EPS and diluted EPS in recent year and recent issue, and net assets per
share attributed to equity shareholder and financial index etc.
□ Applicable ? Inapplicable
Other contents was necessary to the company or the securities regulators required to be disclosed
□ Applicable ? Inapplicable
□ Applicable ? Inapplicable
II. Issuance and listing of securities
□ Applicable ? Inapplicable
III. Total number of shareholders and their shareholdings
Unit: share
Total number of preference
Total number of common shareholders at
the period-end
rights at the period-end
Greater than 5% or top 10 common shareholders
Increase/dec Pledged, marked or
Total common Number of
Name of Nature of Shareholding rease during Number of common frozen shares
shares held at the common
shareholder shareholder percentage the reporting private shares Status of Number of
period-end public shares
period shares shares
FORDCHEE
DEVELOPM Foreign
ENT corporation
LIMITED
EUPA
INDUSTRY Foreign
CORPORATI corporation
ON LIMITED
FILLMAN
Foreign
INVESTMEN 2.49% 4,621,596.00 Unchanged 0 4,621,596.00 N/A 0
corporation
TS LIMITED
GUOTAI
JUNAN
SECURITIES Foreign
（HONG corporation
KONG）
LIMITED
YANG Domestic
WENLIANG individual
CHEN Domestic
YONGQUAN individual
CHEN Foreign
YONGQING individual
CHEN Foreign
LIJUAN individual
DING Domestic
XIAOLUN individual
Domestic New
CAO YIFAN 0.54% 1,010,000.00 0 1,010,000.00 N/A 0
individual shareholders
Strategic investor or general
corporation becoming a top
None
ten common shareholder
due to placing of new shares
Related or acting-in-concert The first, the second and the third shareholders are the Company’s corporate controlling shareholders. It is
parties among the unknown whether the other public shareholders are related parties or acting-in-concert parties as prescribed in the
shareholders above Administrative Methods for Disclosure of the Shareholding Changes of the Listed Company’s Shareholders.
Above shareholders
involved in entrusting/being
None
entrusted with voting rights
and giving up voting rights
Special explanation for the
existence of repurchase
None
accounts among the top ten
shareholders
Top ten common public shareholders
Number of common public shares held at the Type of shares
Name of shareholder
period-end Type Number
FORDCHEE
DEVELOPMENT 53,940,530.00 Domestically listed foreign share 53,940,530.00
LIMITED
EUPA INDUSTRY
CORPORATION LIMITED
FILLMAN
INVESTMENTS LIMITED
GUOTAI JUNAN
SECURITIES（HONG 2,452,166.00 Domestically listed foreign share 2,452,166.00
KONG） LIMITED
YANG WENLIANG 2,108,071.00 Domestically listed foreign share 2,108,071.00
CHEN YONGQUAN 1,929,476.00 Domestically listed foreign share 1,929,476.00
CHEN YONGQING 1,658,078.00 Domestically listed foreign share 1,658,078.00
CHEN LIJUAN 1,633,768.00 Domestically listed foreign share 1,633,768.00
DING XIAOLUN 1,170,000.00 Domestically listed foreign share 1,170,000.00
CAO YIFAN 1,010,000.00 Domestically listed foreign share 1,010,000.00
Explanation on associated
relationship or/and persons
acting in concert among the
top ten unrestricted common The first, the second and the third shareholders are the Company’s corporate controlling shareholders. It is
shareholders and between unknown whether the other public shareholders are related parties or acting-in-concert parties as prescribed in the
the top ten unrestricted Administrative Methods for Disclosure of the Shareholding Changes of the Listed Company’s Shareholders.
common shareholders and
the top ten common
shareholders
Explanation on the top 10
common shareholders
N/A
participating in the margin
trading business
Situations regarding the participation of shareholders holding more than 5% of the shares, the top 10 shareholders,
and the top 10 unrestricted float shareholders in the securities lending component of the margin financing and
securities lending program.
□ Yes ? No
The top 10 shareholders and the top 10 unrestrictedly tradable shareholders have changed since the last period due
to reasons related to securities lending and borrowing under the margin financing and securities lending program.
□ Yes ? No
Did any of the top ten common shareholders or the top ten unrestricted common shareholders of the Company
conduct any promissory repo during the Reporting Period?
□ Yes ? No
No such cases in the Reporting Period.
IV. Changes in shareholdings of directors, supervisors and executive officers
□ Applicable ? Inapplicable
There was no change in shareholding of directors, supervisors and senior management staffs, for the specific
information please refer to the 2024 Annual Report.
V. Change of the controlling shareholder or the actual controller
Change of the controlling shareholder during this reporting period
□ Applicable ? Inapplicable
No such cases in this reporting period.
Change of the actual controller during this reporting period
□ Applicable ? Inapplicable
No such cases in this reporting period.
VI. Preference Shares
□ Applicable ? Inapplicable
No preference shares in this reporting period.
Section VII. Bonds
□ Applicable ? Inapplicable
Section VIII. Financial Report
I. Auditor’s Report
Whether the semi-annual report has been audited?
□Yes ? No
The semi-annual report of the Company has not been audited.
II. Financial statements (attached)
The Board of Directors of Tsann Kuen (China) Enterprise Co., Ltd.
Board Chairman: Cai Yuansong
Prepared by: TsannKuen (China) Enterprise Co., Ltd Unit：Yuan Currency: CNY
Item Note 2025/6/30 2024/12/31 Item Note 2025/6/30 2024/12/31
Current assets: Current liabilities
Cash and cash equivalents 5.1 390,933,066.61 444,377,943.52 Short-term borrowings 5.21 36,333,653.27
Held-for-trading financial
Held-for-trading financial assets 5.2 50,942,083.33
liabilities
Derivative financial assets Derivative financial liabilities
Notes receivable Notes payable 5.22 4,724,919.53 19,418,627.35
Accounts receivable 5.3 131,705,355.91 203,955,899.80 Accounts payable 5.23 380,175,511.95 517,321,517.29
Accounts receivable financing Advances from customers 5.24 2,547,519.68 2,924,333.25
Advances to suppliers 5.4 8,261,158.90 4,318,758.91 Contract liabilities 5.25 18,059,456.23 16,296,739.65
Other receivables 5.5 16,834,594.69 27,902,480.51 Employee benefits payable 5.26 48,709,969.52 53,957,022.40
Including:Interests receivable Taxes payable 5.27 8,299,865.76 18,310,394.76
Dividend receivable Other payables 5.28 33,275,738.81 40,877,557.33
Inventories 5.6 182,041,733.82 194,399,523.78 Including: Interests payables
Contract assets Dividend payables
Liabilities classified as held for
Assets classified as held for sale
sale
Non-current assets maturing within Non-current liabilities maturing
one year within one year
Other current assets 5.8 419,118,142.70 554,336,979.01 Other current liabilities
Total current assets 1,386,647,898.14 1,531,494,363.30 Total current liabilities 539,674,959.19 670,028,870.73
Non-current assets: Non-current liabilities:
Debt investments 5.9 518,710,855.95 540,534,660.69 Long-term borrowings
Other debt investments Bonds payable
Long-term receivables Including: Preference share
Long-term equity investments 5.10 9,445,123.83 Perpetual capital securities
Other equity instrument investment 5.11 40,000.00 40,000.00 Lease liabilities 5.30 398,487,714.70 396,004,620.97
Item Note 2025/6/30 2024/12/31 Item Note 2025/6/30 2024/12/31
Other non-current financial assets Long-term payables
Long-term employee benefits
Investment properties 5.12 18,874,577.41 19,287,755.23
payable
Fixed assets 5.13 154,068,855.87 146,795,190.83 Estimated liabilities
Construction in progress 5.14 5,056,908.31 3,462,300.89 Deferred income
Productive biological assets Deferred tax liabilities
Oil and gas assets Other non-current liabilities
Right-of-use assets 5.15 347,968,147.44 353,943,869.92 Total non-current liabilities 398,487,714.70 396,004,620.97
Intangible assets 5.16 11,488,501.93 11,947,318.66 Total liabilities 938,162,673.89 1,066,033,491.70
Research and development
Owners’ equity
expenditure
Goodwill Share capital 5.31 185,391,680.00 185,391,680.00
Long-term deferred expenses 5.17 4,300,745.56 5,571,380.26 Other equity instruments
Deferred tax assets 5.18 14,656,978.77 11,872,802.85 Including: Preference shares
Other non-current assets 5.19 8,230,383.08 10,099,186.11 Perpetual capital securities
Total non-current assets 1,092,841,078.15 1,103,554,465.44 Capital reserves 5.32 296,808,965.79 296,808,965.79
Less: Treasury stock
Other comprehensive income 5.33 10,876,581.02 11,252,746.52
Specific reserves
Surplus reserves 5.34 81,427,732.56 81,427,732.56
Retained earnings 5.35 510,149,004.06 527,518,517.81
Total owner’s equity attributable
to parent company
Non-controlling interests 456,672,338.97 466,615,694.36
Total owners’ equity 1,541,326,302.40 1,569,015,337.04
Total liabilities and owners'
Total assets 2,479,488,976.29 2,635,048,828.74 2,479,488,976.29 2,635,048,828.74
equity
Legal Representative: Cai Yuansong Chief Financial Officer:Wu Jianhua Finance Manager:Wu Jianhua
Prepared by: TsannKuen (China) Enterprise Co., Ltd Unit：Yuan Currency: CNY
Assets Note 2025/6/30 2024/12/31 Liabilities and owners' equity Note 2025/6/30 2024/12/31
Current assets: Current liabilities
Cash and cash equivalents 12,560,284.26 9,893,016.08 Short-term borrowings
Held-for-trading financial Held-for-trading financial
assets liabilities
Derivative financial assets Derivative financial liabilities
Notes receivable Notes payable
Accounts receivable 15.1 421,668.75 201,780.44 Accounts payable 960,812.01 1,815,877.06
Accounts receivable Advances from customers 2,212,535.69 2,403,680.33
financing
Advances to suppliers 23,241.57 21,287.13 Contract liabilities 65,038.58 153,646.35
Other receivables 15.2 6,112,753.11 6,555,310.24 Employee benefits payable 5,230,667.04 8,589,134.60
Including: Interests
receivable Taxes payable 5,958,844.13 5,127,289.98
Dividend receivable Other payables 3,856,814.34 13,173,843.37
Inventories 1,172,815.34 2,264,166.58 Including: Interests payables
Contract asset Dividend payables
Assets classified as held for Liabilities classified as held for
sale sale
Non-current assets maturing Non-current liabilities maturing
within one year within one year
Other current assets Other current liabilities
Total current assets 20,290,763.03 18,935,560.47 Total current liabilities 18,284,711.79 31,263,471.69
Non-current assets: Non-current liabilities:
Debt investments Long-term borrowings
Other debt investments Bonds payable
Long-term receivables Including: Preference share
Long-term equity
investments 15.3 923,414,701.56 923,414,701.56 Perpetual capital securities
Assets Note 2025/6/30 2024/12/31 Liabilities and owners' equity Note 2025/6/30 2024/12/31
Other equity instrument 40,000.00 40,000.00 Lease liabilities
investment
Other non-current financial
assets Long-term payables
Investment properties 18,848,322.95 19,301,965.49
Long-term employee benefits
payable
Fixed assets 243,499.51 294,240.38 Estimated liabilities
Construction in progress 26,732.67 97,676.45 Deferred income
Productive biological assets Deferred tax liabilities
Oil and gas assets Other non-current liabilities
Right-of-use assets Total non-current liabilities
Intangible assets Total liabilities 18,284,711.79 31,263,471.69
Research and development Owners’ equity
expenditure
Goodwill Share capital 185,391,680.00 185,391,680.00
Long-term deferred 794,380.03 1,016,860.33 Other equity instruments
expenses
Deferred tax assets 721,941.55 824,852.10 Including: Preference shares
Other non-current assets Perpetual capital securities
Total non-current assets 944,089,578.27 944,990,296.31 Capital reserves 271,490,289.82 271,490,289.82
Less: Treasury stock
Other comprehensive income
Specific reserves
Surplus reserves 81,427,732.56 81,427,732.56
Retained earnings 407,785,927.13 394,352,682.71
Total owners’ equity 946,095,629.51 932,662,385.09
Total liabilities and owners' 964,380,341.30 963,925,856.78
Total assets
equity
Legal Representative: Cai Yuansong Chief Financial Officer:Wu Jianhua Finance Manager:Wu Jianhua
Prepared by: TsannKuen (China) Enterprise Co., Ltd Unit：Yuan Currency: CNY
Item Note Reporting period Same period of last
year
I. Revenue 5.36 652,773,296.39 788,085,998.03
Including: operating revenue 5.36 652,773,296.39 788,085,998.03
II. Cost of sales 645,659,208.44 752,393,700.63
Including: operating cost 5.36 562,880,349.18 665,733,282.11
Taxes and surcharges 5.37 4,083,979.63 3,627,552.69
Selling and distribution expenses 5.38 11,706,746.06 15,705,789.17
General and administrative expenses 5.39 34,691,484.86 34,966,806.51
Research and development expenses 5.40 29,941,757.03 32,146,701.14
Finance costs 5.41 2,354,891.68 213,569.01
Including: Interest expense 11,155,646.85 11,082,809.10
Interest income 3,750,247.27 7,043,615.67
Add: Other income 5.42 1,808,128.78 909,068.05
Investmentincome/(losses) 5.43 16,576,429.63 14,548,243.97
Including:Investment income from associates and joint ventures -354,876.17
Gains/ (losses) from derecognition of financial assets measured
at amortised cost
Income/ (losses) from net exposure hedging
Gains/ (losses) from changes in fair values 5.44 -942,083.33 1,950,911.11
Impairment loss of credit 5.45 -2,109,067.68 1,310,991.27
Impairment loss of asset 5.46 -2,818,668.81 -5,385,687.68
Gains/ (losses) from disposal of assets 5.47 1,265,588.90 600,085.35
III. Profit/(loss) from operations 20,894,415.44 49,625,909.47
Add: Non-operating income 5.48 679,417.25 148,920.32
Less: Non-operating expenses 5.49 74,055.07 52,501.87
IV. Profit/(loss) before tax 21,499,777.62 49,722,327.92
Less: Income tax expenses 5.50 1,869,934.96 5,204,909.85
V. Net profit/(loss) 19,629,842.66 44,517,418.07
(I) Net profit/(loss) by continuity
Net profit/(loss) from continuing operation 19,629,842.66 44,517,418.07
Net profit/(loss) from discontinued operation
(II) Net profit/(loss) by ownership attribution
Attributable to owners of the parent 16,000,988.65 33,989,579.63
Attributable to non-controlling interests 3,628,854.01 10,527,838.44
Item Note Reporting period Same period of last
year
VI. Other comprehensive income, after tax 5.51 -501,554.00 122,316.97
(a) Attributable to owners of the parent 5.51 -376,165.50 91,737.73
(i) Items that will not be reclassified subsequently to profit or loss
which will not be reclassified subsequently to profit and loss
(ii) Items that may be reclassified subsequently to profit or loss 5.51 -376,165.50 91,737.73
which will be reclassified subsequently to profit or loss
reclassification of financial assets
(b) Attributable to non-controlling interests 5.51 -125,388.50 30,579.24
VII. Total comprehensive income 19,128,288.66 44,639,735.04
Attributable to owners of the parent 15,624,823.15 34,081,317.36
Attributable to non-controlling interests 3,503,465.51 10,558,417.68
VIII. Earnings per share:
Basic earnings per share 16.2 0.09 0.18
Diluted earnings per share 16.2 0.09 0.18
Where business mergers under the same control occurred in the Reporting Period, net profit achieved by the merged parties before
the business mergers was CNY 0.00, with the corresponding amount for the same period of last year being CNY 0.00.
Legal Representative: Cai Yuansong Chief Financial Officer：Wu Jianhua Finance Manager: Wu Jianhua
Prepared by: TsannKuen (China) Enterprise Co., Ltd Unit：Yuan Currency: CNY
Same period of last
Item Note Reporting period
year
I. Revenue 15.4 33,325,016.04 30,099,321.70
Less: Costs of sales 15.4 20,729,470.91 18,160,768.94
Taxes and surcharges 1,850,440.08 1,738,871.49
Selling and distribution expenses 1,126,624.30 2,163,347.05
Administrative expenses 1,709,394.31 1,740,236.93
Research and development expenses
Finance costs -212,456.47 750,817.04
Including: Interest expense
Interest income 116,089.08 156,953.27
Add: Other income 24,784.44 137,551.83
Investment income/(losses) 15.5 40,989,673.41 50,748,305.69
Including: Investment income from associates and joint
ventures
Gains /(losses) from derecognition of financial assets
measured at amortised cost
Income /(losses) from net exposure hedging
Gains/(losses) from changes in fair values
Impairment loss of credit -80,876.19 -21,905.00
Impairment loss of asset -378,965.52 -124,775.72
Gains/(losses) from disposal of assets
II. Profit/(loss) from operations 48,676,159.05 56,284,457.05
Add: Non-operating income 50,150.00 38,150.00
Less: Non-operating expenses
III. Profit/(loss) before tax 48,726,309.05 56,322,607.05
Less: Income tax expenses 1,922,562.23 1,377,120.27
IV. Net profit/(loss) 46,803,746.82 54,945,486.78
Net profit/(loss) from continuing operation 46,803,746.82 54,945,486.78
Net profit/(loss) from discontinued operation
V. Other comprehensive income, after tax
(i) Items that will not be reclassified subsequently to profit or
loss
which will not be reclassified subsequently to profit and loss
(ii) Items that may be reclassified subsequently to profit or loss
which will be reclassified subsequently to profit or loss
reclassification of financial assets
VI. Total comprehensive income 46,803,746.82 54,945,486.78
Legal Representative: Cai Yuansong Chief Financial Officer：Wu Jianhua Finance Manager: Wu Jianhua
Prepared by: TsannKuen (China) Enterprise Co., Ltd Unit：Yuan Currency: CNY
Same period of
Item Note Reporting period
last year
I. Cash flows from operating activities
Cash received from the sale of goods and the rendering of services 708,216,972.45 744,020,596.18
Cash received from tax refund 62,498,228.93 64,704,665.32
Other cash received relating to operating activities 5.52 31,314,118.51 31,938,727.92
Subtotal of cash inflows from operating activities 802,029,319.89 840,663,989.42
Cash payments for goods purchased and services received 593,600,941.63 568,982,943.37
Cash payments to and on behalf of employees 151,067,977.57 162,193,081.64
Payments of taxes 22,675,852.81 64,227,780.29
Other cash payments relating to operating activities 5.52 64,931,416.35 71,557,176.73
Subtotal of cash outflows from operating activities 832,276,188.36 866,960,982.03
Net cash flows from operating activities -30,246,868.47 -26,296,992.61
II. Cash flows from investing activities
Cash received from disposal and redemption of investments 50,000,000.00 101,260,500.00
Cash received from returns on investments 6,148,253.50 11,292,745.00
Net cash received from disposals of fixed assets, intangible assets and other 1,022,498.75
long-term assets
Net cash received from disposals of subsidiaries and other business units
Other cash received relating to investing activities 5.52 173,102,725.55 268,987,022.90
Subtotal of cash inflows from investing activities 229,250,979.05 382,562,766.65
Cash payments to acquire fixed, intangible and other long-term assets 34,305,082.39 14,149,364.23
Cash payments to acquire investments 89,800,000.00 280,000,000.00
Net cash payments to acquire subsidiaries and other business units
Other cash payments relating to investing activities 5.52 116,202,277.78 241,218,285.85
Subtotal of cash outflows from investing activities 240,307,360.17 535,367,650.08
Net cash flows from investing activities -11,056,381.12 -152,804,883.43
III. Cash flows from financing activities
Cash received from capital contributions
Including: Cash received from absorbing minority shareholders' equity
investment by subsidiaries
Cash received from borrowings 35,848,000.00 21,282,600.00
Other cash received relating to financing activities 5.52 3,047,365.87 6,069,665.05
Subtotal of cash inflows from financing activities 38,895,365.87 27,352,265.05
Cash repayments of debts
Cash payments for dividends, distribution of profit and interest expenses 46,817,323.30 60,612,944.83
Including: Dividends, distribution of profit paid by subsidiaries to 13,446,820.90 16,479,864.07
minority shareholders
Other cash payments relating to financing activities 5.52 2,754,112.41 4,301,333.56
Subtotal of cash outflows from financing activities 49,571,435.71 64,914,278.39
Net cash flows from financing activities -10,676,069.84 -37,562,013.34
IV. Effect of foreign exchange rate changes on cash and cash equivalents -678,342.02 -1,332,588.95
V. Net increase / (decrease) in cash and cash equivalents -52,657,661.45 -217,996,478.33
Plus: Cash and cash equivalents at the beginning of the period 441,890,727.50 561,809,622.45
VI. Cash and cash equivalents at the end of the period 389,233,066.05 343,813,144.12
Legal Representative: Cai Yuansong Chief Financial Officer：Wu Jianhua Finance Manager: Wu Jianhua
Prepared by: TsannKuen (China) Enterprise Co., Ltd Unit：Yuan Currency: CNY
Same period of
Item Note Reporting period
last year
I. Cash flows from operating activities
Cash received from the sale of goods and the rendering of 1,689,450.99 1,760,436.27
services
Cash received from tax refund 0.00 4,882.54
Other cash received relating to operating activities 36,201,121.80 30,502,889.54
Subtotal of cash inflows from operating activities 37,890,572.79 32,268,208.35
Cash payments for goods purchased and services received 1,574,640.66 2,328,505.23
Cash payments to and on behalf of employees 3,401,721.24 3,016,039.56
Payments of taxes 6,252,092.45 6,501,551.23
Other cash payments relating to operating activities 31,615,499.30 29,296,111.31
Subtotal of cash outflows from operating activities 42,843,953.65 41,142,207.33
Net cash flows from operating activities -4,953,380.86 -8,873,998.98
II. Cash flows from investing activities
Cash received from disposal and redemption of investments
Cash received from returns on investments 40,989,673.41 50,748,305.69
Net cash received from disposals of fixed assets, intangible
assets and other long-term assets
Net cash received from disposals of subsidiaries and other
business units
Other cash received relating to investing activities
Subtotal of cash inflows from investing activities 40,989,673.41 50,748,305.69
Cash payments to acquire fixed, intangible and other long-
term assets
Cash payments to acquire investments
Net cash payments to acquire subsidiaries and other business
units
Other cash payments relating to investing activities
Subtotal of cash outflows from investing activities 0.00 0.00
Net cash flows from investing activities 40,989,673.41 50,748,305.69
III. Cash flows from financing activities
Cash received from capital contributions
Cash received from borrowings
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 0.00 0.00
Cash repayments of debts
Cash payments for dividends, distribution of profit and interest 33,370,502.40 44,133,080.76
expenses
Other cash payments relating to financing activities
Subtotal of cash outflows from financing activities 33,370,502.40 44,133,080.76
Net cash flows from financing activities -33,370,502.40 -44,133,080.76
IV. Effect of foreign exchange rate changes on cash and cash 1,478.03 -2,947.90
equivalents
V. Net increase / (decrease) in cash and cash equivalents 2,667,268.18 -2,261,721.95
Plus: Cash and cash equivalents at the beginning of the period 9,893,016.08 7,989,557.11
VI. Cash and cash equivalents at the end of the period 12,560,284.26 5,727,835.16
Legal Representative: Cai Yuansong Chief Financial Officer：Wu Jianhua Finance Manager: Wu Jianhua
Prepared by: TsannKuen (China) Enterprise Co., Ltd Unit：Yuan Currency: CNY
Reporting period
Owners’ equity attributable to the parent company
Item
Other equity instruments Non-controlling Total owners’
Less: Other
Capital Specific Surplus Retained interests equity
Share capital Perpetual Treasury comprehensive Subtotal
Preference reserves reserves reserves earnings
capital Others stock income
shares
securities
I. Balance brought forward 185,391,680.00 0.00 0.00 0.00 296,808,965.79 0.00 11,252,746.52 0.00 81,427,732.56 527,518,517.81 1,102,399,642.68 466,615,694.36 1,569,015,337.04
Add:Changes in accounting policy
Correction of prior period errors
Business combination under common
control
Others
II. Balance as at 1 January 185,391,680.00 296,808,965.79 11,252,746.52 81,427,732.56 527,518,517.81 1,102,399,642.68 466,615,694.36 1,569,015,337.04
III. Changes in equity during the
-376,165.50 -17,369,513.75 -17,745,679.25 -9,943,355.39 -27,689,034.64
reporting period
(i) Total comprehensive income -376,165.50 16,000,988.65 15,624,823.15 3,503,465.51 19,128,288.66
(ii) Capital contributions or withdrawals
by owners
shareholders
other equity instruments
owners’ equity
(iii) Profit distribution -33,370,502.40 -33,370,502.40 -13,446,820.90 -46,817,323.30
Reporting period
Owners’ equity attributable to the parent company
Item
Other equity instruments Non-controlling Total owners’
Less: Other
Capital Specific Surplus Retained interests equity
Share capital Perpetual Treasury comprehensive Subtotal
Preference reserves reserves reserves earnings
capital Others stock income
shares
securities
-33,370,502.40 -33,370,502.40 -13,446,820.90 -46,817,323.30
shareholders)
(iv) Transfer between owners' equity
capital
capital
accumulated deficits
retained earnings
to retained earnings
(v) Specific reserves
period
(vi) Others -
IV. Balance carried forward 185,391,680.00 296,808,965.79 10,876,581.02 81,427,732.56 510,149,004.06 1,084,653,963.43 456,672,338.97 1,541,326,302.40
(Continued)
The same period of last year
Owners’ equity attributable to the parent company
Item
Other equity instruments Non-controlling Total owners’
Less: Other
Capital Specific Surplus Retained interests equity
Share capital Perpetual Treasury comprehensive Subtotal
Preferenc reserves reserves reserves earnings
capital Others stock income
e shares
securities
I. Balance brought forward 185,391,680.00 296,808,965.79 10,227,053.51 75,501,488.36 507,010,039.53 1,074,939,227.19 459,444,612.96 1,534,383,840.15
Add:Changes in accounting policy
Correction of prior period errors
Business combination under common
control
Others
II. Balance as at 1 January 185,391,680.00 296,808,965.79 10,227,053.51 75,501,488.36 507,010,039.53 1,074,939,227.19 459,444,612.96 1,534,383,840.15
III. Changes in equity during the
reporting period
(i) Total comprehensive income 91,737.73 33,989,579.63 34,081,317.36 10,558,417.68 44,639,735.04
(ii) Capital contributions or withdrawals
by owners
shareholders
other equity instruments
owners’ equity
(iii) Profit distribution -46,347,920.00 -46,347,920.00 -16,479,864.07 -62,827,784.07
-46,347,920.00 -46,347,920.00 -16,479,864.07 -62,827,784.07
shareholders)
The same period of last year
Owners’ equity attributable to the parent company
Item
Other equity instruments Non-controlling Total owners’
Less: Other
Capital Specific Surplus Retained interests equity
Share capital Perpetual Treasury comprehensive Subtotal
Preferenc reserves reserves reserves earnings
capital Others stock income
e shares
securities
(iv) Transfer between owners' equity
capital
capital
accumulated deficits
retained earnings
to retained earnings
(v) Specific reserves
period
(vi) Others 0.01 0.01
IV. Balance carried forward 185,391,680.00 296,808,965.79 10,318,791.24 75,501,488.36 494,651,699.16 1,062,672,624.55 453,523,166.58 1,516,195,791.13
Legal Representative: Cai Yuansong Chief Financial Officer：Wu Jianhua Finance Manager：Wu Jianhua
Prepared by: TsannKuen (China) Enterprise Co., Ltd Unit：Yuan Currency: CNY
Reporting period
Other equity instruments
Less: Other
Item Perpetual Capital Specific Surplus
Share capital Preference Treasury comprehensive Retained earnings Total owners’ equity
capital Others reserves reserves reserves
shares stock income
securities
I. Balance brought forward 185,391,680.00 271,490,289.82 81,427,732.56 394,352,682.71 932,662,385.09
Add:Changes in accounting policy
Correction of prior period errors
Others
II. Balance as at 1 January 185,391,680.00 271,490,289.82 81,427,732.56 394,352,682.71 932,662,385.09
III. Changes in equity during the reporting period 13,433,244.42 13,433,244.42
(i) Total comprehensive income 46,803,746.82 46,803,746.82
(ii) Capital contributions or withdrawals by owners
shareholders
other equity instruments
(iii) Profit distribution -33,370,502.40 -33,370,502.40
(iv) Transfer between owners' equity
(v) Specific reserves
(vi) Others
IV. Balance carried forward 185,391,680.00 271,490,289.82 81,427,732.56 407,785,927.13 946,095,629.51
(Continued)
Same period of last year
Other equity instruments
Item Less: Other
Perpetual Capital Specific Surplus
Share capital Preference Treasury comprehensive Retained earnings Total owners’ equity
capital Others reserves reserves reserves
shares stock income
securities
I. Balance brought forward 185,391,680.00 271,490,289.82 75,501,488.36 387,364,404.92 919,747,863.10
Add:Changes in accounting policy
Correction of prior period errors
Others
II. Balance as at 1 January 185,391,680.00 271,490,289.82 75,501,488.36 387,364,404.92 919,747,863.10
III. Changes in equity during the reporting period 8,597,566.78 8,597,566.78
(i) Total comprehensive income 54,945,486.78 54,945,486.78
(ii) Capital contributions or withdrawals by owners
shareholders
other equity instruments
(iii) Profit distribution -46,347,920.00 -46,347,920.00
(iv) Transfer between owners' equity
(v) Specific reserves
(vi) Others
IV. Balance carried forward 185,391,680.00 271,490,289.82 75,501,488.36 395,961,971.70 928,345,429.88
Legal Representative: Cai Yuansong Chief Financial Officer：Wu Jianhua Finance Manager：Wu Jianhua
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Tsann Kuen (China) Enterprise Co., Ltd.
Notes to the Financial Statements for H1 2025
(All amounts are expressed in Renminbi Yuan (“CNY”) unless otherwise stated)
Tsann Kuen (China) Enterprise Co., Ltd. (hereafter “the Company or TKC”) was established in the People’s
Republic of China (“the PRC”) in 1988 as a wholly owned foreign investment enterprise, the Company
named in TsannKuen China (Xiamen) Ltd., firstly, invested by the Fordchee (Hongkong) Co., Ltd., EUPA
Industry Corporation Limited and Hong Kong Fillman investment Co., Ltd.. On 16 February 1993, with the
approval of the Ministry of Foreign Trade and Economic Co-operation, the Company was reorganized into
an incorporated company and was renamed as TsannKuen (China) Enterprise Co., Ltd. In June 1993, the
Company issued 40,000,000 new shares pursuant to an international placing and public offer and these new
shares (“B shares”) were then listed on the Shenzhen Stock Exchange on 30 June 1993. According to the
“Intended Implementation of Share Reducing Proposal” of the 5th extraordinary board of director of 2012
and the 3rd extraordinary shareholders’ general meeting of 2012, obtained the consent from the Investment
Promotion Bureau of Xiamen which is authorized by the Ministry of Commerce and the approval
documents ”The Approval by Investment Promotion Bureau of Xiamen to Consent the Capital Reduction
of TsannKuen (China) Enterprise Co., Ltd”(IPB audit [2012] NO. 698), as the base 1,112,350,077 shares of
the total original share capital, for implementation of share reducing model that all registered shareholders
who was recorded on 28 December 2012 with the proportion 6:1 to reduce the shares. After the
implementation of share reducing model, total share capital was reduced from 1,112,350,077 shares to
Following The Ministry of Commerce of the People’s Republic of China approved (The No. [2005]3107
“Agreed in Principle to the Ministry of Commerce on TsannKuen (China) Enterprise Co., Ltd. Shares
Traded Sponsor of the Approval”), On 6 December 2006, the Company received the [2006] No.266 file
“The notice of TsannKuen (China) Enterprise Co., Ltd, concerning the Approval of non-listed Foreign
Shares Traded” from China Securities Regulatory Commission. The China Securities Regulatory
Commission agreed 700,476,830 unlisted shares (account for 62.97% of the share capital) held by the
Company’s shareholders, EUPA Industry Corporation Limited, Fordchee Development Limited, and
Fillman Investment Limited to transfer into B shares. On 29 November 2007, these B shares could be listed
and exercised on Shenzhen Stock Exchange. Up to 30 June 2025, total B shares held by the three legal
shareholders (EUPA Industry Corporation Limited, Fordchee Development Limited, and Fillman
Investment Limited) are 82,830,966 shares after the implementation of share reducing model (Accounts for
Legal representative: Cai Yuansong
Place of registration: No.88 Xinglong Road, Huli Industrial District, Xiamen, Fujian Province
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
The parent: STAR COMGISTIC CAPITAL CO.,LTD.
The Company operates within the electrical machinery and equipment manufacturing industry.
The industry of the company: electrical machinery and equipment manufacturing.
The company is actually engaged in the main business activities are: Develop, produce and manufacture
small home appliances of gourmet cooking, home helper, tea and coffee; design and manufacture molds
related to the above products, sell the products at home and abroad, and provide after-sales service.
These financial statements were approved for reporting by the Company's Board of Directors on August 7,
These financial statements have been prepared in accordance with the Accounting Standards for Business
Enterprises – Basic Standards, specific accounting standards, the Application Guidance for Accounting
Standards for Business Enterprises, the Interpretations of Accounting Standards for Business Enterprises,
and other relevant provisions (collectively referred to as the “Accounting Standards for Business
Enterprises”) issued by the Ministry of Finance of the People’s Republic of China, as well as the relevant
requirements of the Rules for the Preparation of Information Disclosure by Companies Offering Securities
to the Public No. 15 – General Provisions for Financial Reports issued by the China Securities Regulatory
Commission.
These financial statements have been prepared on a going concern basis.
The Company has assessed its ability to continually operate for the next twelve months from the end of the
reporting period, and no matters that may result in doubt on its ability as a going concern were noted.
Therefore, it is reasonable for the Company to prepare financial statements on the going concern basis.
The Company prepares its financial statements in accordance with the requirements of the Accounting
Standards for Business Enterprises, truthfully and completely reflecting the Company’s financial position
as of 30 June 2025, and its operating results, changes in shareholders' equity, cash flows and other related
information for the year then ended.
The accounting year of the Company is from January 1 to December 31 in calendar year.
The normal operating cycle of the Company is one year.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
The Company takes Renminbi Yuan (“CNY”) as the functional currency.
The Company’s overseas subsidiaries choose the currency of the primary economic environment in which
the subsidiaries operate as the functional currency.
Business combinations under common control: Assets and liabilities acquired by the consolidating party in
a business combination (including goodwill resulting from the acquisition of the consolidated party by the
ultimate controlling party) are measured at the carrying value of the consolidated party's assets and
liabilities in the consolidated financial statements of the ultimate controlling party at the date of the
combination. The difference between the book value of the net assets acquired in the merger and the book
value of the merger consideration paid (or the total nominal value of shares issued) is adjusted against the
equity premium in capital surplus, and if the equity premium in capital surplus is not sufficient for
elimination, retained earnings are adjusted.
Business combinations not under common control: The cost of the combination is the fair value of the
assets paid, liabilities incurred or assumed and equity securities issued by the purchaser to obtain control of
the acquiree at the date of acquisition. The difference between the cost of the combination and the share of
the fair value of the acquiree's identifiable net assets acquired in the combination is recognized as goodwill;
the difference between the cost of the combination and the share of the fair value of the acquiree's
identifiable net assets acquired in the combination is recognized in profit or loss for the period. Each
identifiable asset, liability and contingent liability of the acquiree acquired in a merger that meets the
recognition criteria is measured at fair value at the date of acquisition.
Directly related costs incurred for a business combination are recognized in profit or loss as incurred;
transaction costs for issuing equity securities or debt securities for a business combination are included in
the initial recognition amount of the equity securities or debt securities.
statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control,
and the scope of consolidation includes the Company and all of its subsidiaries. Control means that the
Company has power over the investee, enjoys variable returns through its participation in the investee's
related activities, and has the ability to use its power over the investee to influence the amount of its returns.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
The Company considers the entire enterprise group as one accounting entity and prepares consolidated
financial statements in accordance with uniform accounting policies to reflect the financial position, results
of operations and cash flows of the enterprise group as a whole. The effects of internal transactions that
occur between the Company and its subsidiaries and between subsidiaries are eliminated. If an internal
transaction indicates an impairment loss on the related asset, the full amount of such loss is recognized. If
the accounting policies and accounting periods adopted by a subsidiary are not consistent with those of the
Company, the necessary adjustments are made in accordance with the Company's accounting policies and
accounting periods when preparing the consolidated financial statements.The share of ownership equity, net
profit or loss for the period and comprehensive income for the period attributable to minority shareholders
of the subsidiaries arepresented separately in the consolidated balance sheet under the item of ownership
equity, in the consolidated income statement under the item of net profit and in the consolidated statement
of total comprehensive income, respectively. The balance resulting from the subsidiary's minority share of
current loss exceeding the minority's share of the subsidiary's opening ownership interest is eliminated to
reduce shareholders'equity.
During the reporting period, if a subsidiary or business is added as a result of a business combination under
the same control, the operating results and cash flows of the subsidiary or business from the beginning of
the period in which the subsidiary or business is combined to the end of the reporting period are included in
the consolidated financial statements,while the opening balance of the consolidated financial statements
and the relevant items in the comparative statements are adjusted as if the consolidated reporting entity had
existed since the point when the ultimate controlling party began to control it.
If control over an investee under the same control can be exercised due to additional investment, equity
investments held prior to the acquisition of control over the investee are eliminated from the opening
retained earnings or current profit or loss for the comparative statement period, respectively, for the
relevant gains or losses, other comprehensive income and other changes in net assets recognized between
the later of the date of acquisition of the original equity interest and the date when the consolidated party
and the investee are under the same control and the date of consolidation.
During the reporting period, the addition of subsidiaries or operations as a result of a business combination
not under common control is included in the consolidated financial statements from the date of acquisition
based on the fair value of each identifiable asset, liability and contingent liability determined at the date of
acquisition.
If, for example, additional investments enable the exercise of control over an investee not under common
control, the equity interest in the investee held prior to the date of acquisition is remeasured at the fair value
of that equity interest at the date of acquisition, and the difference between the fair value and its carrying
amount is recognized as investment income for the current period. The difference between the fair value
and its
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
carrying amount is recognized as investment income for the period. The equity interest in the investee held
prior to the date of acquisition is transferred to investment income for the period to which the equity
interest is transferred under the equity method.
When control over an investee is lost due to disposal of part of the equity investment or other reasons, the
remaining equity investment after disposal is remeasured at its fair value at the date of loss of control. The
difference between the sum of the consideration received for the disposal of the equity interest and the fair
value of the remaining equity interest,less the sum of the share of the net assets of the original subsidiary
calculated on a continuing basis from the date of acquisition or the date of consolidation in proportion to
the original shareholding and goodwill, is recognized as investment income in the period in which control
is lost. Other comprehensive income and other changes in owners' equity under the equity method of
accounting related to the equity investment in the original subsidiary that can be reclassified to profit or
loss in the future are transferred to investment income in the current period when control is lost.
Disposal of equity investments in subsidiaries through multiple transactions in steps until the loss of control,
the terms and conditions of the disposal of equity investments in subsidiaries and the economic impact of
each transaction is consistent with one or more of the following, usually indicating that the multiple
transactions are a package deal:
i. The transactions are entered into simultaneously or after taking into account their mutual effects;
Ⅱ. These transactions as a whole to achieve a complete business result;
ⅲ. The occurrence of one transaction depends on the occurrence of at least one other transaction;
ⅳ. A transaction is not economical when viewed alone, but is economical when considered together with
other transactions.
If each transaction is a package transaction, each transaction is accounted for as a disposal of a subsidiary
and loss of control; the difference between the disposal price and the share of the net assets of the
subsidiary corresponding to the disposal of the investment before the loss of control is recognized in the
consolidated financial statements as other comprehensive income and is transferred to profit or loss in the
period is lost when control is lost.
If each transaction is not a package transaction, the accounting treatment is based on partial disposal of the
equity investment in the subsidiary without loss of control before the loss of control; upon the loss of
control, the accounting treatment is based on the general treatment of disposal of subsidiaries.
The difference between the newly acquired long-term equity investment due to the
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
purchase of minority interest and the share of net assets of the subsidiary calculated in proportion to the
newly acquired shareholding on an ongoing basis from the date of acquisition or the date of consolidation is
adjusted to the equity premium in capital surplus in the consolidated balance sheet; if the equity premium in
capital surplus is not sufficient for elimination, it is adjusted to retained earnings.
The difference between the disposal price and the share of net assets of the subsidiary calculated on
acontinuing basis from the date of acquisition or the date of consolidation corresponding to the disposal of
the long-term equity investment is adjusted to the equity premium in capital surplus in the consolidated
balance sheet, and if the equity premium in capital surplus is not sufficient to offset it, retained earnings are
adjusted.
The cash listed on the cash flow statements of the Group refers to cash on hand and bank
deposit. The cash equivalents refer to short-term (normally with original maturities of three months or less)
and liquid investments which are readily convertible to known amounts of cash and subject to an
insignificant risk of changes in value.
At the initial recognition of foreign currency transactions, the entity uses the spot exchange rate on the date
of the transaction or an approximate spot exchange rate determined using a systematic and rational method
that is close to the spot rate at the date of the transaction (hereinafter referred to as the approximate spot
rate) for conversion into the functional currency.
On the balance sheet date, for foreign currency monetary items, the spot exchange rate on the balance sheet
date is used for conversion. The exchange differences arising from the difference between the spot
exchange rate on the balance sheet date and the spot rate at the date of initial recognition or the previous
balance sheet date are recognized in profit or loss. For non-monetary foreign currency items measured at
historical cost, the spot exchange rate at the date of the transaction continues to be used; for non-monetary
foreign currency items measured at fair value, the spot exchange rate on the date when the fair value is
determined is used, and the difference between the amount in the functional currency after conversion and
the original amount in the functional currency is recognized in profit or loss.
Before translating the financial statements of a foreign operation, adjust the accounting periods and
accounting policies of the foreign operation to align with those of the reporting entity. Then, prepare the
financial statements in the relevant currency (other than the functional currency) based on the adjusted
accounting policies and periods. The translation of the financial statements of the foreign operation should
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
be performed as follows:
①Assets and Liabilities in the Statement of Financial Position:
Assets and liabilities are translated at the spot exchange rate on the balance sheet date.
For equity items, except for "retained earnings," other equity items are translated at the spot exchange rates
prevailing at the dates of the transactions.
②Income and Expense Items in the Statement of Profit or Loss:
Income and expense items are translated at the spot exchange rates on the dates of the transactions or using
an approximate exchange rate that is a reasonable approximation of the spot rate on the transaction date.
③Foreign Currency Cash Flows and Cash Flows of Foreign Subsidiaries:
Foreign currency cash flows and cash flows of foreign subsidiaries are translated at the spot exchange rates
on the dates of the cash flows or using an approximate exchange rate that is a reasonable approximation of
the spot rate on the date of the cash flow.
The effect of exchange rate changes on cash and cash equivalents should be reported as a separate
reconciling item in the statement of cash flows.
④Translation Differences Arising from the Translation of Foreign Financial Statements:
In the preparation of consolidated financial statements, the resulting translation differences are presented
separately in the consolidated statement of financial position under equity as "other comprehensive
income."
When a foreign operation is disposed of and control is lost, the cumulative translation differences related to
that foreign operation, which are presented in the equity section of the balance sheet, should be transferred
to profit or loss in full or proportionally, depending on the extent of the disposal.
The Company recognizes a financial asset, a financial liability or an equity instrument when it becomes a
party to a financial instrument contract.
Based on the Company's business model for managing financial assets and the contractual cash flow
characteristics of financial assets, financial assets are classified at initial recognition as financial assets
carried at amortized cost, financial assets at fair value through other comprehensive income, and financial
assets at fair value through profit or loss.
The Company classifies financial assets at amortized cost that are not designated as
financial assets at fair value through profit or loss if they both meet the following criteria:
- The business model is to collect the contractual cash flows;
- The contractual cash flows are only payments of principal and interest based on the outstanding principal
amount.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
The Company classifies financial assets as financial assets at fair value through other comprehensive
income (debt instruments) that are not designated as at fair value through profit or loss if they also meet the
following criteria:
- Operating model with the objective of both collecting the contractual cash flows and selling the financial
asset;
- The contractual cash flows are only payments on the principal and interest based on the outstanding
principal amount.
For investments in non-trading equity instruments, the Company may irrevocably
designate them at initial recognition as financial assets at fair value through other comprehensive income
(equity instruments). This designation is made on an individual investment basis and the related investment
meets the definition of an equity instrument from the perspective of the issuer.
Except for the above-mentioned financial assets measured at amortized cost and financial assets at fair
value through other comprehensive income, the Company classifies all remaining financial assets as
financial assets at fair value through profit or loss. On initial recognition, the Company may irrevocably
designate financial assets that would otherwise be classified as financial assets at amortized cost or at fair
value through other comprehensive income as financial assets at fair value through profit or loss if it can
eliminate or significantly reduce the accounting mismatch.
Financial liabilities are classified at initial recognition as financial liabilities at fair value through profit or
loss and financial liabilities at amortized cost.
A financial liability maybe designated as a financial liability at fair value through profit or loss at initial
measurement if one of the following conditions is met:
①The designation eliminates or significantly reduces an accounting mismatch.
②The management and performance evaluation of a portfolio of financial liabilities or a portfolio of
financial assets and financial liabilities is performed on a fair value basis in accordance with the enterprise's
risk management or investment strategy as set out in formal written documentation and reported to key
management personnel on this basis within the enterprise.
③The financial liability contains embedded derivatives that are subject to separate splitting.
Financial assets measured at amortized cost, including notes receivable, accounts receivable, other
receivables, long-term receivables and debt investments, are initially measured at fair value, with related
transaction costs included in the initial recognition amount; accounts receivable that do not contain
significant financing components and those that the Company has decided not to consider financing
components that do not exceed one year are initially measured at contractual transaction prices.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Interest calculated using the effective interest rate method during the holding period is recognized in profit
or loss.
On recovery or disposal, the difference between the acquisition price and the carrying amount of the
financial asset is recognized in profit or loss for the current period.
Financial assets (debt instruments) at fair value through other comprehensive income include receivables
financing and other debt investments, which are initially measured at fair value, with related transaction
costs recognized in the initial recognition amount. The financial assets are subsequently measured at fair
value, and changes in fair value are recognized in other comprehensive income, except for interest,
impairment loss or gain and exchange gain or loss calculated using the effective interest rate method.
Upon derecognition, the cumulative gain or loss previously recognized in other
comprehensive income is transferred from other comprehensive income and recognized in profit or loss for
the current period.
Financial assets (equity instruments) at fair value through other comprehensive income,including
investments in other equity instruments, are initially measured at fair value, with related transaction costs
recognized in the initial recognition amount. The financial assets are subsequently measured at fair value,
with changes in fair value recognized in other comprehensive income. Dividends received are recognized in
current profit or loss.
Upon derecognition, the cumulative gain or loss previously recognized in other
comprehensive income is transferred from other comprehensive income and recognized in retained
earnings.
Financial assets at fair value through profit or loss include financial assets held for trading, derivative
financial assets and other non-current financial assets, which are initially measured at fair value, with
related transaction costs recognized in profit or loss. The financial assets are subsequently measured at fair
value, with changes in fair value recognized in profit or loss for the period.
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
derivative financial liabilities, which are initially measured at fair value, with related transaction costs
recognized in profit or loss. The financial liabilities are subsequently measured at fair value, with changes
in fair value recognized in profit or loss for the period.
Upon derecognition, the difference between the carrying amount and the consideration paid is recognized
in profit or loss for the current period.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Financial liabilities measured at amortized cost include short-term borrowings, notes payable, accounts
payable, other payables, long-term borrowings, bonds payable and long- term payables, which are initially
measured at fair value, with related transaction costs included in the initial recognition amount.
Interest calculated using the effective interest rate method during the holding period is recognized in profit
or loss.
Upon derecognition, the difference between the consideration paid and the carrying amount of the financial
liability is recognized in profit or loss for the current period.
transfers
The Company derecognizes a financial asset when one of the following conditions is met:
- The contractual rights to receive cash flows from the financial asset are terminated;
- The financial asset has been transferred and substantially all the risks and rewards of ownership of the
financial asset have been transferred to the transferring party;
- A financial asset has been transferred and control over the financial asset is not retained, although the
Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset.
When the Company modifies or renegotiates a contract with a counterparty and the
modification constitutes a material change, the original financial asset is derecognized and a new financial
asset is recognized in accordance with the modified terms.
A financial asset is not derecognized if substantially all the risks and rewards of ownership of the financial
asset are retained when a transfer of the financial asset occurs.
In determining whether a transfer of financial assets meets the above conditions for derecognition of
financial assets, the principle of substance over formis applied.
The Company distinguishes between transfers of financial assets as a whole and partial transfers of
financial assets. If the transfer of a financial asset as a whole meets the derecognition condition, the
difference between the following two amounts is recognized in profit or loss for the current period:
①The carrying amount of the financial asset transferred;
②The sum of the consideration received for the transfer and the cumulative amount of changes in fair
value previously recognized directly in owners'equity (in the case where the transferred financial asset is a
financial asset (debt instrument) measured at fair value through other comprehensive income).
If a partial transfer of a financial asset satisfies the derecognition condition, the carrying amount of the
financial asset transferred as a whole is apportioned between the
derecognized portion and the unrecognized portion according to theirrespective relative
fair values, and the difference between the following two amounts is recognized in profit or loss:
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
①The carrying amount of the derecognized portion;
②The sum of the consideration for the derecognized portion and the amount
corresponding to the derecognized portion of the cumulative amount of changes in fair value previously
recognized directly in owners'equity (in the case where the financial asset involved in the transfer is a
financial asset (debt instrument) measured at fair value through other comprehensive income).
If the transfer of a financial asset does not meet the derecognition condition, the financial asset continues to
be recognized and the consideration received is recognized as a financial liability.
A financial liability or a portion thereof is derecognized when the present obligation of the financial
liability is discharged in whole or in part. If the Company enters into an agreement with a creditor to
replace an existing financial liability by assuming a new financial liability, and the contractual terms of the
new financial liability are materially different from those of the existing financial liability, the existing
financial liability is derecognized and a new financial liability is recognized at the sametime.
If all or part of the contractual terms of an existing financial liability are substantially modified, the existing
financial liability or part of it is derecognized, and the modified financial liability is recognized as a new
financial liability at the sametime.
When a financial liability is derecognized in whole or in part, the difference between the carrying amount
of the derecognized financial liability and the consideration paid (including non-cash assets transferred or
new financial liabilities assumed) is recognized in profit or loss for the period.
If the Company repurchases a portion of a financial liability, the carrying amount of the financial liability
as a whole is allocated on the repurchase date based on the relative fair values of the portion that continues
to be recognized and the portion that is derecognized. The difference between the carrying amount
allocated to the derecognized portion and the consideration paid (including non-cash assets transferred or
new financial liabilities assumed) is recognized in profit or loss for the period.
The fair value of financial instruments for which there is an active market is determined by quoted prices in
an active market. The fair value of financial instruments for which no active market exists is determined
using valuation techniques. In valuation, the Company uses valuation techniques that are applicable in the
current circumstances and supported by sufficient available data and other information, selects inputs that
are consistent with the characteristics of the asset or liability considered by market participants in
transactions for the relevant asset or liability, and gives preference to the use of relevant observable inputs.
Unobservable inputs are used only if the relevant observable inputs are not available or not practicable to
obtain.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
The Company estimates the expected credit losses on financial assets measured at
amortized cost, financial assets at fair value through other comprehensive income (debt instruments) and
financial guarantee contracts, etc.
The Company recognizes expected credit losses by calculating the probability-weighted amount of the
present value of the difference between the cash flows receivable under the contract and the cash flows
expected to be received, taking into account reasonable and substantiated information about past events,
current conditions and forecasts of future economic conditions, weighted by the risk of default.
For receivables and contract assets resulting from transactions governed by ASBE No. 14, Revenue, the
Company always measures its allowance for losses at an amount equal to the expected credit losses over
the entire duration, regardless of whether or not there is a significant financing component.
For lease receivables resulting from transactions regulated by ASBE No. 21, "Leases," the Company has
elected to always measure its allowance for losses at an amount equal to the expected credit losses over the
entire duration.
For other financial instruments, the Company assesses at each balance sheet date the change in credit risk
of the related financial instruments since initial recognition.
The Company assesses whether the credit risk of a financial instrument has increased significantly since
initial recognition by comparing the risk of default of the financial instrument at the balance sheet date with
the risk of default at the date of initial recognition to determine the relative change in the risk of default
over the expected life of the financial instrument. The Company generally considers that the credit risk of a
financial instrument has increased significantly if it is more than 30 days past due, unless there is
conclusive evidence that the credit risk of the financial instrument has not increased significantly since
initial recognition.
If the credit risk of a financial instrument is low at the balance sheet date, the Company considers that the
credit risk of the financial instrument has not increased significantly since initial recognition.
If the credit risk of a financial instrument has increased significantly since initial
recognition, the Company measures the allowance for losses at an amount equal to the expected credit
losses over the entire life of the financial instrument; if the credit risk of a financial instrument has not
increased significantly since initial recognition, the Company measures the allowance for losses at an
amount equal to the expected credit losses of the financial instrument in the next 12 months. The resulting
increase or reversal amount of the loss allowance is recognized as an impairment loss or gain in profit or
loss. For financial assets (debt instruments) that are measured at fair value through other comprehensive
income, the allowance for losses is recognized in other comprehensive income and the impairment loss or
gain is recognized in profit or loss for the current period and does not reduce the carrying amount of the
financial asset as stated in the balance sheet.
The Company classifies the remaining financial instruments into several groups based on their credit risk
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
characteristics and determines the expected credit losses on a collective basis. The categories of groups for
which the Company recognizes expected credit losses, including notes receivable, accounts receivable,
financing receivables, other receivables, contract assets, and long-term receivables, and the basis for
determining these groups are as follows:
For the notes receivable, accounts receivable, other receivables, accounts receivable financing, and long-
term receivables which are demonstrated to be impaired by any objective evidence, or applicable for
individual assessment, the Company shall individually assess for impairment and recognize the loss
allowance for expected credit losses. If the Company determines that no objective evidence of impairment
exists for notes receivable, accounts receivable, other receivables, accounts receivable financing, and long-
term receivables, or the expected credit loss of a single financial asset cannot be assessed at reasonable cost,
such notes receivable, accounts receivable, other receivables, accounts receivable financing, and long-term
receivables shall be divided into several groups based on similar credit risk characteristics and calculate
collectively on the expected credit loss. The determination basis of groups is as following:
For notes receivable classified as portfolios, the Company calculates expected credit losses based on default
exposure and expected credit loss rates throughout the life of the Company, considering historical credit
loss experience, combined with current conditions and the forecast of the future economic conditions.
Item Basis for determining the groups
Bank acceptance bill The acceptor is a bank with less credit risk.
Commercial acceptance bill According to the credit risk of the acceptor, it should be the same as the
portfolios of accounts receivable.
For receivables that do not contain significant financing components, our company measures the loss
provision based on the expected credit loss amount over the entire duration of the receivable.
For receivables that contain significant financing components and lease receivables, our company always
measures the loss provision based on the expected credit loss amount over the duration of the receivable.
Except for accounts receivable that are assessed individually for credit risk, they are categorized into
different groups based on their credit risk characteristics.：
Item Basis for determining the groups
Aging of Accounts Receivables This group uses the accounts receivables aging as the credit risk
characteristics.
Related parties Related party relationships (Unless there is evidence that a credit loss may
occur).
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
The Company assesses whether the credit risk of other receivables has significantly increased since initial
recognition, and utilizes the amount equivalent to the expected credit loss in the next 12 months or the
whole duration to measures the impairment loss accordingly. Besides the other receivables that have
individually assessed credit risk, the rest of the other receivables are classified into different groups based
on their credit risk characteristics:
Item Basis for determining the groups
This group of receivables includes deposit receivables, advances on behalf of others and
Deposit guarantee quality guarantee deposits to be collected in daily activities.
This group is the declared export tax refund funds that have not been received.
Export tax refund
This group uses the age of accounts receivable as the credit risk characteristics.
Open credits
Related party relationships (Unless there is evidence that a credit loss may occur)
Related parties
The Company's aging calculation method based on the combination of aging recognition credit risk
characteristics:
The aging of accounts receivables for the portfolio of credit risk features recognized by aging is calculated
as follows:
Aging Accrual ratio（%）
Not overdue 0.50
More than 90 days overdue 100.00
The aging of other receivables for the portfolio of credit risk features recognized by aging is calculated as
follows:
Aging Accrual ratio（%）
More than one year 100.00
For debt investment and other debt investment, the Company shall calculate the expected credit loss
through the default exposure and the 12-month or lifetime expected credit loss rate based on the nature of
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
the investment, counterparty and the type of risk exposure.
If the financial instrument has a low risk of default, the borrower has a strong capacity to meet its
contractual cash flow obligations in the near term and adverse changes in economic and business conditions
in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfill its contractual
cash flow obligations.
The Company shall assess whether the credit risk on a financial instrument has increased significantly since
initial recognition, using the change in the risk of a default occurring over the expected life of the financial
instrument, through the comparison of the risk of a default occurring on the financial instrument as at the
reporting date with the risk of a default occurring on the financial instrument as at the date of initial
recognition.
To make that assessment, the Company shall consider reasonable and supportable information, that is
available without undue cost or effort, and that is indicative of significant increases in credit risk since
initial recognition, including forward-looking information. The information considered by the Company are
as following:
Significant changes in internal price indicators of credit risk as a result of a change in credit risk since
inception
Existing or forecast adverse change in the business, financial or economic conditions of the borrower
that results in a significant change in the borrower’s ability to meet its debt obligations；
An actual or expected significant change in the operating results of the borrower; An actual or expected
significant adverse change in the regulatory, economic, or technological environment of the borrower；
Significant changes in the value of the collateral supporting the obligation or in the quality of third-party
guarantees or credit enhancements, which are expected to reduce the borrower’s economic incentive to
make scheduled contractual payments or to otherwise influence the probability of a default occurring;
Significant change that are expected to reduce the borrower’s economic incentive to make scheduled
contractual payments;
Expected changes in the loan documentation including an expected breach of contract that may lead to
covenant waivers or amendments, interest payment holidays, interest rate step-ups, requiring additional
collateral or guarantees, or other changes to the contractual framework of the instrument；
Significant changes in the expected performance and behavior of the borrower；
Contractual payments are more than 30 days past due.
Depending on the nature of the financial instruments, the Company shall assess whether the credit risk has
increased significantly since initial recognition on an individual financial instrument or a group of financial
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
instruments. When assessed based on a group of financial instruments, the Company can group financial
instruments on the basis of shared credit risk characteristics, for example, past due information and credit
risk rating.
Generally, the Company shall determine the credit risk on a financial asset has increased significantly since
initial recognition when contractual payments are more than 30 days past due. The Company can only rebut
this presumption if the Company has reasonable and supportable information that is available without
undue cost or effort, that demonstrates that the credit risk has not increased significantly since initial
recognition even though the contractual payments are more than 30 days past due.
If the company no longer reasonably expects to recover all or part of the contractual cash flows of a
financial asset, the carrying amount of that financial asset shall be directly reduced.
Inventories are classified as: raw materials, work-in-progress, in-house semi-finished goods, finished goods,
low-value consumables, and goods in transit, etc.
Inventories are initially measured at cost, which includes purchase costs, processing costs, and other
expenditures incurred to bring the inventories to their present location and condition.
The cost of inventories used or sold is determined on the weighted average basis.
Adoption of perpetual inventory system.
① Low-value consumables are amortized using the one-time reversal method;
②The one-time reversal method is used for packaging.
Inventories are stated at the lower of cost and net realizable value. The excess of cost over net realizable
value of the inventories is recognised as provision for impairment of inventory, and recognised in current
profit or loss.
Net realizable value of the inventory should be determined on the basis of reliable evidence obtained, and
factors such as purpose of holding the inventory and impact of post balance sheet event shall be considered.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
①In normal operation process, finished goods, products and materials for direct sale, their net realizable
values are determined at estimated selling prices less estimated selling expenses and relevant taxes and
surcharges; for inventories held to execute sales contract or service contract, their net realizable values are
calculated based on contract price. If the quantities of inventories specified in sales contracts are less than
the quantities held by the Company, the net realizable value of the excess portion of inventories shall be
based on general selling prices. Net realizable value of materials held for sale shall be measured based on
market price.
②For materials in stock need to be processed, in the ordinary course of production and business, net
realisable value is determined at the estimated selling price less the estimated costs of completion, the
estimated selling expenses and relevant taxes. If the net realisable value of the finished products produced
by such materials is higher than the cost, the materials shall be measured at cost; if a decline in the price of
materials indicates that the cost of the finished products exceeds its net realisable value, the materials are
measured at net realisable value and differences shall be recognised at the provision for impairment.
③The company generally makes provision for inventory impairment based on an individual basis. For
inventories with large quantity and low unit price, the provisions for inventory impairment are determined
on a category basis. Provision for impairment in the value of inventories is made for inventories held in
stock for more than 180 days based on the estimated realisable value of inventories sold by material
category group.
④If any factor rendering write-downs of the inventories has been eliminated at the reporting date, the
amounts written down are recovered and reversed to the extent of the inventory impairment, which has
been provided for. The reversal shall be included in profit or loss.
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship
between the performance obligations and payments from customers. The right to receive consideration for
goods transferred or services provided by the Company to the customer (and which is dependent on factors
other than the passage of time) is presented as a contract asset. Contract assets and contract liabilities under
the same contract are shown on a net basis. The Company's unconditional (depending only on the passage
of time) right to receive consideration from customers is shown separately as receivables.
The methods of determining expected credit losses on contract assets and the accounting treatment are
described in detail in Note "III.9. (6)Methods of testing and accounting treatment for impairment of
Financial instrument" in this Note.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Joint control refers to the control shared by an arrangement in accordance with the relevant agreement, and
the relevant activities of the arrangement can only be decided with the unanimous consent of the
participants sharing the control. If the Company exercises joint control over an investee together with other
joint venture parties and has rights to the investee's net assets, the investee is a joint venture of the
Company.
Significant influence means having the power to participate in the financial and operating decisions of the
investee, but not being able to control or exercise joint control with other parties over the formulation of
those policies. Where the Company is able to exercise significant influence over an investee, the investee is
an associate of the Company.
①Long-term equity investments resulting from business combinations
For long-term equity investments in subsidiaries formed by business combinations under common control,
the initial investment of long-term equity investments is determined at the date of consolidation based on
the acquisition of the share of the ownership interest of the consolidated party in the book value of the
consolidated financial statements of the ultimate controlling party. The difference between the initial
investment cost of the long-term equity investment and the carrying value of the consideration paid is
adjusted against the equity premium in capital surplus; if the equity premium in capital surplus is not
sufficient for elimination, retained earnings are adjusted. If the Company is able to exercise control over an
investee under the same control due to additional investment, the difference between the initial investment
cost of the long-term equity investment recognized in accordance with the above principle and the sum of
the book value of the long-term equity investment before reaching the consolidation plus the book value of
the consideration paid for further acquisition of shares at the date of consolidation is adjusted against equity
premium, and if the equity premium is not sufficient for elimination, it is reduced against retained earnings.
For long-term equity investments in subsidiaries formed through business combinations not under common
control, the initial investment cost of the long-term equity investment is based on the cost of the
combination determined at the date of acquisition. If it is possible to exercise control over the investee
under non-same control due to additional investment, the sum of the book value of the equity investment
originally held plus the cost of the additional investment is used as the initial investment cost.
②Long-term equity investments acquired through other means instead of business combination
Long-term equity investments acquired by cash payment are recorded at initial investment cost based on
the actual purchase price paid.
Long-term equity investments acquired by issuing equity securities are recorded at the initial investment
cost based on the fair value of the equity securities issued.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
① Long-term equity investments accounted for under the cost method
The Company accounts for its long-term equity investments in subsidiaries using the cost method unless
the investments meet the conditions of being held for sale. Except for the declared but unpaid cash
dividends or profits included in the actual price or consideration paid for the investment, the Company
recognizes investment income for the current period based on the Company's entitlement to the declared
cash dividends or profits of the investee.
②Long-term equity investments accounted for under the equity method
Long-term equity investments in associates and joint ventures are accounted for using the equity method.
The difference between the initial investment cost and the share of the fair value of the identifiable net
assets of the investee at the time of investment is not adjusted to the initial investment cost of the long-term
equity investment; the difference between the initial investment cost and the share of the fair value of the
identifiable net assets of the
investee at the time of investment is recognized in profit or loss for the current period and the cost of the
long-term equity investment is also adjusted.
The Company recognizes investment income and other comprehensive income according to the share of net
profit or loss and other comprehensive income realized by the investee, respectively, and adjusts the
carrying value of the long-term equity investment at the same time; the portion to which the Company is
entitled according to the profit or cash dividends declared by the investee is calculated, and the carrying
value of the long-term equity investment is reduced accordingly; for the investee's ownership interest other
than net profit or loss, other comprehensive income and profit distribution For changes in the equity of the
investee other than net profit or loss, other comprehensive income and profit distribution ("changes in other
owners'equity"), the carrying amount of the long-term equity investment is adjusted and recognized in
owners' equity.
In recognizing the share of the investee's net profit or loss, other comprehensive income and other changes
in owners'equity, the fair value of the investee's identifiable net assets at the time of acquisition is used as
the basis for recognition, and the net profit and other comprehensive income of the investee are adjusted in
accordance with the Company's accounting policies and accounting periods.
Unrealized gains or losses on internal transactions between the company and associate and joint ventures
that are attributable to the Company on the basis of their proportionate share are offset and investment
income is recognized on this basis, except when the assets invested or sold constitute a business.
Unrealized losses on internal transactions with investees are recognized in full if there are impairment
losses on assets.
The net loss incurred by the company in a joint venture or an associate, except for the obligation to assume
additional losses, is limited to a write-down to zero of the carrying amount of the long-term equity
investment and other long-term interests that substantially constitute the net investment in the joint venture
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
or associate. If the joint venture or associate subsequently realizes net profit, the Company resumes
recognition ofrevenue sharing after the revenue sharing amount makes up for the unrecognized loss sharing
amount.
③Disposal of long-term equity investments
The difference between the carrying amount and the actual acquisition price of a long-term equity
investment is recognized in profit or loss for the current period.
If a long-term equity investment accounted for under the equity method is partially disposed of and the
remaining equity interest is still accounted for under the equity method, the other comprehensive income
recognized under the former equity method is carried forward in proportion to the corresponding
percentage using the same basis as the direct disposal of the related assets or liabilities by the investee, and
other changes in owners'equity are carried forward in proportion to the current profit or loss.
If the common control or significant influence over the investee is lost due to the disposal of equity
investments, etc., other comprehensive income recognized as a result of the adoption of the equity method
of accounting for the original equity investment is accounted for on the same basis as the direct disposal of
the related assets or liabilities of the investee upon the termination of the adoption of the equity method of
accounting, and all changes in other owners'equity are transferred to current profit or loss upon the
termination of the adoption of the equity method of accounting.
If control over the investee is lost due to disposal of part of the equity investment, the remaining equity
interest that can exercise joint control or significant influence over the investee is accounted for under the
equity method in the preparation of individual financial statements, and the remaining equity interest is
adjusted as if it had been accounted for under the equity method from the time of acquisition, and other
comprehensive income recognized prior to the acquisition of control over the investee is accounted for on
the same basis as if the investee had directly disposed of the related assets or liabilities. If the remaining
equity interest cannot exercise joint control or significant influence over the investee, it is recognized as a
financial asset, and the difference between its fair value and its carrying amount at the date of loss of
control is recognized in profit or loss for the
current period, and for other comprehensive income and other owner's equity recognized prior to the
acquisition of control of the investee, the remaining equity interest is recognized in profit or loss for the
current period. All other comprehensive income and other changes in owners'equity recognized prior to the
acquisition of control of the investee are carried forward.
If the disposal of an equity investment in a subsidiary through multiple transactions until the loss of control
is a package transaction, each transaction is accounted for as a disposal of an equity investment in a
subsidiary and the loss of control; the difference between the disposal price and the carrying value of the
long-term equity investment corresponding to the equity interest disposed of before the loss of control is
recognized as other comprehensive income in the individual financial statements, and then recognized as
other comprehensive income when control is lost. The difference between the disposal price and the
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
carrying amount of the long-term equity investment before the loss of control is recognized as other
comprehensive income in the individual financial statements, and then transferred to profit or loss in the
period in which control is lost. If it is not a package transaction, each transaction is accounted for separately.
Investment property refers to real estate held to earn rentals or for capital appreciation, or both. It includes
land use rights that have been leased out, land use rights held and intended to be transferred after
appreciation, and buildings that have been leased out (including buildings constructed or developed by the
company for leasing purposes, as well as buildings under construction or development intended for future
leasing).
Subsequent expenditures related to investment property shall be included in the cost of the investment
property if it is probable that the associated economic benefits will flow to the entity and the cost can be
measured reliably; otherwise, they are recognized in profit or loss for the period when incurred.
The company measures existing investment property using the cost model. For investment property - leased
buildings measured at cost, the same depreciation policy applied to the company's fixed assets is used. The
amortization policy for leased land use rights follows the same approach as for intangible assets.
Fixed assets are tangible assets held for the production of goods, provision of services, rental or
management, and with a useful life of more than one fiscal year . A fixed asset is recognized when both of
the following conditions are met:
① It is probable that the economic benefits associated with the fixed asset will flow to the enterprise;
② The cost of the fixed asset can be measured reliably.
Fixed assets are initially measured at cost (taking into account the effect of expected disposal costs).
Subsequent expenditures related to fixed assets are included in the cost of fixed assets when it is probable
that the economic benefits associated with them will flow to the enterprise and their cost can be measured
reliably; for the replaced part, the carrying amount is derecognized; all other subsequent expenditures are
charged to current profit or loss when incurred.
Depreciation of fixed assets is provided using the average annual method, and the depreciation rate is
determined based on the category of fixed assets, estimated useful life and estimated net residual value rate.
For fixed assets with provision for impairment, the depreciation amount is determined in future periods
based on the carrying amount after deducting the provision for impairment and based on the remaining
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
useful life. If each component of fixed assets has different useful lives or provides economic benefits to the
enterprise in different ways, different depreciation rates or depreciation methods are selected and
depreciated separately.
The depreciation methods, useful lifes, residual value rate and annual depreciation rates of various types of
fixed assets are as follows:
Depreciation
Residual Estimated useful life Annual depreciation
Category method
rates (%) (year) rates (%)
Straight-line
Buildings and constructions 7.00-10.00 12-20 4.50-7.50
method
Straight-line
Machinery equipment 0.00 4-15 6.67-25.00
method
Electrical equipment, Model, Straight-line
and other 0.00 5-6 16.67-20.00
method
Straight-line
Vehicles 0.00 6-11 9.09-16.67
method
Straight-line
Improvement expenditure of Amortisation shall be made according to the
leased fixed assets method 0.00
shorter of benefit period and lease period
Fixed assets are derecognized when they are disposed of, or when no economic benefits are expected to
arise from their use or disposal. The disposal proceeds from the sale, transfer,scrapping or destruction of
fixed assets, net of their book value and related taxes and fees, are recognized in profit or loss for the
current period.
Construction in progress is measured at its actual incurred costs. Actual costs include construction costs,
installation costs, borrowing costs eligible for capitalization, and other necessary expenditures incurred to
bring the construction in progress to its intended usable state. When the construction in progress reaches its
intended usable state, it is transferred to property, plant, and equipment (fixed assets) and depreciation
begins from the following month.
For fixed assets that have reached their intended usable state but have not yet completed final settlement
procedures, they are provisionally transferred to fixed assets at estimated values based on project budgets,
cost estimates, or actual incurred costs from the date they reach their intended usable state. Depreciation is
calculated according to the company's fixed asset depreciation policy. Once the final settlement procedures
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
are completed, the originally estimated provisional values are adjusted to reflect the actual costs, but
previously recognized depreciation amounts are not adjusted.
Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized
and included in the cost of those assets. Other borrowing costs are recognized as an expense when they are
incurred and included in profit or loss for the period.
A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use
or sale, such as property, plant, and equipment, investment property, and inventories.
The capitalization period refers to the duration from the start of capitalizing borrowing costs until the
cessation of capitalization, excluding periods when capitalization is suspended.
Borrowing costs begin to be capitalized when all the following conditions are met:
①Expenditure on the asset has been incurred, which includes payments made in cash, non-cash
consideration, or liabilities bearing interest for the acquisition or production of a qualifying asset.
②Borrowing costs have been incurred.
③Activities necessary to prepare the asset for its intended use or sale have commenced. Capitalization of
borrowing costs ceases when the qualifying asset is ready for its intended use or sale.
If there is an abnormal interruption during the construction or production of a qualifying asset and the
interruption lasts continuously for more than three months, the capitalization of borrowing costs should be
suspended. However, if the interruption is a necessary part of the process for preparing the asset for its
intended use or sale, borrowing costs continue to be capitalized. During the suspension period, borrowing
costs are recognized as an expense until the construction or production activities resume.
For specific borrowings taken out to acquire or construct a qualifying asset, the amount of borrowing costs
to be capitalized is determined by subtracting the interest income earned from depositing unused funds in a
bank or from temporary investments from the actual borrowing costs incurred during the period.
For general borrowings used to acquire or construct a qualifying asset, the amount of borrowing costs to be
capitalized is calculated by multiplying the weighted average of the expenditures exceeding the amount of
specific borrowings by the capitalization rate of the general borrowings. The capitalization rate is based on
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
the weighted average effective interest rate of the general borrowings.
During the capitalization period, exchange differences arising from foreign currency denominated specific
borrowings and their interest are capitalized and included in the cost of qualifying assets. Exchange
differences arising from other foreign currency borrowings and their interest are recognized as expenses in
profit or loss.
①The company initially measures intangible assets at cost when they are acquired;
The cost of an externally acquired intangible asset includes the purchase price, related taxes and other
expenses directly attributable to bringing the asset to its intended use.
②Subsequent measurement
The useful life of an intangible asset is analyzed and determined at the time of acquisition.For intangible
assets with finite useful lives, they are amortized over the period in which they bring economic benefits to
the enterprise; if the period in which the intangible assets bring economic benefits to the enterprise cannot
be fores een, they are considered to be intangible assets with indefinite useful lives and are not amortized.
Category Estimated useful life Basis
Land use right 20-50years Legal right of use
The service life is determined by reference to the period that can
Software 3-5years bring economic benefits to the Company
Useful Lives Indefinite-Lived Intangible Assets
For intangible assets with an indefinite useful life, no amortization is recognized. These assets are not
amortized because their useful lives cannot be reliably estimated.
At the end of each annual period, the useful life of indefinite-lived intangible assets should be reviewed. If
evidence indicates that the useful life of an intangible asset is actually finite, its useful life should be
estimated, and the asset should be amortized systematically and rationally over its estimated useful life.
The Company classifies all costs directly related to the conduct of research and development activities as
research and development expenses, including research and development employee compensation,
depreciation and amortisation expenses, testing expenses, maintenance expenses, patent fees and other
expenses.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Expenditures on in-house research and development projects are categorized into research stage
expenditures and development stage expenditures.
Research stage: the stage of original and planned investigation and research activities for the purpose of
acquiring and understanding new scientific or technological knowledge.
Development phase: the stage of applying research results or other knowledge to a plan or design to
produce new or substantially improved materials, devices, products and other activities before commercial
production or use.
Expenditures in the research stage are recognized in profit or loss when they are incurred. Expenditures in
the development phase are recognized as intangible assets if the following conditions are met. Expenditures
in the development phase that do not meet the following conditions are recognized in the current period's
profit or loss:
① It is technically feasible to complete the intangible asset so that it can be used or sold;
② There is an intention to complete the intangible asset for use or sale;
③The manner in which the intangible asset will generate economic benefits, including the ability to
demonstrate the existence of a market for the products produced by applying the intangible asset or the
existence of a market for the intangible asset itself, and the usefulness of the intangible asset if it will be
used internally;
④The availability of sufficient technical, financial and other resources to support the completion of the
development of the intangible asset and the ability to use or sell the intangible asset;
⑤Expenditures attributable to the development phase of the intangible asset can be measured reliably.
If it is not possible to distinguish between research-phase expenditures and development-phase
expenditures, all research and development expenditures incurred are recognized in the current period's
profit or loss.
Long-term equity investments, investment properties measured using the cost model, fixed assets,
construction in progress, right-of-use assets, intangible assets with finite useful lifes,oil and gas assets and
other long-term assets are tested for impairment if there is an indication of impairment at the balance sheet
date. If the result of the impairment test
indicates that the recoverable amount of an asset is less than its carrying amount, a provision for
impairment is made for the difference and an impairment loss is recorded.
The recoverable amount is the higher of the asset's fair value less costs of disposal and the present value of
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
estimated future cash flows of the asset. The provision for asset impairment is calculated and recognized on
an individual asset basis. If it is difficult to estimate the recoverable amount of an individual asset, the
recoverable amount of the asset group is determined using the asset group to which the asset belongs. An
asset group is the smallest combination of assets that can generate cash inflows independently.
For goodwill resulting from business combinations, intangible assets with indefinite useful lives, and
intangible assets that have not yet reached a serviceable status, impairment tests are performed once a year
at the end of each year, regardless of whether there is an indication of impairment.
The Company conducts goodwill impairment tests and apportions the carrying value of
goodwill formed as a result of a business combination to the relevant asset group from the date of purchase
in accordance with a reasonable method; if it is difficult to apportion to
the relevant asset group, it is apportioned to the relevant asset group combination. A relevant asset group or
a combination of asset groups is an asset group or a combination of asset groups that can benefit from the
synergistic effect of a business combination. When impairment test of the relevant asset group or
combination of asset groups that contain goodwill, if there is an indication of impairment of the asset group
or combination of asset groups related to goodwill, the asset group or combination of asset groups that do
not contain goodwill is first tested for impairment, the recoverable amount is calculated
and compared with the relevant carrying amount, and a corresponding impairment loss is
recognized. If the recoverable amount is less than the carrying amount, the impairment loss is first reduced
by the carrying amount of goodwill apportioned to the asset group or group of assets, and then reduced by
the carrying amount of each asset group or group of assets other than goodwill in proportion to its
proportionate share of the carrying amount of the other assets. The carrying value of each asset is then
reduced by the carrying value of each asset other than goodwill.
Once the above impairment loss is recognized, it will not be reversed in subsequent accounting periods.
Long-term deferred expenses are various expenses already incurred, which shall be amortized over current
and subsequent periods with the amortization period exceeding one year.
Long-term deferred expenses are amortized on a straight-line basis during the benefit period.
An entity’s obligation to transfer goods or services to a customer for which the entity has received
consideration (or the amount is due) from the customer. Contract asset and contract liability originate from
same contact shall be listed at net amount.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
The Company recognizes actual short-term compensation incurred by employees as a liability in the
accounting period in which the employees provide services to the Company, and recognizes it in the current
profit or loss or the cost of related assets.
The social insurance premiums and housing fund paid by the Company for its employees, as well as the
labor union funds and employee education funds withdrawn in accordance with regulations, are used to
determine the corresponding amount of employee compensation in accordance with the prescribed accrual
basis and accrual ratio during the accounting period in which the employees provide services to the
Company.
Employee benefit expenses incurred by the Company are charged to current profit or loss or the cost of
related assets based on the actual amount incurred when incurred, of which non-monetary benefits are
measured at fair value.
The Company contributes to basic pension and unemployment insurance for employees in accordance with
the relevant local government regulations. During the accounting period in which the employees provide
services to the Company, the amount payable is calculated based on the contribution base and ratio set by
the local regulations, recognized as a liability, and charged to current profit or loss or cost of related assets.
In addition, the Company participates in an enterprise annuity plan/supplemental pension fund approved by
the relevant state authorities. The Company contributes a certain percentage of the employees' total salaries
to the annuity plans/local social insurance agencies, and the corresponding expenses are recognized in the
current profit or loss or cost of related assets.
The Company attributes the benefit obligations arising from the defined benefit plans to the period in which
the employees render services in accordance with the formula determined by the expected accumulated
benefit unit method, and recognizes them in current profit or loss or cost of related assets.
The deficit or surplus resulting from the present value of the defined benefit plan obligation less the fair
value of the defined benefit plan assets is recognized as a net defined benefit plan liability or net asset. If a
defined benefit plan has a surplus, the Company measures the net defined benefit plan asset at the lower of
the surplus or asset limit of the defined benefit plan.
All defined benefit plan obligations, including those expected to be paid within twelve months after the end
of the annual reporting period in which employees render services, are discounted based on market yields
on treasury bonds or high-quality corporate bonds in active markets that match the maturity and currency of
the defined benefit plan obligations as of the balance sheet date.
The service cost incurred by the defined benefit plan and the net interest on the net
liabilities or net assets of the defined benefit plan are recognized in profit or loss or the cost of the related
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
assets; changes resulting from theremeasurement of the net liabilities or net assets of the defined benefit
plan are recognized in other comprehensive income and are not reversed to profit or loss in subsequent
accounting periods, and the entire portion previously recognized in other comprehensive income is carried
forward to unrecognized earnings to the extent of equity upon termination of the original defined benefit
plan. The portion of other comprehensive income withinequity is transferred to unappropriated earnings
upon termination of the defined benefit plan.
Upon settlement of a defined benefit plan, again or loss on settlement is recognized as the difference
between the present value of the defined benefit plan obligation and the settlement price determined at the
settlement date.
If the Company provides termination benefits to employees, it recognizes employee compensation
liabilities arising from termination benefits and recognizes them in profit or loss at the earlier of: when the
Company cannot unilaterally withdraw termination benefits provided as a result of a termination plan or a
proposed reduction in force; and when the Company recognizes costs or expenses related to a restructuring
involving the payment of termination benefits.
The Company recognizes an obligation related to a contingent event as an accrued liabilities when the
following conditions are simultaneously mets:
①The obligation is a present obligation assumed by the Company;
② It is probable that the performance of the obligation will result in an outflow of economic benefits to the
Company;
③ The amount of the obligation can be measured reliably.
A provision is initially measured at the best estimate of the expenditure required to settle the related present
obligation.
In determining the best estimate, the risks associated with the contingency, uncertainty and the time value
of money are considered. Where the effect of the time value of money is material, the best estimate is
determined by discounting the related future cash outflows.
Where a continuous range of expenditures required exists and it is equally probable that various outcomes
will occur within that range, the best estimate is determined at the mid- point of the range; in other cases,
the best estimate is treated separately as follows:
- Where the contingency relates to a single item, the best estimate is determined in accordance with the
most probable occurrence amount.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
- If the contingency involves multiple items, it is determined on the basis of various possible outcomes and
related probabilities.
If all or part of the expenditure required to settle the estimated liability is expected to be reimbursed by
athird party, the amount of reimbursement is recognized separately as an asset when it is substantially
certain that it will be received, and the amount of reimbursement recognized does not exceed the carrying
amount of the estimated liability.
The Company reviews the carrying amount of the estimated liability at the balance sheet date, and if there
is conclusive evidence that the carrying amount does not reflect the current best estimate, the carrying
amount is adjusted in accordance with the current best estimate.
The Company recognizes revenue when it has fulfilled its performance obligations under a contract, i.e.,
when the customer obtains control of the relevant goods or services. The acquisition of control of the
relevant goods or services is defined as the ability to dominate the use of the goods or services and derive
substantially all of the economic benefits therefrom.
If a contract contains two or more performance obligations, the Company apportions the transaction price
to each individual performance obligation on the contract commencement date in proportion to the relative
share of the individual selling price of the goods or services promised by each individual performance
obligation. The Company measures revenue based on the transaction price apportioned to each individual
performance obligation.
The transaction price is the amount of consideration to which the Company expects to be entitled as a result
of the transfer of goods or services to the customer, excluding amounts collected on behalf of third parties
and amounts expected to be refunded to the customer. The Company determines the transaction price in
accordance with the terms of the contract, taking into account its past customary practices, and considers
the impact of variable consideration, the existence of significant financing components in the contract, non-
cash consideration, and consideration payable to the customer in determining the transaction price. The
Company determines the transaction price that includes variable consideration by an amount that does not
exceed the amount for which it is highly probable that there will be no material reversal of the cumulative
recognized revenue at the time the relevant uncertainty is removed. If there is a significant financing
component in the contract, the Company determines the transaction price based on the amount payable in
cash assuming that the customer will pay for the goods or services as soon as control is obtained, and
amortizes the difference between this transaction price and the contract consideration using the effective
interest rate method over the term of the contract.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Performance obligations are fulfilled within a certain period of time if one of the following conditions is
met, otherwise, performance obligations are fulfilled at a certain point in time:
- The customer obtains and consumes the economic benefits resulting from the Company's performance at
the sametime as the Company's performance.
- The customer is able to control the goods under construction in the course of the Company's performance.
- The goods produced in the course of the Company's performance have irreplaceable use and the
Company is entitled to receive payment for the portion of the performance that has been completed to date
in the aggregate throughout the term of the contract.
For performance obligations performed within a certain period of time, the Company recognizes revenue in
accordance with the progress of performance during that period,
except when the progress of performance cannot be reasonably determined. The Company uses the output
method or input method to determine the progress of performance, taking into account the nature of the
goods or services. When the progress of performance cannot be reasonably determined, the Company
recognizes revenue in the amount of costs already incurred until the progress of performance can be
reasonably determined, if the costs already incurred are expected to be reimbursed.
For performance obligations performed at a point in time, the Company recognizes revenue at the point in
time when the customer obtains control of the related goods or services. In determining whether the
customer has acquired control of the goods or services, the Company considers the following indications:
- The Company has a present right to receive payment for the goods or services, i.e., the customer has a
present obligation to pay for the goods or services.
- The Company has transferred legal title to the goods to the customer, i.e., the customer has legal title to
the goods.
- The Company has transferred physical possession of the goods to the customer, i.e. the customer has
taken physical possession of the goods.
- The Company has transferred the principal risks and rewards of ownership of the goods to the customer,
i.e., the customer has acquired the principal risks and rewards of ownership of the goods.
- The customer has accepted the goods or services, etc.
The Company determines whether its status is that of a principally liable person or an agent at the time of
engaging in a transaction based on whether it has control over the goods or services prior to transferring
them to the customer. If the Company is able to control the goods or services prior to transferring them to
the customer, the Company is the principal and recognizes revenue based on the total consideration
received or receivable; otherwise, the Company is the agent and recognizes revenue based on the amount of
commissions or fees it expects to be entitled to receive.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
The sales contract between the Company and the customer includes the performance obligation of
transferring the goods, which belongs to the performance obligation at a certain point in time.
Recognition of domestic sales product revenue must meet the following conditions: the Company has
delivered the products to the customer according to the contract and the customer has accepted the products;
the payment has been recovered or the receipt of payment has been obtained, and the relevant economic
benefits are likely to flow in; the main risks and rewards of the ownership of the goods have been
transferred, and the legal ownership of the goods has been transferred.
Recognition of exporting revenue must meet the following conditions: The Company recognizes revenue
for exporting goods based on the sales contracts or sales orders, regardless of the sales model adopted. For
sales model of FOB, the revenue is recognised after the products are shipped and the customs declaration
and export formalities are handled; For sales model of FCA, the revenue is recognised when products are
delivered to the carrier designated by the buyer
Treatment of sales return: according to the general rules of international trade, the adoption of FOB and
CIF settlement indicates that the buyer has accepted the purchased goods at the place of shipment, and the
relevant risks have been undertaken by the buyer after the acceptance and shipment. Therefore, the
Company does not make provision for the above matters separately, but directly records them into the
profits and losses in the current period.
Processing of product claims: the estimated claim expense rate is calculated based on the actual claim
amount in the past two years (excluding special claims) as a percentage of the annual sales revenue, and
accrued at period end based on the current sales revenue and the estimated claim expense rate to recognize
the claim expenses for products sold in the current period.
The performance obligation of the service contract between the Company and the customer. Since the
customer obtains and consumes the economic benefits brought by the Company’s performance at the
same time as the Company fulfills the contract, the Company recognises it as a performance obligation
performed within a certain period of time, and amortized equally during the service provision period.
For the performance obligation of the construction contract between the Company and the customer, since
the customer can control the goods under construction in the process of the Company's performance, the
Company takes it as the performance obligation to perform in a certain period of time, and recognizes the
income according to the performance progress, except that the performance progress cannot be reasonably
determined. The Company determines the progress of the performance of providing services in accordance
with the output method. The progress of the performance shall be determined according to the proportion of
the completed contract workload to the expected total contract workload. On the balance sheet date, the
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Company re-estimates the progress of completed performance or completed services to reflect the changes
in performance.
Government grants, which are monetary or non-monetary assets acquired by the Company from the
government without compensation, are classified as asset-related government grants and revenue-related
government grants.
Government grants related to assets are obtained by the Company for the acquisition and construction or
otherwise forming long-term assets. Revenue-related government grants refer to government grants other
than asset-related government grants.
The specific criteria for the Company to classify government grants as asset-related are: government grants
obtained by the Company and used for the acquisition and construction or otherwise forming long-term
assets.
The Company's specific criteria for classifying government grants as revenue-related are: government
grants other than those related to assets.
Government grants are recognized when the Company is able to meet the conditions attached to them and
when they can be received.
Government grants related to assets are reduced to the carrying amount of the relevant assets or recognized
as deferred income. If recognized as deferred income, it is recognized in profit or loss in accordance with a
reasonable and systematic method in installments over the useful life of the relevant assets (if it is related to
the Company's daily activities, it is recognized in other income; if it is not related to the Company's daily
activities, it is recognized in non-operating income);
Government grants related to revenue, which are used to compensate the Company for relevant costs and
expenses or losses in subsequent periods, are recognized as deferred revenue and charged to current profit
or loss (to other income if they are related to the Company's ordinary activities; to non-operating income if
they are not related to the Company's ordinary activities) or offset against relevant costs and expenses or
losses in the period in which the relevant costs and expenses or losses are recognized; to compensate the
Company for If it is used to compensate the Company for the related costs or losses incurred, it is directly
recognized in profit or loss (other income if it is related to the Company's daily activities; non-operating
income if it is not related to the Company's daily activities) or reduced by the related costs or losses.
The company receives preferential loan subsidies under two distinct scenarios, each requiring specific
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
accounting treatment:
①If the fiscal authority provides the subsidy funds to the lending bank, which then offers loans to the
company at a preferential interest rate, we record the loan at the actual amount received. The borrowing
costs are calculated based on the principal amount of the loan and the preferential interest rate.
②If the fiscal authority directly pays the subsidy funds to the company, we offset the corresponding
subsidy against the related borrowing costs.
Income taxes consist of current income taxes and deferred income taxes. The Company
recognizes current income tax and deferred income tax in profit or loss, except for income tax arising from
business combinations and transactions or events directly recognized in owners'equity (including other
comprehensive income).
Deferred income tax assets and deferred income tax liabilities are recognized based on the
difference between the tax basis of assets and liabilities and their carrying amounts (temporary differences).
Deferred tax assets are recognized for deductible temporary differences to the extent that it is probable that
taxable income will be available in future periods against which the deductible temporary differences can
be utilized. For deductible losses and tax credits that can be carried forward to future years, deferred tax
assets are recognized to the extent that it is probable that future taxable income will be available against
which the deductible losses and tax credits can be utilized.
Deferred income tax liabilities are recognized for taxable temporary differences, except under special
circumstances.
The special circumstances under which deferred tax assets or deferred tax liabilities are not recognized
include
- Initial recognition of goodwill;
- Transactions or events that are neither business combinations nor, at the time of their occurrence, affect
accounting profit and taxable income (or deductible losses), and for which the initial recognition of assets
and liabilities does not result in taxable temporary differences and deductible temporary differences of an
equivalent amount.
Deferred income tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries, associates and joint ventures, unless the Company is able to control the timing
of the reversal of the temporary difference and it is probable that the temporary difference will not reverse
in the foreseeable future. Deferred income tax assets are recognized for deductible temporary differences
associated with investments in
subsidiaries, associates and joint ventures when it is probable that the temporary differences will reverse in
the foreseeable future and it is probable that future taxable income will be available against which the
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
deductible temporary differences can be utilized.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are measured at the
tax rates applicable to the periods when the related assets are expected to be recovered or the related
liabilities settled, in accordance with the tax laws.
At the balance sheet date, the Company reviews the carrying amount of deferred tax assets. The carrying
amount of deferred tax assets is written down if it is more likely than not that sufficient taxable income
will not be available in future periods to offset the benefit of the deferred tax assets. To the extent that it is
probable that sufficient taxable income will be available, the written down amount is reversed.
When there is a legal right to settle on a net basis and the intention is to settle on a net basis or to acquire
assets and settle liabilities simultaneously, current income tax assets and current income tax liabilities are
stated at the net amount after offsetting.
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are presented on a
net basis after offsetting when both of the following conditions are met:
- The taxable entity has the legal right to settle current income tax assets and current income tax liabilities
on a net basis;
- Deferred income tax assets and deferred income tax liabilities relate to income taxes
levied by the same tax authority on the same taxable entity or to different taxable entities, but in each future
period in which it is significant that the deferred income tax assets and
liabilities reverse, the taxable entities involved intend to settle the current income tax assets and liabilities
on a net basis or to acquire the assets and The reversal of deferred income tax assets and liabilities is a
significant transaction.
A lease is a contract in which the lessor cedes the right to use an asset to the lessee for a
certain period of time for consideration. At the inception date of the contract, the Company assesses
whether the contract is a lease or contains a lease. A contract is a lease or contains a lease if one party to the
contract cedes the right to control the use of one or more identified assets for a certain period of time in
exchange for consideration.
If a contract contains several separate leases, the Company splits the contract and accounts for each
separate lease separately. If a contract contains both lease and non-lease components, the lessee and the
lessor split the lease and non-lease components.
At the commencement date of the lease term, the Company recognizes right-of-use assets for leases other
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
than short-term leases and leases of low-value assets. Right-of-use assets are initially measured at cost. This
cost includes:
- the initial measurement amount of the lease liability;
- the amount of lease payments made on or before the commencement date of the lease term, net of
amounts related to lease incentives taken if lease incentives exist;
- the initial direct costs incurred by the Company;
- costs that the Company expects to incur to disassemble and remove the leased asset,restore the site where
the leased asset is located, or restore the leased asset to the condition agreed upon under the terms of the
lease, excluding costs that are part of the costs incurred to produce the inventory.
The Company subsequently depreciates right-of-use assets using the straight-line method. If it is reasonably
certain that ownership of the leased asset will be obtained at the end of the lease term, the Company
depreciates the leased asset over its remaining useful life;otherwise, the leased asset is depreciated over the
shorter of the lease term or the remaining useful life of the leased asset.
The Company determines whether a right-of-use asset is impaired and accounts for the identified
impairment loss in accordance with the principles described in Note III.9, "Impairment of Long-lived
Assets".
The Company recognizes a lease liability for leases other than short-term leases and leases of low-value
assets at the commencement date of the lease term. Lease liabilities are initially measured at the present
value of the outstanding lease payments. Lease payments consist of
- fixed payments (including material fixed payments), net of amounts related to lease incentives, if lease
incentives exist;
- variable lease payments that are dependent on an index or rate;
- payments expected to be payable based on the residual value of the guarantee provided by the company;
- the exercise price of the purchase option, provided that the company reasonably determines that it will
exercise the option;
- the amount to be paid upon exercise of the option to terminate the lease, provided that the lease term
reflects that the Company will exercise the option to terminate the lease.
The Company uses the interest rate embedded in the lease as the discount rate, but if the interest rate
embedded in the lease cannot be reasonably determined, the Company'sincremental borrowing rate is used
as the discount rate.
The Company calculates the interest expense on the lease liability for each period of the lease term based
on a fixed periodic interest rate, which is included in the current profit or loss or the cost of the related
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
asset.Variable lease payments that are not included in the measurement of the lease liability are charged to
current profit or loss or the cost of the related assets when they are actually incurred.
After the commencement date of the lease term, the Company remeasures the lease
liability and adjusts the corresponding right-of-use asset if the carrying value of the right- of-use asset has
been reduced to zero, but the lease liability still needs to be further reduced, the difference is recognized in
profit or loss for the current period:
- When there is a change in the valuation of the purchase option, lease renewal option or termination option,
or when the actual exercise of the aforementioned options is not consistent with the original valuation, the
Company remeasures the lease liability at the present value calculated by the changed lease payments and
the revised discount rate;
- When there is a change in the substantive fixed payment amount, a change in the amount expected to be
payable for the guaranteed residual value, or a change in the index or rate used to determine the lease
payment amount, the Company remeasures the lease liability at the present value calculated from the
changed lease payment amount and the original discount rate. However, if the change in the lease payment
amount results from a change in the floating interest rate, the present value is calculated using the revised
discount rate.
The Company has elected not to recognize right-of-use assets and lease liabilities for short- term leases and
leases of low-value assets, and to recognize the related lease payments in current profit or loss or the cost of
the related assets on a straight-line basis over each period of the lease term. Short-term leases, which
areleases with a lease term of not more than 12 months at the commencement date of the lease term and do
not include a purchase option. Low-value asset leases, which areleases with a lower value when the single
leased asset is a brand-new asset. If the company subleases or expects to sublease the leased assets, the
original lease is not a low-value asset lease.
If a lease is changed and the following conditions are met at the sametime, the company will account for
the lease change as a separate lease:
- the lease modification expands the scope of the lease by adding the right to use one or more leased assets;
- The increased consideration is equivalent to the separate price of the expanded portion of the lease
adjusted for the circumstances of that contract.
If a lease modification is not accounted for as a separate lease, at the effective date of the lease modification,
the company reapportioned the consideration of the modified contract, redetermined the lease term,
andremeasured the lease liability based on the present value of the modified lease payments and the revised
discount rate.If a lease change results in a reduction in the scope of the lease or a shortening of the lease
term, the Company reduces the carrying value of the right-of-use asset accordingly and recognizes the gain
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
or loss related to partial termination or complete termination of the lease in profit or loss for the current
period. If other lease changes result in the remeasurement of the lease liability, the Company adjusts the
carrying value of the right- of-use asset accordingly.
At the commencement date of the lease, the Company classifies leases into finance leases and operating
leases. A finance lease is a lease that transfers substantially all the risks and rewards associated with
ownership of the leased asset, regardless of whether ownership is ultimately transferred. Operating leases
refer to leases other than finance leases. When the company acts as a sublease lessor, it classifies the
sublease based on the right-to-use assets arising from the original lease.
Lease receipts under operating leases are recognized as rental income on a straight-line basis over each
period of the lease term. The Company capitalizes the initial direct costs incurred in connection with
operating leases and apportions them to current profit or loss over the lease term on the same basis as rental
income is recognized. Variable lease payments that are not included in the lease receipts are recognized in
current profit or loss when they are actually incurred. If a change in an operating lease occurs, the
Company accounts for it as a new lease from the effective date of the change, and the amount of lease
payments received in advance or receivable in connection with the lease before the change is regarded as
the amount of payments received under the new lease.
On the commencement date of the lease, the Company recognizes finance lease receivables for finance
leases and derecognizes finance lease assets. When the Company makes initial measurement of the finance
lease receivable, the net lease investment is used as the recorded value of the finance lease receivable. The
net lease investment is the sum of the unguaranteed residual value and the present value of the lease
receipts not yet received at the commencement date of the lease term discounted at the interest rate
embedded in the lease.
The Company calculates and recognizes interest income for each period of the lease term based on a fixed
periodic interest rate. Derecognition and impairment of finance lease receivables are accounted for in
accordance with Note III.9 "Financial Instruments" of this note.Variable lease payments that are not
included in the net lease investment measurement are recognized in profit or loss when they are actually
incurred.
If a change in a finance lease occurs and the following conditions are met, the Company accounts for the
change as a separate lease:
- the change expands the scope of the lease by adding the right to use one or more leased assets;
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
- the increased consideration is equivalent to the separate price of the expanded portion of the lease
adjusted for the circumstances of that contract.
If a change in a finance lease is not accounted for as a separate lease, the Company treats the changed lease
separately in the following circumstances:
- If the change becomes effective on the lease commencement date and the lease would be classified as an
operating lease, the Company accounts for it as a new lease from the effective date of the lease change and
uses the net investment in the lease prior to the effective date of the lease change as the carrying amount of
the leased asset;
- If the change becomes effective on the lease commencement date and the lease is
classified as a finance lease, the Company accounts for the lease in accordance with the policy on
modification or renegotiation of contracts as described in Note III.9 Financial Instruments.
Items Materiality Criteria
Significant debt investments Amount≥CNY 50,000,000.00
Significant non-wholly owned The Company identifies subsidiaries whose total revenue exceeds 50% of the
subsidiaries total group profits as significant non-wholly owned subsidiaries
There were no significant changes in the Company’s accounting policies during the reporting period.
There were no significant changes in the Company’s accounting estimates during the reporting period.
Tax Tax base Tax rate
The output tax is calculated on the basis of the income from the sale of goods
and taxable services calculated in accordance with the provisions of the tax
Value-added tax (VAT) 6%、9%、11%、
law, and after deducting the input tax allowed to be deducted in the current
period, the difference is the value-added tax payable
City construction tax Payable turnover tax, tax exemption 7%、5%
Educational surcharge Payable turnover tax, tax exemption 3%
Local education
Payable turnover tax, tax exemption 2%
surcharge
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Tax Tax base Tax rate
Enterprise income tax Taxable profits
EIT rate for different taxpayer
Tax principles EIT rate
TsannKuen (Zhangzhou) Enterprise Co., Ltd. (hereafter, TKL) 15%
TsannKuen China (Shanghai) Enterprise Co., Ltd. (hereafter, TKS) 25%
Xiamen TsannKuen Property Service Co., Ltd. (hereafter, TKW) 20%
Pt.Star Comgistic Indonesia 22%
Province's Accreditation Organisations for 2023 Accreditation Reporting”, TKL was identified as Fujian
Province High-tech Enterprise, and the certification was valid for 3 years (Certification No.
GR202335003031), in accordance with the Enterprise Income Tax Law of the People's Republic of China,
the Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China and
other relevant provisions, the income tax rate of Tsann Kuen (Zhangzhou) Enterprise Co., Ltd. enjoys a
Development of Small and Micro Enterprises and Individual Businesses (Joint Announcement of the
Ministry of Finance and State Taxation Administration No. 12 [2023]), the preferential corporate income
tax policy—where small low-profit enterprises are taxed at 20% on 25% of their taxable income—has been
extended until December 31, 2027. Our subsidiary, Xiamen Canqun Property Management Co., Ltd.,
qualifies for and has applied this tax benefit.
Items 30 June 2025 1 January 2025
Cash on hand 1,001,771.94 887,987.84
Cash in bank 388,207,960.50 440,872,233.11
Other monetary funds 1,723,334.17 2,617,722.57
Total 390,933,066.61 444,377,943.52
Including：The total amount deposited overseas 27,915,737.15 37,357,738.79
Of the other monetary funds, CNY 1,700,000.56 is the margin deposited by TKL for opening a letter of
credit, and CNY 23,333.61 is the balance of the company's Alipay account. Except for the margin deposited
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
for opening a letter of credit, there are no other funds in monetary funds at the end of the period with
restricted use rights or potential recovery risks due to mortgage, pledge or freeze.
Items 30 June 2025 1 January 2025
Financial assets measured at fair value through Profit or Loss 0.00 50,942,083.33
Including: Derivative financial assets 0.00 0.00
Structured Deposit Investment 0.00 50,942,083.33
Total 0.00 50,942,083.33
Aging 30 June 2025 1 January 2025
Within one year 135,404,384.60 205,640,866.11
Including: Within 90 days 111,211,765.19 190,204,917.49
Over 3 years 125,418.08 125,418.08
including: 3-4 years 0.00 9,677.56
Over 5 years 5,000.00 5,000.00
Subtotal 135,549,973.68 205,786,324.43
Less: provision for bad debt 3,844,617.77 1,830,424.63
Total 131,705,355.91 203,955,899.80
Category 30 June 2025
Book balance Provision for bad debt
Proportion Provision Carrying amount
Amount Amount
(%) ratio (%)
Provision for bad debt recognised
individually
Provision for bad debt recognized
collectively
Including: Portfolio by age 133,880,740.68 98.77 3,844,617.77 2.87 130,036,122.91
Portfolio by related parties 1,669,233.00 1.23 0.00 0.00 1,669,233.00
Total 135,549,973.68 100.00 3,844,617.77 2.84 131,705,355.91
(Continued)
Category 1 January 2025
Book balance Provision for bad debt
Proportion Provision ratio Carrying amount
Amount Amount
(%) (%)
Provision for bad debt recognised
individually
Provision for bad debt recognized 205,786,324.43 100.00 1,830,424.63 0.89 203,955,899.80
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Category 1 January 2025
Book balance Provision for bad debt
Proportion Provision ratio Carrying amount
Amount Amount
(%) (%)
collectively
Including: Portfolio by age 204,835,409.81 99.54 1,830,424.63 0.89 203,004,985.18
Portfolio by related parties 950,914.62 0.46 0.00 950,914.62
Total 205,786,324.43 100.00 1,830,424.63 0.89 203,955,899.80
Specific instructions for provision for bad debts:
Accounts receivables with bad debt provision are recognised by portfolio by age
Aging
Book balance Provision for bad debt Provision ratio (%)
Not overdue 114,223,083.39 573,921.15 0.50
Overdue 1 – 30 days 11,803,950.37 531,177.78 4.50
Overdue 31 – 60 days 5,545,847.05 1,109,169.41 20.00
Overdue 61 – 90 days 1,231,837.09 554,326.65 45.00
Overdue more than 90 days 1,076,022.78 1,076,022.78 100.00
Total 133,880,740.68 3,844,617.77
(Continued)
Aging
Book balance Provision for bad debt Provision ratio (%)
Not overdue 191,437,682.38 957,008.77 0.50
Overdue 1 – 30 days 11,960,968.06 538,243.56 4.50
Overdue 31 – 60 days 1,376,983.84 275,396.77 20.00
Overdue 61 – 90 days
Overdue more than 90 days 59,775.53 59,775.53 100.00
Total 204,835,409.81 1,830,424.63
Accounts receivables with bad debt provision are recognised by portfolio by related parties
Accounts Receivables
Book balance Provision for bad debt Provision ratio (%) Reason for provision
Portfolio by related parties 364,979.43 0.00 0.00
Total 364,979.43 0.00 0.00
(Continued)
Accounts Receivables
Book balance Provision for bad debt Provision ratio (%) Reason for provision
Portfolio by related parties 950,914.62 0.00 0.00
Total 950,914.62 0.00 0.00
The recognition criteria and explanation for provisions for bad debts by portfolio are detailed in Note III.9.
Category 30 June 2025
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Provision for bad debt by group 1,830,424.63 2,045,153.37 29,927.72 0.00 1,032.51 3,844,617.77
Total 1,830,424.63 2,045,153.37 29,927.72 0.00 1,032.51 3,844,617.77
N/A
Accounts
Entity Contract Assets Total Proportion (%) Bad debt provision
receivable
No. 1 26,934,129.27 26,934,129.27 19.87 134,670.65
No. 2 24,273,161.11 24,273,161.11 17.91 196,527.28
No. 3 20,900,688.78 20,900,688.78 15.42 107,757.39
No. 4 14,553,818.36 14,553,818.36 10.74 87,489.70
No. 5 10,138,603.13 10,138,603.13 7.48 883,842.55
Total 96,800,400.65 0.00 96,800,400.65 71.42 1,410,287.57
Closing Balance Opening Balance
Items
Amoun Percentage (%) Amoun Percentage (%)
Within1 year 8,261,158.90 100.00 4,318,758.91 100.00
Total 8,261,158.90 100.00 4,318,758.91 100.00
The total amount of the top five vendors with the largest prepaid amounts by the Company at the end of the
reporting period is CNY 4,188,466.16, accounting for 50.70% of the total amount of the prepayment at the
end of the reporting period.
Items 30 June 2025 1 January 2025
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other receivables 16,834,594.69 27,902,480.51
Total 16,834,594.69 27,902,480.51
Aging 30 June 2025 1 January 2025
Within one year 15,843,474.07 26,709,851.91
Including: Within 90 days 15,079,300.67 26,401,440.21
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Aging 30 June 2025 1 January 2025
Over 3 years 1,058,750.01 1,048,404.94
ncluding: 3-4 years 14,743.31 0.00
Over 5 years 1,044,006.70 1,048,404.94
Subtotal 17,444,927.34 28,418,971.13
Less: provision for bad debt 610,332.65 516,490.62
Total 16,834,594.69 27,902,480.51
Nature 30 June 2025 1 January 2025
Export tax refund 6,500,000.00 18,000,000.00
Other open credits 9,324,648.29 9,213,566.19
Deposit 1,620,279.05 1,205,404.94
Subtotal 17,444,927.34 28,418,971.13
Less: Provision for bad debt 610,332.65 516,490.62
Total 16,834,594.69 27,902,480.51
Stage 1 Stage 2 Stage 3
Expected credit Expected credit loss for theExpected credit loss for
Provision for bad debt loss for the next whole duration (no credit the whole duration Total
occurred)
Closing balance as of 1/1/2025 190,067.98 0.00 326,422.64 516,490.62
Carrying amount of other
receivables in current period —— —— —— ——
on 1/1/2025
Transfer to stage 2 0.00 0.00 0.00 0.00
Transfer to stage 3 0.00 0.00 0.00 0.00
Transfer back to stage 2 0.00 0.00 0.00 0.00
Transfer back to stage 1 0.00 0.00 0.00 0.00
Recognition 94,295.77 0.00 0.00 94,295.77
Reversal 453.74 0.00 0.00 453.74
Used 0.00 0.00 0.00 0.00
Written off 0.00 0.00 0.00 0.00
Other movements 0.00 0.00 0.00 0.00
Closing balance as of
Changes during the reporting period
Category 1 January 2025 30 June 2025
Provision Recovery or reversal Write-off Other
Provision for bad debt
recognized individually
Provision for bad debt
recognized by portfolio
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Total 516,490.62 94,295.77 453.74 0.00 0.00 610,332.65
Proportion of the
Balance at 30 Provision for
Entity name Nature Aging balance to the total
June 2025 bad debt
other receivables (%)
Zhangzhou Taiwan investment
Export tax
zone State Administration of 6,500,000.00 1-90 days 37.26
refund
Taxation
State Grid Fujian Electric Power
Other open
Co., Ltd. Zhangzhou Longhai 2,409,792.51 1-90 days 13.81
credits
District Power Supply Company
Xiamen Gongxin Yongzhu Industry Other open Within 1
and Trade Co., Ltd. credits year
China Export Credit Insurance
Deposit 648,450.00 Over 1 year 3.72
Corporation Fujian Branch
KPPBC TMT A PABEAN BOGOR. Deposit 428,710.51 1-90 days 2.46
Total 10,911,864.77 62.55 83,159.23
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Raw materials 86,976,095.46 14,623,191.76 72,352,903.70 74,560,733.28 13,095,705.30 61,465,027.98
Work in
process
Self-
manufactured
semi-finished
goods
Finished goods 38,678,344.37 0.00 38,678,344.37 29,574,402.53 0.00 29,574,402.53
Low-value
consumables
Materials in
transit
Total 205,110,667.46 23,068,933.64 182,041,733.82 216,974,681.75 22,575,157.97 194,399,523.78
Increase in current year Decrease in current year
Impact of
Item 1 January 2025 Impact of
Recovered or changes in 30 June 2025
Accrual changes in
Written off exchange
exchange rates
rates
Raw materials 13,095,705.30 2,061,011.42 -20,252.17 513,272.79 0.00 14,623,191.76
Self-manufactured
semi-finished goods
Finished goods 6,285,683.77 1,448,260.40 -1,542.44 1,543,648.75 0.00 6,188,752.98
Total 22,575,157.97 2,803,751.89 -24,832.01 2,285,144.21 0.00 23,068,933.64
Note: The criteria for making provision for the decline in value of inventories on a portfolio basis are set
out in Note 3.10.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items 30 June 2025 1 January 2025
Debt investments due within one year 237,753,845.51 51,260,694.44
Less: Impairment provisions 0.00 0.00
Total 237,753,845.51 51,260,694.44
Items 30 June 2025 1 January 2025
Input tax to be deducted 5,260,042.99 9,897,443.29
Financial investment 413,858,099.71 544,439,535.72
Total 419,118,142.70 554,336,979.01
Item Provision Provision
Book balance for Carrying amount Book balance for Carrying amount
impairment impairment
Large certificate of
deposit
Accrued interest on
large certificate of 20,364,701.46 0.00 20,364,701.46 10,295,355.13 0.00 10,295,355.13
deposit
Subtotal 756,464,701.46 0.00 756,464,701.46 591,795,355.13 0.00 591,795,355.13
Less: Debt
investments due 237,753,845.51 0.00 237,753,845.51 51,260,694.44 0.00 51,260,694.44
within one year
Total 518,710,855.95 0.00 518,710,855.95 540,534,660.69 0.00 540,534,660.69
Item Overdue
Face value Coupon rate Effective rate Expiry date
principal
Bank Of Quanzhou Fixed deposit 74,600,000.00 2.50% 2.50% 2027/1/16
Bank Of Quanzhou Fixed deposit 30,000,000.00 2.50% 2.50% 2027/1/16
Xiamen Bank Fixed deposit 50,000,000.00 2.40% 2.40% 2027/1/17
Bank Of Quanzhou Fixed deposit 51,500,000.00 2.75% 2.75% 2026/9/12
Xiamen Bank Large Certificates of
Deposit
Xiamen Bank Fixed deposit 50,000,000.00 3.30% 3.30% 2026/12/26
Bank Of Quanzhou Fixed deposit 50,000,000.00 2.85% 2.85% 2026/7/4
Bank Of Quanzhou Fixed deposit 50,000,000.00 2.75% 2.75% 2026/9/9
Bank Of Quanzhou Fixed deposit 50,000,000.00 2.75% 2.75% 2026/9/11
Bank Of Quanzhou Fixed deposit 50,000,000.00 2.75% 2.75% 2026/9/12
Total 506,100,000.00
(Continued)
Item Overdue
Face value Coupon rate Effective rate Expiry date
principal
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Item Overdue
Face value Coupon rate Effective rate Expiry date
principal
Bank Of Quanzhou Fixed deposit 51,500,000.00 2.75% 2.75% 2026/9/12
Xiamen Bank Large Certificates of
Deposit
Xiamen Bank Fixed deposit 50,000,000.00 3.30% 3.30% 2026/12/26
Bank Of Quanzhou Fixed deposit 50,000,000.00 2.85% 2.85% 2026/7/4
Bank Of Quanzhou Fixed deposit 50,000,000.00 2.75% 2.75% 2026/9/9
Bank Of Quanzhou Fixed deposit 50,000,000.00 2.75% 2.75% 2026/9/11
Bank Of Quanzhou Fixed deposit 50,000,000.00 2.75% 2.75% 2026/9/12
Xiamen International Bank Fixed
deposit
Chiyu Banking Corporation Ltd.
Xiamen Branch Fixed deposit
Xiamen International Bank Fixed
deposit
Bank Of Quanzhou Fixed deposit 30,000,000.00 2.85% 2.85% 2026/6/25
Total 531,500,000.00
Changes in the current period
Opening Declaration Accrual Closing
balance of of issuing of balance of
Invested entity 2025 (Carrying Follow-on Reduce or losses of other other rights （Carrying
depreciatio cash impairm Other depreciatio
amount) investment investment recognized under comprehen and amount）
n reserves dividends ent n reserves
equity method sive income interests
or profits provision
Joint venture
Shanghai Upa
Smart Chain Home 0.00 9,800,000.00 -354,876.17 9,445,123.83
Appliances Co., Ltd.
Total 0.00 9,800,000.00 -354,876.17 9,445,123.83
Items 30 June 2025 1 January 2025
Non-trading equity instrument investment 40,000.00 40,000.00
Total 40,000.00 40,000.00
Building and Land use rights Construction in
Items Total
plants progress
Initial cost:
Balance on 1 January 2025 80,814,358.80 29,260,577.51 0.00 110,074,936.31
Increase during the reporting period 0.00 0.00 0.00 0.00
/construction in progress
Decrease during the reporting period 0.00 0.00 0.00 0.00
Balance on 30 June 2025 80,814,358.80 29,260,577.51 0.00 110,074,936.31
Accumulated depreciation and amortisation:
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Building and Land use rights Construction in
Items Total
plants progress
Balance on 1 January 2025 72,758,196.24 18,028,984.84 0.00 90,787,181.08
Increase during the reporting period 102,121.92 311,055.90 0.00 413,177.82
Decrease during the reporting period 0.00 0.00 0.00 0.00
Balance on 30 June 2025 72,860,318.16 18,340,040.74 0.00 91,200,358.90
Provision for impairment:
Balance on 1 January 2025 0.00 0.00 0.00 0.00
Increase during the reporting period 0.00 0.00 0.00 0.00
Decrease during the reporting period 0.00 0.00 0.00 0.00
Balance on 30 June 2025 0.00 0.00 0.00 0.00
Carrying amount:
Balance on 30 June 2025 7,954,040.64 10,920,536.77 0.00 18,874,577.41
Balance on 1 January 2025 8,056,162.56 11,231,592.67 0.00 19,287,755.23
Item Carrying amount Reason
Lvyuan three country villa 742,403.57
Total 742,403.57
Note: Lvyuan three country villa is the houses with limited property rights purchased by the TsannKuen
China (Shanghai) Enterprise Co., Ltd. which is the subsidiary of the Company from Shanghai Lvsheng
Real Estate Development Co., Ltd. in 1999, and there has no land expropriation. Shanghai Lvsheng Real
Estate Development Co., Ltd. and Shanghai Jiading district, Huangdu town Lvyuan community residents'
committees issued the certificate jointly to prove the right of this property belongs to TsannKuen China
(Shanghai) Enterprise Co., Ltd. in January 2006.
Items 30 June 2025 1 January 2025
Fixed assets 154,068,855.87 146,795,190.83
Disposal of fixed assets 0.00 0.00
Total 154,068,855.87 146,795,190.83
Ts a n n Ku e n (C h i n a ) En t e r p r i s e Co . , Lt d . Notes to the financial statements
Electronic devices, Improvement expense
Items Houses and buildings Machineries Vehicles Total
modules and others of fixed assets
Initial cost:
Balance on 1 January 2025 89,810,823.21 154,643,353.55 849,500,172.53 16,444,897.00 20,762,399.27 1,131,161,645.56
Increase during the reporting period 3,262,373.52 16,832,311.59 10,498,259.10 326,929.02 -40,297.56 30,879,575.67
(i) Acquisition 0.00 10,075,777.43 5,111,581.21 337,308.62 0.00 15,524,667.26
(ii) Transfer from construction in progress 3,458,870.76 6,912,389.41 5,548,809.75 0.00 0.00 15,920,069.92
(iii) Transfer from investment properties 0.00 0.00 0.00 0.00 0.00 0.00
(iv) Impact of changes in exchange rates -196,497.24 -155,855.25 -162,131.86 -10,379.60 -40,297.56 -565,161.51
Decrease during the reporting period 0.00 4,639,778.99 7,130,467.55 0.00 0.00 11,770,246.54
(i) Disposal 0.00 4,639,778.99 7,130,467.55 0.00 0.00 11,770,246.54
(ii) Transfer to investment properties 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Impact of changes in exchange rates 0.00 0.00 0.00 0.00 0.00 0.00
Balance on 30 June 2025 93,073,196.73 166,835,886.15 852,867,964.08 16,771,826.02 20,722,101.71 1,150,270,974.69
Accumulated depreciation:
Balance on 1 January 2025 56,173,349.46 89,331,263.33 777,633,498.27 15,424,464.62 18,962,663.07 957,525,238.75
Increase during the reporting period 1,486,682.39 4,757,129.30 9,417,380.03 179,254.92 116,934.65 15,957,381.29
(i) Provision 1,577,230.11 4,875,635.45 9,550,596.98 188,186.27 149,853.32 16,341,502.13
(ii) Transfer from investment properties 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Impact of changes in exchange rates -90,547.72 -118,506.15 -133,216.95 -8,931.35 -32,918.67 -384,120.84
Decrease during the reporting period 0.00 850,389.76 3,168,665.37 0.00 0.00 4,019,055.13
(i) Disposal 0.00 850,389.76 3,168,665.37 0.00 0.00 4,019,055.13
(ii) Transfer from investment properties 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Impact of changes in exchange rates 0.00 0.00 0.00 0.00 0.00 0.00
Balance on 30 June 2025 57,660,031.85 93,238,002.87 783,882,212.93 15,603,719.54 19,079,597.72 969,463,564.91
Ts a n n Ku e n (C h i n a ) En t e r p r i s e Co . , Lt d . Notes to the financial statements
Electronic devices, Improvement expense
Items Houses and buildings Machineries Vehicles Total
modules and others of fixed assets
Provision for impairment:
Balance on 1 January 2025 0.00 6,971,735.34 19,849,759.00 8,499.92 11,221.72 26,841,215.98
Increase during the reporting period 0.00 -17,773.47 5,268.15 -24.02 -46.46 -12,575.80
(i) Provision 0.00 0.00 14,916.92 0.00 0.00 14,916.92
(ii) Impact of changes in exchange rates 0.00 -17,773.47 -9,648.77 -24.02 -46.46 -27,492.72
Decrease during the reporting period 0.00 76,591.27 13,495.00 0.00 0.00 90,086.27
(i) Disposal 0.00 76,591.27 13,495.00 0.00 0.00 90,086.27
Balance on 30 June 2025 0.00 6,877,370.60 19,841,532.15 8,475.90 11,175.26 26,738,553.91
Carrying amount:
Balance on 30 June 2025 35,413,164.88 66,720,512.68 49,144,219.00 1,159,630.58 1,631,328.73 154,068,855.87
Balance on 1 January 2025 33,637,473.75 58,340,354.88 52,016,915.26 1,011,932.46 1,788,514.48 146,795,190.83
Item Initial cost Accumulated depreciation Provision for impairment Carrying amount Item
Machineries 5,587,205.03 3,761,475.77 1,431,780.84 393,948.42
Electronic device, modules, and others 827,810.52 763,987.56 48,607.12 15,215.84
Improvement expense of fixed assets 2,571,879.58 2,571,879.58 0.00 0.00
Total 8,986,895.13 7,097,342.91 1,480,387.96 409,164.26
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items Carrying amount Reason
Jingying garden 61,448.62 Legal procedures in process
Lvyuan three country villa 297,722.28
Items 30 June 2025 1 January 2025
Construction in progress 5,056,908.31 3,462,300.89
Total 5,056,908.31 3,462,300.89
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Sporadic project 3,347,837.54 0.00 3,347,837.54 2,107,628.32 0.00 2,107,628.32
Equipment pending
acceptance
Total 5,056,908.31 0.00 5,056,908.31 3,462,300.89 0.00 3,462,300.89
Items Houses and buildings Total
Initial cost:
Balance on 1 January 2025 408,735,436.56 408,735,436.56
Increase during the reporting period 1,378,875.73 1,378,875.73
(i) Leases 1,378,875.73 1,378,875.73
(ii) Impact of changes in exchange rates 0.00 0.00
Decrease during the reporting period 0.00 0.00
(i) Disposal 0.00 0.00
(ii) Impact of changes in exchange rates 0.00 0.00
Balance on 30 June 2025 410,114,312.29 410,114,312.29
Accumulated depreciation:
Balance on 1 January 2025 54,791,566.64 54,791,566.64
Increase during the reporting period 7,354,598.21 7,354,598.21
(i) Provision 7,354,598.21 7,354,598.21
(ii) Impact of changes in exchange rates 0.00 0.00
Decrease during the reporting period 0.00 0.00
(i) Disposal 0.00 0.00
(ii) Impact of changes in exchange rates 0.00 0.00
Balance on 30 June 2025 62,146,164.85 62,146,164.85
Accumulated depreciation:
Balance on 1 January 2025 0.00 0.00
Increase during the reporting period 0.00 0.00
(i) Provision 0.00 0.00
(ii) Impact of changes in exchange rates 0.00 0.00
Decrease during the reporting period 0.00 0.00
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items Houses and buildings Total
(i) Disposal 0.00 0.00
(ii) Impact of changes in exchange rates 0.00 0.00
Balance on 30 June 2025 0.00 0.00
Carrying amount:
Balance on 30 June 2025 347,968,147.44 347,968,147.44
Balance on 1 January 2025 353,943,869.92 353,943,869.92
Items Land use rights Software Total
Initial cost:
Balance on 1 January 2025 19,423,602.68 53,847,562.20 73,271,164.88
Increase during the reporting period 0.00 0.00 0.00
(i) Acquisition 0.00 0.00 0.00
(ii) Impact of changes in exchange rates 0.00 0.00 0.00
Decrease during the reporting period 80,414.99 0.00 80,414.99
(i) Disposal 0.00 0.00 0.00
(ii) Impact of changes in exchange rates 80,414.99 0.00 80,414.99
Balance on 30 June 2025 19,343,187.69 53,847,562.20 73,190,749.89
Accumulated depreciation:
Balance on 1 January 2025 7,589,198.59 53,734,647.63 61,323,846.22
Increase during the reporting period 318,823.00 88,646.30 407,469.30
(i) Provision 318,823.00 88,646.30 407,469.30
(ii) Impact of changes in exchange rates 0.00 0.00 0.00
Decrease during the reporting period 29,067.56 0.00 29,067.56
(i) Disposal 0.00 0.00 0.00
(ii) Impact of changes in exchange rates 29,067.56 0.00 29,067.56
Balance on 30 June 2025 7,878,954.03 53,823,293.93 61,702,247.96
Accumulated depreciation:
Balance on 1 January 2025 0.00 0.00 0.00
Increase during the reporting period 0.00 0.00 0.00
(i) Provision 0.00 0.00 0.00
(ii) Impact of changes in exchange rates 0.00 0.00 0.00
Decrease during the reporting period 0.00 0.00 0.00
(i) Disposal 0.00 0.00 0.00
(ii) Impact of changes in exchange rates 0.00 0.00 0.00
Balance on 30 June 2025 0.00 0.00 0.00
Carrying amount:
Balance on 30 June 2025 11,464,233.66 24,268.27 11,488,501.93
Balance on 1 January 2025 11,834,404.09 112,914.57 11,947,318.66
Increase during the
Items 1 January 2025 Amortisation Other decrease 30 June 2025
reporting period
Telecommunications 84,199.14 0.00 18,743.94 0.00 65,455.20
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Increase during the
Items 1 January 2025 Amortisation Other decrease 30 June 2025
reporting period
project expenses
Houses and buildings
renovation expenses
Total 5,571,380.26 0.00 1,270,634.70 0.00 4,300,745.56
Items Deductible temporary Deferred tax assets Deductible temporary Deferred tax assets
differences differences
Provision for asset impairment 37,183,948.14 5,790,889.88 36,745,296.24 5,756,204.14
Provision for credit impairment 4,212,073.02 612,926.29 2,087,383.34 325,513.21
Unrealized intragroup profit 787,972.73 118,195.91 445,561.88 111,390.47
Accrued expenses 7,756,354.78 1,218,438.84 8,188,555.64 1,301,408.77
Lease liabilities 406,036,039.14 60,905,405.87 396,776,679.42 59,538,736.82
Total 455,976,387.81 68,645,856.79 444,243,476.52 67,033,253.41
Items Deductible temporary Deferred tax assets Deductible temporary Deferred tax assets
differences differences
Financial assets held for trading 942,083.33 141,312.50
Accelerated depreciation of
fixed assets
Right-of-use Assets 347,968,147.44 52,195,222.13 353,943,869.92 53,091,580.49
Total 359,925,853.36 53,988,878.02 367,736,337.08 55,160,450.56
The amount of deferred
The amount of deferred
Balance after offsetting
tax assets and liabilities Balance after offsetting
Item tax assets and liabilities
on 30 June 2025 offset on 31 December on 31 December 2024
offset on30 June 2025
Deferred tax assets -53,988,878.02 14,656,978.77 55,160,450.56 11,872,802.85
Deferred tax liabilities -53,988,878.02 55,160,450.56
Items 30 June 2025 1 January 2025
Provision for asset impairment 12,454,416.31 12,501,998.30
Provision for credit impairment 242,876.55 259,531.91
Accrued expenses 598,651.20 16,484,156.08
Payroll liability 1,482,069.15 2,119,054.60
Undistributed deficit 29,994,843.09 24,592,204.05
Total 44,772,856.30 55,956,944.94
Items 30 June 2025 31 December 2024
Year 2025
Year 2026
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items 30 June 2025 31 December 2024
Year 2027 6,631,108.51 6,631,108.51
Year 2028 5,538,094.86 5,538,094.86
Year 2029 to year 2035 17,825,639.72 12,423,000.68
Total 29,994,843.09 24,592,204.05
Items Provision for Carrying Provision for Carrying
Book balance Book balance
impairment amount impairment amount
Prepaid equipment
fee
Total 8,230,383.08 0.00 8,230,383.08 10,099,186.11 0.00 10,099,186.11
Items
Book balance Carrying amount Reasons Book balance Carrying amount Reasons
Monetary funds 1,700,000.56 1,700,000.56 Credit 2,487,216.02 2,487,216.02 Credit
Total 1,700,000.56 1,700,000.56 2,487,216.02 2,487,216.02
Items 30 June 2025 1 January 2025
Credit loan 36,333,653.27 0.00
Total 36,333,653.27 0.00
Items 30 June 2025 1 January 2025
Bank acceptance bills 4,724,919.53 19,418,627.35
Total 4,724,919.53 19,418,627.35
Items 30 June 2025 1 January 2025
Within 1 year 376,756,931.68 513,873,164.01
Over 1 year 3,418,580.27 3,448,353.28
Total 380,175,511.95 517,321,517.29
Items 30 June 2025 1 January 2025
Within 1 year 2,425,430.88 2,803,884.45
Over 1 year 122,088.80 120,448.80
Total 2,547,519.68 2,924,333.25
Items 30 June 2025 1 January 2025
Advance from merchandise 17,801,441.24 15,988,527.98
Advance management fee 258,014.99 308,211.67
Total 18,059,456.23 16,296,739.65
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Increase during the Decrease during the
Items 1 January 2025 30 June 2025
reporting period reporting period
Short-term employee
benefits
Post-employment
benefits-defined 6,308.25 12,094,598.31 12,094,778.45 6,128.11
contribution plans
Termination benefits 0.00 0.00 0.00 0.00
Total 53,957,022.40 160,664,736.31 165,911,789.19 48,709,969.52
Increase during the Decrease during the
Items 1 January 2025 30 June 2025
reporting period reporting period
Salaries, bonuses, allowances and
subsidies
Employee benefits 0.00 6,380,129.02 4,081,964.79 2,298,164.23
Social insurance 4,662.77 6,491,589.92 6,492,742.73 3,509.96
Including: Health insurance 3,512.85 4,703,811.10 4,703,981.33 3,342.62
Injury insurance 1,149.92 1,424,684.88 1,425,667.46 167.34
Birth insurance 0.00 363,093.94 363,093.94 0.00
Housing accumulation fund 15,982,742.50 4,700,519.70 3,218,450.55 17,464,811.65
Labour union funds and employee
education funds
Short-term absence pay 2,965,091.07 15,111.19 997,236.00 1,982,966.26
Total 53,950,714.15 148,570,138.00 153,817,010.74 48,703,841.41
Increase during the Decrease during the
Items 1 January 2025 30 June 2025
reporting period reporting period
Basic endowment insurance 6,122.54 11,713,289.09 11,713,469.23 5,942.40
Unemployment insurance 185.71 381,309.22 381,309.22 185.71
Total 6,308.25 12,094,598.31 12,094,778.45 6,128.11
Note: The Company participates in the endowment insurance and unemployment insurance plan established
by the government, according to these plans, the Company pays planed fees to the Company’s location. In
addition to the monthly fee deposit, the Company no longer bears further payment obligations.
Corresponding expenses are expensed as incurred or costs related assets.
Items 30 June 2025 1 January 2025
Value added tax (VAT) 685,920.24 952,185.68
Enterprise income tax 3,195,023.65 13,505,915.29
Individual income tax 460,737.73 809,831.82
City construction tax 279,795.99 601,276.22
Educational surcharge 167,877.59 360,765.73
Local education surcharge 111,918.40 240,510.49
Property tax 1,642,278.58 1,456,280.69
Land use tax 26,376.34 175,232.78
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items 30 June 2025 1 January 2025
Stamp tax 166,028.89 202,995.02
Other 1,563,908.35 5,401.04
Total 8,299,865.76 18,310,394.76
Items 30 June 2025 1 January 2025
Interest payable 0.00 0.00
Dividend payable 0.00 0.00
Other payable 33,275,738.81 40,877,557.33
Total 33,275,738.81 40,877,557.33
Items 30 June 2025 1 January 2025
Within 1 year
Over 1 year
Total
Items 30 June 2025 Reason
Deposit 7,564,028.69 Return upon termination of contract
Total 7,564,028.69
Items 30 June 2025 1 January 2025
Lease liabilities maturing within one year 7,548,324.44 922,678.70
Total 7,548,324.44 922,678.70
Items 30 June 2025 1 January 2025
Lease liabilities 699,657,407.54 698,687,752.67
Less：unrecognized financing charges 293,621,368.40 301,760,453.00
Subtotal 406,036,039.14 396,927,299.67
Less：Lease liabilities due within one year 7,548,324.44 922,678.70
Total 398,487,714.70 396,004,620.97
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Changes during the reporting period (+,-)
Item 1 January 2025 Bonus Capitalisation of 30 June 2025
New issues Others Subtotal
issues reserves
Number of total
shares
Increase during the Decrease during the
Item 1 January 2025 30 June 2025
reporting period reporting period
Capital premium
(share premium)
Other capital
reserves
Total 296,808,965.79 0.00 0.00 296,808,965.79
Ts a n n Ku e n (C h i n a ) En t e r p r i s e Co . , Lt d . Notes to the financial statements
Current year
Less: previously Less: previously
After tax After tax
recognised in other recognised in other Less:
Item 1 January 2025 Amount for the attributable to attributable to 30 June 2025
comprehensive comprehensive Income tax
year before tax the parent minority
income transferred income transferred expense
company shareholders
into profit or loss into retained earnings
will not be reclassified to profit or 41,036.56 0.00 0.00 0.00 0.00 0.00 0.00 41,036.56
loss
Including: Changes of
remeasurement of the defined 41,036.56 0.00 0.00 0.00 0.00 41,036.56
benefit plan
Other comprehensive income
inconvertible to profit or loss under
the equity method
Changes in fair value of other
equity instruments investments
Changes in fair value of corporate
credit risk
or loss
Including: Other comprehensive
income convertible to profit or loss
under the equity method
Changes in fair value of other debt
investments
Value from reclassification of
financial assets that is recorded into
other comprehensive income
Credit impairment provision for
other debt investments
Reserves of cash flow hedges
Exchange differences on translating
foreign operations
Total 11,252,746.52 -501,554.00 0.00 0.00 0.00 -376,165.50 -125,388.50 10,876,581.02
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Increase during the Decrease during the
Item 1 January 2025 30 June 2025
reporting period reporting period
Statutory surplus
reserves
Total 81,427,732.56 0.00 0.00 81,427,732.56
Note: Pursuant to the Company Law of the People's Republic of China and Articles of
Association, the Company appropriates 10% of net profit to the statutory surplus reserves.
Items Reporting period Same period of last year
Balance at the end of last period before adjustments 527,518,517.81 507,010,039.53
Adjustments for the opening balance (increase /(decrease) 0.00 0.00
Balance at the beginning of the reporting period after adjustments 527,518,517.81 507,010,039.53
Add: net profit attributable to owners of the parent company for the
reporting period
Less: appropriation to statutory surplus reserves 0.00 5,926,244.20
Appropriation to discretionary surplus reserves 0.00 0.00
Provision for general risk reserves 0.00 0.00
Payment of ordinary share dividends 33,370,502.40 46,347,920.00
Common stock dividends converted to share capital 0.00 0.00
Balance at the end of the reporting period 510,149,004.06 527,518,517.81
Reporting period Same period of last year
Items
Revenue Costs of sales Revenue Costs of sales
Principal activities 631,409,254.61 558,582,665.57 761,016,486.42 659,592,166.69
Other activities 21,364,041.78 4,297,683.61 27,069,511.61 6,141,115.42
Total 652,773,296.39 562,880,349.18 788,085,998.03 665,733,282.11
Reporting period Same period of last year
Industry (business)
Revenue Costs of sales Revenue Costs of sales
Household appliances
industry
Total 631,409,254.61 558,582,665.57 761,016,486.42 659,592,166.69
Reporting period Same period of last year
Products
Revenue Costs of sales Revenue Costs of sales
Catering and Cooking 392,599,119.51 348,325,391.98 462,268,892.25 399,171,424.13
Home helper 193,015,583.40 173,433,583.72 228,514,421.19 201,239,650.62
Tea/Coffee makers 41,387,776.71 36,129,559.32 63,844,429.06 55,995,383.83
Others 4,406,774.99 694,130.55 6,388,743.92 3,185,708.11
Total 631,409,254.61 558,582,665.57 761,016,486.42 659,592,166.69
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Reporting period Same period of last year
Region
Revenue Costs of sales Revenue Costs of sales
Australia 5,378,593.86 4,356,657.52 8,195,752.50 6,586,175.57
Africa 983,892.36 1,032,958.15 6,903,962.62 5,416,726.87
America 246,494,836.05 225,318,161.22 364,669,044.48 320,394,879.52
Europe 227,996,576.35 199,231,164.91 254,715,358.72 218,603,500.75
Asia 150,555,355.99 128,643,723.77 126,532,368.10 108,590,883.98
Total 631,409,254.61 558,582,665.57 761,016,486.42 659,592,166.69
Items Reporting period Same period of last year
City construction tax 1,005,466.10 771,046.35
Educational surcharge 575,443.10 439,841.14
Local education surcharge 383,628.74 293,227.44
Property tax 1,526,635.96 1,464,035.27
Land use tax 199,423.38 199,423.38
Stamp duty 343,256.55 422,227.45
Other 50,125.80 37,751.66
Total 4,083,979.63 3,627,552.69
Items Reporting period Same period of last year
Employee remunerations 7,326,689.09 7,980,455.20
Claims experiment expenses 471,482.30 739,908.02
Sales commission and after sales service fees 738,747.16 3,370,906.57
Rental expenses 11,046.05 11,475.66
Travel expenses 273,858.58 519,120.57
Advertisements charges and sales promotion 1,462,551.31 1,599,504.01
Administrative expenses 74,926.77 68,301.60
Others 1,347,444.80 1,416,117.54
Total 11,706,746.06 15,705,789.17
Items Reporting period Same period of last year
Employee remunerations 21,966,318.36 20,480,551.60
Depreciation and amortization of assets 4,030,881.41 5,616,418.35
Rental expenses 74,971.38 218,444.62
Insurance expenses 747,590.60 1,128,414.22
Administrative expenses 653,659.38 699,904.81
Travel expenses 1,432,973.84 1,038,227.91
Consultant fees 1,208,674.02 1,127,270.04
Maintenance expenses 2,040,248.61 1,449,875.10
Others 2,536,167.26 3,207,699.86
Total 34,691,484.86 34,966,806.51
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items Reporting period Same period of last year
Employee remunerations 22,384,976.87 23,261,847.82
Test expenses 2,916,166.39 3,430,331.72
Depreciation and amortization of assets 1,451,857.05 2,189,562.63
Certification expenses 697,826.50 773,128.19
Rental expenses 19,520.43 20,388.54
Patent expenses 290,434.10 240,516.01
Travel expenses 221,262.09 193,016.15
Maintenance expenses 871,841.42 896,637.74
Consultant fees 118,453.68 158,649.16
Others 969,418.50 982,623.18
Total 29,941,757.03 32,146,701.14
Items Reporting period Same period of last year
Interest expenses 11,155,646.85 11,082,809.10
Including: interest expense on lease liabilities 8,210,823.74 8,126,807.82
Less: Interest income 3,750,247.27 7,043,615.67
Foreign exchange losses -5,484,832.93 -4,274,603.16
Bank charges 434,325.03 448,978.74
Total 2,354,891.68 213,569.01
Items Reporting period Same period of last year
Government grant 1,727,050.00 808,125.63
Charges of withholding individual income tax 81,078.78 100,942.42
Total 1,808,128.78 909,068.05
Items Reporting period Same period of last year
Income from long-term equity investments accounted for using the
-354,876.17 0.00
equity method
Investment income of trading financial assets during the holding
period
Investment income from disposal of trading financial assets 0.00 1,260,500.00
Other current assets for financial investments 15,443,949.93 10,035,647.53
Total 16,576,429.63 14,548,243.97
Source of gains from fair value changes Reporting period Same period of last year
Held-for-trading financial assets -942,083.33 1,950,911.11
Including: gains on changes in fair value of derivatives 0.00 -432,800.00
Financial investments -942,083.33 2,383,711.11
Total -942,083.33 1,950,911.11
Items Reporting period Same period of last year
Bad debt of accounts receivables 2,015,225.65 -1,389,333.18
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items Reporting period Same period of last year
Bad debt of other receivables 93,842.03 78,341.91
Total 2,109,067.68 -1,310,991.27
Items Reporting period Same period of last year
Impairment of inventories 2,803,751.89 4,439,574.84
Impairment of fixed assets 14,916.92 946,112.84
Total 2,818,668.81 5,385,687.68
Recognized in current
Items Reporting period Same period of last year
extraordinary gains and losses
Income from the disposal of fixed
assets
Total 1,265,588.90 600,085.35 1,265,588.90
Recognized in current
Items Reporting period Same period of last year
extraordinary gains and losses
Other 679,417.25 148,920.32 679,417.25
Total 679,417.25 148,920.32 679,417.25
Recognized in current
Items Reporting period Same period of last year
extraordinary gains and losses
Loss from damage or scrapping of
non-current assets
Including: fixed assets 4,472.80 0.00 4,472.80
Donations 0.00 52,501.87 0.00
Fines expenses 69,113.01 0.00 69,113.01
Other 469.26 0.00 469.26
Total 74,055.07 52,501.87 74,055.07
Items Reporting period Same period of last year
Current tax expenses 4,654,110.88 7,618,913.13
Deferred tax expenses -2,784,175.92 -2,414,003.28
Total 1,869,934.96 5,204,909.85
Items Reporting period Same period of last year
Profit before tax 21,499,777.62 49,722,327.92
Income tax expense at the statutory /applicable tax rate 5,374,944.41 12,430,581.98
Effect of different tax rate of subsidiaries -1,283,907.82 -4,643,985.61
Adjustments of impact from prior period income tax 449,537.86 1,125,725.60
Effect of income that is exempt from taxation
Effect of non-deductible costs, expenses or losses 44,508.09 96,625.55
Effect of previously unrecognized deductible losses
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items Reporting period Same period of last year
recognised as deferred tax assets
Effect of deductible temporary differences and deductible
losses not recognised as deferred tax assets
R&D expenses plus deduction -3,197,686.88 -3,294,196.38
Income tax expenses 1,869,934.96 5,204,909.85
For details of the other comprehensive income and related tax effect, transfer to profit or loss
and adjustment of other comprehensive income, refer to Note 5.33 Other Comprehensive
Income.
Items Reporting period Same period of last year
Government grants 1,727,050.00 909,068.05
Interests income 3,750,247.27 6,860,842.72
Rent income 17,804,902.14 17,154,282.27
Funds in current account and others 8,031,919.10 7,014,534.88
Total 31,314,118.51 31,938,727.92
Items Reporting period Same period of last year
Penalties and donations 69,113.01 52,501.87
Bank charges 434,325.03 448,978.74
Sales expenses, general and administrative expenses,
and research and development expenses paid by cash
Current accounts and others 70,000.00 2,678,813.46
Total 64,931,416.35 71,557,176.73
Items Reporting period Same period of last year
Time deposits recovered after maturity for the purpose
to earn interest income in financial institutions
Total 173,102,725.55 268,987,022.90
Items Reporting period Same period of last year
Time deposits in financial institutions for the purpose
of earning interest income
Total 116,202,277.78 241,218,285.85
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items Reporting period Same period of last year
Security deposit of L/C 3,047,365.87 6,069,665.05
Total 3,047,365.87 6,069,665.05
Items Reporting period Same period of last year
Lease payments of right-of-use assets 0.00 0.00
Security deposit of L/C 2,754,112.41 4,301,333.56
Total 2,754,112.41 4,301,333.56
Same period of last
Supplementary information Reporting period
year
Net profit 19,629,842.66 44,517,418.07
Add: Provisions for impairment of assets 2,818,668.81 5,385,687.68
Impairment loss of credit 2,109,067.68 -1,310,991.27
Depreciation of fixed assets, oil and gas asset and productive biological assets 16,754,679.95 17,244,448.77
Depreciation of use rights assets 7,354,598.21 7,310,060.88
Amortisation of intangible assets 407,469.30 901,477.54
Amortisation of long-term deferred expenses 1,270,634.70 1,540,481.91
Gains on disposal of fixed assets, intangible assets, and other long-term assets -1,265,588.90 -600,085.35
Loss on scrapping of fixed assets 4,472.80 0.00
Gains on changes in fair value 942,083.33 -1,950,911.11
Finance income 8,762,972.78 8,196,564.57
Investment income -16,576,429.63 -14,548,243.97
Decreases in deferred tax assets -2,784,175.92 -2,414,003.28
Increases in deferred tax liabilities 0.00 0.00
Increases in inventories 11,864,014.29 -17,859,898.34
Increases in operating receivables 79,376,029.72 -28,637,315.68
Increases in operating payables -160,915,208.25 -44,071,683.03
Others 0.00 0.00
Net cash flows from operating activities -30,246,868.47 -26,296,992.61
payments:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Fixed assets acquired under finance leases
Cash equivalents at the end of the reporting period 389,233,066.05 343,813,144.12
Less: Cash equivalents at the beginning of the reporting period 441,890,727.50 561,809,622.45
Add: Cash equivalents at the end of the reporting period
Less: Cash equivalents at the beginning of the reporting period
Net increase in cash and cash equivalents -52,657,661.45 -217,996,478.33
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items Reporting period Same period of last year
Including: Cash on hand 1,001,771.94 782,436.23
Cash in bank available for immediate use 388,207,960.50 342,946,232.24
Other monetary funds available for immediate use 23,333.61 84,475.65
Deposit in the central banks available for immediate use 0.00 0.00
Deposit in peer firms 0.00 0.00
Loan to peer firms 0.00 0.00
Including: Bond investments maturing within three months 0.00 0.00
Items Reporting period Same period of last year Reason
Letter of credit margin 1,700,000.56 3,253,013.75 Not readily available
Total 1,700,000.56 3,253,013.75
Carrying amount in foreign Carrying amount in CNY on 30 June
Items Exchange rate
currency on 30 June 2025 2025
Cash and cash equivalents
Including: USD 17,969,923.02 7.158600 128,639,490.94
JPY 87,969,600.42 0.049594 4,362,764.37
IDR 12,989,766,211.37 0.000442 5,738,592.94
EUR 34,071.62 8.402400 286,283.38
GBP 9,419.62 9.830000 92,594.87
HKD 65,613.38 0.911950 59,836.12
HUF 81,016.00 0.021063 1,706.44
Total 139,181,269.06
Short-term borrowings
Including: USD 5,000,000.00 7.158600 35,793,000.00
Total 35,793,000.00
Accounts receivables
Including: USD 17,784,053.75 7.158600 127,308,927.18
IDR 426,639,600.00 0.000442 188,479.99
JPY 41,474,048.00 0.049594 2,056,863.94
Total 129,554,271.11
Accounts payables
Including: USD 6,856,620.36 7.158600 49,083,802.51
EUR 269,590.25 8.402400 2,265,205.12
GBP 126.00 9.830000 1,238.58
HKD 1,495.70 0.911950 1,364.00
JPY 1,500,009.82 0.049594 74,391.49
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Carrying amount in foreign Carrying amount in CNY on 30 June
Items Exchange rate
currency on 30 June 2025 2025
IDR 8,371,658,626.23 0.000442 3,698,414.60
Total 55,124,416.30
Other receivables
Including: EUR 2,160.00 8.402400 18,149.18
HKD 2,000.00 0.911950 1,823.90
USD 80,563.42 7.158600 576,721.30
IDR 3,025,232,868.00 0.000442 1,336,481.33
Total 1,933,175.71
Other payables
Including: USD 14,289.39 7.158600 102,292.03
IDR 2,299,420,950.13 0.000442 1,015,833.59
Total 1,118,125.62
Name of the overseas operating entity: Pt.Star Comgistic Indonesia
Main business area: Indonesia
Accounting standard currency: US dollars
Current profit and loss and cash flow related to the lease
Items Reporting period
Short-term lease expenses included in the profit and loss of the current period 98,870.40
Lease expense of low-value assets included in current period (except short-term lease) 0.00
Interest expense of the lease liability 8,210,823.74
Variable lease payments not included in the measurement of lease liabilities as included in
current profits and losses
Income obtained from the sublease of the use right assets 7,201,741.60
Total cash outflow related to leasing 480,960.00
Lease income
Items Reporting period
Lease income 8,826,543.69
Including: income related to variable lease payments not included in the measurement of
lease receipts
Item Reporting period Same period of last year
Employee remunerations 22,384,976.87 23,261,847.82
Test expenses 2,916,166.39 3,430,331.72
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Depreciation and amortization of assets 1,451,857.05 2,189,562.63
Certification expenses 697,826.50 773,128.19
Rental expenses 19,520.43 20,388.54
Patent expenses 290,434.10 240,516.01
Travel expenses 221,262.09 193,016.15
Maintenance expenses 871,841.42 896,637.74
Consultant fees 118,453.68 158,649.16
Others 969,418.50 982,623.18
Total 29,941,757.03 32,146,701.14
Including: Expense recognition 29,941,757.03 32,146,701.14
Capitalization
Percentage of
Principal equity interests
Registered Nature of Methods of
Name of subsidiary Registered capital place of by the
City business acquisition
business Company (%)
Direct Indirect
Manufactures
TsannKuen (Zhangzhou) home Acquired through
USD 160 million Zhangzhou Zhangzhou 75.00
Enterprise Co., Ltd.(TKL) electronic establishment
appliance
Manufactures Acquired through
TsannKuen China
home business combination
(Shanghai) Enterprise Co., USD 40 million Shanghai Shanghai 46.875
electronic under common
Ltd. (TKS)
appliance control
Xiamen Tsannkuen Acquired through
Property
Property Services Co., CNY 1.5 million Xiamen Xiamen 100.00 establishment
services
Ltd. (TKW)
Hong Kong Hong Kong Investment, Acquired through
East Sino Development HKD 318.84766 Trading business combination
Limited. (East Sino) million under common
control
Indonesia Indonesia Manufactures Acquired through
Pt.StarComgistic 41 million US home business combination
Indonesia dollars electronic under common
appliance control
Pt.Star Comgistic Indonesia Indonesia Real estate Acquired through
Property Development 75.00
dollars
Indonesia
Orient Star Investments 185,000 US Hong Kong Hong Kong Investment, Acquired through
Limited dollars Trading business
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Dividends declared to
Proportion of ownership Profit or loss attributable to Non-controlling
Name of distribute to non-
interest held by non- non- controlling interests
subsidiary controlling interests during interests at the end of
controlling interest during the reporting period
the reporting period the reporting period
TKL 25.00 4,855,608.93 13,446,820.90 332,058,762.84
Name of
subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
TKL 1,166,694,495.79 1,051,694,069.97 2,218,388,565.76 491,665,799.71 398,487,714.70 890,153,514.41
(Continued)
Name of
subsidiary Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liabilities
TKL 1,228,298,524.91 1,154,739,765.97 2,383,038,290.88 624,433,770.65 396,004,620.97 1,020,438,391.62
(Continued)
Reporting period
Name of subsidiary Total comprehensive Net cash flows from
Revenue Net profit/(loss)
income operating activities
TKL 608,398,533.13 19,422,435.70 -22,076,764.62
(Continued)
The same period of last year
Name of subsidiary
Total comprehensive Net cash flows from
Revenue Net profit/(loss)
income operating activities
TKL 736,700,275.24 46,128,800.78 18,948,235.38
associates
Item 30 June 2025 1 January 2025
Associates:
Total Book Value of investments 9,800,000.00 0.00
The following aggregate amounts are presented based
on the shareholding ratio (%)
Net profits -266,157.13 0.00
Other comprehensive income 0.00 0.00
Total comprehensive income -266,157.13 0.00
Item in P&L statemen Reporting period The same period of last year
Other earnings 1,727,050.00 909,068.05
Total 1,727,050.00 909,068.05
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
The company faces various financial risks during its operations, including credit risk, liquidity risk, and
market risk (including foreign exchange risk, interest rate risk, and other price risks). The following
describes these financial risks and the risk management policies adopted by the company to mitigate them:
The Board of Directors is responsible for planning and establishing the company's risk management
framework, formulating risk management policies and related guidelines, and overseeing the
implementation of risk management measures. The company has established risk management policies to
identify and analyze the risks it faces. These policies provide clear regulations for specific risks, covering
aspects such as market risk, credit risk, and liquidity risk management. The company regularly assesses
changes in the market environment and its business activities to determine whether updates to its risk
management policies and systems are necessary. Risk management is conducted by the Risk Management
Committee according to policies approved by the Board of Directors. The Risk Management Committee
collaborates closely with other business departments to identify, evaluate, and mitigate relevant risks. The
company’s internal audit department conducts regular reviews of risk management controls and
procedures and reports the results to the Audit Committee.
The company diversifies financial instrument risks through appropriate investment and business portfolio
strategies and reduces concentration risks associated with single industries, specific regions, or particular
counterparties by implementing corresponding risk management policies.
Credit risk refers to the risk of financial loss arising from a counterparty's failure to fulfill its contractual
obligations.
The main sources of credit risk for the company include cash and bank balances, notes receivable, accounts
receivable, receivables financing, contract assets, other receivables, debt investments, other debt
investments, and financial guarantee contracts, as well as debt instruments measured at fair value through
profit or loss and derivative financial assets that are not subject to impairment assessment. As of the
balance sheet date, the carrying amount of the company's financial assets represents its maximum exposure
to credit risk.
The company's cash and bank balances are primarily held with state-owned banks and other large and
medium-sized listed banks with high credit ratings. The company believes there is no significant credit risk,
and it is unlikely that major losses will arise from bank defaults.
For notes receivable, accounts receivable, receivables financing, contract assets, and other receivables, the
company has established policies to control credit risk exposure. The company assesses the
creditworthiness of customers based on their financial condition, the possibility of obtaining guarantees
from third parties, credit history, and other factors such as current market conditions, and sets appropriate
credit terms accordingly. The company monitors customer credit records regularly. For customers with poor
credit records, the company may take actions such as written reminders, shortening credit periods, or
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
canceling credit periods to ensure that its overall credit risk remains within a manageable range.
Liquidity risk refers to the risk of a shortage of funds when a company needs to settle obligations
denominated in cash or other financial assets.
The company's policy is to maintain sufficient cash to repay maturing debts. Liquidity risk is centrally
controlled by the finance department. The finance department monitors cash balances, readily marketable
securities, and rolling forecasts of cash flows for the next 12 months to ensure that the company has
adequate funds to meet its debt obligations under all reasonable scenarios. Additionally, the company
continuously monitors compliance with loan agreements and secures commitments from major financial
institutions to provide sufficient standby funding to meet both short-term and long-term capital
requirements.
Market risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate
due to changes in market prices, including foreign exchange risk, interest rate risk, and other price risks.
①Interest Rate Risk
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in market interest rates.
Fixed-rate and floating-rate interest-bearing financial instruments expose the company to fair value interest
rate risk and cash flow interest rate risk, respectively. The company determines the proportion of fixed-rate
versus floating-rate instruments based on market conditions and maintains an appropriate mix of fixed and
floating rate instruments through regular reviews and monitoring. When necessary, the company uses
interest rate swaps to hedge interest rate risks.
②Foreign Exchange Risk
Foreign exchange risk refers to the risk that the fair value or future cash flows of financial instruments will
fluctuate due to changes in foreign exchange rates.
The company continuously monitors foreign currency transactions and the scale of foreign currency assets
and liabilities to minimize its exposure to foreign exchange risks. Additionally, the company may enter into
forward foreign exchange contracts or currency swap contracts to hedge against foreign exchange risks.
During the current and previous periods, the company did not enter into any forward foreign exchange
contracts or currency swap contracts.
The company's exposure to foreign exchange risk mainly arises from financial assets and liabilities
denominated in US dollars. The amounts of foreign currency financial assets and liabilities converted into
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
CNY are listed below:
Items 30 June 2025 1 January 2025
Cash and cash equivalent 139,181,269.06 112,054,855.83
Accounts receivable 129,554,271.11 203,496,159.10
Other receivables 1,933,175.71 609,593.63
Short-term loan 35,793,000.00 0.00
Accounts payable 55,124,416.30 46,143,775.01
Other payables 1,118,125.62 1,274,139.73
The inputs used in fair value measurements are divided into three levels:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that are
available at the measurement date.
Level 2 inputs are inputs other than Level 1 inputs that are directly or indirectly observable for the related
asset or liability.
Level 3 inputs are unobservable inputs for the relevant asset or liability.
The level to which the fair value measurement results belong is determined by the lowest level to which the
inputs that are significant to the fair value measurement as a whole belong.
Fair value at 30 June 2025
Items
Level 1 Level 2 Level 3 Total
Recurring fair value measurements
(a) Held-for-trading financial assets
(i) Financial assets at fair value through profit or
loss
Debt instruments
Equity instruments
Derivatives
(b) Other investments in equity instruments 40,000.00 40,000.00
(c) Other non-current financial assets
Total assets measured at fair value on a recurring
basis
(d) Held-for-trading financial liabilities
(i) Financial liabilities at fair value through profit
or loss
Including: Held-for-trading bonds
Derivatives
Others
Total liabilities measured at fair value on a
recurring basis
Recurring or Nonrecurring Basis
The fair value measurement is based on the valuation provided by the bank where the unsettled forward
foreign exchange is located on the balance sheet date.
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Percentage of
Registered Nature of the Registered capital Voting rights in the
Name of the parent equity interests in
address business (NTD ten thousand) Company (%)
the Company (%)
Manufactures and
STAR COMGISTIC CAPITAL
Taiwan sales electrical 300,000.00 42.90 44.68
CO., LTD.
equipment
Note: The ultimate controlling party of the Company is STAR COMGISTIC CAPITAL CO., LTD.
Refer to Notes 8 INTERESTS IN OTHER ENTITIES for details of the subsidiaries.
Name of Joint Venture or Associate Relationship with the Company
Shanghai Upa Smart Chain Home Appliances Co., Ltd. Associates of the Company's Subsidiaries
Name of related party Related party relationship
The company is directly controlled by the key management
Thermaster Electronic (Xiamen) Ltd.
and closed family members
Tsann Kuen Enterprise Co., Ltd. Same actual controller
TsannKuen Japan Co., Ltd. Same actual controller
Purchases of goods, receiving of services:
Content of Approval trade Whether exceed Same period of last
Related parties Reporting period
transaction credit trade credit or not year
Thermaster
Electronic Purchase of goods 12,327,823.19 35,000,000.00 No 16,417,697.76
(XIAMEN) Limited
Sales of goods/provide labour services
Nature of the
Related parties Reporting period Same period of last year
transaction(s)
STAR COMGISTIC CAPITAL CO., LTD. Sales of goods 1,662,803.05 1,241,109.47
Currency: Ten thousand yuan
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Item Reporting period Same period of last year
Key management personnel compensation 208.20 210.59
Nature of the
Related parties Reporting period Same period of last year
transaction(s)
TsannKuen Japan Co., Ltd. Accept labor service 735,529.89 686,252.07
Total 735,529.89 686,252.07
Items Bad debt
Book balance Bad debt provision Book balance
provision
Accounts receivable
STAR COMGISTIC CAPITAL CO., LTD. 364,979.43 950,914.62
Total 364,979.43 950,914.62
Items 30 June 2025 1 January 2025
Accounts payable
Thermaster Electronic (Xiamen) Ltd. 7,288,976.42 6,936,867.52
Total 7,288,976.42 6,936,867.52
As of June 30, 2025, the Company has no significant commitments to disclose.
As of 30th June 2025, The Company has no significant contingencies need to be disclosed.
None.
PARENT COMPANY
Aging 30 June 2025 1 January 2025
Within 1 year 323,501.01 117,163.04
Including: 1 – 90 days 222,811.18 102,845.83
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Aging 30 June 2025 1 January 2025
Over 3 years 125,418.08 125,418.08
ncluding: 3-4 years 0.00 9,677.56
Over 5 years 5,000.00 5,000.00
Subtotal 469,090.09 262,621.36
Less: Provision for bad debt 47,421.34 60,840.92
Total 421,668.75 201,780.44
Category Book balance Provision for bad debt
Carrying amount
Amount Proportion (%) Amount Proportion (%)
Provision for bad debt recognised individually
Provision for bad debt recognised collectively
Including: Portfolio by age
Portfolio by related parties
Total
(Continued)
Category Book balance Provision for bad debt
Carrying amoun
Amount Proportion (%) Amount Proportion (%)
Provision for bad debt recognised individually 0.00 0.00 0.00 0.00 0.00
Provision for bad debt recognised collectively 262,621.36 100.00 60,840.92 23.17 201,780.44
Including: Portfolio by age 262,621.36 100.00 60,840.92 23.17 201,780.44
Portfolio by related parties
Total 262,621.36 100.00 60,840.92 23.17 201,780.44
Specific instructions for provision for bad debts: accounts receivable with bad debt provision recognised
collectively by aging
Items
Book balance Provision for bad debt Provision ratio (%)
Not overdue 200,000.00 1,000.00 0.50
Overdue 1 – 30 days 3,165.00 142.43 4.50
Overdue 31 – 60 days 0.00 0.00 0.00
Overdue 61 – 90 days 0.00 0.00 0.00
Overdue more than 90 days 46,278.91 46,278.91 100.00
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items
Book balance Provision for bad debt Provision ratio (%)
Total 249,443.91 47,421.34
(Continued)
Items
Book balance Provision for bad debt Provision ratio (%)
Not overdue 201,566.83 1,007.83 0.50
Overdue 1 – 30 days 1,279.00 57.56 4.50
Overdue 31 – 60 days 0.00 0.00 0.00
Overdue 61 – 90 days 0.00 0.00 0.00
Overdue more than 90 days 59,775.53 59,775.53 100.00
Total 262,621.36 60,840.92
For the criteria for recognition of bad debts and the description of bad debt provision by combination,
please refer to "III.9" in this note.
Changes during the reporting period
Category 1 January 2025 Recovery or 30 June 2025
Provision Write-off Others
reversal
Provision for bad debt
recognised collectively
Total 60,840.92 886.14 14,305.72 0.00 0.00 47,421.34
Proportion of the balance
Entity Balance at 30 Contract Assets to the total accounts
Total Provision for bad debt
name June 2025 at 30 June 2025 receivable and Contract
Assets (%)
No. 1 219,646.18 219,646.18 46.82
No. 2 100,107.83 100,107.83 21.34 607.83
No. 3 100,000.00 100,000.00 21.32 500.00
No. 4 20,753.00 20,753.00 4.42 20,753.00
No. 5 20,418.08 20,418.08 4.35 20,418.08
Total 460,925.09 460,925.09 98.25 42,278.91
Items 30 June 2025 1 January 2025
Interest receivable
Dividend receivable
Other receivables 6,112,753.11 6,555,310.24
Total 6,112,753.11 6,555,310.24
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Aging 30 June 2025 1 January 2025
Within 1 year 6,150,265.08 6,472,526.44
Including: 1 – 90 days 5,563,156.32 6,435,216.14
Over 3 years 10,000.00 0.00
ncluding: 3-4 years 10,000.00 0.00
Over 5 years 0.00 0.00
Subtotal 6,270,265.08 6,618,526.44
Less: Provision for bad debt 157,511.97 63,216.20
Total 6,112,753.11 6,555,310.24
Nature 30 June 2025 1 January 2025
Other current balances 3,795,136.69 3,036,610.37
Deposit 61,000.00 87,000.00
Due from related parties 2,414,128.39 3,494,916.07
Subtotal 6,270,265.08 6,618,526.44
Less: bad debt provision 157,511.97 63,216.20
Total 6,112,753.11 6,555,310.24
Provision for bad debt Expected credit loss Expected credit loss Expected credit loss Total
within following 12 within life time within life time
months (unimpaired) (impaired)
Balance on January 1, 2025 63,216.20 63,216.20
On January 1, 2025 Other receivable
—— —— —— ——
carrying amount on the book
transfer to 2nd stage 0.00
transfer to 3rd stage 0.00
reverse to 2nd stage 0.00
reverse to 1st stage 0.00
Accrued 94,295.77 94,295.77
Reversed 0.00
Recollected 0.00
Written off 0.00
Others 0.00
Balance on June 30, 2025 157,511.97 0.00 0.00 157,511.97
Changes during the reporting period 30 June
Category 1 January 2025
Provision Recovery or Write-off Others 2025
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
reversal
Provision for bad debt recognised
individually
Accounts receivable with provision for
bad debt recognised collectively
Total 63,216.20 94,295.77 0.00 0.00 0.00 157,511.97
Proportion of the
Allowance for
Balance as of 30 balance to the total
Entity name Nature Aging bad debts as at
June 2025 other receivables
(%)
Xiamen Jingxin Yongzhuo Trading Co., Accounts
Ltd. Receivable
State Grid Fujian Electric Power Co., Accounts Within 90
Ltd. Xiamen Power Supply Company Receivable 188,760.13 days 3.01
Tsann Kuen (CHINA) Enterprise Co., Accounts 120-270 days
Ltd.(Alipay account) Receivable 110,000.00 Over 1 year 1.75 70,166.80
Tmall supply and marketing platform Deposit 50,000.00 Over 1 year 0.80
Tesla Automobile Sales and Service Accounts Within 30
(Xiamen) Co., Ltd. Receivable days
Total 1,295,011.76 20.65 153,326.03
Items Provision for Provision for
Book Carrying amount Book balance Carrying amount
impairment impairment
balance
Investments in
subsidiaries
Total 923,414,701.56 0.00 923,414,701.56 923,414,701.56 0.00 923,414,701.56
Provision for
Decrease Provision for
Increase during impairment
during the impairment
Investees 1 January 2025 the reporting 30 June 2025 during the
reporting at 30 June
period reporting
period 2025
period
TKL 921,914,701.56 921,914,701.56
TKW 1,500,000.00 1,500,000.00
Total 923,414,701.56 923,414,701.56
The Reporting period The same period of last year
Items
Revenue Costs of sales Revenue Costs of sales
Principal activities 1,648,487.96 1,270,757.64 1,419,149.09 968,090.70
Other activities 31,676,528.08 19,458,713.27 28,680,172.61 17,192,678.24
Total 33,325,016.04 20,729,470.91 30,099,321.70 18,160,768.94
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items The Reporting period The same period of last year
Investment income from long-term equity investments under equity
method
Total 40,989,673.41 50,748,305.69
Items Amount Description
Losses on disposal of non-current assets (inclusive of impairment allowance write-offs) 1,265,588.90
Government grants recognised in current profit or loss (except government grants
that is closely related to operations and determined based on a fixed scale according 1,808,128.78
to the national unified standard)
Gains /(losses) arising from changes in fair value of held-for-trading financial assets
and held-for-trading financial liabilities during the holding period and investment
income arising from disposal of held-for-trading financial assets, held-for-trading 190,396.37
financial liabilities and assets classified as held for sale except effective hedging
transactions related to the Company's principal activities
Funds occupation fee recognised in current profit or loss from non-financial companies
Gains /(losses) on entrusted investments or asset managements
Gains /(losses) arising from entrusted loans to other entities
Provision for impairment of each asset due to force majeure such as a natural
disaster
Reversal of provision for impairment of accounts receivable tested for impairment
individually
The excess of attributable fair value of net identifiable assets over the consideration
paid for subsidiaries, associates, or joint ventures recognised by the Company
Net gains /(losses) of subsidiaries arising from business combination under common
control from the beginning of the reporting period till the combination date
Gains/(losses) generated from non-monetary asset exchange
Gains /(losses) on debt restructuring
Corporate restructuring charge, such as expenditure for staff resettlement
and integration cost
Impact of one-off adjustment to current profit or loss based on the requirements of
taxation and accounting laws and regulations
Share-based payment expenses recognized at one time due to cancellation or
modification of the equity incentive plan
For cash-settled share-based payments, gains or losses arising from changes in the fair
value of employee remuneration payable after the vesting date
Gains /(losses) arising from changes in fair value of investment properties
adopting fair value model for subsequent measurement
Gains /(losses) from excess of fair value in non-arm’s length transactions
Gains /(losses) arising from contingencies other than those related to principal
activities of the Company
Custody fee income from entrusted operations
Other non-operating income/expenses except for items mentioned above
Other extraordinary gains/(losses) defined
Tsann Kuen (China) Enterprise Co., Ltd. Notes to the financial statements
Items Amount Description
Less: Income tax effects 582,940.72
Non-controlling interests effects (after tax)
Total
EPS
Weighted average return
Profit for the reporting period
on net assets (%) Basic (Yuan per share) Diluted (Yuan per share)
Net profit attributable to ordinary
shareholders
Net profit attributable to ordinary
shareholders after extraordinary gains 1.21 0.07 0.07
and losses
Please see Note 3.28 “Changes in Significant Accounting Policies and Accounting Estimates” for details.
Name of the Company: TsannKuen (China) Enterprise Co., Ltd.
Date: 7 August 2025
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