新和成:2021年半年度报告（英文版）

Zhejiang NHU Company Ltd.2021 Semi-Annual Report
August 2021
Section I Important Notes Contents and Definitions
The Board of Directors the Board of Supervisors directors supervisors
and senior executives of the Company hereby guarantee that the information
presented in this semi-annual report is authentic accurate complete and free of
any false records misleading statements or material omissions and they will
bear joint and several liabilities for such information.Hu Baifan the Company’s legal representative Shi Guanqun the person in
charge of finance and accounting work and Wang Xiaobi the person in charge
of accounting institution (Accounting Officer) hereby declare and warrant that
the financial statements in the semi-annual report are authentic accurate and
complete.All directors attended the meeting of the Board of Directors for deliberation
of this annual report.Profit distribution proposal of semi-annual report or proposal on
capitalization of capital reserves reviewed by the Board of Directors in the
reporting period: The Company will not distribute cash dividend distribute
bonus shares or distribute shares from capital reserve during the current
reporting period.Note:
This document is a translated version of the Chinese version 2021 Semi-Annual Report（“2021 年半年度报告”） and the published announcements in the Chinese version shall
prevail. The complete published Chinese 2021 semi-Annual Report maybe obtained at
www.cninfo.com.cn.Contents
Section I Important Notes Contents and Definitions... 2
Section II Company Profile and Key Financial Indic... 5
Section III Management Discussion and Analysis ...... 9
Section IV Corporate Governance .................... 27
Section V Environmental and Social Responsibilitie.. 27
Section VI Significant Events ...................... 38
Section VII Changes in Shares and Information abou.. 48
Section VIII Information of Preferred Shares ....... 56
Section IX Situation on Corporate Bonds ............ 57
Section X Financial Report ......................... 58
Section XI Documents Available for Reference ...... 200
Definitions
Item Refers To Definitions
Company the Company and NHU Refers To Zhejiang NHU Company Ltd.CSRC Refers To China Securities Regulatory Commission
Zhejiang Regulatory Bureau of China Securities Regulatory
Zhejiang Securities Regulatory Bureau Refers To
Commission
PPS Refers To Polyphenylene sulfide
PPA Refers To Poly phthalamide
COD Refers To chemical oxygen demand
NOX Refers To nitrogen oxides
SO? Refers To Sulphur dioxide
VOC Refers To volatile organic compound
Xinchang Vitamins Refers To Xinchang NHU Vitamins Co. Ltd.Zhejiang VYS Refers To Zhejiang Vityesun Animal Nutrition And Health Co. Ltd.Boao Lidu Refers To Qionghai Boao Lidu Real Estate Co. Ltd.NHU Import & Export Refers To Zhejiang NHU Import&Export Co. Ltd.Shangyu Bio-Chem Refers To Shangyu NHU Bio-Chem Co. Ltd.Zhejiang Pharmaceutical Refers To Zhejiang NHU Pharmaceutical Co. Ltd.Zhejiang Special Materials Refers To Zhejiang NHU Construction Material Co. Ltd.Shandong Pharmaceutical Refers To Shandong NHU Pharmaceutical Co. Ltd.Shandong Vitamins Refers To Shandong NHU Vitamins Co. Ltd.Shandong NHU Fine Chemical Science and Technology CO.Shandong Jinghua Refers To
LTD.Shandong Amino-acids Refers To Shandong NHU Amino-acids Co. Ltd.Shandong Holding Refers To Shandong NHU Holdings Co. Ltd.Heilongjiang Biological Technology Refers To Heilongjiang NHU Biotechnology Co. Ltd.NHU (Hong Kong) Refers To NHU （HONGKONG） TRADING COMPANY LIMITED
Section II Company Profile and Key Financial Indicators
I. Company Profile
Stock Abbreviation NHU Stock Code 002001
Stock Exchange Shenzhen Stock Exchange
Company Name in Chinese 浙江新和成股份有限公司
Company Abbreviation in Chinese (If
NHU
any)
Company Name in Foreign Language
ZHEJIANG NHU COMPANY LTD.(If any)
Company Abbreviation in Foreign
NHU
Language (If any)
Legal Representative Hu Baifan
II. Contact Person and Contact Information
Item Board Secretary Securities Affairs Representative
Name Shi Guanqun Zeng Shuying
No.418 Xinchang Dadao West Road No.418 Xinchang Dadao West Road
Contact Address
Xinchang Zhejiang P.R.China Xinchang Zhejiang P.R.China
Tel. (0575)86017157 (0575)86017157
Fax (0575)86125377 (0575)86125377
E-mail sgq@cnhu.com 002001@cnhu.com
III. Other Information
1. Company’s Contact Information
Whether the Company’s registered address office address postal code website and e-mail address has changed during the reporting
period
□ Applicable √ Not applicable
The Company’s registered address office address postal code website and e-mail address have not changed during the reporting
period which can be found in the 2020 Annual Report.2. Information Disclosure and Location
Whether information disclosure and location has changed during the reporting period
□ Applicable √ Not applicable
The name of the Company’s selected information disclosure newspaper the URL of the website designated by the CSRC where the
semi-annual report is posted and the place where the Company’s semi-annual report is available have not changed during the
reporting period which can be found in the 2020 Annual Report.IV. Key Accounting Data and Financial Indicators
Whether the Company needs performed retroactive adjustment or restatement of accounting data in prior years or not
√ Yes □ No
Retroactive adjustment or restatement of reasons
Consolidated under the Same Control
Increase/Decrease of the
Current Reporting Period
The Current The Same Period of the Previous Year Compared with the Same
Item
Reporting Period Period of the Previous
Year
Before adjustment After adjustment After adjustment
Operating Revenue (RMB) 7254221638.01 5290274214.99 5303165502.25 36.79%
Net Profit Attributable to
Shareholders of the Listed Company 2408499133.50 2211899379.72 2208930277.20 9.03%
(RMB)
Net Profit Attributable to
Shareholders of the Listed Company
2279454655.63 2114837105.23 2114837105.23 7.78%
after Deducting Non-recurring Gains
and Losses (RMB)
Net Cash Flow Generated by
2271157481.77 1147083367.93 1127560220.11 101.42%
Operational Activities (RMB)
Basic Earnings per Share
0.93 0.86 [Note] 0.86 [Note] 8.14%
(RMB/Share)
Diluted Earnings per Share
0.93 0.86 [Note] 0.86 [Note] 8.14%
(RMB/Share)
Decrease 0.29
Weighted Average ROE 12.02% 12.44% 12.31%
percentage point
Increase/Decrease at the
End of the Current
At the End of the
At the End of the Previous Year Reporting Period
Item Current Reporting
Compared with the End
Period
of the Previous Year
Before adjustment After adjustment After adjustment
Total Assets (RMB) 33647974809.91 30897007799.54 30897007799.54 8.90%
Net Assets Attributable to
Shareholders of the Listed Company 20231380128.84 19336254922.95 19336254922.95 4.63%
(RMB)
Note: Shaoxing Rossence Material Technology Co.Ltd and Shaoxing Qinjin New Materials Co. Ltd. were included in the scope of
the Company’s consolidated statements on September 1 2020 and Weifang Jinghe Real Estate Co. Ltd was included in the scope of
the Company’s consolidation on November 1 2020 and the Company made retroactive adjustments to the relevant financial
statement data.[Note] After the implementation of the Company’s profit distribution plan for 2020 the Company’s share capital increased from
2148662300.00 shares to 2578394760.00 shares and the above earnings per share for the same period of the previous year was
recalculated based on the adjusted share capital.V. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences of net profits and net assets in the financial reports disclosed according to the international
accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between International Financial Reporting Standards (IFRS)
and China Accounting Standards in the reporting period
2. Differences between the net profits and net assets in the financial reports disclosed according to the
overseas accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
There is no difference in net profits and net assets of this financial report between Overseas Accounting Standards and China
Accounting Standards in the reporting period.VI. Non-recurring Gains and Losses Items and Their Amounts
VI. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount
Profits or losses from disposal of non-current assets (including
1065564.79
the write-off for the accrued impairment of assets)
The government subsidies included in the current profits and
losses (excluding the government subsidies closely related to
76380676.96
regular businesses of the Company and issued in the quota or
quantity based on the national standards)
Gains or losses from investment or asset management entrusted
29617969.78
to others
Profits and losses resulting from the changes in fair value for 23301029.03
holding trading financial assets derivative financial assets and
trading financial liabilities derivative financial liabilities and
investment income from disposal of trading financial assets
derivative financial assets trading financial liabilities
derivative financial liabilities and other obligatory right
investment excluding the effective hedging businesses related
to the regular business operation of the Company
Non-operating revenue and expenses other than the above 9566525.91
Less: Impact of income tax 10887288.60
Total 129044477.87
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement on Information Disclosure for
Companies Offering Their Securities to Public - Non-recurring Gains and Losses or non-recurring gains and losses items listed in the
said document defined as recurring ones please specify the reasons.□ Applicable √ Not applicable
In the reporting period the Company did not define any non-recurring gains and losses items defined and listed in the No. 1
Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to Public - Non-recurring Gains and
Losses as recurring gains and losses items.Section III Management Discussion and Analysis
I. The Principal Business of the Company during the Reporting Period
NHU is a national high-tech enterprise focusing on the production and sales of nutritional health products and new polymer
materials. It has been innovating and developing around the business fields of nutritional products aroma chemicals and new
polymer materials and striving to build “chemical+” and “biological+” platforms. It has been constantly enriching its products
category and developing functional chemicals. NHU adheres to the customer-oriented philosophy takes customers as the center to
create value providing solutions for over 100 countries and regions across the world continuously improving quality of human life
with high-quality healthy and green products and creating sustainable value with win-win development. With leading technologies
scientific management and sincere services NHU has become a world-renowned supplier of vitamins and a large national
manufacturer of aroma chemicals.I. Main Products and Applications
Nutritional products: NHU’s main vitamin products include vitamin E vitamin A vitamin C DL-methionine vitamin D3
Vitamin H coenzyme Q10 and astaxanthin which are mainly used as feed and food additives to enhance animal health and boost
profit of breeding industry as well as to provide the energy and nutrition needed for human being. NHU’s vitamin products as the
main business have a substantial market share with a prominent industrial position famous brand advantages and the market
standing of leading domestically and being well-known globally.Aroma chemicals: NHU’s main aroma chemical products include : linalool citral and cis-3-hexenol series and methyl
dihydrojasmonate raspberry ketone and ligustral covering fragrance and flavor market. Its main aroma chemical products currently
focus on the global market with strong competitiveness a high market share and relatively stable market structure.New polymer materials: NHU’s main new material products include PPS and PPA which are characterized by high
temperature resistance corrosion resistance and strong stability. At present PPS series products have successfully entered the
mainstream market application fields such as automobiles electronic appliances and environmental protection.II. Major Operations during the Reporting Period
During the reporting period the Company has been actively taking countermeasures to seize market opportunities and maintain
a positive growth trend in production and operation facing the continuous impact of the global pandemic and changes in the market.Compared with the corresponding period of last year in the first half of 2021 NHU has achieved RMB 7254221638.01 operating
income with an increase of 36.79%; RMB 2811545441.60 total profit with an increase of 9.82%; and RMB 2408499133.50 net
profit attributable to the shareholders of the listed company with an increase of 9.03%.1. Collaborations to ensure the orderly progress of production and operation. During the report period the market department of
NHU adjusted sales strategy based on the market situation in a timely manner. The production procurement and other functional
departments worked closely with the sales department to improve the response to customers' demand. By establishing strategic
cooperation with shipping companies and predicting the market and locking space in advance NHU has ensured to the stable
delivery of products during special periods. And by establishing a key raw material database for weekly follow-up implement
strategic reserves strategic purchases and other forms NHU has ensured to the stable supply of bulk raw materials. All such
measures guaranteed the stable operation of sales business.2. Promoting the construction of key projects and research subject orderly. During the report period NHU have been
improving the quality and efficiency of its products and their competitiveness through process optimization and internal tapping;
NHU’s 100000-ton plant of the 250000-ton-per-year DL-methionine phase II project the biofermentation project (Phase I) and
other new projects were in stable production; NHU’s 150000-ton plant of the 250000-ton-per-year DL-methionine phase II project
was on schedule and the overall progress was under control. NHU has been steadily advancing other key R&D topics according tothe planned nodes with its innovative achievements recognized by the society. The project of “The Key Innovation andIndustrialization Technology for Tailoring Supported Catalysts in the Micro-nano dimension” won the first prize of Technological
Invention in Zhejiang Province in 2020.3. Continuously consolidating the management foundation and improving management efficiency. During the reporting period
NHU gave full play to the advantages of overall capital operation to ensure the funds required for operation project construction and
investment. At the same time NHU also optimized the process information system sorted out and optimized core business processes
to improve operational efficiency launched the equipment integrity management system promoted the HSE management system
pilot and intelligent manufacturing system construction optimized the company organization promoted the rotation and training
mechanism and innovated an efficient salary and performance management model to stimulate the initiative of each level.There was not any significant change on NHU’s main business and business model during the reporting period.II. Core Competitiveness Analysis1. Advantages of Corporate Culture and the Management Team. The Company advocates the purpose of “creating wealthachieving employees and benefiting society” the values of “new harmony union” the operation philosophy of “wealth creationbalance and sustainability” the corporate spirit of “seeking truth innovation quality and efficiency” innovates and improves itsmanagement thereby guaranteeing the stable development of the enterprise. Under the influence of the “teacher culture” the
Company advocates that the sage is the teacher the competent is the teacher being modest and educating carefully. The human
resource management is transformed into the human resource business support service. The talent supply chain construction and the
leader team construction are effectively promoted. Business and professional leading talents are recruited and undergraduates are
systematically trained and reserved by introducing the business-oriented and specialty-oriented talents. The talent cultivation
measures such as employee assignment project training and work shift are extensively implemented. A talent team which is
pioneering innovative pragmatic and efficient and an excellent management team which is long-term stable and with high sense of
responsibility are developed promoting continuous healthy and rapid development of the Company.2. Advantages of Technical Resources and Technology Research and Development The Company insists on the research and
development philosophy of “demand-oriented internal and external integration” integrates global resources and closely cooperates
with famous domestic and foreign research institutes and universities such as Zhejiang University Chinese Academy of Sciences
Jiangnan University China Agricultural University Zhejiang University of Technology and CysBio biotechnology company of
Denmark to jointly conduct prospective studies and application field studies on chemicals. The Company has developed research and
development institutes such as state-recognized enterprise technology center national-level post-doctoral scientific research
workstation and national model academician and expert workstation set up laboratories such as bio-pharmaceutical laboratory
supercritical reaction laboratory and engineering equipment research center equipped cutting-edge research and development
instruments such as 600M NMR with cryoprobes and mastered leading domestic technologies such as supercritical reaction high
vacuum distillation and continuous reaction.3. Advantages of processes and equipment. The Company values effective combination of processes and equipment has set up
the process equipment research institute to cooperate with domestic and foreign famous engineering companies and scientific
research institutes. The Company keeps improving the quality of processes and equipment from all rounds through introduction
digestion absorption and re-innovation of advanced technologies. The Company is dedicated to large-scale airtight continuous and
automated transformation of equipment in process and equipment research and development to save energy reduce emissions
improve the labor productivity and product quality increase the intrinsic safety of the production process lower the cost and improve
the level of automation. Currently the Company has developed various efficient reaction and separation platforms including
continuous reaction high vacuum distillation continuous extraction continuous crystallization efficient filtration simulated moving
bed separation microchannel and micro-interface reaction with respect to specific processes and remarkable results have been
achieved in continuous transformation of reaction vapor-liquid-solid heterogeneous reaction and separation of air sensitive and heat
sensitive materials through continuous improvement of large-size equipment.4. Brand Advantages The Company insists on “good faith” and has set the goals of serving the customers and creating industry
values together with the customers for years. The Company consistently provides the customers with secure and superior products as
well as efficient and satisfactory services through technical innovation. After years of development and accumulation the Company
has been awarded several honorary titles in the global fine chemical industry such as one of top ten feed additive brands in China and
one of large-scale vitamin feed additive enterprises in China. The favorable reputation in the market has laid a solid foundation for
the healthy and persistent development of the Company.III. Main Business Analysis
Refer to “I. The Principal Business of the Company during the Reporting Period”
Year-on-year changes in key financial data
Unit: RMB
Year-on-year
The Current The Same Period of
Item increase or Reasons for Changes
Reporting Period the Previous Year
decrease
Mainly due to the increase in sales volume
Operating Income 7254221638.01 5303165502.25 36.79%
of vitamin E and DL-methionine products.Mainly due to the increase in sales volume
of vitamin E and DL-methionine pruducts
Operating Cost 3755325045.02 2143809060.49 75.17% and adjusting freight and transportation
premium into operating costs for
implementing the new income standard.Mainly due to the impact of the
implementation of the new income
Sales Expenses 55479574.90 132057487.52 -57.99% standard adjusting freight and
transportation premium into operating
costs.Administration Mainly due to the increase in depreciation.187505914.10 183896476.30 1.96%
Expenses
Mainly due to the increase in loan interests
Financial and the increase in foreign exchange losses
144530139.09 76306971.80 89.41%
Expenses which caused by the fluctuation in foreign
exchange rate.Income Tax Mainly due to the increase of taxable
394709861.22 345891461.03 14.11%
Expense income
Research and
Mainly due to the increase of material
Development 351532764.55 219152938.63 60.41%
inputs and salary
Expense
Net Cash Flow Mainly due to the increase of accordance
Generated by 2271157481.77 1127560220.11 101.42% with operating income growth meanwhile
Operating sales collection increases during the
Year-on-year
The Current The Same Period of
Item increase or Reasons for Changes
Reporting Period the Previous Year
decrease
Activities current reporting period
Net Amount of
Cash Flow Mainly due to the decrease of the expired
Generated by -1066449910.49 1519123736.14 -170.20% bank financial products in the current
Investment reporting period
Activities
Net Cash Flow
Generated by
351773744.86 -649397506.59 154.17% Mainly due to the increase of loans
Financing
Activities
Net Additions to
Mainly due to the decrease in expired bank
Balance of 1512856721.48 2027758341.46 -25.39%
financial products
Equivalents
Significant changes in the composition of the Company’s profit or sources of profit during the reporting period
□ Applicable √ Not applicable
No significant changes in the composition of the Company’s profit or sources of profit during the reporting period.Operating Income Structure
Unit: RMB
The Current Reporting Period The Same Period of the Previous Year Year-on-year
Item Proportion in Proportion in increase or
Amount Amount
Operating Income Operating Income decrease
Total Revenue 7254221638.01 100% 5303165502.25 100% 36.79%
By Industry
Pharmaceutical 6758771833.00 93.17% 36.71%
4943797504.30 93.22%
Chemicals
Others 495449805.01 6.83% 359367997.95 6.78% 37.87%
By Product
Nutritional 5452151744.71 75.16% 3720891315.66 70.16% 46.53%
Products
Aroma Chemicals 1126980745.24 15.53% 1052666046.25 19.85% 7.06%
New Polymer 418367560.13 5.77% 324009632.99 6.11% 29.12%
Materials
Others 256721587.93 3.54% 205598507.35 3.88% 24.87%
By Region
Domestic Sales 3295559229.13 45.43% 2056800286.67 38.78% 60.23%
Export Sales 3958662408.88 54.57% 3246365215.58 61.22% 21.94%
Industry product or region accounting for more than 10% of the Company’s operating revenue or profit
√ Applicable □ Not applicable
Unit: RMB
Increase or
Decrease of Increase and Increase or
Operating Decrease of Decrease of
Gross Revenue Operating Gross Margin
Item Operating Income Operating Cost
Margin Compared with Cost over the Compared with
the Same Same Period the Same Period
Period of Last of Last Year of Last Year
Year
By Industry
Pharmaceutical Decrease 11.08
6758771833.00 3390108464.20 49.84% 36.71% 75.45%
Chemicals percentage point
By Product
Nutritional Decrease 11.34
5452151744.71 2613224909.87 52.07% 46.53% 91.96%
Products percentage point
Decrease 12.25
Aroma Chemicals 1126980745.24 625409670.40 44.51% 7.06% 37.41%
percentage point
By Region
Decrease 14.29
Domestic Sales 3295559229.13 1898486520.10 42.39% 60.23% 111.80%
percentage point
Decrease 8.48
Export Sales 3958662408.88 1856838524.92 53.09% 21.94% 48.85%
percentage point
When the statistical caliber of the Company’s main business data is adjusted in the reporting period the Company’s main business
data in the most recent period should be subject to the one after the statistical caliber adjusted at the end of the reporting period.□ Applicable √ Not applicable
Reasons for over 30% changes in related data on year-on-year basis
√ Applicable □ Not applicable
① By Industry: Compared with the corresponding period of last year the operating revenue of pharmaceutical chemical industry
is increased by 36.71% the operating cost is increased by 75.45%，mainly due to the increase of the sales of vitamin E andDL-methionine.② By Product: Compared with the corresponding period of last year the operating revenue of nutrition is increased by 46.53%
the operating cost is increased by 91.96%，mainly due to the increase of the sales of vitamin E and DL-methionine. And mainly dueto the increase of the sales the operating cost of aroma chemicals is increased by 37.41% over the corresponding period of last year.③ By Region: Mainly due to the sales increase of nutrition series products the operating revenue in domestic business and the
operating cost in domestic and foreign business are increased by more than 30%.IV. Non-main Business Analysis
□ Applicable √ Not applicable
V. Analysis of Assets and Liabilities
1. Significant changes in assets composition
Unit: RMB
At the End of the Current
At the End of the Previous Year
Reporting Period
Proportion
Proporti Statement on Significant
Item Proportion Increase and
on to Changes
Amount to Total Amount Decrease
Total
Assets
Assets
Increase
Increase in net cash flow
Cash and Bank 3.11
6412612895.26 19.06% 4927657236.24 15.95% generated by operating
Balances percentage
activities
point
Increase
Accounts 1.19 Increase in accordance with
2502876087.12 7.44% 1930930930.01 6.25%
Receivable percentage operating income growth
point
Increase
0.38
Inventories 3522689642.11 10.47% 3117042558.78 10.09% No significant change
percentage
point
Decrease
4.16
Fixed Assets 13752889539.13 40.87% 13914151215.54 45.03% No significant change
percentage
point
Decrease
Long-term
0.04
Equity 358710928.96 1.07% 343378891.18 1.11% No significant change
percentage
Investment
point
Increase Mainly due to the increase of
2.53 the investment in Shandong
Construction in
2295793123.43 6.82% 1325545420.56 4.29% percentage Industrial Park Project TMB
progress
point and Shangyu Industrial Park
Project PPS
Increase
Right-of-use 5015022.59 0.01% 0 0.00% Impact of the implementation of
0.01
Assets percentage the new lease standard in 2021
point
Decrease
Short-term 0.52
2398007852.59 7.13% 2363525192.53 7.65% No significant change
Borrowings percentage
point
Decrease
Contract 0.05
44962287.54 0.13% 56302537.11 0.18% No significant change
Liabilities percentage
point
Increase
Long-term 3.83
5794842788.03 17.22% 4136875354.33 13.39% increase in loans
Borrowings percentage
point
Increase
Lease 0.02 Impact of the implementation of
5398990.60 0.02% 0 0.00%
Liabilities percentage the new lease standard in 2021
point
2. Major overseas assets
√ Applicable □ Not applicable
The
Control Proportion of Whether there
Asset Operation Measures to Overseas is a Significant
Causes Asset Size Location Earnings
Specifics Mode Safeguard Asset Assets to the Impairment
Security Company’s Risk
Net Assets
Appoint
directors and
hire accounting
NHU Lunebur
Establish Trading firms to audit
EUROPE 824800061.59 g 15167263.78 0.61% No
ment enterprises the annual
GmbH Germany
financial report
to ensure the
safety of assets.Appoint
NHU directors and
Lunebur
Performance Establish Trading hire accounting
25054953.10 g 1556597.70 0.05% No
Materials ment enterprises firms to audit
Germany
GmbH the annual
financial report
to ensure the
safety of assets.Subsidiari
es Appoint
acquired directors and
The
through hire accounting
Lunebur transportation
Bardoterminal business firms to audit
14086901.27 g and 1838318.55 0.06% No
GmbH combinati the annual
Germany warehousing
ons not financial report
sector
under to ensure the
common safety of assets.control
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Changes in Cumulat
Impairm
At the Fair Value ive Fair
ent Loss Purchase Amount Sales Amount of
Beginning of Gains and Value Other At the End of the
Item of the of the Reporting the Reporting
the Reporting Losses in the Changes Variations Reporting Period
Reportin Period Period
Period Current in
g Period
Period Equity
Financial
Assets
1. Trading
Financial
Assets
(excluding 850000000.00 1320000000.00 850000000.00 1320000000.00
derivative
financial
assets)
2.Derivative
Financial 2227964.70 4198235.42 6426200.12
Assets
Financial
Assets 852227964.70 4198235.42 1320000000.00 850000000.00 1326426200.12
Subtotal
Total 852227964.70 4198235.42 1320000000.00 850000000.00 1326426200.12
Are there any significant changes in the measurement attributes of the company's main assets during the reporting period?
□ Yes √ No
4. Restrictions on asset rights as of the end of the reporting period
(1) The right of use of RMB 230449397.69 various cash deposits in monetary fund is restricted due to pledge.
(2) The right of use of RMB8890529.21 receivables for financing is restricted due to pledge for issuing bank acceptance bill.
(3) The right of use of RMB431546440.19 notes receivable is restricted due to being pledged for issuing bank acceptance bill.
(4) The right of use of RMB 86062988.84 fixed assets is restricted due to being mortgaged to the bank for Loan.
(5) The right of use of RMB10074981.26 intangible assets is restricted due to being mortgaged to the bank for Loan.
VI. Investment analysis
1. Overview
√ Applicable □ Not applicable
Investment In The Reporting Period Investment Over The Corresponding
Rate Of Change
(RMB) Period Of Last Year(RMB)
1118444545.53 710039301.37 57.52%
2. Significant equity investments acquired during the reporting period
□ Applicable √ Not applicable
3. Major non-equity investments underway during the reporting period
□ Applicable √ Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable √ Not applicable
No such case as securities investment during the reporting period.(2) Derivatives investment
√ Applicable □ Not applicable
Unit: ten thousand RMB
Proportion of
Whether Types of Amount Investment
Relation Investment Amount Sold Amount of Investment Actual Profit
it is a Derivative Initial Amount Purchased Amount in the
Counterpart with Starting Termination Amount at the during the Provision for Amount at the and Loss During
Related s of Derivatives during the Company’s net
y Related Date Date Beginning of the Reporting Impairment End of the the Reporting
Transacti Investmen Investment Reporting Assets at End of
Party Period Period Accrued (if any) Period Period
on t Period the Reporting
Period
Structured
Non-related July 20 February 24
Bank No Forward 9753.70 2459.60 2459.60 9.48
party 2020 2021
Contracts
Decemb
Non-related Forward March 25
Bank No 4802.49 er 15 4802.49 4802.49 81.84
party Contracts 20212020
Structured Decemb
Non-related March 25
Bank No Forward 19803.00 er 22 19803.00 19803.00 -46.41
party 2021
Contracts 2020
Structured Decemb
Non-related February 22
Bank No Forward 19686.44 er 30 13116.48 13116.48
party 2021
Contracts 2020
Structured Decemb
Non-related January 25
Bank No Forward 15744.40 er 30 10487.20 10487.20
party 2021
Contracts 2020
Bank Non-related No Structured 9840.25 Decemb January 25 6554.50 6554.50
party Forward er 30 2021
Contracts 2020
Structured
Non-related January January 19
Bank No Forward 39361.13 39361.13 39361.13 9.93
party 6 2021 2021
Contracts
Structured
Non-related February February 18
Bank No Forward 9251.42 9251.42 9251.42 2.76
party 9 2021 2021
Contracts
Structured
Non-related January February 22
Bank No Forward 3186.36 3186.36 3186.36 -5.69
party 8 2021 2021
Contracts
Structured
Non-related January March 26
Bank No Forward 41085.00 41085.00 41085.00 111.66
party 8 2021 2021
Contracts
Non-related Forward January January 25
Bank No 12923.70 12923.70 12923.70 -157.9
party Contracts 13 2021 2021
Non-related Forward January March 26
Bank No 8768.32 8768.32 8768.32 10.58
party Contracts 13 2021 2021
Non-related Forward January January 29
Bank No 7117.00 7117.00 7117.00 -77.88
party Contracts 14 2021 2021
Structured
Non-related January March 25
Bank No Forward 32624.00 32624.00 32624.00 143.27
party 28 2021 2021
Contracts
Structured
Non-related January May 25
Bank No Forward 25468.00 25468.00 25468.00 138.41
party 28 2021 2021
Contracts
Structured
Non-related February March 26
Bank No Forward 32516.00 32516.00 32516.00 93.00
party 5 2021 2021
Contracts
Structured
Non-related February March 15
Bank No Forward 19485.00 19485.00 19485.00 22.70
party 19 2021 2021
Contracts
Non-related Forward February April 26
Bank No 12625.60 12625.60 12625.60 207.75
party Contracts 23 2021 2021
Non-related Forward February May 17
Bank No 38986.40 38986.40 38986.40 -58.70
party Contracts 26 2021 2021
Non-related Forward March 8 May 25
Bank No 13088.15 13088.15 13088.15 88.86
party Contracts 2021 2021
Non-related Forward April 1 April 26
Bank No 3293.25 3293.25 3293.25 13.87
party Contracts 2021 2021
Non-related Forward April 1 April 26
Bank No 3293.80 3293.80 3293.80 14.41
party Contracts 2021 2021
Non-related Forward April 7 August 25
Bank No 17233.23 17233.23 10910.75 6322.48 0.31% 263.29
party Contracts 2021 2021
Non-related Forward April 9 April 26
Bank No 3117.63 3117.63 3117.63 41.43
party Contracts 2021 2021
Non-related Forward April 19 June 25
Bank No 9431.22 9431.22 9431.22 94.72
party Contracts 2021 2021
Non-related Forward April 30 May 25
Bank No 12948.00 12948.00 12948.00 -31.00
party Contracts 2021 2021
Non-related Structured April 30 July 26
Bank No 16250.20 16250.20 9711.20 6539.00 0.32% 263.97
party Forward 2021 2021
Contracts
Non-related Forward May 13 July 26
Bank No 19397.10 19397.10 12923.60 6473.50 0.32% 229.07
party Contracts 2021 2021
Non-related Forward May 18 November
Bank No 15812.50 15812.50 7854.50 7958.00 0.39% 277.65
party Contracts 2021 22 2021
Non-related Forward June 4 June 25
Bank No 12815.00 12815.00 12815.00 100.60
party Contracts 2021 2021
Non-related Forward June 7 July 26
Bank No 19270.25 19270.25 12802.00 6468.25 0.32% 99.98
party Contracts 2021 2021
Non-related Forward June 15 June 25
Bank No 1553.69 1553.69 1553.69 -0.71
party Contracts 2021 2021
Non-related Forward June 15 July 26
Bank No 5448.24 5448.24 5448.24 0.27% 72.51
party Contracts 2021 2021
Non-related Forward June 17 June 25
Bank No 19290.90 19290.90 19290.90 223.34
party Contracts 2021 2021
Non-related Forward June 22 June 25
Bank No 4527.60 4527.60 4527.60 77.56
party Contracts 2021 2021
Non-related Forward June 30 August 25
Bank No 6175.40 6175.40 6175.40 0.31% 15.75
party Contracts 2021 2021
Total 545974.37 -- -- 57223.27 466344.09 478182.49 45384.87 2.24% 2330.10
Sources of Funds for Derivatives Investment Self-owned funds
Litigation Involved (if applicable) N/A
Disclosure Date of Board of Directors’
Announcement on the Approval of Derivatives March 31 2021
Investment (if any)
Disclosure Date of Shareholder Meeting’s
Announcement on the Approval of Derivatives Not applicable.Investment (if any)
Risk Analysis and Description of Control
Measures for Derivatives Positions during the
To prevent exchange rate risk the Company and its subsidiaries have carried out derivative business and the Company and its subsidiaries strictly implement the
Reporting Period (including but not limited to
Rules and Regulations for the Administration of Foreign Exchange Hedging Business
market risk liquidity risk credit risk
operational risk legal risk etc.)
Changes in Market Prices or Product Fair Value
of Invested Derivatives during the Reporting
Period and the Analysis of the Fair Value of The floating income of the fair value of the invested derivatives was RMB 9.3699 million at the beginning of the reporting period and it was RMB23.67 million at
Derivatives Should Disclose the Specific the end of the reporting period.Methods Used and the Setting of Related
Assumptions and Parameters.Explanation of Whether the Company’s
derivatives Accounting Policies and Specific
Accounting Principles have Changed Not applicable.Significantly during the Reporting Period
Compared with the Previous Reporting Period
The Company has formulated the Rules and Regulations for the Administration of Foreign Exchange Hedging Business and has established specific operating
procedures for conducting foreign exchange hedging business by strengthening internal control implementing risk prevention measures and improving the
Independent directors’ special opinions on the
management level. The Company has analyzed the feasibility of its foreign exchange hedging business. Overall it is feasible to carry out foreign exchange
Company's derivatives investment and risk
hedging which can effectively reduce the risk of exchange rate fluctuations and help stabilize the profit level. The content and review procedures of the matter are
control
in compliance with the relevant laws regulations regulatory documents and the Articles of Association and do not constitute any damage to the interests of the
Company and its other shareholders. We unanimously agree with the Company to conduct foreign exchange hedging business.VII. Major Assets and Equity Sales
1. Major assets sales
□ Applicable √ Not applicable
No major assets sales in the reporting period of the Company
2. Major equity sales
□ Applicable √ Not applicable
VIII. Analysis of Major Holding and Equity Participation Companies
√ Applicable □ Not applicable
Major subsidiaries and equity participation companies with a net profit impact of over 10%.Unit: RMB
Company Company Registered Total Net Operating Operating
Main businesses Net Profit
Name Type Capital Assets Assets Income Profit
Production and
Shangyu Subsidiary RMB 50 4403903 308208 1107164 59349265 51465951
sales of feed
Bio-Chem Company million 838.82 6702.23 203.39 6.61 9.60
additives
Production and
Shandong Subsidiary RMB 586 2828418 217040 1305532 48584771 42622674
sales of Aroma
Pharmaceutical Company million 701.22 4035.10 064.37 1.12 2.46
chemicals
Production and
Shandong Subsidiary RMB 830 5156411 337845 1176845 34596997 30417790
sales of
Amino-acids Company million 491.45 3465.25 216.88 9.63 3.08
methionine
Production and
Shandong Subsidiary RMB 500 3543688 148149 1367424 61695767 53225132
sales of feed
Vitamins Company million 342.06 5520.05 696.46 5.58 3.27
additives
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production
Company Name
subsidiaries during the reporting period management and performance
Zhejiang NHU Nylon Materials Co.Newly established N/A
Ltd.IX. The structured entity controlled by the Company
□ Applicable √ Not applicable
X. Risks and Countermeasures
1. Macroeconomic Risks
Influenced by the global Covid-19 pandemic the macroeconomic direction becomes more uncertain. NHU will pay close
attention to the evolution of the Covid-19 pandemic and its influence on the macroeconomy and this industry actively respond to the
pandemic and promote the stable development of NHU.2. Industry and Market Competition Risk
The Company faces competition in its own industry or cross-industry entrants in the domestic and international markets and the
emergence of new technologies and new processes will not only impact the market but also challenge the market position of the
Company in the industry. In the future the Company will continuously lift its capabilities of research development and innovation
improve its processes enhance cost control and improve the core competitiveness.3. Risk in Raw Material Price Fluctuation
In view of the scale compression of industries with excess production capacity through the national supply-side reform some
small and medium-sized upstream suppliers will face high operating pressure which will cause reduction of raw material
procurement channels and fluctuation of the raw material prices. Due to a high proportion of the raw material cost in the total cost of
the Company the fluctuation of the raw material prices will impact the business performance of the Company. By establishing
strategic partnership with suppliers the Company takes such measures as strategic procurement expansion of procurement channels
and reasonable control of the inventory according to the market conditions trying to guarantee the material supply and control the
cost increase at a reasonable level to the maximum extent.4. Risk in Exchange Rate Fluctuation
Considering that the sales revenue of the Company in the foreign markets accounts for a high proportion the sales revenue and
profitability of the Company will be influenced by the trade barriers and exchange rate fluctuation caused by trade friction between
China and US and instability of the international economic situation. In the future the Company will take targeted measures to
respond to the international market changes stabilize the international market position and actively expand new economic growth
points to keep stable growth of the Company’s business.5. Environment Protection Policy Risk
The Company is a player in the chemical and pharmaceutical manufacturing industry which will face stricter supervision in
respect of environmental protection along with rising awareness of social and environmental protection. The Company adopts the
idea of green development implements the environmental protection management in the full life cycle and enhances reduction
recycling and harmless treatment of the three wastes from reduction at the source process control and treatment at the end. In terms
of process the Company enhances control of the process source carries out environmental protection assessment from process
development and plans the environmental protection line to guarantee treatment of three wastes covering the whole chain and process.The Company takes ISO14001 as the management framework during production establishes the systematic management system and
carries out environmental protection management covering all the employees times and spaces from the production source to the
center of three wastes. In terms of hardware the Company pays attention to environmental protection investment equips multiples
sets of waste water waste gas and solid waste treatment devices and ensures effective running of various environmental protection
facilities. The Company sees environmental protection as a responsibility rather than an obligation continuously exploring the road
of sustainable development that is green and low-carbon.Section IV Corporate Governance
I. Relevant Situation of the Annual General Meeting of Shareholders and the Extraordinary
General Meeting of Shareholders Held in the Reporting Period
1. The shareholders’ meetings for this reporting period
Percentage
Conference Conference
of Investors Date of Conference Date of Disclosure Conference Resolution
Session Type
Involved
It reviewed and approved 10
proposals including the
2020 Annual“2020 Annual Report of theGeneral Annual General54.00% April 21 2021 April 22 2021 Board of Directors” as
Meeting of Meeting
described in Announcement
Shareholders
No. 2021-019 on
www.cninfo.com.cn
2. Convening of the extraordinary shareholders’ general meetings upon request of the preferred
stockholders whose voting rights are restored
□ Applicable √ Not applicable
II. Changes of Directors Supervisors and Senior Executives
□ Applicable √ Not applicable
There were no changes in the directors supervisors and senior executives of the Company during the reporting period which can be
found in the 2020 Annual Report.III. Profit Distribution and Capital Reserve Converted to Share Capital in the Reporting
Period
□ Applicable √ Not applicable
The Company will not distribute cash dividend distribute bonus shares or distribute shares from capital reserve in the reporting
period.IV. Implementation of the Company’s Equity Incentive Plan Employee Stock Ownership
Plan or Other Employee Incentive Measures
√ Applicable □ Not applicable
The third employee stock ownership plan of the Company was reviewed and approved by the second extraordinary shareholders’
meeting of 2020 held on November 11 2020 the current employee stock ownership plan is managed by the Company itself and
the Company’s shares are acquired and held by stock purchase through secondary market with total funds not exceeding RMB 306
million and a duration of not more than 24 months. As of February 26 2021 the Company has completed the stock purchase through
the secondary market bidding transaction and purchased 8442935 shares of the Company accounting for 0.39% of the total share
capital of the Company with a transaction amount of RMB 303710918.74 and an average transaction price of approximately RMB35.97 per share with a lock-up period of 12 months from February 27 2021. For details please refer to the “Announcement on theCompletion of Stock Purchase under the Third Employee Stock Purchase Plan” (2021-004) published on http://www.cninfo.com.cn .The 2020 Annual General Meeting of Shareholders reviewed and approved the “2020 Profit Distribution Proposal” agreeing to
distribute a cash dividend of RMB 7 (including tax) for every 10 shares to all shareholders based on the total share capital of
2148662300 shares at that time and to transfer 2 shares for every 10 shares to all shareholders by capital reserve. On May 19 2021
the Company implemented the 2020 annual equity distribution. After the transfer the shares held by the third employee stock
ownership plan changed from 8442935 shares to 10131522 shares accounting for the same proportion of the Company’s total
share capital. On June 9 2021 the second holders’ meeting of the third employee stock ownership plan elected Mr Qiu Jinzhuo as a
member of the Management Committee of the third employee stock ownership plan and his term of office coincides with theduration of the third employee stock ownership plan. For details please refer to the “Announcement on Adjusting the Members of theManagement Committee of the Third Employee Stock Ownership Plan” (2021-022) published on http://www.cninfo.com.cn .Section V Environmental and Social Responsibilities
I. Major Environmental Issues
Whether the listed company and its subsidiaries belong to the key pollutant discharging units announced by the environmental
protection department
√ Yes □ No
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Not
Emission
NHU VOC 1 Plant area 10mg/m3 100mg/m3 0.61t 54.95t/a exceeding the
filter
standard
Not
Emission
NHU SO2 3 Plant area 3mg/m3 50mg/m3 0.04t 8.612t/a exceeding the
filter
standard
Not
Emission
NHU NOX 3 Plant area 38mg/m3 150mg/m3 0.39t 28t/a exceeding the
filter
standard
NHU Particulate Emission 3 Plant area 5mg/m3 20mg/m3 0.04t 2.11t/a Not
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
matters filter exceeding the
standard
Not
Collection
NHU COD 1 Plant area 174mg/L 500mg/L 9.34t 189.5t/a exceeding the
pipe
standard
Not
Ammonia Collection
NHU 1 Plant area 1.7mg/L 35mg/L 0.19t 13.28t/a exceeding the
nitrogen pipe
standard
Not
Total Collection
NHU 1 Plant area 19mg/L 120mg/L 1.85t 45.52t/a exceeding the
nitrogen pipe
standard
Not
Shangyu Emission
NOX 1 Plant area 47mg/m3 240mg/m3 6.775t 12.96t/a exceeding the
Bio-Chem filter
standard
Not
Shangyu Emission
VOC 3 Plant area 5mg/m3 150mg/m3 12.624t 271.182t/a exceeding the
Bio-Chem filter
standard
Not
Shangyu Collection
COD 1 Plant area 310mg/L 500mg/L 149.862t 447.4t/a exceeding the
Bio-Chem pipe
standard
Not
Shangyu Ammonia Collection
1 Plant area 22mg/L 35mg/L 10.927t 31.318t/a exceeding the
Bio-Chem nitrogen pipe
standard
Not
Shangyu Total Collection
1 Plant area 32mg/L 70mg/L 15.184t 62.637t/a exceeding the
Bio-Chem nitrogen pipe
standard
Zhejiang Not
Particulate Emission
Pharmaceutica 1 Plant area 3mg/m3 15mg/m3 0.0038t 0.304t/a exceeding the
matters filter
l standard
Zhejiang Not
Particulate Emission
Pharmaceutica 1 Plant area 3mg/m3 65mg/m3 0.46t 8.42t/a exceeding the
matters filter
l standard
Zhejiang Not
Particulate Emission 2 Plant area 2.37mg/m3 30mg/m3 0.915t 77.597t/a
Pharmaceutica exceeding the
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
l matters filter standard
Zhejiang Not
Emission
Pharmaceutica SO2 2 Plant area 7mg/m3 200mg/m3 1.089t 129.40t/a exceeding the
filter
l standard
Zhejiang Not
Emission
Pharmaceutica NOX 2 Plant area 22mg/m3 200mg/m3 3.882t 74.49t/a exceeding the
filter
l standard
Zhejiang Not
Emission
Pharmaceutica NOX 1 Plant area 60mg/m3 500mg/m3 11.811t 28.08t/a exceeding the
filter
l standard
Zhejiang Not
Emission
Pharmaceutica VOC 2 Plant area 10.57mg/m3 150mg/m3 3.753t 167.91t/a exceeding the
filter
l standard
Zhejiang Not
Collection
Pharmaceutica COD 1 Plant area 310mg/L 500mg/L 98.058t 292.37t/a exceeding the
pipe
l standard
Zhejiang Not
Ammonia Collection
Pharmaceutica 1 Plant area 22mg/L 35mg/L 7.15t 20.467t/a exceeding the
nitrogen pipe
l standard
Zhejiang Not
Total Collection
Pharmaceutica 1 Plant area 32mg/L 70mg/L 9.935t 40.93t/a exceeding the
nitrogen pipe
l standard
Zhejiang Not
Particulate Emission
Special 2 Plant area 5mg/m3 30mg/m3 0.515t 18.61t/a exceeding the
matters filter
Materials standard
Zhejiang Not
Emission
Special SO2 2 Plant area 14mg/m3 200mg/m3 1.182t 89.7t/a exceeding the
filter
Materials standard
Zhejiang Not
Emission
Special NOX 2 Plant area 88mg/m3 200mg/m3 8.127t 111.04t/a exceeding the
filter
Materials standard
Zhejiang Emission Not
VOC 1 Plant area 10mg/m3 60mg/m3 0.752t 69.72t/a
Special filter exceeding the
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Materials standard
Zhejiang Not
Collection
Special COD 1 Plant area 310mg/L 500mg/L 59.517t 180.15t/a exceeding the
pipe
Materials standard
Zhejiang Not
Ammonia Collection
Special 1 Plant area 22mg/L 35mg/L 4.307t 12.611t/a exceeding the
nitrogen pipe
Materials standard
Zhejiang Not
Total Collection
Special 1 Plant area 32mg/L 70mg/L 6.046t 25.221t/a exceeding the
nitrogen pipe
Materials standard
Shandong Not
Particulate Emission
Pharmaceutica 5 Plant area 1.35mg/m3 10mg/m3 0.63t 5.707t/a exceeding the
matters filter
l standard
Shandong Not
Emission
Pharmaceutica SO2 4 Plant area 0.113mg/m3 50mg/m3 0.7956t 4.046t/a exceeding the
filter
l standard
Shandong Not
Emission
Pharmaceutica NOX 5 Plant area 14.8mg/m3 100mg/m3 5.149t 77.328t/a exceeding the
filter
l standard
Shandong Not
Emission
Pharmaceutica VOC 3 Plant area 20mg/m3 60mg/m3 2.12t 27.924t/a exceeding the
filter
l standard
Shandong Not
Collection
Pharmaceutica COD 1 Plant area 639mg/L 1000mg/L 136t 547t/a exceeding the
pipe
l standard
Shandong Not
Ammonia Collection
Pharmaceutica 1 Plant area 49.4mg/L 100mg/L 4.39t 54.7t/a exceeding the
nitrogen pipe
l standard
Shandong Not
Total Collection
Pharmaceutica 1 Plant area 54.8mg/L 120mg/L 11.4t 65.64t/a exceeding the
nitrogen pipe
l standard
Shandong
Particulate Emission Not
NHU 1 Plant area 0.325mg/m3 5mg/m3 0.429t 10.51t/a
matters filter exceeding the
Thermoelectri
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
c Branch standard
Company
Shandong
NHU Not
Emission
Thermoelectri SO2 1 Plant area 5.34mg/m3 35mg/m3 6.51t 73.61t/a exceeding the
filter
c Branch standard
Company
Shandong
NHU Not
Emission
Thermoelectri NOX 1 Plant area 19.7mg/m3 50mg/m3 28.2t 105.16t/a exceeding the
filter
c Branch standard
Company
Not
Shandong Emission
SO2 4 Plant area 7.4mg/m3 50mg/m3 5.66t 92.59t/a exceeding the
Amino-acids filter
standard
Not
Shandong Emission
NOX 3 Plant area 26.27mg/m3 100mg/m3 20.81t 230.77t/a exceeding the
Amino-acids filter
standard
Not
Shandong Particulate Emission
5 Plant area 0.56mg/m3 10mg/m3 1.28t 21.19t/a exceeding the
Amino-acids matters filter
standard
Not
Shandong Emission
VOC 1 Plant area 13.4mg/m3 60mg/m3 31.37t 184t/a exceeding the
Amino-acids filter
standard
Not
Shandong Emission
VOC / Plant area / / 31.37t 184t/a exceeding the
Amino-acids filter
standard
Not
Shandong Collection
COD 1 Plant area 482.3mg/L 1000mg/L 111.89t 361.5t/a exceeding the
Amino-acids pipe
standard
Not
Shandong Ammonia Collection
1 Plant area 8.65mg/L 100mg/L 2.02t 36.15t/a exceeding the
Amino-acids nitrogen pipe
standard
Shandong Total Collection 1 Plant area 57.4mg/L 120mg/L 14.36t 43.38t/a Not
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Amino-acids nitrogen pipe exceeding the
standard
Not
Shandong Emission
VOC 4 Plant area 20mg/m3 60mg/m3 15.95t 173.53t/a exceeding the
Vitamins filter
standard
Not
Shandong Emission
VOC / Plant area / / 15.95t 173.53t/a exceeding the
Vitamins filter
standard
Not
Shandong Emission
SO2 2 Plant area 17mg/m3 50mg/m3 3.22t 50.65t/a exceeding the
Vitamins filter
standard
Not
Shandong Emission
NOX 3 Plant area 95mg/m3 100mg/m3 5.9437t 73.66t/a exceeding the
Vitamins filter
standard
Not
Shandong Particulate Emission
4 Plant area 5mg/m3 10mg/m3 0.948t 7.42t/a exceeding the
Vitamins matters filter
standard
Not
Shandong Collection
COD 1 Plant area 400mg/L 2000mg/L 34.59t 1140t/a exceeding the
Vitamins pipe
standard
Not
Shandong Ammonia Collection
1 Plant area 60mg/L 100mg/L 3.32t 57t/a exceeding the
Vitamins nitrogen pipe
standard
Not
Shandong Total Collection
1 Plant area 80mg/L 120mg/L 2.96t 68.4t/a exceeding the
Vitamins nitrogen pipe
standard
Heilongjiang Not
Particulate Emission
Biological 1 Plant area 5.75mg/m3 30mg/m3 5.26t 37.2182t/a exceeding the
matters filter
Technology standard
Heilongjiang Not
Particulate Emission
Biological 1 Plant area 13.55mg/m3 30mg/m3 5.26t 37.2182t/a exceeding the
matters filter
Technology standard
Heilongjiang Not
Particulate Emission 4 Plant area 31.6mg/m3 200mg/m3 5.26t 37.2182t/a
Biological exceeding the
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Technology matters filter standard
Heilongjiang Not
Particulate Emission
Biological 1 Plant area 32.4mg/m3 120mg/m3 5.26t 37.2182t/a exceeding the
matters filter
Technology standard
Heilongjiang Not
Emission
Biological SO2 1 Plant area 22.1mg/m3 200mg/m3 20.70t 208.478t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological SO2 1 Plant area 37.2mg/m3 200mg/m3 20.71t 208.479t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological SO2 4 Plant area 168.6mg/m3 850mg/m3 20.72t 208.480t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological SO2 1 Plant area 75.4mg/m3 550mg/m3 20.73t 208.481t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological NOX 1 Plant area 55.3mg/m3 250mg/m3 14.67t 160.074t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological NOX 1 Plant area 106.3mg/m3 200mg/m3 14.68t 160.075t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological NOX 4 Plant area 51.1mg/m3 240mg/m3 14.69t 160.076t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological NOX 1 Plant area 61.8mg/m3 240mg/m3 14.70t 160.077t/a exceeding the
filter
Technology standard
Heilongjiang Not
Emission
Biological VOC 1 Plant area 35.4mg/m3 150mg/m3 8.62t 32.4t/a exceeding the
filter
Technology standard
Heilongjiang Collection Not
COD 1 Plant area 152.9mg/m3 350mg/L 262.15t /
Biological pipe exceeding the
Name of
main
Number Implemente
Name of pollutants Distribution Total
Emission of Emission d pollutant Total Excess
company or and of emission approved
methods emissio concentration emission emission emissions
subsidiary pollutant outlets emission
n outlets standards
characteristi
cs
Technology standard
Heilongjiang Not
Ammonia Collection
Biological 1 Plant area 4mg/m3 35mg/m3 3.611t / exceeding the
nitrogen pipe
Technology standard
Heilongjiang Not
Total Collection
Biological 1 Plant area 9.6mg/m3 50mg/L 24.42t / exceeding the
nitrogen pipe
Technology standard
Construction and operation of pollution prevention and control facilities
The Company has established the environmental protection concept of green development: 1. Introducing the concept of green
chemistry developing and producing products that are more environment-friendly. 2. Transferring from support-orientation to
responsibility-orientation to conduct source reduction process control and end treatment properly. 3. Pursuing reduction recycling
and harmlessness to create ecological factories and realize the harmonious development of man and nature.Wastewater treatment: The Company has a complete sewage treatment system with a wastewater collection system for
production sewage domestic sewage initial rainwater and accident water to separate the clean water from the waste water and the
rainwater from the waste water. The waste pool is sealed with a cover and all the waste gases are effectively collected and eventually
incinerated effectively reducing the emission of waste gases.Waste gas treatment: The Company adopts the self-developed nitrogen sealing system to effectively reduce the waste gas
emission; it uses different pretreatment technologies according to the composition and nature of different waste gases and it
introduces advanced foreign waste gas treatment devices to strengthen the waste gas treatment capacity. The Company regularly
conducts annual waste gas leak detection and repair (LDAR) to effectively supervise and reduce unorganized waste gases. The
Company actively upgrades coal-fired thermal oil furnaces via the “coal to gas” conversion introduces natural gas boilers carries out
low-NOx transformation and adds SNCR stripping facilities to the terminal to actively carry out NOx treatment. The Company
operates and maintains the facilities of odor evaluation system focuses all monitoring points and monitoring data daily conducts
timely trend analysis tracking feedback on the reasons for exceeding the standard data and basically realizes the early warning
traceability and evaluability of the Company’s odor.Solid waste disposal: The Company has a standardized temporary storage warehouse for hazardous wastes and hazardous waste
incineration devices and it can basically dispose of hazardous waste by itself. The solid wastes entrusted for external treatment aretransferred in strict accordance with the requirements of the “Bill in Five Parts of Management Measures for the Transfer ofHazardous Wastes” and entrusted to qualified units for treatment.Noise prevention and control: The Company chooses low-noise equipment and adopts the noise reduction measures of
foundation damping for the equipment that does not need to be fixed. In addition to taking foundation damping for air compressors
blowers and various pumps the Company also installs additional soundproof covers around the noise sources for sound insulation.Emergency management: The Company installs online waste gas monitors around the plant boundary to monitor the
environment of the plant boundary in real time. It introduces VOC online monitors to monitor the emission tail gas data in real time
and uploads the detection data to the monitoring platform. It adopts waste water one enterprise one pipe online monitoring to monitor
the waste water emission index in real time and upload it to the Environmental Protection Bureau normally. It introduces domestic
first-class elevated flare technology to specifically deal with abnormal waste gas in the production process. It introduces domestic
first-class leak stoppage technology under pressure to reduce the abnormal leakage of pipelines valves flanges and tanks to the
minimum thus reducing the environmental impact caused by a large number of leaks.Environmental impact assessment of construction projects and other administrative permits for environmental
protection
The construction project of the tank area of Zhejiang NHU Construction Material Co. Ltd. has obtained the environmental
assessment filing form from Shangyu Branch of Shaoxing Ecological Environment Bureau (Yuhuan Jianbei [2021] No. 37).Heilongjiang NHU Biotechnology Co. Ltd. has completed the environmental protection inspection and acceptance of the
completion of Heilongjiang Suihua NHU Biofermentation Industrial Park Project (Phase I). It has obtained the approval of the
environmental impact report of Heilongjiang Suihua NHU Biofermentation Industrial Park Project (Phase II) (Suihuan Letter {2020}
No. 231}).Emergency plan for unexpected environmental incidents
Shandong NHU Pharmaceutical Co. Ltd. has formulated the Emergency Plan for Environmental Emergencies of Shandong
NHU Pharmaceutical Co. Ltd. according to the Measures for the Administration of Filing Emergency Plans for Environmental
Emergencies in Enterprises and Institutions (Trial) promulgated by the State and filed it with Binhai Branch of Weifang Ecological
Environment Bureau for record in May 2021.Heilongjiang NHU Biotechnology Co. Ltd. has formulated the Emergency Plan for Environmental Emergencies of
Heilongjiang NHU Biotechnology Co. Ltd. which was filed with Suihua Ecological Environment Bureau for record in April 2021.Emergency plans by other subsidiaries are within the validity period.Environmental self-monitoring program
The Company has strong pollutant discharge monitoring and management abilities and it can timely inform the environmental
protection administrative departments and the public of the monitoring information. The Company has developed a relevant
self-testing program which covers the indicators of organized waste gas unorganized waste gas and groundwater. Meanwhile the
Company has entrusted a third-party testing company to perform regular monitoring.The Company discloses environmental information in strict accordance with requirements at national provincial municipal and
county levels on enterprise environmental information disclosure. It has disclosed its environmental protection information on the
platforms of environmental information management system of key provincial and municipal sewage units.Administrative penalties for environmental offences during the reporting Period
Impact on the production
Name of company or management and The Company’s
Cause for penalty Offence situation Penalty result
subsidiary performance of the listed corrective measures
company
N/A N/A N/A N/A N/A N/A
Other environmental information that should be disclosed
N/A
Other information related to environmental protection
N/A
II. Social Responsibilities
N/A
Section VI Significant Events
I. Commitments made by the Company’s controlling shareholders shareholders related
parties purchasers and purchasing companies have been fulfilled during the reporting period
and those that have not been fulfilled by the end of the reporting period
√ Applicable □ Not applicable
Party making Commitment
Commitments Content Time Term Performance
commitments Type
Equity division
reform N/A N/A N/A N/A N/A
commitments
Commitments
made in the
acquisition
N/A N/A N/A N/A N/A
report or report
on equity
changes
Commitments
made during
N/A N/A N/A N/A N/A
asset
restructuringCommitments on They signed the “Commitment onNHU Holding Group Co.horizontal Not Engaging in Horizontal
Ltd. Zhang Pingyi Shicompetition Competition” and undertook not Strictly
Cheng Yuan Yizhong Hu June 25
connected to engage in business activities Long-term fulfilled the
Baishan Shi Guanqun 2004
transactions and that constitute competition with commitments
Wang Xuewen Cui
occupation of the Company’s business after
Xinrong and Wang Xulin
funds listing.Commitments The directors and senior
made during executives of the Company
initial public undertake to perform their duties
offerings or faithfully and diligently to
Hu Baifan; Hu Baishan;
refinancing safeguard the legitimate rights
Shi Guanqun; Wang Strictly
and interests of the Company and January
Xuewen; Cui Xinrong; Long-term fulfilled the
all shareholders and make the 12 2017
Wang Zhengjiang; Zhou commitments
following commitments in
Guiyang
accordance with the relevant
provisions of the CSRC that the
Company’s measures to fill
immediate returns can be
effectively performed: 1. not to
transfer benefits to other units or
individuals without compensation
or on unfair terms or use other
means to harm the interests of the
Company; 2. to restrain the
directors and senior managers’
position-related consumption; 3.not to use the Company’s assets
to engage in investment or
consumption activities unrelated
to the performance of their duties;
4. to link the remuneration system
formulated by the board of
directors or the remuneration
committee to the implementation
of the Company’s measures for
filling immediate returns; 5. to
link the exercise conditions of the
Company’s equity incentives to
be announced in the future to the
implementation of the Company’s
measures for filling immediate
returns.Not to act beyond the authority to
interfere with the Company’s
operation and management
Strictly
Hu Baifan; NHU Holding activities not to encroach upon January
Long-term fulfilled the
Group Co. Ltd. the Company’s interests and to 12 2017
commitments
effectively fulfill the relevant
measures to fill in the Company’s
returns.Equity incentive
N/A N/A N/A N/A N/A
commitment
Other
commitments to
minority N/A N/A N/A N/A N/A
shareholders of
the Company
Whether the commitment has been fulfilled on time Yes
Where the commitment is overdue the specific reasons for not completing the performance and the following work
Not applicable.plan shall be explained in detail
II. Non-operational capital occupation over listed companies by controlling shareholders and
their related parties
□ Applicable √ Not applicable
During the reporting period there is no non-operational capital occupation over listed companies by controlling shareholders and
their related parties.III. Illegal external guarantees
□ Applicable √ Not applicable
No illegal external guarantees during the reporting period.IV. Appointment and dismissal of accounting firms
Whether the semi-annual report has been audited
□ Yes √ No
The Company’s semi-annual report has not been audited.V. Explanations made by the Board of Directors and the Board of Supervisors on the
“Non-Standard Audit Report” from the accounting firm during the reporting period
□ Applicable √ Not applicable
VI. Statement by the Board of Directors on the “Non-Standard Audit Report” of the previous
year
□ Applicable √ Not applicable
VII. Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such case as bankruptcy and reorganization related event during the reporting period.VIII. Litigation Matters
Significant lawsuits and arbitrations
□ Applicable √ Not applicable
There is no major lawsuit or arbitration during this reporting period.Other litigation matters
√ Applicable □ Not applicable
Basic Whether an Litigation Outcome and impact Enforcement
Amount Date of Disclosure
information on estimated (arbitratio of litigation of litigation
involved Disclosure Index
litigation liability is n) (arbitration) hearings (arbitration)
(arbitration) formed progress judgments
Fujian Haixin
The dispute of Pharmaceutical Co.Fujian Fukang Ltd. was ordered to
Pharmaceutical compensate
Co. Ltd. Fujian ZHEJIANG NHU
Haixin Retrial of COMPANY LTD. Not
Execution
Pharmaceutical 50 million No final for economic losses applicable
completed
Co. Ltd. and Yu appeal of RMB 25 million .Ke infringing on and Fujian Fukang
the trade secret Pharmaceutical Co.of Zhejiang Ltd. and Yu Ke bore
NHU Co. Ltd. joint and several
liability.IX. Penalties and Rectification
√ Applicable □ Not applicable
Types of
Date of Disclosure
Name Type Causes investigation Conclusions (if any)
Disclosure Index
and penalties
An employee surnamed Li of Merit 1. Xihu District People’s Court ofInteractive Co.Ltd. falsified several Hangzhou Municipality issued “(2021) Zhesales contracts and related 0106 Xing Chu Zi No. 200 Criminalsettlement documents between the Judgment” which held that Li a former
company and its customers by employee of Merit Interactive Co.Ltd.forging seals etc. Merit Interactive committed the crime of embezzlement and
Co.Ltd. failed to timely discover was sentenced to fixed-term imprisonment
the falsity of the above contracts of 11 months and a fine of RMB 100000;
and businesses recognized the Filed for Li the defendant was ordered to withdraw
related sales revenues and prepare investigation the stolen money of RMB 257027 and
Independent financial statements accordingly or return it to Merit Interactive Co.Ltd. 2. On
Zhu Jianmin
Director resulting in false recording of its administrative July 26 2021 Merit Interactive Co.Ltd.2019 Third Quarter report 2019 penalties by received the “Prior Notice of AdministrativeAnnual Report 2020 First Quarter CSRC Penalty” issued by Zhejiang Securities
Report 2020 Semi-Annual report Regulatory Bureau which concluded that
and 2020 Third Quarter Report. Merit Interactive Co.Ltd. constituted an
Merit Interactive Co.Ltd. was information disclosure violation and that
suspected of violating laws and Zhu Jianmin the then deputy general
regulations in information manager and chief financial officer who
disclosure and was investigated by was in charge of financial work failed to
CSRC. Zhu Jianmin an ensure the truthfulness accuracy and
independent director of the completeness of the company’s information
Types of
Date of Disclosure
Name Type Causes investigation Conclusions (if any)
Disclosure Index
and penalties
Company was the then deputy disclosure and was the person in charge
general manager and chief financial directly responsible for the information
officer of Merit Interactive Co.Ltd. disclosure violation. Zhu Jianmin was given
a warning and fined RMB 800000.Rectification explanation
√ Applicable □ Not applicableOn February 3 2021 Zhejiang Securities Regulatory Bureau issued the “Decision on the Issuance of Warning Letters to MeritInteractive Co.Ltd. and Related Persons” which concluded that the financial data of operating income total profit and net profit
attributable to shareholders of the listed company disclosed in the 2019 Annual Report and 2020 First Quarter Report Semi-Annual
Report and Third Quarter Report of Merit Interactive Co.Ltd. were not accurate and at the same time there were internal control
irregularities. Zhejiang Securities Regulatory Bureau decided to take the supervisory and management measures of issuing warning
letters to Fang Yi Chairman and General Manager Zhu Jianmin Chief Financial Officer and Li Haochuan Board Secretary
respectively and recorded such letters in the securities and futures market integrity file. The above-mentioned persons were required
to perform their diligence obligations organize the company to improve internal control establish a sound financial and accounting
management system and information disclosure system and strictly implement them effectively safeguard the interests of all
shareholders and submit a written report to Zhejiang Securities Regulatory Bureau before February 18 2021.X. Integrity of the Company Its Controlling Shareholder and Actual Controller
□ Applicable √ Not applicable
XI. Significant Related-party Transactions
1. Related transactions relevant to daily operations
□ Applicable √ Not applicable
No such case as related-party transactions connected with daily operations.2. Related transactions in acquisition or sale of assets or equities
□ Applicable √ Not applicable
No such case as related-party transactions arising from the acquisition or sale of assets or equity.3. Significant related-party transactions arising from joint investments on external parties
□ Applicable √ Not applicable
No such case as connected transactions of joint foreign investment during the reporting period.4. Related-party creditor’s rights and debts
□ Applicable √ Not applicable
No such case as related credits and debts during the reporting period.5. Transactions with related financial companies and financial companies controlled by the Company
□ Applicable √ Not applicable
No deposit loan credit or other financial business between the Company and the related financial company or between the financial
company controlled by the Company and the related parties.6. Other major related transactions
□ Applicable √ Not applicable
No other major related transactions during the reporting period.XII. Significant Contracts and Performance
1. Matters on trusteeship contracting and leasehold
(1) Matters on trusteeship
□ Applicable √ Not applicable
No such case as custody during the reporting period.
(2) Contracting
□ Applicable √ Not applicable
No such case as contracting during the reporting period.
(3) Leasing
□ Applicable √ Not applicable
No lease during the reporting period.2. Significant guarantees
√ Applicable □ Not applicable
Unit: ten thousand RMB
External guarantees from the Company and its subsidiaries (excluding guarantees to the subsidiaries)
Announcemen Gua Guarantee
Guarant Actual Actual Counter
Guarantee t date of Type of rant Term of Due for related
ee occurrence guarantee guarantee
d party disclosure of guarantee y (if guarantee or not parties or
amount date amount (if any)
the guarantee any) not
cap
Total amount of guarantees
Total amount of guarantees approved
0 actually occurred during the 0
during the reporting period (A1)
reporting period (A2)
Total balance of guarantees at
Total amount of guarantees approved at
0 the end of the reporting period 0
the end of the reporting period (A3)
(A4)
The Company’s guarantees to subsidiaries
Announcemen
Gua Guarantee
t date of Guarant Actual Actual Counter
Guarantee Type of rant Term of Due for related
disclosure of ee occurrence guarantee guarantee
d party guarantee y (if guarantee or not parties or
the guarantee amount date amount (if any)
any) not
cap
Joint and
NHU May 14 2019
December 28 May 14 several
(Hong 123000 9690.15 - May 13 Yes No
2018 2019 liability
Kong) 2021
guarantee
Heilongjia
Joint and
ng June 24 2019
December 28 June 24 several
Biological 200000 200000.00 - December No No
2018 2019 liability
Technolog 31 2023
guarantee
y
Joint and November 29
Shandong December 28 November several 2019 -
90000 50000.00 No No
Vitamins 2018 29 2019 liability December 21
guarantee 2023
Joint and February 28
Shangyu December 28 February several 2020 -
17000 17000.00 Yes No
Bio-Chem 2018 28 2020 liability February 27
guarantee 2021
Joint and
NHU June 30 2020
June 30 several
Import & May 21 2020 15000 10000.00 - September No No
2020 liability
Export 13 2021
guarantee
Joint and
Shandong June 22 2020
June 22 several
Pharmace May 21 2020 20000 10000.00 - June 21 Yes No
2020 liability
utical 2021
guarantee
NHU Joint and July 15 2020
May 21 2020 120000 July 15 7686.23 Yes No
(Hong several - June 18
Kong) 2020 liability 2021
guarantee
Joint and
NHU July 30 2020
July 30 several
(Hong May 21 2020 120000 7686.23 - July 14 No No
2020 liability
Kong) 2021
guarantee
Joint and September 7
NHU
September several 2020 -
(Hong May 21 2020 120000 51680.80 No No
7 2020 liability September 7
Kong)
guarantee 2023
Joint and September 22
NHU
September several 2020 -
(Hong May 21 2020 120000 55.49 Yes No
22 2020 liability January 10
Kong)
guarantee 2021
Joint and
NHU September 24
September several
(Hong May 21 2020 120000 5168.08 2020 - May Yes No
24 2020 liability
Kong) 21 2021
guarantee
Joint and
NHU December 31
December several
(Hong May 21 2020 120000 94.06 2020 - May Yes No
31 2020 liability
Kong) 20 2021
guarantee
Joint and March 24
Shandong March 24 several 2021 -
May 21 2020 50000 50000.00 No No
Jinghua 2021 liability December 25
guarantee 2025
Joint and
NHU April 06 2021
April 06 several
(Hong May 21 2020 120000 83.14 - July 30 No No
2021 liability
Kong) 2021
guarantee
Joint and
NHU June 18 2021
June 18 several
(Hong April 21 2021 120000 7686.23 - June 17 No No
2021 liability
Kong) 2022
guarantee
Joint and
NHU June 21 2021
June 21 several
(Hong April 21 2021 120000 65.60 - October 30 No No
2021 liability
Kong) 2021
guarantee
Total amount of guarantees to Total amount of guarantees to
subsidiaries approved during the 455000.00 subsidiaries actually occurred 57834.97
reporting period (B1) during the reporting period (B2)
Total balance of guarantees
Total amount of guarantees to
actually paid to subsidiaries at
subsidiaries approved at the end of the 824450.17 377202.00
the end of the reporting period
reporting period (B3)
(B4)
Subsidiaries' guarantees to subsidiaries
Announcemen
Gua Guarantee
t date of Guarant Actual Actual Counter
Guarantee Type of rant Term of Due for related
disclosure of ee occurrence guarantee guarantee
d party guarantee y (if guarantee or not parties or
the guarantee amount date amount (if any)
any) not
cap
Total amount of guarantees to Total amount of guarantees to
subsidiaries approved during the 0 subsidiaries actually occurred 0
reporting period (C1) during the reporting period (C2)
Total amount of guarantees to Total of actual guarantee
subsidiaries approved at the end of the 0 balance for subsidiaries at the 0
reporting period (C3) end of the reporting period (C4)
Total amount of company guarantees (namely sum of the previous three major items)
Total amount of guarantees approved Total amount of guarantees
during the reporting period 455000.00 actually occurred during the 57834.97
(A1+B1+C1) reporting period (A2+B2+C2)
Total amount of guarantees approved by Total balance of guarantees
the end of the reporting period 824450.17 actually paid at the end of the 377202.00
(A3+B3+C3) reporting period (A4+B4+C4)
Total amount of actual guarantees (A4+B4+C4) as a percentage of the
18.64%
Company's net assets
Including:
Balance of guarantees to the shareholders actual controllers and their
0.00
related parties (D)
Balance of debt guarantees directly or indirectly offered to guaranteed
260000.00
objects with asset-liability ratio exceeding 70% (E)
Amount of the guarantees with the total volume exceeding 50% of the
0.00
net assets (F)
Total amount of the above three guarantees (D+E+F) 260000.00
Notes on unexpired guarantees with guarantee responsibilities
occurred or evidence of possible joint liabilities within the reporting N/A
period (if any)
Notes on providing external guarantees in violation of specified
N/A
procedures (if any)
3. Entrusted financing
√ Applicable □ Not applicable
Unit: ten thousand RMB
Impairment
Overdue amount accrued
Specific type Funding source Entrusted amount Unexpired balance outstanding for overdue
amount financial
management
Bank financial
Raised funds 362000 357000 0 0
products
Total 362000 357000 0 0
Specific matters on high-risk entrusted capital management with a large amount for a single item or with low security poor liquidity
and no capital preservation guarantee.□ Applicable √ Not applicable
Cases of entrusted financing expected to be unable to recover the principal or cases that may result in impairment
□ Applicable √ Not applicable
4. Major contracts in daily operations
□ Applicable √ Not applicable
5. Other significant contracts
□ Applicable √ Not applicable
No such case as other significant contract during the reporting period.XIII. Explanations on Other Significant Matters
□ Applicable √ Not applicable
No other significant matters needed to be explained during the reporting period.XIV. Significant Events of the Company’s Subsidiaries
□ Applicable √ Not applicable
Section VII Changes in Shares and Information about Shareholders
I. Changes in Shares
1. Changes in shares
Unit: share
Before the change Increase or decrease in the change (+ -) After the change
Shares
Shares converted
Item Bonus Percentag
Number Percentage newly from Others Subtotal Number
shares e
issued capital
reserves
I. Shares with
limited sales 27821505 1.29% 5051846 -2562267 2489579 30311084 1.18%
condition
1. Other
domestic 27821505 1.29% 5051846 -2562267 2489579 30311084 1.18%
shares
Shares held by
domestic
27821505 1.29% 5051846 -2562267 2489579 30311084 1.18%
natural
persons
II. Shares
2120840 4246806
without 98.71% 2562267 427242881 2548083676 98.82%
795 14
restrictions
1. RMB 2120840 4246806
98.71% 2562267 427242881 2548083676 98.82%
common stock 795 14
2148662 4297324
III. Total 100.00% 0 429732460 2578394760 100.00%
300 60
Reasons for changes in shares
√ Applicable □ Not applicable
1. On March 15 2021 Cui Xinrong a director of the seventh-session Ye Yueheng Qiu Jinzhuo and Liang Xiaodong supervisors of
the Company had been out of office for six months. The shares held by them were released from restricted sale and the total number
of shares subject to unlimited sale conditions increased by 2562267 shares.2. On May 19 2021 the Company implemented the annual equity distribution plan for 2020 based on the total share capital of
2148662300 shares at that time 2 shares were transferred to all shareholders by capital reserve for every 10 shares totaling
429732460 shares and the total share capital of the Company was 2578394760 shares after the transfer.Approval for changes in shares
√ Applicable □ Not applicable
The 2020 Annual General Meeting of Shareholders reviewed and approved the “2020 Profit Distribution Proposal” agreeing to
distribute a cash dividend of RMB 7 (including tax) for every 10 shares to all shareholders based on the total share capital of
2148662300 shares at that time and to transfer 2 shares for every 10 shares to all shareholders by capital reserve for a total transfer
of 429732460 shares after which the total share capital of the Company was 2578 394760 shares.Transfer for changes in shares
√ Applicable □ Not applicable
This transfer of capital reserve to share capital was completed on May 19 2021.The progress on share repurchase
□ Applicable √ Not applicable
The progress on reduction of re-purchase shares by means of centralized competitive bidding
□ Applicable √ Not applicable
Effects of changes in shares on the basic earnings per share (“EPS”) diluted EPS net assets per share attributable to common
shareholders of the Company and other financial indexes over the last year and last period
□ Applicable √ Not applicable
Other contents that the Company considers necessary or are required by the securities regulatory authorities to disclose
□ Applicable √ Not applicable
2. Changes in restricted stocks
√ Applicable □ Not applicable
Unit: share
Number
of Shares
Number of Number of
with Number of
unlocked increased
Limited shares with
Name of shares with shares with
Sales limited sales Reasons for limited
Sharehold limited sales limited sales Date of unlocking
Condition condition at sales
er condition in condition in
at the the end of
current current
Beginning the period
period period
Of the
Period
Locked-up outstanding
Annual lock-up of 75% of
Hu Baifan 7250936 0 1450187 8701123 shares held by senior
total shareholding
executives
Locked-up outstanding
Hu Annual lock-up of 75% of
7602046 0 1520409 9122455 shares held by senior
Baishan total shareholding
executives
Shi 5457208 0 1091441 6548649 Locked-up outstanding Annual lock-up of 75% of
Guanqun shares held by senior total shareholding
executives
Locked-up outstanding
Wang Annual lock-up of 75% of
4623922 0 924785 5548707 shares held by senior
Xuewen total shareholding
executives
Wang Locked-up outstanding
Annual lock-up of 75% of
Zhengjian 239062 0 47812 286874 shares held by senior
total shareholding
g executives
Locked-up outstanding
Zhou Annual lock-up of 75% of
86064 0 17212 103276 shares held by senior
Guiyang total shareholding
executives
100% lock-up of shares
Cui for 6 months after the
2083962 2083962 0 0 March 15 2021
Xinrong senior executive’s
resignation
100% lock-up of shares
Ye for 6 months after the
191250 191250 0 0 March 15 2021
Yueheng senior executive’s
resignation
100% lock-up of shares
Qiu for 6 months after the
95805 95805 0 0 March 15 2021
Jinzhuo senior executive’s
resignation
100% lock-up of shares
Liang for 6 months after the
191250 191250 0 0 March 15 2021
Xiaodong senior executive’s
resignation2782150
Total 2562267 5051846 30311084 -- --5
II. Issuance and Listing of Securities
□ Applicable √ Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total Number of
Total Number of Preferred Shareholders (If Any) (Refer to
Common
91386 Note 8) Whose Voting Rights Have Been Recovered at the 0
Shareholders at the
End of the Reporting Period
End of the
Reporting Period
Shareholding list of common shareholders with over 5% shares or top ten shareholders
Number Pledges
Number of of Number of markings or
Shareho common Changes in common common freezings
Nature of
Name of lding shares held at the shares shares held
Sharehold
Shareholder Percenta the end of the reporting held with without State
er Num
ge reporting period limited limited sales of
ber
period sales condition Shares
conditions
Domestic
Non-state-
NHU Holding
owned 48.55% 1251903644 208650607 1251903644
Group Co. Ltd.Legal
Person
Hong Kong Overseas
Securities Clearing Legal 2.66% 68647712 11095897 68647712
Co. Ltd. Person
Shanghai
Chongyang
Strategic Investment
Co. Ltd. - Others 1.75% 45060167 10480229 45060167
Chongyang
Strategic Huizhi
Fund
National Social
Others 0.99% 25499920 8499906 25499920
Security Fund 503
National Social
Others 0.94% 24336092 14146993 24336092
Security Fund 112
Overseas
Norges Bank -
Legal 0.57% 14586923 14586923 14586923
Equity Fund
Person
Aegon-Industrial
Fund - Industrial
Bank Co. Ltd. -
Xingquan - Organic
Others 0.55% 14121268 -1559081 14121268
Growth No. 1
Specific
Multi-Client Asset
Management Plan
Kuwait Investment Overseas 0.52% 13525529 13525529 13525529
Authority Legal
Person
Domestic
Hu Baishan Natural 0.47% 12163274 2027212 9122455 3040819
Person
Beijing Yuanfeng
Private Equity Fund
Management
Partnership
(Limited Others 0.46% 11977187 -7012634 11977187
Partnership) -
Yuanfeng Value
Private Equity
Investment Fund
Strategic investors or general
legal entities becoming
Shanghai Chongyang Strategic Investment Co. Ltd. - Chongyang Strategic Huizhi Fund
shareholders of the top 10
became the top 10 shareholders of the Company due to its participation in the 2017
common shares as a result of the
non-public offering of shares.placement of new shares (if any)
(see Note 3)
Among the above shareholders Hu Baishan is a director of NHU Holding Group Co. Ltd.Description of the association
The Company is unaware whether there is any related relationships among other
relationship or concerted action of
shareholders and whether they are persons acting in concert as stipulated in the
above-mentioned shareholders
“Regulations on the Takeover of Listed Companies”.Explanation of the above
shareholders involved in
N/A
proxy/trustee voting rights and
abstention from voting rights
Special note on the existence of
repurchase special accounts
Not applicable.among the top 10 shareholders (if
any) (see Note 11)
Shareholding list of top ten common shareholders without limited sales condition
Number of common shares held without limited sales Type of Shares
Name of Shareholder
condition at the end of the reporting period Type of shares Number
RMB common
NHU Holding Group Co. Ltd. 1251903644 1251903644
stock
Hong Kong Securities Clearing RMB common
68647712 68647712
Co. Ltd. stock
Shanghai Chongyang Strategic
45060167 RMB common 45060167
Investment Co. Ltd. - Chongyang
Strategic Huizhi Fund stock
National Social Security Fund RMB common
25499920 25499920
503 stock
National Social Security Fund RMB common
24336092 24336092
112 stock
RMB common
Norges Bank - Equity Fund 14586923 14586923
stock
Aegon-Industrial Fund -
Industrial Bank Co. Ltd. -
RMB common
Xingquan - Organic Growth No. 1 14121268 14121268
stock
Specific Multi-Client Asset
Management Plan
RMB common
Kuwait Investment Authority 13525529 13525529
stock
Beijing Yuanfeng Private Equity
Fund Management Partnership
RMB common
(Limited Partnership) - Yuanfeng 11977187 11977187
stock
Value Private Equity Investment
Fund
RMB common
Chongyang Group Co. Ltd. 11635159 11635159
stock
Explanation on associated
relationship or persons acting in
concert among top ten common Among the above shareholders Hu Baishan is a director of NHU Holding Group Co. Ltd.shareholders without limited The Company is unaware whether there is any related relationships among other
shares and between top ten shareholders and whether they are persons acting in concert as stipulated in the
common shareholders without “Regulations on the Takeover of Listed Companies”.limited shares and top ten
common shareholders
Shanghai Chongyang Strategic Investment Co. Ltd. - Chongyang Strategic Huizhi Fund
Explanation on Top Ten Common holds 41939806 shares through the customer credit transaction guarantee securities
Shareholders’ Participation in account of Guotai Junan Securities Co. Ltd.; Beijing Yuanfeng Private Equity Fund
Securities Margin Trading (If Management Partnership (Limited Partnership) - Yuanfeng Value Private Equity Investment
Any) (see Note 4) Fund holds 5988587 shares through Huatai Securities Co. Ltd.’ s customer credit
transaction guarantee securities account.Whether the Company’s top ten common shareholders or top ten common shareholders without limited shares agree on any
repurchase transaction in the reporting period
□ Yes √ No
None of the Company’s top ten common shareholders or top ten common shareholders without limited shares agreed on repurchase
in the reporting period.IV. Shareholding Changes of Directors Supervisors and Senior Executives
√ Applicable □ Not applicable
Numb Number of Number
Number of er of Restricted of Number of
Number of
Shares Shares Number of Stocks Restricted Restricted
Shares
Positi Held at the Decre Shares Held Granted at Stocks Stocks
Increased
Name Post on Beginning ased at the End of the Granted Granted at
in the
Status of the in the the Period Beginning During the the End of
Period
Period Period (share) of the Reporting the Period
(share)
(share) (share Period Period (share)
) (share) (share)
Incum
Hu Baifan Chairman 9667915 1933583 11601498 7250936 1450187 8701123
bent
Vice
Hu Incum
Chairman 10136062 2027212 12163274 7602046 1520409 9122455
Baishan bent
President
Director
Vice
President
Shi Chief Incum
7276277 1455255 8731532 5457208 1091441 6548649
Guanqun Financial bent
Officer
Board
Secretary
Director
Wang Incum
Vice 6165230 1233046 7398276 4623922 924785 5548707
Xuewen bent
President
Wang
Incum
Zhengjian Director 318750 63750 382500 239062 47812 286874
bent
g
Zhou Incum
Director 114752 22950 137702 86064 17212 103276
Guiyang bent
Total -- -- 33678986 6735796 0 40414782 25259238 5051846 30311084
V. Change of the Controlling Shareholders and Actual Controller
Change of the controlling shareholders in the reporting period
□ Applicable √ Not applicable
No change has happened to the controlling shareholder in the reporting period of the Company
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
No change has happened to the actual controller in the reporting period
Section VIII Information of Preferred Shares
□ Applicable √ Not applicable
There are no preferred shares in the reporting period.Section IX Situation on Corporate Bonds
□ Applicable √ Not applicable
Section X Financial Report
I. Audit Reports
Has the semi-annual report been audited
□ Yes √ No
The Company’s semi-annual report has not been audited.II. Financial Statements
Units of financial reports in the notes: RMB
1. Consolidated Balance Sheet
Prepared by: Zhejiang NHU Co. Ltd.Unit: RMB
Item June 30 2021 December 31 2020
Current Assets:
Cash and Bank Balances 6412612895.26 4927657236.24
Deposit Reservation for Balance
Loans to Banks and Other
Financial Institutions
Trading Financial Assets 1326426200.12 852227964.70
Derivative Financial Assets
Notes Receivable 460973358.32 332064366.59
Accounts Receivable 2502876087.12 1930930930.01
Receivables Financing 33076624.55 295393346.17
Prepayments 162474668.98 116063557.59
Premium Receivable
Reinsurance Accounts
Receivable
Reinsurance Contract Reserves
Receivable
Other Receivables 210828040.94 178610951.64
Including: interest receivable
Dividends Receivable
Item June 30 2021 December 31 2020
Buying Back the Sale of
Financial Assets
Inventories 3522689642.11 3117042558.78
Contract Assets
Holding for-sale assets
Non-current Assets Due within 1
Year
Other Current Assets 738127909.93 1777569473.96
Subtotal of Current Assets 15370085427.33 13527560385.68
Non-current Assets:
Granting of loans and advances
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables
Long-term Equity Investment 358710928.96 343378891.18
Investment in Other Equity
22998147.55 22998147.55
Instruments
Other Non-current Financial
Assets
Investment Property
Fixed Assets 13752889539.13 13914151215.54
Construction in progress 2295793123.43 1325545420.56
Productive Biological Assets
Oil and gas assets
Right-of-use Assets 5015022.59
Intangible Assets 1398680973.80 1407067129.87
Development Expenditure
Goodwill
Long-term Deferred Expenses 12891187.70 13369412.48
Deferred Income Tax Assets 69216935.10 65143706.00
Other Non-current Assets 361693524.32 277793490.68
Subtotal of Non-current Assets 18277889382.58 17369447413.86
Total Assets 33647974809.91 30897007799.54
Item June 30 2021 December 31 2020
Current Liabilities:
Short-term Borrowings 2398007852.59 2363525192.53
Loan from the Central Bank
Loan from Banks and Other
Financial Institutions
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable 668896544.92 497644517.23
Accounts Payable 1445062033.91 1463728316.04
Received Prepayments
Contract liabilities 44962287.54 56302537.11
Financial Assets Sold for
Repurchase
Deposit Taking and Interbank
Deposit
Receiving from Vicariously
Traded Securities
Receiving from Vicariously Sold
Securities
Payroll payable 231300374.83 322646061.45
Tax Payable 270781522.81 268864472.38
Other Payables 52150619.55 129839228.89
Including: interest payable
Dividends Payable
Service Charge and Commission
Payable
Reinsurance Accounts Payable
Holding for-sale liabilities
Non-current Liabilities Due
1431425253.34 1275888293.32
within 1 Year
Other Current Liabilities 3406847.42 4956463.49
Subtotal of Current Liabilities 6545993336.91 6383395082.44
Non-current Liabilities:
Insurance Contract Reserves
Long-term Borrowings 5794842788.03 4136875354.33
Item June 30 2021 December 31 2020
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Lease Liabilities 5398990.60
Long-term Payables
Long-term payroll payable
Expected Liabilities
Deferred Income 886077681.09 873066181.34
Deferred Income Tax Liabilities 124527426.39 99839731.45
Other Non-current Liabilities
Subtotal of Non-current Liabilities 6810846886.11 5109781267.12
Total Liabilities 13356840223.02 11493176349.56
Shareholders' Equity:
Share Capital 2578394760.00 2148662300.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 4130790096.84 4560522556.84
Less: Treasury Share
Other Comprehensive Incomes 16401379.92 27803829.31
Special Reserves 11642478.63 9550346.85
Surplus Reserves 1074331150.00 1074331150.00
General Risk Reserves
Undistributed Profits 12419820263.45 11515384739.95
Total Shareholders' Equity
20231380128.84 19336254922.95
Attributable to the Parent Company
Minority Shareholders' Equity 59754458.05 67576527.03
Total Shareholders' Equity 20291134586.89 19403831449.98
Total Liabilities and Shareholders'
33647974809.91 30897007799.54
Equity
Legal representative: Hu Baifan Chief accountant: Shi Guanqun Accounting officer: Wang Xiaobi
2. Balance Sheet of the Parent Company
Unit: RMB
Item June 30 2021 December 31 2020
Current Assets:
Cash and Bank Balances 4366382608.74 2790740377.97
Trading Financial Assets 1251547205.78 851949945.63
Derivative Financial Assets
Notes receivable 294973691.43 332064366.59
Accounts receivable 843906718.05 704086691.03
Receivables Financing
Prepayments 5834105.35 1631550.49
Other Receivables 4165535890.92 4247680763.92
Including: interest receivable
Dividends Receivable 186000000.00
Inventories 560496728.67 566205506.19
Contract Assets
Holding for-sale assets
Non-current Assets Due within 1
Year
Other Current Assets 2465340.09 552859738.36
Subtotal of Current Assets 11491142289.03 10047218940.18
Non-current Assets:
Investment in Creditor's Rights
Investment in Other Creditor's
Rights
Long-term Receivables
Long-term Equity Investment 7049501465.71 6372637172.92
Investment in Other Equity
22998147.55 22998147.55
Instruments
Other Non-current Financial
Assets
Investment Property
Fixed Assets 710974206.57 737784631.31
Construction in progress 1326286.13
Productive Biological Assets
Item June 30 2021 December 31 2020
Oil and gas assets
Right-of-use Assets 3218475.32
Intangible Assets 106175960.34 105425506.93
Development Expenditure
Goodwill
Long-term Deferred Expenses 5093130.19 5919401.23
Deferred Income Tax Assets 40798010.31 42345228.44
Other Non-current Assets 3654720.91 7202988.32
Subtotal of Non-current Assets 7943740403.03 7294313076.70
Total Assets 19434882692.06 17341532016.88
Current Liabilities:
Short-term Borrowings 1443710035.22 1243628965.48
Transactional financial liabilities
Derivative Financial Liabilities
Notes Payable 142847121.26 155953161.50
Accounts Payable 208173112.95 100374347.92
Received Prepayments
Contract liabilities 2783099.28 8494783.78
Payroll payable 55801303.13 82688797.50
Tax Payable 51425499.25 33578246.55
Other Payables 17913058.01 15543517.50
Including: interest payable
Dividends Payable
Holding for-sale liabilities
Non-current Liabilities Due
740727989.58 635930890.44
within 1 Year
Other Current Liabilities 361802.91 1104321.89
Subtotal of Current Liabilities 2663743021.59 2277297032.56
Non-current Liabilities:
Long-term Borrowings 3539372165.41 2209521076.40
Bonds Payable
Including: Preferred Stocks
Perpetual Bonds
Item June 30 2021 December 31 2020
Lease Liabilities 3303921.56
Long-term Payables
Long-term payroll payable
Expected Liabilities
Deferred Income 16867691.54 18884041.56
Deferred Income Tax Liabilities 16149009.81 13011703.03
Other Non-current Liabilities
Subtotal of Non-current Liabilities 3575692788.32 2241416820.99
Total Liabilities 6239435809.91 4518713853.55
Shareholders' Equity:
Share Capital 2578394760.00 2148662300.00
Other Equity Instruments
Including: Preferred Stocks
Perpetual Bonds
Capital Reserves 3871120415.45 4300852875.45
Less: Treasury Share
Other Comprehensive Incomes 506954.43 506954.43
Special Reserves
Surplus Reserves 1074331150.00 1074331150.00
Undistributed Profits 5671093602.27 5298464883.45
Total Shareholders' Equity 13195446882.15 12822818163.33
Total Liabilities and Shareholders'
19434882692.06 17341532016.88
Equity
3. Consolidated Income Statement
Unit: RMB
Item 2021 Semi-Annual 2020 Semi-Annual
I. Total Operating Revenue 7254221638.01 5303165502.25
Including: Operating Income 7254221638.01 5303165502.25
Interest Income
Earned Premiums
Service Charge and
Commission Income
Item 2021 Semi-Annual 2020 Semi-Annual
II. Total Operating Cost 4555167761.74 2805793794.44
Including: Operating Cost 3755325045.02 2143809060.49
Interest Expenditures
Service Charge and
Commission Expenses
Surrender Value
Net Claims Paid
The Net Amount
Withdrawn for Insurance Liability
Reserves
Policyholder Dividend
Expense
Reinsurance Cost
Taxes and Surcharges 60794324.08 50570859.70
Sales expenses 55479574.90 132057487.52
Administration expenses 187505914.10 183896476.30
Research and development
351532764.55 219152938.63
expense
Financial expenses 144530139.09 76306971.80
Including: interest
162484715.95 110160929.73
expenses
Interest Income 72107022.92 15204954.21
Add: Other income 74696050.67 45648659.95
Investment Income (Mark "-"
44982466.91 68798092.59
for Loss)
Including: Investment
Income from Affiliates and Joint 15735226.24 5431597.21
Ventures
Profits from recognition
Termination of Financial Assets at
Amortized Cost
Exchange Gains (Mark "-"
for Losses)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in fair 23671758.14 10437317.13
Item 2021 Semi-Annual 2020 Semi-Annual
value (losses marked with "-")
Credit Impairment Losses
-33637204.20 -48988895.82
(Mark "-" for Loss)
Asset Impairment Losses
-6714482.90 -2095132.82
(Mark "-" for Loss)
Asset Disposal Income
1065564.79 84077.01
(Mark "-" for Loss)
III. Operating Profit (Mark "-" for
2803118029.68 2571255825.85
Loss)
Add: Non-operating Revenues 10346441.45 914723.22
Less: Non-operating Expenses 1919029.53 11965365.14
IV. Total Profit (Mark "-" for Total
2811545441.60 2560205183.93
Loss)
Less: Income Tax Expense 394709861.22 345891461.03
V. Net Profit (Mark "-" for Net Loss) 2416835580.38 2214313722.90
(I) Classified by operation continuity
1. Net Profit as a Going Concern
2416835580.38 2214313722.90
(Mark "-" for Net Loss)
2. Net Profit of Discontinued
Operation (Mark "-" for Net Loss)
(II) Classified by the attribution of
ownership
1. Net Profit Attributable to the
2408499133.50 2208930277.20
Parent Company's Owner
2. Minority Shareholders' Profit
8336446.88 5383445.70
and Loss
VI. Net Amount of Other
-14379132.25 11140618.65
Comprehensive Incomes after Tax
Net Amount of Other
Comprehensive Incomes after Tax
-11402449.39 10034354.34
Attributable to the Parent Company's
Owner
(1) Other comprehensive income
that cannot be reclassified as P/L
1. Re-measure the
variation of the defined benefit plan
2. Other comprehensive
Item 2021 Semi-Annual 2020 Semi-Annual
income that cannot be transferred to
P/L under the equity method
3. Changes in the fair
value of investment in other equity
instruments
4. Changes in the fair
value of the credit risk of the enterprise
5. Others
(II) Other comprehensive income
-11402449.39 10034354.34
that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L
under the equity method
2. Changes in the fair
value of investment in other creditor's
rights
3. Financial assets
reclassified into other comprehensive
income
4. Provisions for the credit
impairment of investment in other
creditor's rights
5. Cash flow hedge
reserves
6. Currency translation
-11402449.39 10034354.34
difference
7. Others
Net Amount of Other
Comprehensive Incomes After Tax -2976682.86 1106264.31
Attributable to Minority Shareholders
VII. Total Comprehensive Income 2402456448.13 2225454341.55
Total Comprehensive Income
Attributable to the Parent Company's 2397096684.11 2218964631.54
Owner
Total Comprehensive Income
5359764.02 6489710.01
Attributable to Minority Shareholders
VIII. Earnings per Share:
(I) Basic Earnings per Share 0.93 0.86
Item 2021 Semi-Annual 2020 Semi-Annual
(II) Diluted Earnings per Share 0.93 0.86
In the case of enterprise consolidation under the same control in the current period the net profit realized by the consolidated party
before consolidation was RMB 0.00 and the net profit realized by the consolidated party in the previous period was RMB
-2969102.52.Legal representative: Hu Baifan Chief accountant: Shi Guanqun Accounting officer: Wang Xiaobi
4. Income Statement of the Parent Company
Unit: RMB
Item 2021 Semi-Annual 2020 Semi-Annual
I. Operating Income 2405071741.42 2245024997.07
Less: Operating Cost 1649769660.92 1363865308.22
Taxes and Surcharges 14334032.09 10364905.30
Sales expenses 12902562.24 14314223.18
Administration expenses 68371878.28 62234313.30
Research and development
96647099.84 79611214.13
expense
Financial expenses 29735303.93 74671657.49
Including: interest
86481023.12 84061987.55
expenses
Interest Income 61283871.93 8820555.09
Add: Other income 20317226.28 17932941.46
Investment Income (Mark
1399890573.23 1109369211.83
"-" for Loss)
Including: Investment
Income from Affiliates and Joint 16864292.79 7179396.25
Ventures
Profits from
Derecognition of Financial Assets at
Amortized Cost (Mark "-" for Loss)
Profit of Net Exposure
Hedging (Mark "-" for Loss)
Incomes from changes in
8196887.24 8520857.22
fair value (losses marked with "-")
Credit Impairment Losses
6804182.64 13874426.31
(Mark "-" for Loss)
Asset Impairment Losses
-6120461.67 -1841639.99
(Mark "-" for Loss)
Item 2021 Semi-Annual 2020 Semi-Annual
Asset Disposal Income
-2538880.18 -119089.10
(Mark "-" for Loss)
II. Operating Profit (Mark "-" for
1959860731.66 1787700083.18
Loss)
Add: Non-operating Revenues 4706210.71 17861.51
Less: Non-operating Expenses 1100000.00 3516986.34
III. Total Profit (Mark "-" for Total
1963466942.37 1784200958.35
Loss)
Less: Income Tax Expense 86774613.55 116943623.85
IV. Net Profit (Mark "-" for Net Loss) 1876692328.82 1667257334.50
(I) Net Profit as a Going
Concern (Mark "-" for Net Loss)
(II) Net Profit of Discontinued
1876692328.82 1667257334.50
Operation (Mark "-" for Net Loss)
V. Net Amount of Other
Comprehensive Incomes After Tax
(1) Other comprehensive income
that cannot be reclassified as P/L
1. Re-measure the
variation of the defined benefit plan
2. Other comprehensive
income that cannot be transferred to
P/L under the equity method
3. Changes in the fair
value of investment in other equity
instruments
4. Changes in the fair
value of the credit risk of the
enterprise
5. Others
(II) Other comprehensive
income that will be reclassified as P/L
1. Other comprehensive
income that can be transferred to P/L
under the equity method
2. Changes in the fair
value of investment in other creditor's
Item 2021 Semi-Annual 2020 Semi-Annual
rights
3. Financial assets
reclassified into other comprehensive
income
4. Provisions for the
credit impairment of investment in
other creditor's rights
5. Cash flow hedge
reserves
6. Currency translation
difference
7. Others
VI. Total Comprehensive Income 1876692328.82 1667257334.50
VII. Earnings per Share:
(I) Basic Earnings per Share
(II) Diluted Earnings per Share
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2021 Semi-Annual 2020 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
6823103213.62 4944220993.13
and Provision of Services
Net Increase in Customer's Bank
Deposits and Interbank Deposits
Net Increase in Loan from the
Central Bank
Net Increase in Loan from Other
Financial Institutions
Cash Arising from Receiving
Premiums for the Original Insurance
Contract
Net Amount Arising from
Reinsurance Business
Net Increase in Deposits and
Investments from Policyholders
Cash Arising from Interests
Item 2021 Semi-Annual 2020 Semi-Annual
Service Charges and Commissions
Net Increase in Loan from
Banks and Other Financial
Institutions
Net Increase in Repurchase
Business Funds
Net Amount of Cash Received
from the Vicariously Traded
Securities
Tax Refund 515274673.62 347076026.47
Other Cash Receipts Relating to
166303614.38 60075389.66
Operating Activities
Subtotal of cash inflow from
7504681501.62 5351372409.26
operational activities
Cash Paid for Merchandise and
3731367763.85 2861983420.55
Services
Net Increase in Loans and
Advances to Customers
Net Increase in Deposits with
Central Bank and Other Financial
Institutions
Cash Paid for Original Insurance
Contract Claims
Net increase of funds lent
Cash Paid for Interests Service
Charges and Commissions
Cash Paid for Policy Dividends
Cash Paid to and for Employees 787203766.37 641433701.64
Cash Paid for Taxes and
522757776.92 530604731.09
Surcharges
Other Cash Payments Relating
192194712.71 189790335.87
to Operating Activities
Subtotal of cash outflow from
5233524019.85 4223812189.15
operational activities
Net cash flow generated by operating
2271157481.77 1127560220.11
activities
II. Cash Flow from Investment
Item 2021 Semi-Annual 2020 Semi-Annual
Activities:
Cash Arising from Disposal of
2276538.05
Investments
Cash Arising from Investment
37215654.69 67855515.64
Incomes
Net Cash Arising from Disposal
of Fixed Assets Intangible Assets and 8502600.00 1507223.49
Other Long-term Assets
Net Cash Arising from Disposal
of Subsidiaries and Other Business
Units
Other Cash Receipts Relating to
1800000000.00 3926094561.00
Investing Activities
Subtotal of cash inflow from
1845718254.69 3997733838.18
investment activities
Cash Paid for Purchase and
Construction of Fixed Assets
1308263685.39 1078610102.04
Intangible Assets and Other
Long-term Assets
Cash Paid for Investments
Net Increase in Pledge Loans
Net Cash Paid for Acquisition of
Subsidiaries and Other Business 83904479.79
Units
Other Cash Payments Relating
1520000000.00 1400000000.00
to Investing Activities
Subtotal of cash outflows from
2912168165.18 2478610102.04
investment activities
Net amount of cash flow generated by
-1066449910.49 1519123736.14
investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
Investments
Including: Cash Arising from
Subsidiaries Absorbing Investments
by Minority Shareholders
Cash Arising from Loan 4130981309.28 2537832892.26
Item 2021 Semi-Annual 2020 Semi-Annual
Other Cash Receipts Relating to
73000000.00
Financing Activities
Subtotal of cash inflow from
4130981309.28 2610832892.26
financing activities
Cash Paid for Borrowings
2095709235.89 2580070226.36
Repayment
Cash Paid for Distribution of
Dividends and Profits or Payment of 1680134920.84 670702742.53
Interests
Including: Dividends and Profits
Paid to Minority Shareholders by
Subsidiaries
Other Cash Payments Relating
3363407.69 9457429.96
to Financing Activities
Subtotal of cash outflow from
3779207564.42 3260230398.85
financing activities
Net cash flow generated by financing
351773744.86 -649397506.59
activities
IV. Impact of Fluctuation in
Exchange Rate on Cash and Cash -43624594.66 30471891.80
Equivalents
V. Net Increase in Cash and Cash
1512856721.48 2027758341.46
Equivalents
Add: Cash and Cash Equivalents
4669306776.09 3213557815.42
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
6182163497.57 5241316156.88
End of the Period
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2021 Semi-Annual 2020 Semi-Annual
I. Cash Flow Generated by
Operational Activities:
Cash from Sales of Merchandise
2552072193.45 1924439288.16
and Provision of Services
Tax Refund 48584987.43 51541889.88
Other Cash Receipts Relating to 84964666.40 26370414.41
Item 2021 Semi-Annual 2020 Semi-Annual
Operating Activities
Subtotal of cash inflow from
2685621847.28 2002351592.45
operational activities
Cash Paid for Merchandise and
1633400198.22 2215126164.30
Services
Cash Paid to and for Employees 149783536.93 132411814.25
Cash Paid for Taxes and
78513703.83 106629378.77
Surcharges
Other Cash Payments Relating
55045354.56 38615969.62
to Operating Activities
Subtotal of cash outflow from
1916742793.54 2492783326.94
operational activities
Net cash flow generated by operating
768879053.74 -490431734.49
activities
II. Cash Flow from Investment
Activities:
Cash Arising from Disposal of
2182000.00
Investments
Cash Arising from Investment
1162849287.12 1042241881.89
Incomes
Net Cash Arising from Disposal
of Fixed Assets Intangible Assets and 995678.52
Other Long-term Assets
Net Cash Arising from Disposal
of Subsidiaries and Other Business
Units
Other Cash Receipts Relating to
4883233008.66 6140177549.93
Investing Activities
Subtotal of cash inflow from
6046082295.78 7185597110.34
investment activities
Cash Paid for Purchase and
Construction of Fixed Assets
2560544.11 3013705.76
Intangible Assets and Other
Long-term Assets
Cash Paid for Investments 660000000.00 800000000.00
Net Cash Paid for Acquisition of
Subsidiaries and Other Business
Units
Item 2021 Semi-Annual 2020 Semi-Annual
Other Cash Payments Relating
4589000000.00 3234000000.00
to Investing Activities
Subtotal of cash outflows from
5251560544.11 4037013705.76
investment activities
Net amount of cash flow generated by
794521751.67 3148583404.58
investment activities
III. Cash Flow from Financing
Activities:
Cash Arising from Absorbing
Investments
Cash Arising from Loan 3055061200.00 1581191700.00
Other Cash Receipts Relating to
50000000.00
Financing Activities
Subtotal of cash inflow from
3055061200.00 1631191700.00
financing activities
Cash Paid for Borrowings
1419380427.30 2240012727.27
Repayment
Cash Paid for Distribution of
Dividends and Profits or Payment of 1588570689.93 644955367.68
Interests
Other Cash Payments Relating
2810055.12 3661792.20
to Financing Activities
Subtotal of cash outflow from
3010761172.35 2888629887.15
financing activities
Net cash flow generated by financing
44300027.65 -1257438187.15
activities
IV. Impact of Fluctuation in
Exchange Rate on Cash and Cash -8249728.64 2300417.37
Equivalents
V. Net Increase in Cash and Cash
1599451104.42 1403013900.31
Equivalents
Add: Cash and Cash Equivalents
2593272980.50 1339946642.54
at the Commencement of the Period
VI. Cash and Cash Equivalents at the
4192724084.92 2742960542.85
End of the Period
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
Unit: RMB
2021 Semi-Annual
Shareholders' Equity Attributable to the Parent Company's Owner
Other Equity Instruments Minority Total
Item
Less: Other General
Share Capital Special Surplus Undistribut Shareholders' Shareholders'
Treasur Comprehensive Risk Others Subtotal
Capital Reserves Reserves Reserves ed Profits Equity Equity
Preferred Perpetual Othe y Share Incomes Reserves
Stocks Bonds rs
I. Balance at
214866 456052 9550346. 107433 1151538 19336254 19403831
the End of 27803829.31 67576527.03
2300.00 2556.84 85 1150.00 4739.95 922.95 449.98
Last Year
Add:
Changes in
Accounting
Policies
Correction of
Errors in the
Previous
Period
Consolidated
under the
Same Control
Others
II. Balance at
214866 456052 9550346. 107433 1151538 19336254 19403831
the Start of 27803829.31 67576527.03
2300.00 2556.84 85 1150.00 4739.95 922.95 449.98
This Year
III. Increases
or Decreases
429732 -42973 -11402449.3 2092131. 9044355 895125205 887303136
in This Period -7822068.98
460.00 2460.00 9 78 23.50 .89 .91
(Mark "-" for
Decreases)
(I) Total
-11402449.3 2408499 23970966 24024564
Comprehensi 5359764.02
9 133.50 84.11 48.13
ve Income
(II)
Shareholders'
Contribution
and
Reduction in
Capital
1． Common
stock invested
by the owner
2． Capital
Invested by
Holders of
Other Equity
Instruments
3． Amount
of
Share-based
Payments
Recorded into
Shareholders'
Equity
4． Others
(III) Profit -150406 -15040636 -13181833.0 -15172454
Distribution 3610.00 10.00 0 43.00
1． Appropri
ation of
Surplus
Reserves
2． Appropri
ation of
General Risk
Reserves
3． Distribut
ion to Owners -150406 -15040636 -13181833.0 -15172454
(or 3610.00 10.00 0 43.00
Shareholders)
4． Others
(IV) Internal
Carry-forwar
429732 -42973
d of
460.00 2460.00
Shareholders'
Equity
1． Capital 429732 -42973
Reserves 460.00 2460.00
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-fo
rward
retained
earnings of
the variation
of the defined
benefit plan
5． Other
Carry-forwar
d Retained
Earnings of
the
Comprehensi
ve Income
6. Others
(V) Special 2092131. 2092131.7 2092131.7
Reserves 78 8 8
1． Withdra
5948742. 5948742.7 5948742.7
wal in this
71 1 1
period
2． Used in -385661 -3856610.9 -3856610.9
This Period 0.93 3 3
(VI) Others
IV. Balance at
257839 413079 1164247 107433 1241982 20231380 20291134
the End of 16401379.92 59754458.05
4760.00 0096.84 8.63 1150.00 0263.45 128.84 586.89
This Period
Amount of Previous Period
Unit: RMB
2020 Semi-Annual
Shareholders' Equity Attributable to the Parent Company's Owner
Minority Total
Item Other Equity Instruments Less: Other Special
Share Capital Surplus General Risk Undistribut Shareholders' Shareholders'
Preferred Perpetual Othe Treasur Comprehensive Reserve Others Subtotal
Capital Reserves Reserves Reserves ed Profits Equity Equity
Stocks Bonds rs y Share Incomes s
I. Balance
at the End 214866 470906 53375 951844 91582339 170109133 17063395447.37765885.17 52482111.04
of Last 2300.00 8757.66 05.56 916.62 71.76 36.77 81
Year
Add:
Changes in
Accounting
Policies
Correction
of Errors in
the
Previous
Period
Consolidate
d under the
Same
Control
Others
II. Balance
at the Start 214866 470906 53375 951844 91582339 170109133 17063395447.37765885.17 52482111.04
of This 2300.00 8757.66 05.56 916.62 71.76 36.77 81
Year
III.Increases or
Decreases
29485 11345991 114758200 1154071718.9
in This 10034354.34 6489710.01
27.39 27.20 8.93 4
Period
(Mark "-"
for
Decreases)
(I) Total
Comprehen 22089302 221896463 2225454341.5
10034354.34 6489710.01
sive 77.20 1.54 5
Income
(II)
Shareholder
s'
Contributio
n and
Reduction
in Capital
1． Comm
on stock
invested by
the owner
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of
Share-base
d Payments
Recorded
into
Shareholder
s' Equity
4． Others
(III) Profit -1074331 -107433115 -1074331150.Distribution 150.00 0.00 00
1． Appro
priation of
Surplus
Reserves
2． Appro
priation of
General
Risk
Reserves
3． Distrib
ution to
-1074331 -107433115 -1074331150.Owners (or
150.00 0.00 00
Shareholder
s)
4． Others
(IV)
Internal
Carry-forw
ard of
Shareholder
s' Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the
variation of
the defined
benefit plan
5． Other
Carry-forw
ard
Retained
Earnings of
the
Comprehen
sive
Income
6. Others
(V) Special 29485
2948527.39 2948527.39
Reserves 27.39
1． Withdr60468
awal in this 6046872.68 6046872.68
72.68
period
2． Used in -3098
-3098345.29 -3098345.29
This Period 345.29
(VI) Others
IV. Balance
at the End 214866 470906 82860 951844 10292833 181584953 18217467166.47800239.51 58971821.05
of This 2300.00 8757.66 32.95 916.62 098.96 45.70 75
Period
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
2021 Semi-Annual
Other Equity Instruments
Less: Other
Item Share Preferr Perpet Special Undistributed Total Shareholders'
Capital Reserves Treasury Comprehensive Surplus Reserves Others
Capital ed ual Others Reserves Profits Equity
Share Incomes
Stocks Bonds
I. Balance
at the End 2148662
4300852875.45 506954.43 1074331150.00 5298464883.45 12822818163.33
of Last 300.00
Year
Add:
Changes in
Accounting
Policies
Correction
of Errors in
the
Previous
Period
Others
II. Balance
at the Start 2148662
4300852875.45 506954.43 1074331150.00 5298464883.45 12822818163.33
of This 300.00
Year
III.Increases or
Decreases
in This 4297324
-429732460.00 372628718.82 372628718.82
Period 60.00
(Mark "-"
for
Decreases)
(I) Total
Comprehen
1876692328.82 1876692328.82
sive
Income
(II)
Shareholder
s'
Contributio
n and
Reduction
in Capital
1． Comm
on stock
invested by
the owner
2． Capital
Invested by
Holders of
Other
Equity
Instruments
3． Amount
of
Share-base
d Payments
Recorded
into
Shareholder
s' Equity
4． Others
(III) Profit
-1504063610.00 -1504063610.00
Distribution
1． Appro
priation of
Surplus
Reserves
2． Distrib
ution to
Owners (or -1504063610.00 -1504063610.00
Shareholder
s)
3． Others
(IV)
Internal
Carry-forw 4297324
-429732460.00
ard of 60.00
Shareholder
s' Equity
1． Capital
Reserves
Transferred 4297324
-429732460.00
into Capital 60.00
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-
forward
retained
earnings of
the
variation of
the defined
benefit plan
5． Other
Carry-forw
ard
Retained
Earnings of
the
Comprehen
sive
Income
6. Others
(V) Special
Reserves
1． Withdr
awal in this
period
2． Used in
This Period
(VI) Others
IV. Balance
at the End 2578394
3871120415.45 506954.43 1074331150.00 5671093602.27 13195446882.15
of This 760.00
Period
Amount of Previous Period
Unit: RMB
2020 Semi-Annual
Other Equity Instruments Other
Item Share Preferr Perpetu Capital Comprehen Special Undistributed Total Shareholders'
Less: Treasury Share Surplus Reserves Others
Capital ed al Others Reserves sive Reserves Profits Equity
Stocks Bonds Incomes
I. Balance at
21486623 4300852875.4
the End of 506954.43 951844916.62 4488013408.28 11889880454.78
00.00 5
Last Year
Add:
Changes in
Accounting
Policies
Correction of
Errors in the
Previous
Period
Others
II. Balance at
21486623 4300852875.4
the Start of 506954.43 951844916.62 4488013408.28 11889880454.78
00.00 5
This Year
III. Increases
or Decreases
in This Period 592926184.50 592926184.50
(Mark "-" for
Decreases)
(I) Total
Comprehensi 1667257334.50 1667257334.50
ve Income
(II)
Shareholders'
Contribution
and
Reduction in
Capital
1． Common
stock invested
by the owner
2． Capital
Invested by
Holders of
Other Equity
Instruments
3． Amount
of
Share-based
Payments
Recorded into
Shareholders'
Equity
4． Others
(III) Profit
-1074331150.00 -1074331150.00
Distribution
1． Appropri
ation of
Surplus
Reserves
2． Distribut
ion to Owners
-1074331150.00 -1074331150.00
(or
Shareholders)
3． Others
(IV) Internal
Carry-forwar
d of
Shareholders'
Equity
1． Capital
Reserves
Transferred
into Capital
(or Share
Capital)
2． Surplus
Reserves
Transferred
into Capital
(or Share
Capital)
3． Surplus
Reserves
Covering
Losses
4． Carry-fo
rward
retained
earnings of
the variation
of the defined
benefit plan
5． Other
Carry-forwar
d Retained
Earnings of
the
Comprehensi
ve Income
6. Others
(V) Special
Reserves
1． Withdra
wal in this
period
2． Used in
This Period
(VI) Others
IV. Balance at
21486623 4300852875.4
the End of 506954.43 951844916.62 5080939592.78 12482806639.28
00.00 5
This Period
III. Basic Information about the Company
Zhejiang NHU Co. Ltd. (hereinafter referred to as the Company or our company) was approved by the former Securities
Commission of People's Government of Zhejiang Province Zhejiang Securities Commission [1999] No. 9 document jointly initiated
and established by Xinchang County Synthetic Chemical Plant (renamed NHU Holding Group Co. Ltd. on November 17 2009) and
nine natural persons including Zhang Pingyi Yuan Yizhong Shi Cheng Hu Baishan Shi Guanqun Wang Xuewen Shi Sanfu Cui
Xinrong Wang Xulin registered in Zhejiang Administration for Industry and Commerce on April 5 1999 and headquartered in
Shaoxing Zhejiang Province. The Company now holds a business license with a unified social credit code of 91330000712560575G
a registered capital of RMB 2578394760.00 and a total of 2578394760.00 shares (par value of RMB 1 per share). Among them
the number of liquid shares with limited sales conditions is 30311084; The number of liquid shares with unlimited sales conditions
is 2548083676. The Company's shares were listed and traded in Shenzhen Stock Exchange on June 25 2004.The Company belongs to the pharmaceutical manufacturing industry. Principal business activities are the production and sale of
nutrition flavor and fragrance and new polymer materials. Products mainly include: nutrition flavor and fragrance and new polymer
materials.This financial statement has been approved for public by the seventh meeting of the eighth session of the Board of Directors of
the Company on August 18 2021.The Company has included 23 subsidiaries such as Xinchang Vitamin NHU Import and Export and Zhejiang VYS in the
scope of consolidated financial statements of the current period. For details please refer to the description of IX.1 of the financial
report in this section.IV. Basis for Preparing the Financial Statement
1. Basis for the preparation
The financial statement of the Company has been prepared on the basis of continuing operations.2. Going concern
The Company has no items or circumstances that cause major doubts about its ability to continue operations within 12 months
from the end of the reporting period.V. Significant Accounting Polices and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
According to the actual production and operation characteristics the Company has formulated specific accounting policies and
accounting estimates for transactions or items such as impairment of financial instruments depreciation of fixed assets amortization
of intangible assets and revenue recognition.1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of the Accounting Standard for Business
Enterprises and truly and completely reflect the company's financial position operating results cash flow and other relevant
information.2. Accounting period
The fiscal year starts from January 1 and ends on December 31 of the Gregorian calendar.3. Operating cycle
Except for the real estate industry the business cycle of the Company's business is relatively short and 12 months is taken as
the liquidity classification standard of assets and liabilities. The business cycle of the real estate industry generally takes more than
12 months from real estate development to sales and revenue generation. The specific cycle is determined according to the project
development and its business cycle is taken as the liquidity classification standard of assets and liabilities.4. Functional currency
The Company and its domestic subsidiaries take CNY as the functional currency and overseas subsidiaries such as NHU (Hong
Kong) Trading Co. Ltd. and NHU Europe GmbH are engaged in overseas operations. The currency in the main economic
environment in which they operate is selected as the functional currency.5. The accounting treatment of business combinations involving enterprises under common control and
business combinations not involving enterprises under common control
1. Accounting treatment method for business combination under the same control
The assets and liabilities acquired by the Company in business combination are measured according to the carrying amount of
the combined party in the consolidated financial statements of the ultimate controlling party on the combination date. The Company
adjusts the capital reserve according to the difference between carrying amount share of the owner's equity of the combined party in
the consolidated financial statements of the ultimate controlling party and the carrying amount of the combination consideration paid
or the total par value of issued shares; If the capital reserve is insufficient to offset the retained earnings shall be adjusted.2. Accounting treatment method for business combination not under the same control
The Company recognizes the positive balance between the combination costs and fair value shares of identifiable net assets of
the acquiree as goodwill on the acquisition date; If the combination cost is less than the fair value of identifiable net assets of the
acquiree obtained in the combination first review the measurement of the fair value of identifiable assets liabilities and contingent
liabilities of the acquiree and the combination cost if the combination cost is still less than the fair value of identifiable net assets of
the acquiree obtained in the combination after review the difference shall be included in the current profits and losses.6. Preparation method of consolidated financial statements
The parent company brings all subsidiaries under its control into the consolidation scope of the consolidated financial statements.The consolidated financial statements are prepared by the parent company in accordance with the "Accounting Standard for Business
Enterprises No.33——Consolidated Financial Statements" based on the financial statements of the parent company and its
subsidiaries and other relevant materials.7. Recognition criteria of cash and cash equivalents
The cash listed in the cash flow statement refers to the cash on hand and deposits that are available for payment at any time.Cash equivalents refer to the investments held by enterprises which are short-term highly liquid and easy to be converted into
known amounts of cash and have little risk of value change.8. Conversion of transactions and financial statements denominated in foreign currencies
1. Translation of foreign currency business
When the foreign currency transaction is initially recognized it is converted into CNY at the approximate exchange rate of the
spot exchange rate on the transaction date. On the balance sheet date foreign currency monetary items are translated at the spot
exchange rate on the balance sheet date. The exchange difference arising from different exchange rates in addition to the exchange
difference between the principal and interest of foreign currency special Loan related to the acquisition and construction of assets
eligible for capitalization is included in the current profits and losses; The foreign currency non-monetary items measured at
historical cost are still translated at the approximate exchange rate of the spot exchange rate on the transaction date and the CNY
amount is not changed; The foreign currency non-monetary items measured at fair value are translated at the spot exchange rate on
the date when the fair value is determined and the difference is included in the current profits and losses or other comprehensive
income.2. Translation of foreign currency financial statement
The asset and liability items in the balance sheet are translated at the spot exchange rate on the balance sheet date; Except for the
"undistributed profit" item other items of owner's equity are translated at the spot exchange rate on the transaction date; The income
and expense items in the income statement are translated at the approximate exchange rate of the spot exchange rate on the
transaction date. The translation difference of foreign currency financial statements generated according to the above translation is
included in other comprehensive income.9. Financial instruments
1.Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories on initial recognition: (1) Financial assets measured at
amortized cost; (2) Financial assets measured at fair value with changes included in other comprehensive income; (3) Financial assets
measured at fair value through profit or loss.Financial liabilities are classified into the following four categories on initial recognition: (1) Financial liabilities measured at
fair value through profit or loss; (2) Financial liabilities arising from that the transfer of financial assets does not meet the conditions
for derecognition or continues to be involved in the transferred financial assets; (3) Financial guarantee contracts that do not belong
to (1) or (2) above and loan commitments that do not belong to (1) above and lend at a lower market interest rate; (4) Financial
liabilities measured at amortized cost.2. Recognition basis measurement method and derecognition conditions of financial assets and financial liabilities
(1) Recognition basis and initial measurement method of financial assets and financial liabilities
A financial asset or financial liability is recognized when the Company becomes a party to the financial instrument contract.When financial assets or financial liabilities are initially recognized fair value is taken for measurement; For financial assets and
financial liabilities measured at fair value through profit or loss relevant transaction costs are directly included in the current profits
and losses; For other types of financial assets or financial liabilities relevant transaction costs are included in the initially recognized
amount. However if the accounts receivable initially recognized by the Company does not contain major financing components or
the Company does not consider the financing components in the contract less than one year the initial measurement shall be made
according to the transaction price defined in the "Accounting Standard for Business Enterprises No. 14——Revenue".
(2) Subsequent measurement methods of financial assets
1) Financial assets measured at amortized cost
The effective interest rate method is adopted for subsequent measurement in accordance with the amortized cost. The gains or
losses arising from financial assets measured at amortized cost and not part of any hedging relationship are included in the current
profits and losses when they are derecognized reclassified amortized using the effective interest rate method or recognized as
impairment.2) Debt instrument investment measured at fair value with changes included in other comprehensive income
Fair value is adopted for subsequent measurement. The interest impairment losses or gains and exchange gains and losses
calculated by the effective interest rate method are included in the current profits and losses and other gains or losses are included in
other comprehensive income. Upon derecognition the accumulated gains or losses previously included in other comprehensive
income are transferred out of other comprehensive income and included in the current profits and losses.3) Equity instrument investment measured at fair value with changes included in other comprehensive income
Fair value is adopted for subsequent measurement. Dividends acquired (except those belonging to the recovery part of
investment costs) are included in the current profits and losses and other gains or losses are included in other comprehensive income.Upon derecognition the accumulated gains or losses previously included in other comprehensive income are transferred out of other
comprehensive income and included in retained earnings.4) Financial assets measured at fair value through profit or loss
The subsequent measurement is carried out at fair value and the gains or losses resulted (including interest and dividend income)
are included in the current profits and losses unless the financial asset is part of the hedging relationship.
(3) Subsequent measurement method of financial liabilities
1) Financial liabilities measured at fair value through profit or loss
Such financial liabilities include trading financial liabilities (including derivatives belonging to financial liabilities) and financial
liabilities designated to be measured at fair value through profit or loss. Such financial liabilities are subsequently measured at fair
value. The amount of changes in the fair value of financial liabilities designated to be measured at fair value through profit or loss
due to changes in the Company's own credit risk are included in other comprehensive income unless the treatment will cause or
expand the accounting mismatch in the profit or loss. Other gains or losses arising from such financial liabilities (including interest
expenses with the exception of changes in the fair value caused by changes in the Company's own credit risk) are included in the
current profits and losses unless the financial liabilities are part of the hedging relationship. Upon derecognition the accumulated
gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included
in retained earnings.2) Financial liabilities arising from that the transfer of financial assets does not meet the conditions for derecognition or
continues to be involved in the transferred financial assets;
Measure in accordance with the relevant provisions of the "Accounting Standard for Business Enterprises No. 23——Transfer
of Financial Assets".3) Financial guarantee contracts that do not belong to (1) or (2) above and loan commitments that do not belong to (1) above
and lend at a lower market interest rate
After initial recognition subsequent measurement shall be made according to the higher of the following two amounts: ① The
amount of loss reserves determined according to the provisions on impairment of financial instruments; ② The balance of the
initially recognized amount after deducting the accumulated amortization determined in accordance with the relevant provisions of
the "Accounting Standard for Business Enterprises No. 14——Revenue".4) Financial liabilities measured at amortized cost
Adopt the effective interest method to measure at amortized cost. The gains or losses arising from financial liabilities measured
at amortized cost and not part of any hedging relationship are included in the current profits and losses when they are derecognized
and amortized according to the effective interest rate method.
(4) Derecognition of financial assets and financial liabilities
1) When one of the following conditions is met financial assets are derecognized:
① The contractual right to receive cash flows from financial assets has been terminated;
② Financial assets have been transferred and this transfer meets the provisions on the derecognition of financial assets in the
"Accounting Standard for Business Enterprises No. 23——Transfer of Financial Assets"
2) When the current obligation of a financial liability (or part thereof) has been discharged the derecognition of the financial
liability (or part thereof) shall be terminated accordingly.3. Recognition basis and measurement method of financial asset transfer
If the Company transfers almost all the risks and rewards in the title of financial assets the financial assets shall be derecognized
and the rights and obligations generated or retained in the transfer as assets or liabilities shall be separately recognized; If almost all
the risks and rewards in the title of financial assets are retained the transferred financial assets shall continue to be recognized. If
the Company neither transfers nor retains almost all the risks and rewards in the title of financial assets it shall be treated separately
according to the following circumstances: (1) If the control over the financial asset is not retained the financial asset shall be
derecognized and the rights and obligations arising from or retained in the transfer shall be separately recognized as assets or
liabilities; (2) If the control over the financial assets is retained the relevant financial assets shall be recognized according to the
degree of continued involvement in the transferred financial assets and the relevant liabilities shall be recognized accordingly.If the overall transfer of financial assets meets the conditions for derecognition the difference between the following two
amounts shall be included in the current profits and losses: (1) The carrying amount of the transferred financial assets on the date of
derecognition; (2) The sum of the consideration received from the transfer of financial assets and the amount of the corresponding
derecognized part of the cumulative amount of changes in fair value originally directly included in other comprehensive income (the
financial assets involved in the transfer are debt instrument investments measured at fair value with changes included in other
comprehensive income). If a part of a financial asset is transferred and the transferred part as a whole meets the conditions for
derecognition the overall carrying amount of the financial asset before the transfer shall be apportioned between the derecognized
part and the continuously recognized part according to their respective relative fair values on the transfer date and the difference
between the following two amounts shall be included in the current profits and losses: (1) The carrying amount of the derecognized
part; (2) The sum of the consideration of the derecognized part and the amount of the derecognized part corresponding to the
cumulative amount of changes in fair value originally directly included in other comprehensive income (the financial assets involved
in transfer are debt instrument investments measured at fair value with changes included in other comprehensive income).4. Determination method of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques that are applicable in the current situation and supported by sufficient available
data and other information to determine the fair value of relevant financial assets and financial liabilities. The company divides the
input values used in the valuation techniques into the following levels and uses them in sequence:
(1) The input value of the first level is the unadjusted quotation of the same assets or liabilities that can be acquired on the
measurement date in the active market;
(2) The input value of the second level is the input value of relevant assets or liabilities directly or indirectly observable in
addition to the input value of the first level including: the quotation of similar assets or liabilities in the active market; the quotation
of the same or similar assets or liabilities in the inactive market; other observable input values other than the quotation such as the
observable interest rate and yield curve during normal quotation interval; the input value for market validation etc.;
(3) The input value of the third level is the unobservable input value of relevant assets or liabilities including the interest rates
that cannot be directly observed or verified by observable market data stock volatility future cash flow of retirement obligations
assumed in business combinations financial forecasts made using their own data etc.5. Impairment of financial instruments
(1) Financial instrument impairment measurement and accounting treatment
On the basis of expected credit losses the Company conducts impairment treatment based on expected credit losses and
recognizes loss reserves on the financial assets measured at amortized cost debt instrument investments measured at fair value with
changes included in the other comprehensive income contract assets lease receivables loan commitments classified other than
financial liabilities measured at fair value through profit or loss and financial guarantee contracts that do not belong to financial
liabilities measured at fair value through profit or loss or financial liabilities formed by the transfer of financial assets that do not
meet the conditions for derecognition or continue to be involved in the transferred financial assets.Expected credit loss refers to the weighted average value of credit losses of financial instruments weighted by the risk of default.Credit loss refers to the difference between all contract cash flows receivable under the contract and all cash flows expected to be
received by the Company discounted at the original effective interest rate that is the present value of all cash shortages. Among
them the financial assets purchased or generated by the Company with credit impairment shall be discounted according to the actual
interest rate adjusted by the credit of the financial assets.For the purchased or derived financial assets with credit impairment the Company only recognizes the cumulative changes of
expected credit loss in the whole duration since initial recognition as loss reserves on the balance sheet date.For the receivables and contract assets formed by the transactions regulated in the “Accounting Standard for BusinessEnterprises No.14——Revenue" and excluding major financing components or the Company does not consider the financing
components in the contract not exceeding one year the Company uses the simplified measurement method to measure the loss
reserve according to the amount equivalent to the expected credit loss in the whole duration.For lease receivables receivables and contract assets formed by the transactions regulated by the "Accounting Standard for
Business Enterprises No.14——Revenue" and containing major financing components the Company uses the simplified
measurement method to measure the loss reserve according to the amount equivalent to the expected credit loss in the whole
duration.For financial assets other than the above measurement methods the Company assesses whether its credit risk has increased
significantly since initial recognition on each balance sheet date. If the credit risk has increased significantly since initial recognition
the Company shall measure the loss reserve according to the amount of expected credit loss during the whole duration; If the credit
risk has not increased significantly after initial recognition the Company shall measure the loss reserve according to the amount of
expected credit loss of the financial instrument in the next 12 months.The Company makes use of available reasonable and well-grounded information including forward-looking information to
determine whether the credit risk of financial instruments has increased significantly since initial recognition by comparing the risk
of default of financial instruments on the balance sheet date with the risk of default on the initial recognition date.On the balance sheet date if the Company believes that the financial instrument has only low credit risk it is assumed that the
credit risk of the financial instrument has not increased significantly since initial recognition.The Company assesses the expected credit risk and measures the expected credit loss on the basis of individual financial
instrument or a combination of financial instruments. When based on the combination of financial instruments the Company divides
the financial instruments into different combinations based on the common risk characteristics.The Company re-measures the expected credit loss on each balance sheet date and the increase or reversal amount of the loss
reserve formed thereby shall be included in the current profits and losses as impairment loss or gain. For the financial asset measured
at amortized cost the loss reserve shall offset the carrying amount of this financial asset listed in the balance sheet; For the bond
investment measured at fair value with changes included in other comprehensive income the Company recognizes its loss reserve in
other comprehensive income and does not deduct the carrying amount of this financial asset.
(2) Financial instruments for evaluating expected credit risk and measuring expected credit loss by mechanics
Project Basis to Determine the Portfolio Methods of measuring expected credit loss
Other receivables——Export tax rebate
With reference to the historical credit loss
receivable mechanics
experience combined with the current
Other receivables——VAT refund situation and the prediction of future economic
Nature of the funds
receivable mechanics conditions the expected credit loss is
Other receivables——Land bond calculated through the exposure at default and
receivable mechanics the expected credit loss rate in the next 12
Other receivables——Aging mechanics Aging months or the whole duration.
(3) Receivables and contract assets that measure expected credit loss by mechanics
1) Specific mechanics and methods of measuring expected credit loss
Basis to Determine the
Project Methods of measuring expected credit loss
Portfolio
Bank acceptance bills receivable With reference to the historical credit loss experience combined
with the current situation and the prediction of future economic
Bill type conditions the expected credit loss is calculated through the
Trade acceptance receivable
exposure at default and the expected credit loss rate throughout the
duration.With reference to the historical credit loss experience combined
with the current situation and the prediction of future economic
Accounts receivable——Aging mechanics Aging conditions the comparison table between the aging of accounts
receivable and the expected credit loss rate throughout the
duration is prepared and the expected credit loss is calculated.2) Accounts receivable——The comparison table of the aging of aging mechanics and the expected credit loss rate in the whole
duration
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (including the same below) 5
1-2 years 20
2-3 years 80
3 years or above 100
3) Accounts receivable with insignificant single amount but single provision for bad debts
There is a significant difference between the present value of
future cash flow of accounts receivable and the present value of
Reason for making bad debt provision individually
future cash flow of accounts receivable mechanics with aging as
credit risk characteristics
The impairment test shall be conducted separately and the
Method for bad debt provision provision for bad debts shall be based on the difference between
the present value of its future cash flow and its carrying amount
6. Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and do not offset each other. However if
the following conditions are met at the same time the Company shall present the net amount after offsetting each other in the balance
sheet: (1) The company has the legitimate right to offset the recognized amount and such legitimate right is currently enforceable; (2)
The company plans to settle on a net basis or realize the financial assets and settle the financial liabilities at the same time.For the transfer of financial assets that do not meet the conditions for derecognition the Company will not offset the transferred
financial assets and related liabilities.10. Inventories
1. Classification of inventories
Inventories include finished products or commodities held for sale in daily activities products in the production process
materials and supplies consumed in the production process or the rendering of services etc.2. Pricing method for issuing inventories
(1) The weighted averages method at the end of the month is adopted for the inventory issued other than developed products
(2) During the development of the project the apportionment of land for development shall be calculated according to the area
covered by developed products and included in the development cost of the project.
(3) The average building area method is adopted for accounting to issue similar developed products.
(4) If the public supporting facilities are completed earlier than the relevant developed products after the final settlement of the
completion of the public supporting facilities it shall be included in the development costs of the relevant development projects
according to the budgeting absorption of costs of the relevant development projects; If the public supporting facilities are completed
later than the relevant developed products relevant developed products shall first accrue the cost of public supporting facilities and
the cost of relevant developed products shall be adjusted according to the difference between the actual amount and the accrued
amount after the completion and final settlement of the public supporting facilities.3. Basis for determining the net realizable value of inventories
On the balance sheet date inventories are measured at the lower of cost and net realizable value and inventory write down
shall be accrued according to the difference between the cost of a single inventory and net realizable value. For the inventory directly
for sale its net realizable value shall be determined by the amount of the estimated selling price of the inventory minus the estimated
marketing expenses and relevant taxes in the ordinary course of production and operation; For the inventory that needs to be
processed its net realizable value shall be determined by the estimated selling price of finished products minus the estimated cost to
be incurred at the time of completion estimated marketing expenses and relevant taxes in the ordinary course of production and
operation process; On the balance sheet date if there is a contract price agreement for some part of the same inventory and no
contract price for other parts their net realizable values shall be determined respectively and compared with their corresponding
costs to determine the accrued or reversed amount of inventory write down respectively.4. Inventory system
The inventory system of inventories is perpetual inventory system.5. Amortization method of low-value consumables and packaging
(1) Low-value consumables
Amortize in accordance with the one-off writing-off process.
(2) Packaging
Amortize in accordance with the one-off writing-off process.11. Long-term equity investment
1. Criterion of joint control and significant influence
It is recognized as joint control if there is common control over an arrangement according to the relevant agreement and the
relevant activities of this arrangement can only be decided after the unanimous consent of the participants sharing control. It is
recognized as significant influence if have the right to participate in decision-making on the financial and operating policies of the
investee but not being able to control or jointly control the formulation of these policies with other parties.2. Determination of investment cost
(1) For the business combination under the same control when the combining party takes paying cash transferring non-cash
assets bearing debts or issuing equity securities as the combination consideration the share of the carrying amount of the owner's
equity of the combined party in the consolidated financial statements of the final controlling party on the combination date shall be
taken as its initial investment cost. The capital reserve shall be adjusted according to the difference between the initial investment
cost of long-term equity investment and the carrying amount of the combination consideration paid or the total par value of the issued
shares; If the capital reserve is insufficient to offset the retained earnings shall be adjusted.The Company realizes the long-term equity investment arising from business combination under the same control step by step
through multiple transactions and determine whether it is a "package deal". If it is a "package deal" each transaction shall be
accounted as a transaction that acquires control. If it is not a "package deal" on the combination date the initial investment cost shall
be determined according to the share of the carrying amount of the net assets of the combined party in the consolidated financial
statements of the final controlling party. The capital reserve shall be adjusted as per the difference between the initial investment cost
of the long-term equity investment on the combination date and the sum of the carrying amount of the long-term equity investment
before the combination plus the carrying amount of the new payment of consideration for further shares on the combination date; If
the capital reserve is insufficient to offset the retained earnings shall be adjusted.
(2) For the business combination not under the same control the fair value of the combination consideration paid on the
acquisition date shall be taken as its initial investment cost.The Company realizes the long-term equity investment step by step arising from business combination not under the same
control through multiple transactions and distinguishes individual financial statements from consolidated financial statements for
relevant accounting treatment:
1) In the individual financial statements the sum of the carrying amount of the equity investment originally held plus the new
investment cost is recognized as the initial investment cost calculated by cost method.2) In the consolidated financial statements determine whether it is a "package deal". If it is a "package deal" each transaction
shall be accounted as a transaction that acquires control. If it is not a "package deal" the equity held by the acquiree before the
acquisition date shall be re-measured according to the fair value of the equity on the acquisition date the difference between the fair
value and its carrying amount shall be included in the current investment income; If the equity held by the acquiree before the
acquisition date involves other comprehensive income accounted by equity method the relevant other comprehensive income shall
be transferred to the current income on the acquisition date. However other comprehensive income arising from changes in the net
liabilities or net assets of the defined benefit plan re-measured by the investee is excluded.
(3) Except for those arising from business combination: If it is acquired by paying cash the purchase price actually paid shall
be recognized as its initial investment cost; If it is acquired by issuing equity securities fair value of the issued equity securities shall
be recognized as its initial investment cost; If it is acquired through debt restructuring its initial investment cost shall be determined
in accordance with the "Accounting Standard for Business Enterprises No.12——Debt Restructuring"; If it is acquired by
exchanging the non-monetary assets its initial investment cost shall be determined in accordance with the "Accounting Standard for
Enterprises No.7——Exchange of Non-monetary Assets".3. Subsequent measurement and methods for profit and loss recognition
The long-term equity investment controlled by the investee shall be accounted by the cost method; The long-term equity
investment of associates and joint ventures shall be accounted for by the equity method.4. Disposal of investment in subsidiaries through multiple transactions step by step until loss of right of control
(1) Individual financial statements
For the disposed equity the difference between its carrying amount and the actually acquired price shall be included in the
current profits and losses. For the residual equity if it still has a significant influence on the investee or implements joint control with
other parties it shall be accounted by equity method; Where it can no longer exercise control jointly control or exert significant
influence on the investee it shall be accounted in accordance with the relevant provisions of the "Accounting Standard for Business
Enterprises No.22——Recognition and Measurement of Financial Instruments".
(2) Consolidated financial statements
1) Where the investment in subsidiaries through multiple transactions is processed step by step until loss of control and it's not
a "package deal"
before the loss of right of control the capital reserve (capital premium) shall be adjusted according to the difference between
the disposal price and the share of net assets of the subsidiary continuously calculated from the acquisition date or combination date
corresponding to the disposal of long-term equity investment. If the capital premium is insufficient to offset the retained earnings
shall be offset.When the control over the subsidiary company is lost the remaining equity shall be remeasured according to its fair value on
the date of loss of right control. The difference between the sum of the consideration acquired from the disposal of equity and the fair
value of the remaining equity minus the share of the net assets of the original subsidiary continuously calculated from the acquisition
date or the combination date according to the original shareholding ratio shall be included in the current investment income when the
right of control is lost and meanwhile the goodwill shall be offset. Other comprehensive income related to the equity investment of
the original subsidiary shall be transferred to the current investment income when the right of control is lost.2) Where the investment in subsidiaries through multiple transactions is processed step by step until loss of control and it's not
a "package deal"
each transaction shall be accounted as the transaction in which the investment in subsidiaries is disposed and the right of
control is lost. However before the loss of right of control the difference between each disposal price and the share of net assets of
the subsidiary corresponding to the disposal of investment shall be recognized as other comprehensive income in the consolidated
financial statements and shall be transferred to the current profits and losses when the control is lost.12. Fixed assets
(1) Conditions for recognition of fixed assets
Fixed assets refer to the tangible assets held for the production of commodities rendering of services lease or operation and
management with the service life of more than one fiscal year. Fixed assets shall be recognized when economic benefits are likely to
flow in and costs can be measured reliably at the same time.
(2) Methods for depreciation
Useful lives of Annual depreciation
Category Depreciation method Residual Ratio
depreciation rate
Housing and building Straight-line method 7-35 5 13.57-2.71
Universal equipment Straight-line method 5-10 5 19.00-9.50
Special equipment Straight-line method 5-15 5 19.00-6.33
Means of transport Straight-line method 5-7 5 19.00-13.57
13. Construction in progress
1. The construction in progress shall be recognized when economic benefits are likely to flow in and costs can be measured
reliably at the same time. Construction in progress shall be measured at the actual cost incurred before the asset is ready for its
intended use.2. When the construction in progress is ready for the intended use it shall be transferred into fixed assets at actual cost of the
project. When it is ready for the intended use but the final accounting of completion has not been settled it shall be transferred into
fixed assets at the estimated value. After the final accounting of completion is settled the original estimated value shall be adjusted
according to the actual cost but the originally accrued depreciation shall not be adjusted.14. Borrowing costs
1. Recognition principle of capitalization of borrowing costs
Where the borrowing costs incurred by the Company can be directly attributed to the acquisition construction or production of
assets eligible for capitalization shall be capitalized and included in the cost of relevant assets; Other borrowing costs if recognized
as expenses when incurred shall be included in the current profits and losses.2. Period of capitalization of borrowing costs
(1) When the borrowing costs meet the following conditions at the same time capitalization starts: 1) Asset expenditure has
incurred; 2) Borrowing costs have incurred; 3) The acquisition and construction or production activities necessary to make the assets
ready for intended use or sale have started.
(2) If the assets eligible for capitalization are abnormally interrupted in the process of acquisition construction or production
and the interruption period exceeds 3 consecutive months the capitalization of borrowing costs shall be suspended; The borrowing
costs incurred during the interruption are recognized as current expenses until the acquisition and construction or production
activities of the assets restart.
(3) The capitalization of borrowing costs shall stop when the assets under acquisition construction or production are ready for
the intended use or sale.3. Capitalization rate and capitalization amount of borrowing cost
If a special loan is borrowed for the acquisition and construction or production of assets eligible for capitalization the interest
amount shall be recognized by the interest expense actually incurred in the current period of the special loan (including the
amortization of discount or premium determined according to the effective interest rate method) minus the interest income acquired
by depositing the unused loan funds into the bank or the investment income acquired from temporary investment; If a general loan is
occupied for the acquisition and construction or production of assets eligible for capitalization the amount of interest to be
capitalized on the general loan shall be calculated and determined according to the weighted average of the accumulative asset
expenditure exceeding the asset expenditure of the special loan multiplied by the capitalization rate of the occupied general loan.15. The assets of right to use
1. Conditions for recognizing the assets of right to use
The assets of right to use refer to the right of the company as the lessee to use the leased assets during the lease term. The
Company recognizes the assets of right to use to the lease on the commencement of the lease term. The assets of right to use shall be
recognized when there is possible inflow of economic benefits and the costs can be reliably measured at the same time.2. Initial measurement of the assets of right to use
The assets of right to use are initially measured at cost which includes: (1) Initial measurement amount of lease liabilities; (2)
For the lease payment paid on or before the commencement of the lease term if there are lease incentives the relevant amount of
lease incentives enjoyed shall be deducted; (3) initial direct costs incurred by the lessee; (4) The estimated cost incurred by the lessee
for dismantling and removing the leased asset restoring the site where the leased asset is located or restoring the leased asset to the
state agreed in the lease terms.3. Subsequent measurement of the assets of right to use
(1) The Company adopts the cost model for subsequent measurement of the assets of right to use.
(2) The Company depreciates the assets of right to use. If it can be reasonably recognized that the title of the leased asset is
acquired at the expiration of the lease term the Company shall accrue depreciation within the remaining service life of the leased
asset. If it cannot be reasonably recognized that the title of the leased asset is acquired at the expiration of the lease term the
Company shall accrue depreciation within the shorter of the lease term and the remaining service life of the leased asset. The specific
depreciation methods of various assets of right to use are as follows:：
Depreciation period Annual depreciation rate
Category Depreciation method Residual rate(%)
(years) (%)
Housing and building Straight-line method 7-35 5 13.57-2.71
Universal equipment Straight-line method 5-10 5 19.00-9.50
Special equipment Straight-line method 5-15 5 19.00-6.33
Means of transport Straight-line method 5-7 5 19.00-13.57
(3) When the company remeasures the lease liability according to the present value of the changed lease payment and adjusts
the carrying amount of the assets of right to use accordingly if the carrying amount of the assets of right to use has been reduced to
zero but the lease liability still needs to be further reduced the remaining amount shall be included in the current profits and losses.
(4) On the balance sheet date if there is any indication that the assets of right to use are impaired the corresponding
impairment provision shall be made according to the difference between the carrying amount and the recoverable amount.16. Intangible assets
(1) Valuation method service life impairment test
1. Intangible assets including the land use right patent right and non-patent technology are initially measured at cost.2. The intangible asset with limited service life shall be amortized systematically and reasonably according to the expected
realization mode of economic benefits related to this intangible asset within the service life. If the expected realization mode cannot
be recognized reliably the straight-line method shall be used for amortization. The specific years are as follows:
Project Amortization period (years)
Land use rights 50、70Softwares 10
Patent right 10
Non-patented technology 15
(2) Accounting policy for internal R&D expenditure
The expenditures in the research stage of internal research and development projects shall be included in the current profits and
losses when incurred. Expenditures in the internal research and development projects at development stage shall be recognized as
intangible assets if the following conditions are met : (1) Complete the intangible asset to make it available for use or sale technically;
(2) Have the intention to complete the intangible asset and use or sell it; (3) The ways in which the intangible assets generate
economic benefits including the ability to prove the existence of a market for the products produced by using the intangible asset or
the intangible asset itself the usefulness of the intangible asset can be proved if it is internally used; (4) There are sufficient technical
financial and other resources to support the development of the intangible asset and have the ability to use or sell the intangible asset;
(5) The expenditures for the intangible asset at development stage can be measured reliably.
17. Impairment of long-term assets
For the long-term assets such as long-term equity investment fixed assets construction in progress and intangible assets with
limited service life if there is any indication of impairment on the balance sheet date the recoverable amount shall be estimated. For
the goodwill arising from business combination and intangible assets with uncertain service life impairment test shall be conducted
every year regardless of whether there are signs of impairment or not. Goodwill is tested for impairment in combination with its
related asset group or combination of asset groups.If the recoverable amount of the above long-term assets is lower than its carrying amount the asset impairment provision shall
be recognized according to the difference and included in the current profits and losses.18. Long-term deferred expenses
Long-term deferred expenses refer to the expenses that have been paid by the enterprise with the amortization period of more
than 1 year (excluding 1 year). Long-term deferred expenses shall be recorded according to the actual amount incurred and amortized
evenly by stages during the benefit period or within the specified period. If the long-term deferred expense item will not benefit the
future accounting period all the amortized value of the item that has not been amortized shall be transferred to the current profits and
losses.19. Contract liabilities
The Company lists contract assets or contract liabilities in the balance sheet according to the relationship between performance
obligations and customer payments. The Company shall present the net amount after offsetting the contract assets against contract
liabilities under the same contract. The Company lists the obligation to transfer commodities to customers for the consideration
received or receivable from customers as contract liabilities.20. Employee compensation
(1) Accountant arrangement method of short-term remuneration
In the accounting period during which employees provide services to the company the short-term compensation actually
incurred shall be recognized as liabilities and included in the current profits and losses or relevant asset costs.
(2) Accountant arrangement method of retirement benefit plan
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) In the accounting period during which employees provide services to the company the amount payable calculated according
to the defined contribution plan is recognized as liabilities and included in the current profits and losses or relevant asset costs.(2) The accounting treatment of defined benefit plans usually includes the following steps:
1) According to the expected accumulative welfare unit method unbiased and consistent actuarial assumptions are applied to
estimate demographic variables and financial variables measure the obligations arising from the defined benefit plan and recognize
the period of relevant obligations. Meanwhile the obligations arising from the defined benefit plan shall be discounted in order to
determine the present value and current service costs of the obligations thereof;
2) If there are assets in the defined benefit plan the deficit or surplus arising from the present value of the defined benefit plan
obligations minus the fair value of the assets of the defined benefit plan shall be recognized as the net liabilities or net assets of one
defined benefit plan. If there is a surplus in the defined benefit plan the net assets of the defined benefit plan shall be measured
according to the lower of the surplus of the defined benefit plan and the upper limit of assets;
3) At the end of term the employee compensation cost arising from the defined benefit plan will be recognized as the service
cost the net interest on the net liabilities or net assets of the defined benefit plan and the changes arising from the remeasurement of
the net liabilities or net assets of the defined benefit plan among which the service cost and the net interest on the net liabilities or net
assets of the defined benefit plan are included in the current profits and losses or relevant asset costs the changes arising from
remeasurement of net liabilities or net assets of defined benefit plans are included in other comprehensive income and are not
allowed to be reversed to profits or losses in the subsequent accounting periods but these amounts recognized in other
comprehensive income can be transferred within the scope of equity.
(3) Accountant arrangement method of termination benefits
For the dismissal welfare provided to employees the employee compensation liabilities arising from the dismissal welfare shall
be determined at the earliest of the following two and included in the current profits and losses: (1) When the company cannot
unilaterally withdraw the dismissal welfare provided due to the termination of labor relations plan or layoff proposal; (2) When the
company determines the costs or expenses associated with the restructuring involving the payment of dismissal welfare.
(4) Accountant arrangement method of other long-term employee benefits
Other long-term welfare provided to employees if meets the conditions of the defined contribution plan shall be accounted for
in accordance with relevant provisions of the defined contribution plan; other long-term welfare shall be accounted for in accordance
with relevant provisions of the defined benefit plan. In order to simplify the relevant accounting treatment the employee
compensation cost incurred is recognized as the service cost the net interest of the net liabilities or net assets of other long-term
employee welfare and the total net amount of changes arising from remeasuring the net liabilities or net assets of other long-term
employee welfare is included in the current profits and losses or relevant asset costs.21. Lease liabilities
Lease liabilities shall be initially measured at the present value of the unpaid lease payments on the commencement date of the
lease term. Lease liabilities are usually listed in the illiquid liabilities and illiquid liabilities due within one year.When calculating the present value of the lease payment the lessee shall adopt the interest rate implicit in lease as the discount
rate; If the interest rate implicit in lease cannot be recognized the lessee's interest rate on incremental Loan shall be applied as the
discount rate. The interest rate implicit in lease refers to the interest rate that makes the sum of the present value of the lessor's lease
receipts and the present value of the unguaranteed residual value equal to the sum of the fair value of the leased asset and the lessor's
initial direct costs. The lessee's interest rate on incremental Loan refers to the interest rate that the lessee must pay to borrow money
with similar mortgage conditions during similar periods in order to acquire assets close to the value of the assets of right to use in the
similar economic environment.In the subsequent measurement the lessee shall calculate the interest expense of the lease liability during each period of the
lease term at a fixed periodic interest rate (i.e. the discount rate) and include it in the current profits and losses.22. Revenue
Accounting policies for revenue recognition and measurement
1. Revenue recognition principle
On the commencement of the contract the Company evaluates the contract to identify each individual performance obligation
contained in the contract and determines whether each individual performance obligation is performed within a certain period of
time or at a certain point of time.When one of the following conditions is met it belongs to the performance obligation within a certain period of time otherwise
it belongs to the performance obligation at a certain point of time: (1) The customer acquires and consumes the economic benefits
arising from the Company's performance while the company performs the contract; (2) The customer can control the commodities in
progress during the Company's performance; (3) The commodities produced by the Company during the performance possess
irreplaceable usage and the company has the right to collect payment for the performance part accumulated so far during the whole
contract period.For the performance obligations performed within a certain period of time the Company shall recognize the revenue according
to the performance progress within that period of time. If the performance progress cannot be reasonably recognized and the costs
incurred are expected to be compensated the revenue shall be recognized according to the amount of costs incurred until the
performance progress can be reasonably recognized. For the performance obligations performed at a certain point of time revenue
shall be recognized when the customer acquires the right of control over relevant commodities or services. While determining
whether the customer has acquired the right of control over the commodities the Company shall take the followings into
consideration: (1) The Company has the current collection right for the commodity that is the customer has the current payment
obligation for the commodity; (2) The Company has transferred the legal title of the commodity to the customer that is the customer
already has the legal title of the commodity; (3) The Company has transferred the physical commodity to the customer that is the
customer has possessed the physical commodity; (4) The Company has transferred the major risks and rewards of the commodity
title to the customer that is the customer has acquired the major risks and rewards of the commodity title; (5) The customer has
accepted the commodity; (6) other signs indicating that the customer has acquired the right of control over the commodity.2. Revenue measurement principle
(1) The Company measures the revenue according to the transaction price apportioned to each individual performance
obligation. The transaction price refers to the amount of consideration that the company is expected to be entitled to collect due to the
transfer of commodities or services to customers excluding the payments collected on behalf of third parties and the payments
expected to be returned to customers.
(2) Where there is variable consideration in the contract the Company shall determine the best estimate of the variable
consideration according to the expected value or the amount most likely to occur but the transaction price including the variable
consideration shall not exceed the amount by which the accumulative recognized revenue is much more unlikely to be significantly
reversed when relevant uncertainties are eliminated.
(3) If there are major financing components in the contract the Company shall determine the transaction price according to the
amount due assumed to be paid in cash when the customer acquires the right of control over the commodities or services. The
difference between this transaction price and the contract consideration shall be amortized by the effective interest rate method
during the contract period. On the commencement of the contract if the Company expects that the interval between the customer's
acquisition of right of control over the commodities or services and the customer's payment of the price will not exceed one year the
major financing components in the contract will not be taken into consideration.
(4) If the contract contains two or more performance obligations the Company shall apportion the transaction price to each
individual performance obligation on the contract commencement date according to the relative proportion of the individual selling
price of the commodities promised by each individual performance obligation.3. Specific methods of revenue recognition
(1) Revenue from product sales
The Company mainly sells nutriment flavor and fragrance and polymer new materials etc. The sales of products are
performance obligations at a certain point of time. The recognition of domestic product revenue shall meet the following conditions:
The Company has delivered the products to customers according to the contract collected the payment or acquired the right of
collection and the relevant economic benefits are very likely to flow in. The recognition of the revenue of products for export shall
meet the following conditions: The Company has declared the products at the customs according to the contract acquired the bill of
lading collected the payment or acquired the right of collection and the relevant economic benefits are very likely to flow in.
(2) Revenue from real estate sales
Real estate sales are performance obligations performed at a certain point of time. Revenue recognition shall meet the
following conditions: The Company has delivered the products to customers according to the contract customers have signed the
delivery note collected the payment or acquired the right of collection and the relevant economic benefits are very likely to flow in.23. Government grants
1. Government grants shall be recognized when the following conditions are met at the same time: (1) The Company can meet
the conditions attached to government grants; (2) The Company can receive government grants. If the government grant is a
monetary asset it shall be measured at the amount received or receivable. If the government grant is a non-monetary asset it shall be
measured at the fair value; If the fair value cannot be obtained reliably it shall be measured at the nominal amount.2. Determination basis and accounting treatment method of government grants related to assets
According to government documents government grants applied for the acquisition and construction or the formation of
long-term assets in other ways shall be classified as the government grants related to assets. If there is no clear stipulation in the
government documents the judgment shall be based on the basic conditions necessary for acquiring the grant and the government
grants related to assets shall be based on the formation of long-term assets by acquisition and construction or other means.Government grants related to assets shall offset the carrying amount of relevant assets or be recognized as deferred income. If the
government grants related to assets are recognized as deferred income they shall be included in profits and losses by stages in a
reasonable and systematic manner during their service life. Government grants measured in nominal amount shall be directly
included in the current profits and losses. If relevant assets are sold transferred scrapped or damaged before the end of their service
life the non-allocated balance of relevant deferred income shall be transferred to the current profits and losses of the disposal of
assets.3. Determination basis and accounting treatment method of government grants related to income
Government grants other than those related to assets shall be classified as government grants related to income. For the
government grants that contain both asset-related and income-related parts if it is difficult to make a distinction between
asset-related and income-related government grants they shall be classified as income-related government subsidies as a whole.Where the government grants related to income are applied to compensate relevant costs or losses in subsequent periods it shall be
recognized as deferred income and included in the current profits and losses or offset relevant costs during the period when relevant
costs or losses are recognized; If it is used to compensate the relevant costs or losses incurred it shall be directly included in the
current profits and losses or offset the relevant costs.4. Government grants related to the Company's daily business activities shall be included in other income or offset related costs
according to the essence of economic business. Government grants unrelated to the Company's daily activities shall be included in
the non-operating income.5. Accounting treatment method of policy-oriented concessional loan discount interest
(1) Where the finance allocates the discount interest funds to the lending bank and the lending bank provides loans to the
Company at the policy preferential interest rate the actually received loan amount shall be taken as the entry value of the loan and
the relevant borrowing costs shall be calculated according to the loan principal and the policy preferential interest rate.
(2) If the finance directly allocates the discount interest funds to the Company the corresponding discount interest shall offset
the relevant borrowing costs.24. Deferred income tax assets / deferred income tax liabilities
1. According to the difference between the carrying amount of assets and liabilities and their tax base (if the tax base of the item
is not recognized as the asset and liability can be determined according to the tax law the difference between the tax base and its
carrying amount) the deferred income tax assets or deferred income tax liabilities are calculated and recognized according to the
applicable tax rate during the expected recovery of the assets or settlement of the liabilities.2. The recognition of deferred income tax assets is limited to the taxable income that is very likely to be acquired to offset the
deductible temporary differences. On the balance sheet date if there is conclusive evidence indicating that sufficient taxable income
is likely to be obtained in the future to offset the deductible temporary differences the unrecognized deferred income tax assets in the
previous accounting periods shall be recognized.3. On the balance sheet date the carrying amount of deferred income tax assets shall be reviewed. If no sufficient taxable
income is likely to be obtained to offset the benefits of deferred income tax assets in the future the carrying amount of deferred
income tax assets shall be written down. The amount written down shall be reversed when it is likely to obtain sufficient taxable
income.4. The current income tax and deferred income tax of the Company shall be included in the current profits and losses as income
tax expenses or income but excluding the income tax generated under the following circumstances: (1) Business combination; (2)
Transactions or items directly recognized in the owner's equity.25. Leases
1. The Company as a lessee
On the commencement date of lease the Company recognizes the lease of no more than 12 months and excluding the call option
as a short-term lease; When a single leased asset is brand-new the lease of lower value is recognized as a low-value asset lease. If the
Company sublets or is expected to sublet the leased assets the original lease shall not be recognized as the low-value asset lease.For all the short-term leases and low-value asset leases the Company shall record the lease payment amount into the relevant asset
costs or current profits and losses according to the straight-line method / workload method in each period of the lease term.In addition to the above short-term leases and low-value asset leases with simplified treatment the Company recognizes the
right-of-use assets and lease liabilities for the lease on the commencement date of lease.
(1) Right-of-use assets
The right-of-use assets are initially measured at cost which includes: 1) The initial measurement amount of lease liabilities; 2)
For the lease payment paid on or before the commencement of the lease if there is a lease incentive the relevant amount of the lease
incentive enjoyed shall be deducted; 3) Initial direct costs incurred by the lessee; 4) The estimated costs incurred by the lessee for
dismantling and removing the leased asset restoring the site where the leased asset is located or restoring the leased asset to the state
agreed in the lease terms.The Company depreciates the right-of-use assets according to the straight-line method / workload method. If it can be reasonably
recognized that the title of the leased asset is acquired at the expiration of the lease term the Company shall accrue depreciation
within the remaining service life of the leased asset. If it cannot be reasonably recognized that the title of the leased asset is acquired
at the expiration of the lease term the Company shall accrue depreciation within the shorter of the lease term and the remaining
service life of the leased asset.
(2) Lease liabilities
On commencement date of the lease the Company recognizes the present value of the unpaid lease payments as lease liabilities.The interest rate implicit in lease is applied as the discount rate when calculating the present value of lease payments. If the interest
rate implicit in lease cannot be determined the Company's incremental loan interest rate is applied as the discount rate. The
difference between the lease payment amount and its present value shall be regarded as the unrecognized financing expense and the
interest expense shall be recognized according to the discount rate of the present value of the lease payment amount during each
period of the lease term and included in the current profits and losses. The variable lease payment which is not included in the
measurement of lease liabilities shall be included in the current profits and losses when actually incurred.After the commencement of the lease when there are changes in the actual fixed payment the estimated payable amount of
guarantee residual value the index or ratio applied to determine the amount of lease payments the evaluation results or actual
exercise of the call option renewal option or termination option the Company remeasures the lease liability according to the present
value of the changed lease payment and accordingly adjusts the carrying amount of the right-of-use asset. If the carrying amount of
the right-of-use asset has been reduced to zero but the lease liability still need to be further reduced the remaining amount shall be
included in the current profits and losses.2. The Company as a lessor
On the commencement date of the lease the Company classifies the leases that have substantially transferred almost all the risks
and rewards related to the title of the leased assets as finance leases and all other leases are operating leases.(1) Operating leases
The Company recognizes the lease receipts as rental income according to the straight-line method / workload method during
each period of the lease term capitalizes the initial direct expenses incurred apportions them on the same basis as the recognition of
rental income and includes them into the current profits and losses by stages. The Company's variable lease payments related to
operating leases that are not included in the lease receipts shall be included in the current profits and losses when they actually occur.
(2) Finance leases
On the commencement date of lease the Company recognizes the financial lease receivables according to the net lease
investment (the sum of the unguaranteed residual value and the present value of the unreceived lease receipts discounted according to
the interest rate implicit in the lease on the commencement date of the lease) and terminates the recognition of the financial lease
assets. During each period of the lease term the Company calculates and recognizes interest income according to the interest rate
implicit in lease.The Company's variable lease payments that are not included in the measurement of the net lease investment shall be included
in the current profits and losses when they actually occur.3. Sale and leaseback
(1) The Company as a lessee
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a sale in
accordance with the provisions of the Accounting Standard for Business Enterprises No. 14——Revenue.If the asset transfer in the sale and leaseback transaction is a sale the Company shall measure the right-of-use asset arising from
the sale and leaseback according to the part related to the right of use acquired from the leaseback in the original carrying amount of
the asset and only recognize relevant gains or losses on the rights transferred to the lessor.If the asset transfer in the sale and leaseback transaction is not a sale the Company shall continue to recognize the transferred
asset and recognize a financial liability equal to the transfer income and account for this financial liability in accordance with the
Accounting Standard for Business Enterprises No. 22——Recognition and Measurement of Financial Instruments.
(2) The Company as a lessor
The Company evaluates and determines whether the asset transfer in the sale and leaseback transaction belongs to a sale in
accordance with the provisions of the Accounting Standard for Business Enterprises No. 14——Revenue.If the asset transfer in the sale and leaseback transaction is a sale the Company shall account for the asset acquisition in
accordance with other applicable accounting standards for business enterprises and account for the asset lease in accordance with the
Accounting Standard for Business Enterprises No. 21——Lease.If the asset transfer in the sale and leaseback transaction is not a sale the Company shall not recognize the transferred asset but
recognize a financial liability equal to the transfer income and account for this financial liability in accordance with the Accounting
Standard for Business Enterprises No. 22——Recognition and Measurement of Financial Instruments.26. Safety production expenses
The safety production expenses withdrawn by the Company in accordance with the measures for the Administration of the
Extraction and Use of Enterprise Safety Production Expenses (CQ [2012] No.16) jointly issued by the Ministry of Finance and the
State Administration of Work Safety shall be included in the costs of relevant products or current profits and losses and also recorded
in the "special reserve" subject. When using the drawn safety production expense if it is the expense expenditure it shall directly
offset against the special reserve. For the fixed assets developed the incurred expenses collected through the "construction in
progress" shall be recognized as the fixed assets when the safety project is completed and ready for the expected use; Meanwhile the
special reserve shall be offset according to the cost of fixed asset development and the accumulative depreciation of the same
amount is recognized this fixed asset shall not be depreciated in the subsequent periods.27. Segmental report
The Company determines the Operation Subsection according to the internal organization structure management requirements
internal reporting system etc. The Operation Subsection of the Company refers to the constituent parts that can fulfill all the
following conditions:
1. This component can generate revenue and expenses in daily activities;
2. The management can regularly evaluate the operating performance of this component to decide resource allocation to it and
evaluate its performance;
3. Relevant accounting information such as financial status operating performance and cash flow of the component can be
acquired through analysis.28. Change in Significant Accounting Policies and Accounting Estimates
(1) Changes in significant accounting policies
√ Applicable □ Not applicable
Content of and Reasons for the Change in Accounting
Approval Process Remarks
Policies
As of January 1 2021 the Company has implemented
Accounting Standards for Enterprises No.21 – Leases
(hereinafter referred to as "new lease criteria") revised by
the Ministry of Finance. According to the regulations on
For details see the Announcement No.transition from the old criteria to the new no information
2021-027 published on
is adjusted in the comparable periods. Retroactive Not applicable.http://www.cninfo.com.cn on August 20
adjustment on retained earnings at the beginning of the
2021.reporting period and amount of other related item in the
financial statements shall be made due to the cumulative
impact of the new lease criteria implemented on the first
execution date.The new lease criteria have the following main effects on the financial statements of the Company on January 1 2021.Affected Assets and December 31 2020 January 1 2021
Liabilities Consolidated Subsidiaries Parent Company Consolidated Subsidiaries Parent Company
Right-of-use assets 3604870.23 3303921.56
Lease liabilities 3604870.23 3303921.56
The Company has implemented Accounting Standards for Enterprises No.14 – Revenue (hereinafter referred to as "new income
standards") revised by the Ministry of Finance since January 1 2020. Through which the fees incurred from performance of
obligations hereunder are included in operating cost. The new income standards has the following main effects on the financial
statements of the Company for the first half of 2021:
The amount of income statement affected from January to June 2021
Affected Income Statement Items
Consolidated Subsidiaries Parent Company
Operating cost 173980054.97 4952821.40
Sales expenses -173980054.97 -4952821.40
(2) Changes in significant accounting estimates
□ Applicable √ Not applicable
(3) The first implementation of new lease criteria from 2021 to adjust the relevant items of the financial
statements implemented at the beginning of the year for the first time
Applicable.Whether the accounts of the balance sheet at the beginning of the year shall be adjusted
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item December 31 2020 January 1 2021 Adjusted amount
Current Assets:
Cash and Bank
4927657236.24 4927657236.24
Balances
Deposit Reservation
for Balance
Loans to Banks and
Other Financial Institutions
Trading Financial
852227964.70 852227964.70
Assets
Derivative Financial
Assets
Notes receivable 332064366.59 332064366.59
Accounts receivable 1930930930.01 1930930930.01
Receivables
295393346.17 295393346.17
Financing
Prepayments 116063557.59 116063557.59
Item December 31 2020 January 1 2021 Adjusted amount
Premium Receivable
Reinsurance Accounts
Receivable
Reinsurance Contract
Reserves Receivable
Other Receivables 178610951.64 178610951.64
Including: interest
receivable
Dividends
Receivable
Buying Back the Sale
of Financial Assets
Inventories 3117042558.78 3117042558.78
Contract Assets
Holding for-sale
assets
Non-current Assets
Due within 1 Year
Other Current Assets 1777569473.96 1777569473.96
Subtotal of Current Assets 13527560385.68 13527560385.68
Non-current Assets:
Granting of loans and
advances
Investment in
Creditor's Rights
Investment in Other
Creditor's Rights
Long-term
Receivables
Long-term Equity
343378891.18 343378891.18
Investment
Investment in Other
22998147.55 22998147.55
Equity Instruments
Other Non-current
Financial Assets
Investment Property
Item December 31 2020 January 1 2021 Adjusted amount
Fixed Assets 13914151215.54 13914151215.54
Construction in progress 1325545420.56 1325545420.56
Productive Biological
Assets
Oil and gas assets
Right-of-use Assets 3604870.23 3604870.23
Intangible Assets 1407067129.87 1407067129.87
Development
Expenditure
Goodwill
Long-term Deferred
13369412.48 13369412.48
Expenses
Deferred Income Tax
65143706.00 65143706.00
Assets
Other Non-current
277793490.68 277793490.68
Assets
Subtotal of Non-current
17369447413.86 17373052284.09 3604870.23
Assets
Total Assets 30897007799.54 30900612669.77 3604870.23
Current Liabilities:
Short-term Borrowings 2363525192.53 2363525192.53
Loan from the Central
Bank
Loan from Banks and
Other Financial Institutions
Transactional
financial liabilities
Derivative Financial
Liabilities
Notes Payable 497644517.23 497644517.23
Accounts Payable 1463728316.04 1463728316.04
Received
Prepayments
Contract liabilities 56302537.11 56302537.11
Financial Assets Sold
for Repurchase
Item December 31 2020 January 1 2021 Adjusted amount
Deposit Taking and
Interbank Deposit
Receiving from
Vicariously Traded
Securities
Receiving from
Vicariously Sold Securities
Payroll payable 322646061.45 322646061.45
Tax Payable 268864472.38 268864472.38
Other Payables 129839228.89 129839228.89
Including: interest
payable
Dividends
Payable
Service Charge and
Commission Payable
Reinsurance Accounts
Payable
Holding for-sale
liabilities
Non-current
Liabilities Due within 1 1275888293.32 1275888293.32
Year
Other Current
4956463.49 4956463.49
Liabilities
Subtotal of Current
6383395082.44 6383395082.44
Liabilities
Non-current Liabilities:
Insurance Contract
Reserves
Long-term
4136875354.33 4136875354.33
Borrowings
Bonds Payable
Including:
Preferred Stocks
Perpetual
Bonds
Item December 31 2020 January 1 2021 Adjusted amount
Lease Liabilities 3604870.23 3604870.23
Long-term Payables
Long-term payroll
payable
Expected Liabilities
Deferred Income 873066181.34 873066181.34
Deferred Income Tax
99839731.45 99839731.45
Liabilities
Other Non-current
Liabilities
Subtotal of Non-current
5109781267.12 5113386137.35 3604870.23
Liabilities
Total Liabilities 11493176349.56 11496781219.79 3604870.23
Shareholders' Equity:
Share Capital 2148662300.00 2148662300.00
Other Equity
Instruments
Including:
Preferred Stocks
Perpetual
Bonds
Capital Reserves 4560522556.84 4560522556.84
Less: Treasury Share
Other Comprehensive
27803829.31 27803829.31
Incomes
Special Reserves 9550346.85 9550346.85
Surplus Reserves 1074331150.00 1074331150.00
General Risk
Reserves
Undistributed Profits 11515384739.95 11515384739.95
Total Shareholders' Equity
Attributable to the Parent 19336254922.95 19336254922.95
Company
Minority
67576527.03 67576527.03
Shareholders' Equity
Total Shareholders' Equity 19403831449.98 19403831449.98
Item December 31 2020 January 1 2021 Adjusted amount
Total Liabilities and
30897007799.54 30900612669.77 3604870.23
Shareholders' Equity
Description of the adjustment
According to Accounting Standards for Enterprises No.21 – Lease (CaiKuai [2018] No.35) issued by the Ministry of Finance in 2018
the Company has implemented the new lease criteria and made adjustment to the relevant items in the financial statements as of
January 1 2021.Balance Sheet of the Parent Company
Unit: RMB
Item December 31 2020 January 1 2021 Adjusted amount
Current Assets:
Cash and Bank
2790740377.97 2790740377.97
Balances
Trading Financial
851949945.63 851949945.63
Assets
Derivative Financial
Assets
Notes receivable 332064366.59 332064366.59
Accounts receivable 704086691.03 704086691.03
Receivables
Financing
Prepayments 1631550.49 1631550.49
Other Receivables 4247680763.92 4247680763.92
Including: interest
receivable
Dividends
Receivable
Inventories 566205506.19 566205506.19
Contract Assets
Holding for-sale
assets
Non-current Assets
Due within 1 Year
Other Current Assets 552859738.36 552859738.36
Subtotal of Current Assets 10047218940.18 10047218940.18
Non-current Assets:
Item December 31 2020 January 1 2021 Adjusted amount
Investment in
Creditor's Rights
Investment in Other
Creditor's Rights
Long-term
Receivables
Long-term Equity
6372637172.92 6372637172.92
Investment
Investment in Other
22998147.55 22998147.55
Equity Instruments
Other Non-current
Financial Assets
Investment Property
Fixed Assets 737784631.31 737784631.31
Construction in progress
Productive Biological
Assets
Oil and gas assets
Right-of-use Assets 3303921.56 3303921.56
Intangible Assets 105425506.93 105425506.93
Development
Expenditure
Goodwill
Long-term Deferred
5919401.23 5919401.23
Expenses
Deferred Income Tax
42345228.44 42345228.44
Assets
Other Non-current
7202988.32 7202988.32
Assets
Subtotal of Non-current
7294313076.70 7297616998.26 3303921.56
Assets
Total Assets 17341532016.88 17344835938.44 3303921.56
Current Liabilities:
Short-term Borrowings 1243628965.48 1243628965.48
Transactional
financial liabilities
Item December 31 2020 January 1 2021 Adjusted amount
Derivative Financial
Liabilities
Notes Payable 155953161.50 155953161.50
Accounts Payable 100374347.92 100374347.92
Received
Prepayments
Contract liabilities 8494783.78 8494783.78
Payroll payable 82688797.50 82688797.50
Tax Payable 33578246.55 33578246.55
Other Payables 15543517.50 15543517.50
Including: interest
payable
Dividends
Payable
Holding for-sale
liabilities
Non-current
Liabilities Due within 1 635930890.44 635930890.44
Year
Other Current
1104321.89 1104321.89
Liabilities
Subtotal of Current
2277297032.56 2277297032.56
Liabilities
Non-current Liabilities:
Long-term Borrowings 2209521076.40 2209521076.40
Bonds Payable
Including:
Preferred Stocks
Perpetual
Bonds
Lease Liabilities 3303921.56 3303921.56
Long-term Payables
Long-term payroll
payable
Expected Liabilities
Deferred Income 18884041.56 18884041.56
Item December 31 2020 January 1 2021 Adjusted amount
Deferred Income Tax
13011703.03 13011703.03
Liabilities
Other Non-current
Liabilities
Subtotal of Non-current
2241416820.99 2244720742.55 3303921.56
Liabilities
Total Liabilities 4518713853.55 4522017775.11 3303921.56
Shareholders' Equity:
Share Capital 2148662300.00 2148662300.00
Other Equity
Instruments
Including:
Preferred Stocks
Perpetual
Bonds
Capital Reserves 4300852875.45 4300852875.45
Less: Treasury Share
Other Comprehensive
506954.43 506954.43
Incomes
Special Reserves
Surplus Reserves 1074331150.00 1074331150.00
Undistributed Profits 5298464883.45 5298464883.45
Total Shareholders' Equity 12822818163.33 12822818163.33
Total Liabilities and
17341532016.88 17344835938.44 3303921.56
Shareholders' Equity
Description of the adjustment
According to Accounting Standards for Enterprises No.21 – Lease (CaiKuai [2018] No.35) issued by the Ministry of Finance in 2018
the Company has implemented the new lease criteria and made adjustment to the relevant items in the financial statements as of
January 1 2021.
(4) Explanation of data comparison for early stage of retroactive adjustment due to first implementation of
the new lease criteria from 2021
□ Applicable √ Not applicable
Ⅵ. Taxes
1. Major Tax Categories and Tax Rates
Tax Type Taxation Basis Tax Rate
13% 10% 9% 6% 5% and 19%; theAccording to the provisions of the tax policy of “tax exemption tax credit andlaw the sales tax shall be calculated on tax refund” is implemented for the
the basis of the income by selling goods export goods with the tax refund rate of
and taxable services. After deducting the 0%–13%; the policy of "refund after
VAT
input tax that is allowed to be deducted collection" is implemented for the export
from the sales tax in the current period goods of the subsidiary company
the difference shall be the value-added Zhejiang NHU Import and Export Co.tax (VAT). Ltd. with the tax refund rate of
0%–13%.Urban Maintenance and Construction
Actually paid turnover tax 5% 7%
Tax
Enterprise Income Tax Taxable income 15% 25%
Four-level extra progressive rate is
adopted. Calculated at a rate of 30% for
added value not exceeding 50% of the
deducted item amount; 40% for added
Compensable transfer of the added value value exceeding 50% of the deducted
arising from the right to use state-owned item amount and not exceeding 100% of
Land VAT
land and property rights of ground the deducted item amount; 50% for
premises and other attached structures added value exceeding 100% of the
deducted item amount and not exceeding
200% of the deducted item amount; 60%
for added value exceeding 200% of the
deducted item amount
RMB 3.6/sq.m.; RMB 4/sq.m.; RMB
Calculated based on the corresponding
6/sq.m.; RMB 7.2/sq.m.; RMB 8/sq.m.;
Land Usage Tax tax of the actual land area occupied and
RMB 9/sq.m.; RMB 10/sq.m.; RMB
levied per year and paid in installments
13/sq.m.For the advalorem tax method
calculated by 1.2% of the residual
following the subtraction of 30% of the
House Property Tax 1.2% 12%
original value of the property; for the
leasing income method calculated by
12% of the leasing income
Education Surcharges Actually paid turnover tax 3%
Local Education Surcharges Actually paid turnover tax 2%
Tax Type Taxation Basis Tax Rate
Solidarity Surcharge [Note] The amount of income tax payable 5.50%
Trade Tax [Note] Taxable income 13.30%
[Note] Applicable to NHU EUROPE GmbH NHU PERFORMANCE MATERIALS GMBH and Bardoterminal GmbH
If there are multiple taxpayers with different enterprise income tax rates the disclosure shall be explained
Name of Taxpayer Income Tax Rate
The Company 15%
Shangyu Bio-Chem 15%
Zhejiang Special Materials 15%
Shandong Pharmaceutical 15%
Shandong Amino-acids 15%
Shandong Vitamins 15%
NHU EUROPE GmbH 15%
NHU PERFORMANCE MATERIALS GMBH 15%
Bardoterminal GmbH 15%
Other taxpayers other than those mentioned above 25%
2. Preferential Tax Rate
According to the High and New Technology Enterprise Certificate (GR202033003531) issued by Zhejiang Provincial
Department of Science and Technology Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service State
Taxation Administration the Company is certified as a high and new technology enterprise and enjoys the preferential income tax
policies for hi-tech enterprises from 2020 to 2022. The enterprise income tax is calculated at a rate of 15% in 2021.According to the High and New Technology Enterprise Certificate (GR201933005736) issued by Zhejiang Provincial
Department of Science and Technology Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service State
Taxation Administration the subsidiary company SHANGYU NHU BIO-CHEM CO. LTD. is certified as a high and new
technology enterprise and enjoys the preferential income tax policies for hi-tech enterprises from 2019 to 2021. The enterprise
income tax is calculated at a rate of 15% in 2021.The High and New Technology Enterprise Certificate (2018 to 2020) for Zhejiang NHU Construction Material Co. Ltd. the
subsidiary company has expired. The enterprise income tax is prepaid at a rate of 15% in 2021 according to Announcement of the
State Administration of Taxation on Issues Concerning the Implementation of the Preferential Income Tax Policies regarding
High-Tech Enterprises (No. 24 [2017]).According to the High and New Technology Enterprise Certificate (GR202037001084) issued by Department of Science &
Technology of Shandong Province Shandong Provincial Department of Finance and Shandong Provincial Tax Service State
Taxation Administration the subsidiary company Shandong NHU Pharmaceutical Co. Ltd. is certified as a high and new
technology enterprise and enjoys the preferential income tax policies for hi-tech enterprises from 2020 to 2022. The enterprise
income tax is calculated at a rate of 15% in 2021.According to the High and New Technology Enterprise Certificate (GR202037000197) issued by Department of Science and
Technology of Shandong Province Shandong Provincial Department of Finance and Shandong Provincial Tax Service State
Taxation Administration the subsidiary company Shandong NHU Vitamins Co. Ltd. is certified as a high and new technology
enterprise and enjoys the preferential income tax policies for hi-tech enterprises from 2020 to 2022. The enterprise income tax is
calculated at a rate of 15% in 2021.The High and New Technology Enterprise Certificate (2018 to 2020) for Shandong NHU Amino-acids Co. Ltd. subsidiary
company has expired. The enterprise income tax is prepaid at a rate of 15% in 2021 according to Announcement of the State
Administration of Taxation on Issues Concerning the Implementation of the Preferential Income Tax Policies regarding High-Tech
Enterprises (No. 24 [2017]).Ⅶ. Notes to the Items in the Consolidated Financial Statement
Note: The opening balance of the notes to the items in the consolidated financial statement indicates the data of January 1 2021
adjusted by the balance at the end of last year according to the new lease standards.1. Cash and Bank Balances
Unit: RMB
Item Closing Balance Opening Balance
Cash on Hand 17148.82 10735.55
Bank Balance 6182146348.75 4669296040.54
Other Cash and Bank Balances 230449397.69 258350460.15
Total 6412612895.26 4927657236.24
Including: Total Amount Deposited in
13496972.20 21518199.53
Overseas Banks
Other notes
Monetary Funds - Other Monetary Funds
Unit: RMB
Project At the end of the reporting period At the beginning of the reporting period
Bank Acceptance Bill Deposit 205331116.11 233849274.66
L/C Deposit 22854163.27 23350000.00
Deposit for Project Labor Wages 1653668.82 741108.87
Construction Bond 404439.49 404076.62
ETC Deposit 6000.00 6000.00
Guarantee Deposit for Water Charges 200010.00 -
Subtotal 230449397.69 258350460.15
2. Trading Financial Assets
Unit: RMB
Item Closing Balance Opening Balance
Financial Assets at Fair Value through
1326426200.12 852227964.70
Profit or Loss in This Period
Including: Principal-Protected Floating
1320000000.00 850000000.00
-Income Financial Products
Including: Derivative Financial Assets 6426200.12 2227964.70
Total 1326426200.12 852227964.70
3. Notes Receivable
(1) Disclosure of Notes Receivable
Unit: RMB
Item Closing Balance Opening Balance
Bank Acceptance Notes 460973358.32 332064366.59
Total 460973358.32 332064366.59
Unit: RMB
Balance at the End of the Period Opening Balance
Bad Debt Bad Debt
Book Balance Book balance
Provision Provision
Acc
Category Accr Book rue Book
ued
Percentag Am Value Percentag Amo d Value
Amount Prop Amount
e ount e unt Pro
ortio
port
n
ion
Notes
Receivable
with the
Bad Debt
4609733 332064 332064
Provision 460973358.32 100.00% 100.00%
58.32 366.59 366.59
Accrued
Based on
Combinatio
ns
Bank 4609733 332064 332064
460973358.32 100.00% 100.00%
Acceptance 58.32 366.59 366.59
Bill
4609733 332064 332064
Total 460973358.32 100.00% 100.00%
58.32 366.59 366.59
2) Notes Receivable That the Company Has Pledged at the End of the Period
Unit: RMB
Item Pledged Amount by the End of the Period
Bank Acceptance Notes 431546440.19
Total 431546440.19
(3) Notes Receivable that the Company has Endorsed or Discounted at the End of the Period and that Have
Not Yet Expired on the Balance Sheet Date
Unit: RMB
Derecognised Amount at the End of the Not Derecognised Amount at the End of
Item
Period Period
Bank Acceptance Notes 67677561.91
Total 67677561.91
Other notes
The commercial bank is the acceptor of bank acceptance bill. The possibility that no payment is made when the bank
acceptance bill expires is low so the Company derecognizes the endorsed or discounted bank acceptance bill. If no payment is made
when the bank acceptance bill expires the Company also bears joint responsibilities for the holder.4. Accounts Receivable
(1) Categorical Disclosure of Accounts Receivable
Unit: RMB
Balance at the End of the Period Opening Balance
Bad Debt Bad Debt
Book Balance Book balance
Provision Provision
Category
Accrue Book Accru Book
Percentag Amoun d Value Amoun Percenta ed value
Amount Amount
e t Proport t ge Propo
ion rtion
Accounts
Receivables 26401777 137301 250287 203746 106534 1930930
100.00% 5.20% 100.00% 5.23%
with the 19.11 631.99 6087.12 4941.46 011.45 930.01
Bad Debt
Provision
Accrued
Based on
Combinatio
ns
26401777 137301 250287 203746 106534 1930930
Total 100.00% 5.20% 100.00% 5.23%
19.11 631.99 6087.12 4941.46 011.45 930.01
Bad debt provision based on combinations: aging
Unit: RMB
Balance at the End of the Period
Name
Book balance Bad Debt Provision Accrued proportion
Within 1 Year 2616053456.50 130802672.83 5.00%
1-2 Years 21909191.81 4381838.36 20.00%
2-3 years 489750.00 391800.00 80.00%
3 years or above 1725320.80 1725320.80 100.00%
5 years or above 1725320.80 1725320.80 100.00%
Total 2640177719.11 137301631.99
Disclosure by age
Unit: RMB
Aging Balance at the End of the Period
Within 1 Year (Including 1 Year) 2616053456.50
1 to 2 Years 21909191.81
2 to 3 Years 489750.00
3 years or above 1725320.80
5 Years or above 1725320.80
Total 2640177719.11
(2) Provision for Bad Debts Accrued Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period Balance at the
Opening
Category Recovered or End of the
Balance Accrued Written Off Others
Reversed Period
Bad Debt
Provision 106534011.45 30767620.54 137301631.99
Based on
Combinations
Total 106534011.45 30767620.54 137301631.99
(3) Accounts Receivable of the Top Five Balances at the End of the Period Collected by Indebted Parties
Unit: RMB
Balance of Accounts As a Percentage of Total Other
Bad Debt Provision at the End
Name of Unit Receivable at the End of the Receivables at the End of the
of the Period
Period Period
Customer 1 513125231.63 19.43% 25656261.58
Customer 2 252935288.07 9.58% 15933143.18
Customer 3 156771329.88 5.94% 7838566.49
Customer 4 88892708.00 3.37% 4444635.40
Customer 5 68767516.46 2.60% 3438375.82
Total 1080492074.04 40.92%
5. Receivables Financing
Unit: RMB
Item Closing Balance Opening Balance
Notes receivable 33076624.55 295393346.17
Total 33076624.55 295393346.17
The increase and decrease of accounts receivable financing in the current period and the changes in the fair value
□ Applicable √ Not applicable
Please refer to the disclosing methods of other receivables for the information disclosure of depreciation provisions if the
depreciation provisions of accounts receivable financing are made according to the general model of expected credit losses:
□ Applicable √ Not applicable
Other notes:
(1) Notes receivable pledged by the Company at the end of the period
Project Pledged Amount by the End of the Period
Bank Acceptance Bill 8890529.21
Subtotal 8890529.21
(2) Notes receivable that the Company has endorsed or discounted at the end of the period and that have not yet expired on the
balance sheet date
Project Derecognised Amount at the End of the Period
Bank Acceptance Bill 268605122.02
Subtotal 268605122.02
The commercial bank is the acceptor of bank acceptance bill. The possibility that no payment is made when the bank
acceptance bill expires is low so the Company derecognizes the endorsed or discounted bank acceptance bill. If no payment is made
when the bank acceptance bill expires the Company also bears joint responsibilities for the holder.6. Prepayments
(1) Prepayments Listed by Age
Unit: RMB
Closing Balance Opening Balance
Aging
Amount Percentage Amount Percentage
Within 1 Year 161544227.31 99.43% 115835410.14 99.81%
1 to 2 Years 708638.85 0.43% 108449.06 0.09%
2 to 3 Years 111959.82 0.07% 34278.04 0.03%
3 years or above 109843.00 0.07% 85420.35 0.07%
Total 162474668.98 -- 116063557.59 --
(2) Advance Payment of the Top Five Closing Balances by Prepayment Parties
Unit: RMB
Name of Unit Book Balance As a Percentage of Prepayments (%)
Supplier 1 27612147.10 16.99
Supplier 2 21952237.36 13.51
Supplier 3 11136036.93 6.85
Supplier 4 7535416.79 4.64
Supplier 5 6461700.00 3.98
Subtotal 74697538.18 45.97
7. Other Receivables
Unit: RMB
Item Closing Balance Opening Balance
Other Receivables 210828040.94 178610951.64
Total 210828040.94 178610951.64
1) Other Receivables Categorized by the Nature of the Funds
Unit: RMB
Nature of the funds Closing balance Opening Balance
Guarantee Deposit 126081892.13 126960566.33
Export Refunds 79414033.07 51751067.61
Refundable VAT 7897919.91 2139904.45
Employee Imprest 6002917.00 4764737.00
Temporary Payments Receivable 2194826.13 2470070.51
Others 857757.88 584839.49
Total 222449346.12 188671185.39
2) Bad Debt Provision
Unit: RMB
Phase One Phase Two Phase Three
Expected Credit Losses
Expected Credit Expected credit losses for
Bad Debt Provision for the Entire Extension Total
Losses in the Next the entire extension (with
(without Credit
12 Months credit impairment)
Impairment)
Balance on January 1
573660.51 1522658.59 7963914.65 10060233.752021
Balance in the Current
Period on January 1 —— —— —— ——2021
--Transfer to Phase
-148259.93 148259.93
Two
--Transfer to Phase
-1817790.41 1817790.41
Three
Provisions in the
259406.72 739911.59 561753.12 1561071.43
Current Period
Balance on June 30
684807.30 593039.70 10343458.18 11621305.182021
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging Closing Balance
Within 1 Year (Including 1 Year) 109422899.02
1 to 2 Years 2965198.51
2 to 3 Years 9088952.04
3 years or above 100972296.55
3 to 4 Years 1031302.95
4 to 5 Years 99271245.29
5 Years or above 669748.31
Total 222449346.12
3) Provision for Bad debts Accrued Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
Balance Accrued Written Off Others Balance
Reversed
Bad Debt
Provision
10060233.75 1561071.43 11621305.18
Based on
Combinations
Total 10060233.75 1561071.43 11621305.18
4) Other Receivables of the Top Five Closing Balances Collected by Indebted Parties
Unit: RMB
As a Percentage of
Bad debt provision
Nature of the Balance at the End Total Other
Name of Unit Aging at the end of the
Funds of the Period Receivables at the
period
End of the Period
Weifang City
Natural Resources
and Planning Guarantee Deposit 97900000.00 4 years or above 44.01%
Bureau Binhai
Branch
State Taxation
Administration
Export Refunds 79414033.07 Within 1 year 35.70%
(Export Refunds
Receivable)
Federal Central
Refundable VAT 7897919.91 Within 1 Year 3.55%
Tax Office
Suihua Labor 850000.00 1-2 years 0.38% 170000.00
Security
Guarantee Deposit 8328490.53 2-3 years 3.74% 6662792.42
Supervision
Bureau 930000.00 3-4 Years 0.42% 930000.00
Xinchang County
Guarantee Deposit 5000000.00 1-2 years 2.25%
Finance Bureau
Total -- 200320443.51 -- 90.05% 7762792.42
8. Inventories
Does the Company follow the disclosure requirements in the real estate industry?
No
(1) Categories of Inventories
Unit: RMB
Closing Balance Opening Balance
Provision for Provision for
Impairment of Impairment of
Item Inventories or Inventories or
Book Balance Book Value Book balance Book Value
Provision for Provision for
Impairment of Impairment of
Performance Cost Performance Cost
Raw
427308799.26 802452.27 426506346.99 558843825.21 986354.24 557857470.97
Materials
Work-in-prog
888466686.58 888466686.58 820838241.10 820838241.10
ress
Merchandise 1528329198.6992312.48 1521336885.78 1201225837.45 10578367.06 1190647470.39
Inventories 26
Goods in
38247731.11 38247731.11 50257257.15 50257257.15
Transit
Development
394470197.57 394470197.57 294084933.10 294084933.10
Cost
Developed
124217237.05 124217237.05 129785192.22 129785192.22
Product
Commission
8917276.62 8917276.62 4033866.34 4033866.34
ed Materials
Package 12251594.46 12251594.46 15062156.67 15062156.67
Low-value
Consumption 108275685.95 108275685.95 54475970.84 54475970.84
Goods
3530484406.Total 7794764.75 3522689642.11 3128607280.08 11564721.30 3117042558.7886
(1) Inventories—Development Cost
Item Name Estimated Total At the beginning of the reporting At the end of the reporting period
Investment period
Boao NHU Resort Hotel 550000000 33575305.88 33575305.88
Weifang NHU Town II 398531400 260509627.22 360894891.69
Subtotal 294084933.10 394470197.57
(2) Inventories—Developed Product
Completion At the beginning of Increased in the Decreased in the Current At the end of the
Item Name
Time the reporting period Current Period Period reporting period
Boao NHU Resort
2014.12 129785192.22 4049073.54 9617028.71 124217237.05
Center
Subtotal 129785192.22 4049073.54 9617028.71 124217237.05
(3) Provision for Impairment of Inventories and Provision for Impairment of Performance Cost
Unit: RMB
Increased in the Current Period Decreased in the Current Period
Opening Closing
Item Reversals or
Balance Accrued Others Others Balance
Write-offs
Raw materials 986354.24 183901.97 802452.27
Merchandise
10578367.06 6714482.90 10300537.48 6992312.48
Inventories
Total 11564721.30 6714482.90 10484439.45 7794764.75
Basis for determining the net realizable value and reason for the reversal or write-off of inventories depreciation provision in
the current period
Reason for the Reversal of Reason for the Write-off of Inventories
Basis for Determining the Net
Project Inventories Depreciation Depreciation Provision in the Current
Realizable Value:
Provision in the Current Period Period
The net realizable value is
determined by the amount after
Increase in the net realizable The inventories for inventories
deducting the estimated cost of
value of inventories for depreciation provision at the beginning
Raw Materials completion estimated selling
inventories depreciation of this period has been sold or used in
expenses and relevant taxes from
provision in previous periods the current period.the estimated selling price of
finished goods.The net realizable value is
determined by the amount after Increase in the net realizable The inventories for inventories
Merchandise deducting the estimated selling value of inventories for depreciation provision at the beginning
expenses and relevant taxes from inventories depreciation of this period has been sold in the
Inventories
the estimated selling price of provision in previous periods current period.finished goods.9. Other Current Assets
Unit: RMB
Item Closing Balance Opening Balance
Bank Financial Products and Structured
200000000.00 950000000.00
Deposits
Prepaid VAT or Input Tax to Be Credited 527575591.92 817273751.05
Prepaid Urban Maintenance and
16532.22
Construction Tax
Prepaid Enterprise Income Tax 5256726.36 5193417.21
Deferred Insurance Premium 5295591.65 5056905.47
Deferred Rent Fee 12335.78
Prepaid Education Surcharges 9919.36
Prepaid Local Education Surcharges 6612.87
Total 738127909.93 1777569473.96
10. Long-term Equity Investment
Unit: RMB
Decrease/Increase in the Current Period
Investment
Closing
Opening Profit and Adjustment Cash Closing
The Provision balance of
Balance Loss on Other Other Dividends Balance
Invested Investments Investment for provision for
(Book Recognized Comprehen Changes or Profit Others (Book
Entity Increased Decreased Impairment decline in
Value) under the sive in Equity Declared to Value)
Accrued value
Equity Income Distribute
Method
Affiliate
Zhejiang
Chunhui
199358 16864292.7 216222
Environ
330.80 9 623.59
mental
Protectio
n Energy
Co. Ltd.Zhejiang
Sanpo
Polymer
Co. Ltd.Shandon
g Bin'an
639106 625801
Technolo -133045.81
4.12 8.31
gy Co.Ltd.DSM
NHU
Engineeri
ng
Materials
(Zhejiang
) Co.Ltd.Zhejiang
Saiya
983097 100425
Chemical 2115473.15
10.69 183.84
Materials
Co. Ltd.CysBio 393197 358051
-3124190.21 -390492.14
ApS 85.57 03.22
343378 15722529.9 358710
Total -390492.14
891.18 2 928.96
11. Investment in Other Equity Instruments
Unit: RMB
Item Closing Balance Opening Balance
Second Pharma Co.Ltd. 7790147.55 7790147.55
Shanghai NewMargin Yongjin Eqiuty
15208000.00 15208000.00
Enterprise
Total 22998147.55 22998147.55
12. Fixed assets
Unit: RMB
Item Closing Balance Opening Balance
Fixed Assets 13752889539.13 13914151215.54
Total 13752889539.13 13914151215.54
(1) Fixed Assets
Unit: RMB
Housing and Universal Means of
Item Special equipment Total
building equipment transport
I. Original Book Value
1. Opening Balance 5471048302.28 148005902.83 12294355532.66 25738968.49 17939148706.26
2. Increased in the
270285525.10 13966177.98 175413843.67 678422.47 460343969.22
Current Period
(1) Purchase 183696182.85 7605086.56 120215443.53 630413.62 312147126.56
(2) Transferred
From Construction in 86589342.25 6361091.42 55198400.14 48008.85 148196842.66
Progress
3. Decreased in the
16402192.06 2467122.74 84383612.00 1178037.74 104430964.54
Current Period
(1) Disposal or
16402192.06 2467122.74 84383612.00 1178037.74 104430964.54
Scrapping
4. Closing Balance 5724931635.32 159504958.07 12385385764.33 25239353.22 18295061710.94
II. Accumulated
Depreciation
1. Opening Balance 522190479.09 84230573.73 3401522313.16 16291440.70 4024234806.68
2. Increased in the
79152254.88 10553025.09 487259954.40 1114250.87 578079485.24
Current Period
(1) Accrual 79152254.88 10553025.09 487259954.40 1114250.87 578079485.24
3. Decreased in the
15770.27 2976815.08 57052287.43 859931.37 60904804.15
Current Period
(1) Disposal or
15770.27 2976815.08 57052287.43 859931.37 60904804.15
Scrapping
4. Closing Balance 601326963.70 91806783.74 3831729980.13 16545760.20 4541409487.77
III. Provision for
Impairment
1. Opening Balance 16110.64 1141.64 729136.75 16295.01 762684.04
2. Increased in the
Current Period
(1) Accrual
3. Decreased in the
Current Period
(1) Disposal or
Scrapping
4. Closing Balance 16110.64 1141.64 729136.75 16295.01 762684.04
IV. Book Value
1. Closing Book
5123588560.98 67697032.69 8552926647.45 8677298.01 13752889539.13
Value
2. Opening Book
4948841712.55 63774187.46 8892104082.75 9431232.78 13914151215.54
Value
(2) Temporarily Idle Fixed Assets
Unit: RMB
Original Book Accumulated Provision for
Item Book value Remarks
Value Depreciation decline in value
Special equipment 47615262.92 23585973.70 24029289.22
(3) Fixed Assets Leased by Operating Lease
Unit: RMB
Item Closing Book Value
Housing and building 28692265.78
(4) Fixed Assets with Certificates of Title Not Granted
Unit: RMB
Reasons for Certificates of Title Not
Item Book Value
Granted
Housing and building 1454022332.76 Related procedures not completed
13. Construction in progress
Unit: RMB
Item Closing Balance Opening Balance
Construction in progress 2295793123.43 1325545420.56
Total 2295793123.43 1325545420.56
(1) Details of Construction in Progress
Unit: RMB
Closing Balance Opening Balance
Item Provision for Provision for
Book balance Book value Book balance Book value
decline in value decline in value
Shandong
Industrial Park 15516662.57 15516662.57 4682266.37 4682266.37
Project I
Heilongjiang
43592931.39 43592931.39 24493344.31 24493344.31
Xinhao Project II
Hongweisu
207846117.83 207846117.83 125379657.49 125379657.49
Project
Auxiliary
Materials
Supporting
Project for
62373927.07 62373927.07
Heilongjiang
NHU
Biofermentation
Industrial Park
Methionine
Project with
Annual 24427295.25 24427295.25 16754982.19 16754982.19
Production of
250000 Tons
Shandong
Industrial Park 216364549.21 216364549.21 215871416.04 215871416.04
Project 615
Shandong
Industrial Park 75335108.66 75335108.66 71756558.71 71756558.71
Project 617A
Shandong
Industrial Park 72520845.39 72520845.39 47927444.49 47927444.49
Project 603
Shandong
Industrial Park 57682975.41 57682975.41 16423904.95 16423904.95
Project MH
Shangyu
Industrial Park 114250390.87 114250390.87 43358686.84 43358686.84
Project PPS
Shandong
Industrial Park 999898646.95 999898646.95 448565055.49 448565055.49
Project TMB
Biochemical
Engineering
Workshop
63214354.21 63214354.21 58503795.45 58503795.45
Renovation and
Promotion
Project
Daming
Healthcare 87487231.15 87487231.15
Project
Other Projects 317656014.54 317656014.54 189454381.16 189454381.16
Total 2295793123.43 2295793123.43 1325545420.56 1325545420.56
(2) Changes in Significant Construction in Progress
Unit: RMB
Includin
Project Capitaliz
g:
Other Accumul Accumul ation
Transferr Capitaliz
Increase Amounts ative ated Rate of
ed Fixed ed
Item Opening d in the Decrease Closing Investme Project Capitaliz the Capital
Budget Assets in Interest
Name Balance Current d in Balance nt as a Progress ed Interest Source
Current Amount
Period Current Percenta Interest in the
Period in the
Period ge of the Amount Current
Current
Budget Period
Period
Shandong
Industrial 311600 4682266 191958 170493 665647 155166 162608
84.20% 99.00% Others
Park 0000.00 .37 04.88 8.01 0.67 62.57 33.33
Project I
Heilongjia
107462 2449334 216638 256428 435929
ng Xinhao 0.00 42.95% 52.00% Others
500.00 4.31 67.33 0.25 31.39
Project II
Hongweis 478229 1253796 824664 207846
0.00 0.00 43.46% 72.00% Others
u Project 800.00 57.49 60.34 117.83
Auxiliary
Materials 873961 6237392 130544 754283
0.00 0.00 86.31% 100.00% Others
Supportin 00.00 7.07 60.73 87.80
g Project
for
Heilongjia
ng NHU
Biofermen
tation
Industrial
Park
Methionin
e Project
Fund
with
536984 1675498 767231 244272 raised
Annual 0.00 0.00 32.14% 40.00%
2200.00 2.19 3.06 95.25 with
Production
shares
of 250000
Tons
Shandong
Industrial
209355 2158714 493133. 216364
Park 0.00 0.00 103.35% 97.50% Others
000.00 16.04 17 549.21
Project615
Shandong
Industrial
850000 7175655 357854 753351
Park 0.00 0.00 88.63% 95.00% Others
00.00 8.71 9.95 08.66
Project
617A
Shandong
Industrial
972803 4792744 245934 725208
Park 0.00 0.00 74.55% 88.00% Others
00.00 4.49 00.90 45.39
Project603
Shandong
Industrial
283501 1642390 412590 576829
Park 0.00 0.00 20.35% 37.00% Others
300.00 4.95 70.46 75.41
Project
MH
Shangyu
Industrial
709000 4335868 708917 114250
Park 0.00 0.00 16.12% 31.00% Others
000.00 6.84 04.03 390.87
Project
PPS
Shandong
123160 4485650 567038 157051 999898 153187 153187
Industrial 0.00 82.46% 92.00% 4.28% Others
5900.00 55.49 772.65 81.19 646.95 5.00 5.00
Park
Project
TMB
Biochemic
al
Engineerin
g
691100 5850379 471055 632143
Workshop 0.00 0.00 91.47% 99.00% Others
00.00 5.45 8.76 54.21
Renovatio
n and
Promotion
Project
Daming
457720 874872 874872
Healthcare 19.11% 30.00% Others
700.00 31.15 31.15
Project123015
1136091 944105 954027 665647 197813 177927 153187
Total 03800.0 -- -- --
039.40 327.41 87.25 0.67 7108.89 08.33 5.000
14. Right-of-use Assets
Unit: RMB
Item Buildings for Leasing Total
I. Original Book Value:
1. Opening Balance 3604870.23 3604870.23
2. Increased in the Current Period 1858538.29 1858538.29
3. Decreased in the Current Period 0.00 0.00
4. Closing Balance 5463408.52 5463408.52
II. Accumulated Depreciation
1. Opening Balance
2. Increased in the Current Period 448385.93 448385.93
(1) Accrual
3. Decreased in the Current Period
(1) Disposal
4. Closing Balance 448385.93 448385.93
III. Book Value
1. Closing Book Value 5015022.59 5015022.59
2. Opening Book Value 3604870.23 3604870.23
Note: For the difference between the beginning of the reporting period and the end of the previous year (December 31 2020) see
Chapter V.28 of this Section.15. Intangible Assets
(1) Details of Intangible Assets
Unit: RMB
Non-patented
Item Land use rights Patent right Softwares Total
technology
I. Original Book
Value
1. Opening
1535867143.93 15634893.87 1880000.00 24620367.22 1578002405.02
Balance
2. Increased
in the Current 5148804.91 2152689.01 1043762.83 8345256.75
Period
(1)
5148804.91 2152689.01 1043762.83 8345256.75
Purchase
(2) Internal
Research and
Development
(3)
Acquisition
3. Decreased in
the Current Period
(1)
Disposal
4. Closing
1541015948.84 17787582.88 1880000.00 25664130.05 1586347661.77
Balance
II. Accumulated
Amortization
1. Opening
156112743.86 1297796.00 41777.78 13482957.51 170935275.15
Balance
2. Increased
in the Current 15117645.60 622354.44 62666.67 928746.11 16731412.82
Period
(1) Accrual 15117645.60 622354.44 62666.67 928746.11 16731412.82
3. Decreased
in the Current
Non-patented
Item Land use rights Patent right Softwares Total
technology
Period
(1)
Disposal
4. Closing
171230389.46 1920150.44 104444.45 14411703.62 187666687.97
Balance
III. Book Value
1. Closing
1369785559.38 15867432.44 1775555.55 11252426.43 1398680973.80
Book Value
2. Opening
1379754400.07 14337097.87 1838222.22 11137409.71 1407067129.87
Book Value
The intangible assets from internal research and development of the Company at the end of this period account for 0.00% of the
intangible assets balance.
(2) Land Use Rights with Certificates of Title Not Granted
Unit: RMB
Reasons for Certificates of Title Not
Item Book Value
Granted
Land use rights 5574257.00 Related procedures not completed
16. Goodwill
(1) Original Book Value of Goodwill
Unit: RMB
Increased in the
Decreased in the Current Period
The Invested Entity or current period
Opening
Matters Which Formed Generated from Foreign Currency Closing Balance
Balance
Goodwill Business Disposal Translation
Combination Difference
Bardoterminal GmbH 2307297.60 97409.65 2209887.95
Total 2307297.60 97409.65 2209887.95
(2) Provision of Goodwill Impairment
Unit: RMB
The Invested Entity or Opening Increased in the Decreased in the Current Period Closing Balance
Matters Which Formed Balance current period
Goodwill
Accrued Disposal Decreased
Bardoterminal GmbH 2307297.60 97409.65 2209887.95
Total 2307297.60 97409.65 2209887.95
17. Long-term Deferred Expenses
Unit: RMB
Increased in the Amortized in the Other Amounts
Item Opening Balance Closing Balance
Current Period Current Period Decreased
Renovation Cost 13230866.20 1464368.63 1889541.83 12805693.00
Gardening
89881.48 44940.78 44940.70
Expense
Site Leveling 48664.80 8110.80 40554.00
Total 13369412.48 1464368.63 1942593.41 12891187.70
18. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Not Written Off
Unit: RMB
Closing Balance Opening Balance
Item Deductible temporary Deferred Income Tax Deductible temporary Deferred Income Tax
difference Assets difference Assets
Provision for
58537569.64 10555874.72 41096831.73 6778514.76
Impairment of Assets
Unrealized Profit from
204559627.50 31125345.34 180352009.29 28516508.65
Internal Transactions
Deferred Income 129000956.57 19690804.36 132441298.90 19866194.83
Fixed Assets
Depreciation 52299404.53 7844910.68 66549918.38 9982487.76
Difference
Total 444397558.24 69216935.10 420440058.30 65143706.00
(2) Deferred Income Tax Liabilities Not Written Off
Unit: RMB
Closing Balance Opening Balance
Item Taxable Temporary Deferred Income Tax Taxable temporary Deferred Income Tax
Difference Liabilities difference Liabilities
Fixed Assets Tax Basis
433962301.69 77606551.14 391333594.21 71800274.33
Difference
Profit before Tax of
NHU (HONGKONG)
311258629.20 46688794.38 184979768.52 27746965.28
TRADING
COMPANY LIMITED
Changes at Fair Value
of Trading Financial
Instruments and 1547205.80 232080.87 1949945.63 292491.84
Derivative Financial
Instruments
Total 746768136.69 124527426.39 578263308.36 99839731.45
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Offset
Unit: RMB
Amount of Deferred Balance of Deferred Amount of Deferred Balance of Deferred
Income Tax Assets Income Tax Assets or Income Tax Assets Income Tax Assets or
Item Offset against Liabilities after Offset Offset against Liabilities after Offset
Liabilities at the End of at the End of the Liabilities at the Start at the Start of the
the Period Period of the Period Period
Deferred Income Tax
69216935.10 65143706.00
Assets
Deferred Income Tax
124527426.39 99839731.45
Liabilities
(4) Details of Unrecognized Deferred Income Tax Assets
Unit: RMB
Item Closing Balance Opening Balance
Deductible Temporary Difference 382370680.20 253988934.04
Deductible Losses 420127591.09 428660231.59
Total 802498271.29 682649165.63
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets Expired in the Following Year
Unit: RMB
Year Closing Balance Opening balance Remarks
2026 3312384.19 3312384.19
2027 11527268.52 11527269.04
2028 38888442.26 38888442.26
2029 104120797.51 104129305.33
2030 262278698.61 270802830.77
Total 420127591.09 428660231.59 --
19. Other Non-current Assets
Unit: RMB
Closing Balance Opening Balance
Provision
Provision
Item for
Book Balance Book value Book balance for decline Book value
decline in
in value
value
Pollutant Emission
482349.22 482349.22 14447447.94 14447447.94
Trading Fee
Coal Indicator Fee 44496000.00 44496000.00 68296000.00 68296000.00
Prepaid Long-term
316715175.10 316715175.10 195050042.74 195050042.74
Assets
Total 361693524.32 361693524.32 277793490.68 277793490.68
20. Short-term Borrowings
(1) Categories of Short-term Borrowings
Unit: RMB
Item Closing Balance Opening Balance
Guaranteed Borrowings 10013902.78
Fiduciary Borrowings 2298007852.59 2225474073.09
Fiduciary and Pledged Borrowings 100000000.00 100000000.00
Pledged and Guaranteed Borrowings 28037216.66
Total 2398007852.59 2363525192.53
21. Notes Payable
Unit: RMB
Types Closing Balance Opening Balance
Bank acceptance bill 668896544.92 497644517.23
Total 668896544.92 497644517.23
22. Accounts Payable
(1) Details of Accounts Payable
Unit: RMB
Item Closing Balance Opening Balance
Labor and Materials Expenses 695383950.46 567395890.15
Payment for Engineering and Equipment 749678083.45 896332425.89
Total 1445062033.91 1463728316.04
23. Contract Liabilities
Unit: RMB
Item Closing Balance Opening Balance
Payment for Goods 44962287.54 56302537.11
Total 44962287.54 56302537.11
24. Payroll Payable
(1) Details of Payroll Payable
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
I. Short-term
322646061.45 763598251.09 854943937.71 231300374.83
Remuneration
II. Dismissal Benefits -
Defined Contribution 38297177.21 38297177.21
Scheme
Total 322646061.45 801895428.30 893241114.92 231300374.83
(2) List of short-term remuneration
Unit: RMB
Item Opening Balance Increased in the current Decreased in the Closing Balance
period Current Period
1. Wages or salaries
bonuses allowances 259201281.23 658320490.05 754454598.60 163067172.68
and subsidies
2. Employee Benefits 41895993.67 41895993.67
3. Social Insurance
21157221.74 21157221.74
Contributions
Including: Health
18692216.70 18692216.70
Insurance Premium
Work Injury
1560835.34 1560835.34
Insurance Premium
Maternity
904169.70 904169.70
Insurance Premium
4. Housing Provident
31754139.44 31754139.44
Fund
5. Labor Union and
Employee Education 63444780.22 10470406.19 5681984.26 68233202.15
Funds
Total 322646061.45 763598251.09 854943937.71 231300374.83
(3) Defined Contribution Scheme
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
1. Basic Pension
36979239.63 36979239.63
Insurance
2. Unemployment
1317937.58 1317937.58
Insurance Premium
Total 38297177.21 38297177.21
25. Taxes Payable
Unit: RMB
Item Closing Balance Opening Balance
VAT 8905853.03 30247041.09
Enterprise Income Tax 230984629.40 197310396.17
Individual Income Tax 2442043.62 1951726.31
Urban Maintenance and Construction 2537948.93 1971609.80
Tax
Land VAT 14859137.93 14519045.43
House Property Tax 3332115.58 13209123.23
Land Usage Tax 5420464.00 8067682.42
Education Surcharges (including Local
2283195.89 1537328.96
Education Surcharges)
Stamp Duty 16134.43 7902.60
Local Water Conservancy Construction
39142.74
Fund
Environmental Protection Tax 3473.63
Total 270781522.81 268864472.38
26. Other Payables
Unit: RMB
Item Closing Balance Opening Balance
Other Payables 52150619.55 129839228.89
Total 52150619.55 129839228.89
1) Other Payables Listed by Nature of Funds
Unit: RMB
Item Closing Balance Opening Balance
Guarantee Deposit 32928013.51 23102033.05
Equity Transfer Fund 83904479.79
Borrowed Funds 3243666.67
Temporary Receipts Payable 6271104.11 9575676.08
Earnest Money for Housing Purchase
392991.00 1893256.00
(Boao NHU Resort Center)
Others 12558510.93 8120117.30
Total 52150619.55 129839228.89
27. Non-current Liabilities Due within 1 Year
Unit: RMB
Item Closing Balance Opening Balance
Long-term Debt Due within 1 Year 1431425253.34 1275888293.32
Total 1431425253.34 1275888293.32
Item At the end of the reporting period At the beginning of the reporting period
Fiduciary Loans 1093364045.13 836245918.20
Pledged Loans 7711902.65 9054944.56
Guaranteed Loans 330349305.56 430587430.56
Subtotal 1431425253.34 1275888293.32
28. Other Current Liabilities
Unit: RMB
Item Closing Balance Opening Balance
To-be-transferred Sales Taxes 3406847.42 4956463.49
Total 3406847.42 4956463.49
29. Long-term Borrowings
(1) Categories of Long-term Borrowings
Unit: RMB
Item Closing Balance Opening Balance
Pledged Borrowings 43798750.00 49635844.80
Guaranteed Borrowings 1510573819.42 1175331152.79
Fiduciary Borrowings 4240470218.61 2911908356.74
Total 5794842788.03 4136875354.33
30. Lease Liabilities
Unit: RMB
Item Closing Balance Opening Balance
Leased Buildings and Constructions 5398990.60 3604870.23
Total 5398990.60 3604870.23
Note: For the difference between the beginning of the reporting period and the end of the previous year (December 31 2020) see
Chapter V.28 of this Section.31. Deferred Income
Unit: RMB
Increased in Decreased in
Opening
Item the current the Current Closing Balance Causes
Balance
period Period
Received government subsidies
Government related to assets amortized by the
873066181.34 53240000.00 40228500.25 886077681.09
Subsidies depreciation progress of the
corresponding assets
Total 873066181.34 53240000.00 40228500.25 886077681.09 --
Projects related to government subsidies:
Unit: RMB
Amount Amount
The amount Amount
Recorded as Recorded as
Opening of new Written off Other Closing Related to
Liabilities Operating Other
Balance subsidies in Costs in This variations Balance Assets/Income
Revenue in Income in
this period Period
This Period This Period
Special Funds for
Biofermentation 24668010. 452246850.0
476914860.00 Related to assets
Industrial Park 00 0
Project
Special Funds for
Enterprise
4836300.1
Development 84635251.75 79798951.65 Related to assets0
(Shandong
Vitamin)
Special Funds for
Xinhao Combined 1887499.9
35547916.69 33660416.71 Related to assets
Heat and Power 8
Project
2019 Technical
Renovation for
34260000.00 0.00 34260000.00 Related to assets
Green Deep
Processing
Special Funds for
Enterprise
38950549.48 572802.18 38377747.30 Related to assets
Development
(Amino Acid)
Subsidies for
Shandong Site 29026913.28 359094.72 28667818.56 Related to assets
Levelling
Shandong
19285039.00 218907.06 19066131.94 Related to assets
Enterprise
Amount Amount
The amount Amount
Recorded as Recorded as
Opening of new Written off Other Closing Related to
Liabilities Operating Other
Balance subsidies in Costs in This variations Balance Assets/Income
Revenue in Income in
this period Period
This Period This Period
Development
Funds
PPS Project with
Annual
13238499.92 913000.02 12325499.90 Related to assets
Production of
10000 Tons
Grants for PPS
Resin with Annual
Production of
5000 Tons and
1425000.0
PPS Composite 11400000.00 9975000.00 Related to assets0
Material with
Annual
Production of
6000 Tons
Enterprise
Development
Funds of
8690037.83 99125.88 8590911.95 Related to assets
Advanced
Manufacturing
Industrial Park
Effective Input
Expansion for 7022400.00 478800.00 6543600.00 Related to assets
Industry in 2016
Funds for Key
Projects of
Industry
Revitalization and 5351785.70 713571.42 4638214.28 Related to assets
Technological
Upgrading in2012
Fiscal Subsidies
for Low-rent 6339417.24 120428.58 6218988.66 Related to assets
Housing
Subsidies for
Shandong Land 5123252.66 125115.78 4998136.88 Related to assets
Leasing for
Amount Amount
The amount Amount
Recorded as Recorded as
Opening of new Written off Other Closing Related to
Liabilities Operating Other
Balance subsidies in Costs in This variations Balance Assets/Income
Revenue in Income in
this period Period
This Period This Period
Dormitories
Subsidies for
Input in Shangyu
4898735.72 158885.94 4739849.78 Related to assets
Biochemical
Infrastructure
Public Testing
Service Platform
4000000.00 499999.98 3500000.02 Related to assets
Construction
Project
Subsidies for
8275875.00 398812.50 7877062.50 Related to assets
Infrastructure Fee
Compensation for2017
3840000.00 240000.00 3600000.00 Related to assets
Environment
Resources Project
Subsidies for
Land and
3242880.00 405360.00 2837520.00 Related to assets
Infrastructure
Construction
2017 Special
Fiscal Funds for
Real Economy
Revitalization 2679299.82 269614.28 2409685.54 Related to assets
(Traditional
Industry
Transformation)
Subsidies for RTO
1666666.86 199999.98 1466666.88 Related to assets
Project
2017 Special
Funds for Marine
2000000.00 0.00 2000000.00 Related to assets
Economy
Development
Special Funds for
High Quality
2109286.90 152478.60 1956808.30 Related to assets
Development of
Manufacturing
Amount Amount
The amount Amount
Recorded as Recorded as
Opening of new Written off Other Closing Related to
Liabilities Operating Other
Balance subsidies in Costs in This variations Balance Assets/Income
Revenue in Income in
this period Period
This Period This Period
Enterprise
Development
52224561.00 52224561.00 Related to assets
Funds (Shandong
Refinement)
Special Funds for
Technological
20500000.Upgrading 20500000.00 Related to assets00
(Shandong
Vitamin)
Special Funds for
Warehouse
25080000.Logistics 25080000.00 Related to assets00
Assistance
Program
7660000.0 1485693.2
Other Subsidies 12342952.49 18517259.24 Related to assets
0 5
53240000. 40228500. 886077681.0
Subtotal 873066181.34
00 25 9
Note: For the government subsidies included in the current profits and losses see Note VII (58) of this section.32. Share Capital
Unit: RMB
Increased or Decreased Amount in the Current Period (+/-)
Shares Shares
Item Opening Balance Bonus Closing Balance
newly converted from Others Subtotal
shares
issued capital reserves
Total Shares 2148662300.00 429732460.00 429732460.00 2578394760.00
Note: According to the 2020 Annual Profit Distribution Plan passed by the resolution of the 2020 Annual General Meeting of
Stockholders based on the total capital of 2148662300.00 shares at the end of 2020 the Company distributes all shareholders 2
shares for each 10 shares by capital reserve with a total of 429732460.00 shares transferred. The total share capital of the Company
after transferring is 2578394760.00 shares. The above capital reserve converted to share capital has been verified by Pan-China
Certified Public Accountants LLP (Special General Partnership) who issued the Capital Verification Report (T.J.Y. [2021] NO. 234).33. Capital Reserve
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
Capital Premium
(Capital Share 4277237673.92 429732460.00 3847505213.92
Premium)
Other Capital Reserves 283284882.92 283284882.92
Total 4560522556.84 429732460.00 4130790096.84
Reason for decrease/increase in the current period: Decrease in capital premium (equity premium) in the current period is the capital
reserve converted to share capital in the current period. For details see VII.32
34. Other Comprehensive Incomes
Unit: RMB
This Period's Amount of Occurrence
Less: Recorded Less: Recorded into
into Other Other Attributa
Amount
Comprehensive Comprehensive Less: ble to the
Opening Occurred Attributable to
Item Incomes in Incomes in Previous Income Minority Closing Balance
Balance Before Income the Company
Previous Period Period and Tax Sharehol
Tax in the after Tax
and Transferred Transferred to Expense ders after
Current Period
to P/L in the Retained Income in Tax
Current Period the Current Period
Other Comprehensive
-297668
Income That Will Be 27803829.31 -27560965.25 -11402449.39 16401379.92
2.86
Reclassified into P/L
Including: Other
Comprehensive
Income That Can Be
506954.43 506954.43
Transferred to P/L
under the Equity
Method
Difference
from Foreign Currency -297668
27296874.88 -27560965.25 -11402449.39 15894425.49
Financial Statement 2.86
Translation
Other Comprehensive -297668
27803829.31 -27560965.25 -11402449.39 16401379.92
Incomes in Total 2.86
35. Special Reserves
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
Safety Production
9550346.85 5948742.71 3856610.93 11642478.63
Costs
Total 9550346.85 5948742.71 3856610.93 11642478.63
36. Surplus Reserve
Unit: RMB
Increased in the current Decreased in the
Item Opening Balance Closing Balance
period Current Period
Statutory Surplus
1074331150.00 1074331150.00
Reserve
Total 1074331150.00 1074331150.00
37. Undistributed Profits
Unit: RMB
Item Current Period Previous Period
Undistributed Profit after Adjustment at the
11515384739.95 9158233971.76
Start of the Period
Add: Net Profit Attributable to Parent
2408499133.50 2208930277.20
Company's Owner in the Current Period
Less: Payable Dividends on Ordinary Shares 1504063610.00 1074331150.00
Undistributed Profit at the End of the Period 12419820263.45 10292833098.96
38. Operating Income and Operating Costs
Unit: RMB
This Period's Amount of Occurrence Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 7180589252.55 3709144810.85 5285935511.71 2133390266.47
Other Businesses 73632385.46 46180234.17 17229990.54 10418794.02
Total 7254221638.01 3755325045.02 5303165502.25 2143809060.49
Note: Costs incurred from performance of contracts is included in the operating costs in the current period. For details see chapter V.28 of this section.Information about revenue:
Unit: RMB
Contract Classification Total
Principal Place of Business
Domestic 3295559229.13
Overseas 3958662408.88
Subtotal 7254221638.01
Main Business Types
Nutritional products 5452151744.71
Essences and fragrances 1126980745.24
New materials 418367560.13
Others 256721587.93
Subtotal 7254221638.01
Time of Revenue Recognition
Including: Commodities
7254221638.01
(Transferred at a Point)
Subtotal 7254221638.01
Information about performance of obligations:
N/A
Information about transaction price allocated to the remaining performance of obligations:
The revenue corresponding to the performance of obligations under the contracts which are signed but are not performed or
not performed completely at the end of this reporting period is RMB 1021907408.90 in which RMB 1021907408.90 is estimated
to be recognized as revenue in 2021.39. Taxes and Surcharges
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Urban Maintenance and Construction
16593941.36 15662602.92
Tax
Education Surcharges 15258637.11 14468776.36
Land VAT 640367.32 225819.50
Stamp Duty 2929669.52 2022185.58
House Property Tax 11778391.04 5418917.10
Land Usage Tax 12989995.35 12236260.22
Vehicle and Vessel Use Tax 24675.80 19653.13
Environmental Protection Tax 578646.58 516644.89
Total 60794324.08 50570859.70
40. Selling Expenses
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Handling Charges and Transportation
1466649.89 79683153.39
Premium
Sales Commission and Customs
17692240.72 18789506.93
Clearance Fee
Advertising and Promotion Expenses
3567586.35 3848627.67
and Business Entertainment Expenses
Payroll 23212723.68 20689730.57
Office and Traveling Expenses 5649153.96 4780171.09
Others 3891220.30 4266297.87
Total 55479574.90 132057487.52
Note: Costs incurred from performance of contracts in the selling expenses is included in the operating costs in the current period.For details see V. 28 of this section.41. Administration Expenses
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Payroll 91901943.55 96800579.80
Office and Traveling Expenses 15975577.72 13006051.13
Depreciation Cost and Intangible Asset
42187840.96 32300328.20
Amortization
Business Entertainment Expenses 9654999.32 6059332.99
Insurance Premium 7655409.05 6742146.81
Others 20130143.50 28988037.37
Total 187505914.10 183896476.30
42. R&D Expenses
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Direct Input 126033421.52 59560240.63
Payroll 149468367.40 110880668.96
Depreciation Cost and Intangible Asset
24293575.58 18736565.61
Amortization
Office and Traveling Expenses 15628605.63 8169701.42
Outsourcing Cost 13402568.01 10686584.62
Others 22706226.41 11119177.39
Total 351532764.55 219152938.63
43. Financial Expenses
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Interest Expenditures 162484715.95 110160929.73
Less: Interest Income 72107022.92 15204954.21
Exchange gains or losses (Mark "-" for
43236369.19 -28926159.63
Incomes)
Others 10916076.87 10277155.91
Total 144530139.09 76306971.80
44. Other Incomes
Unit: RMB
Sources of Other Income This Period's Amount of Occurrence Amount Occurred in the Previous Period
Government Subsidies Related to Assets 40228500.25 15893203.74
Government Subsidies Related to
33328436.43 28936325.99
Income
Charge Return for Withholding
1139113.99 819130.22
Individual Income Tax
Total 74696050.67 45648659.95
Note: For the government subsidies included in other income in the current period see Notes VII (58) of this section.45. Investment Income
Unit: RMB
Amount Occurred in the Previous
Item This Period's Amount of Occurrence
Period
Long-term Equity Investment Income 15735226.24 5431597.21
Measured by Equity Method
Investment Income from Possession of
Financial Instruments
Including: Investment in Other Equity
Instruments
Investment Income from Disposal Trading
-370729.11 -10125310.54
Financial Assets
Including: Financial Assets at Fair Value
2643037.39 140624.46
through Profit or Loss in the Current period
Financial Liabilities Measured at Fair Value
with Changes Recorded into Current Profit -3013766.50 -10265935.00
and Loss
Interest from Discounting Notes
Income from Bank Financial Products and
29617969.78 73491805.92
Structured Deposits
Total 44982466.91 68798092.59
46. Income from Changes in Fair Value
Unit: RMB
Sources of Income from Changes in Fair
This Period's Amount of Occurrence Amount Occurred in the Previous Period
Value
Trading Financial Assets 25239240.62 1916459.91
Transactional financial liabilities -1567482.48 8520857.22
Total 23671758.14 10437317.13
47. Credit Impairment Loss
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Losses on Bad Debts -33637204.20 -48988895.82
Total -33637204.20 -48988895.82
48. Asset Impairment Loss
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Loss from Impairment of Inventories
-6714482.90 -2095132.82
and Impairment of Performance Cost
Total -6714482.90 -2095132.82
49. Asset Disposal Income
Unit: RMB
Sources of Asset Disposal Income This Period's Amount of Occurrence Amount Occurred in the Previous Period
Profit and Loss from Disposal of
1065564.79 84077.01
Non-current Assets
Total 1065564.79 84077.01
50. Non-operating Revenues
Unit: RMB
Amount Recorded into
This Period's Amount of Amount Occurred in the
Item Non-recurring Profit and Loss
Occurrence Previous Period
in the Current Period
Income from Indemnification 9044364.95 753931.20 9044364.95
Others 1302076.50 160792.02 1302076.50
Total 10346441.45 914723.22 10346441.45
51. Non-operating Expense
Unit: RMB
Amount Recorded into
This Period's Amount of Amount Occurred in the
Item Non-recurring Profit and Loss
Occurrence Previous Period
in the Current Period
Donations 877525.00 10117774.40 877525.00
Local Water Conservancy
298453.46
Construction Fund
Others 1041504.53 1549137.28 1041504.53
Total 1919029.53 11965365.14 1919029.53
52. Income Tax Expense
(1) Income Tax Expense Table
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Current Income Tax Expense 374095395.38 345849333.57
Deferred Income Tax Expense 20614465.84 42127.46
Total 394709861.22 345891461.03
(2) Reconciliation of Accounting Profits and Income Tax Expenses
Unit: RMB
Item This Period's Amount of Occurrence
Total Profit 2811545441.60
Income Tax Calculated at Statutory/Applicable Tax Rate 421731816.24
Impact by Applying Different Tax Rates to Subsidiaries -10673966.07
Impact of Income Tax before Adjustment in This Period -1775129.65
Impact of Non-taxable Revenue -1192681.53
Impact of the Non-deductible Costs Expenses and Losses 1067622.05
Impact of Deductible Losses from Unrecognized Deferred
-22437104.00
Income Tax Assets in the Previous Period
Impact of Deductible Temporary Difference or Deductible
Losses from Unrecognized Deferred Income Tax Assets in the 62976030.77
Current Period
Impact of Additional Deduction of the Research and
-54986726.59
Development Expenses
Income tax expense 394709861.22
53. Other Comprehensive Income
For net of tax of other comprehensive income see Note VII (34) of this section.54. Items of Cash Flow Statement
(1) Other Cash Receipts Relating to Operating Activities
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Bank Interest Income 72170716.37 14595570.94
Government Subsidies Received 82860435.49 37322837.08
Temporary Loans and Guarantee
4650.00 2190342.70
Deposits Received
Other Net Amounts Received 11267812.52 5966638.94
Total 166303614.38 60075389.66
(2) Other Cash Payments Relating to Operating Activities
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
R&D Expenditure 9072525.23 5073304.02
Handling Charges and Transportation
0 73804213.88
Premium
Office and Traveling Expenses 11497951.02 11818804.30
Advertising and Promotion Expenses
10942559.78 8101614.52
and Business Entertainment Expenses
Sales Commission and Customs
8641852.83 11610472.33
Clearance Fee
Insurance Premium 5366502.83 2357120.82
Other Expenses and Net Amounts 146673321.02 77024806.00
Total 192194712.71 189790335.87
(3) Other Cash Receipts Relating to Investing Activities
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Financial Products Recovered at the
1800000000.00 3850000000.00
Beginning of this Period
Land Deposits Recovered 71314561.00
Deposits of Contingent Option
4780000.00
Recovered
Total 1800000000.00 3926094561.00
(4) Other Cash Payments Relating to Investing Activities
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Purchased Financial Products 1520000000.00 1400000000.00
Total 1520000000.00 1400000000.00
(5) Other Cash Receipts Relating to Financing Activities
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Recovered Cash and Bank Balances
73000000.00
Pledged for Borrowing
Total 73000000.00
(6) Other Cash Payments Relating to Financing Activities
Unit: RMB
Item This Period's Amount of Occurrence Previous Period's Amount of Occurrence
Paid Charges for Bank Financing 2069877.48 6799330.40
Paid Charges for Issuing Loan Guarantee 1293530.21 2596211.80
Paid Cash and Bank Balances Pledged
61887.76
for Borrowing
Total 3363407.69 9457429.96
55. Supplementary Information about the Cash Flow Statement
(1) Supplementary Information about the Cash Flow Statement
Unit: RMB
Supplementary Information Amount of this period Amount of Previous Period
1． Reconciliation of Net Profit to Cash
-- --
Flows from Operational Activities:
Net Profit 2416835580.38 2214313722.90
Add: Provision for Impairment of
40351687.10 51184028.64
Assets
Depreciation of Fixed Assets
Oil and Gas Assets Productive Biological 578079485.24 343991868.23
Assets
Depreciation of Right-of-use
448385.93
Assets
Amortization of Intangible
16731412.82 15921794.71
Assets
Amortization of Long-term
1942593.41 457395.84
Prepaid Expenses
Losses on Disposal of Fixed
Assets Intangible Assets and Other -1065564.79 -84077.01
Long-term Assets (Mark "-" for Incomes)
Losses on Scrapping of Fixed 17993.76
Supplementary Information Amount of this period Amount of Previous Period
Assets (Mark "-" for Incomes)
Losses on Fair Value Changes
-23671758.14 -10437317.13
(Mark "-" for Incomes)
Financial Expenses (Mark "-"
209472718.30 88948908.07
for Incomes)
Losses on Investment (Mark "-"
-44982466.91 -68798092.59
for Incomes)
Decrease on Deferred Income
-4073229.10 -8999940.93
Tax Assets (Mark "-" for Incomes)
Increase on Deferred Income
24687694.94 9042068.39
Tax liabilities (Mark "-" for Decreases)
Decrease on Inventories (Mark
-401877126.78 -253520308.60
"-" for Increases)
Decrease on Operational
-234285135.31 -454214969.17
Receivables (Mark "-" for Increases)
Increase on Operational
-307454789.08 -800082861.24
Payables (Mark "-" for Decreases)
Others -162000.00
Net cash flow generated by
2271157481.77 1127560220.11
operating activities
2． Major Investing and Financing
Activities Not Involving Cash Receipts -- --
and Payments:
Conversion of Debt into Capital
Convertible Bonds Due within 1 Year
Fixed Assets under Finance Lease
3． Net Changes in Cash and Cash
-- --
Equivalents:
Closing Balance of Cash 6182163497.57 5241316156.88
Less: Opening Balance of Cash 4669306776.09 3213557815.42
Add: Closing Balance of Cash
Equivalents
Less: Opening Balance of Cash
Equivalents
Net additions to balance of
1512856721.48 2027758341.46
equivalents
(2) Composition of Cash and Cash Equivalents
Unit: RMB
Item Closing Balance Opening Balance
I. Cash 6182163497.57 4669306776.09
Including: Cash on Hand 17148.82 10735.55
Bank Deposit for Payment at Any
6182146348.75 4669296040.54
Time
III. Closing Balance of Cash and Cash
6182163497.57 4669306776.09
Equivalents
Other notes:
The closing balance of monetary funds is RMB 6412612895.26 Bank Acceptance Bill Deposit is RMB 205331116.11 L/C
Deposit is RMB 22854163.27 Deposit for Project Labor Wages is RMB 1653668.82 Construction Bond is RMB 404439.49
ETC Deposit is RMB 6000.00 Guarantee Deposit for Water Charges is RMB 200010.00，which is not Cash and Cash Equivalents:
The opening balance of monetary funds is RMB 4927657236.24 Bank Acceptance Bill Deposit is RMB 233849274.66 L/C
Deposit is RMB 23350000.00 Deposit for Project Labor Wages is RMB 741108.87 Construction Bond is RMB 404076.62 ETC
Deposit is RMB 6000.00，which is not Cash and Cash Equivalents.56. Assets with Restricted Ownership Rights or Rights to Use
Unit: RMB
Item Closing Book Value Cause of Restrictions
See "Cash and Bank Balances" in the
Cash and Bank Balances 230449397.69
financial statement.See "Notes Receivable" in the financial
Notes receivable 431546440.19
statement.See "Receivables Financing" in the
Receivables Financing 8890529.21
financial statement.Fixed assets 86062988.84 Mortgaged to bank for borrowing
Intangible Assets 10074981.26 Mortgaged to bank for borrowing
Total 767024337.19 --
57. Monetary Items in Foreign Currencies
(1) Monetary Items in Foreign Currencies
Unit: RMB
Closing Balance in Foreign Exchange Rate for Closing Balance Converted
Item
Currencies Conversion into RMB
Cash and Bank Balances -- -- 690101206.42
Including: USD 88548944.83 6.4601 572035038.50
EUR 12921672.86 7.6862 99318561.94
HKD 1569397.45 0.8321 1305895.62
JPY 298659424.00 0.0584 17441710.36
Accounts receivable -- -- 1980934756.26
Including: USD 260651154.68 6.4601 1683832524.35
EUR 38653981.41 7.6862 297102231.91
Other Receivables 10216238.01
Including: EUR 1325734.49 7.6862 10189860.44
HKD 31700.00 0.8321 26377.57
Short-term Borrowings 512201680.42
Including: USD 15032244.28 6.4601 97109801.27
EUR 54004824.12 7.6862 415091879.15
Accounts Payable 76696793.52
Including: USD 108418.10 6.4601 700391.77
EUR 9887382.81 7.6862 75996401.75
Other Payables 651815.14
Including: USD 88746.64 6.4601 573312.17
EUR 9674.15 7.6862 74357.45
HKD 4982.00 0.8321 4145.52
Non-current Liabilities Due
7711902.65
within 1 Year
Including: EUR 1003344.00 7.6862 7711902.65
Long-term Borrowings 43798750.00
Including: EUR 5698362.00 7.6862 43798750.00
(2) Notes on overseas business entities including that for the important overseas business entities the
overseas main premises functional currency and selection basis shall be disclosed. If there are changes on
its functional currency the causes for the changes shall be disclosed as well.√ Applicable □ Not applicable
NHU Europe GmbH is the holding subsidiary of NHU (HONGKONG) TRADING COMPANY LIMITED holding 51% of
shares. NHU PERFORMANCE MATERIALS GMBH is the wholly-owned subsidiary of NHU (HONGKONG) TRADING
COMPANY LIMITED; Bardoterminal GmbH is the wholly-owned subsidiary of NHU Europe GmbH. The three companies are
located at Lüneburg German and adopt EUR as the functional currency.58. Government Subsidies
(1) Basic Information about Government Subsidies
1) Government subsidies related to assets
Unit: RMB
Items
Deferred Income Amortization Deferred Income
New Subsidies in Reported for
Project at the Beginning Expenses in This at the End of This Note
This Period Amortization
of This Period Period Period
in This Period
Special Funds for
S.J.K.G. (2018)
Biofermentation 476914860.00 24668010.00 452246850.00 Other income
No.55
Industrial Park Project
Special Funds for
Enterprise
84635251.75 4836300.10 79798951.65 Other income
Development
(Shandong Vitamin)
Special Funds for
Xinhao Combined S.J.K.G.W.H.35547916.69 1887499.98 33660416.71 Other income
Heat and Power (2018) No.123
Project
2019 Technical
Z.F.G.M. (2019)
Renovation for Green 34260000.00 0.00 34260000.00 Other income
No.127
Deep Processing
Special Funds for
Enterprise
W.B.C.Z.Z. (2018)
Development 38950549.48 572802.18 38377747.30 Other income
No.40
(Shandong
Amino-acids Acid)
Subsidies for
Shandong Site 29026913.28 359094.72 28667818.56 Other income
Levelling
W.B.C.Z.Z. (2014)
No.513 W.B.C.Z.Z.Shandong Enterprise
19285039.00 218907.06 19066131.94 Other income (2016) No.194
Development Funds
W.B.C.Z.Z. (2017)
No.307
PPS Project with
Annual Production of 13238499.92 913000.02 12325499.90 Other income
10000 Tons
Grants for PPS Resin
with Annual 11400000.00 1425000.00 9975000.00 Other income
Production of 5000
Items
Deferred Income Amortization Deferred Income
New Subsidies in Reported for
Project at the Beginning Expenses in This at the End of This Note
This Period Amortization
of This Period Period Period
in This Period
Tons and PPS
Composite Material
with Annual
Production of 6000
Tons
Enterprise
Development Funds of
Advanced 8690037.83 99125.88 8590911.95 Other income
Manufacturing
Industrial Park
Effective Input
Expansion for 7022400.00 478800.00 6543600.00 Other income
Industry in 2016
According to Z.C.Q.
(2012) No. 276 of
Zhejiang Provincial
Department of
Finance and
Economy and
Funds for Key
Information
Projects of Industry
Technology
Revitalization and 5351785.70 713571.42 4638214.28 Other income
Committee of
Technological
Zhejiang the
Upgrading in 2012
company obtained
the special funds for
new cephalosporin
antibiotics project
with the annual
production of 10T.Fiscal Subsidies for
6339417.24 120428.58 6218988.66 Other income
Low-rent Housing
Subsidies for
Shandong Land
5123252.66 125115.78 4998136.88 Other income
Leasing for
Dormitories
Subsidies for Input in
Shangyu Biochemical 4898735.72 158885.94 4739849.78 Other income
Infrastructure
Public Testing Service 4000000.00 499999.98 3500000.02 Other income
Items
Deferred Income Amortization Deferred Income
New Subsidies in Reported for
Project at the Beginning Expenses in This at the End of This Note
This Period Amortization
of This Period Period Period
in This Period
Platform Construction
Project
Subsidies for
8275875.00 398812.50 7877062.50 Other income
Infrastructure Fee
Compensation for
2017 Environment 3840000.00 240000.00 3600000.00 Other income
Resources Project
Subsidies for Land
and Infrastructure 3242880.00 405360.00 2837520.00 Other income
Construction
2017 Special Fiscal
Funds for Real
Economy X.C.Q. (2019)
2679299.82 269614.28 2409685.54 Other income
Revitalization No.151
(Traditional Industry
Transformation)
Subsidies for RTO W.C.Q.Z. (2014)
1666666.86 199999.98 1466666.88 Other income
Project No.207
2017 Special Funds
S.Y.C.J. (2018)
for Marine Economy 2000000.00 2000000.00 Other income
No.12
Development
Special Funds for
High Quality
2109286.90 152478.60 1956808.30 Other income X.J.X. (2020) No.79
Development of
Manufacturing
Enterprise
Development Funds W.B.C.Z.Z. (2020)
52224561.00 52224561.00 Other income
(Shandong No.34
Refinement)
Special Funds for
Technological 20500000.00 20500000.00 Other income
Upgrading
Special Funds for
H.F.G.T.Z. (2020)
Warehouse Logistics 25080000.00 25080000.00 Other income
No.542
Assistance Program
Other Subsidies 12342952.49 7660000.00 1485693.25 18517259.24 Other income
Subtotal 873066181.34 53240000.00 40228500.25 886077681.09
2) Government subsidies related to income and used for compensating relevant costs or losses incurred by the Company
Project Amount Items Reported Note
Government Rewards 3542654.00 Other income Related to income
Others 29785782.43 Other income Related to income
Subtotal 33328436.43
3) Interest subsidies
Deferred Income Amount of New Carry-forwarded Deferred Income
Items Reported in the
Project at the Beginning Subsidies in the Subsidies in the at the End of This Note
Current Period
of This Period Current Period Current Period Period
Interest
2823740.28 2823740.28 Financial expenses
subsidies
Subtotal 2823740.28 2823740.28
4) Government subsidies recorded into P/L in the current period is RMB 73556936.68
(2) Repayment of Government Subsidies
□ Applicable √ Not applicable
VIII. Changes in the Scope of Consolidation
1. Changes in the Scope of Consolidation for Other Reasons
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production
Company Name
subsidiaries during the reporting period management and performance
Zhejiang NHU Nylon Materials Co.Newly established N/A
Ltd.Zhejiang NHU Nylon Materials Co. Ltd. was established on March 5 2021 as a wholly-owned subsidiary of Zhejiang
NHU Co. Ltd.IX. Equity in Other Entities
1. Equity in Subsidiaries
(1) Composition of Important Subsidiaries
Name of Main Place of Registered Business Shareholding Percentage Acquisition
Subsidiaries Business Address Nature Direct Indirect Method
Shangyu Shangyu Shangyu
Manufacturing 100.00% Establishment
Bio-Chem Zhejiang Zhejiang
Shandong Weifang Weifang
Manufacturing 100.00% Establishment
Pharmaceutical Shandong Shandong
NHU (Hong Hong Kong Hong Kong
Commerce 100.00% Establishment
Kong) China China
Zhejiang
Shangyu Shangyu
Special Manufacturing 100.00% Establishment
Zhejiang Zhejiang
Materials
Shandong Weifang Weifang
Manufacturing 100.00% Establishment
Amino-acids Shandong Shandong
Shandong Weifang Weifang
Manufacturing 100.00% [Note 1] Establishment
Vitamins Shandong Shandong
NHU EUROPE Luneburg Luneburg
Trade 51.00% [Note 2] Establishment
GmbH Germany Germany
Shandong NHU
Weifang Weifang
Holdings Co. Service 100.00% Establishment
Shandong Shandong
Ltd.Heilongjiang
Suihua Suihua
Biological Manufacturing 100.00% Establishment
Heilongjiang Heilongjiang
Technology
Explanations on the fact that the proportion of the shares held by a subsidiary differs from that of voting rights:
[Note 1]: Held through the subsidiary Shandong NHU Holdings Co. Ltd.[Note 2]: Held through the subsidiary NHU (Hong Kong) Trading Co. Ltd.
(2) Important Non-Wholly Owned Subsidiaries
Unit: RMB
Profit or Loss
Dividends Declared to Minority Shareholders'
Minority Shareholding Attributable to
Name of Subsidiaries Minority Shareholders Equity Balance at the
Percentage Minority Shareholders
in the Current Period End of the Period
in the Current Period
NHU EUROPE GmbH 49.00% 8336446.88 13181833.00 59754458.04
(3) Main Financial Information of Important Non-Wholly Owned Subsidiaries
Unit: RMB
Closing Balance Opening Balance
Name of Non-cu Non-cu
Non-cur Current Total Non-cu Current Total
Subsidiari Current Total rrent Current Total rrent
rent Liabiliti Liabiliti rrent Liabiliti Liabiliti
es Assets Assets Liabiliti Assets Assets Liabiliti
Assets es es Assets es es
es es
NHU
719681 103611 823293 657546 43798 701345 557333 109005 666339 478792 49635 528428
EUROPE
547.47 569.82 117.29 493.74 750.00 243.74 673.19 921.19 594.38 469.90 844.80 314.70
GmbH
Unit: RMB
This Period's Amount of Occurrence Amount Occurred in the Previous Period
Cash Flow
Name of Cash Flow
Total Total Generated
Subsidia Operating Generated by Operating
Net Profit Comprehensiv Net Profit Comprehens by
ries Income Operational Income
e Income ive Income Operational
Activities
Activities
NHU
EUROPE 880665472.68 17013156.89 10938293.87 64150528.47 883804563.98 10986623.88 13244306.13 5608973.28
GmbH
2. Equity in joint venture arrangements or affiliates
(1) Essential Joint Ventures or Affiliates
Shareholding Percentage Accounting
Names of Joint Treatment of
Main Place of Registered Business
Ventures or Investment in
Business Address Nature Direct Indirect
Affiliates Joint Ventures or
Affiliates
Zhejiang
Chunhui
Environmental Shangyu Shangyu Equity Method
Manufacturing 34.2857%
Protection Zhejiang Zhejiang Accounting
Energy Co.Ltd.DSM NHU
Engineering
Shangyu Shangyu Equity Method
Materials Manufacturing 40.00%
Zhejiang Zhejiang Accounting
(Zhejiang) Co.Ltd.Zhejiang Saiya
Chemical Shangyu Shangyu Equity Method
Manufacturing 49.00%
Materials Co. Zhejiang Zhejiang Accounting
Ltd.
(2) Main Financial Information of Essential Affiliates
Unit: RMB
Closing balance / accrual of current period Opening balance / accrual of previous period
Zhejiang Zhejiang
DSM NHU DSM NHU
Chunhui Zhejiang Saiya Chunhui Zhejiang Saiya
Engineering Engineering
Item Environmental Chemical Environmental Chemical
Materials Materials
Protection Materials Co. Protection Materials Co.(Zhejiang) Co. (Zhejiang) Co.Energy Co. Ltd. Energy Co. Ltd.Ltd. Ltd.Ltd. Ltd.Current Assets 280686009.25 52735054.71 75428896.63 315880629.16 46855677.24 45646530.22
Non-current
505003788.24 14324539.25 167271429.38 455644920.86 14760235.10 175471429.07
Assets
Total Assets 785689797.49 67059593.96 242700326.01 771525550.02 61615912.34 221117959.29
Current
129316023.82 80713865.12 35917911.67 167519267.96 74217481.09 19238056.31
Liabilities
Non-current
25724192.09 2631735.00 22544241.63 2804190.00
Liabilities
Total Liabilities 155040215.91 80713865.12 38549646.67 190063509.59 74217481.09 22042246.31
Equity
attributable to
shareholders of 630649581.58 -13654271.16 204150679.34 581462040.43 -12601568.75 199075712.98
the parent
company
Share of net
assets
calculated
216222623.59 -5461708.46 100033832.88 199358330.80 -5040627.50 97547099.36
based on the
shareholding
ratio
- Goodwill 762611.33 762611.33
Book value of
equity
216222623.59 100796444.21 199358330.80 98309710.69
investment in
affiliates
Operating
196623027.27 54950710.21 139702151.72 120727989.91 17313621.45 86849470.71
Income
Net Profit 49187541.15 -1052702.41 5074966.36 20939914.44 -11463484.97 1343850.82
Total
Comprehensive 49187541.15 -1052702.41 5074966.36 20939914.44 -11463484.97 1343850.82
Income
(3) Financial Summary of Non-essential Joint Ventures and Affiliates
Unit: RMB
Closing balance / accrual of current Opening balance / accrual of previous
Item
period period
Affiliates: -- --
Total book value of investments 42063121.53 45710849.69
The total count of the following items
-- --
based on the shareholding ratios
--Net profit -656507.53 -1613290.77
--Total comprehensive income -656507.53 -1613290.77
(4) Excess Losses Incurred by Joint Ventures or Affiliates
Unit: RMB
Accumulated unrecognized Unrecognized loss in the Accumulated unrecognized
Names of Joint Ventures or
losses accumulated in the current period (or net profit losses at the end of the
Affiliates
prior period shared in the current period) current period
Zhejiang Sanpo Polymer Co.-46012244.60 -298266.67 -46310511.27
Ltd.X. Risks Relating to Financial Instruments
The objective of the Company in engaging in risk management is to strike a balance between risks and returns to minimize the
negative impact of risks on the Company's operating performance and to maximize the interests of shareholders and other equity
investors. Based on this risk management objective the fundamental strategy of the Company's risk management is to identify and
analyze various risks to which the Company is exposed establish appropriate risk tolerance bottoms and conduct risk management
and monitor various risks in a timely and reliable manner to keep them within bounds.The Company is exposed to various risks relating to financial instruments in its day-to-day operations mainly including credit
risk liquidity risk and market risk. The management has deliberated and approved policies to manage these risks as summarized
below:
(I) Credit Risk
The credit risk refers to the risk of one party of a financial instrument suffering financial losses due to the other party's inability
to perform its obligations.1. Credit Risk Management Practice
(1) Credit Risk Evaluation Method
The Company assesses at each balance sheet date whether the credit risk of relevant financial instruments has increased
substantially since initial recognition. In determining whether credit risk has increased substantially since initial recognition the
Company considers reasonable and substantiated information available without incurring unnecessary additional costs or efforts
including qualitative and quantitative analysis based on historical data external credit risk ratings and forward-looking information.Based on a single financial instrument or a portfolio of financial instruments with similar credit risk profiles the Company
determines the change in the risk of default over the expected life of financial instruments by comparing the risk of default of the
financial instruments at the balance sheet date with the risk of default at the initial recognition date.The Company considers a significant increase in the credit risk of a financial instrument to have occurred when one or more of
the following quantitative and qualitative criteria are triggered:
1) The quantitative criteria are mainly defined as an increase in the probability of default for the remaining duration on the
balance sheet date by more than a certain proportion compared to the time of initial recognition;
2) The qualitative criteria are mainly defined as material adverse changes in the debtors' operating or financial conditions
existing or anticipated changes in the technological market economic or legal environment that will have material adverse effects on
the debtors' ability to repay the Company and so on.
(2) Definition of Defaulted and Credit Impaired Assets
The Company defines a financial asset as having defaulted when the financial instrument meets one or more of the following
conditions the criteria of which are consistent with the definition of having incurred credit impairment:
1) The debtor runs into material financial difficulties;
2) The debtor violates the terms binding on it in the contract;
3) The debtor is highly likely to become insolvent or undergo other financial restructuring;
4) The creditor grants concessions to the debtor that the debtor would not have made in any other situation due to economic or
contractual considerations related to the debtor's financial difficulties.2. Measurement of Expected Credit Losses
The key parameters for the measurement of expected credit losses include probability of default loss given default and
exposure to default. The Company considers quantitative analysis of historical data (such as counterparty ratings types of guarantees
and pledges and repayment methods) and forward-looking information to establish the probability of default loss given default and
exposure to default risk.3. A reconciliation of the allowance for losses on financial instruments at the beginning and end of the period is detailed in the
notes to this section VII 3 4 and 7 of the Financial Report.4. Credit Risk Exposure and Concentration of Credit Risk
The Company's credit risk mainly arises from monetary funds and accounts receivable. To control the above related risks the
Company has taken the following measures respectively.
(1) Monetary funds
The Company places bank deposits and other monetary funds in financial institutions with high credit ratings thus its credit
risk is low.
(2) Accounts receivable
The Company continuously conducts credit evaluations of customers who choose credit transactions. Based on the credit
evaluation results the Company engages in transactions with approved and creditworthy customers and monitors their receivable
balances to ensure that the Company is not exposed to material bad debt risk.Since the Company only deals with approved and creditworthy third parties no collateral is required. The concentration of
credit risk is managed on a customer basis. As of June 30 2021 the Company has certain credit concentration risk with 40.92%
(35.19% on December 31 2020) of the Company's accounts receivable originating from the top five customers in terms of balance.
The Company does not hold any collateral or other credit enhancements on its accounts receivable balances.The Company's maximum exposure to credit risk is the book value of each financial asset in the balance sheet.(II) Liquidity Risk
The liquidity risk refers to the risk of a shortage of funds when the Company fulfills its obligation of settlement by cash or
other financial assets. Liquidity risk may arise from the inability to sell financial assets at fair value promptly; or from the inability of
the other party to repay its contractual debts; or from early maturity of debts; or from the inability to generate expected cash flows.To control this risk the Company uses a combination of financing instruments including note settlement and bank Loan and
adopts an appropriate combination of long- and short-term financing methods to optimize the financing structure and maintain a
balance between financing sustainability and flexibility. The Company has obtained bank credit lines from a number of commercial
banks to meet working capital requirements and capital expenditures.Classification of financial liabilities by remaining maturity
Unit: RMB
At the end of the reporting period
Project Undiscounted contractual
Book Value Within 1 Year 1-3 years 3 years or above
amount
Bank Loan 9624275893.96 10179010336.67 4125617367.31 5499429748.01 553963221.35
Notes Payable 668896544.92 668896544.92 668896544.92
Accounts 1445062033.91 1445062033.91
1445062033.91
Payable
Other Payables 52150619.55 52150619.55 52150619.55
Subtotal 11790385092.34 12345119535.05 6291726565.69 5499429748.01 553963221.35
(Continued)
Unit: RMB
At the beginning of the reporting period
Project Undiscounted
Book Value Within 1 Year 1-3 years 3 years or above
contractual amount
Bank Loan 7776288840.18 8221866812.16 3874954917.32 4176224771.56 170687123.28
Notes Payable 497644517.23 497644517.23 497644517.23
Accounts Payable 1463728316.04 1463728316.04 1463728316.04
Other Payables 129839228.89 129839228.89 129839228.89
Subtotal 9867500902.34 10313078874.32 5966166979.48 4176224771.56 170687123.28
(III) Market Risk
The market risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to the change
of market price. Market risk mainly includes interest rate risk and foreign exchange risk.1. Interest Rate Risk
The interest rate risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to the
change of market interest rate. The Company is exposed to fair value interest rate risk for fixed-rate interest-bearing financial
instruments and to cash flow interest rate risk for floating-rate interest-bearing financial instruments. The Company determines the
proportion of fixed- and floating-rate financial instruments based on market circumstances and maintains an appropriate mix of
financial instruments through regular review and monitoring. The Company's exposure to cash flow interest rate risk relates primarily
to the Company's Loan that bear interest at floating rates.As of June 30 2021 the Company's bank Loan at floating interest rates is RMB 9624275893.96 (RMB7776288840.18 on
December 31 2020). A hypothetical change of 50 basis points in interest rates assuming other variables remain unchanged would
not have a material impact on the Company's total profit and shareholders' equity.2. Foreign Exchange Risk
The foreign exchange risk refers to the risk in which the fair value or future cash flow of financial instruments changes due to
the change of foreign exchange rate. The Company's exposure to changes in foreign exchange rates relates primarily to the
Company's assets and liabilities denominated in foreign currencies. For assets and liabilities denominated in foreign currencies in the
event of a short-term imbalance the Company will buy or sell foreign currencies at market rates when necessary to ensure that the
net risk exposure is maintained at an acceptable level.Details of the Company's period-end assets and liabilities denominated in foreign currencies are described in VII 57(1) of this
section of the Financial Report.XI. Disclosure of Fair Values
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
Fair values at period-end
Third level
Item First level measurement Second level
measurement at fair Total
ata fair value measurement at fair value
value
I. Constant
measurement at fair -- -- -- --
value
1. Trading Financial
6426200.12 1320000000.00 1326426200.12
Assets
Financial Assets at
Fair Value through
6426200.12 1320000000.00 1326426200.12
Profit or Loss in This
Period
Including:
Principal-Protected 1320000000.00 1320000000.00
Floating -Income
Financial Products
Derivative Financial
6426200.12 6426200.12
Assets
2. Receivables
33076624.55 33076624.55
Financing
3. Investment in Other
22998147.55 22998147.55
Equity Instruments
Total assets constantly
6426200.12 1376074772.10 1382500972.22
measured at fair value
2. For the continuous and non-continuous second-level fair value measurement items the valuation
techniques adopted and the qualitative and quantitative information of important parameters
The fair value was determined based on the quoted forward exchange rate published by Bank of China Limited. at the end of
the period.3. For the continuous and non-continuous third-level fair value measurement items the valuation
techniques adopted and the qualitative and quantitative information of important parameters
1. For the purchased principal-protected floating-income short-term bank financial products and structured deposits their fair
values were determined by their face values.2. For bank acceptance bills their fair values were determined by their face values.3. The Company adopted the cost of investment as a reasonable estimate of fair value because there were no significant
changes in the business environment operating conditions and financial position of the invested companies Second Pharma Co.Ltd.and Shanghai NewMargin Yongjin Eqiuty Enterprise
XII. Related Parties and Related-party Transactions
1. The Company's Parent Company
Shareholding ratio Proportion of
Name of parent Registered
Business Nature Registered Capital of the parent voting rights of the
company Address
company parent company
NHU Holding Xinchang
Manufacturing 120 million 48.55% 48.55%
Group Co. Ltd. Zhejiang
Description of the Company's parent company
The ultimate controlling party of the Company is a natural person Hu Baifan.2. Information about the Company's subsidiaries
Details of the Company's subsidiaries are provided in the notes to this section IX.1 of the Financial Report.3. Information about the Company's joint ventures and affiliates
Details of the Company's essential joint ventures and affiliates are provided in the notes to this section IX.2 of the Financial Report.Here are the information about other joint ventures and affiliates that have related-party transactions with the Company in the current
period or have balance from related-party transactions with the Company in the previous period:
Names of joint ventures and affiliates Relationship with the Company
Zhejiang Chunhui Environmental Protection Energy Co. Ltd. Affiliates of the Company
Zhejiang Saiya Chemical Materials Co. Ltd. Affiliates of the Company
DSM NHU Engineering Materials (Zhejiang) Co. Ltd. Affiliates of the Company
4. Information about other related parties
Names of other related parties Relationship between the Company and other related parties
SYNCHEM INTERNATIONAL CO.LTD Joint-stock company by the Company's actual controller
Beijing Winsunny Pharmaceutical CO.LTD Controlled by NHU Holding Group Co. Ltd.Zhejiang ASEN Pharmaceutical Co.Ltd Controlled by NHU Holding Group Co. Ltd.Xinchang County Hechun Greening Co. Ltd Controlled by NHU Holding Group Co. Ltd.Zhejiang Deli Equipment Co. Ltd. Controlled by NHU Holding Group Co. Ltd.Front Pharmaceutical Plc. Controlled by NHU Holding Group Co. Ltd.Xinchang County NHU Real Estate Co. Ltd Controlled by NHU Holding Group Co. Ltd.Suihua NHU Real Estate Co. Ltd Controlled by NHU Holding Group Co. Ltd.Weifang NHU Real Estate Co. Ltd Controlled by NHU Holding Group Co. Ltd.Qionghai Heyue Property Services Co. Ltd Controlled by NHU Holding Group Co. Ltd.Boao Qionghai Holliyard Hotel Management Co. Ltd Controlled by NHU Holding Group Co. Ltd.Shaoxing Heyue Property Services Co. Ltd Controlled by NHU Holding Group Co. Ltd.Shangyu Shaoxing NHU Real Estate Co. Ltd Controlled by NHU Holding Group Co. Ltd.Xinchang Qinjin Investment Co. Ltd. Holding company by the Company's actual controller
Shaoxing Formost Material Co. Ltd. Joint-stock company by the Company's actual controller
Heilongjiang Haotian Corn Development Co. Ltd. Subsidiary as minority shareholder
Other notes
Customer Three holds 25% of the equity in NHU Europe GmbH a controlling subsidiary of the Company's subsidiary NHU
(Hong Kong) Trading Co. Ltd. For the sake of prudence the Company discloses the transactions and payment balances between
Customer Three and the subsidiary NHU Europe GmbH in related-party transactions.5. Information about related-party transactions
(1) Related-party transactions involving purchase and selling of merchandise and provision and acceptance
of labor services
Merchandise purchase and acceptance of labor services
Unit: RMB
Content of the This Period's Over the Previous Period's
Approved
Related parties related - party Amount of transaction Amount of
transaction limit
transaction Occurrence limit or not Occurrence
Zhejiang Deli Equipment Purchase of
22406681.48 90000000.00 No 25086854.11
Co. Ltd. merchandise
Zhejiang Chunhui Purchase of steam 43692487.59 70200000.00 No 32340736.57
Environmental Protection Waste treatment
68688.20 133030.80
Energy Co. Ltd. service fee
Zhejiang Saiya Chemical Purchase of
100257926.52 175000000.00 No 75061380.31
Materials Co. Ltd. merchandise
Zhejiang ASEN Purchase of
1255535.33 1019964.60
Pharmaceutical Co.Ltd merchandise
Xinchang County Hechun Purchase of
3981660.62 9089239.86
Greening Co. Ltd merchandise
Catering and
Boao Qionghai Holliyard
accommodation 64855.00 41229.00
Hotel Management Co. Ltd
services
Qionghai Heyue Property Property
375616.74 317448.87
Services Co. Ltd management
Shaoxing Heyue Property Property
187934.15 212058.42
Services Co. Ltd management
Catering and
Xinchang County NHU Real
accommodation 465980.79 270148.21
Estate Co. Ltd
services
Shandong Bin'an Technology
Training fee 185789.16 0.00
Co. Ltd.Subtotal 172943155.58 143572090.75
Sales of merchandise and provision of services
Unit: RMB
Content of the
This Period's Amount of Amount Occurred in the
Related parties related - party
Occurrence Previous Period
transaction
Pharmaceutical
SYNCHEM INTERNATIONAL CO.LTD 78979450.67 55169808.72
intermediates
Front Pharmaceutical Plc. Testing fee 6018.87
Pharmaceutical
Beijing Winsunny Pharmaceutical CO.LTD 141509.43
intermediates
Pharmaceutical
Zhejiang ASEN Pharmaceutical Co.Ltd 297917.51 566371.68
intermediates
New materials 40144943.15 13390484.38
Utility bill 525305.20 181002.80
DSM NHU Engineering Materials (Zhejiang)
Co. Ltd. Loading and
unloading 28245.28
charges
Total 120117371.24 69313686.45
(2) Related leasing
The Company being the lessor:
Unit: RMB
Rental income
Rental income confirmed
Name of the lessee Type of the leased assets confirmed in this
in the previous period
period
Boao Qionghai Holliyard Hotel Land use rights and
60000.00
Management Co. Ltd houses
DSM NHU Engineering Materials Land use rights and
190139.67 191189.91
(Zhejiang) Co. Ltd. houses
Land use rights and
NHU Holding Group Co. Ltd. 16513.76 27522.94
houses
The Company being the lessee:
Unit: RMB
Lease expense recognized Lease expense recognized
Name of the lessor Type of the leased assets
during the current period during the previous period
NHU Holding Group Co.Land use rights and houses 905906.40 905906.40
Ltd.
(3) Related guarantee
The Company being the secured party
Unit: RMB
Guarantor Guarantee Amount Starting date Maturity date Guarantee fulfilled
completely or not
500000000.00 January 23 2019 December 21 2023 No
200000000.00 July 31 2020 July 18 2022 No
200000000.00 July 31 2020 June 15 2022 No
NHU Holding Group
300000000.00 November 17 2020 November 16 2022 No
Co. Ltd.500000000.00 December 03 2020 September 21 2025 No
200000000.00 January 20 2021 January 19 2023 No
100000000.00 April 14 2021 April 12 2023 No
Subtotal 2000000000.00
(4) Remuneration to key management personnel
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Salary of key management personnel 5177598.00 2982381.00
(5) Other related-party transactions
(1) The owners of Boao Resort Center apartments entrusted the operation and management of the serviced apartments to Boao
Qionghai Holliyard Hotel Management Co. Ltd
(2) The amount of goods sold by NHU EUROPE GmbH to Customer Three during the current period was RMB 55983045.96 and
the balance of accounts receivable at the end of the period was RMB 7751954.68
6. Receivables and payables of the related parties
(1) Receivables
Unit: RMB
Closing Balance Opening Balance
Item Name Related parties Bad Debt
Book Balance Book balance Bad debt provision
Provision
SYNCHEM
INTERNATIONA 28290235.23 1249559.78 24564693.12 1228234.66
L CO.LTD
Accounts DSM NHU
receivable Engineering
Materials 22299897.69 1114994.89 18972791.53 948639.58
(Zhejiang) Co.Ltd.Subtotal 50590132.92 2364554.67 43537484.65 2176874.24
Zhejiang Deli
Prepayments Equipment Co. 21549049.10
Ltd.Subtotal 21549049.10
Zhejiang Chunhui
Environmental
Other Receivables 80000.00 80000.00
Protection Energy
Co. Ltd.Subtotal 80000.00 80000.00
Shangyu Shaoxing
Other Non-current
NHU Real Estate 168339247.00 101003548.00
Assets
Co. Ltd
Subtotal 168339247.00 101003548.00
(2) Payables
Unit: RMB
Item Name Related parties Closing balance Opening Balance
Zhejiang Deli Equipment Co.3085920.94 7314438.78
Ltd.Zhejiang Chunhui
Environmental Protection 8159367.60 7449905.70
Energy Co. Ltd.Zhejiang Saiya Chemical
Accounts Payable 18782927.22 115.04
Materials Co. Ltd.Second Pharma Co.Ltd. 6408.00
Suihua NHU Real Estate Co.10374876.83 10374865.03
Ltd
Xinchang County Hechun
777984.05 1943036.80
Greening Co. Ltd
Subtotal 41187484.64 27082361.35
Zhejiang Deli Equipment Co.14700.89 13009.64
Ltd.Contract liabilities
Zhejiang ASEN
1858.41
Pharmaceutical Co.Ltd
Subtotal 14700.89 14868.05
Other Payables Zhejiang Deli Equipment Co. 663500.00 3500.00
Ltd.Xinchang County Hechun
480.00
Greening Co. Ltd
Weifang NHU Real Estate
87148146.46
Co. Ltd
Subtotal 663500.00 87152126.46
XIII. Commitments and Contingencies
1. Significant commitments
Important commitments on the balance sheet day
1. Forward exchange settlement contracts
According to the "Global Capital Market Transactions" and related transaction application forms signed between the Company
and HSBC Bank (China) Limited Hangzhou Branch the "Master Agreement on Financial Derivatives Transactions in the China
Interbank Market (2009 Version)" and supplementary agreements signed with DBS Bank (China) Limited Shanghai Branch and the
"ISDA 2002 MASTER AGREEMENT" signed with Bank of China (Hong Kong) Limited the details of the Company's undelivered
forward exchange settlement contracts as of June 30 2021 are as follows:
Currency Nominal amount in USD Nominal amount in Euro Agreed exchange rate Closing date
5000000.00 6.4710 2021/7/16
5000000.00 6.4660 2021/7/16
5000000.00 6.4760 2021/7/26
5000000.00 6.4705 2021/7/26
10000000.00 6.5390 2021/7/26
4000000.00 7.8920 2021/7/26
USD/EUR
7000000.00 7.7832 2021/7/26
4000000.00 7.7165 2021/8/16
4000000.00 7.9142 2021/8/25
4000000.00 7.7220 2021/8/25
5000000.00 7.9580 2021/10/22
5000000.00 7.9580 2021/11/22
Subtotal 30000000.00 33000000.00
2. Various types of unexpired guarantees issued
As of June 30 2021 the various types of unexpired guarantees issued by the Company and its subsidiaries are as follows：
Issuing bank Applicant Type of guarantee Amount of guarantee Conditions of issuance
Bank of China Limited Performance guarantee USD128710.00 Use of bank credit lines
The Company
Xinchang Sub-branch Performance guarantee USD101540.00 Use of bank credit lines
HSBC Bank (China) Co. The Company Financing guarantee EUR 10000000.00 Use of bank credit lines
Ltd. Hangzhou Branch Financing guarantee EUR 10000000.00 Use of bank credit lines
3. Unexpired letters of credit issued
As of June 30 2021 the unexpired letters of credit issued by the Company and its subsidiaries are as follows:
Issuing bank Applicant Letter of credit balance Conditions of issuance
USD 254151.00 Use of bank credit lines
USD 45450.00 Use of bank credit lines
Bank of China Limited
The Company USD 751426.20 Use of bank credit lines
Xinchang Sub-branch
USD 214693.20 Use of bank credit lines
USD 1019792.70 Use of bank credit lines
China Construction Bank
Corporation Weifang Binhai Shandong Pharmaceutical EUR 2740000.00 Use of bank credit lines
Sub-branch
Bank of China Limited
Zhejiang Special Materials JPY 220000000.00 S ecurity deposit of JPY 220000000.00
Shangyu Sub-branch
Bank of Communications
The Company CNY 100000000.00 S ecurity deposit of CNY 10000000.00
Shaoxing Xinchang Sub-branch
4. "Note pool" business
The Company and its subsidiary NHU Import & Export entered into the "Bank of Communications Yun Tong Account Note
Pooling Service Agreement" with Bank of Communications Co. Ltd. under which the Company pledged and endorsed bank
acceptances to the depositary bank constituting a pledged note pool; and the Company opens a margin account for the note pool to
deposit margins as security for the credit granted under the note pledge and to deposit the pledged bank acceptances for payment. The
available credit limit of the Company's pledge is the sum of the pledged notes and the immediate balance of the margin account less
the used pledged notes and the agreement stipulates that the sum of the pledged notes and the margin account of the Group shall not
be less than the pledged amount used for issuing the notes. The Company and its subsidiaries Shangyu NHU Bio-Chem Zhejiang
Pharmaceutical Zhejiang Special Material Shaoxing Yuchen New Materials Shandong Pharmaceutical Shandong Vitamin
Shandong Amino-acids Acid Heilongjiang Biotechnology Shandong Fine Chemical Heilongjiang Xinhao Thermal Power
Xinchang Vitamin and Zhejiang Vityesun entered into the "Note Pool Business Cooperation Agreement" with China Zheshang Bank
Co. Ltd. under which the Company pledged the asset pool or the note pool as security and opened a margin account for the note
pool to pay the margin at a certain ratio with no specific agreement on the amount of the margin. As of June 30 2021 the balance of
bank acceptance notes pledged by the Company amounted to RMB 440436969.40 and the deposit of RMB 196531116.11 in the
note pool with China Zheshang Bank Co. Ltd.XIV. Events after the Balance Sheet Date
As of the date when this Financial Statement was approved for external reporting the Company had no other material events
after the balance sheet date.XV. Other Significant Matters
1. Subsection information
(1) Basis for determining the reporting subsection and the accounting policy
The Company determines the reporting subsection according to the internal organizational structure management requirements
and internal reporting system as well as the industry sections. Assets and liabilities used jointly by the sections are allocated among
the different sub-sections in proportion to their scales.
(2) Financial information of the reporting subsection
Unit: RMB
Pharmaceutical
Item Others Inter-section offset Total
chemicals
Main business revenue 7130020338.49 267320671.46 216751757.40 7180589252.55
Main business cost 3705929273.76 219967294.49 216751757.40 3709144810.85
Total assets 31834715605.92 2413726315.89 600467111.90 33647974809.91
Total liabilities 12696364683.97 1260942650.95 600467111.90 13356840223.02
2. Others
(1) Matters related to the Employee Stock Ownership Plan
On November 11 2020 the Company held the Second Extraordinary General Assembly of 2020 to deliberate and approve the
proposals related to the Employee Stock Ownership Plan including the Third Employee Stock Ownership Plan of Zhejiang NHU Co.Ltd. (Draft) and its Summary and approved the implementation of the Third Employee Stock Ownership Plan of the Company. The
self-financing source of the holders of this Employee Stock Ownership Plan is the legal remuneration of the employees of the
Company self-financing and other means permitted by laws and administrative regulations with the amount of capital contribution
not exceeding RMB 153 million and the capital allotment not exceeding RMB 153 million (bank borrowing or major shareholder
borrowing) in the ratio of 1:1 for a total amount of funds not exceeding RMB 306 million. The occupancy fee of the major
stockholder borrowing is 6% and the interest of the corresponding proportion of the principal is returned according to the settlement
time and proportion of the stock ownership plan but the interest is not charged when the loss or gain of the stock ownership plan is
lower than the fee (including the management fee transaction fee interest of the allotment part etc.). As of February 26 2021 the
Company's Third Employee Stock Ownership Plan purchased a total of 8442935 shares of the Company through secondary market
bidding transactions accounting for 0.39% of the total share capital of the Company with a transaction amount of
RMB303710918.74 and an average transaction price of approximately RMB35.97 per share thus completing the purchase of shares
under the Company's Third Employee Stock Ownership Plan.
(2) Purchases of financial products with funds raised
The Company held the 2020 Annual General Assembly on April 21 2021 at which the "Proposal on the Use of Part of Unused
Funds Raised for Cash Management" was deliberated and approved agreeing that the Company should use unused funds raised up to
RMB3.57 billion (including RMB3.57 billion) for cash management and purchase short-term financial products with high security
good liquidity and capital protection agreement for a period of not more than 12 months from the date of approval at the 2020 Annual
General Assembly to the 2021 General Assembly on a rolling basis provided that the normal operation of the investment projects of
the funds raised is not affected. As of June 30 2021 the actual balance of financial products and structured deposits purchased by the
Company with temporarily idle funds raised was RMB 3.57 billion.XVI. Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts receivable
(1) Categorical Disclosure of Accounts Receivable
Unit: RMB
Closing Balance Opening Balance
Book Balance Bad Debt Provision Book balance Bad Debt Provision
Category
Accrued Book Book
Percen Accrued
Amount Percentage Amount Proporti Value Amount Amount Value
tage Proportion
on
Accounts
Receivables with
the Bad Debt 444161 843906 741143 100.00 37057194. 704086
888322861.11 100.00% 5.00% 5.00%
Provision Accrued 43.06 718.05 885.29 % 26 691.03
Based on
Combinations
444161 843906 741143 100.00 37057194. 704086
Total 888322861.11 100.00% 5.00% 5.00%
43.06 718.05 885.29 % 26 691.03
Bad debt provision based on combinations
Unit: RMB
Closing Balance
Name
Book balance Bad Debt Provision Accrued proportion
Within 1 Year 888322861.11 44416143.06 5.00%
Disclosure by age
Unit: RMB
Aging Closing Balance
Within 1 Year (Including 1 Year) 888322861.11
Total 888322861.11
(2) Provision for Bad Debts Accrued Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
Balance Accrued Written Off Others Balance
Reversed
Bad Debt
Provision
37057194.26 7358948.80 44416143.06
Based on
Combinations
Total 37057194.26 7358948.80 44416143.06
(3) Accounts Receivable of the Top Five Balances at the End of the Period Collected by Indebted Parties
Unit: RMB
Balance of Accounts As a Percentage of Total
Bad Debt Provision at the
Name of Unit Receivable at the End of the Other Receivables at the End
End of the Period
Period of the Period
Customer 1 482605460.05 54.33% 24130273.00
Customer 2 88345208.00 9.95% 4417260.40
Customer 3 71589326.08 8.06% 3579466.30
Customer 4 44596983.78 5.02% 2229849.19
Customer 5 24876357.06 2.80% 1243817.85
Total 712013334.97 80.16%
2. Other receivables
Unit: RMB
Item Closing Balance Opening Balance
Dividends Receivable 186000000.00
Other Receivables 3979535890.92 4247680763.92
Total 4165535890.92 4247680763.92
(1) Dividends Receivable
1) Classification of Dividends Receivable
Unit: RMB
Project (or Invested Unit) Closing Balance Opening Balance
Shandong Pharmaceutical 186000000.00
Total 186000000.00
(2) Other receivables
1) Other receivables categorized by the nature of the funds
Unit: RMB
Nature of the funds Closing balance Opening Balance
Guarantee Deposit 98597037.50 98617037.50
Export Refunds 6807503.13 2982236.49
Employee Imprest 3378537.00 3754737.00
Temporary Payments Receivable 178933.01
Borrowed Funds 4075350397.87 4361194541.67
Others 758082.17 472076.44
Total 4184891557.67 4467199562.11
2) Bad Debt Provision
Unit: RMB
Phase One Phase Two Phase Three
Expected credit losses for
Expected Credit Expected Credit Losses
Bad Debt Provision the entire extension Total
Losses in the Next for the Entire Extension
(without credit
12 Months (with Credit Impairment)
impairment)
Balance on January 1
218136891.03 546150.58 835756.58 219518798.192021
Balance in the Current
Period on January 1 —— —— —— ——2021
--Transfer to Phase
-88078.75 88078.75
Two
--Transfer to Phase
-89692.30 89692.30
Three
Provisions in the
-14189368.31 -192222.03 218458.90 -14163131.44
Current Period
Balance on June 30
203859443.97 352315.00 1143907.78 205355666.752021
Book balance changes with significant changes in loss provision in the current period
□ Applicable √ Not applicable
Disclosure by age
Unit: RMB
Aging Closing Balance
Within 1 Year (Including 1 Year) 4083996382.60
1 to 2 Years 1761574.99
2 to 3 years 448461.51
3 years or above 98685138.57
3 to 4 Years 4021.95
4 to 5 Years 98029884.29
5 Years or above 651232.33
Total 4184891557.67
3) Provision for Bad debts Accrued Recovered or Reversed in the Current Period
Provision for bad debts in the current period:
Unit: RMB
Amount of Changes in the Current Period
Opening Closing
Category Recovered or
Balance Accrued Written Off Others Balance
Reversed
Bad Debt
Provision
219518798.19 -14163131.44 205355666.75
Based on
Combinations
Total 219518798.19 -14163131.44 205355666.75
4) Other Receivables of the Top Five Closing Balances Collected by Indebted Parties
Unit: RMB
As a Percentage of
Bad debt provision
Nature of the Balance at the Total Other
Name of Unit Aging at the end of the
Funds End of the Period Receivables at the
period
End of the Period
Heilongjiang
Biological Borrowed Funds 1375180313.90 Within 1 Year 32.86% 68759015.70
Technology
Shandong
Borrowed Funds 902126300.98 Within 1 Year 21.56% 45106315.05
Amino-acids
Shandong Jinghua Borrowed Funds 562274895.47 Within 1 Year 13.43% 28113744.77
Shandong Vitamins Borrowed Funds 488395602.76 Within 1 Year 11.67% 24419780.14
Zhejiang Special Borrowed Funds 339684229.18 Within 1 Year 8.12% 16984211.46
Materials
Total -- 3667661342.29 -- 87.64% 183383067.12
3. Long-term equity investment
Unit: RMB
Closing Balance Opening Balance
Item Provision for Provision for
Book Balance Book value Book balance Book value
decline in value decline in value
Investment in
6833278842.12 6833278842.12 6173278842.12 6173278842.12
subsidiaries
Investment in
affiliates and 216222623.59 216222623.59 199358330.80 199358330.80
joint ventures
Total 7049501465.71 7049501465.71 6372637172.92 6372637172.92
(1) Investment in Subsidiaries
Unit: RMB
Decrease/Increase in the Current Period
Opening Provision Closing balance
The Invested Closing Balance
Balance (Book Investments Investment for of provision for
Entity Others (Book Value)
Value) Increased Decreased impairment decline in value
accrued
Xinchang
49407990.15 100000000.00 149407990.15
Vitamins
NHU Import &
13500000.00 13500000.00
Export
Boao Lidu 54020492.00 54020492.00
Zhejiang VYS 5000000.00 5000000.00
Shangyu
414100091.44 414100091.44
Bio-Chem
Shandong
586000000.00 586000000.00
Pharmaceutical
NHU (Hong
16406160.00 16406160.00
Kong)
Zhejiang
480000000.00 480000000.00
Pharmaceutical
Zhejiang 554844108.53 554844108.53
Special
Materials
Shandong 2900000000.0 2900000000.0
Amino-acids 0 0
Shandong 586000000
786000000.00 200000000.00
Holding .00
Heilongjiang
1300000000.0
Biological 900000000.00 400000000.000
Technology
Shandong
160000000.00 160000000.00
Jinghua
6173278842.1 586000000 6833278842.1
Total 1246000000.00
2 .00 2
(2) Investment in affiliates and joint ventures
Unit: RMB
Decrease/Increase in the Current Period
Investment
Adjustm Cash Closing
Opening Profit and Provision Closing
Inves ent on Other Dividends balance of
Name of Balance Loss for Balance
Investments tment Other Changes or Profit provision
Investees (book Recognize Impairme Others (Book
Increased Decr Compre in Declared for decline
value) d under the nt Value)
eased hensive Equity to in value
Equity Accrued
Income Distribute
Method
Affiliate
Zhejiang
Chunhui
199358 16864292 216222
Environmental
330.80 .79 623.59
Protection
Energy Co. Ltd.199358 16864292 216222
Total
330.80 .79 623.59
4. Operating income and operating costs
Unit: RMB
This Period's Amount of Occurrence Amount Occurred in the Previous Period
Item
Income Cost Income Cost
Main Business 2385252517.66 1634468165.07 2235493773.37 1357878710.73
Other Businesses 19819223.76 15301495.85 9531223.70 5986597.49
Total 2405071741.42 1649769660.92 2245024997.07 1363865308.22
Information about revenue:
Unit: RMB
Contract Classification Pharmaceutical chemicals Total
Principal Place of Business
Of which: Domestic 1177299548.21 1177299548.21
Overseas 1227772193.21 1227772193.21
Subtotal 2405071741.42 2405071741.42
Main Product Types
Of which: Nutritional products 2352864603.63 2352864603.63
Others 52207137.79 52207137.79
Subtotal 2405071741.42 2405071741.42
Time of Revenue Recognition
Including: Commodities (Transferred at a Point) 2405071741.42 2405071741.42
Subtotal 2405071741.42 2405071741.42
Information about performance of obligations:
N/A
Information about transaction price allocated to the remaining performance of obligations:
The revenue corresponding to the performance of obligations under the contracts which are signed but are not performed or not
performed completely at the end of this reporting period is RMB 411632910.53 in which RMB 411632910.53 is estimated to be
recognized as revenue in 2021.5. Investment income
Unit: RMB
Item This Period's Amount of Occurrence Amount Occurred in the Previous Period
Long-term equity investment income
1289000000.00 955025000.00
calculated by cost method
Long-term Equity Investment Income
16864292.79 7179396.25
Measured by Equity Method
Investment Income from Disposal Trading
-3841064.35 -9817100.00
Financial Assets
Including: Financial Assets at Fair Value
through Profit or Loss in the Current -2653997.46
period
Financial Liabilities Measured at Fair -1187066.89 -9817100.00
Value with Changes Recorded into Current
Profit and Loss
Interest income from interbank lending 74902773.84 89665090.28
Income from financial products 22964570.95 67316825.30
Total 1399890573.23 1109369211.83
XVII. Supplementary Information
1. Breakdown of non-recurring gains and losses for this period
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Profit and Loss from Disposal of Non-current Assets 1065564.79
The government subsidies included in the current profits and losses (excluding the
government subsidies closely related to regular businesses of the Company and
issued in the quota or quantity based on the national standards) 76380676.96
Gains or losses from investment or asset management entrusted to others 29617969.78
Profits and losses resulting from the changes in fair value for holding trading
financial assets derivative financial assets and trading financial liabilities derivative
financial liabilities and investment income from disposal of trading financial assets
23301029.03
derivative financial assets trading financial liabilities derivative financial liabilities
and other obligatory right investment excluding the effective hedging businesses
related to the regular business operation of the Company
Non-operating revenue and expenses other than the above 9566525.91
Less: Impact of income tax 10887288.60
Total 129044477.87 --
For items defined as non-recurring gains and losses according to the No. 1 Explanatory Announcement on Information Disclosure for
Companies Offering Their Securities to Public - Non-recurring Gains and Losses or non-recurring gains and losses items listed in the
said document defined as recurring ones please specify the reasons.□ Applicable √ Not applicable
2. Return on net assets and earnings per share
Earnings per share
Profit for the reporting period Weighted Average ROE Basic Earnings per Diluted Earnings per
Share (RMB/Share) Share (RMB/Share)
Net profit attributable to common 12.02% 0.93 0.93
shareholders of the Company
Net profit attributable to common
shareholders of the Company
11.38% 0.88 0.88
after deducting non-recurring
gains and losses
3. Differences in accounting data between domestic and overseas accounting standards
(1) Differences of net profits and net assets in the financial reports disclosed according to the international
accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
(2) Differences of net profits and net assets in the financial reports disclosed according to the overseas
accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
Section XI Documents Available for Reference
1. Financial statements signed and sealed by the Company's legal representative the person in
charge of finance and accounting work and the person in charge of accounting department;
2. Originals of all the Company's documents and announcements published on newspapers
designated by the China Securities Regulatory Commission within the reporting period;
3. Other documents for reference.Zhejiang NHU Company LTD.Legal Representative: Hu Baifan