Annual Report 2019 of Zhejiang Supor Co., Ltd.
1
Zhejiang Supor Co., Ltd.
Annual Report 2019
April 2020
Annual Report 2019 of Zhejiang Supor Co., Ltd.
2
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND
DEFINITIONS
The Board of Directors and the Board of Supervisors of Zhejiang Supor Co.,
Ltd. (hereinafter referred to as the “Company”) and all its directors, supervisors
and senior executives warrant that this annual report is true, accurate and
complete, and does not contain any fictitious statements, misleading information
or significant omissions; all directors, supervisors and senior executives of the
Company undertake, separately and jointly, all responsibilities in relation to the
truth, accuracy and completeness hereof.
Mr. Thierry de LA TOUR D’ARTAISE, Chairman of the Board of
Directors, and Mr. Xu Bo, Chief Financial Officer of the Company, hereby
confirm that the financial statement enclosed in this Annual Report is true,
accurate and complete.
All directors have attended the Board Meeting in person, in which the
current report was reviewed and approved.
This annual report relating to such forward-looking statement as future
plan does not form any substantive commitment to investors. It is of great
uncertainty, for whether it can be realized or not depends on multiple factors,
including market change and effort of management team. Please be careful of
investment risks.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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As for the risk factors confronted by the Company, see Part 9 “Prospects
for Future Development” of Section IV “Business Operation Discussion &
Analysis”.
The profit distribution plan adopted at this Board Meeting specifies that:
based on 821,099,910(total capital stock of 821,119,910 shares at the end of 2019
deducted by 20,000 shares in the Company’s special securities account for
repurchase) the Company will distribute all shareholders at the price of RMB
13.3 per 10 shares (tax-inclusive) as the cash dividends, issue 0 bonus shares (tax
included) and will not convert capital reserves to capital.
During the period from the disclosure of this profit distribution preplan to
the actual implementation date, if the Company’s capital stock changes due to
conversion of convertible bonds into stocks, share repurchases, equity incentive
exercise, and refinancing and new share listing, it will be executed based on the
changed capital stock, and the above distribution ratio remains unchanged.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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Table of Contents
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND DEFINITIONS ............................................................................2
SECTION II COMPANY FILE AND MAJOR FINANCIAL INDICATORS .........................................................................................6
SECTION III ABSTRACT FOR COMPANY BUSINESSES ............................................................................................................... 10
SECTION IV BUSINESS OPERATION DISCUSSION AND ANALYSIS ......................................................................................... 13
SECTION V SIGNIFICANT EVENTS ................................................................................................................................................ 27
SECTION VI CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHAREHOLDERS .............................................. 50
SECTION VII INFORMATION ON PREFERRED STOCK................................................................................................................ 59
SECTION VIII COMPANY’S CONVERTIBLE BONDS .................................................................................................................... 60
SECTION IX PARTICULARS ABOUT DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT STAFFS ........................ 61
SECTION X CORPORATION GOVERNANCE ................................................................................................................................. 70
SECTION XI COMPANY’S BONDS ................................................................................................................................................... 80
SECTION XII FINANCIAL REPORT.................................................................................................................................................. 81
SECTION XIII CATALOG OF REFERENCE DOCUMENTS .......................................................................................................... 203
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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Definitions
Items to be Defined means Definitions
SZSE means Shenzhen Stock Exchange
CSRC means China Securities Regulatory Commission
CSDCC means Shenzhen Branch of China Securities Depository and Clearing
Corporation Limited
The Company/this Company means Zhejiang Supor Co., Ltd.
SEB Internationale means SEB INTERNATIONALE S.A.S
SEB Group means SEB S.A.
Zhejiang Supor Electrical means Zhejiang Supor Electrical Appliance Manufacturing Co., Ltd
Shaoxing Supor means Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd.
Supor Vietnam means Supor (Vietnam) Co., Ltd
Wuhan Recycling means Wuhan Supor Recycling Co., Ltd
Wuhan Cookware means Wuhan Supor Cookware Co., Ltd.
Wuhan PC means Wuhan Supor Pressure Cooker Co., Ltd.
Omegna means Hangzhou Omegna Commercial Trade Co., Ltd.
Shanghai Marketing means Shanghai Supor Cookware Marketing Co., Ltd.
P&R means Zhejiang Supor Plastic & Rubber Co., Ltd
Wuhan Supor means Wuhan Supor Co., Ltd.
Yuhuan Sales Company means Yuhuan Supor Cookware Sales Co., Ltd.
SEADA means SOUTH EAST ASIA DOMESTIC APPLIANCES PTE. LTD.
AFS means AFS VIETNAM MANAGEMENT CO.LTD.
Shanghai WMF means Shanghai WMF Enterprise Development Co., Ltd.
Shanghai SEB/SSEAC means Shanghai SEB Electrical Appliances Co., Ltd.
Zhejiang WMF means Zhejiang WMF Housewares Co., Ltd.
Shaoxing Supor Housewares means Zhejiang Shaoxing Supor Housewares Co., Ltd.
Supor LKA means Zhejiang Supor Large Kitchen Appliance Co., Ltd.
Supor Water Heater means Zhejiang Supor Water Heater Co., Ltd.
GSIM or Indonesian Company means PT Groupe SEB Indonesia MSD
Equity Incentive Plan for 2017 means 2017 Restricted Stock Incentive Plan (Revised Draft)
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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SECTION II COMPANY FILE AND MAJOR FINANCIAL INDICATORS
II. Company Information
Short Form of the Stock: Supor Stock Code 002032
Stock Exchange for Stock Listing Shenzhen Stock Exchange
Chinese Name of the Company Zhejiang Supor Co., Ltd.
Abbreviated Chinese Name of the Company Supor
English Name of the Company (if any) ZHEJIANG SUPOR CO., LTD.
Abbreviated English Name of the Company
(if any) SUPOR
Legal Representative Thierry de LA TOUR D’ARTAISE
Registration Place Damaiyu Economic Development Zone, Yuhuan, Zhejiang
Postal Code 317604
Office Address 15F of Supor Building, No.1772 Jianghui Road, New & High Tech Development
Zone, Hangzhou, China
Postal Code 310051
Website www.supor.com.cn
Email [email protected]
II. Contact Person and Contact Information
Board Secretary Representative of Securities Affairs
Name Ye Jide Fang Lin
Address
Securities Department at 23F of Supor Building,
No.1772 Jianghui Road, New & High Tech
Development Zone, Hangzhou, China
Securities Department at 23F of Supor Building,
No.1772 Jianghui Road, New & High Tech
Development Zone, Hangzhou, China
Tel.: 0571-86858778 0571-86858778
Fax: 0571-86858678 0571-86858678
Email [email protected] [email protected]
III. Place for Information Disclosure and Archiving
Papers appointed by the Company for information
disclosure: Securities Times, Securities Daily and China Securities Journal
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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Website appointed by CSRC for information
disclosure www.cninfo.com.cn
Place for archiving of the Company’s annual report: Securities Department of the Company
IV. Changes of Registration
Organization Code Unified social credit code: 913300007046976861
Change of main business since listing of the
Company (if any) No change
Change of controlling shareholders (if any) No change
V. Other Relevant Information
Certified Public Accountants engaged by the Company
Name of the Certified Public Accountants: Union Power Certified Public Accountants (Special General Partnership)
Office Address of the Certified Public Accountants: No. 169, Donghu Road, Wuchang District, Wuhan City
Name of the Signatory Accountants Li Wei, Li Huihui
Sponsor Institution engaged by the Company for performing continuous supervision duties in the reporting period
□ Applicable √ Not-applicable
Financial adviser engaged by the Company for performing continuous supervision duties in the reporting period
□ Applicable √ Not-applicable
VI. Major Accounting Data and Financial Indicators
Does the company need to retroactively adjust or restate previous year’s accounting data?
□ Yes √ No
2019 2018 Increase/ decrease (%) 2017
Operating income (Yuan) 19,853,477,882.97 17,851,264,801.72 11.22% 14,542,193,769.70
Net profit attributable to shareholders of
listed company (Yuan) 1,919,914,191.25 1,669,873,440.00 14.97% 1,326,195,778.24
Net profit attributable to shareholders of
listed company with non-recurring
profit or loss deducted (Yuan)
1,734,302,272.66 1,512,687,605.44 14.65% 1,207,290,206.76
Net cash flows from operating activities
(Yuan) 1,732,940,977.12 2,013,658,744.84 -13.94% 1,101,068,593.63
Basic earnings per share (Yuan/share) 2.347 2.041 14.99% 1.623
Diluted earnings per share (Yuan/share) 2.338 2.033 15.00% 1.615
Weighted average return on net assets 30.54% 28.84% +1.70pts 26.15%
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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2019 year end 2018 year end Increase/decrease in
the period (%) 2017 year end
Total assets (Yuan) 11,847,953,986.45 10,633,161,177.21 11.42% 9,462,215,289.52
Net assets attributable to shareholders
of listed company (Yuan) 6,836,417,032.56 5,907,337,461.81 15.73% 5,407,071,353.16
VII. Financial Data Difference on Principle of Domestic and Oversea Accounting
1. Net profit and net assets discrepancies in financial statements disclosed separately under International
Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not-applicable
No net profit and net assets discrepancies in financial statements disclosed separately under International Accounting Standards and
Chinese Accounting Standards existed in the reporting period
2. Net profit and net assets discrepancies in financial statements disclosed separately under Overseas
Accounting Standards and Chinese Accounting Standards
□ Applicable √ Not-applicable
No net profit and net assets discrepancies in financial statements disclosed separately under Overseas Accounting Standards and
Chinese Accounting Standards existed in the reporting period.
VIII. Quarter-based Major Financial Indicators
Unit: Yuan
The 1st quarter The 2nd quarter The 3rd quarter The 4th quarter
Total sales 5,473,577,143.92 4,362,006,544.86 5,060,731,903.21 4,957,162,290.98
Net profit attributable to
shareholders of listed company 514,945,858.67 323,197,939.26 410,255,559.78 671,514,833.53
Net profit attributable to
shareholders of listed company
deducted by non-recurring profit or
loss
498,562,959.33 318,146,512.78 405,075,621.41 512,517,179.14
Net cash flows from operating
activities -118,659,387.09 91,273,566.62 216,040,859.11 1,618,285,938.48
Any difference between financial indicators or the total and relevant financial indicators disclosed in quarter-based report or
semiannual report
□ Yes √ No
IX. Non-recurring Profit or Loss Items and Amount
√ Applicable □ Not-applicable
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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Unit: Yuan
Item Amount in 2019 Amount in 2018 Amount in 2017 Notes
Profit and loss on disposal of non-current assets
(including the write-off of provision for asset
impairment)
-2,105,177.52 501,295.73 -506,059.42
Government subsidy included in current profit or
loss (excluding government subsidies closely
related to operating activities of the Company and
subject to uniform national standards on amount
and quantity)
165,824,087.78 109,921,377.76 82,544,040.78
Net profit or loss from enterprise merger under the
same control of a subsidiary in current period from
the beginning of the period to the date of merger
3,663,853.29
Except the effective hedging business related to the
normal operation of the company, the gain and loss
in FV changes from trading financial assets、
derivative financial assets、trading financial
liability、derivative financial liability and disposal
of trading financial assets、derivative financial
assets、trading financial liability、derivative
financial liability and investment revenue from
other liability investment
66,972,830.91
Turn-over of provision for impairment of
receivables undergoing impairment test separately
and contract assets
1,052,556.44
Other non-operating revenues or expenditures
except for the foregoing items -21,635,004.92 142,393.13 -8,252,542.47
Other profit or loss conforming to the definition of
non-recurring profit or loss 12,102,997.12 73,410,582.93 68,438,195.04
Minus: income tax impact 35,547,895.67 31,506,588.26 23,293,125.16
Effects on minority interest (after tax) -80.89 -363.54 24,937.29
Total 185,611,918.59 157,185,834.56 118,905,571.48 --
The Company should state reason for defining “non-recurring profit or loss items” defined in the Explanatory Announcement No.1
on Disclosure of the Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss and
non-recurring profit or loss items listed in the Explanatory Announcement No.1 on Disclosure of the Information of Companies
Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profit or loss items.
□ Applicable √ Not-applicable
The Company did not define any non-recurring profit and loss that is defined and listed the Explanatory Announcement No.1 on
Disclosure of the Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profit
and loss.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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SECTION III ABSTRACT FOR COMPANY BUSINESSES
I. Main business during reporting period
As China’s famous cookware R&D and manufacturing company, Zhejiang Supor Co., Ltd. (hereinafter referred to as “the
Company”) is a China’s leading manufacturer of small kitchen electrical appliances and also the first listed company in China’s
cookware industry. Established in 1994, the headquarters of the Company locates in Hangzhou owning 5 R&D and manufacture
bases located in Yuhuan City, Wuhan City, Hangzhou City, Shaoxing City and Ho Chi Minh City with more than 12,000 employees.
Developed strategic cooperation relationship with the Company since 2006, SEB Group is the actual controller of the Company.
By the end of the reporting period, SEB Group held 81.19% shares of the Company. With a long history of more than 160 years, SEB
Group is the world’s famous cookware R&D manufacturer and small home appliance manufacturer with about 350 million products
sold to more than 150 countries worldwide per year.
Supor’s main businesses include: CW, SDA, Large Kitchen Appliance and H&PC products.
(1) The CW mainly includes wok, pressure cooker, fry pan, sauce pan, steamer, pottery pot, kettle, knife, spatula, thermal pot,
thermos& flask, kitchen gadgets, crisper, etc.
(2) The SDA mainly includes: electric rice cooker, electric pressure cooker, induction hob, soymilk maker, electric kettle, juice
extractor, slow cooker, electric steamer, electric chafing dish, food processor, baking pan, bread maker, noodle maker, electric frying
pan, etc.
(3) The Large Kitchen Appliance mainly includes: range hood, gas cooker, sterilizer, water purifier, embedded steaming oven,
etc.
(4) The H&PC mainly includes: air purifier, garment steamers, dust cleaner and electric iron.
The Company’s cookware and small kitchen electrical appliances have been exported to more than 50 countries such as Japan,
European and American countries through SEB Group.
II. Significant Changes in Main Assets
1. Significant changes in main assets
Main assets Descriptions of major changes
Equity assets No significant change
Fixed assets No significant change
Intangible assets No significant change
Construction in progress Increased by 430.46% mainly due to the increase in construction-in-progress project of the Company
and its subsidiaries.
Transactional financial
assets
Increased by 100.00% mainly due to the inclusion of the amount in “financial assets measured at fair
value through current profit or loss” in the corresponding period and in the current item in the current
period subject to the adoption of the new financial instruments standards during the reporting period.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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Financial assets held at fair
value through profit or loss
Decreased by 100.00% mainly due to the inclusion of the amount in the current item in the
corresponding period and in the “transactional financial assets” in the current period subject to the
adoption of the new financial instruments standards during the reporting period.
Notes receivable
Decreased by 100.00% mainly due to the inclusion of the amount in the current item in the
corresponding period and in the “receivables financing” in the current period subject to the adoption
of the new financial instruments standards during the reporting period.
Financing of receivables
Increased by 100.00% mainly due to the inclusion of the amount in the “notes receivable” in the
corresponding period and in the current item in the current period subject to the adoption of the new
financial instruments standards during the reporting period.
Other receivables Decreased by 90.07%, which was mainly caused by the receipt in current period of the insurance
proceed receivable and export VAT refund receivable.
Deferred income tax assets Increased by 35.00%, attributable to increase in temporary difference caused by the fees payables of
subsidiaries.
2. Main overseas assets
□ Applicable √ Not-applicable
III. Core competitiveness analysis
1. Outstanding product innovation capability
As a company long time devoted to R&D, manufacturing and selling of CW and kitchen SDA products, Supor has an acute
observation and scientific research of the needs of Chinese consumers and has developed a systematic innovation system to
ceaselessly launch new products in the market.
After 1994 when Supor launched the domestic first safety pressure cooker, the Company also launched the first electric rice
cooker with ceramic crystal liner in 2005, pioneered the uncoated stainless iron pan technology in 2007, successfully introduced SEB
flaming dot patented technology in 2009, launched the industrial first IH electric rice cooker in 2011, pioneered the spherical liner in
2013, ceremoniously launched the industrial first steam IH electric rice cooker with spherical liner in 2015, innovated technology of
electric rice cooker liner and launched the Shallow Pot IH Rice Cooker in 2018 and launched the first detachable high speed blender
and low-GI rice cooker in 2019. Supor continues leading the industry. Besides, the Company’s innovative differential products such
as the Clipso Efficient Yueti Pressure Cooker and ceramic pot are very popular among customers.
According to the market data of China’s 30 key cities monitored by GFK in 2019, the Company’s cookware market shares
ranked the first; according to the data of China’s offline small household appliance market monitored by CMM in 2019, the market
shares of the Company’s 9 categories of small household appliances ranked the second in total.
2. Well-developed dealers network
Supor has stable dealer teams, and maintained good cooperative relationship with them. The relatively high coverage rate and
density of its sales network ensure the uninterrupted supply of Supor products.
3. Strong R&D and manufacturing capacity of CW and SDA
Supor has built up five production bases, respectively in Yuhuan, Wuhan, Hangzhou, Shaoxing and Vietnam. In particular, the
annual production scale of Wuhan Base and Shaoxing Base ranked the top in the industry. The strong R&D power and the highly
professional R&D team provide a powerful guarantee for the quality and innovation capacity of Supor products.
4. Synergistic effect of integration with SEB
Since 2006, the Company has started to establish strategic cooperation relationship with SEB which owns a long history of more
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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than 160 years with leading market shares of cookware and small household appliances worldwide. The powerful cooperation
between Supor and SEB has brought stable export orders to the Company, and increased its overall business size and manufacturing
capacity. Meanwhile, the cooperation in aspects of R&D and management will surely enhance the core competitiveness of the
Company.
5. Professional advantage of multiple brands and varieties in kitchen field
In addition to Supor brand, the Company also introduced a lot of high-end brands under SEB, such as LAGOSTINA, KRUPS
and WMF so as to fully cover the high-end brands in kitchen field. The Company’s open fire cookware and small kitchen household
appliances rank the first class nationwide. It also explores new varieties actively such as large kitchen appliance and kitchen utensils.
The Company has formed its special competition advantages over other rivals due to its layout of multiple brands and varieties in
kitchen field.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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SECTION IV BUSINESS OPERATION DISCUSSION AND
ANALYSIS
I. Overview
In 2019, the global economic environment was still complicated and severer. However, the domestic sales and exports of the
Company had been growing steadily due to consumption upgrading in China and continuous transfer of overseas SEB orders. During
reporting period, the Company saw its business income reaching RMB 19,853,477,882.97, with a YoY growth of 11.22%, and total
profits reaching RMB 2,273,457,833.79, increasing by 14.73% on a YoY basis. The earnings per share were RMB 2.347 with a YoY
growth of 14.99%. In particular, annual main business income of CW was RMB 6,139,116,531.65, with a 5.49% YoY growth; annual
main business income of electric appliance was RMB 13,524,375,233.08, increasing by 13.98% on a YoY basis. In the whole year,
the Company realized main business income of RMB 14,571,549,991.86 in domestic sales, with a 12.44% YoY growth, and
harvested RMB 5,109,929,961.99 in export business, a 7.75% YoY growth.
1. Domestic sales in the reporting period
(1) Product strategy
During the reporting period, Supor kept making ingenuous innovations with product innovation as its core and based on the
exploration of consumer needs using Internet and big data, continuously introducing innovative, smart and ingenious products with
healthy and nutritious cooking functions; kept enriching and expanding product categories based on traditional Chinese cooking and
eating habits to meet young consumers’ needs.
In terms of CW, according to data regarding cookware market share of 30 Chinese big cities as monitored by GFK, the market
shares of Supor’s seven categories of products in the whole year of 2019 reached 47.8% and still took the leading status in the market.
In terms of new product development, the Company kept expediting the development and launch of new products and the increase of
their market shares: firstly, Supor launched Thermal-Spot Titanium Pro Fumeless Wok, and the X-Crystal stainless wok in 2019,
driving the sales increase of medium-to-high-end frying pans; launched the Modern-times series and Woodson series of Northern
Europe styles for young consumers; and also developed the new Little-meow series baby food pots, which are dedicated and
professional pots for mothers. Secondly, Supor realized dual growth of offline retail and online E-commerce channels in new
categories of kitchen utensils through continuous innovation and upgrading and brand promotion for water cup category.
In terms of SDA, Supor launched new products constantly and took the lead in industrial development. It put multiple
innovative products into market, such as “low-GI rice cooker”, “double-valve pressure cooker”, “detachable high speed blender”,
“elevation-type steam frying machine”, and “COCO-IH multi-purpose cooking pot”, all of which were popular in market. Meanwhile,
Supor enriched and expanded product categories and developed new products such as electric oven, electric lunch box, mother and
baby series and portable rechargeable juice machine so as to drive new product category growth point. As shown by monitoring data
of CMM, a market survey company, Supor had accumulated offline market shares of nine categories (electric rice cooker, electric
pressure cooker, electric kettle, soymilk maker, juice extractor, blender, electric baking pan and electric slow cooker) reaching 30.1%,
ranking the second in the industry. Supor developed its household appliance business continuously and steadily. In 2019, the
Company expanded product lines of garment steamer, dust collector and air purifier constantly. According to monitoring data of
market survey company CMM, Supor’s offline market share of garment steamer category reached 30.9% in 2019, taking the first
place in the industry.
(2) Channel strategy
During the reporting period, Supor focused on balanced development of online and offline retail modes based on the Internet
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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development trend, and still insists on the operating strategy of winning consumers’ trust with high-quality product and dealers’ and
retailers’ support with strong new product development ability and considerate service.
In terms of expansion of the third-tier and fourth-tier markets, Supor continued implementing and further deepening
development strategy of third and fourth markets. With respect to personnel allocation, product R&D, market resources and channel
customer support, Supor improved outlet coverage rate and density and sales output of single store.
In e-commerce channel construction, Supor still strengthened the construction of e-commerce channel, and launched social
e-commerce business by opening live streaming. The sales volume of e-commerce channel in its overall sales volume kept increasing
constantly. In T-mall’s November 11 Promotion Activity, the sales volumes of Supor’s several single products from different
categories ranked the first. According to market shares data monitored by AVC, Supor’s total market shares of nine major categories
of kitchen SDA (small domestic appliances) stood firmly in the second place in 2019.
(3) Brand building
During the reporting period, the Company witnessed the constant improvement of brand popularity and preference by
maintaining the brand value of “quality” and “innovative” and advancing brand building continuously. In 2019, the Company
employed Zhang Junning as a brand spokesman to improve cognition of potential categories (e.g. cup, H&PC appliance and large
kitchen appliance) dramatically. In addition, the Company realized operating management of the brand’s own users by setting up the
Supor Membership Center platform.
According to 2019 research report of Nelson, the Company’s unaided brand awareness in both main brand in small kitchen
electrical appliances and naked flame cooker ranked the first in the industry. The unaided awareness of SDA was still leading in the
industry after occupying the first place for the first time in 2016. Meanwhile, Supor had been listed to BrandZ’s Top 100 Most
Valuable Chinese Brands for 7 years, with growth rate of brand value reaching 40%.
2. Export sales
Though trade frequent friction in international market during reporting period, the Company’s main business income of export
sales showed a 7.75% YoY growth as a whole, which was attributed to the continuous transfer of SEB Group’s orders.
3. Progress of SEB Integration Project
In reporting period, SEB integration project ran smoothly and synergistic effect was further intensified. Both parties’ integration
in R&D, design and manufacturing was further deepened and the Company’s overall competitiveness was further improved.
II. Main Business Analysis
1. Overview
In reporting period, the Company harvested main business income of RMB 19,681,479,953.85, with a YoY increase of RMB
1,979,102,089.54 and increasing range of 11.18%, which was mainly attributed to its business increase of domestic sales and export
sales. The Company’s main operating costs were RMB 13,519,174,731.86, increased by RMB 1,318,135,149.82 above that of the
corresponding period of last year, with an increase of 10.80%. The gross profit margin of main business was 31.31% with increase of
0.23% compared with the same period of the last year, which was mainly due to continuous optimization of the Company’s product
structure.
2. Income and Costs
(1) Contents of total sale
Unit: Yuan
2019 2018 Increase / decrease
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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Amount Percentage to total
operating income Amount
Percentage to total
operating income
YoY (%)
Total operating
income 19,853,477,882.97 100% 17,851,264,801.72 100% 11.22%
By Industry
Cookware 6,139,116,531.65 30.92% 5,819,354,838.15 32.60% 5.49%
Electrical appliances 13,524,375,233.08 68.12% 11,865,914,456.06 66.47% 13.98%
Plastic & rubber 17,988,189.12 0.09% 17,108,570.10 0.10% 5.14%
Others 171,997,929.12 0.87% 148,886,937.41 0.83% 15.52%
By Products
Electric pots 4,859,761,871.46 24.48% 4,241,166,335.58 23.76% 14.59%
Others 14,993,716,011.51 75.52% 13,610,098,466.14 76.24% 10.17%
By Areas
Domestic sales 14,743,547,920.98 74.26% 13,108,849,974.15 73.43% 12.47%
Export sales 5,109,929,961.99 25.74% 4,742,414,827.57 26.57% 7.75%
1) If income is calculated by industries, income of “cookware, electrical appliances and plastic & rubber” is main business income.
Income in “others” column is other business income;
2) Among the “Domestic sales” of the income by areas: the main business income in 2019 was RMB 14,571,549,991.86, and the
income of other business was RMB 171,997,929.12; in 2018, the main business income was RMB 12,959,963,036.74 and the other
business income was RMB 148,886,937.41.
3) If income is calculated by products, income in “others” column includes other business income; of which, income in 2019 is RMB
171,997,929.12 and income in 2018 is RMB 148,886,937.41.
(2) The Company’s industry, products or area with occupying more than 10% of total sales or operating
profits
√ Applicable □ Not-applicable
Unit: Yuan
Total sales Operating cost Gross
Margin
Increase /
decrease YoY
(%) for total
operating
income
Increase /
decrease YoY
(%) for
operating cost
Increase /
decrease YoY
(%) for gross
profit
By Industry
Cookware 6,139,116,531.65 3,993,149,204.58 34.96% 5.49% 5.81% -0.19%
Electrical
appliance 13,524,375,233.08 9,512,065,792.45 29.67% 13.98% 13.03% 0.59%
By Products
Annual Report 2019 of Zhejiang Supor Co., Ltd.
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Electric pots 4,859,761,871.46 3,445,666,382.43 29.10% 14.59% 14.48% 0.07%
By Areas
Domestic sales 14,743,547,920.98 9,520,184,777.44 35.43% 12.47% 12.40% 0.04%
Export sales 5,109,929,961.99 4,148,043,618.52 18.82% 7.75% 7.12% 0.48%
If the statistical caliber of the Company’s operation business data is adjusted in the reporting period, the main operation business data
for the latest year after the statistical caliber is adjusted.
□ Applicable √ Not-applicable
(3) Practical sales income greater than labor income
√ Yes □ No
Industrial
classification Item Unit 2019 2018
Increase / decrease
YoY (%)
Cookware
Sales volume pcs/set 66,285,102 62,368,608 6.28%
Output pcs/set 44,921,055 44,156,093 1.73%
Stock pcs/set 10,207,960 12,707,855 -19.67%
Electrical appliances
Sales volume pcs/set 85,469,581 75,409,948 13.34%
Output pcs/set 58,826,004 57,858,832 1.67%
Stock pcs/set 9,652,867 9,293,815 3.86%
Total
Sales volume pcs/set 151,754,683 137,778,556 10.14%
Output pcs/set 103,747,059 102,014,925 1.70%
Stock pcs/set 19,860,827 22,001,670 -9.73%
Descriptions of cause with above 30% change of relevant data on a YoY basis
□ Applicable √ Not-applicable
(4) Performance of important sales contracts signed till this reporting period
□ Applicable √ Not-applicable
(5) Structure of operating costs
Category of industry and product
Unit: Yuan
Industrial
classification Item
2019 2018 Increase /
decrease YoY
(%) Amount
Proportion of
operating cost Amount
Proportion of
operating cost
Cookware Operating cost 3,993,149,204.58 29.21% 3,774,064,262.06 30.58% 5.81%
Annual Report 2019 of Zhejiang Supor Co., Ltd.
17
Electrical
appliance Operating cost 9,512,065,792.45 69.59% 8,415,184,860.38 68.18% 13.03%
Plastic & rubber Operating cost 13,959,734.83 0.10% 11,790,459.60 0.10% 18.40%
Others Operating cost 149,053,664.10 1.09% 140,899,383.89 1.14% 5.79%
Subtotal Operating cost 13,668,228,395.96 100.00% 12,341,938,965.93 100.00% 10.75%
Unit: Yuan
Category of
product Item
2019 2018 Increase /
decrease YoY
(%) Amount
Proportion of
operating cost Amount
Proportion of
operating cost
Electric pots Operating cost 3,445,666,382.43 25.21% 3,009,938,151.33 24.39% 14.48%
Others Operating cost 10,222,562,013.53 74.79% 9,332,000,814.60 75.61% 9.54%
Subtotal Operating cost 13,668,228,395.96 100.00% 12,341,938,965.93 100.00% 10.75%
Notes
1) The cost of “cookware, electrical appliance and rubber and plastic products” calculated by industries belongs to the Company’s
main business cost while the cost of “others” belongs to the Company’s other business cost;
2) The cost of “others” calculated by products includes other business cost, with RMB 149,053,664.10 in 2019and 140,899,383.89 in
2018 respectively.
(6) Change of combination scope during reporting period
√ Yes □ No
For details, please see “VIII. Change on consolidation scope” of SECTION XII FINANCIAL STATEMENT.
(7) Important change or adjustment for the Company’s businesses, products or services in the reporting
period
□ Applicable √ Not-applicable
(8) Main sales clients and suppliers
Main sales clients
Total amount of sales to top 5 customers (RMB) 6,638,615,002.52
Proportion in the year’s total sales (%) 33.44%
Proportion for associated party’s sales amount of sales amount
for the top five clients in annual total sales amount 23.04%
Information of the Company’s five major customers
SN Customer Sales amount (RMB) Proportion in the total sales amount of the
year (%)
1 SEB ASIA LTD. 4,574,513,658.82 23.04%
Annual Report 2019 of Zhejiang Supor Co., Ltd.
18
2 Customer 2 769,120,046.08 3.87%
3 Customer 3 496,219,705.35 2.50%
4 Customer 4 439,280,161.75 2.21%
5 Customer 5 359,481,430.52 1.81%
Total -- 6,638,615,002.52 33.44%
Instruction for main clients’ other cases
□ Applicable √ Not-applicable
The Company’s main supplier
Total purchasing value from top 5 suppliers (RMB) 1,321,702,334.26
Proportion in the year’s total purchasing value 10.39%
Proportion for associated party’s purchase amount of purchase
amount for the top five suppliers in annual total purchase
amount
2.75%
The top 5 suppliers’ information
SN Supplier Purchasing value (RMB) Proportion in the total purchasing amount
of the year
1 Wuhan Anzai Cookware Co., Ltd. 349,766,797.87 2.75%
2 Supplier 2 324,274,590.54 2.55%
3 Supplier 3 236,071,728.38 1.86%
4 Supplier 4 208,126,718.96 1.64%
5 Supplier 5 203,462,498.51 1.60%
Total -- 1,321,702,334.26 10.39%
Instruction for main suppliers’ other cases
□ Applicable √ Not-applicable
3. Expenses
Unit: Yuan
2019 2018
Increase /
decrease YoY
(%)
Cause of change
Selling expenses 3,206,043,042.00 2,813,288,857.74 13.96%
Administrative
expenses 345,732,916.45 344,810,539.64 0.27%
Financial expenses -43,325,692.27 -5,544,796.46 -681.38% Mainly due to the increase in interest income
of bank deposits during the period.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
19
Research and
development
expenses
452,560,910.68 402,632,732.79 12.40%
4. R&D investment
√ Applicable □ Not-applicable
Oriented by consumers’ demand, the Company engages in R & D of the differential products that meet kitchen demand and
local eating and life habits. The Company lays emphasis on R & D investment, boosts technical innovation actively, further explores
product category and adds product additional value; respects customer’s experience and focuses on all details of consumer use in
order to realize safe, environmentally friendly, convenient and fashionable products. R & D expenditure in this year accounts for
6.61% and 2.28% of net assets and business income audited in the recent period.
R&D investment of the Company
2019 2018 Change proportion
Qty. of R & D persons (person) 1,414 1,332 6.16%
Proportion of R & D personnel 11.50% 10.41% 1.09%
Amount of R&D input (RMB) 452,560,910.68 402,632,732.79 12.40%
Proportion of R&D input in total sale 2.28% 2.26% 0.02%
Capitalization amount of R&D input (RMB) 0.00 0.00 0.00%
Proportion of Capitalization R&D input in
R&D input 0.00% 0.00% 0.00%
Reason for large change for proportion of R&D input in total sale compared with that of last year
□ Applicable √ Not-applicable
Reason and rational introduction for large capitalization change of R&D input
□ Applicable √ Not-applicable
5. Cash flow
Unit: Yuan
Item 2019 2018 Increase / decrease
YoY (%)
Sub-total of cash inflows from operating activities 21,548,615,719.66 19,088,688,883.76 12.89%
Subtotal of cash outflows from operating activities 19,815,674,742.54 17,075,030,138.92 16.05%
Net cash flows from operating activities 1,732,940,977.12 2,013,658,744.84 -13.94%
Subtotal of cash inflows from investing activities 2,398,037,111.20 2,319,271,825.96 3.40%
Sub-total of cash outflow from investing activities 3,264,911,537.10 2,823,333,289.54 15.64%
Net cash flow from investing activities 866,874,425.90 -504,061,463.58 71.98%
Sub-total of cash inflows from financing activities 12,747,688.67 100.00%
Annual Report 2019 of Zhejiang Supor Co., Ltd.
20
Subtotal of cash outflows from financing activities 1,050,955,948.54 968,565,192.80 8.51%
Net cash flows from financing activities -1,038,208,259.87 -968,565,192.80 -7.19%
Net increase in cash and cash equivalents -166,629,917.67 547,182,683.62 -130.45%
Instruction for main influence factors of relevant data with YoY (%) changed seriously
√ Applicable □ Not-applicable
Change reasons:
1. The net cash flows from investing activities decreased by 71.98% compared with that of the same period last year, which was
mainly attributable to increase of cash outflow from investing activities and time deposits.
2. Net increase in cash and cash equivalents decreased by 130.45% compared with that of the same period last year, which was
attributable to the decrease in net amount of cash flows from investing activities in the current period.
Reason for great change between net cash flow caused by operation activities and annual net profits
□ Applicable √ Not-applicable
III. Analysis on non-primary business
□ Applicable √ Not-applicable
IV. Analysis on Assets and Liabilities
1. Significant changes in assets
Unit: Yuan
2019 year end 2019 year beginning Increase/d
ecrease in
proportio
n
Cause of change Amount
Percentage
to total
assets
Amount
Percentage
to total
assets
Cash and bank
balances 1,308,132,657.16 11.04% 1,416,762,574.83 13.32% -2.28%
No significant change in the reporting
period.
Accounts
receivable 1,796,909,432.40 15.17% 1,727,619,712.96 16.25% -1.08%
No significant change in the reporting
period.
Inventories 2,247,612,900.00 18.97% 2,361,653,181.94 22.21% -3.24% No significant change in the reporting
period.
Long-term equity
investment 61,917,730.62 0.52% 60,646,438.46 0.57% -0.05%
No significant change in the reporting
period.
Fixed assets 908,982,690.72 7.67% 868,297,081.06 8.17% -0.50% No significant change in the reporting
period.
Construction in
progress 215,167,399.12 1.82% 40,562,136.79 0.38% 1.44%
Mainly due to the increase in
construction-in-progress projects of the
Company and its subsidiaries.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
21
Transactional
financial assets 1,264,563,042.79 10.67% 10.67%
Mainly due to the inclusion of the
amount in “financial assets measured at
fair value through current profit or
loss” in the corresponding period and
in the current item in the current period
subject to the adoption of the new
financial instruments standards during
the reporting period.
Financial assets
held at fair value
through profit or
loss
435,241,736.40 4.09% -4.09%
Mainly due to the inclusion of the
amount in the current item in the
corresponding period and in the
“transactional financial assets” in the
current period subject to the adoption
of the new financial instruments
standards during the reporting period.
Notes receivable 701,179,379.24 6.59% -6.59%
Mainly due to the inclusion of the
amount in the current item in the
corresponding period and in the
“receivables financing” in the current
period subject to the adoption of the
new financial instruments standards
during the reporting period.
Receivables
Financing 1,186,980,101.71 10.02% 10.02%
Mainly due to the inclusion of the
amount in the “notes receivable” in the
corresponding period and in the the
current item in the current period
subject to the adoption of the new
financial instruments standards during
the reporting period.
Other receivables 14,230,736.62 0.12% 143,352,998.18 1.35% -1.23 %
Mainly caused by the receipt in current
period of the insurance proceed
receivable and export VAT refund
receivable.
Deferred income
tax assets 364,211,946.59 3.07% 269,780,914.15 2.54% 0.53%
Attributable to increase in temporary
difference caused by the fees payables
of subsidiaries.
2. Assets and liabilities measured at the fair value
√ Applicable □ Not-applicable
Unit: Yuan
Annual Report 2019 of Zhejiang Supor Co., Ltd.
22
Item Opening
balance
Profit and
loss from fair
value changes
in the current
period
Accumulated
fair value
changes
included in
equity
Impairment
loss of the
current period
Amount of
purchasing of
the current
period
Amount of
selling of the
current period
Other
changes
Ending
balance
Financial
assets
1.
Transactional
financial
assets
(excluding
derivative
financial
assets)
435,241,736.4
0 4,563,042.79
1,390,000,000
.00
565,241,736.4
0
1,264,563,0
42.79
2.Receivables
Financing
1,186,980,1
01.71
1,186,980,1
01.71
Total 435,241,736.4
0 4,563,042.79
1,390,000,000
.00
565,241,736.4
0
1,186,980,1
01.71
2,451,543,1
44.5
Financial
debts 0.00 0.00 0.00
Content of other changes
As the demand of daily fund management, the Group will discount or transfer an endorsed bill, the management mode of related
bank bill including not only collect contract cash flow but sales as the target, so reclass the bank bill as financial assets measured at
FV and its change in OCI.
Are there any major changes about the valuation attribute of Company’s main assets in the reporting period?
□ Yes √ No
3. Restrictions of assets and rights by the end of reporting period
Please see the detail in section XII “Financial report” VII “Notes to items of consolidated financial statement” 47、Assets with title
or use right restrictions.
V. Analysis on Investment
1. General conditions
√ Applicable □ Not-applicable
Investment in the reporting period (in
RMB Yuan)
Investment over the same year last year (In
RMB Yuan) Fluctuation
0.00 274,000,000.00 -100.00%
Annual Report 2019 of Zhejiang Supor Co., Ltd.
23
2. Significant equity investment to be acquired in the reporting period
□ Applicable √ Not-applicable
3. Significant non-equity investment to be handled in the reporting period
□ Applicable √ Not-applicable
4. Financial assets measured at the fair value
√ Applicable □ Not-applicable
Unit: Yuan
Catego
ry of
assets
Initial
investment
costs
Profit and loss
from fair
value changes
in the current
period
Accumulate
d fair value
changes
included in
equity
Purchase amount
during the
reporting period
Sales amount
during the
reporting period
Accumulated
investment
income
Closing
amount
Capital
source
Others 60,000,000.00 4,563,042.79 0.00 1,390,000,000.00 560,000,000.00 5,241,736.40 1,264,563,042
.79
Self-own
ed capital
Total 60,000,000.00 4,563,042.79 0.00 1,390,000,000.00 560,000,000.00 5,241,736.40 1,264,563,042
.79 --
5. Application of capital raised
□ Applicable √ Not-applicable
No capital raised was used in reporting period
VI. Sales for Major Assets and Equity
1. Sales for major assets
□ Applicable √ Not-applicable
The Company did not sell major assets till the end of this period.
2. Sales for major equities
□ Applicable √ Not-applicable
VII. Analysis for Main Holding Companies and Joint Stock Companies
√ Applicable □ Not-applicable
Status of main subsidiaries and joint stock companies with influence on the Company’s net profit exceeding 10%
Unit: Yuan
Annual Report 2019 of Zhejiang Supor Co., Ltd.
24
Company name Company
type
Main
business
Registered
capital Total assets Net assets Total sales
Operating
profit Net profit
Wuhan Supor
Cookware Co.,
Ltd.
Subsidiary Cookware 91.16 million
Yuan
1,762,067,650
.40
1,087,996,715
.00
3,953,304,2
74.67
278,866,460
.64
207,704,884.
66
Zhejiang Supor
Electrical
Appliance
Manufacturing
Co., Ltd
Subsidiary Electrical
appliances
133.6971
million Yuan
1,483,981,271
.27
893,366,365.4
9
4,122,379,8
58.54
249,631,191
.34
172,638,788.
60
Zhejiang
Shaoxing Supor
Domestic
Electrical
Appliances Co.,
Ltd.
Subsidiary
Small
appliance,
kitchen
appliance
610 million
Yuan
3,771,665,428
.34
2,655,431,426
.46
8,058,606,5
21.91
1,295,371,2
46.73
1,142,537,95
7.02
Zhejiang
Shaoxing Supor
Housewares
Co., Ltd.
Subsidiary Electrical
appliances
50 million
Yuan
1,705,044,094
.70
-39,931,574.6
1
4,408,929,4
71.80
-119,124,73
7.19
-89,681,547.0
2
Acquiring/disposing subsidiary during reporting period
√ Applicable □ Not-applicable
Company name Company obtaining and disposal mode in
the reporting period
Influence on overall production, operation
and performance
Zhejiang Supor Large Kitchen Appliance
Co., Ltd. Newly-establishment
Under capital construction without
production and operation activities during
the reporting period.
Zhejiang Supor Water Heater Co., Ltd. Newly-establishment
Only industry and commerce registration
formalities were completed without
production and operation activities during
the reporting period.
XIII. Structural Subject under the Company’s Control
□ Applicable √ Not-applicable
IX. Outlook of the Company
1. Future development strategy and operation plan of the Company
Though macro-economy and industrial growth are influenced to a certain extent by the epidemic in 2020, it is still promising in
the long run, the strong magnetic attractive force of huge market scale in domestic demands in China still exist and middle class and
young consumers will continue to drive the consumption growth.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
25
In 2020, the Company will implement the established strategic route firmly, advance product innovation and fine works
strategies constantly according to consumers’ demands and keep improving the Company’s development strategy of multiple brands
and categories; seize the opportunity of consumption upgrading, cultivate new business and new category and promote development
of sub-divisional category.
In terms of channel building, the Company will continue improving the service level and efficiency in the major retail systems
in China and in international shopping market to strive to become the strategic supplier of more key retail channels, continue to
develop the tier-3 and 4 markets, improve coverage rate and density of outlets, enlarge single store output, greatly develop
E-commerce, continuously strengthen cooperation efficiency and resource input with major online retailers, innovate promotion
patterns and continuously improve online sales scale and market share. Besides implementing the established channel strategy firmly,
it will embrace channel innovation actively and develop innovative marketing model, to conform to the further integration of online
and offline channels.
With respect to brand building, the Company will advance the construction of younger brand image, strengthen Supor’s brand
building in such emerging businesses as kitchen utensils, H&PC appliances and large kitchen appliances and understand users by
means of the more accurate and sub-divisional digital media.
In terms of export business, the Company, regardless of uncertain international situation aggravated by the epidemic, will keep
advancing the cooperation with SEB in links such as R&D, design and manufacturing, enlarge production scale, acquire scale-based
competitive advantage and improve core competence in virtue of internal order transfer advantage of SEB.
With regard to industrial aspect, the Company will further conduct cost optimization and lean economy program, actively
respond to adverse effect caused by price rise of raw materials, strengthen basic management over research and development,
promote market’s rapid response capacity of industrial system, and continuously improve cost competitiveness. On the basis of
emphasizing work safety, Supor will ensure the implementation of prevention and control measures and the safety and health of
employees during the outbreak of Coronavirus disease (COVID-19). Meanwhile, new bases of large kitchen appliance and high-end
business in Shaoxing and Yuhuan will be officially put into use this year, to conform to rapid development of emerging business.
In terms of talent training, the Company will strengthen talent echelon construction and improve long-term incentive mechanism
continuously; improve management level of basic and medium management personnel, enhance subjective initiative of employees
and build an active and efficient working atmosphere for employees.
2. Possible risks and countermeasures
1) Risk from macroeconomic fluctuation
With the global spreading of the COVID-19, many challenges against global economic recovery arise. If macro economy
fluctuates or national macro-control policy changes, especially if national economy and household disposable income slows down in
growing, people’s willingness and capacity to consume will be directly affected. Consequently, the CW and SDA industry that Supor
is in will slow down in growing, and the sales growth of relevant products may thus be affected.
For the possible macroeconomic fluctuation risks, Supor is actively developing new categories and cultivating new growth point.
Meanwhile Supor is actively transferring SEB orders and ensuring the balanced development of domestic and overseas sales.
2) Risk from production element price change
The main raw materials used by Supor for producing CW and SDA are the aluminum, copper, stainless steel and plastics. If the
raw material price grows highly, the production cost will rise rapidly, so it will affect the business performance of the Company.
Meanwhile the CW and SDA business belong to the labor-intensive industry; the rapid growth of labor cost in a short time will cause
certain influence to the business performance of the Company.
In order to cope with the risks caused by the fluctuation of production element price, Supor is actively improving the internal
labor productivity and pushing to implement the lean projects to reduce the negative impacts caused by the rise in price of raw
materials on the production costs. Besides the Company is actively boosting the automation of production line, improving the per
capita labor output, and reduce the impact caused by rise in labor cost.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
26
3) Risk of intensifying market competitiveness
As the operating cost of enterprise rises, industry brand concentration will be further improved, and there is the risk of
intensifying market competition in the field of cookware and small domestic appliances (SDA). In order to seize market share,
high-end brand will continue to sink channel and regulate product and price strategy, and some high-end brand will enter shopping
market channels by the way of point redemption to participate in high-end market competition, which will further intensify the
competitiveness of industry.
The Company will keep on insisting in the strategy to take product innovation as the core, and keep on improving innovation
ability to create more products with high additional value. The Company will give full play to the competitive edge of multiple
brands and multiple product categories of Supor, and continue to improve market shares and profitability of Supor.
4) Overseas market expansion risks
Currently, Supor has the production base in Vietnam, and is continuously expand the market in Southeast Asia. The overseas
market expansion may change significantly due to the unstable political and economic situation, legal system and regulatory system
of the local area. Besides, the huge rise in production cost will bring unanticipated risks.
The Company will keep close eyes on the political and economic situation in Southeast Asia, especially the Vietnam, and will
make every endeavor to make a timely advanced adjustment and formulate the corresponding countermeasures.
5) Product export and exchange loss caused by exchange rate fluctuation
The foreign trade business is about 20% of the overall business of the Company. The fluctuation in foreign exchange is possible
to bring benefits, or the adverse influence, so it will cause the exchange loss to the Company in the end.
For exchange gain or loss risk, the Company will actively push the Renminbi settlement of export business to SEB, reduce
exchange risk, and meanwhile reduce exchange loss risk by forward settlement of exchange.
X. Reception of Investigation & Research, Communication and Interview Activities in the
Reporting Period
1. Registration form for reception of investigation& research, communication and interview activities in the
reporting period
√ Applicable □ Not-applicable
Reception time Reception manner Type of reception object Index for basic condition of investigation
and survey
September 3, 2019 On-site investigation and
research Institution
See Record Form for Investor Relation
Activity on September 4, 2019 disclosed by
the Company in http://www.cninfo.com.cn
on September 4, 2019 for details.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
27
SECTION V SIGNIFICANT EVENTS
I. Profit Distribution of the Company’s Common Shares and Turning Add Equity Capital
Accumulation Fund
According to profit distribution policy for common shares in the reporting period, especially establishment, execution or adjustment
for cash dividend policy
□ Applicable √ Not-applicable
The profit distribution plan for the Company’s common shares (preparedness) and turning add equity capital accumulation fund
(preparedness) for the latest 3 years.
1. Profit distribution plan for 2017
Based on the total capital stock of 820,817,960 shares (total capital stock of 821,287,610 shares at the end of 2017 deducted by
43,650 shares of Restricted Stock will be repurchased and canceled and 426,000 shares of Reserved Restricted Stock without the
profit distribution rights), the Company will distribute all shareholders at the price of RMB 7.20 per 10 shares (tax-inclusive) and the
total cash dividends is RMB 590,988,931.20. The plan has been implemented.
2. Semiannual profit distribution plan for 2018
Based on the 820,817,960 shares at the end of June in 2018 (total capital stock of 821,243,960 shares on June 30, 2018 deducted
by 426,000 shares of Reserved Restricted Stock without the profit distribution rights), the Company distributes cash dividend of
RMB 4.60 per 10 shares (tax-inclusive) to all shareholders and the total cash dividends is RMB 377,576,261.60. The plan has been
implemented.
3. Profit distribution plan for 2018
Based on the total capital stock of 821,243,960 shares at the end of 2018, the Company distributes cash dividend of RMB 10.20
(tax-inclusive) per 10 shares to all shareholders, with total cash dividends distributed of RMB 837,668,839.20. The plan has been
implemented.
4. Semiannual profit distribution plan for 2019
Based on the 821,119,910 shares at the end of June in 2019 (total capital stock of 821,243,960 shares on June 30, 2018 deducted
by 124,050 shares of Reserved Restricted Stock repurchased and canceled), the Company distributes cash dividend of RMB 2.58 per
10 shares (tax-inclusive) to all shareholders and the total cash dividends is RMB 211,848,936.78. The plan has been implemented.
5. Profit distribution preplan for 2019
Based on the 821,099,910 shares at the end of 2019 (total capital stock of 821,119,910 shares at the end of 2019 deducted by
20,000 shares in the Company’s special securities account for repurchase), the Company distributes cash dividend of RMB13.30 per
10 shares (tax-inclusive) to all shareholders and the total cash dividends is RMB 1,092,062,880.30 .No bonus share will be
distributed or conversion from capital reserves to share capital is made this year. This proposal shall be submitted to the Annual
General Meeting of Shareholders for 2019 Fiscal Year for approval after adopted by the Board of Directors.
During the period from the disclosure of this profit distribution preplan to the actual implementation date, if the Company’s
capital stock changes due to conversion of convertible bonds into stocks, share repurchases, equity incentive exercise, and
refinancing and new share listing, it will be executed based on the changed capital stock, and the above distribution ratio remains
unchanged.
Distribution of cash dividends of ordinary shares over the past 3 years (including this reporting period)
Unit: Yuan
Annual Report 2019 of Zhejiang Supor Co., Ltd.
28
Year of
dividends
Amount of cash
dividends
(tax-inclusive)
Net profit in the
consolidated
statement
attributable to the
common
shareholders of the
listed company
Proportion of
cash dividends
in net profit in
the
consolidated
statement
attributable to
the common
shareholders of
the listed
company
Amount of
cash dividends
by other means
(e.g. shares
repurchase)
Proportion of
amount of cash
dividends by
other means in
net profit in the
consolidated
statement
attributable to
the common
shareholders of
the listed
company
Total cash
dividends
(including cash
dividends by
other means)
Proportion of
total cash
dividends in
net profit in the
consolidated
statement
attributable to
the common
shareholders of
the listed
company
2019 1,303,911,817.0
8 1,919,914,191.25 67.92% 1,438,172.56 0.07%
1,305,349,989.
64 67.99%
2018 1,215,245,100.8
0 1,669,873,440.00 72.77% 0.00 0.00%
1,215,245,100.
80 72.77%
2017 590,988,931.20 1,326,195,778.24 44.56% 0.00 0.00% 590,988,931.20 44.56%
Note: Total dividends (tax-inclusive) RMB 1,303,911,817.08 in 2019 including the RMB 211,848,936.78 cash dividends distributed
under the 2019 semiannual profit distribution plan, and RMB 1,092,062,880.30 under the 2019 annual profit distribution preplan.
Information on profit-making in the reporting period and positive undistributed profit of parent company for common shareholders
but without cash dividends plan for common shares
□ Applicable √ Not-applicable
II. Profit Distribution and Conversion of Capital Reserve to Capital During the Reporting
Period
√ Applicable □ Not-applicable
Number of bonus stock per 10 shares (shares) 0
Amount of dividend (RMB) per 10 shares (tax-inclusive) 13.30
Number of Conversion per 10 shares (shares) 0
Equity base in distribution plan (shares) 821,099,910
Amount of cash dividends (RMB, tax-inclusive) 1,092,062,880.30
Amount of cash dividends realized in other modes (such as repurchased shares) (RMB) 1,438,172.56
Total cash dividends (including other modes) (RMB) 1,093,501,052.86
Distributable profits (RMB) 1,100,501,967.73
Proportion of total cash dividends (including other modes) in total distribution of profits 100.00%
Cash Dividends of This Time
Others
Detailed information on profit distribution and conversion of capital reserve to capital pre-proposal
Annual Report 2019 of Zhejiang Supor Co., Ltd.
29
In accordance with the standard unqualified audit report provided by Union Power Certified Public Accountants (Special
General Partnership), the parent company Zhejiang Supor Co., Ltd. realized the net profit of RMB 1,099,724,133.81 in 2019, and
could distribute profits of RMB 1,100,501,967.72 to shareholders at the end of the year based on relevant provisions of Company
Law and the Articles of Association, after allocating RMB 0 as legal surplus reserve (note: the amount is 50% of capital stock), plus
the undistributed profit of RMB 1,050,295,609.89 at the beginning of this reporting period, deducting the cash dividends for 2018
of RMB 837,668,839.20 distributed on May 24, 2019 and semiannual cash dividends for 2019 of RMB 211,848,936.78 distributed
on October 25, 2019.
The 2019 annual profit distribution preplan: based on the 821,099,910 shares at the end of 2019 (total capital stock of
821,119,910 shares at the end of 2019 deducted by 20,000 shares in the Company’s special securities account for repurchase), the
Company distributes cash dividend of RMB 13.30 per 10 shares (tax-inclusive) to all shareholders and the total cash dividends is
RMB 1,092,062,880.30 No bonus share will be distributed or conversion from capital reserves to share capital is made this year.
During the period from the disclosure of this profit distribution preplan to the actual implementation date, if the Company’s
capital stock changes due to conversion of convertible bonds into stocks, share repurchases, equity incentive exercise, and
refinancing and new share listing, it will be executed based on the changed capital stock, and the above distribution ratio remains
unchanged.
III. Fulfillment of Commitments
1. Commitments that were fulfilled in the reporting period and had not been fulfilled till the end of
reporting period by actual controller, shareholder, associated party, purchaser and other commitment
parties of the Company
√ Applicable □ Not-applicable
Cause of commitment
Commitm
ent made
by
Type of
commitme
nt
Content of commitment Time of
commitment
Term of
commitment Fulfillment
Commitment on non-tradable
shares reform
Commitments in acquisition
report or equity change report
SEB
Internation
ale
Other
commitme
nts
SEB Internationale commits
in Acquisition Report signed
on October 19, 2011: retain
25% of Supor’s existing or
any future capital stock in
ten years.
October 19,
2011
December 22,
2011 -
December 21,
2021
Performed
strictly
Commitments made during
assets reorganization
Commitments made during
initial public offering and
refinancing
Share incentive commitments
Annual Report 2019 of Zhejiang Supor Co., Ltd.
30
Other commitments to medium
and small shareholders of the
Company
SEB
Internation
ale
Commitm
ents for
share
restriction
SEB Internationale finished
receiving 50,000,000 Supor
shares held by Supor Group
Co., Ltd. in form of
agreement transfer on June
23, 2016 and committed not
to transfer or entrust others
to manage 50,000,000
Supor shares held or ask
Supor to repurchase such
shares within thirty six
months upon acquiring the
strategic investment
50,000,000 Supor shares.
June 23, 2016
From June 23,
2016 to June
22, 2019
Fulfilled
Has the commitments been
fulfilled timely? Yes
Reason of un-fulfillment and
next plans (if any) if the
commitments cannot be fulfilled
timely.
Not-applicable
2. Where assets or projects of the Company are expected to make profit, and the expected profiting period
is in the reporting period, the Company hereby explains profiting expectation and reasons
□ Applicable √ Not-applicable
IV. Occupied Non-business Capital of Listed Company for Shareholders and Affiliated
Company
□ Applicable √ Not-applicable
There was no non-operating occupation of capital of listed companies by controlling shareholders and their affiliates of the Company
during the reporting period.
V. Explanation of the Board of Directors, the Board of Supervisors and Independent
Directors (if applicable) of the “Non-standard Audit Report”
□ Applicable √ Not-applicable
VI. Change of Accounting Policy, Accounting Estimate and Calculation Method Compared
with Last Year’s Financial Statement
√ Applicable □ Not-applicable
1. Change of accounting policies caused by the adoption of the new financial instruments standards
The Ministry of Finance promulgated the Accounting Standards for Business Enterprises No. 22 - Recognition and
Annual Report 2019 of Zhejiang Supor Co., Ltd.
31
Measurement of Financial Instruments (Revised Version 2017) (C.K. [2017] No. 7), the Accounting Standards for Business
Enterprises No. 23 - Transfer of Financial Assets (Revised Version 2017) (C.K. [2017] No. 8), and the Accounting Standards for
Business Enterprises No. 24 - Hedging Accounting (Revised Version 2017) (C.K. [2017] No. 9) on March 31, 2017 and the
Accounting Standards for Business Enterprises No. 37 - Financial Instruments Presentation (Revised Version 2017) (C.K. [2017] No.
14) on May 2, 2017 (the foregoing standards are collectively referred to as “new financial instruments standards”), requiring that
listed enterprises in China shall implement the new financial instruments standards from January 1, 2019.
The Group began to implement the new financial instruments standards from January 1, 2019.
All identified financial assets under the new financial instruments standards are subsequently measured at amortized cost or fair
value. On the implementation of the new financial instruments standards, the Group evaluated the business model for managing
financial assets based on the actual facts and situation on the day and evaluated the contracted cash flow features of financial assets
based on the facts and situation during the preliminary identification of financial assets, and divided the financial assets into:
financial assets measured by amortized cost, financial assets at fair value through other comprehensive income and, financial assets at
fair value through current profit or loss. For equity equipment investment at fair value through other comprehensive income, at the
time of derecognition of such financial asset, accumulative gains or losses previously included in other comprehensive income should
be transferred from other comprehensive income and included in retained earnings instead, and not included in current profit or loss.
Under the new financial instruments standards, the Group made provision for impairment reserve and identified credit
impairment loss for financial assets measured at amortized cost and financial security contracts based on expected credit losses.
The Group adopted the new financial instruments standards in a retroactive manner and chose not to make a restatement on the
inconsistency between classification and measurement (including decrease in value) in previous financial statements and in financial
statements prepared under the new financial instruments standards. Therefore, with regards to the accumulated amount affected by
the first implementation of the standards, the Group adjusted the amount of retained earnings or other comprehensive income and
other related items in the financial statements at the beginning of 2019, and did not make a restatement in the financial statements of
2018.
For details, please refer to “V. Critical accounting policies and estimates” and “27. Change of important accounting policies and
accounting estimates” of SECTION XII FINANCIAL STATEMENT.
VII. Instruction for Important Financial Errors, Correction and Restatement in Reporting
Period
□ Applicable √ Not-applicable
No necessary restatement on the correction of important financial errors in the reporting period.
VIII. Information on Change of the Scope of Consolidated Statement Compared with the
Previous Year’s Financial Statements
√ Applicable □ Not-applicable
For details, please see “VIII. Change on consolidation scope” of SECTION XII FINANCIAL STATEMENT.
IX. Employment and Disengagement of Certified Public Accountants
Certified public accountants engaged at the moment
Name of domestic certified public accountants: Union Power Certified Public Accountants (Special General
Partnership)
Annual Report 2019 of Zhejiang Supor Co., Ltd.
32
Reward for domestic certified public accountants (RMB 10,000) 160
Service years of audit for the Company 4
Names of CPAs from domestic certified public accountants Li Wei, Li Huihui
Service years of audit of the CPAs Li Wei 4 years、Li Huihui 1 year
Intension of changing certified public accountants
□ Yes √ No
Employment of internal control counting firm, financial consultant or sponsor
□ Applicable √ Not-applicable
X. Suspension of Listing or Delisting after Disclosure of Annual Report
□ Applicable √ Not-applicable
XI. Bankruptcy or Reorganization
□ Applicable √ Not-applicable
There was no bankruptcy, reorganization or related matters in the Company in the reporting period.
XII. Significant Litigations and Arbitrations
□ Applicable √ Not-applicable
There was no significant litigation and arbitration occurred in the reporting period.
XIII. Punishment and Rectification
□ Applicable √ Not-applicable
There was no punishment and rectification in the reporting period.
XIV. Integrity of the Company, its Controlling Shareholders and Actual Controllers
□ Applicable √ Not-applicable
XV. Implementation of Company’s Equity Incentive Plan, Employee Equity Holding Plan or
Other Employee Incentive Measures
√ Applicable □ Not-applicable
1. On March 26, 2019, the 11th Session of the Sixth Board of Directors reviewed and adopted the Proposal on Unlocking of
Restricted Stock within the Second Unlock Period and the Reserved Restricted Stock within the First Unlock Period of 2017
Restricted Stock Incentive Plan, agreeing to unlock the Restricted Stock for 221 qualified Incentive Objects in the second unlock
period as well as unlock Reserved Restricted Stock in the first unlock period. Totally 840,600 shares of restricted stock will be
unlocked, in which the Restricted Stock unlocked during the second unlock period is 756,400 shares and Reserved Restricted Stock
unlocked during the first unlock period is 84,200 shares. The Restricted Stock in the second unlock period was listed on December 30,
2019, and the Reserved Restricted Stock in the first unlock period was listed on November 15, 2019.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
33
For detailed contents, see Announcement of Unlocking of Restricted Stock within the Second Unlock Period and the Reserved
Restricted Stock t of the First Unlock Period of 2017 Restricted Stock Incentive Plan, the Suggestive Announcement on Listing of
Reserved Restricted Stock Unlockable during the First Unlock Period of 2017 Restricted Stock Incentive Plan and the Suggestive
Announcement on Listing of Restricted Stock Unlockable during the Second Unlock Period of 2017 Restricted Stock Incentive Plan
disclosed on Securities Times, China Securities Journal, Securities Daily, and cninfo.com.cn on March 28, 2019, November 12, 2019
and December 25, 2019.
2. On March 26, 2019, the 11th Session of the Sixth Board of Directors reviewed and adopted Proposal on Repurchasing and
Canceling a Part of Restricted Stock. For disqualification of three Incentive Objects due to their resignation, the Company has
decided to repurchase and cancel 84,900 shares of Restricted Stock at the price of 1 yuan per share. On August 29, 2018, the 8th
Session of the Sixth Board of Directors reviewed and adopted Proposal on Repurchasing and Canceling a Part of Restricted Stock.
For disqualification of six Incentive Objects due to their resignation, the Company has decided to repurchase and cancel 39,150
shares of Restricted Stock at the price of 1 yuan per share, totally 124,050 shares of Restricted Stock shall be repurchased and
canceled. The Proposal on Repurchasing and Canceling a Part of Restricted Stock has been adopted by the Annual General Meeting
of Shareholders for 2018 Fiscal Year held on April 19, 2019. The Company has repurchased and canceled 124,050 shares of
Restricted Stock at the price of RMB 1 per share and paid totally RMB 124,050 to the above incentive objects. After confirmed by
Shenzhen Branch of CSDCC, the Company completed purchase and cancellation work on July 15, 2019.
For detailed contents, see Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement of
Completion Repurchasing and Canceling a Part of Restricted Stock disclosed on Securities Times, China Securities Journal,
Securities Daily, and cninfo.com.cn dated August 30, 2018, March 28, 2019 and July 16, 2019.
3. On August 29, 2018, the 14th Session of the Sixth Board of Directors reviewed and adopted Proposal on Repurchasing and
Canceling a Part of Restricted Stock. For disqualification of one Incentive Object due to her resignation, the Company has decided to
repurchase and cancel 3,500 shares of Restricted Stock at the price of 1 yuan per share. This proposal shall be submitted to the
Annual General Meeting of Shareholders for 2019 Fiscal Year for approval.
For detailed contents, see Announcement of Repurchasing and Canceling a Part of Restricted Stock disclosed on Securities
Times, China Securities Journal, Securities Daily, and cninfo.com.cn dated August 30, 2019.
XVI. Significant Connected Transactions
1. Connected transaction related to daily business
√ Applicable □ Not-applicable
Connecte
d party
Correlat
ed
relation
Type of
connect
ed
transacti
on
Contents
of
connecte
d
transacti
on
Pricing
principl
e of
connect
ed
transacti
on
Price of
connect
ed
transacti
on
Amount
of
connect
ed
transacti
on
(RMB1
0,000)
Percent
age to
amount
of same
transacti
on
Approv
ed
transacti
on limit
(RMB1
0,000)
Exceedi
ng
approve
d limit
or not
Means
of
paymen
ts of
connect
ed
transacti
on
Market
price of
availabl
e same
transacti
on
Date of
disclosu
re
Referen
ce for
disclos
ure
Wuhan
Anzai
Cookware
Co., Ltd.
Associat
ed
enterpri
se
Purchas
e of
commo
dity
Finished
products
Contract
price --
24,522.
1 1.93% 0 No
Bank
transfer
or notes
0
Annual Report 2019 of Zhejiang Supor Co., Ltd.
34
Wuhan
Anzai
Cookware
Co., Ltd.
Associat
ed
enterpri
se
Purchas
e of
commo
dity
Accesso
ries
Market
price --
10,454.
58 0.82% 0 No
Bank
transfer
or notes
0
GROUPE
SEB
EXPORT
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price --
1,124.2
5 0.09% 0 No
Bank
transfer
or notes
0
S.A.S.
GROUPE
SEB
MOULIN
EX
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Accesso
ries
Market
price -- 849.26 0.07% 0 No
Bank
transfer
or notes
0
LAGOST
INA
S.P.A.
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price -- 131.02 0.01% 0 No
Bank
transfer
or notes
0
TEFAL
S.A.S.
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Accesso
ries
Market
price -- 679.82 0.05% 0 No
Bank
transfer
or notes
0
Annual Report 2019 of Zhejiang Supor Co., Ltd.
35
CALOR
SAS
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Accesso
ries
Market
price -- 890.32 0.07% 0 No
Bank
transfer
or notes
0
EMSA
GmbH
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price -- 876.05 0.07% 0 No
Bank
transfer
or notes
0
GROUPE
SEB
SINGAP
ORE
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price -- 244.47 0.02% 0 No
Bank
transfer
or notes
0
GROUPE
SEB
THAILA
ND
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price -- 222.27 0.02% 0 No
Bank
transfer
or notes
0
SEB
ASIA
LTD.
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price -- 98.52 0.01% 0 No
Bank
transfer
or notes
0
Heshan
Demei
Tablewar
e Co.,
Ltd.
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price -- 43.57 0.00% 0 No
Bank
transfer
or notes
0
WMF
Group
Gmbh
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price --
2,750.0
6 0.22% 0 No
Bank
transfer
or notes
0
Annual Report 2019 of Zhejiang Supor Co., Ltd.
36
Emsa
Taicang
Co., Ltd.
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price -- 373.72 0.03% 0 No
Bank
transfer
or notes
0
WMF
Consumer
Goods
(Shanghai
) Co, Ltd.
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price -- 489.28 0.04% 0 No
Bank
transfer
or notes
0
SEB
INTERN
ATIONA
L
SERVICE
S.A.S.
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Finished
products
Contract
price -- 121.03 0.01% 0 No
Bank
transfer
or notes
0
ETHERA
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Accesso
ries
Market
price -- 379.25 0.03% 0 No
Bank
transfer
or notes
0
SEB
ASIA
LTD.
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price --
457,156
.79 23.03% 0 No
Bank
transfer
or notes
0
SEB
ASIA
LTD.
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Accesso
ries
Contract
price -- 294.57 0.01% 0 No
Bank
transfer
or notes
0
Annual Report 2019 of Zhejiang Supor Co., Ltd.
37
S.A.S.
SEB
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price --
2,150.4
3 0.11% 0 No
Bank
transfer
or notes
0
S.A.S.
SEB
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Sale of
commo
dities
Accesso
ries
Contract
price -- 111.78 0.01% 0 No
Bank
transfer
or notes
0
TEFAL
S.A.S.
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price -- 828.39 0.04% 0 No
Bank
transfer
or notes
0
TEFAL
S.A.S.
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Sale of
commo
dities
Accesso
ries
Contract
price --
1,101.3
2 0.06% 0 No
Bank
transfer
or notes
0
Annual Report 2019 of Zhejiang Supor Co., Ltd.
38
S.A.S.
GROUPE
SEB
MOULIN
EX
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price --
2,711.1
4 0.14% 0 No
Bank
transfer
or notes
0
CALOR
SAS
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price --
3,200.7
8 0.16% 0 No
Bank
transfer
or notes
0
Supor
Group
Compan
y
controll
ed by
related
natural
person
Sale of
commo
dities
Finished
products
Market
price -- 479.27 0.02% 0 No
Bank
transfer
or notes
0
SEB
INTERN
ATIONA
L
SERVICE
S.A.S.
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price -- 849.2 0.04% 0 No
Bank
transfer
or notes
0
Annual Report 2019 of Zhejiang Supor Co., Ltd.
39
SEB
INTERN
ATIONA
L
SERVICE
S.A.S.
Same
controlli
ng
sharehol
der with
the
controlli
ng
sharehol
der
Sale of
commo
dities
Accesso
ries
Contract
price -- 185.73 0.01% 0 No
Bank
transfer
or notes
0
ALL-CL
AD
METALC
RAFTER
S LLC
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price -- 63.94 0.00% 0 No
Bank
transfer
or notes
0
LAGOST
INA
S.P.A.
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price -- 15.82 0.00% 0 No
Bank
transfer
or notes
0
LAGOST
INA
S.P.A.
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Accesso
ries
Contract
price -- 146.2 0.01% 0 No
Bank
transfer
or notes
0
GROUPE
SEB
CANAD
A IN
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price --
1,437.3
6 0.07% 0 No
Bank
transfer
or notes
0
IMUSA
USA LLC
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price -- 303.76 0.02% 0 No
Bank
transfer
or notes
0
WMF
Consumer
Goods
(Shanghai
) Co, Ltd.
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price -- 101.69 0.01% 0 No
Bank
transfer
or notes
0
Annual Report 2019 of Zhejiang Supor Co., Ltd.
40
WMF
Groupe
Gmbh
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price --
1,265.6
5 0.06% 0 No
Bank
transfer
or notes
0
WMF
CONSU
MER
ELECTRI
C GMBH
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price -- 10.45 0.00% 0 No
Bank
transfer
or notes
0
VIETNA
M FAN
JOINT
STOCK
COMPA
NY
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Finished
products
Contract
price --
2,184.8
3 0.11% 0 No
Bank
transfer
or notes
0
VIETNA
M FAN
JOINT
STOCK
COMPA
NY
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Accesso
ries
Contract
price -- 1.96 0.00% 0 No
Bank
transfer
or notes
0
Groupe
Seb
Andean
S.A
Same
controlli
ng
sharehol
der
Sale of
commo
dities
Accesso
ries
Contract
price -- 27.04 0.00% 0 No
Bank
transfer
or notes
0
Wuhan
Anzai
Cookware
Co., Ltd.
Associat
ed
enterpri
se
Sale of
commo
dities
Finished
products
Contract
price -- 78.04 0.00% 0 No
Bank
transfer
or notes
0
SEB
ASIA
LTD.
Same
controlli
ng
sharehol
der
Purchas
e of
commo
dity
Accesso
ries
Contract
price -- 36.74 0.00% 0 No
Bank
transfer
or notes
0
Total -- -- 518,992
.45 -- 0 -- -- -- -- --
Details of large sales return Not applicable
Annual Report 2019 of Zhejiang Supor Co., Ltd.
41
Actual implementation of estimated
total amount of connected transaction
by category incurred during the period
in the report period (if any)
In 2019, the annual daily connected transaction amount between the Company and SEB as
well as its related parties was estimated to be RMB 5,233,940,000 and the actual daily
connected transaction amount was RMB 4,834,584,600, decreasing by RMB 399,355,400.
(See Announcement on Estimated Annual Daily Connected Transactions of 2019 disclosed
on Securities Daily, Securities Times, China Securities Daily and cninfo.com.cn on March
28, 2019.
Reason for the big difference between
transacted price and market reference
price (if applicable)
Not applicable
2. Connected transactions from purchase and sales for assets or equity
□ Applicable √ Not-applicable
There were no connected transactions from purchase and sales for assets or equity in the reporting period.
3. Connected transaction for co-investment abroad
√ Applicable □ Not-applicable
Parties to
co-investment
Correlated
relation
Name of
invested
company
Main business
items of
invested
company
Registered
capital of
invested
company
Total assets
(RMB 10,000) of
invested
company
Net assets (RMB
10,000) of
invested
company
Net profits (RMB
10,000) of
invested
company
Supor Group
Enterprises
controlled by
the
Company’s
director Mr.
Su Xianze
Zhejiang
Supor Water
Heater Co.,
Ltd.
Manufacture,
sales and
installation of
electric water
heater, gas
water heater,
solar water
heater, and
water heater
accessories.
100 million
Yuan
Progress of major
construction in progress of
the invested company (if
applicable)
As of the end of this reporting period, the procedures of registration of Zhejiang Supor Water Heater
Co., Ltd. have been completed and its business license has been obtained.
4. Connected creditor’s rights and debts
□ Applicable √ Not-applicable
There were no related creditor’s rights and debts in the reporting period
Annual Report 2019 of Zhejiang Supor Co., Ltd.
42
5. Other important Connected transactions
□ Applicable √ Not-applicable
There were no significant connected transactions in the reporting period.
XVII. Significant Contracts and Performance
1. Custody, contracting, and leasing
(1) Custody
□ Applicable √ Not-applicable
No custody was made in the reporting period.
(2) Contracting
□ Applicable √ Not-applicable
No contracting was made in the reporting period.
(3) Leasing
□ Applicable √ Not-applicable
No leasing existed in the reporting period.
2. Important guarantee
□ Applicable √ Not-applicable
No guarantee was made in the reporting period.
3. Entrusting others for cash asset management
(1) Entrustment for financial management
√ Applicable □ Not-applicable
Overview of entrusted financing in the reporting period
Unit: CNY10,000
Specific type Source of fund for
entrusted financing
Amount incurred of
entrusted financing Undue balance
Overdue amount
unclaimed
Bank financial products Self-owned capital 153,000.00 126,000.00 0
Total 153,000.00 126,000.00 0
Financial products purchased during reporting period and corresponding principal collection and income are shown below:
1) See the Announcement of Short-term Investment Using Excessive Cash (No. 2019-017), the Announcement of Progress of Using
Excessive Cash to Purchase Financial Products (No. 2019-023), the Announcement of Progress of Using Excessive Cash to Purchase
Annual Report 2019 of Zhejiang Supor Co., Ltd.
43
Financial Products (No. 2019-043), the Announcement of Progress of Using Excessive Cash to Purchase Financial Products (No.
2019-062) and the Announcement of Progress of Using Excessive Cash to Purchase Financial Products (No. 2020-004) disclosed at
http://www.cninfo.com.cn for details of bank financial products purchased in 2019.
2) During the year 2019, the Money Market Fund and China Treasury Bond Repo invested have been disclosed at
http://www.cninfo.com.cn: Announcement of Using Excessive Cash to Invest in Money Market Fund and China Treasury Bond Repo
(2018-012) and Announcement of Progress of Using Excessive Cash to Invest in Money Market Fund and China Treasury Bond
Repo (2019-024).
Specific description for high-risk entrusted finance with single significant amount, low security, poor liquidity and unguaranteed
principal
□ Applicable √ Not-applicable
Circumstances in which principal of entrusted financing may not be recovered or which may result in decrease in value:
□ Applicable √ Not-applicable
(2) Entrustment for loan
□ Applicable √ Not-applicable
No entrustment for loan was made in the reporting period.
4. Other important contracts
□ Applicable √ Not-applicable
There were no other important contracts involved in the Company in the reporting period.
XVIII. CSR Building
1. CSR fulfillment for accurate poverty alleviation
During the reporting period, the Company kept running the “Supor primary school” charity project to carry out charity activities
of aiding the education in villages of middle and west China’s remote mountainous areas, build school buildings to improve the
environment of schools, train teachers to upgrade capacities of rural schools, etc. Meanwhile, the Company organized the first
“Charity Boost +” activity within the Company, providing financial support for the charity projects participated by 4 employees in
terms of elderly care, student subsidy, care for children with autism, and other aspects. In addition, the Company held the fifth
“Charity Week” within the Company to call on employees to donate nearly one thousand portions of food to poverty-stricken families
through the food bank and as a result, 7 employees volunteered to give care to children in Supor primary schools in mountainous
areas in Yunnan province personally.
2. Performance of the social responsibility of targeted poverty alleviation
(1) Targeted poverty alleviation plan
“Letting children in remote mountainous areas get fair education opportunities” is the purpose aim that the Company has upheld
for more than 10 years. At present, the Company has been joining hand with local governments to improve the environment of the
schools in remote and backward villages, promote village teacher teams to grow, care stay-at-home children, etc. with the hope to
change the education situation in these areas through continuous efforts. The Company was also proactive in encouraging and
Annual Report 2019 of Zhejiang Supor Co., Ltd.
44
supporting employees to take part in charity activities to contribute to the social progress.
(2) Overview of annual targeted poverty alleviation
In the reporting period, the Company continued donating resources to middle and west China’s remote mountainous areas to
improve the schooling conditions, constructed Supor primary schools and supported the following development of these schools. At
present, the Company’s commonweal map has covered the mountainous areas in 12 provinces and autonomous regions, including
Qinghai, Yunnan, Guizhou, Sichuan, Hubei, Jiangxi, Hunan, Guangxi, Shaanxi, Gansu and Hebei; it now has built 26 schools. In
addition to school buildings, the Company built “NenYaEr” libraries, constructed “LiLiXiang” canteens, provided training and
overseas study opportunities for the teachers of Supor primary schools, and introduced live online courses of music, fine arts and
English to rural primary schools that lack teacher resources, fully improving their philosophy of schooling and schooling level and
enabling children in villages to have faire education opportunities.
In the reporting period, the Company completed building 1 Supor primary school, organized 1 training for villages teachers of
Supor primary schools, once rewarded excellent teachers with awards and study opportunities, dispatched volunteer teachers to the
demanding schools, organized volunteers to visit the schools, provided resource support and aided poor students financially as it
planned. Besides, it introduced Internet live online art course to 4 rural schools to enrich vision of rural teachers and students.
(3) Effects of targeted poverty alleviation
Indicator Measurement unit Quantity/fulfillment
Amount invested to aid poor students RMB 10,000 4
Number of aid poor students Person 40
Amount invested to improve the education
resources in poor areas RMB 10,000 260
(4) Subsequent targeted poverty alleviation plan
In the future, the Company will continue implementing Supor primary school project and donating to build primary schools in
the villages in mountainous areas, so as to improve their schooling conditions. By estimate, there will be 2 Supor primary schools
built in 2020. At the same time, the Company will invest more to help teachers of these schools to grow, and cooperate with relevant
organizations to carry out activities that can benefit their development.
3. Environmental protection related situations
Do the listed company and its subsidiary company belong to key pollutant discharging unit posted by the environmental protection
department?
Yes
Name of the
Company or
subsidiary
Name of
main
pollutant or
specific
pollutant
Discharge
mode
Number of
discharge
ports
Distribution
of discharge
ports
Discharge
concentratio
n
Executive
pollutant
discharge
standard
Total
discharge
amount
Total
discharge
amount
checked
Excessive
discharge
Annual Report 2019 of Zhejiang Supor Co., Ltd.
45
Zhejiang
Supor Co.,
Ltd.
COD
Included
into urban
pipeline
after
pollutants
are treated
up to
standards
2
Wastewater
discharge
port of the
wastewater
station in
plant area
≤30mg/L
(count
according to
the indexes
of design
parameters
of effluent
quality of
Damaiyu
Wastewater
Station in
Yuhuan
after
discharging
into piping)
“Quasi-IV”
standards in
the Table of
Effluent
Indexes and
Standard
Limits for
Urban
Sewage
Treatment
Stations in
Taizhou”
8.96547 t 20.32 t None
Ammoniaca
l nitrogen 2
≤1.5mg/L
(count
according to
the indexes
of design
parameters
of effluent
quality of
Damaiyu
Wastewater
Station in
Yuhuan
after
discharging
into piping)
0.44827 t 3.05 t None
Annual Report 2019 of Zhejiang Supor Co., Ltd.
46
Zhejiang
Supor
Electrical
Appliance
Manufacturi
ng Co.,
Ltd
COD 1
Wastewater
discharge
port of the
wastewater
station in
plant area
50mg/L
(count
according to
the indexes
of design
parameters
of effluent
quality of
Qianjiang
Wastewater
Station in
Xiaoshan
after
discharging
into piping)
Grade I-A
in the
Discharge
Standard of
Pollutants
for
Municipal
Wastewater
Treatment
Plant
(GB18918-
2002)
14.0261 t 14.6 t None
Ammoniaca
l nitrogen 1
5mg/L
(count
according to
the indexes
of design
parameters
of effluent
quality of
Qianjiang
Wastewater
Station in
Xiaoshan
after
discharging
into piping)
Indirect
Discharge
for
Emission
Limitation
of Nitrogen
and
Phosphorus
for
Industrial
Wastewater
(DB33/887-
2013)
0.6631 t 0.73 t None
Annual Report 2019 of Zhejiang Supor Co., Ltd.
47
Zhejiang
Shaoxing
Supor
Domestic
Electrical
Appliances
Co., Ltd.
COD 1
Wastewater
discharge
port of the
wastewater
station in
plant area
28 mg/L
(count
according to
the indexes
of design
parameters
of effluent
quality of
Qianjiang
Wastewater
Station in
Xiaoshan
after
discharging
into piping)
Grade III in
Form 4 of
the
Integrated
Wastewater
Discharge
Standard
(GB8978-1
996)
18.679444 25.83 t None
Ammoniaca
l nitrogen 1
1.6 mg/L
(count
according to
the indexes
of design
parameters
of effluent
quality of
Wastewater
Station of
Shaoxing
Water
Treatment
Developme
nt Co.,
Ltd.after
discharging
into piping)
Indirect
Discharge
for
Emission
Limitation
of Nitrogen
and
Phosphorus
for
Industrial
Wastewater
(DB33/887-
2013)
1.0673968 5.38 t None
Wuhan
Supor
Cookware
Co., Ltd.
COD Continuity 1
Wastewater
discharge
port of the
sewage
treatment
station in
plant area
67mg/L
(Entering
sewage
plant of the
park after
being
discharged
into
municipal
network)
Grade III in
the
Integrated
Wastewater
Discharge
Standard
(GB8978-1
996)
5.9951 t 10.34 t None
Annual Report 2019 of Zhejiang Supor Co., Ltd.
48
Construction and operation of pollution prevention facilities
Under special sewage treatment mechanism in the Company, all wastewater generated will gather at this station for central
treatment. After chemical precipitation and autocatalyzed oxidation, wastewater will meet the first grade discharge standards and then
be discharged into urban wastewater pipes. At the same time, the Company has reclaimed water reuse facilities that can arrange water
treatment plan according to water quality. The production wastewater is first treated at the sewage treatment station and then disposed
through the reclaimed water system for production. After that, part of the sanitary sewage after combined treatment enters municipal
sewage network. In reporting period, the environmental protection department monitored the wastewater treatment station online and
found it operating normally and discharging water up to standard.
Environmental impact assessment of construction projects and other administrative permissions for environmental protection
During the reporting period, the new plant construction project of Zhejiang Large Kitchen Appliance Co., Ltd., a wholly-owned
subsidiary, was implemented in Binhai Industrial Zone, Keqiao District, Shaoxing, Zhejiang Province. The project meets the local
planning requirements on the environmental function zones; the national and provincial pollutant discharge standards and total
discharge control requirements; the local environmental assessment requirements of the land use planning and coastal industrial zone
planning; the industrial policies; the requirements of “Three Lines and One List”.
Environmental emergency plan
Environmental Emergency Plan of Zhejiang Supor Co., Ltd.
Environmental monitoring scheme
(1) Monitoring contents
Discharge of water pollutants;
(2) Monitoring mode
Self-monitoring is completed through auto monitoring and manual monitoring.
(3) Monitoring indicators, monitoring frequency and monitoring method
1. Main monitoring indicators: pH, suspended matters, chemical oxygen demand, five daybod, oils, ammoniacal nitrogen,
copper, zinc, lead, nickel and fluorides;
2. The pH value of wastewater treatment station is monitored 24 hours per day; suspended matters and chemical oxygen demand
are analyzed once a week; oils, ammoniacal nitrogen, copper, zinc, lead, nickel and fluorides is tested once year by a third-party
environmental protection institution.
Other environmental information that should be made public
None
Other environmental protection related information
Zhejiang Shaoxing Supor Housewares Co., Ltd., the wholly-owned subsidiary of the Company, received a decision on
administrative penalty issued by Yuecheng District (High-tech Area) Branch of Shaoxing Municipal Environmental Protection
Bureau on November 5, 2018 that Zhejiang Shaoxing Supor Housewares Co., Ltd. was imposed the administrative penalty of RMB
250,000 Yuan due to violation of the environment law. It has taken corrective measures as required and fully paid the penalty. As
confirmed by related authority, related problem has been corrected as required. The Company has required related subsidiaries to
enhance the learning of related environmental protection laws and the knowledge of environmental protection, and to work according
to related procedures so as to avoid such kinds of problem. The Company will also continue to upgrade internal management and
control level, improve environment management policies, observe environmental protection laws and regulations and perform
environmental protection responsibilities.
XIX. Introduction for Other Important Matters
□ Applicable √ Not-applicable
Annual Report 2019 of Zhejiang Supor Co., Ltd.
49
There were no other important contracts to be noted in the reporting period.
XX. Significant Event of the Company’s Subsidiaries
√ Applicable □ Not-applicable
1. On June 28th, 2018, there was a fire accident happened in the rented warehouse, which is located out of its production site in
Yiqiao Town, Xiaoshan District, Hangzhou, of Zhejiang Supor Electrical Appliance Manufacturing Co., Ltd.. There was no loss of
life and personal injury during this fire accident and also no damage to the workshops and production equipment of the subsidiary.
For detailed contents, please see the Announcement of Fire Accident in Warehouse of Wholly-owned Subsidiary disclosed on
Securities Daily, Securities Times, China Securities Daily and cninfo.com.cn dated June 28, 2018. As of the end of the reporting
period, the insurance company has paid the claims to Zhejiang Supor Electrical Appliance Manufacturing Co., Ltd. This fire accident
did not have a significant impact on the Company's operations and performance.
2. The Proposal on Increasing Registered Capital of Subsidiary as Connected Transaction was reviewed and adopted by the 13th
Session of the Sixth Board of Directors. The Company increased its capital investment to its holding subsidiary SOUTH EAST ASIA
DOMESTIC APPLIANCES PTE. LTD. by SGD 1,963,500 (equivalent to RMB 10,201,800) with its own capital. As of the end of the
reporting period, the capital increase procedures were completed and the Business Profile issued by the Accounting and Corporate
Regulatory Authority of Singapore was obtained.
For detailed contents, please see the Announcement of Increasing Registered Capital of Subsidiary as Connected Transaction
and the Announcement of the Progress of Increasing Registered Capital of Subsidiary as Connected Transaction disclosed on
Securities Daily, Securities Times, China Securities Daily and cninfo.com.cn dated June 1, 2019 and January 8, 2020.
3. The Proposal on Establishing a Joint Venture as Connected Transaction was reviewed and adopted by the 14th Session of the
Sixth Board of Directors. The Company plans to establish a Joint Venture Zhejiang Supor Water Heaters Co., Ltd. with self-owned
cash CNY 52 million together with connected party Supor Group Co., Ltd. who is intended to invest CNY 48 million. As of the end
of this reporting period, the procedures of industrial and commercial registration for the joint venture have been completed and its
business license has been obtained.
For detailed contents, please see the Announcement of the Establishing a Joint Venture as Connected Transaction and the
Announcement of the Progress of Establishing a Joint Venture as Connected Transaction (No.: 2019-050 and 2019-075) disclosed on
Securities Daily, Securities Times, China Securities Daily and cninfo.com.cn dated August 30, 2019 and December 14, 2019.
4. Zhejiang Supor Electrical Appliance Manufacturing Co., Ltd. received a decision on administrative penalty issued by the Market
Supervision and Administration of Yangpu District, Shanghai on November 6, 2019 that Zhejiang Supor Electrical was imposed the
fine of RMB 3,843,100 because the advertisement for one of its blender products violated the provisions of Item (II), Paragraph II,
Article 28 of the Advertisement Law of the People’s Republic of China. Zhejiang Supor Electrical has taken corrective measures as
required and fully paid the penalty, but such product has no quality problems.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
50
SECTION VI CHANGES IN SHARE CAPITAL AND
PARTICULARS ABOUT SHAREHOLDERS
I. Changes in Share Capital
1. Changes in share capital
Unit: share
Before change Increase/decrease in the period (+ , -) After change
Share
number Ratio
New
shares
Shares
bonus
Convert
ed
capital
Others Subtotal Share
number Ratio
I. Restricted outstanding
shares 277,007,426 33.73% -66,629,759 -66,629,759 210,377,667 25.62%
1. Shares held by the State 0 0.00% 0 0 0 0.00%
2. Shares held by state-owned
legal entities 0 0.00% 0 0 0 0.00%
3. Shares held by other
domestic investors 5,639,836 0.69% -1,629,759 -1,629,759 4,010,077 0.49%
Including: Shares held by
domestic legal entities 0 0.00% 0 0 0 0.00%
Shares held by
domestic natural persons 5,639,836 0.69% -1,629,759 -1,629,759 4,010,077 0.49%
4. Shares held by foreign
investors 271,367,590 33.04% -65,000,000 -65,000,000 206,367,590 25.13%
Including: Shares held by
foreign legal entities 271,367,590 33.04% -65,000,000 -65,000,000 206,367,590 25.13%
Shares held by foreign
natural persons 0 0.00% 0 0 0 0.00%
II. Non-restricted outstanding
shares 544,236,534 66.27% 66,505,709 66,505,709 610,742,243 74.38%
1. RMB common shares 544,236,534 66.27% 66,505,709 66,505,709 610,742,243 74.38%
2. Domestically listed foreign
shares 0 0.00% 0 0 0 0.00%
3. Overseas listed foreign
shares 0 0.00% 0 0 0 0.00%
Annual Report 2019 of Zhejiang Supor Co., Ltd.
51
4. Others 0 0.00% 0 0 0 0.00%
III. Total shares 821,243,960 100.00
% -124,050 -124,050 821,119,910
100.00
%
Reasons for share capital change
√ Applicable □ Not-applicable
1. Top management of the Company unlocked 25% of the shares registered under their names on the last trading day of the previous
year.
2. On January 3, 2019, totally 387,400 shares of Restricted Stock unlockable in the first unlock period under the restricted stock
incentive plan 2017 were unlocked and circulated on the market.
3. On June 27, 2019, the 65 million shares of restricted stock of SEB Internationale, the controlling shareholder of the Company,
through strategic investment in 2016 were unlocked and circulated on the market.
4. On July 15, 2019, totally 124,050 shares of restricted stock that have been granted to resigned incentive objects but have not been
unlocked from restriction in 2017 restricted stock incentive plan were repurchased and cancelled. Upon the repurchase and
cancellation, the Company’s total capital stock decreased from 821,243,960 to 821,119,910 shares.
5. On November 15, 2019, totally 84,200 shares of the Reserved Restricted Stock unlockable in the first unlock period under the
restricted stock incentive plan 2017 were unlocked and circulated on the market.
6. On December 30, 2019, totally 756,400 shares of Restricted Stock unlockable in the second unlock period under the restricted
stock incentive plan 2017 were unlocked and circulated on the market.
Approval of change in stock
√ Applicable □ Not-applicable
1. On March 29, 2018, the 6th Session of the Sixth Board of Directors reviewed and adopted the Proposal on Unlocking of Restricted
Stock within the First Unlock Period of 2017 Restricted Stock Incentive Plan, agreeing to unlock the Restricted Stock for 181
qualified Incentive Objects in the first unlock period. The number of restricted stock unlocked is 387,400. The shares of restricted
stock unlockable in the first unlock period were circulated on January 3, 2019.
2. The lockup period of 36 months for the 65 million shares held by SEB Internationale, the controlling shareholder of the Company,
through strategic investment in 2016 expired and these shares were unlocked and circulated on June 27, 2019 after confirmed by
Shenzhen Branch of CSDCC.
3. On August 29, 2018, the 8th Session of the Sixth Board of Directors reviewed and adopted the Proposal on Repurchasing and
Canceling a Part of Restricted Stock. Since six incentive objects cannot meet incentive conditions due to their resignation, totally
39,150 shares of restricted stock failing in reaching unlocking conditions are to be repurchased and canceled at the price of RMB 1
per share. On March 26, 2019, the 11th Session of the Sixth Board of Directors reviewed and adopted Proposal on Repurchasing and
Canceling a Part of Restricted Stock. Since three incentive objects cannot meet incentive conditions due to their resignation, totally
84,900 shares of restricted stock failing in reaching unlocking conditions are to be repurchased and canceled at the price of RMB 1
per share. The repurchase and cancellation was approved upon deliberation by Annual General Meeting of Shareholders for 2018
Fiscal Year and totally 124,050 Restricted Stock granted to these nine resigned incentive objects that failed in reaching unlocking
conditions were repurchased and cancelled at the price of RMB 1 per share. After confirmed by Shenzhen Branch of CSDCC, the
Company completed repurchase and cancellation work on July 15, 2019.
4. On March 26, 2019, the 11th Session of the Sixth Board of Directors reviewed and adopted the Proposal on Unlocking of
Restricted Stock within the Second Unlock Period and the Reserved Restricted Stock within the First Unlock Period of 2017
Restricted Stock Incentive Plan, agreeing to unlock the Restricted Stock for 221 qualified Incentive Objects in the second unlock
period as well as unlock Reserved Restricted Stock in the first unlock period. Totally 840,600 shares of restricted stock will be
unlocked, in which the Restricted Stock unlocked during the second unlock period is 756,400 shares and Reserved Restricted Stock
unlocked during the first unlock period is 84,200 shares. The Restricted Stock in the second unlock period was listed on December 30,
Annual Report 2019 of Zhejiang Supor Co., Ltd.
52
2019, and the Reserved Restricted Stock in the first unlock period was listed on November 15, 2019.
5. On August 29, 2018, the 14th Session of the Sixth Board of Directors reviewed and adopted Proposal on Repurchasing and
Canceling a Part of Restricted Stock. Since one incentive object cannot meet incentive conditions due to her resignation, totally 3,500
shares of Restricted Stock failing in reaching unlocking conditions were repurchased and cancelled at the price of RMB 1 per share.
This proposal shall be submitted to the Annual General Meeting of Shareholders for 2019 Fiscal Year for approval.
Transfer of shares changed
□ Applicable √ Not-applicable
Progress in the implementation of share repurchase
√ Applicable □ Not-applicable
The Proposal on Public Shares Repurchase Plan was reviewed and approved by the 14th Session of the Sixth Board of Directors
held on August 29, 2019. With the confidence in the Company’s future development, in order to effectively protect the interests of
shareholders and enhance investor confidence, and in consideration of the Company’s overall financial situation, the Company
planned to repurchase the Company’s shares with self-owned capital for reducing registered capital and implementing equity
incentive. The Company will repurchase the shares of the Company from parallel market through centralized bidding with the
highest price of RMB 75.48 per share (adjusted to RMB75.22 per share after Profit Distribution or First Half Year of 2019), and
number of shares repurchased not less than 4,105,600 shares (inclusive) and not more than 8,211,199 shares (inclusive). As of the end
of the reporting period, the Company has repurchased 20,000 shares accounting for 0.002% of the total shares of the Company at the
price of RMB 71.90 per share with the payment of RMB 1,438,200 (excluding transaction fee).
This Share Repurchase Plan has been approved by the Second Interim General Meeting of Shareholders in 2019 held on
September 23, 2019 and the Repurchase Report on Public Shares was published on September 25, 2019. For detailed contents, please
see the Repurchase Report on Public Shares (Announcement No.: 2019-058), Announcement on Adjusting Share Price for Public
Shares Repurchase Plan (Announcement No.: 2019-064), Announcement on the Progress of Public Shares Repurchase
(Announcement No.: 2019-059, 2019-070, 2019-074 and 2020-001) and the Announcement on the First Share Repurchase
(Announcement No.: 2019-073) disclosed on Securities Times, China Securities Daily, Securities Daily, and
http://www.cninfo.com.cn.
Progress in the reduction of shareholding of repurchased shares through auction
□ Applicable √ Not-applicable
Influence of shares change on basic earnings per share and diluted earnings per share in latest year and period, net assets per share
owned by the Company’s ordinary shareholder and other financial indexes.
√ Applicable □ Not-applicable
Since tiny influence on basic EPS and diluted EPS, the 124,050 restricted shares repurchased and cancelled in this period
generate no effect on other financial indicators (e.g. net assets per share belonging to the Company’s common stockholder).
The other contents the company thinks fit to disclose or the securities regulatory authority requires to disclose
□ Applicable √ Not-applicable
2. Changes of Restricted Stock
√ Applicable □ Not-applicable
Unit: share
Annual Report 2019 of Zhejiang Supor Co., Ltd.
53
Name
Restricted
outstanding
stocks at
year-begin
Restricted
outstanding
stocks
increased in
current
period
Restricted
outstanding
stocks
unlocked in
period-period
Restricted
outstanding
stocks at
period-end
Restriction reason Date of unlocking
restriction
SEB
INTERNATIONALE
S.A.S
271,367,590 0 65,000,000 206,367,590 Restricted strategic
investment shares
Totally 65,000,000
non-tradable shares were
unlocked on June 27, 2019;
rest part of shares will be
unlocked on December 21,
2021.
Su Xianze 1,152,324 0 288,081 864,243 Locked stocks of
top management
Unlocking 25% of the
stocks registered under his
name on the last trading
day of the previous year
Xu Bo 177,450 35,000 27,700 184,750 Locked stocks of
top management
Unlocking 25% of the
stocks registered under his
name on the last trading
day of the previous year
Ye Jide 53,712 14,000 23,928 43,784 Locked stocks of
top management
Unlocking 25% of the
stocks registered under his
name on the last trading
day of the previous year
Su Ming-Jui 0 13,000 0 13,000 Locked stocks of
top management
Unlocking 25% of the
stocks registered under his
name on the last trading
day of the previous year
Annual Report 2019 of Zhejiang Supor Co., Ltd.
54
Incentive objects of
Equity Incentive Plan
2017
4,256,350 0 1,352,050 2,904,300
124,050 shares of
restricted stock were
repurchased and
cancelled in
consideration that
parts of incentive
objects resigned.
Under the 2017 stock
incentive plan, the 387,400
restricted stock that can be
unlocked in the first unlock
period was listed and
circulated on January 3,
2019, and the 84,200
shares of Reserved
Restricted Stock in the first
unlock period was listed
and circulated on
November 15, 2019, and
the 756,400 restricted stock
that can be unlocked in the
second unlock period was
listed and circulated on
December 30, 2019.
Total 277,007,426 62,000 66,691,759 210,377,667 -- --
II. Security Offering and Listing Information
1. Security offering (excluding preferred stock) in the reporting period
□ Applicable √ Not-applicable
2. Total shares of the Company, change of shareholder structure, and changes of the Company’s assets and
liabilities structure
√ Applicable □ Not-applicable
On July 15, 2019, totally 124,050 shares of restricted stock that have been granted to resigned incentive objects but have not
been unlocked from restriction in 2017 restricted stock incentive plan were repurchased and cancelled. Upon the repurchase and
cancellation, the Company’s total capital stock decreased from 821,243,960 to 821,119,910 shares.
3. Staff shares
□ Applicable √ Not-applicable
III. Shareholders and the Actual Controller
1. Number of shareholders of the Company and share-holding conditions
Unit: share
Annual Report 2019 of Zhejiang Supor Co., Ltd.
55
Total number
of common
shareholders at
the end of the
reporting
period
9,435
Number of
common
shareholders at
the end of last
month before
the disclosure
date of the
annual report
9,904
Total number
of preferred
shareholder
whose voting
right is
recovered at
the end of
reporting
period (if any)
(refer to Note
8)
0
Total number
of preferred
stockholders
with restored
voting right at
the end of last
month before
the disclosure
date of the
annual report
(if any) (see
Note 8)
0
Information on shareholders holding more than 5% shares or information on top 10 shareholders
Name Nature
Sharehol
ding
ratio
Number of
shares held
at
period-end
Increase/dec
rease in the
reporting
period
Number of
restricted
shares
Number of
non-restricte
d
outstanding
shares
Pledged or frozen
Status of
share Share number
SEB INTERNATIONALE
S.A.S
Foreign
legal entity 81.19% 666,681,904 0 206,367,590 460,314,314
Hong Kong Securities
Clearing Company Ltd.
Foreign
legal entity 6.01% 49,335,017 10,919,482 0 49,335,017
Bank of China -E Fund
Medium and Small Cap
Complex Securities
Investment Fund
Others 1.52% 12,500,000 4,699,991 0 12,500,000
BNP Paribas - own funds Foreign
legal entity 0.68% 5,585,446 -737,350 0 5,585,446
China Construction Bank -
E-Fund New Silk Road
Flexible Complex Securities
Investment Fund
Others 0.68% 5,549,250 0 0 5,549,250
Fidelity Mutual Fund &
Investment Management -
clients' capital
Foreign
legal entity 0.67% 5,472,437 -3,277,101 0 5,472,437
Agricultural Bank of China
- E-fund Consumption
Industry Securities
Investment Fund
Foreign
legal entity 0.60% 4,919,542 0 0 4,919,542
Central Huijin Asset
Management Co., Ltd.
State-owned
legal person 0.54% 4,423,640 0 0 4,423,640
Annual Report 2019 of Zhejiang Supor Co., Ltd.
56
China Construction Bank -
Xingquan Social
Responsibility Complex
Securities Investment Fund
Others 0.48% 3,972,702 2,107,039 0 3,972,702
National Social Security
Fund No. 109 Others 0.29% 2,400,065 2,400,065 0 2,400,065
Strategic investor or general corporate
investor who becomes top 10 shareholder
as a result of rights issue (if any) (see
Note 3)
None
Description on the above-mentioned
shareholder relationships or concerted
actions
The company is not aware of whether the top ten shareholders are associated with each
other, and whether they are persons acting in concert as stipulated in the Measures for
the Administration of the Acquisition of Listed Companies.
Shareholdings of top 10 shareholders holding non-restricted shares
Name
Number of non-restricted
outstanding shares held at
period-end
Type of share
Type of share Share number
SEB INTERNATIONALE S.A.S 460,314,314 RMB common share 460,314,314
Hong Kong Securities Clearing Company Ltd. 49,335,017 RMB common share 49,335,017
Bank of China -E Fund Medium and Small Cap Complex
Securities Investment Fund 12,500,000 RMB common share 12,500,000
BNP Paribas - own funds 5,585,446 RMB common share 5,585,446
China Construction Bank - E-Fund New Silk Road Flexible
Complex Securities Investment Fund 5,549,250 RMB common share 5,549,250
Fidelity Mutual Fund & Investment Management - clients' capital 5,472,437 RMB common share 5,472,437
Agricultural Bank of China - E-fund Consumption Industry
Securities Investment Fund 4,919,542 RMB common share 4,919,542
Central Huijin Asset Management Co., Ltd. 4,423,640 RMB common share 4,423,640
China Construction Bank - Xingquan Social Responsibility
Complex Securities Investment Fund 3,972,702 RMB common share 3,972,702
National Social Security Fund No. 109 2,400,065 RMB common share 2,400,065
Connected relationship or concerted parties among the top 10
shareholders holding non-restricted outstanding shares, and
between the top 10 shareholders holding non-restricted
outstanding shares and top 10 shareholders
The company is not aware of whether the top ten shareholders
are associated with each other, and whether they are persons
acting in concert as stipulated in the Measures for the
Administration of the Acquisition of Listed Companies.
Information on top 10 common shareholders involved in
securities margin trading business (if any) (see Note 4) None
Did the top 10 common shareholders and the top 10 common shareholders holding non-restricted shares conduct the agreed
repurchase transaction during the reporting period?
Annual Report 2019 of Zhejiang Supor Co., Ltd.
57
□ Yes √ No
The top 10 common shareholders and the top 10 common shareholders holding non-restricted shares did not conduct the agreed
repurchase transaction during the reporting period.
2. The controlling shareholder
Property of controlling shareholder: foreign-controlled shareholding
Type of controlling shareholder: legal entity
Name of controlling
shareholder
Legal
representative/person
in charge
Date of
establishment
Organization
Code Main business
SEB INTERNATIONALE
S.A.S
Thierry de LA TOUR
D’ARTAISE December 26, 1978 None
Financial participation for all kinds of
French and overseas enterprises, i.e.,
purchasing and subscribing stock, bond,
share and interests, securities and
negotiable securities, transfer of such
securities, participation in all financial
activities related to the aforesaid financial
participation, purchasing, manufacturing
and sales of all kinds of household
devices for the purpose of marketing and
involvement in related service; all
activities for helping realize the
Company’s operation either directly or
indirectly, particularly the activities in
personal estate, real estate, finance,
commerce and industrial field.
Shareholding of other
overseas listed companies
by the Company’s
controlling shareholder in
the reporting period
None
Change of controlling shareholder in the reporting period
□ Applicable √ Not-applicable
No change of controlling shareholder occurred in the reporting period.
3. Actual controller and persons acting in concert
Property of actual controller: other foreign organization
Type of actual controller: legal entity
Name of the actual
controller Legal representative/person in charge Date of establishment Organization Code Main business
Annual Report 2019 of Zhejiang Supor Co., Ltd.
58
SEB S.A. Thierry de LA TOUR D’ARTAISE December 28, 1973 None
Holding or equity
participation and
management for various
enterprises
Holding of other
overseas listed
companies by the
Company’s actual
controller in the
reporting period
None
Change of actual controller in the reporting period
□ Applicable √ Not-applicable
No change of actual controller occurred in the reporting period.
Property right and controlling relationship diagram between the Company and the actual controller
Actual controller controlling the Company by trust or other assets management types
□ Applicable √ Not-applicable
4. Other corporate shareholders holding more than 10% shares
□ Applicable √ Not-applicable
5. Share restriction reduction of commitment subjects such as controlling shareholder, actual controller
and the recombination party
□ Applicable √ Not-applicable
Annual Report 2019 of Zhejiang Supor Co., Ltd.
59
SECTION VII INFORMATION ON PREFERRED STOCK
□ Applicable √ Not-applicable
No preferred stock existed in the reporting period.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
60
SECTION VIII COMPANY’S CONVERTIBLE BONDS
□ Applicable √ Not-applicable
No convertible bonds existed in the reporting period.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
61
SECTION IX PARTICULARS ABOUT DIRECTORS,
SUPERVISORS AND SENIOR MANAGEMENT STAFFS
I. Changes in Share Holding Status of Directors, Supervisors and Senior Management Staffs
Name Position Position
status
Gende
r Age
Comme
ncement
date of
term of
office
Expiry
date of
term of
office
Beginnin
g quantity
of stocks
Quantity
of
increased
stocks in
this
period
Quantity
of
decreased
stocks in
this
period
Number
of other
shares
increased
or
reduced
(shares)
Closing
quantity
of stocks
Thierry de LA
TOUR D’ARTAISE
Board
Chairma
n
On-service Male 65 April 20,
2017
April 19,
2020 0 0 0 0 0
Su Xianze Director on-service Male 52 April 20,
2017
April 19,
2020 1,152,324 0 288,081 0 864,243
Harry TOURET Director on-service Male 65 April 20,
2017
April 19,
2020 0 0 0 0 0
Vincent LEONARD Director Retiremen
t Male 59
April 20,
2017
Septemb
er 30,
2019
0 0 0 0 0
Stanislas de
GRAMONT Director on-service Male 55
January
03, 2019
April 19,
2020 0 0 0 0 0
Nathalie LOMON Director on-service Femal
e 49
Novemb
er 18,
2019
April 19,
2020 0 0 0 0 0
Tai Wai Chung Director on-service Male 60 April 19,
2018
April 19,
2020 0 0 0 0 0
Frederic BERAHA
Indepen
dent
director
Retiremen
t Male 69
April 20,
2017
February
26, 2019 0 0 0 0 0
Xiaoqing
PELLEMELE
Indepen
dent
director
Retiremen
t
Femal
e 63
April 20,
2017
February
26, 2019 0 0 0 0 0
Annual Report 2019 of Zhejiang Supor Co., Ltd.
62
Wang Baoqing
Indepen
dent
director
on-service Male 56 April 20,
2017
April 19,
2020 0 0 0 0 0
Hervé
MACHENAUD
Indepen
dent
director
on-service Male 73 April 19,
2019
April 19,
2020 0 0 0 0 0
Jean-Michel
PIVETEAU
Indepen
dent
director
on-service Male 73 April 19,
2019
April 19,
2020 0 0 0 0 0
Philippe SUMEIRE
Chairma
n of
Board of
Supervis
ors
on-service Male 60 April 20,
2017
April 19,
2020 0 0 0 0 0
Zhang Junfa Supervis
or on-service Male 43
April 07,
2017
April 06,
2020 0 0 0 0 0
Lu Lanhua Supervis
or on-service
Femal
e 42
April 07,
2017
April 06,
2020 0 0 0 0 0
Su Ming-Jui General
Manager on-service Male 52
October
18, 2017
April 19,
2020 260,000 0 26,000 0 234,000
Xu Bo
Chief
Financia
l Officer
on-service Male 52 April 20,
2017
April 19,
2020 411,600 0 102,850 0 308,750
Ye Jide
Vice
General
Manager
,
secretary
of the
board
On-service Male 44 April 20,
2017
April 19,
2020 123,712 0 30,928 0 92,784
Total -- -- -- -- -- -- 1,947,636 0 447,859 0 1,499,777
II. Change of directors, supervisors and senior management staffs
√ Applicable □ Not-applicable
Name Position Type Date Cause
Frederic BERAHA Independent
director
Retired after
the expiry of
term of
office
February 26, 2019 Six-year term of office expired
Annual Report 2019 of Zhejiang Supor Co., Ltd.
63
Xiaoqing PELLEMELE Independent
director
Retired after
the expiry of
term of
office
February 26, 2019 Six-year term of office expired
Vincent LEONARD Director Retirement September 30, 2019 Resign from the post of director of the Sixth
Board of Directors due to personal reason
III. Incumbency of Office
Professional backgrounds, main working experiences, and main responsibilities in the Company of present directors, supervisors and
senior management staffs
1. Directors
Mr. Thierry de LA TOUR D’ARTAISE: Board Chairman, Master of Management of Paris ESCP; chartered accountant.
Chairman and CEO of Group SEB; has served previously as Deputy Chairman of Group SEB, Chairman of CALOR, CFO and CEO
of CROISIERES PAQUET, audit manager of Coopers & Lybrand.
Mr. Harry TOURET: Director, post-graduate diplomas in management science and corporate organizational development,
currently Senior Executive Vice President of HR for SEB Group. He was former Executive VP HR WW of Aventis CropScience.
Mr. Stanislas de GRAMONTL Director, graduated from ESSEC Business School (Paris); COO of SEB Group. He has served
previously as top manager of Danone and president of Suntory Beverage & Food Limited (Europe).
Ms. Nathalie LOMON: Director, graduated from NEOMA Business School; chief financial officer of SEB Group. She has
served previously as executive vice president and financial director of Ingenico, France, financial executive of Rio Tinto Alcan, etc.
Mr. Su Xianze, Director, CEIBS EMBA, engineer; board chairman and general manager of Supor Group Co. Ltd., executive
partner of Hangzhou Ruifeng Equity Investment Management Partnership (Limited Partnership), executive director of Supor
Investment Co., Ltd., executive director of Hangzhou Supor Equity Investment Co., Ltd. and chairman of Zhejiang Supor Water
Heater Co., Ltd. He has severed as board chairman of the Company from 2001 to April, 2014, concurrently general manager of this
Company from 2001 to March, 2010.
Mr. Tai Wai Chung: Director, graduated from Industrial Engineering Specialty of University of Hong Kong. Executive vice
president of Asia region of SEB Group. He has served previously as board chairman and general manager of Apple (China), CMO of
Electrolux, board chairman of SEB Shanghai and general manager of the Company.
Mr. Wang Baoqing: Independent director of the Company, master of economics (accounting major) of Zhongnan University of
Economics and Law. Professor of Zhejiang Gongshang University, master tutor; now peer reviewer of professorate senior accountant
of Zhejiang Province, China CPA (non-practicing member), director of Zhejiang Audit Society, managing director of Zhejiang
Institute of Internal Audit, independent director of listed company.
Mr. Hervé MACHENAUD: Independent director, graduated from Sciences Po; currently president of Hong Ma Consulting
Services (Beijing) Co., Ltd., chairman of Paris Innovation Review and partner of Trail Capital. He formerly served as leader of EDF
Group Delegation to China, senior executive vice president of EDF, director in charge of EDF Generation and Engineering (DPI) and
Asia-Pacific director.
Mr. Jean-Michel PIVETEAU: Independent director, doctor of business administration, and mater of political science; currently
the chief representative of the Beijing Representative Office of X-PM Transition Partners, France, senior partner of B & A
Investment Bank, chairman of the Supervisory Board of MicroCred China, vice-chairman of the Supervisory Board of BAOBAB,
Holding, Paris, and board member of the French Trade Advisor Global Council-CNCCEF. He formerly served as Adviser for China
to BNP Paribas Chairman, Senior Adviser to BNP Paribas for China, Country Head of Paribas Bank in numerous Asian
counties, President Emeritus of the “French Trade Advisor Council” of China
2. Supervisors
Annual Report 2019 of Zhejiang Supor Co., Ltd.
64
Mr. Philippe SUMEIRE: Supervisor, graduated from Aix-en-Provence Law School with PHD’s degree of Private Law and
Comparative Law. He is Vice President Legal Affairs of Groupe SEB and Board Secretary. He has worked first for PEUGEOT S.A.
and ATOCHEM (chemical industry) and then held the position of General Counsel and Company Secretary for CLUB MED, GIAT
INDUSTRIES and MOULINEX S.A.
Mr. Zhang Junfa: Supervisor, graduated from Northwestern Polytechnical University. Chairman of the Trade Union of the
Company and office head of Yuhuan Site, he was working for security section, and then worked in legal affairs department and
office.
Ms. Lu Lanhua: Supervisor, graduated from Shanghai University of Finance and Economics and MBA of University of
Manchester, member of ACCA. Financial planning& analysis manager; has worked for Greif Flexible Products & Service (China) as
accounting manager, UNSA (Hangzhou) Packaging Manufacturing Ltd. as financial manager.
3. Top management
Mr. Su Ming-Jui: General Manager, enterprise management master of National Chengchi University and bachelor of
electromechanical engineering of National Chiao Tung University. He has served successively as CEO of F&B Business Division of
Ting Hsin International Group, president of YongHe King and executive deputy president of Tesco Supermarket (China).
Mr. Xu Bo: CFO, graduated from Central University of Finance and Economics; member of CICPA and ACCA; previously
worked successively as the senior auditing manager of Shenzhen Zhonghua Certified Public Accountants, CFO of Yue Sai Kan
Cosmetics Limited, CFO of Molex Interconnect (Shanghai) Co., Ltd, CFO of Microsoft China.
Mr. Ye Jide: Secretary of Board of Directors, vice president, and manager of securities department, CEIBS EMBA. Independent
director of Energy Explorer Electric Power Co., Ltd. since May, 2015, has worked successively the chief of equipment sector, office
head and assistant of general manager of the Company.
Post information in shareholders’ companies
√ Applicable □ Not-applicable
Name Shareholding
company
Post in the shareholding
company
Commencement
date of term of
office
Expiry date of
term of office
Payment or
allowance from the
shareholding
company
Thierry de LA TOUR
D’ARTAISE SEB Group Chairman & CEO May 01, 2000 Yes
Philippe SUMEIRE SEB Group
Vice President Legal
Affairs of Groupe SEB
and Board Secretary
December 10,
2001 Yes
Harry TOURET SEB Group Senior Executive VP of
HR
September 01,
2002 Yes
Nathalie LOMON SEB Group Chief Financial Officer September 30,
2019 Yes
Stanislas de GRAMONT SEB Group Chief Operating Officer
(COO)
December 03,
2018 Yes
Tai Wai Chung SEB Group Senior Executive VP of
Asia Continental Division October 01, 2017 Yes
Post information in other companies
√ Applicable □ Not-applicable
Annual Report 2019 of Zhejiang Supor Co., Ltd.
65
Name Name of other unit Post in the other
companies
Commencemen
t date of term of
office
Expiry date of
term of office
Payment or
allowance from
other companies
Su Xianze Supor Group
Board chairman
and general
manager
March 08, 2018 Yes
Su Xianze
Hangzhou Ruifeng Equity Investment
Management Co., Ld. (limited
partnership)
Executive partner November 17,
2015 No
Su Xianze Supor Investment Co., Ltd. Executive
director
February 26,
2019 No
Su Xianze Hangzhou Supor Equity Investment
Co., Ltd.
Executive
director June 17, 2019 No
Su Xianze Zhejiang Supor Water Heater Co.,
Ltd. Board Chairman
November 15,
2019 No
Wang Baoqing Zhejiang Gongshang University Professor July 30, 1996 Yes
Wang Baoqing ZHEFU Holding Group Independent
director March 17, 2017 March 16, 2020 Yes
Wang Baoqing Hangzhou Advance Gearbox Group
Co., Ltd.
Independent
director
September 07,
2017
September 06,
2019 Yes
Hervé
MACHENAUD
Hongma Consulting Services
(Beijing) Co., Ltd. President
January 01,
2017 Yes
Jean-Michel
PIVETEAU
Beijing Representative Office of
Bozhi Transition Partners, France
Chief
representative
January 01,
2004 Yes
Ye Jide Energy Explorer Electric Power Co.,
Ltd.
Independent
director May 25, 2018 May 24, 2021 No
Punishment of securities regulatory commission on directors, supervisors and senior management staffs of the Company at present or
leaving in the reporting period
□ Applicable √ Not-applicable
IV. Remuneration for Directors, Supervisors and Senior Management Staffs
Decision-making procedures, determination basis of remuneration and actual payment for directors, supervisors and senior
management staffs
Decision-making
procedures of
remuneration for directors,
supervisors and senior
management staffs
The remuneration for directors, supervisors and top managers of the Company shall be in strict
compliance with the Rules of Procedures for the Board of Directors and the Rules of Procedure of the
Shareholders Meeting, as well as the regulations of the Company’s Articles of Association and the
Company Law.
Determination basis of The directors, supervisors and senior management staffs of Company are paid according to their
Annual Report 2019 of Zhejiang Supor Co., Ltd.
66
remuneration for directors,
supervisors and senior
management staffs
positions and corresponding responsibilities and the Company’s remuneration system, with an annual
bonus based on the performance evaluated.
Remuneration for Directors, Supervisors and Senior Management Staffs in the Reporting Period
Unit: CNY10,000
Name Position Gender Age Position
status
Remuneration
receivable from
the Company
Remuneration
receivable from
shareholding
company
Thierry de LA TOUR D’ARTAISE Board Chairman Male 65 On-service
Harry TOURET Director Male 65 On-service
Vincent LEONARD Director Male 59 Retiremen
t
Stanislas de GRAMONT Director Male 55 On-service
Nathalie LOMON Director Female 49 On-service
Su Xianze Director Male 52 On-service
Tai Wai Chung Director Male 60 On-service
Wang Baoqing Independent director Male 56 On-service 15.00 No
Frederic BERAHA Independent director Male 69 Retiremen
t 3.75 No
Xiaoqing PELLEMELE Independent director Female 63 Retiremen
t 3.75 No
Hervé MACHENAUD Independent director Male 73 On-service 11.25 No
Jean-Michel PIVETEAU Independent director Male 73 On-service 11.25 No
Philippe SUMEIRE Chairman of Board of
Supervisors Male 60 On-service
Zhang Junfa Supervisor Male 43 On-service 40.20 No
Lu Lanhua Supervisor Female 42 On-service 69.77 No
Su Ming-Jui General Manager Male 52 On-service 776.62 No
Xu Bo Chief Financial Officer Male 52 On-service 260.84 No
Ye Jide Vice General Manager,
secretary of the board Male 44 On-service 93.65 No
Total -- -- -- -- 1,286.08 --
Equity incentives for directors, supervisors and senior management staffs in the reporting period
√ Applicable □ Not-applicable
Unit: share
Annual Report 2019 of Zhejiang Supor Co., Ltd.
67
Name Position
Shares
which can
be
exercised
in the
reporting
period
Shares
exercised
in the
reporting
period
Exercise
price of
exercised
shares in
the
reporting
period
(RMB/shar
e)
Market
price at the
end of
reporting
period
(RMB/shar
e)
Restricted
stock held
at the
beginning
of period
Shares
unlocked
in current
period
Restricted
stock
newly
granted in
the
reporting
period
Granting
price of
restricted
stock
(RMB/shar
e)
Restricted
stock held
at the end
of period
Su
Ming-Jui
General
Manager 0 0 0 0 260,000 78,000 182,000
Xu Bo
Chief
Financial
Officer
0 0 0 0 175,000 51,000 124,000
Ye Jide
Vice
General
Manager,
secretary
of the
board
0 0 0 0 70,000 21,000 49,000
Total -- 0 0 -- -- 505,000 150,000 0 -- 355,000
Remarks (if any)
General Manager Mr. Su Ming-Jui: Under the 2017 stock incentive plan, the 26,000 Restricted Stock that
can be unlocked in the first unlock period was listed and circulated on January 3, 2019, and the 52,000
Restricted Stock that can be unlocked in the second unlock period was listed and circulated on December
30, 2019.
Chief Financial Officer Mr. Xu Bo: Under the 2017 stock incentive plan, the 16,000 Restricted Stock that
can be unlocked in the first unlock period was listed and circulated on January 3, 2019, and the 32,000
shares of Restricted Stock in the second unlock period was listed and circulated on December 30, 2019, and
the 3,000 Reserved Restricted Stock that can be unlocked in the first unlock period was listed and
circulated on November 15, 2019.
Vice General Manager and Secretary of Board of Directors Mr. Ye Jide: Under the 2017 stock incentive
plan, the 7,000 Restricted Stock that can be unlocked in the first unlock period was listed and circulated on
January 3, 2019, and the 14,000 Restricted Stock that can be unlocked in the second unlock period was
listed and circulated on December 30, 2019.
V. Staffing Information
1. Number of Personnel, Professional and Education Conditions
Number of employees in parent company (person) 1,977
Number of employees in subsidiaries (person) 10,315
Annual Report 2019 of Zhejiang Supor Co., Ltd.
68
Total number of personnel (person) 12,292
Total number of personnel paid during current period (person) 12,292
Retired employees for whom the Company should cover
expenses (person) 0
Profession composition
Job description Qty. (person)
Production personnel 7,551
Sales personnel 1,652
Technician 2,028
Financial personnel 170
Administrative personnel 891
Total 12,292
Education
Education Qty. (person)
Postgraduate and above 121
Junior college or university 4,015
Technical secondary school or high school 3,328
Others 4,828
Total 12,292
2. Compensation and Benefit Policy
The Company adopts floating salary system for all employees. Salary that we provide to employees includes pre-tax basic salary
and performance salary in the form of currency; we also offer various non-monetary welfares such as training, internal development
and comfortable working environment.
We provide employees with competitive salary and welfare to keep a certain degree of competitiveness and absorb talents; while
in the Company, to stabilize those key employees, embody the Company’s value orientation, motivate self-improvement of employee
and create high performance.
3. Training Program
1) Supor is highly concerned with ability development of talents. We execute internally various trainings for specialized and
general knowledge and skills and leadership actively based on the requirements of talent echelon construction. We also pay much
attention to promotion, implementation and cultivation of the Company’s core values and enterprise culture; our core values have
become the benchmark for leading employees to exploit and innovate constantly. Meanwhile, Supor strengthens the summary and
inheritance of organizational experience based on the Company’s business value chain such as strategic markets, industrial
development, marketing and other professional areas.
2) In order to coordinate the Company’s development strategy and integrate management wisdoms from home and abroad and
the Company’s practical experience, we integrate internal and external resources, and organize various business departments and
Annual Report 2019 of Zhejiang Supor Co., Ltd.
69
responsible centers to execute different levels and grades of diversified and colorful trainings under the leadership of Supor
university; where necessary, we will go out for trans-border learning. The all-round, multi-level and multi-channel talent
development system enables our comprehensive quality and working ability to continuously meet the needs of the Company to
expand its businesses.
3) According to justice and fairness principle, we provide employees with targeted training opportunity based on employees’
assessments, individual career development expectations and actual work demands; we also provide instructor and tutor resources
mainly from internal management to employees to improve the competence and speed up the growth of employees and practice our
talent building and development policies.
4. Labor Outsourcing
□ Applicable √ Not-applicable
Annual Report 2019 of Zhejiang Supor Co., Ltd.
70
SECTION X CORPORATION GOVERNANCE
I. Basic Situation
In the reporting period, the Company further standardized the operation of the Company and improved the governance by
continuously building up and strengthening the corporate governance system, improving the internal control and management system,
and deepening the governing process strictly in accordance with the Company Law, the Securities Law and the Rules on the
Corporate Governance of Listed Companies, Stocks Listing Rules of Shenzhen Stock Exchange and the Guidelines for Standardized
Operation of Listed Companies on the Small and Medium-sized Enterprise Board of Shenzhen Stock Exchange as well as other
regulations of CSRC. By the end of the reporting period, the actual governance of the Company was basically in compliance with the
relevant regulations of corporate governance of listed companies issued by the CSRC and Shenzhen Stock Exchange, and with the
rules of established systems of the Company. No administrative regulation measures were taken by regulatory department upon the
Company.
(i) Relating to Shareholders and the General Meeting of Shareholders
The Company has convened and held the General Meetings of Shareholders strictly according to the Rules for the General
Meetings of Shareholders of Listed Companies, Rules of Procedures of Shareholders Meeting, and other rules and requirements, and
ensured the legality and validity of the convening. According to the Implementing Rules for the Online Voting at the Shareholders’
Assembly of Listed Companies of Shenzhen Stock Exchange, the Company clearly defined the specific process of online voting and
completely implemented online voting of general meeting of shareholders, in order to involve medium and small investors in the
online voting more effectively, and guarantee the legitimate rights and interests of all shareholders, especially of the minority
shareholders.
During reporting period, four general meetings of shareholders were held. The convening and holding procedures, qualifications
of attended persons, voting procedures, voting results and resolution contents of the meeting conformed to laws and regulations and
Articles of Association.
(ii) Relating to the Company and the Controlling Shareholder
In the reporting period, the Company was autonomous in business and operation, and kept independent of its controlling
shareholder in terms of assets, business, personnel, organization and finance. The Board of Directors, the Board of Supervisors and
other internal organizations operate independently. The Controlling Shareholder of the Company exercised its rights through the
General Meeting of Shareholders, and did not directly or indirectly intervene with the Company’s decision-making or business
activities. The connected transaction between the Company and its Controlling Shareholder was fair and reasonable; the
decision-making rules were in compliance with the relevant provisions; no fund occupation by the Controlling Shareholder existed.
(iii) Relating to Directors and the Board of Directors
The Company elected directors strictly according to the procedures stipulated in the Company Law and the Articles of
Association, and ensured the open, fair, equitable and independent appointment and election of directors, and the number and
composition of the Board of Directors follow relevant laws and regulations. Now the Company has three independent directors,
representing 1/3 of its directors. All directors have actively participated in the Company’s operation and decision-making activities,
performed their duties, attended the relevant training sessions organized by supervisory departments, pursuant to the Company Law,
the Guidelines for Standardized Operation of Listed Companies on the Small and Medium-sized Enterprise Board of Shenzhen Stock
Exchange, the Articles of Association and the Rules of Procedures for the Board of Directors. The Board of Directors consists of
Strategy Committee, Audit Committee and Payment and Appraisal Committee with independent directors fully exerting their
specialties, which further improves the working efficiency and decision-making level of the Board of Directors and plays significant
roles in the Company’s normative operation.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
71
During the reporting period, five meetings of Board of Directors were held totally. The convening and holding procedures,
qualifications of attended persons, voting procedures, voting results and resolution contents of the meeting conformed to laws and
regulations and Articles of Association.
(iv) Relating to Supervisors and the Board of Supervisors
The Company elected supervisors strictly according to the provisions under the Company Law and the Articles of Association.
The number of supervisors and composition of the Board of Supervisors met the requirement of relevant laws and regulations. All
supervisors have performed their duties as required by the Regulations of Procedure of the Board of Supervisors, effectively
supervised the legality and regulatory compliance of significant events, connected transactions, financial conditions, and duty
fulfillment of directors and top management staffs of the Company, and maintained the legitimate rights and interests of the
Company and its shareholders.
During the reporting period, five meetings of Board of Supervisors were held totally. The convening and holding procedures,
qualifications of attended persons, voting procedures, voting results and resolution contents of the meeting conformed to laws and
regulations and Articles of Association.
(v) Relating to performance appraisal and the incentive and restraining mechanism
The Company established and constantly improved the performance appraisal system and the incentive restraining mechanism
for supervisors, directors and top management staffs. The appointment and payment for directors, supervisors and top management
staffs of the Company are open, clear and in line with relevant laws and regulations. During the reporting period, the Company
unlocked the restricted stock allowed to be unlocked in the second unlocking period and the remaining restricted stock unlockable in
the first unlocking period which are granted to top managers who have restricted stocks in accordance with the 2017 Restricted Stock
Incentive Plan (Revised Draft) so as to achieve effective incentives for senior managers.
(vi) Relating to information disclosure and transparency
The Securities Department of the Company is responsible for information disclosure and investor’s relationship management.
Abiding by requirements of the CSRC and Shenzhen Stock Exchange and provisions on compilation of periodic reports in good faith,
the department, in association with the Financial Department of the Company, has timely and accurately compiled and submitted the
2018 Annual Report, First Quarterly Report 2019, Semiannual Report 2019 and Third Quarterly Report 2019, based on the strict
compliance with the non-disclosure rules before the disclosure of the reports.
The Securities Department of the Company disclosed, after review and adoption by the Board of Directors or the General
Meeting of Shareholders, the routine information (Board Meetings and Supervisors’ Meetings), fatal information (external
investments, connected transactions), and significant events truly, accurately, completely, timely and fairly. In the reporting period,
the Company has published 76 announcements on the basis of strict compliance with non-disclosure rules before the disclosure and
kept the files in order after the disclosure. Information disclosure of the Company in the reporting period was timely, true, accurate,
complete and fair, and has never been questioned by any related supervisory authorities. Besides, the Company will, in strict
accordance with the requirements of Management System on Investors’ Relationship, regulate the investor acceptance procedure and
disclose the activity record of investors’ relationship upon the completion of investor’s relationship activity timely; actively receive
the visiting and consulting shareholders and designate special person to be liable for replying the investors’ questions on the
interaction platform so as to ensure all shareholders of the Company, particularly the small and medium-sized investors can get
access to the Company’s information equality.
Is there any significant different between the actual situation of company governance and the regulations of corporate governance of
listed companies issued by CSRC?
□ Yes √ No
There is no significant difference between the actual situation of company governance and the regulations of corporate governance of
listed companies issued by CSRC.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
72
II. Independence between the Company and Controlling Shareholders Regarding Business,
Personnel, Assets, Organization and Finance
In the reporting period, the Company was totally separated from its controlling shareholder in terms of business, personnel, assets,
organization and finance. The production and business operation of the Company were stable; the organization was well structured
and functioning independently.
(i) Independent and complete assets structure
The Company had its production and business operation place independent from that of the controlling shareholder, and had
independent and complete assets structure, independent production system, auxiliary production system and supporting facilities,
land using right, housing ownership, as well as independent purchasing and selling systems.
(ii) Independence of personnel
In terms of personnel, labor, personnel and salary management, the Company was completely independent. Such top
management as the General Manager, Secretary of the Board of Directors and CFO did not hold any position concurrently in
controlling shareholder or other subsidiaries excepting director and supervisors, nor receive any remuneration from the controlling
shareholder or other subsidiaries.
(iii) Independence of finance
The Company has an independent financial department, has established independent accounting system and financial
management system, and makes financial decisions independently. It has opened independent bank accounts and pays taxes
independently.
(iv) Independence of organization
The Company has set up the organization independent from the controlling shareholder completely, and there exists no mixed
operation or management. It adopts a BU management system, and has departments directly under the Head Office and three BUs
(cookware, electrical appliance and kitchen appliances Bus) and high-end business modules. Neither controlling shareholder nor any
other company or individual has intervened with the organization structuring of the Company. No “superior and subordinate
relationship” exists between the controlling shareholder and its functional departments on the one hand, and the Company and its
functional departments on the other hand.
(v) Independence of business operation from shareholders or other related parties
The Company is mainly engaged in designing, producing and selling cookware, small domestic appliances, large kitchen
appliances and H&PC products, which are not produced by the controlling shareholder or any of its subsidiaries for the Chinese
market. The Company has an independent “procurement, production and sales” system. It operates business independently from
shareholders or any other related party.
III. Horizontal Competition
□ Applicable √ Not-applicable
IV. General Meeting of Shareholders and Interim General Meeting of Shareholders Held in
the Reporting Period
1. General Meeting of Shareholders in the Reporting Period
Session Meeting type
Proportion of
participated
investors
Convening date Date of disclosure Reference for disclosure
Annual Report 2019 of Zhejiang Supor Co., Ltd.
73
First Interim General
Meeting of Shareholders
2019
Interim General
Meeting of
Shareholders
4.85% January 03, 2019 January 04, 2019
References can be made to
the Announcement of
Resolution of the First
Interim General Meeting of
Shareholders 2019
(2019-001) disclosed on
http://www.cninfo.com.cn
The Annual General
Meeting of Shareholders for
2018 Fiscal Year
Annual General
Meeting of
Shareholders
4.68% April 19, 2019 April 20, 2019
References can be made to
the Announcement of
Resolution of the Annual
General Meeting of
Shareholders for 2018
Fiscal Year (2019-027)
disclosed on
http://www.cninfo.com.cn
Second Interim General
Meeting of Shareholders
2019
Interim General
Meeting of
Shareholders
9.21% September 23,
2019
September 24,
2019
References can be made to
the Announcement of
Resolution of the Second
Interim General Meeting of
Shareholders 2019
(2019-056) disclosed on
http://www.cninfo.com.cn
Third Interim General
Meeting of Shareholders
2019
Interim General
Meeting of
Shareholders
9.05% November 18,
2019
November 19,
2019
References can be made to
the Announcement of
Resolution of the Third
Interim General Meeting of
Shareholders 2019
(2019-072) disclosed on
http://www.cninfo.com.cn
2. Interim General Meeting held at the request of preferred stockholders with restored voting right
□ Applicable √ Not-applicable
V. Duty Performance of Independent Directors in the Reporting Period
1. Attendance of Board Meeting and Shareholders’ Meeting by independent directors
Attendance of board meeting and shareholders’ meeting
Annual Report 2019 of Zhejiang Supor Co., Ltd.
74
Name of
independent
directors:
Due
attendance
board meetings
(times)
Presence in
on-site board
meetings
(times)
Presence via
communicatio
n on board
meetings
(times)
Presence by
entrustment on
board
meetings(times
)
Absence on
board meetings
(times)
Absent for
twice
continuously
on board
meetings?
Attendance of
shareholders’
meeting
Wang Baoqing 5 2 3 0 0 No 4
Frederic
BERAHA 1 1 0 0 0 No 0
Xiaoqing
PELLEMELE 1 1 0 0 0 No 0
Hervé
MACHENAUD 4 1 3 0 0 No 0
Jean-Michel
PIVETEAU 4 1 3 0 0 No 0
Explanations of absence for twice continuously
2. Objections by independent directors to company issue
Were there any objections raised by independent directors to company issues?
□ Yes √ No
There was no objection raised by any independent director to company issues in the reporting period.
3. Other explanations of duty performance of independent director
Was there any advice raised by independent directors to company issues adopted by the Company?
√ Yes □ No
Explanations of adoption or non-adoption of the advice
During the reporting period, all independent directors of the Company were responsible and diligent. They paid close attention
to the reports about Company news by press and on the Internet and understood progress of the Company’s major matters timely.
They reviewed the information reports provided by the Company periodically, and gave relevant comments and advices. They
exerted their specialties fully, performed the duties as independent directors actively and maintained the legitimate rights and
interests of the Company and minority shareholders.
VI. Duty Performance of Special Committees under the Board of Directors
1. Strategy Committee
The Strategy Committee is composed of Mr. Su Xianze, Mr. Thierry de LA TOUR D’ARTAISE and Mr. Tai Wai Chung, with
Mr. Su Xianze serving as convener of the committee. Strategy Committee convened two meetings totally, on which all committee
members communicated with the top management of the Company regarding topics such as company operation, industrial
development trend, and future strategic plan of the Company, and researched and proposed suggestions for the long-term
development strategy and significant investment decisions of the Company.
2. Audit Committee
Annual Report 2019 of Zhejiang Supor Co., Ltd.
75
During the reporting period, the term of office of Mr. Frederic BERAHA, the former independent director, expired and Mr.
Vincent LEONARD, former director, resigned due to personal reasons, so Mr. Jean-Michel PIVETEAU was appointed as the new
member of the Committee. Audit Committee consist of Mr. Wang Baoqing and Mr. Jean-Michel PIVETEAU; of which, Mr. Wang
Baoqing is convener of the committee. During the reporting period, Audit Committee convened four meetings totally (two on-site
meetings), in order to supervise the establishment and implementation of internal audit plan, check and approve internal audit
execution and annual work report, and urge the audit of important items such as connected transactions, purchasing business, etc.
Besides, the Committee shall supervise preparatory work for compliance of internal control; pay close attention to implementation of
internal control, preparation and implementation of financial system and shared center process. Before the coming of certified
accountants for annual auditing and after the issuing of preliminary auditing opinions, the Audit Committee would communicate with
the accountants and urge the related certified accountants to timely submit the auditing report.
3. Compensation Committee
During the reporting period, the term of office of Ms. Xiaoqing PELLEMELE and Frederic BERAHA, former independent
directors, expired. The Company appointed Mr. Hervé MACHENAUD and Mr. Jean-Michel PIVETEAU as the members of the
Committee. Compensation Committee consists of Mr. Hervé MACHENAUD, Mr. Jean-Michel PIVETEAU and Mr. Harry TOURET;
of which, Mr. Hervé MACHENAUD is convener of the Committee. During the reporting period, Compensation Committee convened
two meetings totally, to review payment and appraisal for the Company’s directors, supervisors and top managers. In addition, the
committee checked whether to meet the unlocking condition of 2017 Restricted Stock Incentive Plan for Restricted Stock in the
second unlocking period and the Reserved Restricted Stock in the first unlocking period and ratified list of incentive objects.
VII. Work of the Board of Supervisors
In the reporting period, did the Board of Supervisors find any risk about the Company?
□ Yes √ No
The Board of Supervisors held no objection to the issues supervised in the reporting period.
VIII. Appraisal of and Incentives for Top Management
The Company has established a perfect performance appraisal system and salary system for top management staff, which
directly connects the work performance of top management staffs with their salary. Based on the indicators of the KPI system
established at the beginning of 2018, the Company has conducted the year-end appraisal in January, 2020 of top management staffs
of their working abilities, duty performance and target fulfillment, meanwhile, distributed annual performance salary.
During the reporting period, the Company unlocked the Restricted Stock allowed to be unlocked in the second unlocking period
and the Reserved Restricted Stock unlockable in the first unlocking period which are granted to top management who have Restricted
Stock in accordance with the 2017 Restricted Stock Incentive Plan (Revised Draft). The Compensation Committee of the Board of
Directors, as the special committee under the Board of Directors, reviewed the appraisal result.
IX. Evaluation Report of Internal Control
1. Significant internal control defects of internal control found in the reporting period
□ Yes √ No
Annual Report 2019 of Zhejiang Supor Co., Ltd.
76
2. Self-evaluation report of internal control
Date of disclosure of full text of Evaluation
Report of Internal Control April 29, 2020
Reference for full text of Evaluation
Report of Internal Control
Reference can be made to Self-Evaluation Report on Internal Control 2019 published
in Securities Times, China Securities Journal, Securities Daily and
http://www.cninfo.com.cn.
The proportion of total unit assets involved
in evaluation scope in total assets of
financial statement
100.00%
The proportion of operating revenue
involved in evaluation scope in operating
revenue of financial statement
100.00%
Defect Identification Standard
Categories Financial report Non-financial report
Annual Report 2019 of Zhejiang Supor Co., Ltd.
77
Qualitative standard
1) Identification standard of significant
defects: fraud of directors, supervisors and
top management of the Company;
modification of financial statement having
been published; any material misstatement of
the current period financial statement found
by CPA but having not been found during
internal control; and invalid supervision by
the Audit Committee, the Board of
Supervisors and internal audit authority for
internal control. 2) Identification standard of
important defects: selection and application
of accounting policies violating accepted
accounting criteria; one or several defect(s)
on the control of closing financial statement,
and failure of reasonably guarantee the
prepared financial statement is true and
accurate; no check-and-balance system and
control measures preventing fraud
established. 3) General defects refer to other
internal control defects not constituting the
standards of significant defects and
important defects.
1) Identification standard of significant
defects: unscientific decision procedure
of the Company, such as significant
decision-making mistakes which cause
the M &A of significant enterprise
project to fail in reaching expected
objectives; violation of national laws and
regulations, such as heavy losses of
enterprise caused by non-conforming
products; significant adverse influence
existing in the production and operation
of enterprise caused by severe loss of
medium and senior management persons
and senior technicians; and lack of
system control or systematic invalidation
for important business. 2) Identification
standard of important defects: defects on
important business systems; failure of
rectification for important defects found
during internal control and internal
supervision; and severe loss of business
persons on key posts. 3) Identification
standard of general defects: defects on
general business systems; failure of
rectification for general defects found
during internal control and internal
supervision; and severe loss of business
persons on general posts.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
78
Quantitative standard
1) Identification standard of significant
defects: potential misstatement of total
profit≥5% of total profit; potential
misstatement of total operating revenue≥2%
of total operating revenue; and potential
misstatement of total assets≥2% of total
assets. 2) Identification standard of
important defects: 3% of total profit
≤potential misstatement of total profit<5% of
total profit; 1% of total operating revenue
≤potential misstatement of total operating
revenue ≤2% of total operating revenue; and
1% of total assets ≤potential misstatement of
total assets ≤2% of total assets. 3)
Identification standard of general defects:
potential misstatement of total profit<3% of
total profit; potential misstatement of total
operating revenue <1% of total operating
revenue; and potential misstatement of total
assets<1% of total assets.
1) Identification standard of significant
defects: direct property loss amount
taking above (including) 0.5% in total
assets, and causing significant adverse
influence on the Company. 2)
Identification standard of important
defects: direct property loss amount
taking above (including) 0.1% but no
more than 0.5% in total assets, and
causing no significant adverse influence
on the Company. 3) Identification
standard of general defects: direct
property loss amount taking below 0.1%
in total assets and causing no significant
adverse influence on the Company.
Qty. of significant defects in financial
statement (pcs) 0
Qty. of significant defects in non-financial
statement (pcs) 0
Qty. of important defects in financial
statement (pcs) 0
Qty. of important defects in non-financial
statement (pcs) 0
X. Audit Report or Authentication Report of Internal Control
Evaluation Report of Internal Control
Deliberations in the Evaluation Report of Internal Control
We think that Supor has maintained effective internal control related to financial statements in all significant aspects according to
the Basic Standards for Internal Control of Enterprises and related provisions on December 31, 2019
Disclosure of Evaluation Report of
Internal Control Disclosed
Date of disclosure of full text of
Evaluation Report of Internal
Control
April 29, 2020
Annual Report 2019 of Zhejiang Supor Co., Ltd.
79
Index of disclosure of full text of
Evaluation Report of Internal
Control
Reference can be made to the Evaluation Report on Internal Control 2019 published in
Securities Times, China Securities Journal, Securities Daily and http://www.cninfo.com.cn.
Opinion type of Evaluation Report
of Internal Control Standard opinions with no reservation
Significant defect in non-financial
statements No
Did the accounting firm issue the Evaluation Report of Internal Control with non-standard opinions
□ Yes √ No
Is the Evaluation Report of Internal Control issued by the accounting firm consistent with the opinions in self-evaluation report of the
board of directors
√ Yes □ No
Annual Report 2019 of Zhejiang Supor Co., Ltd.
80
SECTION XI COMPANY’S BONDS
Does the Company have company bonds that are issued publicly, listed in stock exchange, immature at the submission date of annual
report or cannot be cashed totally after maturity?
No
Annual Report 2019 of Zhejiang Supor Co., Ltd.
81
SECTION XII FINANCIAL REPORT
I. Audit report
Type of audit opinion Standard opinions with no reservation
Date of signature of audit report April 28th ,2020
Name of audit organization Union Power Certified Public Accountants (Special General
Partnership)
Audit report document No. ZHSZ No. [2020]010382
Name of certified accountants Li Wei, Li Huihui
Main Text of Audit Report
(i) Audit opinions
We audited the financial statements of Zhejiang Supor Co., Ltd. (hereinafter referred to as “the Company”), including the
Consolidated and Parent Company’s Balance Sheet as of December 31, 2019, Consolidated and Parent Company’s Profit Statement
2019, Consolidated and Parent Company’s Cash Flow Statement 2019, Consolidated and Parent Company’s Statement of Change in
Stockholder Equity 2019 and related Footnotes to Financial Statements 2019.
We think the attached financial statement was prepared according to the ASBE (Accounting Standards for Business Enterprises)
on all important aspects, and reflected fairly the consolidated and parent company’s financial status of Supor by December 31, 2019,
the consolidated and parent company’s business performance and cash flow of Supor in 2019.
(ii) Basis of forming audit opinions
We implemented our audit works strictly according to the stipulations of Auditing Standard of Chinese Certified Public
Accountants. The content of “Responsibility of Certified Public Accountant for Audit of Financial Statement” in the Audit Report
further describes our responsibility under these standards. According to the code of professional ethics of Chinese Certified Public
Accountants, we are independent of Supor, and we have fulfilled the other responsibilities on the aspects of professional ethics. We
believe the audit evidences acquired by us are sufficient and appropriate, and provide a basis for expressing our audit opinions.
(iii) Key Audit Items
The key audit items are from our professional judgment; from our perspective, the key audit items are most important to the
audit of financial statement. The key audit items will be audited under the background that the financial statement will be wholly
audited to form audit opinions; we do not express independent opinions on these items. We confirm that the following items are key
audit items to be discussed in the audit report.
1. Recognition of income
Key Audit Items Countermeasures
See the accounting policy described by “V. Critical
Accounting Policy and Accounting Estimate” (22 – Income) and
“VII. Annotations to Items in Consolidated Financial Statement”
(29 – Operating Income/Cost) in Footnotes to Financial
Statements.
Supor is specially engaged in the R&D, production and
distribution of kitchenware, stainless steel products, metalware,
1. Understand and evaluate the design and operation effectiveness
of key internal control related to the recognition of income made
by the company management;
2. Select sample to inspect sales contract, examine contractual
clause and condition related to risk and remuneration transfer of
commodity ownership right, evaluate whether the SUPOR
income recognition time point complies with the requirements of
Annual Report 2019 of Zhejiang Supor Co., Ltd.
82
small domestic appliances and cookware; its products are
cookware and small kitchen appliances.
Since the income is one of the key performance indicators,
and the equity incentive policy was launched by Supor in 2017,
which gave clear amount requirements for Supor’s domestic sales
income in following four years from 2017. The higher
performance stress increases the inherent risk that the company
management manipulates income recognition time point for the
purpose of achieving performance target or expectations; therefore
we identified the income recognition of Supor as the key audit
item.
accounting standards for business enterprises or not;
3. Perform analytical review procedures to identify abnormal
changes, including analysis by sales channel, customer analysis,
product analysis and monthly analysis.
4. Select sample of income transaction recorded in this year and
check relevant invoice, sales contract, shipping order and sign-off
information; carry out crossing check and evaluate relevant
income to confirm accounting policy of income recognition is
met.
5. Spot check original documents such as shipping order and
customs declaration form and trace to accounting record, to check
whether all sales meeting condition are recorded in account book.
6. Select sample of income transaction to be recorded before and
after the balance sheet date, check the outbound delivery order
and other supporting documents, evaluate whether the income
transaction is recorded within the appropriate accounting period
or not.
7. Check whether subsidiaries use SAP recognize the sales
income of this year is SAP automatic bookkeeping, and
whether there is manual book entry or not.
8. Send confirmation request to parts of customers oriented to
sales income of this year, to confirm sales amount of 2019 and
balance of accounts receivable as of December 31, 2019.
2. Inventory falling price reserves
Key Audit Items Countermeasures
See the accounting policy described by “V. Critical
Accounting Policy and Accounting Estimate” (11 – Inventory) and
“VII. Annotations to Items in Consolidated Financial Statement”
(7 – Inventory) in Footnotes to Financial Statements.
By December 31, 2019, the original value of inventory on the
consolidated financial statement of Supor was RMB
2,303,192,187.98, and the inventory falling price reserves were
RMB 55,579,287.98.
Due to the huge inventory amount, and the company
management made significant judgment when determining
inventory falling price reserves, we determine the inventory falling
price reserves as the key audit item.
1. Understand the management’s process about accruing process
of inventory falling price reserves and evaluate its key internal
control;
2. Supervise the inventory process and care about whether
defective or unsalable inventory is identified;
3. Recheck the turnover process of inventory according to the
receiving, delivery and storage statement of inventory, and
recalculate the depreciation of inventory according to the
accounting policy;
4. Evaluate assumptions and estimates on net realizable value
made by management layer based on the available market
information (such as e-commerce platforms including Tmall,
JD.com, Suning, and Gome).
5. Understand actual disposal in 2018 of provision for impairment
of inventories made at the beginning of this year and implement
analytical review for the change of the provision for impairment
of inventories.
3. Related party relationships and completeness of its transaction disclosure
Key Audit Items Countermeasures
Annual Report 2019 of Zhejiang Supor Co., Ltd.
83
See “XII. Related Party and Connected Transactions” of
Footnotes to Financial Statements.
By December 31, 2019, SEB Group held 81.19% stocks of
Supor indirectly via its wholly-owned subsidiary SEB
Internationale; it belongs to the absolute shareholding. Meanwhile
Supor and internal related party of SEB Group were involved in
different transaction categories of connected transaction with
significant amount, and there was the risk of failing to disclose all
relationships among related parties and connected transactions in
Footnotes to Financial Statements. Therefore, we cared about the
completeness of connected transaction disclosure by deeming it as
the key audit item.
1. Evaluate and test the internal control on the related-party
relationships and its transactions identified and disclosed by
Supor, such as company management makes double check on
related party list regularly, executes related party account
checking regularly, and follows up difference in account
statement.
2. Obtain the related party relationship list provided by company
management, execute the following procedures:
·Check and verify the information acquired from the related
party relationship list exported from the financial system and
from other open channels;
·Double-check significant sales contract, purchase contract and
other contracts, identify whether there is undisclosed related party
relationships;
3. Otain the related-party transaction accrual and balance
breakdown provided by company management, and execute the
following procedures:
·Check and verify them with the financial record;
·Make sample check on related-party transaction accrual and
balance’s account checking results;
·Make sample check on letters of conformation of related-party
transaction accrual and balance;
·Make sample check on the one whether related-party
transaction accrual matches with the contract.
4. Check and verify the aforesaid related-party relationship,
related-party transaction accrual and balance with the information
disclosed by financial statement, so as to assess whether the
disclosure is complete and accurate.
(iv) Other information
The company management of Supor is responsible for other information. Other information includes the information covered by
the Annual Report 2019, but excludes the financial statement and our audit report.
Our audit opinions on financial statement do not cover other information, and we do not express any authentication conclusions
on other information.
Integrated with our audit on financial statement, our responsibility is to read other information. In this process, we consider
whether the other information is significantly different from the information we will acquire from our audit or whether the other
information has significant error.
Based on the works we have already executed, if we confirm the other information has significant error, we should report the
fact. On this aspect, we do not need to report any items.
(v) Responsibility of company management and governance layer on financial statement
The company management of Supor (hereinafter referred to as the company management) is responsible for preparing financial
statement according to the stipulations of ASBE (Accounting Standards for Business Enterprises) to make it realize fair presentation,
designing, executing and maintaining the required internal control to keep the financial statement free of material misstatement
caused by fraudulent practice or error.
When preparing the financial statement, the company management is responsible for evaluating the sustainable operation ability
Annual Report 2019 of Zhejiang Supor Co., Ltd.
84
of Supor, disclosing the items related to sustainable operation (if any), and use going-concern assumption; unless otherwise that the
company management is planning to liquidate Supor, terminate its operation or have no other realistic choice.
The governance layer is responsible for supervising the financial statement process of Supor.
(vi) Responsibility of certified public accountant for financial statement audit
Our objective is to acquire rational guarantee for keeping the financial statement free of material misstatement caused by
fraudulent practice or error and providing the audit report containing audit opinions. The rational guarantee is a high-level guarantee,
but it cannot guarantee that a materials misstatement can be found if it exists when we audit according to the auditing standard. The
misstatement may be caused by fraudulent practice or error. If a single or summarized rational expectation on misstatement may
cause certain influence when financial statement user makes economic decision in accordance with the financial statement, the
misstatement will be deemed as “significant”.
In the process of our audit according to the auditing standards, we used our professional judgment and retained our professional
skepticism. Meanwhile we executed the following works:
(1) Identify and evaluate material misstatement risk of financial statement caused by fraudulent practice or error, design and
implement audit procedures to cope with these risks, acquire sufficient and appropriate audit evidences, and use them as the basis for
expressing audit opinions. A fraudulent practice may involve in collusion, counterfeit, deliberate omission, false statement or may be
above the internal control, so the risk that material misstatement caused by fraudulent practice may not be found is higher than the
risk that material misstatement caused by error may not be found.
(2) Understand the internal control related to audit and design appropriate audit procedures.
(3) Evaluate the appropriateness of the accounting policy selected by company management and the rationality of the
accounting estimate and related disclosure made by the company management.
(4) Make conclusion for the appropriateness of the going-concern assumption used by company management. Meanwhile,
make conclusions for the one whether there is significant uncertainty in the issue or item which may result in substantive doubt on
the sustainable operation ability of Supor in accordance with the acquired audit evidences. If our conclusion thinks that there is
significant uncertainty, the auditing standard requires us to remind financial statement user in our audit report of paying attention to
the related disclosure in the financial statement. If the disclosure is not sufficient, we should present modified audit report. Our
conclusion is based on the information that is available by the audit report date. However future issue or circumstance may result in
unsustainable operation to Supor.
(5) Evaluate the overall presentation, structure and contents of financial statement, evaluate whether financial statement
presents related transactions and items fairly.
(6) Acquire sufficient and appropriate audit evidences for financial information of entity activity or business activity of Supor,
express opinions on financial statement. We are responsible for guiding, supervising and executing the audit of the group. We bear
full responsibility for audit opinions.
We communicated audit scope, time schedule and significant audit finding and other issues with company governance layer,
including the internal control defect that is worthy of noting in the audit process.
We have provided declaration to the company governance layer that we have abided by the professional ethics requirements
related to independency, and have communicated with the company governance layer all relationships and other issues those are
thought to affect our independency, as well as the related precautionary measures (if any).
In the issue we communicated with the company governance layer, we determined which issues are most important to the
financial statement audit, so which constitutes the key audit items. We described these items in our audit report, unless otherwise
these items are prohibited to openly disclose by law and regulation, or under few circumstances, if according to an rational
expectation, when negative consequence of communicating an issue in the audit report may exceed its benefit on the aspect of public
benefit, we confirm that we will not communicate the issue in our audit report.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
85
UNION POWER CERTIFIED PUBLIC ACCOUNTANTS (SPECIAL GENERAL PARTNERSHIP) Chinese Certified Public
Accountant: Li Wei
(Project partner):
Chinese Certified Public Accountant: Li Huihui
Wuhan, China
April 28, 2020
II. Financial statement
Unit of statement in notes to financial statement: RMB Yuan
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co., Ltd.
Unit: Yuan
Item December 31, 2019 December 31, 2018
Current assets:
Cash and bank balances 1,308,132,657.16 1,416,762,574.83
Settlement reserve
Loans to other banks
Transactional financial assets 1,264,563,042.79
Financial assets held at fair value through profit or loss 435,241,736.40
Derivative financial assets
Notes receivable 701,179,379.24
Accounts receivable 1,796,909,432.40 1,727,619,712.96
Financing of receivables 1,186,980,101.71
Advance payment 278,545,463.04 216,573,318.30
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 14,230,736.62 143,352,998.18
Where: interest receivable 600,649.75
Dividend receivable
Reverse-REPO financial assets
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86
Inventories 2,247,612,900.00 2,361,653,181.94
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 1,732,984,689.16 1,990,934,740.49
Total current assets 9,829,959,022.88 8,993,317,642.34
Non-current assets
Loans and advances granted
Debt investment
Available-for-sale financial assets
Other debt investments
Held-for-maturity investment
Long-term receivables
Long-term equity investment 61,917,730.62 60,646,438.46
Other equity instrument investments
Other non-current assets
Investment properties
Fixed assets 908,982,690.72 868,297,081.06
Construction in progress 215,167,399.12 40,562,136.79
Productive biological assets
Oil and gas assets
Use right assets
Intangible assets 465,546,894.17 397,272,432.11
Development expenditures
Goodwill
Long-term unamortized expenses 2,168,302.35 3,284,532.30
Deferred income tax assets 364,211,946.59 269,780,914.15
Other non-current assets
Total non-current assets 2,017,994,963.57 1,639,843,534.87
Total assets 11,847,953,986.45 10,633,161,177.21
Current liabilities:
Short-term borrowings
Central bank loan
Loans from others
Annual Report 2019 of Zhejiang Supor Co., Ltd.
87
Transactional financial liabilities
Financial liabilities held at fair value through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 3,011,464,656.36 2,953,812,235.17
Advances received 1,106,996,534.96 1,207,916,762.75
Contract liabilities
Proceeds from sale of repurchase financial assets
Deposit taken and interbank deposit
Proceeds from security transaction agency
Proceeds from security underwriting agency
Employee pay payable 300,734,908.98 289,033,981.74
Taxes payable 172,591,751.41 162,065,893.88
Other payables 93,696,839.73 95,355,792.24
Where: interest payable
Dividend payable
Handling fee and commission payable
Reinsurance accounts receivable
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities 290,585,764.00
Total current liabilities 4,976,070,455.44 4,708,184,665.78
Non-current liabilities
Reinsurance contract reserve
Long-term borrowings
Bonds payable
Where: preferred shares
Perpetual bond
Lease obligation
Long-term payables
Long-term employee pay payable 3,683,907.11 4,524,667.94
Estimated liabilities 21,150,000.00 10,150,000.00
Deferred income
Deferred income tax liabilities 2,436,047.01 3,234,750.00
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88
Other non-current liabilities
Total non-current liabilities 27,269,954.12 17,909,417.94
Total liabilities 5,003,340,409.56 4,726,094,083.72
Owner’s equity:
Share capital 821,119,910.00 821,243,960.00
Other equity instruments
Where: preferred shares
Perpetual bond
Capital reserves 194,633,350.10 139,529,530.66
Minus: treasury stock 4,342,472.56 3,868,950.00
Other comprehensive incomes -20,313,446.20 -24,490,354.80
Special reserves
Surplus reserve 401,648,181.64 401,648,181.64
General risk reserve
Undistributed profit 5,443,671,509.58 4,573,275,094.31
Total owner’s equity belonging to parent company 6,836,417,032.56 5,907,337,461.81
Minority equity 8,196,544.33 -270,368.32
Total owner’s equity 6,844,613,576.89 5,907,067,093.49
Total liabilities and owner’s equity 11,847,953,986.45 10,633,161,177.21
Legal representative: Thierry de LA TOUR D’RTAISE Person in charge of accounting: Xu Bo Person in charge of
accounting department: Xu Bo
2. Balance sheet of parent company
Unit: Yuan
Item December 31, 2019 December 31, 2018
Current assets:
Cash and bank balances 877,009,108.98 466,625,941.96
Transactional financial assets 702,525,313.39
Financial assets held at fair value through profit or loss 304,655,466.53
Derivative financial assets
Notes receivable 16,714,350.98
Accounts receivable 341,182,660.24 413,073,855.58
Financing of receivables 22,735,319.00
Advance payment 41,392,385.97 39,325,985.53
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89
Other receivables 110,807,092.72 110,207,407.00
Where: interest receivable 5,062.50
Dividend receivable
Inventories 146,997,997.90 187,734,497.22
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 1,597,853,406.49 1,610,112,552.03
Total current assets 3,840,503,284.69 3,148,450,056.83
Non-current assets
Debt investment
Available-for-sale financial assets
Other debt investments
Held-for-maturity investment
Long-term receivables
Long-term equity investment 2,975,731,261.81 2,787,966,574.79
Other equity instrument investments
Other non-current assets
Investment properties
Fixed assets 168,793,198.76 142,684,254.10
Construction in progress 9,128,658.64 27,526,362.07
Productive biological assets
Oil and gas assets
Use right assets
Intangible assets 88,321,489.84 88,247,653.35
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 19,821,224.48 13,529,855.34
Other non-current assets
Total non-current assets 3,261,795,833.53 3,059,954,699.65
Total assets 7,102,299,118.22 6,208,404,756.48
Current liabilities:
Short-term borrowings
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90
Transactional financial liabilities
Financial liabilities held at fair value through profit or loss
Derivative financial liabilities
Notes payable
Accounts payable 209,574,572.27 208,479,126.48
Advances received 6,231,654.41 5,035,058.53
Contract liabilities
Employee pay payable 61,804,868.33 60,815,316.85
Taxes payable 6,323,506.14 2,884,844.16
Other payables 3,852,130,178.87 3,063,662,415.83
Where: interest payable
Dividend payable
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 4,136,064,780.02 3,340,876,761.85
Non-current liabilities
Long-term borrowings
Bonds payable
Where: preferred shares
Perpetual bond
Lease obligation
Long-term payables
Long-term employee pay payable
Estimated liabilities
Deferred income
Deferred income tax liabilities 378,797.01
Other non-current liabilities
Total non-current liabilities 378,797.01
Total liabilities 4,136,443,577.03 3,340,876,761.85
Owner’s equity:
Share capital 821,119,910.00 821,243,960.00
Other equity instruments
Where: preferred shares
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91
Perpetual bond
Capital reserves 637,954,156.03 589,235,394.74
Minus: treasury stock 4,342,472.56 3,868,950.00
Other comprehensive incomes
Special reserves
Surplus reserve 410,621,980.00 410,621,980.00
Undistributed profit 1,100,501,967.72 1,050,295,609.89
Total owner’s equity 2,965,855,541.19 2,867,527,994.63
Total liabilities and owner’s equity 7,102,299,118.22 6,208,404,756.48
3. Consolidated profit statement
Unit: Yuan
Item 2019 2018
I. Total operating revenue 19,853,477,882.97 17,851,264,801.72
Where: operating revenue 19,853,477,882.97 17,851,264,801.72
Interest revenue
Premium earned
Revenue from handling charges and commission
II. Total operating cost 17,752,977,819.33 16,010,890,836.59
Where: operating cost 13,668,228,395.96 12,341,938,965.93
Interest expense
Expense for handling fee and commission
Surrender value
Net payments for insurance claims
Net amount of withdrawn reserve fund for insured liability
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges 123,738,246.51 113,764,536.95
Selling expenses 3,206,043,042.00 2,813,288,857.74
Administrative expenses 345,732,916.45 344,810,539.64
Research and development expenses 452,560,910.68 402,632,732.79
Financial expenses -43,325,692.27 -5,544,796.46
Where: interest expenses 1,045,657.32 2,474,506.93
Interest revenue 43,916,125.68 7,928,053.60
Annual Report 2019 of Zhejiang Supor Co., Ltd.
92
Plus: other incomes 166,638,678.35 111,289,110.59
Return on investment (“-” for loss) 67,253,304.83 86,896,061.23
Where: return on investment on associated enterprise and
cooperative enterprise 4,843,516.71 3,196,717.87
Income from termination of financial assets measured by
amortized cost
Exchange earning (“-” for loss)
Net exposure hedging gains (“-” for loss)
Gains on changes of fair value (“-” for loss) 4,563,042.79 -10,288,760.43
Credit impairment loss (“-” for loss) -2,439,857.31
Asset impairment loss (“-” for loss) -38,502,625.50 -46,008,075.99
Return on assets disposal (“-” for loss) -1,711,476.60 -327,730.99
III. Operating profit (“-” for loss) 2,296,301,130.20 1,981,934,569.54
Plus: non-operating revenue 4,570,807.72 11,144,521.49
Minus: non-operating expenditure 27,414,104.13 11,540,834.47
IV. Total profit (“-” for total loss) 2,273,457,833.79 1,981,538,256.56
Minus: income tax expenses 357,804,716.77 312,757,023.23
V. Net profit (“-” for net loss) 1,915,653,117.02 1,668,781,233.33
(I) By business continuity
1. Net profit under continuing operating (“-” for net loss) 1,915,653,117.02 1,668,781,233.33
2. Net profit under discontinuing operation (“-” for net loss)
(II) By ownership
1. Net profit belonging to the owners of parent company 1,919,914,191.25 1,669,873,440.00
2. Minority interest -4,261,074.23 -1,092,206.67
VI. After-tax net amount of other comprehensive income 4,157,206.81 5,001,974.93
After-tax net amount of other comprehensive income belonging to the
owners of parent company 4,176,908.60 5,003,409.47
(I) Other comprehensive incomes that can not be reclassified into profit
and loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive income that can not be transferred to
gain and loss under the equity law
3. Changes in the fair value of other equity instrument
investments
4. Changes in the fair value of the Company’s own credit risk
5. Others
Annual Report 2019 of Zhejiang Supor Co., Ltd.
93
(II) Other comprehensive incomes to be reclassified into the profit and
loss 4,176,908.60 5,003,409.47
1. Other comprehensive income that can be transferred to gain
and loss under the equity law
2. Changes in the fair value of other debt investments
3. Earnings from change in fair value of financial assets available
for sales
4. Amount of financial assets reclassified into other
comprehensive income
5. Held-to-maturity investments reclassified as gains and losses
on available-for-sale financial assets
6. Credit impairment reserve for other debt investments
7. Cash flow hedging reserve
8. Foreign currency translation difference in financial statements 4,176,908.60 5,003,409.47
9. Others
After-tax net profit of other comprehensive income belonging to minority
shareholder -19,701.79 -1,434.54
VII. Total comprehensive income 1,919,810,323.83 1,673,783,208.26
Total comprehensive income attributed to owners of parent company 1,924,091,099.85 1,674,876,849.47
Total comprehensive income attributed to minority shareholders -4,280,776.02 -1,093,641.21
VIII. Earnings per share:
(I) Basic earnings per share (EPS) 2.347 2.041
(II) Diluted earnings per share (EPS) 2.338 2.033
If the enterprise under the same control is merged, the net profit realized by the party to be merged before merger was 0 yuan, the net
profit realized by the party to be merged during the prior period was 0 yuan
Legal representative: Thierry de LA TOUR D’RTAISE Person in charge of accounting: Xu Bo Person in charge of
accounting department: Xu Bo
4. Profit statement of parent company
Unit: Yuan
Item 2019 2018
I. Operating income 2,256,358,529.23 2,322,036,922.30
Minus: operating costs 1,740,747,009.65 1,813,132,446.23
Taxes and surcharges 15,658,922.74 12,055,916.78
Selling expenses 53,699,115.64 51,287,097.65
Annual Report 2019 of Zhejiang Supor Co., Ltd.
94
Administrative expenses 118,031,797.32 128,906,934.41
Research and development expenses 78,464,653.41 80,521,812.73
Financial expenses 154,545.30 18,276,699.20
Where: interest expenses 34,103,130.03 21,925,468.96
Interest revenue 31,075,718.14 2,652,398.64
Plus: other incomes 23,042,341.42 35,871,916.69
Return on investment (“-” for loss) 874,434,061.96 778,016,473.70
Where: return on investment on associated enterprise and
cooperative enterprise 4,843,516.71 3,196,717.87
Income from termination of financial assets measured by
amortized cost (“-” for loss)
Net exposure hedging gains (“-” for loss)
Gains on changes of fair value (“-” for loss) 2,525,313.39 -2,478,573.28
Credit impairment loss (“-” for loss) 4,161,948.94
Asset impairment loss (“-” for loss) -2,635,356.56 -1,574,425.96
Return on assets disposal (“-” for loss) -894,884.90 -87,363.63
II. Operating profit (“-” for loss) 1,150,235,909.42 1,027,604,042.82
Plus: non-operating revenue 1,461,263.01 6,234,290.04
Minus: non-operating expenditure 4,685,259.15 4,148,016.01
III. Total profit (“-” for total loss) 1,147,011,913.28 1,029,690,316.85
Minus: income tax expenses 47,287,779.47 39,252,415.69
IV. Net profit (“-” for net loss) 1,099,724,133.81 990,437,901.16
(I) Net profit under continuing operating (“-” for net loss) 1,099,724,133.81 990,437,901.16
(II) Net profit under discontinuing operation (“-” for net loss)
V. After-tax net amount of other comprehensive income
(I) Other comprehensive incomes that can not be reclassified into profit
and loss
1. Remeasured amount of changes in defined benefit plan
2. Other comprehensive income that can not be transferred to
gain and loss under the equity law
3. Changes in the fair value of other equity instrument
investments
4. Changes in the fair value of the Company’s own credit risk
5. Others
(II) Other comprehensive incomes to be reclassified into the profit and
loss
Annual Report 2019 of Zhejiang Supor Co., Ltd.
95
1. Other comprehensive income that can be transferred to gain
and loss under the equity law
2. Changes in the fair value of other debt investments
3. Earnings from change in fair value of financial assets available
for sales
4. Amount of financial assets reclassified into other
comprehensive income
5. Held-to-maturity investments reclassified as gains and losses
on available-for-sale financial assets
6. Credit impairment reserve for other debt investments
7. Cash flow hedging reserve
8. Foreign currency translation difference in financial statements
9. Others
VI. Total comprehensive income 1,099,724,133.81 990,437,901.16
VII. Earnings per share:
(I) Basic earnings per share (EPS)
(II) Diluted earnings per share (EPS)
5. Consolidated cash flow statement:
Unit: Yuan
Item 2019 2018
I. Cash flows from business activities
Cash received from sales of goods or rendering of services 20,987,627,971.98 18,753,763,889.59
Net increase of client deposit and interbank deposit
Net increase of central bank loans
Net increase of loans from other financial institutions
Cash received from original insurance contract premium
Net cash received from reinsurance
Net increase of policy-holder deposit and investment
Cash receipts from interest, handling charges and commission
Net increase of loans from others
Net increment of repurchase capital
Net cash from security transaction agency
Tax refund received 253,301,218.86 197,071,052.71
Other cash receipts related to operating activities 307,686,528.82 137,853,941.46
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96
Sub-total of cash inflows from operating activities 21,548,615,719.66 19,088,688,883.76
Cash payments for purchasing goods and receiving services 15,394,115,893.50 13,288,113,877.56
Net increment of customer loans and advances
Net increase of central bank deposit and interbank deposit
Cash payment for insurance indemnities of original insurance contracts
Net increase of loans from others
Cash payment of interest, handling charges and commission
Cash payment of policy bonus
Cash paid to and for employees 1,570,784,787.25 1,499,672,639.49
Taxes paid 1,067,360,644.90 858,454,442.77
Other cash payments related to operating activities 1,783,413,416.89 1,428,789,179.10
Subtotal of cash outflows from operating activities 19,815,674,742.54 17,075,030,138.92
Net cash flows from operating activities 1,732,940,977.12 2,013,658,744.84
II. Cash flows from investing activities:
Cash received from return of investments
Cash received from investment income 39,216,159.25 89,713,558.92
Net cash received from disposal of fixed assets, intangible assets and
other long-term assets 12,920,951.95 3,558,267.04
Net cash received from disposal of subsidiaries and other business units
Other cash receipts related to operating activities 2,345,900,000.00 2,226,000,000.00
Subtotal of cash inflows from investing activities 2,398,037,111.20 2,319,271,825.96
Cash paid for acquiring fixed assets, intangible assets and other
long-term assets 454,911,537.10 202,286,032.36
Cash paid for investment
Net increase of pledge loans
Net cash paid for acquiring subsidiaries and other business units 274,000,000.00
Other cash payments related to investing activities 2,810,000,000.00 2,347,047,257.18
Sub-total of cash outflow from investment activity 3,264,911,537.10 2,823,333,289.54
Net cash flow from investment activities 866,874,425.90 -504,061,463.58
III. Cash flows from financing activities:
Cash received from investment by others 12,747,688.67
Where: cash received by subsidiaries from minority shareholder
investment 12,747,688.67
Cash received from obtaining borrowings
Other cash receipts related to financing activities
Annual Report 2019 of Zhejiang Supor Co., Ltd.
97
Sub-total of cash inflows from financing activities 12,747,688.67
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of
interest 1,049,517,775.98 968,565,192.80
Where: dividends or profits paid by subsidiaries to minority
shareholders
Other cash payments related to financing activities 1,438,172.56
Subtotal of cash outflows from financing activities 1,050,955,948.54 968,565,192.80
Net cash flows from financing activities -1,038,208,259.87 -968,565,192.80
IV. Impact of exchange rate changes on cash and cash equivalents 5,511,790.98 6,150,595.16
V. Net increase in cash and cash equivalents 166,629,917.67 547,182,683.62
Plus: balance of cash and cash equivalents at the beginning of the period 1,400,762,574.83 853,579,891.21
VI. Balance of cash and cash equivalents at the end of the period 1,234,132,657.16 1,400,762,574.83
6. Cash flow statement of parent company
Unit: Yuan
Item 2019 2018
I. Cash flows from business activities
Cash received from sales of goods or rendering of services 2,429,648,136.56 2,374,681,897.68
Tax refund received 109,045,458.11 66,502,468.37
Other cash receipts related to operating activities 55,918,407.47 37,795,851.76
Sub-total of cash inflows from operating activities 2,594,612,002.14 2,478,980,217.81
Cash payments for purchasing goods and receiving services 1,734,295,249.13 1,994,329,928.56
Cash paid to and for employees 231,915,759.38 198,652,967.64
Taxes paid 57,155,571.49 54,584,143.38
Other cash payments related to operating activities 132,493,746.46 141,432,418.97
Subtotal of cash outflows from operating activities 2,155,860,326.46 2,388,999,458.55
Net cash flows from operating activities 438,751,675.68 89,980,759.26
II. Cash flows from investing activities:
Cash received from return of investments
Cash received from investment income 844,615,269.45 1,179,628,881.79
Net cash received from disposal of fixed assets, intangible assets and
other long-term assets 935,216.08 1,491,610.75
Net cash received from disposal of subsidiaries and other business units
Other cash receipts related to operating activities 2,771,029,818.82 1,371,803,704.95
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98
Subtotal of cash inflows from investing activities 3,616,580,304.35 2,552,924,197.49
Cash paid for acquiring fixed assets, intangible assets and other
long-term assets 44,765,971.31 54,587,921.04
Cash paid for investment 1,899,900,000.00
Net cash paid for acquiring subsidiaries and other business units 170,201,756.95 394,000,000.00
Other cash payments related to investing activities 3,140,256,040.51 52,135,062.74
Sub-total of cash outflow from investment activity 3,355,223,768.77 2,400,622,983.78
Net cash flow from investment activities 261,356,535.58 152,301,213.71
III. Cash flows from financing activities:
Cash received from investment by others
Cash received from obtaining borrowings
Other cash receipts related to financing activities 790,824,882.07 890,566,342.94
Sub-total of cash inflows from financing activities 790,824,882.07 890,566,342.94
Cash paid for debt repayment
Cash paid for distribution of dividends or profits or for payment of
interest 1,083,620,905.99 990,490,661.76
Other cash payments related to financing activities
Subtotal of cash outflows from financing activities 1,083,620,905.99 990,490,661.76
Net cash flows from financing activities -292,796,023.92 -99,924,318.82
IV. Impact of exchange rate changes on cash and cash equivalents 3,070,979.68 1,297,479.01
V. Net increase in cash and cash equivalents 410,383,167.02 143,655,133.16
Plus: balance of cash and cash equivalents at the beginning of the period 466,625,941.96 322,970,808.80
VI. Balance of cash and cash equivalents at the end of the period 877,009,108.98 466,625,941.96
7. Statement of Changes in Consolidated Owners’ Equity
Amount of this period
Unit: Yuan
Item
2019
Equity attributable to parent company
Minori
ty
equity
Total
owner’
s
equity
Share
capita
l
Other equity
instruments Capital
reserve
s
Minus:
treasur
y stock
Other
compr
ehensi
ve
incom
es
Specia
l
reserve
s
Surplu
s
reserve
Genera
l risk
reserve
Undist
ributed
profit
Others Subtot
al
Prefe
rred
share
s
Perpe
tual
bond
Other
s
Annual Report 2019 of Zhejiang Supor Co., Ltd.
99
I. Balance at the
end of prior
year
821,2
43,96
0.00
139,52
9,530.
66
3,868,
950.00
-24,49
0,354.
80
401,64
8,181.
64
4,573,
275,09
4.31
5,907,
337,46
1.81
-270,3
68.32
5,907,
067,09
3.49
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Merger of
enterprises
under the same
control
Others
II. Balance at
the beginning of
current year
821,2
43,96
0.00
139,52
9,530.
66
3,868,
950.00
-24,49
0,354.
80
401,64
8,181.
64
4,573,
275,09
4.31
5,907,
337,46
1.81
-270,3
68.32
5,907,
067,09
3.49
III. Current
period increase
(or less:
decrease)
-124,
050.0
0
55,103
,819.4
4
473,52
2.56
4,176,
908.60
870,39
6,415.
27
929,07
9,570.
75
8,466,
912.65
937,54
6,483.
40
(i) Total of
comprehensive
incomes
4,176,
908.60
1,919,
914,19
1.25
1,924,
091,09
9.85
-4,280,
776.02
1,919,
810,32
3.83
(ii) Capital
invested and
reduced by the
owner
-124,
050.0
0
55,103
,819.4
4
-964,6
50.00
55,944
,419.4
4
12,747
,688.6
7
68,692
,108.1
1
1. Common
shares invested
by shareholders
2. Capital
invested by
other equity
instrument
holders
Annual Report 2019 of Zhejiang Supor Co., Ltd.
100
3. Amount of
share-based
payment
included in
equity
-124,
050.0
0
55,103
,819.4
4
-964,6
50.00
55,944
,419.4
4
55,944
,419.4
4
4. Others
12,747
,688.6
7
12,747
,688.6
7
(III) Profit
distribution
-1,049,
517,77
5.98
-1,049,
517,77
5.98
-1,049,
517,77
5.98
1. Appropriation
of surplus
reserve
2. Appropriation
of general risk
reserve
3. Appropriation
of profit to
owners
-1,049,
517,77
5.98
-1,049,
517,77
5.98
-1,049,
517,77
5.98
4. Others
(IV) Internal
carry-over
within equity
1. Transfer of
capital reserve
to capital
2. Transfer of
surplus reserve
to capital
3. Surplus
reserve to cover
losses
4. Earnings
retained after
carrying over
amount of
changes in
defined benefit
plan
Annual Report 2019 of Zhejiang Supor Co., Ltd.
101
5. Earnings
retained after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1. Appropriation
of current
period
2. Application
of current
period
(VI) Others 1,438,
172.56
-1,438,
172.56 -1,438,
172.56
IV. Balance at
the end of
current period
821,1
19,91
0.00
194,63
3,350.
10
4,342,
472.56
-20,31
3,446.
20
401,64
8,181.
64
5,443,
671,50
9.58
6,836,
417,03
2.56
8,196,
544.33
6,844,
613,57
6.89
Amount of prior period
Unit: Yuan
Item
Annual Report 2018
Equity attributable to parent company
Minorit
y equity
Total
owner’s
equity
Share
capita
l
Other equity
instruments Capital
reserve
s
Minus:
treasur
y stock
Other
compr
ehensi
ve
incom
es
Specia
l
reserve
s
Surplu
s
reserve
Genera
l risk
reserve
Undist
ributed
profit
Others Subtot
al
Prefe
rred
share
s
Perp
etual
bond
Other
s
I. Balance at
the end of prior
year
821,2
87,61
0.00
93,907
,646.3
7
21,945
,167.6
9
-29,49
3,764.
27
393,89
3,137.
71
3,940,
017,05
1.62
5,197,
666,51
3.74
823,272
.89
5,198,4
89,786.
63
Plus:
cumulative
changes of
accounting
policies
Annual Report 2019 of Zhejiang Supor Co., Ltd.
102
Error
correction of
prior period
Merger of
enterprises
under the same
control
168,04
9,265.
82
41,355
,573.6
0
209,40
4,839.
42
209,404
,839.42
Others
II. Balance at
the beginning
of current year
821,2
87,61
0.00
261,95
6,912.
19
21,945
,167.6
9
-29,49
3,764.
27
393,89
3,137.
71
3,981,
372,62
5.22
5,407,
071,35
3.16
823,272
.89
5,407,8
94,626.
05
III. Current
period increase
(or less:
decrease)
-43,6
50.00
-122,4
27,381
.53
-18,07
6,217.
69
5,003,
409.47
7,755,
043.93
591,90
2,469.
09
500,26
6,108.
65
-1,093,
641.21
499,172
,467.44
(i) Total of
comprehensive
incomes
5,003,
409.47
1,669,
873,44
0.00
1,674,
876,84
9.47
-1,093,
641.21
1,673,7
83,208.
26
(ii) Capital
invested and
reduced by the
owner
-43,6
50.00
45,621
,884.2
9
-18,07
6,217.
69
4,300,
000.00
67,954
,451.9
8
67,954,
451.98
1. Common
shares invested
by shareholders
2. Capital
invested by
other equity
instrument
holders
3. Amount of
share-based
payment
included in
equity
-43,6
50.00
45,621
,884.2
9
-18,07
6,217.
69
4,300,
000.00
67,954
,451.9
8
67,954,
451.98
4. Others
(III) Profit
distribution
7,755,
043.93
-976,3
20,236
.73
-968,5
65,192
.80
-968,56
5,192.8
0
Annual Report 2019 of Zhejiang Supor Co., Ltd.
103
1.
Appropriation
of surplus
reserve
7,755,
043.93 -7,755,
043.93
2.
Appropriation
of general risk
reserve
3.
Appropriation
of profit to
owners
-968,5
65,192
.80
-968,5
65,192
.80
-968,56
5,192.8
0
4. Others
(IV) Internal
carry-over
within equity
1. Transfer of
capital reserve
to capital
2. Transfer of
surplus reserve
to capital
3. Surplus
reserve to cover
losses
4. Earnings
retained after
carrying over
amount of
changes in
defined benefit
plan
5. Earnings
retained after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
Annual Report 2019 of Zhejiang Supor Co., Ltd.
104
1.
Appropriation
of current
period
2. Application
of current
period
(VI) Others
-168,0
49,265
.82
-105,9
50,734
.18
-274,0
00,000
.00
-274,00
0,000.0
0
IV. Balance at
the end of
current period
821,2
43,96
0.00
139,52
9,530.
66
3,868,
950.00
-24,49
0,354.
80
401,64
8,181.
64
4,573,
275,09
4.31
5,907,
337,46
1.81
-270,36
8.32
5,907,0
67,093.
49
8. Statement of Changes in Owners’ Equity of the Parent Company
Amount of this period
Unit: Yuan
Item
2019
Share
capital
Other equity
instruments Capital
reserves
Minus:
treasury
stock
Other
compreh
ensive
incomes
Special
reserves
Surplus
reserve
Undistr
ibuted
profit
Others
Total
owner’s
equity
Preferr
ed
shares
Perpet
ual
bond
Others
I. Balance at the
end of prior year
821,24
3,960.0
0
589,235,
394.74
3,868,95
0.00
410,621,
980.00
1,050,2
95,609.
89
2,867,527,
994.63
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
II. Balance at the
beginning of
current year
821,24
3,960.0
0
589,235,
394.74
3,868,95
0.00
410,621,
980.00
1,050,2
95,609.
89
2,867,527,
994.63
Annual Report 2019 of Zhejiang Supor Co., Ltd.
105
III. Current
period increase
(or less:
decrease)
-124,05
0.00
48,718,7
61.29
473,522.
56
50,206,
357.83
98,327,54
6.56
(i) Total of
comprehensive
incomes
1,099,7
24,133.
81
1,099,724,
133.81
(ii) Capital
invested and
reduced by the
owner
-124,05
0.00
48,718,7
61.29
-964,650
.00
49,559,36
1.29
1. Common
shares invested
by shareholders
2. Capital
invested by other
equity
instrument
holders
3. Amount of
share-based
payment
included in
equity
-124,05
0.00
48,718,7
61.29
-964,650
.00
49,559,36
1.29
4. Others
(III) Profit
distribution
-1,049,
517,77
5.98
-1,049,517
,775.98
1. Appropriation
of surplus
reserve
2. Appropriation
of profit to
owners
-1,049,
517,77
5.98
-1,049,517
,775.98
3. Others
(IV) Internal
carry-over
within equity
Annual Report 2019 of Zhejiang Supor Co., Ltd.
106
1. Transfer of
capital reserve to
capital
2. Transfer of
surplus reserve
to capital
3. Surplus
reserve to cover
losses
4. Earnings
retained after
carrying over
amount of
changes in
defined benefit
plan
5. Earnings
retained after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1. Appropriation
of current period
2. Application of
current period
(VI) Others 1,438,17
2.56
-1,438,172
.56
IV. Balance at
the end of
current period
821,11
9,910.0
0
637,954,
156.03
4,342,47
2.56
410,621,
980.00
1,100,5
01,967.
72
2,965,855,
541.19
Amount of prior period
Unit: Yuan
Item
Annual Report 2018
Share
capital
Other equity
instruments
Capital
reserves
Minus:
treasury
Other
compre
Special
reserves
Surplus
reserve
Undistrib
uted Others
Total
owner’s
Annual Report 2019 of Zhejiang Supor Co., Ltd.
107
Preferr
ed
shares
Perpet
ual
bond
Others
stock hensive
incomes
profit equity
I. Balance at the
end of prior
year
821,28
7,610.
00
608,956
,223.13
21,945,1
67.69
402,866
,936.07
1,031,877
,945.46 2,843,043,5
46.97
Plus:
cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
II. Balance at
the beginning
of current year
821,28
7,610.
00
608,956
,223.13
21,945,1
67.69
402,866
,936.07
1,031,877
,945.46 2,843,043,5
46.97
III. Current
period increase
(or less:
decrease)
-43,65
0.00
-19,720,
828.39
-18,076,
217.69
7,755,0
43.93
18,417,66
4.43 24,484,447.
66
(i) Total of
comprehensive
incomes
990,437,9
01.16
990,437,90
1.16
(ii) Capital
invested and
reduced by the
owner
-43,65
0.00
42,126,
442.99
-18,076,
217.69
4,300,000
.00 64,459,010.
68
1. Common
shares invested
by shareholders
2. Capital
invested by
other equity
instrument
holders
Annual Report 2019 of Zhejiang Supor Co., Ltd.
108
3. Amount of
share-based
payment
included in
equity
-43,65
0.00
42,126,
442.99
-18,076,
217.69
4,300,000
.00 64,459,010.
68
4. Others
(III) Profit
distribution
7,755,0
43.93
-976,320,
236.73 -968,565,19
2.80
1.
Appropriation
of surplus
reserve
7,755,0
43.93
-7,755,04
3.93
2.
Appropriation
of profit to
owners
-968,565,
192.80 -968,565,19
2.80
3. Others
(IV) Internal
carry-over
within equity
1. Transfer of
capital reserve
to capital
2. Transfer of
surplus reserve
to capital
3. Surplus
reserve to cover
losses
4. Earnings
retained after
carrying over
amount of
changes in
defined benefit
plan
Annual Report 2019 of Zhejiang Supor Co., Ltd.
109
5. Earnings
retained after
carrying over
other
comprehensive
incomes
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
(VI) Others -61,847,
271.38
-61,847,271
.38
IV. Balance at
the end of
current period
821,24
3,960.
00
589,235
,394.74
3,868,95
0.00
410,621
,980.00
1,050,295
,609.89 2,867,527,9
94.63
III. Company profile
Zhejiang Supor Co., Ltd. (by shares) (“the Company”) is a limited liability company (by shares) transformed on an integral
basis from Zhejiang Supor Cookware Co., Ltd. under the approval of Leading Group for Enterprise Listing of the People’s
Government of Zhejiang Province with No. ZSS [2000] 24 approval document. On November 10, 2000, the Company registered at
Zhejiang Administration for Industry and Commerce. Registered address: Yuhuan City, Zhejiang Province; head office address:
Hangzhou City, Zhejiang Province. The Company’s parent company is SEB INTERNATIONALE S.A.S whose final parent
company is SEB S.A. The Company has a corporate business license numbered 913300007046976861.
The Company and its subsidiaries (hereinafter referred to as “the Group”) are mainly specialized in the R & D, manufacturing
and sales of kitchen utensils, stainless steel products, daily hardware, small household appliance and cookware; the products include
cookware and small household appliances.
The financial statement was released after the approval of the Company’s the 16th meeting of the 6th board of directors on
April 28, 2020.
By December 31, 2019, there were altogether 20 subsidiaries included in the scope of consolidated financial statement. See
Note (IX) “Equity in Other Entities” for details. The consolidation scope of the group in the year increases by 3 companies,
decreases by 0 company. See Note VIII “Change on consolidation scope” for details.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
110
IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements of the group are prepared based on the assumption of continuing operation assumption and actual
transactions and items and in accordance with the Accounting Standard for Business Enterprises——Basic Standard (Released CZBL
No.33, Revised CZBL No.76), and 42 specific accounting standards, guidelines for the application of accounting standards for
business enterprises, interpretations to the accounting standards for business enterprises and other provisions released and revised on
and after February 15, 2006 (hereinafter referred to as accounting standards for business enterprises) and the disclosure provisions of
the Regulations of Corporate Information Disclosure and Preparation by Companies Publicly Issuing Securities No. 15 - General
Provisions on Financial Reporting (Revised in 2014) of the China Securities Regulatory Commission.
According to the relevant regulations of the accounting standards for business enterprises, the Group’s accounting is made on
accrual basis. Except for certain financial instruments, measurements in these financial statements are made on the basis of historical
cost. If an asset is impaired, corresponding impairment provision will be made in accordance with relevant regulations.
2. Going concern
The Company has the ability to continue operations for at least 12 months since the end of the reporting period, and there are no
major issues affecting the ability to continue operations.
V. Critical accounting policies and estimates
The group has made accounting policies and accounting estimates as to method for accruing bad debt provision for
receivables, method for calculating inventory value and accruing depreciation provision, depreciation of fixed assets and
amortization of intangible assets, recognition time point of income and other transactions and items based on the actual production
and operation features and the provisions of related accounting standards for business enterprises. For details, please refer to
descriptions of 9 “financial instruments”, 11 “Inventory” - (3), 14 “Fixed assets” - (2), 16 “Intangible assets” - (1), 22 “Income” of V
in the Footnotes.
1. Abidance of the statement of Standard for Enterprise Business
The financial statement prepared by the Company conforms to the requirements of Standard for Enterprise Business and has
reflected relevant information such as the financial conditions on December 31, 2019, operation results and cash flow in 2019 of the
Company and the Group on an authentic and intact basis. In addition, the financial statements of the Company and the Group
conform to the disclosure requirements of the Regulations of Corporate Information Disclosure and Preparation by Companies
Publicly Issuing Securities No. 15 - General Provisions on Financial Reporting revised by the China Securities Regulatory
Commission in 2014 and related financial statements and their footnotes.
2. Accounting period
The Group takes calendar year as the accounting year, i.e., from January 1 to December 31.
3. Operating cycle
The normal operating cycle means the period from the time when the enterprise purchases the assets used for processing to the
Annual Report 2019 of Zhejiang Supor Co., Ltd.
111
time of realizing cash or cash equivalents. The Group’s normal operating cycle lasts for 1 year. If it is shorter than 1 year, the assets
realized within 1 year upon the date of balance sheet or the liabilities that should be paid off within 1 year upon the date of balance
sheet shall be classified as the current assets or current liabilities.
4. Recording currency
RMB is used in the main economic environment in which the Company and its domestic subsidiaries operate and the Company
and its domestic subsidiaries use RMB as the recording currency. Recording currency for foreign subsidiaries of the Company is
determined as VND, SGD and IDR separately based on the currency in main economic environment in which they operate. The
Group uses RMB as the recording currency to prepare the financial statement.
5. Accounting treatment method for the enterprise merger under and not under the same control
(1) In case merger of enterprises under the same control happens within the reporting period of the Group, pooling of interest method
shall be employed to carry out accounting treatment. The assets and liabilities acquired by the combining party during enterprise
merger shall be measured on the merger date according to the book value set forth in consolidated financial statements of the final
controlling party. As to the difference between the book value of net assets acquired by combining party and the book value of
merger consideration paid by it (or total amount of the face value of shares issued), the capital reserve shall be adjusted
correspondingly; in case the capital reserve is insufficient for the offset, it’s required to adjust the retained earnings. Various related
direct expenses incurred by combining party for enterprise merger, including the audit fee, evaluation fee, legal service fee, etc. paid
for enterprise merger, shall be included in the current profits and losses upon such expenses are incurred. The bonds issued for
enterprise merger or service charge, commission, etc. paid for bearing other liabilities shall be included in initial measurement
amount of the bonds issued and other liabilities. Service charge, commission, etc. incurred for issuing equity securities during
enterprise merger shall be deducted from premium income of equity securities. In case the premium income is insufficient for the
offset, retained earnings shall be used for the offset. In case parent-subsidiary relationship is formed during the enterprise merger, it’s
required to prepare consolidated financial statements and execute the accounting policy on “consolidated financial statements”
formulated by the Group. The adjustment period of comparative data in consolidated financial statements shall not be earlier than the
time when the combining party or the combined party is under the control of final controlling party, subject to the later time.
(2) In case merger of enterprises under different controls happens within the reporting period of the Group, purchase method shall be
employed to carry out accounting treatment. It’s required to confirm merger cost respectively according to the following conditions:
① In case the enterprise merger is realized by one exchange transaction, the merger cost shall be the fair value of the assets paid,
liabilities incurred or assumed and equity securities issued for acquiring the control right of the purchased party at the purchase date.
② In case the enterprise merger is realized step by step through several exchange transactions, as to the equity of the purchased party
held before the purchase date, related accounting treatment shall be carried out respectively according to individual financial
statements and consolidated financial statements:
A. In individual financial statements, the sum of the book value of equity investment of the purchased party held originally and the
increased investment cost shall serve as initial investment cost checked by cost method; as to other comprehensive income checked
and recognized by equity method for equity investment held before the purchase date, when the investment is disposed, accounting
treatment shall be carried out by employing the same basis of disposing related assets or liabilities by the purchased party directly. As
to the equity investment held before the purchase date, accounting treatment shall be carried out according to related provisions of
Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of Financial Instruments and the accumulated
change in fair value included in other comprehensive income shall be transferred to the current profits and losses when it’s checked
by cost method.
B. In consolidated financial statements, the equity of the purchased party held before the purchase date shall be measured again
according to the fair value of the equity at the purchase date, and the difference between fair value and its book value shall be
Annual Report 2019 of Zhejiang Supor Co., Ltd.
112
included in the current investment income; in case the equity of the purchased party held before the purchase date involves in other
comprehensive income checked by equity method, other comprehensive income related to it shall be transferred to the current
investment income at the purchase date. The Group will disclose the fair value of the equity of the purchased party held before the
purchase date on the purchase date and the amount of related profits or losses incurred by re-measurement according to the fair value.
③ Audit fee, legal service fee, evaluation & consulting cost and other intermediary expenses and other related management cost
incurred for enterprise merger shall be included in the current profits and losses upon they’re incurred; transaction cost of equity
securities or debt securities issued as merger consideration shall be included in initial recognition amount of the equity securities or
debt securities. ④ When any provision on future event that may influence the merger cost is stipulated in merger contract or
agreement, in case it’s estimated that the future event may happen at the purchase date and the amount of the influence on merger
cost can be measured reliably, it shall be included in merger cost.
The Group shall measure the assets paid and liabilities incurred or assumed as the consideration of enterprise merger on the purchase
date shall be measured according to the fair value, and the difference between fair value and its book value shall be included in the
current profits and losses.
While distributing merger cost at the purchase date, the Group shall recognize various identifiable assets, liabilities and contingent
liabilities of the purchased party acquired by it according to related provisions. ① The amount of the merger cost larger than the fair
value of identifiable net assets of the purchased party acquired by it shall be recognized as goodwill. ② As to the amount of merger
cost smaller than the fair value of identifiable net assets of the purchased party acquired by it, it’s required to recheck the
measurement of fair value of various identifiable assets, liabilities and contingent liabilities of the purchased party acquired by it and
the merger cost. After the rechecking, in case the merger cost is still smaller than the fair value of identifiable net assets of the
purchased party acquired by it, the difference shall be included in the current profits and losses.
In case parent-subsidiary relationship is formed during the enterprise merger, parent company shall set a memorandum book to
record the fair value of various identifiable assets, liabilities and contingent liabilities of the subsidiary acquired in enterprise merger
on the purchase date. When consolidated financial statements are prepared, it’s required to adjust the financial statements of the
subsidiary on the basis of the fair value of various identifiable assets, liabilities and contingent liabilities confirmed at the purchase
date and execute according to accounting policy on “consolidated financial statements” formulated by the Group.
6. Preparation Method for Consolidated Financial Statements
(1) Consolidation scope
Consolidation scope of the consolidated financial statements shall be confirmed on the basis of control, including annual financial
statements of the Company and all subsidiaries as of December 31, 2018. Subsidiary refers to the entity controlled by the Company
(including the divisible part in enterprise and the invested unit, structural entity controlled by the Company, etc.). Control refers to
the power of the investor over the invested party and the investor can enjoy variable return through participating in related activities
of the invested party and has the ability of using its power over the invested party to influence the return amount.
(2) Preparation method for consolidated financial statements
The Company shall prepare consolidated financial statements on the basis of its own and subsidiary’s financial statements according
to other related data.
While preparing consolidated financial statements, the Company shall consider the whole enterprise Group as an accounting entity to
reflect overall financial condition, business performance and cash flow of enterprise Group according to recognition, measurement
and reporting requirements of related accounting standards for business enterprises and unified accounting policy.
When consolidated financial statements are prepared, in case the accounting policies or accounting periods employed by the
subsidiary and the Company are different, it’s required to make necessary adjustment on the subsidiary’s financial statements
according to the Company’s accounting policy and accounting period. As to the subsidiary acquired by the merger of enterprises
under different controls, it’s required to adjust its financial statements on the basis of fair value of identifiable net assets at the
Annual Report 2019 of Zhejiang Supor Co., Ltd.
113
purchase date.
(3) Reporting of minority interest and profits and losses
The share in owner's equity of the subsidiary that doesn’t belong to parent company shall serve as minority interest and set out as
“minority interest” under owner's equity in the consolidated balance sheet.
The share in the current net profit or loss of the subsidiary that belongs to minority interest shall be set out as “minority interest”
under net profit in the consolidated income statement.
(4) Treatment of excess deficit
In the consolidated financial statements, in case the current deficit shared by minority shareholders of the subsidiary has exceeded the
share enjoyed by minority shareholders in owner’s equity of the subsidiary at the beginning of the period, the balance shall still be
used to offset minority interest.
(5) Treatment of consolidated statements for the increase and decrease of subsidiaries in the current period
Within the reporting period, as to the subsidiary increased due to merger of enterprises under the same control, when the consolidated
balance sheet is prepared, it’s required to adjust the Opening balance of the consolidated balance sheet. As to the subsidiary increased
due to merger of enterprises under different controls, when the consolidated balance sheet is prepared, it’s unnecessary to adjust the
Opening balance of the consolidated balance sheet. In case the subsidiary is disposed within the reporting period, when the
consolidated balance sheet is prepared, it’s unnecessary to adjust the Opening balance of the consolidated balance sheet.
Within the reporting period, as to the subsidiary increased due to the merger of enterprises under the same control, the income,
expense and profit of the subsidiary from the beginning of the merger period to the end of the reporting period shall be incorporated
into the consolidated income statement, and the cash flow of the subsidiary from the beginning of the merger period to the end of the
reporting period shall be incorporated into the consolidated statement of cash flow. As to the subsidiary increased due to merger of
enterprises under different controls, the income, expense and profit of the subsidiary from the purchase date to the end of the
reporting period shall be incorporated into the consolidated income statement, and the cash flow of the subsidiary from purchase date
to the end of the reporting period shall be incorporated into the consolidated statement of cash flow. In case the subsidiary is disposed
within the reporting period, the income, expense and profit of the subsidiary from the beginning of the period to the disposal date
shall be incorporated into the consolidated income statement, and the cash flow of the subsidiary from the beginning of the period to
the disposal date shall be incorporated into the consolidated statement of cash flow.
In case of losing the control right on the original subsidiary due to disposing part of the equity investments or other reasons, the
residual equity investment after the disposal shall be measured again according to the fair value at the date when the control right is
lost. The balance between the sum of the consideration acquired by equity disposal and the fair value of residual equity and the share
of net assets of the original subsidiary that shall be enjoyed and is calculated continuously from the purchase date according to the
original shareholding ratio shall be included in the investment income of the current period when the control right is lost. Other
comprehensive income related to equity investment of the original subsidiary shall be transferred to investment income of the current
period when the control right is lost.
As to the difference between long-term equity investments newly acquired due to the purchase of minority interest and the share of
identifiable net assets of the subsidiary enjoyed and calculated according to the new shareholding ratio, and the difference between
the disposal proceedings acquired due to disposing part of the subsidiary’s equity investments in the condition of not losing the
control right and the share of net assets of the subsidiary that shall be enjoyed corresponding to the disposal of long-term equity
investments, it’s required to adjust the share premium in capital reserve in the consolidated balance sheet. In case the share premium
in capital reserve is insufficient for the offset, it’s required to adjust the retained earnings.
7. Determining Standards for Cash and Cash Equivalents
Cash and cash equivalents of the Group includes cash on hand and the deposit that can be used for making payment at any time
as well as investments that are held by the Group, have a short term (generally mature within 3 months since the purchase date) and
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strong liquidity, can be converted into the cash of known amount easily, and have small risks in value change.
8. Foreign Currency Business and Foreign Currency Statement Translation
Foreign currency transactions of the Group shall be translated into the recording currency according to the spot rate at the transaction
date.
(1) Treatment of exchange difference
At the balance sheet date, it’s required to treat foreign currency monetary items and foreign currency non-monetary items according
to the following provisions: as to foreign currency monetary items, it’s able to employ the spot rate at the balance sheet date for
translation. Exchange difference arising from different spot rates at the balance sheet date and during initial recognition or at the last
balance sheet date shall be included in the current profits and losses. As to foreign currency non-monetary items measured by
historical cost, it’s still required to employ the spot rate at the transaction date for translation and the recording currency amount shall
not be changed; as to foreign currency non-monetary items measured by fair value, it’s required to employ the spot rate at the fair
value confirmation date for translation, and the difference between the translated recording currency amount and the original
recording currency amount shall be treated as the change in fair value (including the change in exchange rate) and included in the
current profits and losses. Within the capitalized period, the exchange difference of special loan principal and interest in foreign
currency shall be capitalized and included in the cost of the assets complying with the conditions of capitalization.
(2) Translation of foreign currency financial statement
During the translation of financial statements for overseas operation, the Group shall observe the following provisions: items under
the assets and liabilities in balance sheet shall be translated according to the spot rate at the balance sheet date. As to the owner’s
equity, except for the item “undistributed profit”, other items shall be translated according to the spot rate at the occurrence date.
Items under income and expense in income statement shall be translated according to the spot rate at the transaction date. The
translation difference of foreign currency financial statements arising from above translation shall be recognized as other
comprehensive income. The translation of comparative financial statements shall also be handled according to above provisions.
9. Financial Instruments
When the Group becomes one party of financial instrument contract, it’s required to recognize financial assets or financial
liabilities.
(1) Classification, recognition and measurement of financial assets
Based on the business model for managing financial assets and the contracted cash flow features of financial assets, the Group
divides the financial assets into: financial assets measured by amortized cost, financial assets at fair value through other
comprehensive income and, financial assets at fair value through current profit or loss.
② Financial assets shall be measured by fair value during initial recognition. As to financial assets at fair value through profit
and loss, related transaction cost shall be included in the current profits and losses directly; as to other categories of financial assets,
related transaction cost shall be included in initial recognition amount. Accounts receivable or notes receivable that are from sale of
products or rendering of labors, and do not include or take into account major financing components are taken as initial recognition
amount by the Group based on the consideration amount that the Group is entitled to receive.
① Financial assets measured by amortized cost
The business model of the Group to manage financial assets measured by amortized cost is aimed at receiving contracted cash
flows; the contracted cash flow features of such financial assets are consistent with basic loan arrangements, that is, cash flows
generated at specific date are only payment of principal and interests for outstanding principal amount. Effective interest method is
used by the Group to carry out subsequent measurement of such financial asset according to the amortized cost, and the profits or
losses arising from amortization and impairment are included in the current profits and losses.
② Financial assets held at fair value through other comprehensive income
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The business model of the Group to manage such financial assets is aimed at receiving contracted cash flows as well as sales;
the contract cash flow features of such financial assets are consistent with basic loan arrangements. The Group measures such
financial assets at fair value with changes included in other comprehensive income, but impairment losses or gains, exchange gains
and losses, and interest income calculated based on effective interest method are included in the current profit and loss.
③ Financial assets held at fair value through profit or loss
The Group recognizes foregoing financial assets measured by amortized cost and that are not financial assets at fair value
through other comprehensive income as financial assets at fair value through current profit or loss. In addition, during initial
recognition, in order to eliminate or significantly reduce accounting mismatches, the Group designates part of the financial assets as
financial assets measured at fair value through current profits and losses As to such financial assets, subsequent measurement shall be
carried out by the Group based on fair value, and all change in fair value shall be included in the current profits and losses.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities are classified into financial liabilities at fair value through profit and loss and other financial liabilities
during initial recognition. As to financial liabilities at fair value through profit and loss, related transaction cost shall be included in
the current profits and losses directly; as to other financial liabilities, related transaction cost shall be included in initial recognition
amount.
① Financial liabilities held at fair value through profit or loss
Financial liabilities at fair value through profit and loss include tradable financial liabilities (including derivatives belonging to
financial liabilities) and financial liabilities that are designated to be measured at fair value with changes recorded into current
period profit or loss during initial recognition.
Tradable financial liabilities (including derivatives belonging to financial liabilities) are measured subsequently at fair value and
except for those related to hedging accounting, changes in fair value are included in current period profit or loss.
For financial liabilities measured at fair value through current profit and loss, changes in their fair value caused by changes in
the Group’s own credit risk are included in other comprehensive income, and when such liabilities are stopped to be recognized,
accumulated changes in their fair value caused by changes in the Group’s own credit risk that is included in other comprehensive
income are transferred to earnings retained. Remaining fair value changes are included in current profit or loss If the treatment of
impact of changes in credit risk of these financial liabilities in the above manner will cause or expand accounting mismatches in
profit or loss, the Group will include all gains or losses of such financial liabilities (including impact of changes in the Company’s
own credit risk) in the current profit and loss.
② Other financial liabilities
In addition to financial liabilities and financial guarantee contracts as a result of financial asset transfers that are not in line with
derecognition condition or continuous involvement in transferred financial asset, other financial liabilities are classified as financial
liabilities measured at amortized cost and measured subsequently at amortized cost, and gains or losses arising from derecognition or
amortization of such liabilities are included in the current profit and loss.
(3) Recognition basis and measurement method of the transfer of financial assets
If financial assets meet one of the following conditions, derecognition of such financial assets will be carried out: ① the
contractual right to receive cash flow from the financial assets is terminated; ② the financial assets have been transferred and
almost all the risks and rewards in the ownership of the financial assets are transferred to the transferee; ③ the financial assets have
been transferred and, although the Group has neither transferred nor retained almost all risks and rewards in the ownership of the
financial assets, it has waived its control over the financial assets.
If the Group neither transfers nor retains almost all the risks and rewards in the ownership of the financial assets and does not
relinquish control over the financial assets, the financial assets shall be recognized according to the degree of continuous involvement
of the financial assets transferred, and the relevant liabilities shall be recognized accordingly. Degree of continuous involvement of
the financial assets transferred is the risk level of the Group due to changes in value of such financial assets.
In case whole transfer of financial assets satisfies the derecognition condition, the difference between the sum of the book value
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of financial assets transferred and consideration received due to the transfer and the sum of changes in fair value original included in
other comprehensive income shall be included in current profit or loss.
In case part transfer of financial assets satisfies the derecognition condition, book value of the financial assets transferred shall
be amortized between the derecognition part and the part without derecognition according to their own fair value, and the difference
between the sum of the consideration received for the transfer and accumulated amount of the change in fair value to be amortized to
derecognition part and originally included in other comprehensive income, and the foregoing book value amortized shall be included
in the current profits or losses.
For financial assets sold with right of recourse, or to transfer financial assets by endorsement, the Group needs to determine
whether almost all risks and rewards related to ownership of such financial assets have been transferred. If almost all risks and
rewards related to the ownership of such financial assets are transferred to the transferred party, derecognition of such financial assets
should be conducted; derecognition of such financial assets should not be conducted if the risks and rewards related to the ownership
of such financial assets are reserved; if the risks and rewards related to the ownership of such financial assets are not transferred nor
reserved, it needs to determine whether the Company keeps its control over such assets and make accounting treatment based on
principles as described in the foregoing paragraphs.
(4) Derecognition of financial liabilities
In case the current obligations of financial liabilities (or part of the financial liabilities) have been terminated, the Group will
carry out derecognition of such financial liabilities or part of them. In case the Group (borrower) signs an agreement with the debtor
to replace the original financial liabilities by means of bearing new financial liabilities, and contract clauses related to the new
financial liabilities and original financial liabilities are different in essence, it’s required to carry out derecognition of original
financial liabilities and recognize the new financial liabilities simultaneously. If the Group substantially modifies the contract terms
of the original financial liability (or part of it), the original financial liability is derecognised and a new financial liability is
recognized in accordance with the revised terms.
In case derecognition is carried out for the whole or part of financial liabilities, the difference between their book value and the
consideration paid (including non-cash assets transferred out or liabilities assumed) shall be included by the Group in the current
profits and losses.
(5) Offset of financial assets and financial liabilities
In case the Group has the legal right of offsetting the financial assets and financial liabilities recognized and such legal right is
executable now, and the Group plans to carry out settlement by net amount or realize the financial assets and pay off the financial
liabilities simultaneously, the net amount after mutual offset of such financial assets and financial liabilities shall be set out in the
balance sheet. Otherwise, financial assets and financial liabilities shall be set out in the balance sheet respectively and will not be
offset mutually.
(6) Method of recognizing fair value of financial assets and financial liabilities
Fair value, refers to the price that market participant can obtain or needs to pay after selling an asset or transferring a liability,
among the orderly transactions made on the measurement date. Where there is an active market for financial instruments, the Group
determines their fair value based on quoted prices in the active market. Quoted prices in an active market refer to prices that are
easily available on a regular basis from exchanges, brokers, industry associations, pricing service agencies, etc., and represent the
prices of actual market transactions among fair transactions. Where there is not an active market for financial instruments, the Group
determines their fair value based on valuation techniques. Valuation techniques include reference to the prices in recent market
transactions between the parties who are familiar with the situation and willing to transact, reference to the current fair value of other
financial instruments that are substantially the same, discounted cash flow method, option pricing models, etc. During the valuation,
the Group adopts valuation techniques that are applicable under the current circumstances and supported by sufficient available data
and other information, chooses input values that are consistent with the characteristics of assets or liabilities considered by market
participants in the transaction of related assets or liabilities, and gives priority to the use of related observable input values as far as
possible. Unobserved input values may be used when relevant observable input values cannot be obtained or it is not feasible to
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obtain them.
(7) Equity instruments
An equity instrument refers to a contract that can prove the ownership of residual interest in assets after the Group deducts all
liabilities. The Group’s issuing (including refinancing), repurchase, sale or cancellation of equity instruments are treated as changes
in equity, and transaction costs related to equity transactions are deducted from equity. The Group does not determine changes in fair
value of equity instruments.
Distribution of dividends (including “interest” from instruments classified as equity instruments) from the equity instruments
during the existence of the Group is treated as profit distribution.
(8) Impairment of financial assets
The financial assets to be confirmed for impairment losses in the Group are those measured by amortized cost, including bills
receivable, accounts receivable and other receivables. Moreover, as for financial guarantee contract, it’s necessary to calculate and
withdraw impairment provision and recognize credit impairment losses pursuant to accounting policy set forth in this part.
1) Recognition method of impairment provision
The above items are accrued for impairment provision and credit impairment losses by the Group in accordance with applicable
expected credit loss measure methods (general or simplified) based on the expected credit loss.
Credit loss refers to the difference between all contractual cash flows discounted as per the original effective interest rate and
receivable from the contract and all cash flows expected to be received by the Group, namely, the present value of a shortage of cash.
Wherein, the purchased or underlying financial assets with impairment on credit of the Group shall be discounted as per effective
interest rate based on credit adjustment.
The general method for measuring expected credit loss is as follows, the Group evaluates whether credit risk of financial assets
has remarkably increased after initial recognition on each balance sheet date. In case of credit risk having remarkably increased after
initial recognition, the Group will measure provision for loss as per the amount equivalent to expected credit loss in the whole period
of existence; In case of credit risk failing to remarkably increase after initial recognition, the Group will measure provision for loss as
per the amount equivalent to expected credit loss in the next 12 months. At the time of evaluating expected credit loss, the Group
considers all reasonable and well-founded information, including forward-looking information.
For the financial instrument with a lower credit risk on the balance sheet date, the Group assumes that its credit risks have not
increased significantly since the initial recognition, and measures the loss provisions according to the expected credit losses of the
future 12 months.
2) Standard for judging whether credit risk has remarkably increased after initial recognition.
In case that probability of default of one financial asset confirmed on the balance sheet date in the expected period of existence
is obviously higher than that confirmed at the moment of initial recognition in the expected period of existence, it means credit risk
of such financial asset remarkably increases. The changes of default risk within the next 12 months are adopted by the Group other
than special cases as reasonable estimate in the entire duration, ensuring whether the credit risk has increased significantly since the
initial recognition.
3) Combinatorial method of appraising future credit risk based on combination
the Group appraises the credit risk of the financial asset item of significantly different credit risks, such as: receivables disputed
with the opposite side or involving litigation or arbitration; there have been obvious signs showing that the debtor possibly is not able
to perform the repayment obligations of receivable amounts, etc.
Except financial assets of individual credit risk assessment, the Group divides financial assets into different groups based on the
common risk characteristics and appraises credit risks based on combination.
4) Accountant arrangement method of financial assets impairment
The expected credit losses of all kinds of financial assets are calculated by the Group at the end of the duration. If the estimated
credit loss is greater than the carrying amount of the current impairment provision, the difference is recognized as impairment loss; If
not, it is recognized as impairment profits.
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5) Test method of credit losses of all kinds of financial assets
① Notes receivable
The Group measures loss preparation for notes receivable based on the amount equivalent to predicted credit loss in the whole
period of existence. Notes receivable are divided into different portfolios based on their credit risk characteristics.
Item Basis for determination of portfolio
Bank acceptance Acceptor is a bank with less credit risk
② Accounts receivable
For account receivable not containing significant financing part, the Group measures its loss provisions based on the amount of
expected credit losses during the entire duration.
For account receivable containing significant financing part, the Group always measures its loss provisions based on the amount
of expected credit losses during the entire duration.
The other accounts receivables other than individual credit risk assessment are divided into different combinations based on
their credit risk characteristics:
Item Basis for determination of portfolio
Portfolio 1: age portfolio Aging of receivables is used as the credit risk feature for this portfolio.
Portfolio 2: low-risk portfolio The portfolio includes very low-risk amounts such as the payment of export third-party
goods.
Portfolio 3: merged related parties
portfolio
This portfolio includes current amount between related parties within the consolidation scope
of amounts receivable.
③ Other receivables
The impairment loss is measured by the Group in accordance with the amount of expected credit loss equivalent to that within
the next 12 months or the entire duration based on whether the credit risk of other receivables has increased significantly since the
initial recognition. The other receivables other than individual credit risk assessment are divided into different combinations based on
their credit risk characteristics:
Item Basis for determination of portfolio
Portfolio 1: age portfolio Aging of receivables is used as the credit risk feature for this portfolio.
Portfolio 2: risk-free portfolio The portfolio consists of interests receivable, dividends receivable, receivables from
government departments, and other risk-free amounts.
Portfolio 3: merged related parties
portfolio
This portfolio includes current amount between related parties within the consolidation scope
of amounts receivable.
10.Financing of receivables
The bill receivable, classified to fair value measurement and changes included in other comprehensive earnings, is listed as
receivables financing with a term of less than one year (including one year) from the acquisition; That with a term of more than one
year from the acquisition is listed as other debt investment. For related accounting policies, please refer to V - 9 “Financial
instruments”.
11. Inventories
(1) Inventory classification
Inventory mainly includes raw materials, unfinished products, commodity inventory, low value consumables and packing
materials.
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(2) Valuation method for the acquisition and distribution of inventory
When inventories are acquired, they are priced at actual costs. Inventory costs include procurement costs, processing costs, and
other costs. When inventories are used and distributed, the price is calculated by the one-off weighted average method at the end of a
month.
(3) Method of recognizing net realizable value and accruing depreciation reserve of inventories
Net realizable value refers to the amount of the estimated selling price of inventories deducted by estimated costs to be incurred
upon completion, estimated selling expenses and related taxes in daily activities. The determination of realizable net value of the
inventory shall be based on the concrete evidence acquired and consider the purpose of holding inventory, and impacts of the events
after the balance sheet date.
At the balance sheet date, the inventory shall be measured according to the cost or realizable net value, subject to the lower one.
In case the cost is higher than realizable net value, inventory depreciation reserves shall be withdrawn. The inventory depreciation
reserve is withdrawn based on the difference between the cost of a single inventory item and its net realizable value.
After the inventory depreciation reserve is withdrawn, if factors that previously reduced the value of inventory disappear,
causing net realizable value of inventory to be higher than its book value, the original inventory depreciation reserves will be
transferred back and the amount transferred back is included in current profit and loss.
(4) Inventory system is perpetual inventory system.
(5) Amortization method for low-value consumables and packing materials
Low-value consumables shall be amortized by one-off amortization method during the requisition or amortize during the period
of use; packing materials shall be amortized by one-off amortization method during the requisition.
12. Available-for-sale assets
(1) Recognition standards for available-for-sale category
In case the Group mainly recovers the book value by selling (including non-monetary assets exchange of commercial essence, the
same below) rather than using a non-current asset or disposal group continuously, it will be classified as available-for-sale category.
Non-current asset or disposal group is classified as available-for-sale category and shall also satisfy the following conditions:
① According to the convention of selling such asset or disposal group in similar transactions, it can be sold immediately in the
current condition;
②The sale may happen extremely, namely, the Group has made a resolution on a sale plan and acquired the confirmed purchase
commitment, and the sale is predicted to be completed within 1 year. Those that can be sold only after getting the approval of related
authority or supervision department of the Group according to related provisions shall have got the approval. The confirmed purchase
commitment refers to purchase agreement signed by the Group and other party and with legal binding force. The agreement shall
contain the transaction price, time, harsh punishment for breach of contract and other important clauses, so that it’s of extremely
small possibility of great adjustment or revocation of the agreement.
As to non-current asset or disposal group acquired by the Group exclusively for resale, it will be classified as available-for-sale
category at the acquisition date if it satisfies the regulated condition that “the sale is predicted to be completed within 1 year” at the
acquisition date and may satisfy other classification conditions of available-for-sale category within a short term (generally 3
months).
Disposal group refers to a group of assets that will be disposed together as a whole by selling or other means in a transaction and the
liabilities directly related to these assets and transferred in the transaction. In case the asset group or asset group combination where
the disposal group belongs has amortized the goodwill acquired in enterprise merger according to Accounting Standard for Business
Enterprises No. 8—Impairment of Assets, the disposal group shall include the goodwill amortized to it.
(2) Accounting treatment method for available-for-sale category
As to non-current assets and disposal group classified as available-for-sale category, the Group shall carry out initial measurement or
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re-measurement according to the net amount of book value or fair value after subtracting the disposal cost, subject to the lower one.
In case the net amount of fair value after subtracting the disposal cost is lower than the original book value, the difference shall be
recognized as impairment loss of assets and included in the current profits and losses, and provision for impairment of
available-for-sale assets shall be withdrawn simultaneously; the amount of impairment loss of assets recognized for available-for-sale
disposal group shall be used to offset the book value of goodwill in the disposal group at first and then offset the book value of
various non-current assets applying to the measurement provisions on available-for-sale category in disposal group according to the
proportion of their book value. In case the net amount of the fair value of available-for-sale non-current assets after subtracting the
selling cost at the subsequent balance sheet date is increased, the amount written down previously shall be recovered and transferred
back within the amount of impairment loss of assets recognized after the assets are classified as available-for-sale category. The
amount transferred back shall be included in the current profits and losses. Impairment loss of assets recognized before the assets are
classified as available-for-sale category shall not be transferred back. In case the net amount of the fair value of available-for-sale
disposal group after subtracting the selling cost at the subsequent balance sheet date is increased, the amount written down previously
shall be recovered and transferred back within the amount of impairment loss of assets recognized for the non-current assets applying
to the measurement provisions on available-for-sale category after the assets are classified as available-for-sale category. The amount
transferred back shall be included in the current profits and losses. Book value of the goodwill that has been offset and impairment
loss of assets recognized before the non-current assets applying to the measurement provisions on available-for-sale category are
classified as available-for-sale category shall not be transferred back. As to the amount transferred back subsequently for impairment
loss of assets recognized for available-for-sale disposal group, its book value shall be increased according to the proportion of the
book value of various non-current assets applying to the measurement provisions on available-for-sale category in the disposal group
except the goodwill. Depreciation or amortization will not be withdrawn for available-for-sale non-current assets or non-current
assets in the disposal group, and the interest of liabilities in available-for-sale disposal group and other expenses shall be recognized
continuously.
Measurement method for available-for-sale category is inapplicable to deferred income tax assets, financial assets specified in
Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of Financial Instruments, investment real
estates and biological assets measured by fair value, contractual rights incurred in insurance contract and the assets incurred from
employee benefits, and they will be measured according to related criteria or corresponding accounting policies formulated by the
Group. In case the disposal group contains non-current assets applying to the measurement method for available-for-sale category,
the measurement method for available-for-sale category shall be applicable to the whole disposal group. The measurement of
liabilities in disposal group shall apply to related accounting standards.
When the non-current assets or disposal group can’t be classified as available-for-sale category continuously due to failing to satisfy
the classification conditions of available-for-sale category or non-current assets are removed from the available-for-sale disposal
group, the measurement shall be carried out according to the following two items, subject to the lower one: ① book value before the
assets are classified as available-for-sale category, namely, the amount after the adjustment is carried out according to the
depreciation, amortization or impairment, etc. that shall be recognized in the condition that the assets are supposed not to be
classified as available-for-sale category; ② recoverable amount.
13. Long-term equity investment
Long-term equity investments include equity investments in subsidiaries, joint ventures and associated enterprises.
(1) Initial measurement
The Group shall carry out initial measurement of long-term equity investments respectively according to the following two
conditions:
① As to long-term equity investments formed in enterprise merger, initial investment cost shall be confirmed according to the
following provisions:
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A. In the merger of enterprises under the same control, in case the combining party realizes merger consideration by making payment
in cash, transferring non-cash assets or bearing liabilities, the shares of book value of owner's equity of the combined party in
consolidated financial statements of the final controlling party at the merger date shall serve as the initial investment cost of
long-term equity investments. As to the difference between initial investment cost of long-term equity investments and the book
value of the cash paid, non-cash assets transferred and liabilities assumed, it’s required to adjust the capital reserve correspondingly.
In case the capital reserve is insufficient for the offset, it’s required to adjust the retained earnings. Various direct related expenses
incurred for enterprise merger, including the audit fee, evaluation fee, legal service fee, etc. paid for enterprise merger, shall be
included in the current profits and losses upon such expenses are incurred.
In case the combining party realizes merger consideration by issuing equity securities, the shares of book value of owner's equity of
the combined party in consolidated financial statements of the final controlling party at the merger date shall serve as the initial
investment cost of long-term equity investments. Total amount of the face value of shares issued shall serve as the capital stock. As
to the difference between initial investment cost of long-term equity investments and the total amount of face value of the shares
issued, it’s required to adjust the capital reserve correspondingly. In case the capital reserve is insufficient for the offset, it’s required
to adjust the retained earnings. Service charge, commission, etc. incurred by issuing equity securities in the merger shall be offset by
premium income of equity securities. In case the premium income is insufficient, retained earnings shall be used for such offset.
B. In the merger of enterprises under different controls, the Group shall confirm merger cost respectively according to the following
conditions:
a) In case the enterprise merger is realized by one exchange transaction, the merger cost shall be the fair value of the assets paid,
liabilities incurred or assumed and equity securities issued for acquiring the control right of the purchased party at the purchase date.
b) In case the enterprise merger is realized step by step through several exchange transactions, the sum of the book value of equity
investment of the purchased party held before the purchased date and the increased investment cost at the purchased date shall serve
as initial investment cost of the investment;
c) Audit fee, legal service fee, evaluation & consulting cost and other intermediary expenses and other related management cost
incurred for enterprise merger shall be included in the current profits and losses upon they’re incurred; transaction cost of equity
securities or debt securities issued as merger consideration shall be included in initial recognition amount of the equity securities or
debt securities.
d) When any provision on future event that may influence the merger cost is stipulated in merger contract or agreement, in case it’s
estimated that the future event may happen at the purchase date and the amount of the influence on merger cost can be measured
reliably, it shall be included in merger cost.
② Except the long-term equity investments formed in enterprise merger, initial investment cost of the long-term equity investments
acquired by other means shall be confirmed according to the following provisions:
A. As to long-term equity investments obtained by making payment in cash, the purchase price paid actually shall be initial
investment cost. The initial investment cost includes expenses directly related to the acquisition of long-term equity investments,
taxes and other necessary expenditures.
B. As to long-term equity investments obtained by issuing equity securities, fair value of the equity securities issued shall serve as
initial investment cost, but excluding cash dividends or profits that shall be charged from the invested unit and have been announced
but haven’t been distributed. Transaction cost incurred when equity instrument is issued or acquired can be directly attributed to
equity transaction and deducted from the equity.
C. As to long-term equity investments obtained by means of non-monetary assets exchange, the initial investment cost shall be
confirmed according to Accounting Standard for Business Enterprises No. 7—Exchange of Non-monetary Assets.
D. As to long-term equity investments obtained by means of debt restructuring, the initial investment cost shall be confirmed
according to Accounting Standard for Business Enterprises No. 12—Debt Restructurings.
③ No matter by which means the long-term equity investment is acquired, when the investment is acquired, cash dividends or profits
of the invested unit that is included in the consideration paid, shall be enjoyed and have been announced but haven’t been distributed
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shall be checked separately as accounts receivable, and shall not constitute initial investment cost for acquiring the long-term equity
investment.
(2) Subsequent measurement
Long-term equity investments that can realize control on the invested unit shall be checked by cost method in individual financial
statements, and long-term equity investments with common control or significant impacts on the invested unit shall be checked by
equity method.
① When cost method is employed for accounting, long-term equity investments shall be valued according to initial investment cost,
and the cost of long-term equity investments shall be adjusted when the investment is increased or recovered. Cash dividends or
profits announced and distributed by the invested unit shall be recognized as investment income of the current period.
② As to long-term equity investments checked by equity method, in case the initial investment cost is more than the shares of fair
value of identifiable net assets of the invested unit that shall be enjoyed during the investment, initial investment cost of the
long-term equity investments shall not be adjusted; in case the initial investment cost is less than the shares of fair value of
identifiable net assets of the invested unit that shall be enjoyed during the investment, the difference shall be included in the current
profits and losses and the cost of long-term equity investments shall be adjusted simultaneously.
After the long-term equity investment is acquired, it’s required to recognize the investment income and other comprehensive income
respectively according to net profit or loss realized by the invested unit that shall be enjoyed or shared and other comprehensive
income, and book value of the long-term equity investment shall be adjusted simultaneously. As to the part that shall be enjoyed and
calculated according to the profits or cash dividends announced and distributed by the invested unit, it’s required to reduce the book
value of long-term equity investment correspondingly. As to other changes in owner’s equity except for net profit or loss, other
comprehensive income and profit distribution, book value of the long-term equity investment shall be adjusted and included in the
owner’s equity. When the shares of net profit or loss of the invested unit that shall be enjoyed are recognized, it shall be based on fair
value of identifiable net assets of the invested unit when the investment is acquired and after the adjustment is made on net profit of
the invested unit. In case the accounting policy and accounting period employed by the invested unit are different from those
employed by the Group, financial statements of the invested unit shall be adjusted according to the Group’s accounting policy and
accounting period. Besides, investment income, other comprehensive income, etc. shall be recognized on this basis. Recognition of
net loss incurred by the invested unit shall be limited to writing down the book value of long-term equity investments and other
long-term equity constituting net investment in the invested unit in essence to zero, unless the Group is obliged to bear extra losses.
In case the net profit is realized by the invested unit later, after the Group makes up the unrecognized loss amount shared by the
income amount shared, it’s required to recover the recognition of income amount shared.
When the net profit or loss of the invested unit that shall be enjoyed or shared is calculated and recognized, the part that shall belong
to the Group according to the proportion and is incurred between the Group and associated enterprises and joint ventures without
internal transaction profit or loss shall be offset, and investment income shall be recognized on this basis. In case the part incurred
between the Group and the invested unit without internal transaction loss belongs to impairment loss of assets, it shall be recognized
by the full amount.
③When the Group disposes any long-term equity investment, the difference between its book value and the price acquired actually
shall be included in the current profits and losses. As to the long-term equity investment checked by equity method, when it’s
disposed, accounting treatment shall be carried out for the part included in other comprehensive income originally according to
corresponding proportion on the same basis for disposing related assets or liabilities directly by the invested unit.
④ In case the Group loses the control right but can implement common control or impose significant impacts for its shareholding
ratio is decreased due to capital increase of its subsidiary by other investor, in individual financial statements, the long-term equity
investment shall be checked by equity method from the original cost method. At first, the difference between the shares of the
increased net assets that are arising from the increase in capital and share of the original subsidiary and shall be enjoyed by the Group
and recognized according to the new shareholding ratio and the original book value of long-term equity investment corresponding to
the decrease part of shareholding ratio that shall be carried forward shall be included in the current profits and losses. Then carry out
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adjustment on the accounting by equity method carried out when the investment is acquired according to the new shareholding ratio.
(3) Basis for confirming common control and significant impacts on the invested unit
Common control refers to common control on a certain arrangement according to related provisions and related activities of the
arrangement can be decided only after the consent of the participant sharing the control right. Related activity refers to the activity
imposing significant impacts on the return of a certain arrangement. Significant impact refers to the investor’s power on participating
in the decision-making of financial and operating policies of the invested unit, but it can’t control the formulation of these policies or
control the formulation commonly with other party.
(4) Impairment test method and method for withdrawing the provision of impairment
Impairment test method and method for withdrawing the provision of impairment shall comply with the accounting policy of
“impairment of assets” formulated by the Group.
14. Fixed assets
(1) Recognition principles of fixed assets
Fixed assets of the Group refer to tangible assets held for producing commodities, providing labor service, leasing or operation
management with service life of more than 1 fiscal year.
1) When the fixed assets satisfy the following conditions simultaneously, initial measurement shall be carried out according to the
cost:
① economic benefits related to the fixed assets may flow into the enterprise;
② fixed assets cost can be measured reliably.
(2) Depreciation method
Subsequent expenditure related to the fixed assets, if complying with the regulated recognition conditions of fixed assets, shall be
included in fixed assets cost; if not complying with the regulated recognition conditions of fixed assets, shall be included in the
current profits and losses directly when they’re incurred.
Fixed assets depreciation method of the Group is straight-line depreciation method.
Categories Depreciation method Useful life (years) Estimated residual value
proportion Annual depreciation rate
Buildings and structures Straight-line method 20-30 3%-10% 3.00%-4.85%
General equipment Straight-line method 3-5 3%-10% 18.00%-32.33%
Special equipment Straight-line method 10 3%-10% 9.00%-9.70%
Transport facilities Straight-line method 4-10 3%-10% 9.00%-24.25%
(3) Fixed assets impairment
It will be executed in accordance with the “impairment of assets” policy developed by the Group.
15. Construction in progress
1. Valuation of construction in progress: Determine project cost according to the actual expenditure incurred. The cost of
construction in progress also includes capitalized borrowing costs and exchange gains or losses.
2. The Group transfers construction in progress into fixed assets when they reach a predetermined state of use. A fixed asset that
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has reached a predetermined state of use but has not undergone final accounts of completed project will be recognized as fixed
assets according to its appraised value and be depreciated; after the final accounts of completed project is handled, the
temporarily appraised value will be adjusted based on actual costs; however, the accrued depreciation amount will not to be
adjusted.
3. Impairment of construction in progress will be executed in accordance with the “impairment of assets” policy developed by the
Group.
16. Intangible assets
(1) Valuation method, service life and impairment test
Intangible assets of the Group refer to the identifiable non-monetary assets that have are owned or controlled by the Group and have
no physical form.
(1) Recognition of intangible assets
The Group confirms intangible assets when they meet both of the following conditions:
① Economic benefits related to the intangible asset may flow into the enterprise;
② Cost of the intangible asset can be measured reliably.
(2) Measurement of intangible assets
① Intangible assets of the Group is measured initially based on cost.
② Subsequent measurement of intangible assets
A. For an intangible asset with limited service life, its service life will be judged when it is obtained and straight-line method will be
adopted within its service life in the following period. Amortization amount will be included in relevant costs and cost accounting
according to benefited items.
The specific length is as shown below:
Items Amortization period (years)
Land use right 43-50
Application software 2-10
Right to use trademark 10
Intangible assets with undetermined service life will not be amortized.
At the end of each period, the service life of intangible assets with limited service life and the amortization method for them will be
rechecked. Changes of them will be regarded as changes of accounting estimate. In addition, the service life of intangible assets with
undetermined service life will be rechecked. If there is evidence manifesting that an intangible asset can bring economic benefits for
the enterprise within a foreseeable period, then its service life will be estimated and it will be amortized according to the amortization
policy for intangible assets with limited service life.
B. Intangible assets will write down according to the “impairment of assets” accounting policy developed by the Group.
(2) Accounting policy on internal research and development expenditures
Expenditures on the internal research and development items of the Group are divided into research expenditure and development
expenditure.
Research expenditure is included in current gains or losses when it occurs
Development expenditure that can meet the following conditions will be recognized as intangible assets, while those cannot meet will
be included in current gains or losses:
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① Complete the intangible asset so as to make the use or sale of it technically feasible;
② Have the intention to complete the intangible asset and use or sell it;
③ The way that an intangible asset generates economic benefits is to certify that the products produced with the intangible asset has
market or the intangible asset itself has market, or to certify its usability when it will be used internally;
④ There are enough technology, financial resources and other resources to support finishing the development of an intangible asset,
and it is capable of using or selling this intangible asset;
⑤ Expenditure within the development stage of this intangible asset can be measured reliably.
If it is unable to distinguish the research expenditure from development expenditure, both research and development expenditures
will be included in the current gains or losses.
17. Impairment of long-term assets
The following evidences indicate the possible impairment of assets:
(1) The market price of assets drops significantly at the current period and the drop is obviously higher than the drop estimated
according to the passage of time or normal use.
(2) The economic, technical or legal environment for the Group’s operation and the market of the Group’s assets changed or will
change significantly in the current period or in the recent period, and the Group will thus be adversely affected.
(3) The market rate or other marketing ROI have risen in the current period and therefore affect the discount rate that the enterprise
used to calculate the estimated present value of future cash flows, leading to significant decrease of the recoverable amount of assets.
(4) This is evidence certifying that assets are antiquated or their physical form is damaged.
(5) Assets have already been or will be left unused, stopped using or disposed in advance
(6) Internal reports of the Group certify that the economic performance of assets have already been lower or will be lower than the
expectation, for example, the net cash flows created by assets or operating profits (or losses) realized by the assets are far lower than
the expected amount, etc.
(7) Other signs showing that the assets might have depreciated.
The Group will judge all its assets, including long-term equity investments, fixed assets, project materials, construction in progress,
intangible assets (excluding those with undetermined service life), that are applicable to Accounting Standard for Business
Enterprises No. 8 - Impairment of Assets on the balance sheet date, and carry out impairment test – estimation of the recoverable
amount of them when there is an indication of impairment. The recoverable amount shall be determined as the net amount obtained
by the fair value of asset – disposal expense, or as the present value of the estimated future cash flow of asset, whichever is higher. If
the recoverable amount of asset is lower than its book value, then the book value will write off to the recoverable amount, and the
write-off will be recognized as asset impairment loss and included in the current gains or losses. At the same time, corresponding
provision for impairment will be accrued.
If there is an indication of the impairment of an asset, the Group usually estimates its recoverable amount based on single assets. If
the recoverable amount of a single asset is hard to estimate, then the recoverable amount of the asset group that this asset belongs to
will be determined based on asset group.
Asset group refers to a minimum combination of assets that may be recognized by the Group, by which the flow-in cash generated
shall be generally independent of those by other assets or asset group. Asset groups are affirmed depending on whether the main cash
flows generated by asset groups are independent to other assets or on the cash flows of asset group.
The Group conducts impairment test of the goodwill formed as a result of merger and the intangible assets with undetermined service
life each year, whether there are indications of impairment or not. Goodwill impairment test is carried out together with the asset
groups or combinations of asset groups related to it.
Once asset impairment losses are confirmed, they will not be reversed.
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18. Long-term deferred expenses
Long-term deferred expenses are expenses that have occurred but should be borne during the reporting period and subsequent
periods with a sharing period of more than one year. Long-term deferred expenses of the Group mainly include improvement
expenditure of fixed assets leased for operation. Long-term deferred expenses are amortized on a straight-line basis over the expected
benefit period.
19. Employee compensation
Employee compensation, is the Group paid for employee’s service or compensation paid for dissolution of labor relations. The
Group’s employee compensation mainly includes short-term employee compensation, post-employment benefits, termination
benefits and other long-term employee benefits. The welfare provided to employee’s spouse 、kids、the supported people、survivors
of deceased employees and other beneficiaries, also belong to employee compensation.
(1) Accounting methods for short-term compensation
In the accounting period that its employees provide services for it, the Group recognizes the short-term compensations that have
actually occurred as liabilities and include them in its current gains or losses, unless other accounting standards require or allow
including them in the cost of assets.
(2)Accounting methods for post-employment benefits
The Group classifies post-employment benefit plan as defined contribution plans (DCPs) and defined benefit plans (DBPs).
Post-employment benefit plan refers to the agreement reached by the Group and its employees on post-employment benefits, or the
rules or measures the Group develops in order to provide post-employment benefits. Furthermore, DCPs mean that the Group will
not be further obliged to pay after it pays a fixed amount to an independent fund; DBPs refer to the post-employment plans other than
DCPs.
A. DCPs
In the accounting period that its employees provide services for it, the Group recognizes the to-be-paid amount calculated according
to DCPs as liabilities and includes them in its current gains or losses or relevant cost of assets.
B. DBPs
The Group has not yet operated DBPs or other long-term employee benefits complying with DBPs.
(3) Accounting methods for termination benefits
If providing termination benefits to employees, the Group will recognize the employee compensation liabilities generated by
termination benefits in any of the following 2 circumstances, whichever happens earlier, and include them in its current gains or
losses: when the Group is unable to unilaterally withdraw the plan on the cancellation of labor relationship or the layoff proposal;
when the Group recognizes the costs or expenses related to the recombination involving with termination benefits payment.
(4) Accounting methods for other long-term employee benefits
Other long-term employee benefits provided by the Group to employees, if complying with DDPs, shall be treated according to the
abovementioned accounting policies for DDPs; if not, the above accounting policies for DBPs shall be used to recognize and measure
their net liabilities or net assets.
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20. Estimated liabilities
(1) Estimated liability reorganization standards
When the Group’s regulations and relevant obligations of the contingencies can meet the following conditions at the same time, they
will be recognized as estimated liabilities:
① The obligation is the present obligation undertaken by the enterprise;
② Performance of this obligation may make economic benefits flow out of the enterprise;
③ Amount of this obligation can be reliably measured.
(2) Estimated liability measurement method
Estimated liabilities are measured initially according to the optimal estimate that needs to expend in order to perform relevant present
obligations. The necessary expenditure has a contiguous range, and within this range, all kinds of results have the same possibility to
occur. The optimal estimate is determined according to the median of this range. In other circumstances, the optimal estimate is
treated as below:
① If the contingency involves with a single item, then the optimal estimate will be determined based on the amount that is most
likely to occur.
② If the contingency involves with several items, then the optimal estimate will be determined based on all possible results and their
probabilities.
When the optimal estimate is determined, the risks, uncertainties and the time value of money related to contingencies shall be taken
into full consideration. If the time value of money has great impact, the optimal estimate shall be determined after discounting
relevant future cash outflows.
If it is expected that the estimated liabilities that the Group needs to pay off will be fully or partially compensated by a third
party, the compensation amount cannot be recognized separately as assets when it can be basically ensured. The recognized
compensation amount must not be higher than the book value of the estimated liabilities.
The Group re-checks the book value of estimated liabilities on balance sheet date. If there is unambiguous evidence showing that the
book value cannot reflect the current optimal estimate truly, this book value shall be adjusted according to the current optimal
estimate.
21. Share-based payment
Share-based payment of the Company is recognized and measured based on true, complete and effective shared-based payment
agreement, and implemented by equity - settled share-based payment.
(1) Equity-settled share-based payment:
If equity-settled share-based payment is used to exchange employee services, then it shall be measured with the fair value of the
equity instruments granted to employees. If equity-settled share-based payment is used to exchange employee services with
immediate vesting after granting, it shall be included in relevant cost or expense based on the fair value of equity instruments on the
granting day, and capital reserves shall be added correspondingly. If the equity-settled share-based payment is used to exchange
employee services with vesting after completing services within the waiting period or meeting the specified performance conditions,
the services obtained in the current period shall be included in relevant cost or expense and capital surplus based on the optimal
estimate of the quantity of equity instruments for right exercising and according to the fair value of the day granting equity
instruments on each balance sheet date within the waiting period.
Determination of the fair value of equity instruments:
①For shares granted to the employees, the fair value measured according to the market price of the company's share capital and
adjusted according to the granting terms and conditions (not including the vesting conditions out of market conditions).
② For the equity instrument granted to the employees ,such as stock option, if there is no terms or similar condition of equity
instrument, The Company estimates the fair value of the granted equity instruments with Black-Scholes Option Pricing Model.
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When determining the fair value of the day granting equity instruments, the Company considers the influence of market conditions of
non-vesting conditions included in vesting conditions which are specified in the share-based agreement. If there are non-vesting
conditions for share-based payment, the Company will confirm that the cost or expense corresponding to services has been obtained
as long as the non-market conditions (such as service term, etc.) included in vesting conditions are met by employees or other parties.
The Company grants restricted shares to employees to implement equity incentive plan, see Note (13) for details. When the increase
of equity instruments is confirmed on the issuing day of restricted shares, the treasury shares and repurchase obligations and
liabilities shall be confirmed according to the quantity of issued restricted shares and the amount calculated and confirmed based on
repurchase price at the same time, and the repurchase obligations and liabilities shall be measured subsequently in accordance with
the requirements of Accounting Standard for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
(2) Basis for confirming the optimal estimate of vesting equity instruments: On each data balance date within the waiting period, the
Company makes its optimal estimate and corrects the estimated quantity of equity instruments for vesting according to the
subsequent information that it has obtained, such as the variation of number of employees with vesting, in order for the optimal
estimate of vesting equity instruments.
(3) Accounting treatment related to the modification and termination of shared-based payment plan
If the fair value of the granted equity instruments is modified or increased, the Company will confirm the increase of services it
obtains correspondingly; if the quantity of the granted equity instruments is modified or increased, the Company will recognize the
increase of the fair value of the increased equity instruments as the increase of services; if the Company modifies the vesting
conditions by a favorable way for employees, it shall take the modified vesting conditions into consideration while dealing with
vesting conditions.
If the fair value of the granted equity instruments is modified or decreased, the Company will continue confirming the amount of
services obtained based on the fair value of equity instruments on the granting date, without considering the decrease of fair value; if
the quantity of the granted equity instruments is modified or decreased, the Company will treat considering the decrease as the
cancellation of granted equity instruments; if the Company modifies the vesting conditions by an unfavorable way for employees, it
shall not take the modified vesting conditions into consideration while dealing with vesting conditions.
If the Company cancels the granted equity instruments or settles them (unless they are cancelled due to the failure to meet vesting
conditions) within the waiting period, then the cancellation or settlement shall be regarded as accelerated vesting, and the amount that
shall be confirmed in the remaining waiting period shall be confirmed immediately.
22. Income
Does the Company need to abide by the disclosure requirements for special industries and sectors?
No
Incomes of the Group include income from sales of goods, income from rendering of services and income from alienating the right to
use assets.
(1) Income from sales of goods
The Group recognizes its income from sales of goods after it transfers the main risks of and rewards from the property in goods,
reserving neither the right to continue management that is often related to property nor effective control of sold goods, relevant costs
that have incurred or are going to be incurred can be reliably measured and related economic benefits is highly possible to flow into
the enterprise.
Revenue recognition arising from domestic product and export products to related party should meet the following conditions: the
company has delivered the products according to the contract, and sales amount have been identified, payment for goods have been
collected or the receipt voucher have been got and the relevant economic benefits are likely to flow into, the product costs can be
measured reliably. Revenue recognition arising from export products to a third part should meet the following conditions: the
company has made the customs clearance, departed from port, got the bill of lading according to the contract, and product sales
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amount have been identified, payment for goods have been collected or the receipt voucher have been got and the relevant economic
benefits are likely to flow into, the product costs can be measured reliably.
(2) Income from rendering of services
① The Group recognizes income from rendering of services with percentage of completion method when the completion progress
can be reliably determined, the amount of income, the costs that have incurred or are going to be incurred can be reliably measured
and related economic benefits is highly possible to flow into the enterprise.
Method to determine the service transaction completion progress: Proportion of provided labor in the total quantity of labor that
should be provided and the proportion of incurred cost in the total estimated cost.
② If the service transition result of the Group cannot be reliably estimated on data balance sheet date, it can be handled with the
following methods:
A. If it is estimated that the labor cost occurred can be compensated, then the income from rendering of services shall be confirmed
according to it and labor cost shall be carried over based on this amount.
B. If it is estimated that the labor cost occurred cannot be compensated, then it will be included in the current gains or losses; whether
to provide the income from proving labor will not be confirmed.
(3) Income from alienating the right to use assets
Income from alienating the right to use assets includes income from interests, income from royalties, etc.
The Group recognizes the income from alienating the right to use assets when the amount of its income can be measured reliably and
relevant economic interests is most likely to flow into the enterprise.
23. Government grants
Government grants of the Group are divided into government grants concerning assets and government grants concerning benefits.
Government grants concerning assts refer to the government grants that the Group has obtained and will be used to purchase and
construct long-term assets, or to form long-term assets by other ways. Government grants concerning benefits refer to the
government grants other than government grants concerning assets. If the grant object is not made clear in the government’s files,
judgment shall be made based on the basic conditions for obtaining grants. To be specific, grants that form long-term assets through
purchase and construction or by other ways shall be regarded as government grants concerning assets, and other assets shall be
regarded as government grants concerning benefits.
(1) Recognition of government grants
Government grants shall be recognized when they meet all the following conditions:
① Meet the attached conditions to government grants;
② Be able to receive government grants.
(2) Measurement of government grants:
① If government grants are monetary assets, they shall be measured according to the amount received or receivable. If not, they shall
be measured according to their fair value; if their fair value cannot be reliably obtained, they shall be measured according to their
nominal amount.
② Government grants concerning assets will be recognized as deferred income when they are obtained, and will be included in gains
or losses by period with a reasonable and systematic method within its service life when they reach the predetermined state of use. If
relevant asset is sold, transferred, scrapped or damaged before its service life ends, the balance of undistributed deferred income will
be transferred into the gains or losses of the current asset disposal period.
Government grants concerning benefits used to compensate future relevant costs or losses will be recognized as deferred income
when they are obtained; those used to compensate relevant costs or losses that have occurred will be included in the current gains or
losses directly when they are obtained.
Government grants concerning daily activities will be included in other income; government grants concerning not daily activities
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will be included in non-operating income.
③ If it has confirmed that government grants need to be returned, they shall be dealt with according to the following circumstances:
A. When there is relevant deferred income, the book balance of relevant deferred income shall write down and the exceeding part
shall be included in the current gains or losses.
B. In other circumstances, they shall be included in current gains or losses directly.
24. Deferred income tax assets/ deferred income tax liabilities
The Group deals with accounting for income taxes with balance sheet liability method.
(1) Deferred income tax assets
① If there is a deductible temporary difference between the book value of assets and liabilities, the deferred income tax assets
generated by this deductible temporary difference shall be calculated and confirmed according to the tax rate of the expected period
to recover this asset or pay off this liability, to the extent of the taxable income that may be obtained in the future to offset this
deductible temporary difference.
② If there is unambiguous evidence to certify that it is very likely to obtain enough taxable income to offset deductible temporary
difference in the future on the balance sheet date, the deferred income tax assets that are not recognized before shall be recognized.
③ The book value of deferred income tax assets shall be rechecked on balance sheet date. If it is hardly possible to obtain enough
taxable income in the future to offset the benefits from deferred income tax assets, the book value of deferred income tax assets shall
write down. When it is very likely to obtain enough taxable income the write-down amount shall be reversed.
(2) Deferred income tax liabilities
If there is taxable temporary difference between the book value of assets and liabilities and the tax basis, the deferred income tax
liabilities generated by taxable temporary difference shall be recognized according to the applicable tax rate of the expected period to
recover the asset or pay off the liability.
25. Leasing
(1) Accounting method for operating lease
(1) Operating lease
The Group, as the lessee, shall include the rentals of operating lease in relevant asset cost or current gains or losses with straight-line
method in all periods; the initial direct expenses occurred shall be included in the current gains or losses; contingent rentals shall be
included in the current gains or losses when they happen actually.
The Group, as the lessor, shall include the assets of operating lease in relevant items in the balance sheet according to asset nature;
rentals of operating lease shall be recognized as current gains or losses with straight-line method in all periods within the lease term.
The initial direct expenses occurred shall be included in the current gains or losses; fixed assets of assets under operating lease shall
be depreciated according to similar asset depreciation policy. Other assets under operating lease shall be amortized with a systematic
and reasonable method. Contingent rentals shall be included in the current gains or losses when they happen actually.
26. Other important accounting policies and accounting estimates
(1) Repurchase of shares
If the Group reduces its capital by acquiring the shares of the Company with approval, then it shall reduce equities according to
the total amount of the face value of cancelled shares, and adjust the difference between the price paid to purchase shares back
(including transaction expense) and the face value of shares. The part exceeding the total face value shall be used to write down
capital surplus (premium on capital stock), surplus reserve and undistributed profit. If the price is lower than the total face value, then
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the part lower shall be added with capital surplus (premium on capital stock).
Shares repurchased by the Group shall be managed as treasury shares before they are cancelled or transferred; total expenditure
of repurchased shares shall be transferred as the cost of treasury shares.
When treasury shares are transferred, the part higher than their cost shall be transferred to increase capital surplus (premium on
capital stock); the part lower than the cost of treasury shares shall write down capital surplus (premium on capital stock), surplus
reserve and undistributed profit in sequence.
If the Group repurchase shares for the reason of equity incentive, it shall treat all expenses on shares repurchase as treasury
shares while repurchasing and make registration for future reference.
(2) Hedge accounting
Some financial instruments are used as hedging tools by the Group to avoid certain risks. For those hedges meeting
requirements specified, the Group will deal with them by hedge accounting method. The hedge of the Group is fair value hedge. The
hedge for foreign exchange risk of firm commitment is used as fair value hedge by the Group.
The hedging tool and the hedged item are formally specified by the Group at the beginning of hedge with written documents
about the hedging relationship, risk management strategy and risk management objectives. In addition, the hedge effectiveness will
be assessed continuously by the Group from the beginning of hedge.
① Fair value hedge
The profit or loss from the hedging tool specified as fair value hedge with qualification is recorded in the current profit and loss.
Otherwise, the profits or losses from non-tradable equity instruments (or their components) with fair value measurement and
changes included in other comprehensive income are recorded in other comprehensive earning. The profits or losses formed from
the hedging risks of the hedged item should be included into current profit and loss and the book value of hedged item should be
adjusted simultaneously. The related profit and loss from the hedged item that is measured as fair value is recorded in the current
profit and loss and other comprehensive earning without accounting value adjusting.
The hedge accounting is terminated when the hedging relationship is revoked by the Group, the hedging tool is expired or sold,
the contract is terminated or exercised, or the condition is out of qualification.
(3) Measurement of fair value
Fair value, refers to the price that market participant can obtain or needs to pay after selling an asset or transferring a liability,
among the orderly transactions made on the measurement date. The Group measures relevant asset or liability and considers the
characteristics of this asset or liability at fair value; supposes the selling of assets or transfer of liabilities by market participant are
orderly transaction under current market conditions; supposes the orderly selling of assets or transfer of liabilities are carried out in
the main market of relevant assets or liabilities; supposes the transaction is made in the most favorable market for relevant assets or
liabilities when there is no main market. The Group adopts the assumptions that market participants use to maximum their economic
benefits when they price assets or liabilities.
The Company judges whether the fair value at initial recognition equals to its transaction price according to transaction nature
and the characteristics of relevant assets or liabilities; if the transaction price is not equal to the fair value, relevant profits or losses
will be included in the current gains or losses, unless otherwise specified by relevant accounting standards.
The Group adopts the valuation technique that is applicable to the current situation and has enough available data and other
information to support. Mainly used valuation techniques include market approach, income approach and cost approach. In the
application of valuation techniques, relevant observable input values shall be used first, and unobserved input values can only be
used when relevant observable input values cannot be obtained or it is not feasible to obtain them.
Input values used by the Group for fair value measurement is divided into 3 levels. The first level of input values will be used
first, and then the second level and the third level. First level of input values are the quotations of same assets or liabilities that can be
obtained on the measurement date and are not adjusted in the active market; the second level of input values are the direct or indirect
observable input values of relevant assets or liabilities other than the first level of input values; the third level of input values are the
unobservable input values of relevant assets or liabilities.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
132
The Group measures non-financial assets with fair value, considers market participant’s ability to use this asset in the best way
to generate economic benefits, or the ability to sell this asset to other market participants who can use this asset in the best way to
generate economic benefits. To measure a liability with fair value, the Group supposes this liability is transferred to other market
participants on the measurement date, and further exists after transfer, and the market participant, who is the transferee, performs
obligations. To measure one’s own equity instrument with fair value, suppose this equity instrument is transferred to other market
participants on the measurement data, and further exits after transfer, and the market participant, as the transferee, obtains relevant
rights to this instrument and undertakes corresponding obligations.
27. Change of important accounting policies and accounting estimates
(1) Change of important accounting policies
√ Applicable □ Not-applicable
Change of accounting policies caused by the adoption of the new financial instruments standards
The Ministry of Finance promulgated the Accounting Standards for Business Enterprises No. 22 - Recognition and
Measurement of Financial Instruments (Revised Version 2017) (C.K. [2017] No. 7), the Accounting Standards for Business
Enterprises No. 23 - Transfer of Financial Assets (Revised Version 2017) (C.K. [2017] No. 8), and the Accounting Standards for
Business Enterprises No. 24 - Hedging Accounting (Revised Version 2017) (C.K. [2017] No. 9) on March 31, 2017 and the
Accounting Standards for Business Enterprises No. 37 - Financial Instruments Presentation (Revised Version 2017) (C.K. [2017] No.
14) on May 2, 2017 (the foregoing standards are collectively referred to as “new financial instruments standards”), requiring that
listed enterprises in China shall implement the new financial instruments standards from January 1, 2019.
The Group began to implement the new financial instruments standards from January 1, 2019.
All identified financial assets under the new financial instruments standards are subsequently measured at amortized cost or fair
value. On the implementation of the new financial instruments standards, the Group evaluated the business model for managing
financial assets based on the actual facts and situation on the day and evaluated the contracted cash flow features of financial assets
based on the facts and situation during the preliminary identification of financial assets, and divided the financial assets into:
financial assets measured by amortized cost, financial assets at fair value through other comprehensive income and, financial assets at
fair value through current profit or loss. For equity equipment investment at fair value through other comprehensive income, at the
time of derecognition of such financial asset, accumulative gains or losses previously included in other comprehensive income should
be transferred from other comprehensive income and included in retained earnings instead, and not included in current profit or
loss.
Under the new financial instruments standards, the Group made provision for impairment reserve and identified credit
impairment loss for financial assets measured at amortized cost and financial security contracts based on expected credit losses.
The Group adopted the new financial instruments standards in a retroactive manner and chose not to make a restatement on the
inconsistency between classification and measurement (including decrease in value) in previous financial statements and in financial
statements prepared under the new financial instruments standards. Therefore, with regards to the accumulated amount affected by
the first implementation of the standards, the Group adjusted the amount of retained earnings or other comprehensive income and
other related items in the financial statements at the beginning of 2019, and did not make a restatement in the financial statements of
2018.
The main changes caused by and impacts of the adoption of new financial instrument standards on the Group are as follows:
--The Group endorses or discounts part of bank acceptance bills in its daily fund management to receive contracted cash flows
and sell financial assets. Therefore, the Group reclassifies these notes receivables on and after January 1, 2019 as financial assets
measured at fair value through other comprehensive income, and presented as receivables financing.
A. Financial asset classification and measurement comparison table before and after the first implementation date
Annual Report 2019 of Zhejiang Supor Co., Ltd.
133
a. Impact on consolidated statements
December 31, 2018 (Before change) January 01, 2019 (After change)
Item Type of
measurement Carrying amount Item Type of measurement Carrying amount
Cash and bank
balances Amortized cost 1,416,762,574.83
Cash and bank
balances Amortized cost 1,416,762,574.83
Financial assets held at
fair value through
current profit or loss
Held at fair value
through current
profit or loss
435,241,736.40 Transactional
financial assets
Held at fair value through
current profit or loss 435,241,736.40
Notes receivable Amortized cost 701,179,379.24 Financing of
receivables
Held at fair value through
other comprehensive
income
701,179,379.24
Accounts receivable Amortized cost 1,727,619,712.96 Accounts receivable Amortized cost 1,727,619,712.96
Other receivables Amortized cost 143,352,998.18 Other receivables Amortized cost 143,352,998.18
Other current assets
[Note] Amortized cost 1,909,177,135.70
Other current assets
[Note] Amortized cost 1,909,177,135.70
Note: They are the financial products purchased and reverse repurchase of national debts.
b. Impact on financial statements of the Company
December 31, 2018 (Before change) January 01, 2019 (After change)
Item Type of
measurement Carrying amount Item Type of measurement Carrying amount
Cash and bank
balances Amortized cost 466,625,941.96
Cash and bank
balances Amortized cost 466,625,941.96
Financial assets held at
fair value through
current profit or loss
Held at fair value
through current
profit or loss
304,655,466.53 Transactional
financial assets
Held at fair value through
current profit or loss 304,655,466.53
Notes receivable Amortized cost 16,714,350.98 Financing of
receivables
Held at fair value through
other comprehensive
income
16,714,350.98
Accounts receivable Amortized cost 413,073,855.58 Accounts receivable Amortized cost 413,073,855.58
Other receivables Amortized cost 110,207,407.00 Other receivables Amortized cost 110,207,407.00
Other current assets
[Note] Amortized cost 1,608,582,408.38
Other current assets
[Note] Amortized cost 1,608,582,408.38
Note: They are the financial products purchased and reverse repurchase of national debts.
B. Table on adjustment of the book value of the original financial asset to the book value of new financial asset classified and
measured in accordance with the new financial instrument standards on the first implementation date
a. Impact on consolidated statements
Item December 31, 2018
(Before change) Reclassification Re-measurement
January 01, 2019
(After change)
Amortized cost:
Notes receivable 701,179,379.24
Minus: Transferred to financing of receivables 701,179,379.24
Annual Report 2019 of Zhejiang Supor Co., Ltd.
134
Balance under the new financial instrument
standards
Held at fair value through current profit or loss:
Financial assets held at fair value through current
profit or loss (original standards) 435,241,736.40
Minus: Transferred to transactional financial
assets 435,241,736.40
Balance under the new financial instrument
standards
Transactional financial assets
Plus: Transferred from financial assets held at fair
value through current profit or loss (original
standards)
435,241,736.40
Balance under the new financial instrument
standards 435,241,736.40
Held at fair value through other comprehensive
income:
Financing of receivables
Transferred from notes receivable 701,179,379.24
Balance under the new financial instrument
standards 701,179,379.24
b. Impact on financial statements of the Company
Item December 31, 2018
(Before change) Reclassification Re-measurement
January 01, 2019
(After change)
Amortized cost:
Notes receivable 16,714,350.98
Minus: Transferred to financing of receivables 16,714,350.98
Balance under the new financial instrument
standards
Held at fair value through current profit or loss:
Financial assets held at fair value through current
profit or loss (original standards) 304,655,466.53
Minus: Transferred to transactional financial
assets 304,655,466.53
Balance under the new financial instrument
standards
Transactional financial assets
Plus: Transferred from financial assets held at fair
value through current profit or loss (original
standards)
304,655,466.53
Balance under the new financial instrument 304,655,466.53
Annual Report 2019 of Zhejiang Supor Co., Ltd.
135
standards
Held at fair value through other comprehensive
income:
Financing of receivables
Transferred from notes receivable 16,714,350.98
Balance under the new financial instrument
standards 16,714,350.98
C. Financial asset impairment reserve adjustment table on the first implementation date
Based on the principle of prudence and consistency, the Group and company still use the accrual ratio under the original aging
analysis method as the expected credit loss rate., so the age portfolio has no impact on bad debts provision change. Payment of
third-party goods which has no provision for bad debts ,classified as low-risk portfolio, the expected credit loss rate is 0.1%, as the
impact amount is very small, so has not adjusted the opening balance.
a. Impact on consolidated statements and financial statement of the Company
measurement category Dec 31th 2018
(before change) reclassification remeasurement
Jan 1st 2019
(after change)
Amortized cost:
Impairment provision of accounts receivable 102,123,323.37 102,123,323.37
Impairment provision of other receivable 4,788,312.94 4,788,312.94
b、impact on financial statement of the company
measurement category Dec 31th 2018
(before change) reclassification remeasurement
Jan 1st 2019
(after change)
Amortized cost:
Impairment provision of accounts receivable 18,419,554.79 18,419,554.79
Impairment provision of other receivable 1,080,952.02 1,080,952.02
D、impact on retained earning and other comprehensive income on Jan 1st 2019
Implement of the new financial instrument standards has no impact on retained earning and and other comprehensive income
on Jan 1st 2019
(2) Change of important accounting estimates
□ Applicable √ Not-applicable
(3) Adjustment and implementation of related items of financial statements at the beginning of the year
when the new financial instrument standards, new income standards, new lease standards were
implemented since 2019
√ Applicable □ Not-applicable
Consolidated balance sheet
Unit: Yuan
Annual Report 2019 of Zhejiang Supor Co., Ltd.
136
Item December 31, 2018 January 01, 2019 Adjustment amount
Current assets:
Cash and bank balances 1,416,762,574.83 1,416,762,574.83
Settlement reserve
Loans to other banks
Transactional financial assets 435,241,736.40 435,241,736.40
Financial assets held at fair value through profit or loss 435,241,736.40 -435,241,736.40
Derivative financial assets
Notes receivable 701,179,379.24 -701,179,379.24
Accounts receivable 1,727,619,712.96 1,727,619,712.96
Financing of receivables 701,179,379.24 701,179,379.24
Advance payment 216,573,318.30 216,573,318.30
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserve receivable
Other receivables 143,352,998.18 143,352,998.18
Where: interest receivable 600,649.75 600,649.75
Dividend receivable
Reverse-REPO financial assets
Inventories 2,361,653,181.94 2,361,653,181.94
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 1,990,934,740.49 1,990,934,740.49
Total current assets 8,993,317,642.34 8,993,317,642.34
Non-current assets
Loans and advances granted
Debt investment
Available-for-sale financial assets
Other debt investments
Held-for-maturity investment
Long-term receivables
Long-term equity investment 60,646,438.46 60,646,438.46
Other equity instrument investments
Annual Report 2019 of Zhejiang Supor Co., Ltd.
137
Other non-current assets
Investment properties
Fixed assets 868,297,081.06 868,297,081.06
Construction in progress 40,562,136.79 40,562,136.79
Productive biological assets
Oil and gas assets
Use right assets
Intangible assets 397,272,432.11 397,272,432.11
Development expenditures
Goodwill
Long-term unamortized expenses 3,284,532.30 3,284,532.30
Deferred income tax assets 269,780,914.15 269,780,914.15
Other non-current assets
Total non-current assets 1,639,843,534.87 1,639,843,534.87
Total assets 10,633,161,177.21 10,633,161,177.21
Current liabilities:
Short-term borrowings
Central bank loan
Loans from others
Transactional financial liabilities
Financial liabilities held at fair value through profit or
loss
Derivative financial liabilities
Notes payable
Accounts payable 2,953,812,235.17 2,953,812,235.17
Advances received 1,207,916,762.75 1,207,916,762.75
Contract liabilities
Proceeds from sale of repurchase financial assets
Deposit taken and interbank deposit
Proceeds from security transaction agency
Proceeds from security underwriting agency
Employee pay payable 289,033,981.74 289,033,981.74
Taxes payable 162,065,893.88 162,065,893.88
Other payables 95,355,792.24 95,355,792.24
Annual Report 2019 of Zhejiang Supor Co., Ltd.
138
Where: interest payable
Dividend payable
Handling fee and commission payable
Reinsurance accounts receivable
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 4,708,184,665.78 4,708,184,665.78
Non-current liabilities
Reinsurance contract reserve
Long-term borrowings
Bonds payable
Where: preferred shares
Perpetual bond
Lease obligation
Long-term payables
Long-term employee pay payable 4,524,667.94 4,524,667.94
Estimated liabilities 10,150,000.00 10,150,000.00
Deferred income
Deferred income tax liabilities 3,234,750.00 3,234,750.00
Other non-current liabilities
Total non-current liabilities 17,909,417.94 17,909,417.94
Total liabilities 4,726,094,083.72 4,726,094,083.72
Owner’s equity:
Share capital 821,243,960.00 821,243,960.00
Other equity instruments
Wherein: preferred shares
Perpetual bond
Capital reserves 139,529,530.66 139,529,530.66
Minus: treasury stock 3,868,950.00 3,868,950.00
Other comprehensive incomes -24,490,354.80 -24,490,354.80
Special reserves
Surplus reserve 401,648,181.64 401,648,181.64
General risk reserve
Annual Report 2019 of Zhejiang Supor Co., Ltd.
139
Undistributed profit 4,573,275,094.31 4,573,275,094.31
Total owner’s equity belonging to parent company 5,907,337,461.81 5,907,337,461.81
Minority equity -270,368.32 -270,368.32
Total owner’s equity 5,907,067,093.49 5,907,067,093.49
Total liabilities and owner’s equity 10,633,161,177.21 10,633,161,177.21
Description on adjustments
The Company has implemented the new financial instruments standards from January 1, 2019. According to the connecting
rules of the new financial instrument standard, the Company should classify and measure financial instruments in accordance with
the rules on the date of implementation. The previous comparable figures have no need to be restated if those in the previous
comparative financial statements are inconsistent with the requirements of the standard. The difference between the new standard and
the original one is recorded in the beginning retained earnings or other comprehensive earnings.
Balance sheet of parent company
Unit: Yuan
Item December 31, 2018 January 01, 2019 Adjustment amount
Current assets:
Cash and bank balances 466,625,941.96 466,625,941.96
Transactional financial assets 304,655,466.53 304,655,466.53
Financial assets held at fair value through profit or loss 304,655,466.53 -304,655,466.53
Derivative financial assets
Notes receivable 16,714,350.98 -16,714,350.98
Accounts receivable 413,073,855.58 413,073,855.58
Financing of receivables 16,714,350.98 16,714,350.98
Advance payment 39,325,985.53 39,325,985.53
Other receivables 110,207,407.00 110,207,407.00
Where: interest receivable 5,062.50 5,062.50
Dividend receivable
Inventories 187,734,497.22 187,734,497.22
Contract assets
Held-for-sale assets
Non-current assets due within one year
Other current assets 1,610,112,552.03 1,610,112,552.03
Total current assets 3,148,450,056.83 3,148,450,056.83
Non-current assets
Debt investment
Available-for-sale financial assets
Annual Report 2019 of Zhejiang Supor Co., Ltd.
140
Other debt investments
Held-for-maturity investment
Long-term receivables
Long-term equity investment 2,787,966,574.79 2,787,966,574.79
Other equity instrument investments
Other non-current assets
Investment properties
Fixed assets 142,684,254.10 142,684,254.10
Construction in progress 27,526,362.07 27,526,362.07
Productive biological assets
Oil and gas assets
Use right assets
Intangible assets 88,247,653.35 88,247,653.35
Development expenditures
Goodwill
Long-term unamortized expenses
Deferred income tax assets 13,529,855.34 13,529,855.34
Other non-current assets
Total non-current assets 3,059,954,699.65 3,059,954,699.65
Total assets 6,208,404,756.48 6,208,404,756.48
Current liabilities:
Short-term borrowings
Transactional financial liabilities
Financial liabilities held at fair value through profit or
loss
Derivative financial liabilities
Notes payable
Accounts payable 208,479,126.48 208,479,126.48
Advances received 5,035,058.53 5,035,058.53
Contract liabilities
Employee pay payable 60,815,316.85 60,815,316.85
Taxes payable 2,884,844.16 2,884,844.16
Other payables 3,063,662,415.83 3,063,662,415.83
Where: interest payable
Annual Report 2019 of Zhejiang Supor Co., Ltd.
141
Dividend payable
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 3,340,876,761.85 3,340,876,761.85
Non-current liabilities
Long-term borrowings
Bonds payable
Where: preferred shares
Perpetual bond
Lease obligation
Long-term payables
Long-term employee pay payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 3,340,876,761.85 3,340,876,761.85
Owner’s equity:
Share capital 821,243,960.00 821,243,960.00
Other equity instruments
Wherein: preferred shares
Perpetual bond
Capital reserves 589,235,394.74 589,235,394.74
Minus: treasury stock 3,868,950.00 3,868,950.00
Other comprehensive incomes
Special reserves
Surplus reserve 410,621,980.00 410,621,980.00
Undistributed profit 1,050,295,609.89 1,050,295,609.89
Total owner’s equity 2,867,527,994.63 2,867,527,994.63
Total liabilities and owner’s equity 6,208,404,756.48 6,208,404,756.48
Description on adjustments
The Company has implemented the new financial instruments standards from January 1, 2019. According to the connecting
rules of the new financial instrument standard, the Company should classify and measure financial instruments in accordance with
Annual Report 2019 of Zhejiang Supor Co., Ltd.
142
the rules on the date of implementation. The previous comparable figures have no need to be restated if those in the previous
comparative financial statements are inconsistent with the requirements of the standard. The difference between the new standard and
the original one is recorded in the beginning retained earnings or other comprehensive earnings.
VI. Taxes
1. Main taxes and tax rates
Taxes Tax bases Tax rates
Value-added tax
(VAT)
The taxable revenue from sales of goods or
rendering of services
Taxable income is calculated at output tax rates of 0, 6%,
9%, and 13%, and VAT is calculated based on the
difference after deducting the input tax allowable for the
current period. The applicable tax rate for the Group’s VAT
taxable sales or imported goods during the period from
January to March 2019 was 16% / 10%. According to the
Notice on Deepening the Policies Related to Value-Added
Tax Reform ([2019] No. 39) released by the Ministry of
Finance, the State Taxation Administration and the General
Administration of Customs, such applicable tax rate has
been adjusted to 13% / 9% from April 1, 2019.
Urban maintenance
and construction tax Turnover tax payable 7%
Enterprise income tax Taxable income
Enterprise income tax rate is 25%. The Company and
Zhejiang Shaoxing Supor Domestic Electrical Appliances
Co., Ltd. are levied at a preferential tax rate of 15%.
Housing property tax
Wuhan Supor Pressure Boiler Co., Ltd.* and
Wuhan Supor Cookware Co., Ltd. are levied at
the rate of 1.2% of the balance of the housing
property cost after deducting 25% of the cost;
other companies are levied at the rate of 1.2%
of the balance of the housing property cost after
deducting 30% of the cost; for housing property
levied on the basis of rent, housing property tax
is levied at the rate of 12% of rent revenue.
1.2%, 12%
Education surcharge Turnover tax payable 3%
Local education
surcharge Turnover tax payable
2%, subsidiaries excluding those in Wuhan are levied at
the rate of 1.5%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
The Company 15%
Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. 15%
Annual Report 2019 of Zhejiang Supor Co., Ltd.
143
Taxpayers other than the above-mentioned 25%
2. Tax preferential policies
(1) Pursuant to No. GKHZ [2019] No. 70 document, the Company renewed the hi-tech enterprise qualification in 2018 and is entitled
to enjoy the preferential tax rate of 15% for the three-year period starting from January 1, 2018.
(2) Pursuant to No. GKHZ [2020] 32 documents, Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. renewed the
hi-tech enterprise qualification in 2019 and is entitled to enjoy the preferential tax rate of 15% for the three-year period starting from
January 1, 2019.
VII. Notes to items of consolidated financial statements
1. Monetary capital
Unit: Yuan
Item Closing balance Opening balance
Cash on hand 91,345.89 55,510.80
Cash in bank 1,227,662,240.97 1,396,282,615.31
Other cash and bank balances 80,379,070.30 20,424,448.72
Total 1,308,132,657.16 1,416,762,574.83
Including: deposited overseas 42,514,760.41 29,559,652.01
Other remarks:
1) There is RMB 74,000,000 restricted amount at the end of the period as supply chain financial deposit. Alipay wallet ,JD settlement
account, securities settlement accounts, futures settlement accounts, and account at youzan.com, amount in this account is not limited
to use..
2) On December 31, 2019, the Group’s monetary funds deposited in Vietnam amounted to RMB 34,283,080.13 (December 31, 2018:
equivalent to RMB 25,908,347.48); monetary funds deposited in Singapore amounted to RMB 6,762,757.40 (2018 December 31,
2013: equivalent to RMB 3,651,304.53); monetary funds deposited in Indonesia equivalent to RMB 1,468,922.88 (December 31,
2018: equivalent to RMB 0)
2. Transactional financial assets
Unit: Yuan
Item Closing balance Opening balance
Financial assets held at fair value through current profit or loss 1,264,563,042.79 435,241,736.40
Total 1,264,563,042.79 435,241,736.40
Other remarks:
The Company, Shaoxing Supor Company, Shaoxing Zhejiang Supor Electrical and SEB Shanghai purchased financial products of
RMB 700,000,000, RMB 300,000,000, RMB 200,000,000 and RMB 60,000,000, respectively. These financial products guarantee
principal, have floating benefits and relate to interest rate and exchange rate. At the period end of 2019, the income from changes in
fair value was recognized as RMB 4,563,042.79.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
144
3. Accounts receivable
(1) Details on categories
Unit: Yuan
Categories
Closing balance Opening balance
Book balance Provision for bad
debts Carrying
amount
Book balance Provision for bad
debts Carrying
amount Amount Ratio Amount
Provision
proportio
n
Amount Ratio Amount
Provision
proportio
n
Receivables for
provision made on an
individual basis
6,351,58
7.89 0.34%
6,351,58
7.89 100.00%
14,234,40
0.67 0.78%
14,234,40
0.67 100.00%
Including:
Receivables for
provision made on
the basis of portfolio
1,888,00
4,836.29 99.66%
91,095,4
03.89 4.82%
1,796,909
,432.40
1,815,508
,635.66 99.22%
87,888,92
2.70 4.84%
1,727,619,7
12.96
Including:
Portfolio 1: age
portfolio
1,808,26
6,453.40 95.45%
91,015,6
65.51 5.03%
1,717,25
0,787.89
1,744,335
,355.42 95.33%
87,888,92
2.70 5.04%
1,656,446,4
32.72
Portfolio 2: low-risk
portfolio
79,738,3
82.89 4.21%
79,738.3
8 0.10%
79,658,64
4.51
71,173,28
0.24 3.89%
71,173,280.
24
Total 1,894,35
6,424.18 100.00%
97,446,9
91.78 5.14%
1,796,909
,432.40
1,829,743
,036.33 100.00%
102,123,3
23.37 5.58%
1,727,619,7
12.96
Provision made on an individual basis:
Unit: Yuan
Name
Closing balance
Book balance Provision for
bad debts
Provision
proportion Reasons
Customer 1 4,523,328.43 4,523,328.43 100.00% Full provisions are made as such receivables are with
long age and estimated to be unrecoverable.
Customer 2 1,447,935.17 1,447,935.17 100.00% Full provisions are made as such receivables are with
long age and estimated to be unrecoverable.
Customer 3 126,440.44 126,440.44 100.00% Full provisions are made as such receivables are
estimated to be unrecoverable.
Customer 4 253,883.85 253,883.85 100.00% Full provisions are made as such receivables are
estimated to be unrecoverable.
Total 6,351,587.89 6,351,587.89 -- --
Annual Report 2019 of Zhejiang Supor Co., Ltd.
145
Provision made on the basis of portfolio: Portfolio 1: age portfolio
Unit: Yuan
Name Closing balance
Book balance Provision for bad debts Provision proportion
Within 1 year (inclusive) 1,805,902,862.50 90,219,369.84 5.00%
1-2 years (inclusive) 1,382,768.73 110,621.50 8.00%
2-3 years (inclusive) 342,405.61 51,360.84 15.00%
3-4 years (inclusive) 50.00%
4-5 years (inclusive) 20,516.16 16,412.93 80.00%
Over 5 years 617,900.40 617,900.40 100.00%
Total 1,808,266,453.40 91,015,665.51 --
If bad-debt provision for accounts receivable is made based on the general model of expected credit losses, please disclose the
relevant information about the bad-debt provision with reference to the disclosure of other receivables:
□ Applicable √ Not-applicable
Disclosure by ages
Unit: Yuan
Ages Book balance
Within 1 year (inclusive) 1,885,895,129.24
1-5 years (with 2 years) 1,509,209.17
2-3 years 342,405.61
Over 3 years 6,609,680.16
3-4 years 2,622,700.00
4-5 years (with 5 years) 1,921,144.59
Over 5 years 2,065,835.57
Total 1,894,356,424.18
(2) Provisions made, collected or reversed in current period
Provisions made in current period
Unit: Yuan
Categories Opening balance
Amount of changes in current period
Closing balance Provision [note]
Recovered or
carried back
Canceled after
verification
Provision for bad debts for
accounts receivable 102,123,323.37 3,586,805.48 8,263,137.07 97,446,991.78
Total 102,123,323.37 3,586,805.48 8,263,137.07 97,446,991.78
Provisions made in current period
Annual Report 2019 of Zhejiang Supor Co., Ltd.
146
[Note]: Including increased bad debt reserve of RMB 104,611.49 for converted difference in foreign currency statement caused by
exchange rate fluctuations.
(3) Accounts receivable actually written off in current period
Unit: Yuan
Item Amount
Accounts receivable actually written off 8,263,137.07
Including significant accounts receivable written off:
Unit: Yuan
Debtors Type of accounts
receivable Amount Reason
Write-off
procedures
performed
Whether the
amount was
from connected
transactions
Customer 1 Goods payment 8,263,137.07
Goods payment cannot be recovered
because of the Company’s capital
chain rupture
Approval by the
management No
Total -- 8,263,137.07 -- -- --
(4) Details of the top 5 debtors with largest balances
Unit: Yuan
Debtors Ending balance of accounts
receivable
Proportion in the total ending
balance of accounts receivable
Ending balance of provision for
bad debt
SEB ASIA LTD. 1,046,184,084.11 55.23% 52,309,204.21
Customer 1 218,134,707.58 11.51% 10,906,735.38
Customer 2 49,869,284.12 2.63% 49,869.28
Customer 3 45,212,859.96 2.39% 2,260,643.00
Customer 4 44,835,978.27 2.37% 2,241,798.91
Total 1,404,236,914.04 74.13%
4. Financing of receivables
Unit: Yuan
Item Closing balance Opening balance
Notes receivable measured at the fair value
Including: Bank acceptance 1,186,980,101.71 701,179,379.24
Total 1,186,980,101.71 701,179,379.24
Changes in receivables financing and its fair value during the period
Annual Report 2019 of Zhejiang Supor Co., Ltd.
147
□ Applicable √ Not-applicable
If impairment provision for receivables financing is made based on the general model of expected credit losses, please disclose the
relevant information about the impairment provision with reference to the disclosure of other receivables:
□ Applicable √ Not-applicable
Other remarks:
(1) The Group discounts or endorses part of bank acceptance before maturity as required by fund management. This related
management mode about bank acceptance including collect contract cash flow and sell it as target. Therefore, such bank acceptance
was classified as financial assets measured at fair value through other comprehensive income.
(2) There is no financing of receivables pledged at the end of the year.
(3) Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
Unit: Yuan
Item Closing balance derecognized Closing balance not yet derecognized
Bank acceptance 3,328,398,198.58 290,585,764.00
Total 3,328,398,198.58 290,585,764.00
5. Advance payment
(1) Listing by ages
Unit: Yuan
Ages Closing balance Opening balance
Amount Ratio Amount Ratio
Within one year 270,517,693.79 97.12% 210,300,972.64 97.10%
1-2 years 7,241,332.84 2.60% 5,513,186.03 2.55%
2-3 years 23,631.87 0.01% 659,555.09 0.30%
Over 3 years 762,804.54 0.27% 99,604.54 0.05%
Total 278,545,463.04 -- 216,573,318.30 --
(2) Details of the top 5 debtors with largest balances
Debtors Book balance Proportion to the total balance of advances paid
Supplier 1 41,311,061.14 14.83%
Supplier 2 29,859,599.92 10.72%
Supplier 3 23,538,823.57 8.45%
Supplier 4 17,991,308.50 6.46%
Supplier 5 15,994,074.13 5.74%
Subtotal 128,694,867.26 40.20%
Annual Report 2019 of Zhejiang Supor Co., Ltd.
148
(6) Other receivables
Unit: Yuan
Item Closing balance Opening balance
Interest receivable 600,649.75
Other receivables 14,230,736.62 142,752,348.43
Total 14,230,736.62 143,352,998.18
(1) Interest receivable
1) Classification of interest receivable
Unit: Yuan
Item Closing balance Opening balance
Interest for time deposit 600,649.75
Total 600,649.75
2) Provision for bad debts
□ Applicable √ Not-applicable
(2) Other receivables
1) Other receivables categorized by nature
Unit: Yuan
Nature of receivables Ending book balance Beginning book balance
Deposit as security 7,778,406.29 12,562,551.19
VAT refund on export goods 395,957.97 26,278,547.43
Temporary payment receivable 7,192,490.76 7,823,097.13
Personal deposit 2,610,424.76 3,877,681.17
Insurance indemnity 96,998,784.45
Total 17,977,279.78 147,540,661.37
2) Provision for bad debts
Unit: Yuan
Provision for bad debts Phase I Phase II Phase III Total
Annual Report 2019 of Zhejiang Supor Co., Ltd.
149
Predicted credit loss in
future 12 months
Predicted credit loss in the
whole period of existence
(without credit
impairment)
Predicted credit loss in the
whole period of existence
(with credit impairment)
Balance on January 1, 2019 4,788,312.94 4,788,312.94
Balance on January 1, 2019 in the
current period —— —— —— ——
Carried back in the current period 1,042,336.68 1,042,336.68
Other changes [note] 566.90 566.90
Balance on December 31, 2019 3,746,543.16 3,746,543.16
[Note]: Increased bad debt reserve of RMB 566.90 for converted difference in foreign currency statement caused by exchange rate
fluctuations.
Changes in book balance of loss provision due to significant changes in the current period
□ Applicable √ Not-applicable
Disclosure by ages
Unit: Yuan
Ages Book balance
Within 1 year (inclusive) 11,725,321.33
1-5 years (with 2 years) 2,554,200.71
2-3 years 393,520.00
Over 3 years 3,304,237.74
3-4 years 416,515.63
4-5 years (with 5 years) 101,000.00
Over 5 years 2,786,722.11
Total 17,977,279.78
3) Provisions made, collected or reversed in current period
Provisions made in current period
Unit: Yuan
Categories Opening balance
Amount of changes in current period
Closing balance Accrued
Recovered or
carried back
Canceled after
verification others
Other receivables 4,788,312.94 1,042,336.68 566.90 3,746,543.16
Total 4,788,312.94 1,042,336.68 566.90 3,746,543.16
Annual Report 2019 of Zhejiang Supor Co., Ltd.
150
4) Other receivables actually written off in current period
Unit: Yuan
Item Amount
Other receivables actually written off in current period 0.00
5) Other receivables of the top 5 ending balances by the debtor
Unit: Yuan
Debtors Nature of
receivables Closing balance Ages
Proportion in total
balance of other
receivables at the
end of the period
Ending balance
of provision for
bad debt
Administrative Committee of Shaoxing
Keqiao Economic Development Zone
Deposit as
security 1,980,000.00
Within one
year 11.01%
Entity 1 Deposit as
security 799,996.20 Over 5 years 4.45% 799,996.20
Entity 2
Temporary
payment
receivable
753,726.94 Within one
year 4.19% 37,686.35
Special account of social insurance for
medical treatment of work-related injury
Temporary
payment
receivable
647,592.72 Within one
year 3.60% 32,379.64
Entity 3
Temporary
payment
receivable
561,542.16 Within one
year 3.12% 28,077.11
Total -- 4,742,858.02 -- 26.37% 898,139.30
7. Inventories
Have the new income standards been implemented?
□ Yes √ No
(1) Inventory classification
Unit: Yuan
Item
Closing balance Opening balance
Book balance Provision for
write-down Carrying amount Book balance
Provision for
write-down Carrying amount
Annual Report 2019 of Zhejiang Supor Co., Ltd.
151
Raw
materials 376,996,325.50 13,375,569.48 363,620,756.02
345,695,996.65 13,875,643.43 331,820,353.22
Goods in
process 79,867,603.11 79,867,603.11 85,751,268.03 85,751,268.03
Merchandise
inventory 1,717,274,161.57 41,458,937.84 1,675,815,223.73 1,875,076,011.29 39,563,320.06 1,835,512,691.23
Low value
consumables 116,061,025.42 744,780.66 115,316,244.76 97,808,785.27 44,393.35 97,764,391.92
Packages 12,993,072.38 12,993,072.38 10,804,477.54 10,804,477.54
Total 2,303,192,187.98 55,579,287.98 2,247,612,900.00 2,415,136,538.78 53,483,356.84 2,361,653,181.94
(2) Provision for obsolete stocks
Unit: Yuan
Item Opening balance
Increase Decrease
Closing balance Provision Other [note]
Reversal or
write-off Others
Raw materials 13,875,643.43 14,995,946.00 53,017.03 15,549,036.98 13,375,569.48
Merchandise
inventory 39,563,320.06 22,806,292.19 17,832.68 20,928,507.09 41,458,937.84
Low value
consumables 44,393.35 700,387.31 744,780.66
Total 53,483,356.84 38,502,625.50 70,849.71 36,477,544.07 55,579,287.98
[Note]: Increased inventory depreciation reserve of RMB 70,849.71 for converted difference in foreign currency statement caused by
exchange rate fluctuations.
8. Other current assets
Have the new income standards been implemented?
□ Yes √ No
Unit: Yuan
Item Closing balance Opening balance
Creditable VAT 139,222,321.24 80,719,521.31
Financial products 908,129,878.52
Reverse repurchase of national debts 1,001,047,257.18
Time deposits(remark) 1,591,313,150.71
Others 2,449,217.21 1,038,083.48
Total 1,732,984,689.16 1,990,934,740.49
Annual Report 2019 of Zhejiang Supor Co., Ltd.
152
Other remarks: The time deposit for the purpose of earning interest, including deposit principle RMB 1,550,000,000, interest
receivable RMB 41,313,150.71.
9. Long-term equity investments
Unit: Yuan
Investee
Opening
balance
(Carrying
amount)
Increase/decrease
Closing
balance
(Carrying
amount)
Closing
balance
of
provision
for
impairme
nt
Investme
nt
increased
Investme
nt
decreased
Investme
nt profit
or loss
recognize
d by
equity
method
Adjustme
nt in other
comprehe
nsive
income
Changes
in other
equity
Cash
dividend/
profit
declared
for
distributio
n
Provision
for
impairme
nt
Others
I. Joint ventures
II. Associated enterprises
Wuhan
Anzai
Cookware
Co., Ltd.
60,646,43
8.46
4,271,292
.16
3,000,000
.00
61,917,73
0.62
Subtotal 60,646,43
8.46
4,271,292
.16
3,000,000
.00
61,917,73
0.62
Total 60,646,43
8.46
4,271,292
.16
3,000,000
.00
61,917,73
0.62
Other remarks:
In net profits of Wuhan Anzai Cookware Co., Ltd. investment income owned by the Company determined according to
shareholding ratio in current period totaled RMB 4,843,516.71 and amount influenced by upstream transaction was RMB
-572,224.55.
10. Fixed assets
Unit: Yuan
Item Closing balance Opening balance
Fixed assets 908,982,690.72 868,297,081.06
Total 908,982,690.72 868,297,081.06
(1) Fixed assets
Unit: Yuan
Item Buildings and
structures
General
equipment Special equipment Transport facilities Total
Annual Report 2019 of Zhejiang Supor Co., Ltd.
153
I. Cost:
1. Opening balance 767,731,849.02 221,541,855.97 790,238,778.83 29,405,400.68 1,808,917,884.50
2. Increase 13,293,773.70 38,576,399.28 105,902,779.78 5,623,221.79 163,396,174.55
(1) Acquisition 3,482,814.29 27,283,361.20 61,964,982.82 5,492,963.07 98,224,121.38
(2)Transferred in from
construction in progress 9,810,959.41 11,293,038.08 43,937,796.96 130,258.72 65,172,053.17
(3) Increase from
business combination
3. Decrease 9,635,738.45 49,124,145.54 6,999,221.03 65,759,105.02
(1) Disposal or scrapping 9,635,738.45 49,124,145.54 6,999,221.03 65,759,105.02
4. Ending balance 781,025,622.72 250,482,516.80 847,017,413.07 28,029,401.44 1,906,554,954.03
II. Accumulated depreciation
1. Opening balance 238,733,772.34 161,833,212.18 520,127,856.13 19,925,962.79 940,620,803.44
2. Increase 25,164,918.80 19,055,728.54 59,242,525.43 4,221,262.65 107,684,435.42
(1) Provision 25,164,918.80 19,055,728.54 59,242,525.43 4,221,262.65 107,684,435.42
3. Decrease 9,006,726.85 35,145,594.08 6,580,654.62 50,732,975.55
(1) Disposal or scrapping 9,006,726.85 35,145,594.08 6,580,654.62 50,732,975.55
4. Ending balance 263,898,691.14 171,882,213.87 544,224,787.48 17,566,570.82 997,572,263.31
III. Provision for impairment
1. Opening balance
2. Increase
(1) Provision
3. Decrease
(1) Disposal or scrapping
4. Ending balance
IV. Carrying amount
1. Closing book value 517,126,931.58 78,600,302.93 302,792,625.59 10,462,830.62 908,982,690.72
2. Opening book value 528,998,076.68 59,708,643.79 270,110,922.70 9,479,437.89 868,297,081.06
(2) Fixed assets with certificate of titles unsettled
Unit: Yuan
Item Carrying amount Reasons for unsettlement
Function dormitory of Shaoxing Supor
Company 42,034,445.30
For all projects completed and completed the unification for
property certificates after completion and settlement procedures
Annual Report 2019 of Zhejiang Supor Co., Ltd.
154
No. 8 plant of Shaoxing Supor Company 33,376,019.20 For all projects completed and completed the unification for
property certificates after completion and settlement procedures
No.3 plant of Shaoxing Supor Company 31,309,613.98 For all projects completed and completed the unification for
property certificates after completion and settlement procedures
No.1 plant of Shaoxing Supor Company 28,718,945.47 For all projects completed and completed the unification for
property certificates after completion and settlement procedures
Function cafeteria of Shaoxing Supor
Company 14,024,978.40
For all projects completed and completed the unification for
property certificates after completion and settlement procedures
12# plant of Shaoxing Supor Co., Ltd. 13,777,379.21 For all projects completed and completed the unification for
property certificates after completion and settlement procedures
Transformer substation (35 kV) of
Shaoxing Supor Company 3,832,864.96
For all projects completed and completed the unification for
property certificates after completion and settlement procedures
No. 11 plant and structures of P&R
Products 2,744,192.96
Transfer procedure of land use right certificate not settled due to
land ownership issue
Extended plant for bakelite workshop of
P&R Products 335,866.79
Transfer procedure of land use right certificate not settled due to
land ownership issue
No. 10 workshop building and structures
of P&R Products 225,549.87
Transfer procedure of land use right certificate not settled due to
land ownership issue
Water pump building and structures of
P&R Products 152,165.08
Transfer procedure of land use right certificate not settled due to
land ownership issue
Polishing workshop of P&R Products 149,760.00 Transfer procedure of land use right certificate not settled due to
land ownership issue
Generator room of Rubber and Plastics
Product Company 3,926.89
Transfer procedure of land use right certificate not settled due to
land ownership issue
Subtotal 170,685,708.11
11. Construction in progress
Unit: Yuan
Item Closing balance Opening balance
Construction in progress 215,167,399.12 40,562,136.79
Total 215,167,399.12 40,562,136.79
(1) Details
Unit: Yuan
Item
Closing balance Opening balance
Book balance Provision for
impairment Carrying amount Book balance
Provision for
impairment Carrying amount
Annual Report 2019 of Zhejiang Supor Co., Ltd.
155
Plant construction of
Shaoxing Supor
Company
85,194,744.55 85,194,744.55 2,193,233.79 2,193,233.79
WMF factory project in
Yuhuan 83,421,885.21 83,421,885.21 720,214.14 720,214.14
Kitchen and electrical
appliances infrastructure
project
30,553,854.96 30,553,854.96
Equipment payment 9,644,260.36 9,644,260.36 21,002,105.99 21,002,105.99
Piecemeal projects 6,352,654.04 6,352,654.04 16,646,582.87 16,646,582.87
Total 215,167,399.12 215,167,399.12 40,562,136.79 40,562,136.79
(2)Changes in significant projects
Unit: Yuan
Projects Budgets Opening
balance Increase
Transferr
ed to
fixed
assets
Other
decrease
Closing
balance
Accumul
ated
investme
nt to
budget
Completi
on
percenta
ge (%)
Accumul
ated
amount
of
borrowin
g cost
capitaliz
ation
Includin
g:
amount
of
borrowin
g cost
capitaliz
ation in
current
period
Annual
capitaliz
ation rate
(%)
Capital
source
Plant
construct
ion of
Shaoxin
g Supor
Compan
y
96,460,0
00.00
2,193,23
3.79
85,031,1
81.67
2,029,67
0.91
85,194,7
44.55 90.43% 90.43%
Self-own
ed
capital
WMF
factory
project
in
Yuhuan
214,400,
000.00
720,214.
14
82,701,6
71.07
83,421,8
85.21 38.91% 38.91%
Self-own
ed
capital
Annual Report 2019 of Zhejiang Supor Co., Ltd.
156
Kitchen
and
electrical
applianc
es
infrastru
cture
project
115,580,
000.00
30,553,8
54.96
30,553,8
54.96 26.44% 26.44%
Self-own
ed
capital
Equipme
nt
payment
21,002,1
05.99
10,848,1
64.06
22,206,0
09.69
9,644,26
0.36
Self-own
ed
capital
Pieceme
al
projects
16,646,5
82.87
30,642,4
43.74
40,936,3
72.57
6,352,65
4.04
Self-own
ed
capital
Total 426,440,
000.00
40,562,1
36.79
239,777,
315.50
65,172,0
53.17
215,167,
399.12 -- -- --
12. Intangible assets
(1) Details
Unit: Yuan
Item Land use right Trademark use right Software Total
I. Cost:
1. Opening balance 402,886,490.11 47,328,811.32 47,330,585.83 497,545,887.26
2. Increase 71,801,206.42 12,870,467.36 84,671,673.78
(1) Acquisition 71,801,206.42 12,870,467.36 84,671,673.78
(2) In-house R&D
(3) Increase from business
combination
3. Decrease
(1) Disposal
4. Ending balance 474,687,696.53 47,328,811.32 60,201,053.19 582,217,561.04
II. Accumulated amortization
1. Opening balance 63,240,843.96 14,153,593.39 22,879,017.80 100,273,455.15
2. Increase 7,113,657.39 4,732,881.13 4,550,673.20 16,397,211.72
(1) Provision 7,113,657.39 4,732,881.13 4,550,673.20 16,397,211.72
Annual Report 2019 of Zhejiang Supor Co., Ltd.
157
3. Decrease
(1) Disposal
4. Ending balance 70,354,501.35 18,886,474.52 27,429,691.00 116,670,666.87
III. Provision for impairment
1. Opening balance
2. Increase
(1) Provision
3. Decrease
(1) Disposal
4. Ending balance
IV. Carrying amount
1. Closing book value 404,333,195.18 28,442,336.80 32,771,362.19 465,546,894.17
2. Opening book value 339,645,646.15 33,175,217.93 24,451,568.03 397,272,432.11
The percentage of intangible assets generated from in-house R&D in intangible assets balance is 0.00%.
13. Long-term deferred expenses
Unit: Yuan
Item Opening balance Increase Amortization Other decrease Closing balance
Improvement expenditure of
fixed assets leased for operation 3,206,258.12 1,043,030.55 2,163,227.57
System upgrading fees 78,274.18 73,199.40 5,074.78
Total 3,284,532.30 1,116,229.95 2,168,302.35
14. Deferred income tax assets/ deferred income tax liabilities
(1) Un-offset deferred income tax assets
Unit: Yuan
Item
Closing balance Opening balance
Deductible temporary
difference
Deferred income tax
assets
Deductible temporary
difference
Deferred income tax
assets
Provision for impairment of
assets 143,830,951.12 30,275,578.66 148,820,932.73 28,558,606.93
Profits not realized by internal
transaction 44,573,926.15 9,352,565.17 41,773,559.38 8,720,890.11
Accrued expenses 1,197,930,323.25 277,540,340.32 951,565,580.21 198,053,772.69
Annual Report 2019 of Zhejiang Supor Co., Ltd.
158
Accrued salary 71,753,378.99 16,944,497.60 57,585,659.02 14,394,513.56
Estimated liabilities 21,150,000.00 4,272,500.00 10,150,000.00 1,522,500.00
Share-based payment 135,922,797.01 23,859,926.04 94,420,446.30 16,644,169.15
Book-tax difference for
depreciation of fixed assets 7,866,155.15 1,966,538.80 7,545,846.83 1,886,461.71
Total 1,623,027,531.67 364,211,946.59 1,311,862,024.47 269,780,914.15
(2) Deferred tax liabilities before offset
Unit: Yuan
Item
Closing balance Opening balance
Taxable temporary
difference
Deferred income tax
liabilities
Taxable temporary
difference
Deferred income tax
liabilities
Governmental subsidy
for deferred tax 8,229,000.00 2,057,250.00 12,939,000.00 3,234,750.00
Profit and loss from fair
value changes 2,525,313.39 378,797.01
Total 10,754,313.39 2,436,047.01 12,939,000.00 3,234,750.00
15. Accounts payable
(1) Details
Unit: Yuan
Item Closing balance Opening balance
Goods payment 1,705,733,536.18 1,890,712,727.11
Equipment payment 49,987,734.84 30,610,807.18
Expenses payment 1,255,743,385.34 1,032,488,700.88
Total 3,011,464,656.36 2,953,812,235.17
16. Advances received
Have the new income standards been implemented?
□ Yes √ No
(1) Details
Unit: Yuan
Item Closing balance Opening balance
Annual Report 2019 of Zhejiang Supor Co., Ltd.
159
Goods payment 1,106,996,534.96 1,207,916,762.75
Total 1,106,996,534.96 1,207,916,762.75
17. Employee benefits payable
(1) Details
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
I. Short-term employee benefits 284,710,462.05 1,491,891,468.49 1,482,550,528.72 294,051,401.82
II. Post-employment benefits -
defined contribution plan 3,392,344.04 89,558,803.94 87,161,860.03 5,789,287.95
III. Termination benefits 931,175.65 1,035,442.06 1,072,398.50 894,219.21
Total 289,033,981.74 1,582,485,714.49 1,570,784,787.25 300,734,908.98
(2) Details of short-term employee benefits
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
1. Wage, bonus, allowance and
subsidy 260,229,050.89 1,320,938,048.40 1,316,751,257.76 264,415,841.53
2. Employee welfare fund 3,065,123.40 70,891,659.04 70,767,329.50 3,189,452.94
3. Social insurance premium 2,154,635.98 39,794,723.88 38,481,702.20 3,467,657.66
Including: Medicare premium 1,894,741.79 33,690,362.79 32,565,951.66 3,019,152.92
Occupational injuries
premium 116,750.70 2,565,724.66 2,533,427.28 149,048.08
Maternity premium 143,143.49 3,538,636.43 3,382,323.26 299,456.66
4. Housing accumulation funds -257,850.20 31,115,642.00 30,839,204.72 18,587.08
5. Trade union fund and employee
education fund 19,519,501.98 29,151,395.17 25,711,034.54 22,959,862.61
Total 284,710,462.05 1,491,891,468.49 1,482,550,528.72 294,051,401.82
(3) Details of defined contribution plan
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
1. Basic endowment insurance
premium 3,211,010.24 87,049,350.15 84,687,260.45 5,573,099.94
Annual Report 2019 of Zhejiang Supor Co., Ltd.
160
2. Unemployment insurance premium 181,333.80 2,509,453.79 2,474,599.58 216,188.01
Total 3,392,344.04 89,558,803.94 87,161,860.03 5,789,287.95
(4) Termination benefits
The termination benefits paid by the Group as a result of the termination of labor relations during the year were RMB
1,072,398.50 and the unpaid amount payable at the end of the year was RMB 894,219.21.
18. Taxes and rates payable
Unit: Yuan
Item Closing balance Opening balance
Value-added tax (VAT) 4,978,757.32 25,040,283.48
Enterprise income tax 151,162,623.73 122,594,961.38
Individual income tax 3,441,139.07 2,782,370.19
Urban maintenance and construction tax 3,531,652.87 2,066,097.55
Housing property tax 4,043,597.20 2,985,716.63
Land use tax 496,420.60 2,373,258.39
Stamp tax 2,402,242.33 2,782,575.78
Water conservancy special fund 12,741.47 12,741.46
Education surcharge 1,518,315.16 903,810.43
Local education surcharge 1,004,261.66 524,078.59
Total 172,591,751.41 162,065,893.88
19. Other payables
Unit: Yuan
Item Closing balance Opening balance
Other payables 93,696,839.73 95,355,792.24
Total 93,696,839.73 95,355,792.24
(1) Other payables
1) Listing by nature
Unit: Yuan
Item Closing balance Opening balance
Deposit as security 64,440,771.49 62,267,376.78
Annual Report 2019 of Zhejiang Supor Co., Ltd.
161
Temporary receipts payable 13,180,587.11 19,709,879.44
Others 16,075,481.13 13,378,536.02
Total 93,696,839.73 95,355,792.24
20.Other current liability
Whether the new revenue guidelines have been implemented
□ YES √ NO
Unit:Yuan
Item Closing balance Opening balance
Endorsed bank acceptance unrecognized 290,585,764.00
Total 290,585,764.00
21. Long-term employee benefits payable
(1) Details
Unit: Yuan
Item Closing balance Opening balance
II. Termination benefits 3,683,907.11 4,524,667.94
Total 3,683,907.11 4,524,667.94
22. Estimated liabilities
Have the new income standards been implemented?
□ Yes √ No
Unit: Yuan
Item Closing balance Opening balance Reasons for the balance
Pending lawsuit 21,150,000.00 10,150,000.00 Please refer to Note 14 commitments and
contingencies for details
Total 21,150,000.00 10,150,000.00 --
23. Share capital
Unit: Yuan
Opening balance
Movements (+, -)
Closing balance New shares
Shares
bonus
Converted
capital Others Subtotal
Annual Report 2019 of Zhejiang Supor Co., Ltd.
162
Total shares 821,243,960.00 -124,050.00 -124,050.00 821,119,910.00
Other remarks:
Share capital decreased by RMB 124,050 in this period, which is due to the repurchase and cancellation of the 124,050
restricted shares of resigned incentive objects at a price of RMB 1/share.
24. Capital reserve
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
Equity premium 56,961,402.25 56,961,402.25
Other capital reserve 139,529,530.66 55,103,819.44 56,961,402.25 137,671,947.85
Total 139,529,530.66 112,065,221.69 56,961,402.25 194,633,350.10
Other notes (including increase and decrease in current period and variation reason):
1)Equity premium increased RMB 56,961,402.25, carry forward capital reserve of payment in viable shares confirmed during
waiting period.
2)Other capital reserve was increased by RMB 55,103,819.44 in current period. Increase reason is as follows: ① Equity-settled
share-based payment RMB 41,132,741.22 in current period was included in capital reserve (other capital reserve). For details, please
see Note XIII Description on share-based payment. ② Pre-tax amount deducted of share-based payment in current period was
allowed to exceed the cost related to share-based payment as specified in accounting standards. Income tax effect RMB
13,971,078.22 of the excess portion was included in capital reserve-other capital reserve directly, wherein corresponding impact of
deferred income tax assets is RMB 7,469,723.92, and the current income tax impact RMB 6,501,354.30.
Other capital reserve decreased by RMB 56,961,402.25,carry forward to equity premium.
25. Treasury stock
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
Treasury stock 3,868,950.00 1,438,172.56 964,650.00 4,342,472.56
Total 3,868,950.00 1,438,172.56 964,650.00 4,342,472.56
Other notes (including increase and decrease in current period and variation reason):
1) The increase in this period was due to the Group’s repurchase of 20,000 shares of the Company’s shares from the secondary
market in a centralized bidding during the reporting period.
2) Treasure stock decreased by RMB 964,650.00 in current period. Increase reason is as follows: ① according to the resolutions of
the eighth meeting of the sixth board of directors and the eleventh meeting of the sixth the board of directors of the Company, nine
incentive objects of the Company did not meet the incentive conditions because they left the Company, so a total of 124,050
restricted stocks were repurchased at the price of 1 yuan / share, and repurchase obligation was reduced by RMB 124,050
accordingly; ② restricted shares granted under the 2017 restricted stock incentive plan: the unlocking conditions for unlock part in
the second phase of first batch of shares granted and unlock part in the first phase of second batch of shares granted were satisfied, so
repurchase obligations was released by RMB 756,400 and RMB 84,200.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
163
26. Other comprehensive income
Unit: Yuan
Item Opening balance
Amount incurred during this period
Closing
balance
Current period
cumulative
before income
tax
Minus:
OCI
carried
forward
transferred
to profit or
loss
Minus:
OCI
carried
forward
transferred
to retained
earnings
Min
us:
inco
me
tax
expe
nses
Attributable to
parent
company
Attributable
to
non-controll
ing interest
II. Other
comprehensive
incomes to be
reclassified into the
profit and loss
-24,490,354.80 4,157,206.81 4,176,908.60 -19,701.79 -20,313,446.20
Translation
difference of financial
statements in foreign
currencies
-24,490,354.80 4,157,206.81 4,176,908.60 -19,701.79 -20,313,446.20
Total of other
comprehensive
income
-24,490,354.80 4,157,206.81 4,176,908.60 -19,701.79 -20,313,446.20
27. Surplus reserve
Unit: Yuan
Item Opening balance Increase Decrease Closing balance
Statutory surplus reserve 401,648,181.64 401,648,181.64
Total 401,648,181.64 401,648,181.64
Description on surplus reserve, including increase/decrease in this period and reason for the change:
Statutory surplus reserve will not be extracted, as statutory surplus reserve accumulatively extracted in this period reaches 50%
of the Company’s registered capital.
28. Undistributed profit
Unit: Yuan
Item Current period Preceding period
Retained earnings at last period end before adjustment 4,573,275,094.31 3,940,017,051.62
Total undistributed profits at the beginning of adjustment period (increase +,
decrease -) 41,355,573.60
Annual Report 2019 of Zhejiang Supor Co., Ltd.
164
Retained profits at period beginning after adjustment 4,573,275,094.31 3,981,372,625.22
Plus: Net profit attributable to owners of the parent company 1,919,914,191.25 1,669,873,440.00
Minus: withdrawal of statutory surplus reserve 7,755,043.93
Ordinary share dividends payable 1,049,517,775.98 968,565,192.80
Surplus reserve of the period when merger of enterprises under the
same control occurs is not enough to restore 41,355,573.60
Premium adjustment at business merger date under the same control 61,847,271.38
Net profit adjustment before business merger under the same control 2,747,889.20
Plus: Surplus reserve transferred back after grant of restricted stock 4,300,000.00
Undistributed profits at the end of the period 5,443,671,509.58 4,573,275,094.31
Adjustment of undistributed profits at period beginning:
1). Due to retroactive adjustment of Accounting Standards for Enterprises and relevant new regulations, undistributed profit at period
beginning was changed by RMB 0.00.
2). Due to change of accounting policies, undistributed profit at period beginning was changed by RMB 0.00.
3). Due to rectification of major accounting errors, undistributed profit at period beginning was changed by RMB 0.00.
4). Due to change of combination scope resulted from same control, undistributed profit at period beginning was changed by RMB
0.00.
5). Due to other adjustment, undistributed profit at period beginning was changed by RMB 0.00.
29. Operating revenue/cost
Unit: Yuan
Item Amount incurred during this period Amount incurred during prior period
Income Cost Income Cost
Revenue from main
operations 19,681,479,953.85 13,519,174,731.86 17,702,377,864.31 12,201,039,582.04
Revenue from other
operations 171,997,929.12 149,053,664.10 148,886,937.41 140,899,383.89
Total 19,853,477,882.97 13,668,228,395.96 17,851,264,801.72 12,341,938,965.93
Have the new income standards been implemented?
□ Yes √ No
30. Taxes and surcharge
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Urban maintenance and construction tax 60,663,892.00 53,901,913.32
Annual Report 2019 of Zhejiang Supor Co., Ltd.
165
Education surcharge 26,471,082.59 24,088,126.49
Housing property tax 7,938,929.63 7,236,246.32
Land use tax 893,035.02 3,809,268.21
Vehicle and vessel use tax 64,322.23 70,025.00
Stamp tax 11,170,640.90 9,686,030.79
Local education surcharge 16,497,089.28 14,943,745.55
Environmental protection tax 39,254.86 29,181.27
Total 123,738,246.51 113,764,536.95
31. Selling expenses
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Advertising, sales promotion, and special gift expenses 2,122,727,108.43 1,747,785,121.49
Transportation expenses 464,415,237.50 421,457,488.47
Employee benefits 434,909,258.53 453,157,885.75
Office and business traveling expenses 125,202,755.25 135,044,085.82
Others 58,788,682.29 55,844,276.21
Total 3,206,043,042.00 2,813,288,857.74
32. Administrative expenses
Unit: Yuan
Item Amount incurred during this
period
Amount incurred
during prior period
Employee benefits 184,709,254.32 174,253,748.77
Office, business traveling and depreciation and amortization expenses 80,834,445.23 71,112,237.69
Share incentive expenses 41,132,741.22 61,238,303.85
Others 39,056,475.68 38,206,249.33
Total 345,732,916.45 344,810,539.64
33. Research and development expenses
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Annual Report 2019 of Zhejiang Supor Co., Ltd.
166
Employee benefits 164,340,887.49 147,150,801.83
Trial production experiment cost and consumption expenditure 199,665,290.17 167,585,531.84
New product design cost 34,516,435.87 33,166,909.95
Patent and external institutional fees 32,604,830.62 31,912,286.02
Others 21,433,466.53 22,817,203.15
Total 452,560,910.68 402,632,732.79
34. Financial expenses
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Interest expenses 1,045,657.32 2,474,506.93
Interest revenue -43,916,125.68 -7,928,053.60
Gain or loss on foreign exchange -1,354,584.16 -933,971.86
Handling charges and others 899,360.25 842,722.07
Total -43,325,692.27 -5,544,796.46
35. Other income
(1) Classification of other income
Item Amount incurred
during this period
Amount incurred during
prior period
Amount included in non-recurring
profit or loss
Government subsidies related to
day-to-day activities
165,824,087.78 109,921,377.76 165,824,087.78
Refund of individual income tax
withholding commission
814,590.57 1,367,732.83 814,590.57
Total 166,638,678.35 111,289,110.59 166,638,678.35
(2) Governmental subsidy included in current profits and losses
Subsidy item Amount incurred
during this period
Amount incurred during
prior period
Related to assets/income
Project subsidy 40,819,494.21 13,806,047.36 Related to benefits
Government reward 124,350,124.97 94,167,860.00 Related to benefits
Tax returns 654,468.60 1,947,470.40 Related to benefits
Total 165,824,087.78 109,921,377.76
36. Investment income
Unit: Yuan
Annual Report 2019 of Zhejiang Supor Co., Ltd.
167
Item Amount incurred during
this period
Amount incurred during
prior period
Investment income from long-term equity investments under the equity
method 4,843,516.71 3,196,717.87
Interest from deposit 41,313,150.71
Investment income from financial products 20,262,602.73 78,084,794.72
Monetary fund income 3,392,413.95
Income from reverse repurchase of government bond 834,034.68 2,222,134.69
Total 67,253,304.83 86,896,061.23
37. Gains on changes in fair value
Unit: Yuan
Resource for gains from changes of fair value Amount incurred during
this period
Amount incurred during
prior period
Variation in fair value of financial products 4,563,042.79 -10,288,760.43
Total 4,563,042.79 -10,288,760.43
38. Credit impairment loss
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Loss on bad debts of other receivables 1,042,336.68
Accounts receivable impairment loss -3,482,193.99
Total -2,439,857.31
39. Assets impairment loss
Have the new income standards been implemented?
□ Yes √ No
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
I. Bad debts -9,857,180.80
II. Inventory write-down loss -38,502,625.50 -36,150,895.19
Total -38,502,625.50 -46,008,075.99
Annual Report 2019 of Zhejiang Supor Co., Ltd.
168
40. Assets disposal income
Unit: Yuan
Source of assets disposed income Amount incurred during
this period
Amount incurred during
prior period
Profits for non-current assets disposal Profits of non-current assets (loss “-”) -1,711,476.60 -327,730.99
Total -1,711,476.60 -327,730.99
41. Non-operating revenue
Unit: Yuan
Item Amount incurred during this
period
Amount incurred during
prior period
Amount included in
non-recurring profit or
loss
Gains from disposal of dead non-current
assets 864,221.60 1,860,346.57 864,221.60
Including: Gains from scrap of fixed assets 864,221.60 1,860,346.57 864,221.60
Default fine revenue 2,935,045.75 2,714,222.58 2,935,045.75
Turn-over of accrued liabilities 5,000,000.00
Others 771,540.37 1,569,952.34 771,540.37
Total 4,570,807.72 11,144,521.49 4,570,807.72
Governmental subsidies recorded in the current profits:
Unit: Yuan
Subsidy item Granted by Granted for Nature
Impacting the
profit and
loss in
current year
or not?
Special or
not?
Amount
incurred
during this
period
Amount
incurred
during prior
period
Related to
assets/income
Project
subsidy Subsidy No 1,811.38 0.00
Related to
benefits
42. Non-operating expenditures
Unit: Yuan
Item Amount incurred during this
period
Amount incurred during
prior period
Amount included in
non-recurring profit or
loss
fire losses 10,255,653.45 10,255,653.45
Annual Report 2019 of Zhejiang Supor Co., Ltd.
169
Damage and scrapping loss of non-current
assets 1,257,922.52 1,031,319.85 1,257,922.52
Donation expenditures 2,232,402.01 4,017,297.08 2,232,402.01
Indemnity expenditure 11,000,000.00 3,845,880.17 11,000,000.00
Default fine expenditure 825,749.38
Others 2,668,126.15 1,820,587.99 2,668,126.15
Total 27,414,104.13 11,540,834.47 27,414,104.13
43. Income tax expenses
(1) Details
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Current period income tax expenses 445,564,728.28 378,871,621.82
Deferred income tax expenses -87,760,011.51 -66,114,598.59
Total 357,804,716.77 312,757,023.23
(2) Reconciliation of accounting profit to income tax expenses
Unit: Yuan
Item Amount incurred during
this period
Total profit 2,273,457,833.79
Income tax expenses based on statutory/applicable tax rate [Note] 341,018,675.07
Effect of different tax rate applicable to subsidiaries 59,128,725.94
Effect of prior income tax reconciliation -9,683,595.79
Effect of non-taxable income -726,527.51
Effect of non-deductible costs, expenses and losses 7,449,277.91
Effect of deducible temporary differences or deductible losses not recognized -91,989.50
Effect of tax incentives -40,890,017.35
Other effects deemed sales 1,600,168.00
Income tax expense 357,804,716.77
Note: Calculation based on the Company’s income tax rate 15% this year
Annual Report 2019 of Zhejiang Supor Co., Ltd.
170
44. Other comprehensive income
See VII -26 of the Footnotes for details.
45. Notes to items of the consolidated cash flow statement
(1) Other cash receipts related to operating activities
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Receipt of government grants 165,824,087.78 107,973,907.36
Insurance indemnity received 86,114,820.00
Receipt of deposit and staff reserve fund loan 6,051,401.31 17,667,805.58
Interest revenue and others 49,696,219.73 12,212,228.52
Total 307,686,528.82 137,853,941.46
(2) Other cash payments related to operating activities
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Cash payment for sales expense 1,240,130,679.46 963,368,264.48
Cash payment for management expenses 170,908,917.41 196,405,685.63
Cash payment for research and development expenses 291,951,045.71 255,481,930.96
Supply chain financial account 74,000,000.00
Donations payment 2,232,402.01 4,017,297.08
Other payments 4,190,372.30 9,516,000.95
Total 1,783,413,416.89 1,428,789,179.10
(3) Other cash receipts related to investing activities
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Cash receipt from recovery of financial products, principal and interest of
time deposit 2,345,900,000.00 2,226,000,000.00
Total 2,345,900,000.00 2,226,000,000.00
Annual Report 2019 of Zhejiang Supor Co., Ltd.
171
(4) Other cash payments related to investing activities
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Cash payment for financial products and time deposit 2,810,000,000.00 2,347,047,257.18
Total 2,810,000,000.00 2,347,047,257.18
(5) Other cash payments related to financing activities
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Repurchase of shares 1,438,172.56
Total 1,438,172.56
46. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: Yuan
Supplement information Amount of this period Amount of prior period
1. Reconciliation of net profit to cash flow from operating activities: -- --
Net profit 1,915,653,117.02 1,668,781,233.33
Plus: Provision for assets impairment loss 38,502,625.50 46,008,075.99
Provision for credit impairment loss 2,439,857.31
Depreciation of fixed assets, oil and gas assets, productive biological assets 107,684,435.42 104,088,054.46
Amortization of intangible assets 16,397,211.72 15,628,305.91
Amortization of long-term deferred expenses 1,116,229.95 1,479,259.98
Loss on disposal of fixed assets, intangible assets and other non-current
assets (“-” for gains) 1,711,476.60 327,730.99
Fixed assets retirement loss (“-” for gains) 393,700.92 -829,026.72
Losses on changes in fair value (“-” for gains) -4,563,042.79 10,288,760.43
Financial expenses (“-” for gains) -1,354,584.16 -933,971.86
Investments losses (“-” for gains) -67,253,304.83 -86,896,061.23
Decrease of deferred tax assets (“-” for increase) -86,961,308.52 -64,864,598.59
Increase of deferred tax liabilities (“-” for decrease) -798,702.99 -1,250,000.00
Decrease in inventories (“-” for increase) 76,039,031.28 -194,682,912.07
Annual Report 2019 of Zhejiang Supor Co., Ltd.
172
Decrease in operating receivables (“-” for increase) -259,843,882.12 -233,511,053.87
Increase of operating payables (“-” for increase) 26,769,425.59 688,404,294.24
Others -32,991,308.78 61,620,653.85
Net cash flows from operating activities 1,732,940,977.12 2,013,658,744.84
2. Significant investing and financing activities not related to cash receipts
and payments: -- --
3. Net changes in cash and cash equivalents: -- --
Cash at the end of the period 1,234,132,657.16 1,400,762,574.83
Minus: Cash at the beginning of the period 1,400,762,574.83 853,579,891.21
Net increase in cash and cash equivalents -166,629,917.67 547,182,683.62
(2) Cash and cash equivalents
Unit: Yuan
Item Closing balance Opening balance
I. Cash 1,234,132,657.16 1,400,762,574.83
Including: Cash on hand 91,345.89 55,510.80
Cash in bank on demand for payment 1,227,662,240.97 1,380,282,615.31
Other cash and bank balances on demand for payment 6,379,070.30 20,424,448.72
III. Balance of cash and cash equivalents at the end of the period 1,234,132,657.16 1,400,762,574.83
47. Assets with title or use right restrictions
Unit: Yuan
Item Closing carrying amount Reasons for restrictions
Monetary capital 74,000,000.00 Supply chain deposit
Total 74,000,000.00
48. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Unit: Yuan
Item Closing balance in foreign
currencies Exchange rate RMB equivalent
Cash and bank balances -- --
Including: USD 39,982,933.82 6.9762 278,928,942.92
EUR 7,194,190.09 7.8155 56,226,192.65
Annual Report 2019 of Zhejiang Supor Co., Ltd.
173
HKD
GBP 25.35 9.0726 229.99
VND 40,832,489,931.03 0.000301088 12,294,172.73
SGD 1,363,904.37 5.1739 7,056,704.82
IDR 2,926,141,194.00 0.000502 1,468,922.88
Accounts receivable -- --
Including: USD 27,947,510.62 6.9762 194,967,423.59
EUR 1,392,369.82 7.7558 10,798,941.85
HKD
VND 41,492,149,753.04 0.000301088 12,492,788.38
IDR 6,357,271,890.00 0.000502 3,191,350.49
Long-term borrowings -- --
Including: USD
EUR
HKD
Accounts payable
Including: USD 1,842,966.18 6.9762 12,856,900.64
EUR 55,752.00 7.8155 435,729.76
VND 70,458,031,832.35 0.000301088 21,214,067.89
SGD 165,814.00 5.1739 857,905.05
IDR 3,292,496,932.27 0.000502 1,652,833.46
VIII. Changes in the Consolidated Scope
1. Changes in the consolidated scope for other reasons
Description on the changes in the consolidated scope for other reasons (such as newly established subsidiaries, liquidation
subsidiaries, etc.) and related conditions:
Newly established subsidiaries:
Name Time of new inclusion in the
consolidated scope
Net assets at the end of
the year
Net profits from the
consolidation date to the
end of the year
Zhejiang Supor Kitchen & Electric Appliance
Co., Ltd. January 02, 2019 105,131,806.17 5,131,806.17
PT Groupe SEB Indonesia MSD May 24, 2019 5,600,135.84 -3,422,175.47
Zhejiang Supor Water Heater Co., Ltd. November 15, 2019 0.00 0.00
Annual Report 2019 of Zhejiang Supor Co., Ltd.
174
IX. Equity in Other Entities
1. Equity in subsidiaries
(1)Structure of enterprise Group
Subsidiaries
Main
operating
place
Place of
registratio
n
Business
nature
Shareholding ratio
Acquisition method Direct Indirect
Zhejiang Supor Electrical Appliance
Manufacturing Co., Ltd. [Note 1] Hangzhou Hangzhou
Manufactu
ring
industry
100.00% Establishment
Zhejiang Shaoxing Supor Domestic Electrical
Appliances Co., Ltd. [Note 1] Shaoxing Shaoxing
Manufactu
ring
industry
100.00% Establishment
Supor (Vietnam) Co., Ltd. [Note 1] Vietnam Vietnam
Manufactu
ring
industry
100.00% Establishment
Wuhan Supor Recycling Co., Ltd. [Note 1] Wuhan Wuhan Commerce 100.00% Establishment
Wuhan Supor Cookware Co., Ltd. [Note 1]&
[Note 2] Wuhan Wuhan
Manufactu
ring
industry
25.00% 75.00% Establishment
Hangzhou Omegna Commercial Trade Co.,
Ltd. [Note 1] Hangzhou Hangzhou Commerce 100.00% Establishment
Shanghai Supor Cookware Marketing Co.,
Ltd. [Note 1] Shanghai Shanghai Commerce 100.00% Establishment
Wuhan Supor Pressure Cooker Co., Ltd.
[Note 1] Wuhan Wuhan
Manufactu
ring
industry
100.00% Merger of enterprises
under the same control
Zhejiang Supor Plastic & Rubber Co., Ltd.
[Note 1] Yuhuan Yuhuan
Manufactu
ring
industry
100.00% Merger of enterprises
under the same control
Wuhan Supor Co., Ltd. [Note 1] Wuhan Wuhan
Manufactu
ring
industry
100.00% Merger of enterprises
under the same control
Yuhuan Supor Cookware Sales Co., Ltd.)
[Note 1] Yuhuan Yuhuan Commerce 100.00%
Merger of enterprises
under the same control
SEADA [Note 1] Singapore Singapore Commerce 51.00% Merger of enterprises
under the same control
Annual Report 2019 of Zhejiang Supor Co., Ltd.
175
AFS Vietnam Management Co., Ltd. [Note 1]
[Note 3] Vietnam Vietnam Commerce 100.00%
Merger of enterprises
under the same control
WMF (Shanghai) Co., Ltd [Note 1] Shanghai Shanghai
Manufactu
ring
industry
100.00% Establishment
Zhejiang WMF Housewares Co., Ltd. [Note
1] Yuhuan Yuhuan
Manufactu
ring
industry
100.00% Establishment
Zhejiang Shaoxing Supor Housewares Co.,
Ltd. [Note 1] Shaoxing Shaoxing
Manufactu
ring
industry
100.00% Establishment
Shanghai SEB Electrical Appliances Co., Ltd.
[Note 1] Shanghai Shanghai
Manufactu
ring
industry
100.00% Merger of enterprises
under the same control
Zhejiang Supor Kitchen & Electric Appliance
Co., Ltd. [Note 1] [Note 4] Shaoxing Shaoxing
Manufactu
ring
industry
100.00% Establishment
PT GROUPE SEB INDONESIA MSD [Note
5] Indonesia Indonesia Commerce 67.00% Establishment
Zhejiang Supor Water Heater Co., Ltd. [Note
1] [Note 6] Shaoxing Shaoxing
Manufactu
ring
industry
52.00% Establishment
Other remarks:
Note 1: The following are abbreviations short names: Zhejiang Household Appliances Company, Shaoxing Supor Company, Vietnam
Supor Company, Wuhan Recycling Company, Wuhan Cookware Company, Omegna Company, Shanghai Sales Company, Wuhan
Pressure Cooker Company, Rubber and Plastics Product Company, Wuhan Supor Company, Yuhua Cookware Sales Company,
SEADA, AFS, WMF (Shanghai) Co., Ltd., WMF Housewares Company, Shaoxing Supor Housewares Company, Shanghai SEB
Electrical Appliances Co., Ltd., Supor Kitchen & Electric Appliance and Supor Water Heater.
Note 2: The Company is subsidiary of Wuhan Supor Pressure Cooker Co., Ltd.; of which, Wuhan Supor Pressure Cooker Co., Ltd.
holds 75% shares and the Company holds 25% shares.
Note 3: AFS is a subsidiary, of which shares are totally held by SEADA.
Note 4: Zhejiang Supor Kitchen & Electric Appliance Co., Ltd. is a subsidiary of the Company, established in 2019, mainly engaged
in the production and sales of kitchen & electric appliance products of the Company.
Note 5: PT GROUPE SEB INDONESIA MSD was established jointly by SEADA, a subsidiary of the Company and PT
MULTIFORTUNA in Indonesia this year. SEADA holds 67% shares and PT MULTIFORTUNA holds 33% shares.
Note 6: Zhejiang Supor Water Heater Co., Ltd. is a joint venture established by the Company and Supor Group with their own
planned capital of RMB 52 million and RMB 48 million in 2019 and the Company holds 52% of its shares. The company was
registered but not funded in 2019.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
176
(2) Significant not wholly-owned subsidiaries
Unit: Yuan
Subsidiaries
Holding proportion
of non-controlling
interest
Profit or loss
attributable to
non-controlling
interest
Dividend declared
to non-controlling
interest
Balance of rights
and interests of
minority
shareholders at the
end of the period
SEADA [Note 1] 49.00% -3,120,349.07 6,329,832.38
PT GROUPE SEB INDONESIA MSD 33.00% -1,140,725.16 1,866,711.95
Supor Water Heater [Note 2] 48.00%
Other remarks:
Note 1: SEADA includes its subsidiaries AFS and PT GROUPE SEB INDONESIA MSD.
Note 2: Supor Water Heater was registered, but it did not have capital injections or substantial businesses as of December 31,
2019.
(3) Main financial information of significant not wholly-owned subsidiaries
Unit: Yuan
Subsidia
ries
Closing balance Opening balance
Current
assets:
Non-curr
ent
assets
Total
assets
Current
liabilities
:
Non-curr
ent
liabilities
Total
liabilities
Current
assets:
Non-curr
ent
assets
Total
assets
Current
liabilities
:
Non-curr
ent
liabilities
Total
liabilities
SEADA 21,457,5
96.67
859,538.
05
22,317,1
34.72
7,159,92
6.09
45,546.7
3
7,205,47
2.82
8,773,29
4.86
107,082.
07
8,880,37
6.93
9,175,46
1.44
9,175,46
1.44
PT
GROUP
E SEB
INDON
ESIA
MSD
9,941,38
0.85
770,516.
08
10,711,8
96.93
5,111,76
1.09
5,111,76
1.09
Unit: Yuan
Subsidiaries
Amount incurred during this period Amount incurred during prior period
Total sales Net profit
Total of
comprehensi
ve incomes
Cash flows
from
operating
activities
Total sales Net profit
Total of
comprehensi
ve incomes
Cash flows
from
operating
activities
SEADA 5,355,037.80 -7,441,895.02 -7,193,584.45 -7,057,645.24 9,405,682.88 -2,001,352.43 -2,221,841.59 1,316,729.92
Annual Report 2019 of Zhejiang Supor Co., Ltd.
177
PT GROUPE
SEB
INDONESIA
MSD
3,254,719.28 -3,422,175.47 -3,435,864.17 -214,897.94
2. Equity in joint venture or associates
(1) Significant joint venture or associates
Name of joint venture or
associate
Main operating
place
Place of
registration
Business
nature
Shareholding ratio Accounting method
for the investment in
joint venture or
associates
Direct Indirect
Wuhan Anzai Cookware Co.,
Ltd. Wuhan Wuhan
Manufacturi
ng industry 30.00% Equity method
(2) Main financial information of significant joint venture
Unit: Yuan
Closing balance/current
period cumulative
Opening
balance/preceding period
comparative
Current assets: 125,140,246.10 125,392,481.72
Non-current assets 51,182,661.63 52,434,024.36
Total assets 176,322,907.73 177,826,506.08
Current liabilities: 44,375,191.09 50,016,524.98
Non-current liabilities 840,000.00 940,000.00
Total liabilities 45,215,191.09 50,956,524.98
Equity attributable to owners of parent company 131,107,716.64 126,869,981.10
Proportionate share in net assets 39,332,314.99 38,060,994.33
--Goodwill 22,585,444.13 22,585,444.13
Carrying amount of investments in joint ventures 61,917,759.12 60,646,438.46
Total sales 347,620,937.57 335,723,922.59
Net profit 14,237,735.54 9,394,374.33
Total of comprehensive incomes 14,237,735.54 9,394,374.33
Dividends received from associates in current year 3,000,000.00
Annual Report 2019 of Zhejiang Supor Co., Ltd.
178
X. Risks Related to Financial Instruments
The Company aims to seek the appropriate balance between the risks and benefits from its use of financial instruments and to
mitigate the adverse effects that the risks of financial instruments have on the Company’s financial performance. Based on such
objectives, the Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits.
The Company has exposure to the following risks from its use of financial instruments, which mainly include: credit risk,
liquidity risk, and market risk. Management have deliberated and approved policies concerning such risks, and details are:
(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge
an obligation.
The Company’s credit risk is primarily attributable to receivables. In order to control such risks, the Company has taken the
following measures:
1. Financing of receivables
Financing of receivables of the Company is mainly bank acceptance receivable. The Company conducts ongoing monitoring on
receivables, to avoid significant risks in bad debts.
2. Accounts receivable
The Company only conducts business with credible and well-reputed third parties. According to the Company’s policies, credit
evaluations are performed on all customers to determine the credit limit and terms applicable to the customers. In addition, the
Company conducts ongoing monitoring on receivables, to avoid significant risks in bad debts.
(1) Continue to strengthen risk awareness, strengthen risk management of accounts receivable. And strengthen internal control
of customer credit policy management. Customer credit policy adjustments are required to pass the necessary approval procedures.
(2) Keep detailed business records and accounting work. And use the records as important reference for future credit rating.
Keep real time updating on customers’ information and learn their latest credit situation, in order to make suitable credit policies.
As the Company only conducts business with credible and well-reputed third parties, normally, does not obtain collateral from
customers. The Company manages credit risk aggregated by customers. At the end of the year, the Company’s accounts receivable
from related party SEB ASIA LTD. accounted for 55.23% of closing balance (68.28% as of December 31, 2018), and the Company’s
account receivables are expected to have less credit risk. As the Company’s credit risks fall into several business partners and
customers, as of December 31, 2019, 18.90% (December 31, 2018: 10.76%) of the total accounts receivable was due from the five
largest customers of the Company after deducting receivables from related party SEB ASIA LTD. The Company has no significant
central credit risk.
3. Other receivables
Other receivables of the Company are mainly interest receivable and deposits receivable, etc. The Company performed
collective management and ongoing monitoring on such receivables and related business to avoid significant risks in bad debts.
(1) Analysis of receivables not past due but impaired and receivables past due but not impaired are as follows:
Items
Closing balance
Neither past due nor
impaired
Past due but not impaired Total
Within one year 1-2 years Over 2 years
financial
receivable
1,186,980,101.71 1,186,980,101.71
Subtotal 1,186,980,101.71 1,186,980,101.71
(Continued)
Items Opening balance
Neither past due nor Past due but not impaired Total
Annual Report 2019 of Zhejiang Supor Co., Ltd.
179
impaired Within one year 1-2 years Over 2 years
financial
receivable
701,179,379.24 701,179,379.24
Subtotal 701,179,379.24 701,179,379.24
(2) Please refer to notes to receivables for receivables with provision for impairment made on individual basis.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated with cash or
other financial assets settlement. Liquidity risk is possibly attributable to failure in selling financial assets at fair value on a timely
basis, or failure in collecting liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimated
cash flows.
In order to control such risk, the Company optimizes financing structures, and finally maintains a balance between financing
sustainability and flexibility.
Financial instruments classified based on remaining time period till maturity
Items Closing balance
Carrying amount Within one year 1-3 years Over 3 years
Financial assets
Cash and bank balances 1,308,132,657.16 1,308,132,657.16
Transactional financial assets 1,264,563,042.79 1,264,563,042.79
Accounts receivable 1,796,909,432.40 1,796,909,432.40
Financing of receivables 1,186,980,101.71 1,186,980,101.71
Other receivables 14,230,736.62 14,230,736.62
Other current assets(note) 1,591,313,150.71 1,591,313,150.71
Subtotal 7,162,129,121.39 7,162,129,121.39
Financial debts
Accounts payable 3,011,464,656.36 3,011,464,656.36
Other payables 93,696,839.73 93,696,839.73
Other current liabilities 290,585,764.00 290,585,764.00
Subtotal 3,395,747,260.09 3,395,747,260.09
Note: bank deposit to earning interest as purpose
(Continued)
Items Opening balance
Carrying amount Within one year 1-3 years Over 3 years
Financial assets
Cash and bank balances 1,416,762,574.83 1,416,762,574.83
Transactional financial assets 435,241,736.40 435,241,736.40
Accounts receivable 1,727,619,712.96 1,727,619,712.96
Financing of receivables 701,179,379.24 701,179,379.24
Other receivables 143,352,998.18 143,352,998.18
Other current assets [Note] 1,909,177,135.70 1,909,177,135.70
Subtotal 6,333,333,537.31 6,333,333,537.31
Financial debts
Annual Report 2019 of Zhejiang Supor Co., Ltd.
180
Accounts payable 2,953,812,235.17 2,953,812,235.17
Other payables 95,355,792.24 95,355,792.24
Subtotal 3,049,168,027.41 3,049,168,027.41
Note: They are the financial products purchased and reverse repurchase of national debts.
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value of financial instruments or future cash flows
due to changes in market price. Market risk mainly includes interest risk and foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value of financial instruments or future cash flows due
to changes in market interest. As of December 31, 2019, balance of borrowings is zero, the Company’s gross profit and equity will
not be significantly affected by interest risk.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in exchange rate. The Company’s foreign currency risk relates mainly to
foreign currency monetary assets and liabilities. When short-term imbalance occurred to foreign currency assets and liabilities, the
Company may conduct foreign exchange hedge or trade foreign currency at market exchange rate when necessary, in order to
maintain the net risk exposure within an acceptable level.
Please refer to notes to others - monetary items in foreign currencies for details in foreign currency financial assets and liabilities
at the end of the year.
XI. Fair Value Disclosure
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
Unit: Yuan
Item Fair value as of the balance sheet date
Level 1 Level 2 Level 3 Total
I. Recurring fair value measurement -- -- -- --
(I).Trading financial assets
2. Financial assets measured at fair value with
variation included in current profits and losses 1,264,563,042.79 1,264,563,042.79
(II) financial receivable
Financial assets measured at fair value with
variation included in OCI 1,186,980,101.71 1,186,980,101.71
Total assets continuously measured at fair value 1,186,980,101.71 1,264,563,042.79 2,451,543,144.50
II. Non-continued measurement of fair value -- -- -- --
2. Basis for determining the market value of continuous and non-continuous first-level fair value
measurement items
The first-level input value is the unadjusted quoted price of the same asset or liability that can be obtained on the measurement
date in an active market.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
181
3. Valuation techniques and qualitative and quantitative information on important parameters are used for
continuous and non-continuous second-level fair value measurement items
The second-level input value is the directly or indirectly observable input value of related assets or liabilities except for
first-level input value.
4. Valuation techniques and qualitative and quantitative information on important parameters are used for
continuous and non-continuous third-level fair value measurement items
The second-level input value is the unobservable input value of relevant asset or liability.
XII. Related Party Relationships and Transactions
1. Parent company
Name of company Place of
registration Business nature Registered capital
Holding
proportion over
the Company (%)
Voting right
proportion over the
Company (%)
SEB INTERNATIONALE S.A.S France Investment
company EUR 830 Million 81.19% 81.19%
Remarks on the parent company
Business scope of the parent company: equity participation in all kinds of French and overseas enterprises (regardless operation
purpose), namely, purchase and subscription of shares, bonds, company shares and interest, various securities and marketable
securities, and transfer of such securities or notes, all financial operations related to equity participation, purchase, manufacturing and
selling of home appliance for the purpose of distribution and rendering of relevant services, all activities directly or indirectly
contributing to the realization of these operations, particularly in the areas of movable properties, real estate, finance, commerce and
industry operation.
The Company’s ultimate controlling party is SEB S.A.
2. Company’s subsidiaries
Please refer IX -1. “Equity in subsidiaries” of the Footnotes for details on the Company’s subsidiaries.
3. Joint ventures and associates of the Company
Please refer to IX -1. “Equity in joint venture or associates” of the Footnotes for details on the Company’s significant joint ventures
and associates.
Details of other joint ventures or associates carrying out related party transactions with the Company in current period or in preceding
period but with balance in current period are as follows:
Joint ventures or associates Relationships with the Company
Wuhan Anzai Cookware Co., Ltd. Associated enterprise
Annual Report 2019 of Zhejiang Supor Co., Ltd.
182
4. Other related parties of the Company
Related party Relationships with the Company
SEB S.A. Holding shareholder of SEB Internationale S.A.S.
SEB ASIA LTD. Same controlling shareholder
TEFAL S.A.S Same controlling shareholder with the controlling
shareholder
ALL-CLAD METALCRAFTERS LLC Same controlling shareholder
S.A.S. SEB Same controlling shareholder with the controlling
shareholder
SEB INTERNATIONAL SERVICE S.A.S. Same controlling shareholder with the controlling
shareholder
LAGOSTINA S.P.A. Same controlling shareholder
GROUPE SEB COLOMBIA Same controlling shareholder
GROUPE SEB MOULINEX Same controlling shareholder with the controlling
shareholder
GROUPE SEB EXPORT Same controlling shareholder with the controlling
shareholder
SEB DEVELOPPMENT SAS Same controlling shareholder with the controlling
shareholder
ROWENTA FRANCE Same controlling shareholder with the controlling
shareholder
IMUSA USA LLC Same controlling shareholder
CALOR SAS Same controlling shareholder with the controlling
shareholder
Supor Group Company controlled by related natural person
Zhejiang Supor sanitary ware Co.,Ltd Company controlled by related natural person
Hangzhou Supor Property Management Co., Ltd. Company controlled by related natural person
ETHERA Same controlling shareholder with the controlling
shareholder
GROUPE SEB CZECH REPUBLIC Same controlling shareholder
WMF CONSUMER ELECTRIC GMBH Same controlling shareholder
WMF Consumer Goods (Shanghai) Co, Ltd. Same controlling shareholder
WMF Groupe Gmbh Same controlling shareholder
VIETNAM FAN JOINT STOCK COMPANY Same controlling shareholder
GROUPE SEB SINGAPORE Same controlling shareholder
GROUPE SEB THAILAND Same controlling shareholder
Annual Report 2019 of Zhejiang Supor Co., Ltd.
183
Emsa Taicang Co., Ltd. Same controlling shareholder
Heshan Demei Tableware Co., Ltd. Same controlling shareholder
ROWENTA WERKE GMBH Same controlling shareholder with the controlling
shareholder
EMSA GmbH Same controlling shareholder
GROUPE SEB USA Same controlling shareholder
GROUPE SEB AUSTRALIA Same controlling shareholder
GROUPE SEB CANADA Same controlling shareholder
GROUPE SEB INDIA Same controlling shareholder
GROUPE SEB ANDEAN S.A. Same controlling shareholder
GROUPE SEB IBERICA Same controlling shareholder
GROUPE SEB SCHWEIZ GMBH Same controlling shareholder
5. Related party transactions
(1)Purchase and sale of goods, rendering and receiving services
Purchase of goods and receiving of services
Unit: Yuan
Connected party
Contents of
connected
transaction
Amount
incurred during
this period
Transaction
quota granted
Whether or
not
exceeding
transaction
quota
Amount incurred
during prior
period
Wuhan Anzai Cookware Co., Ltd. Finished
products 245,220,959.34 No 278,718,891.03
Wuhan Anzai Cookware Co., Ltd. Accessories 104,545,838.53 No 56,964,064.41
GROUPE SEB EXPORT Finished
products 11,242,535.92 No 9,009,323.67
TEFAL S.A.S Accessories 6,798,154.99 No 2,759,558.13
LAGOSTINA S.P.A. Finished
products 1,310,236.48 No 7,629,949.47
SEB INTERNATIONAL SERVICE S.A.S. Finished
products 1,210,295.64 No 410,326.68
SEB ASIA LTD. Finished
products 985,244.58 No 2,111,421.69
SEB ASIA LTD. Accessories 367,364.53 No 547,103.55
GROUPE SEB MOULINEX Accessories 8,492,592.09 No 14,967,658.68
Annual Report 2019 of Zhejiang Supor Co., Ltd.
184
GROUPE SEB MOULINEX Rework fee 71,104.80 No 49,883.12
S.A.S. SEB Rework fee 31,411.59 No 911,697.39
S.A.S. SEB Quality fee 1,882,303.68 No
CALOR SAS Accessories 8,903,210.20 No 10,104,713.87
Heshan Demei Tableware Co., Ltd. Finished
products 435,652.26 No 4,956,693.79
GROUPE SEB SINGAPORE Finished
products 2,444,699.88 No 2,745,538.54
GROUPE SEB THAILAND Finished
products 2,222,688.50 No 489,092.78
EMSA GmbH Finished
products 8,760,509.59 No 8,881,726.51
Emsa Taicang Co., Ltd. Finished
products 3,737,221.03 No 2,108,718.38
ETHERA Accessories 3,792,487.79 No 5,777,826.64
ROWENTA WERKE GMBH Accessories No 12,093.00
WMF Groupe Gmbh Finished
products 27,500,644.34 No 42,443,948.76
WMF Consumer Goods (Shanghai) Co, Ltd. Finished
products 4,892,834.63 No 77,169,073.47
WMF Consumer Goods (Shanghai) Co, Ltd. Fixed assets No 8,496,036.92
WMF Consumer Goods (Shanghai) Co, Ltd. Intangible
assets No 677,879.70
WMF Consumer Goods (Shanghai) Co, Ltd. Accessories No 53,439.10
Supor Group Fixed assets No 844,533.33
WMF CONSUMER ELECTRIC GMBH Mold cost 26,286.53 No 141,372.83
Sale of goods and rendering of services
Unit: Yuan
Connected party
Contents of
connected
transaction
Amount incurred during
this period
Amount incurred during
prior period
SEB ASIA LTD. Finished products 4,571,567,935.23 4,245,470,246.60
SEB ASIA LTD. Accessories 2,945,723.59 3,496,490.51
S.A.S. SEB Finished products 21,504,270.70 22,126,878.32
S.A.S. SEB Accessories 1,117,754.60 1,590,195.06
TEFAL S.A.S Finished products 8,283,933.50 10,016,328.72
TEFAL S.A.S Accessories 11,013,151.21 12,408,978.39
Annual Report 2019 of Zhejiang Supor Co., Ltd.
185
GROUPE SEB MOULINEX Finished products 27,111,444.73 32,505,062.04
Supor Group Finished products 4,792,732.86 4,225,709.25
SEB INTERNATIONAL SERVICE S.A.S. Finished products 8,491,976.82 6,466,938.84
SEB INTERNATIONAL SERVICE S.A.S. Accessories 1,857,282.35 1,174,828.14
GROUPE SEB COLOMBIA Accessories 205,282.47
LAGOSTINA S.P.A. Finished products 158,162.97 321,628.73
LAGOSTINA S.P.A. Accessories 1,461,963.44 772,212.09
ALL-CLAD METALCRAFTERS LLC Finished products 639,387.68 472,101.78
IMUSA USA LLC Finished products 3,037,634.48 3,336,772.36
WMF Consumer Goods (Shanghai) Co, Ltd. Finished products 1,016,908.56 4,702,968.31
WMF Groupe Gmbh Finished products 12,656,493.40 9,806,824.39
WMF CONSUMER ELECTRIC GMBH Finished products 104,474.64 12,596,349.95
GROUPE SEB USA Finished products 92,615.91
GROUPE SEB CANADA Finished products 14,373,634.36 8,258,615.96
VIETNAM FAN JOINT STOCK COMPANY Finished products 21,848,291.97 42,436,818.64
VIETNAM FAN JOINT STOCK COMPANY Accessories 19,582.19
CALOR SAS Finished products 32,007,829.63 24,548,678.46
GROUPE SEB ANDEAN S.A. Accessories 270,422.66
Wuhan Anzai Cookware Co., Ltd. Finished products 780,395.22
(2) Related party leases
Related party leases
The Group serves as the Lessee:
Unit: Yuan
Lessor Lessees Types of
leased assets
Current period
cumulative
Lease income
Lease income for
the same period
last year
Supor Group Co. Ltd.
The Company Real estate 645,141.71 885,363.93
Wuhan Cookware Real estate 2,572,703.54 2,691,026.51
Omegna Real estate 119,048.36 217,930.23
Zhejiang Supor Electrical Real estate 4,452,501.97 2,341,023.89
Shaoxing Supor Real estate 793,645.49
P&R Land 11,391.84 35,884.32
Zhejiang Supor sanitary ware
Co.,Ltd
The Company Real estate 1,743,600.00
WMF Consumer Goods
(Shanghai) Co, Ltd.
Shanghai WMF Enterprise
Development Co., Ltd. Real estate
1,138,629.03
Annual Report 2019 of Zhejiang Supor Co., Ltd.
186
(3) Key management’s emoluments
Item Amount incurred during
this period
Amount incurred during
prior period
Key management’s emoluments RMB 17,891,800 RMB 18,300,900
(4) Other related party transactions
(1) Water and electricity fee
Unit:
Yuan
Selling parties Purchasing parties Current period cumulative Preceding period
comparative
Supor Group
Zhejiang Supor Electrical 619,288.84 519,922.81
Wuhan Cookware 188,019.89 183,524.33
Omegna 52,195.55 25,085.00
The Company 662,484.30
The Company Supor Group Co. Ltd. 621,572.07
WMF Consumer Goods (Shanghai)
Co, Ltd.
Shanghai WMF Enterprise
Development Co., Ltd.
18,300.00
(2) Property management, maintenance and berth fees
Unit: Yuan
Service renderer Purchasing parties
Current period cumulative
Property management,
maintenance and berth
fees
Current period cumulative
Property management,
maintenance and berth
fees
Hangzhou Supor Property
Management Co., Ltd.
Wuhan Cookware 329,992.65 426,820.63
Omegna 10,462.70 23,185.90
The Company 46,497.05 45,714.29
Zhejiang Supor Electrical 505,457.45 340,404.83
Shaoxing Supor 115,583.15
Supor Group The Company 7,090.00
Zhejiang Supor Electrical 114,285.71
(3) Decoration fee
Unit: Yuan
Service renderer Purchasing parties Current period cumulative Current period cumulative
Supor Group Zhejiang Supor Electrical 458,715.60
(4) Consulting fee
Unit: Yuan
Service renderer Purchasing parties Current period cumulative Preceding period comparative
SEB ASIA LTD. The Company 2,829,732.00 2,529,030.93
Wuhan Cookware 1,431,456.00 1,431,454.00
Annual Report 2019 of Zhejiang Supor Co., Ltd.
187
Shaoxing Supor 2,483,567.58 2,008,188.00
Zhejiang Supor
Electrical
1,296,336.00
SEB DEVELOPPMENT SAS Zhejiang Supor
Electrical
648,168.00
(5) Cost of international shopping center
Unit: Yuan
Service renderer Purchasing parties Current period cumulative Preceding period comparative
SEB DEVELOPPMENT SAS
Shaoxing Supor 2,375,497.97 7,342,440.00
Zhejiang Supor
Electrical
1,008,853.46 5,677,560.00
Wuhan Cookware 13,060,421.33 11,674,880.19
(6) Test service, etc.
Unit: Yuan
Service renderer Purchasing parties Amount incurred this year Amount incurred during prior
period
Shanghai SEB Electrical
Appliances Co., Ltd.
CALOR SAS 115,164.17
SEB ASIA LTD. 151,209.43 200,591.50
(7) Pursuant to the Technical License Contract entered into between Wuhan Supor Cookware Co., Ltd. and TEFAL S.A.S on January
21, 2009, TEFAL S.A.S licensed Wuhan Supor Cookware Co., Ltd. compensated use of its patent of “heating element covered with
color-changing decorative layer”. According to related terms in the contract signed by both parties, use charges are accrued at 3% of
revenue from sales of products licensed. In the current period, Wuhan Supor Cookware Co., Ltd. should pay TEFAL S.A.S
technology use charges of RMB 2,521,601.55, and as of December 31, 2019, the amount has been fully paid.
(8) Pursuant to the Technical License Contract entered into between Wuhan Supor Cookware Co., Ltd. and SEB S.A. on December
29, 2013, SEB S.A. licensed Wuhan Supor Cookware Co., Ltd. compensated use of its patent of “with the safety valve of elastomer
used in pressure cooking” and other five utility patents. According to related terms in the contract signed by both parties, use charges
are accrued at 3% of revenue from sales of products licensed. In the current period, Wuhan Supor Cookware Co., Ltd. should pay
SEB S.A. technology use charges of RMB 445,647.31, and as of December 31, 2019, a balance of RMB 45,527.92 has not been paid.
(9) Pursuant to the Trademark License entered into between Wuhan Supor Cookware Co., Ltd. and LAGOSTINA SPA. on December
15, 2014, LAGOSTINA SPA licensed Wuhan Supor Cookware Co., Ltd. compensated use of its trademark “LAGE”. According to
related terms in the contract signed by both parties, use charges are accrued at 4% of revenue from sales of products licensed. In the
current period, Wuhan Supor Cookware Co., Ltd. should pay LAGOSTINA SPA. trademark use charges of RMB 701,137.28, and as
of December 31, 2019, a balance of RMB 728,296.42 has not been paid.
(10) Pursuant to the Trademark License Agreement entered into between Omegna and LAGOSTINA SPA. on December 5, 2016,
LAGOSTINA SPA licensed Omegna compensated use of its trademark “LAGE”. According to related terms in the contract signed by
both parties, use charges are accrued at 4% of revenue from sales of products licensed. In the current period, Omegna should pay
LAGOSTINA SPA. trademark use charges of RMB 1,192,695.74, and as of December 31, 2019, a balance of RMB 3,463,890.50 has
not been paid.
(11) Shaoxing Supor Company purchased and used particles product of air purifier and relevant technology in accordance with
Agreement on Purchase and Using for Particles of Air Purifier signed by Shaoxing Supor Company on April 25, 2016 with ETHERA.
According to relevant terms in the contract signed by both parties, Shaoxing Supor Company should pay technology transfer fee
RMB 595,278.73 to ETHERA in current period, which was calculated as per corresponding unit price of actual total sales. Until
December 31, 2019, the remaining RMB 189,393.10 had not been paid yet.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
188
(12) According to the Supplementary Agreement to Land Use Right Transfer Agreement signed by the Company and Supor Group on
March 13, 2019, the Company purchases and uses land use rights of Plot A and Plot B located in Nanyou Industrial Zone, Damaiyu
Sub-district, Yuhuan City, Zhejiang Province based on compensation. According to relevant terms of the contract signed by the two
parties, the Company should pay a total of RMB 3,149,900.00 for the transfer of land use rights to Supor Group in this period, and as
of December 31, 2019, the amount had been fully paid.
6. Receivables and payables by connected parties
(1) Items receivable
Unit: Yuan
Projects Connected party
Closing balance Opening balance
Book balance Provision for
bad debts Book balance
Provision for
bad debts
Accounts
receivable SEB ASIA LTD. 1,046,184,084.11 52,309,204.21 1,249,284,389.96 62,464,219.50
S.A.S. SEB 10,576,480.27 528,824.01 6,116,273.98 305,813.70
TEFAL S.A.S 5,688,007.14 284,400.36 4,817,107.99 240,855.40
SEB INTERNATIONAL SERVICE
S.A.S. 2,283,192.69 114,159.63 2,080,491.52 104,024.58
CALOR SAS 9,842,684.27 492,134.21 3,191,100.46 159,555.02
ALL-CLAD METALCRAFTERS
LLC 162,888.10 8,144.41
GROUPE SEB MOULINEX 6,310,183.58 315,509.18 7,684,705.59 384,235.28
IMUSA USA LLC 497,161.68 24,858.08 814,697.53 40,734.88
Supor Group 52,182.43 2,609.12
WMF Groupe Gmbh 4,358,529.06 217,926.45
WMF CONSUMER ELECTRIC
GMBH 10,156.51 507.83
WMF Consumer Goods (Shanghai)
Co, Ltd. 156,791.86 7,839.59 39,821.28 1,991.06
GROUPE SEB CANADA 3,171,017.29 158,550.86 2,941,503.15 147,075.16
VIETNAM FAN JOINT STOCK
COMPANY 14,037,492.72 701,874.64 18,422,541.99 921,127.10
GROUPE SEB ANDEAN S.A. 103,282.64 5,164.13
Wuhan Anzai Cookware Co., Ltd. 279,935.00 13,996.75
GROUPE SEB COLOMBIA 16,128.52 806.43
LAGOSTINA S.P.A. 808,790.65 40,439.53 282,685.00 14,134.25
Annual Report 2019 of Zhejiang Supor Co., Ltd.
189
Total 1,099,949,260.41 54,997,463.01 1,300,265,046.56 65,013,252.34
Advance payment Emsa Taicang Co., Ltd. 1,675.55
Total 1,675.55
Other receivables CALOR SAS 320,668.55 16,033.43 70,509.21 3,525.46
GROUPE SEB CANADA 1,575.24 78.76
GROUPE SEB USA 17,984.30 899.22
GROUPE SEB IBERICA 483.19 24.16
ROWENTA WERKE GMBH 662.08 33.10
SEB DEVELOPPMENT SAS 25,917.00 1,295.85 22,318.72 1,115.94
SEB ASIA LTD. 262,014.17 13,100.71 602,824.12 30,141.21
SEB SAS 14,062.62 703.13
GROUPE SEB MOULINEX 104,733.16 5,236.66 35,909.94 1,795.50
GROUPE SEB SCHWEIZ GMBH 1,868.84 93.44
Supor Group 165,000.00 17,250.00
WMF Consumer Goods (Shanghai)
Co, Ltd. 281,687.30 14,084.37 967,056.93 48,352.85
GROUPE SEB AUSTRALIA 4,465.20 223.26
GROUPE SEB INDIA 1,451.28 72.56
TEFAL S.A.S 8,363.76 418.19 3,817.01 190.85
SAS SEB 10,546.49 527.31
Total 1,201,504.08 69,075.20 1,722,415.03 86,120.76
(2) Payables
Unit: Yuan
Projects Connected party Ending book balance Beginning book balance
Accounts payable Wuhan Anzai Cookware Co., Ltd. 47,066,107.40 41,395,612.51
WMF Groupe Gmbh 4,206,147.56 6,502,457.67
GROUPE SEB EXPORT 6,458,074.15 578,269.92
TEFAL S.A.S 2,751,174.27 1,667,074.34
S.A.S. SEB 45,527.92 2,059,713.75
LAGOSTINA S.P.A. 4,796,584.50 4,606,043.81
GROUPE SEB MOULINEX 1,330,922.16 1,744,530.94
SEB DEVELOPPMENT SAS 13,566,500.80 1,754,929.73
SEB ASIA LTD. 3,324,140.11 559,487.91
Annual Report 2019 of Zhejiang Supor Co., Ltd.
190
GROUPE SEB THAILAND 560,631.73 303,195.50
GROUPE SEB SINGAPORE 105,936.87 638,267.83
CALOR SAS 1,623,212.28 2,039,908.83
EMSA GmbH 3,420,473.77 9,012,505.84
ROWENTA WERKE GMBH 12,093.00
Emsa Taicang Co., Ltd. 2,212,442.45
WMF Consumer Goods (Shanghai) Co, Ltd. 4,906.00 243,602.40
Heshan Demei Tableware Co., Ltd. 2,495,040.00
SEB INTERNATIONAL SERVICE S.A.S. 140,694.92 155,792.44
ETHERA 435,729.76 159,535.39
Total 89,836,764.20 78,140,504.26
Advances received Supor Group 725,467.73 1,057,128.72
WMF Consumer Goods (Shanghai) Co, Ltd. 508,280.13
Total 725,467.73 1,565,408.85
Other payables SAS SEB 3,687,688.05 325,734.53
GROUPE SEB UK 570,676.03
CALOR SAS 272,408.03 56,731.90
SEB S.A. 42,182.81 4,330,219.17
WMF Consumer Goods (Shanghai) Co, Ltd. 275,372.73
Wuhan Anzai Cookware Co., Ltd. 20,000.00
Total 4,592,954.92 4,988,058.33
XIII. Share-based Payment
1. Overall information
√ Applicable □ Not-applicable
Unit: Yuan
Total equity instruments granted in current period 0.00
Total equity instruments vested in current period 840,600.00
Total equity instruments expired in current period 124,050.00
The range of exercise prices of equity instruments at the end of the period and the
remaining contractual life
Stock Incentive Plan for 2017: RMB 1/share,
2.93 years
Other remarks:
Pursuant to the “Proposal for Restricted Share Incentive Plan (Revised Draft) of Zhejiang Supor Co., Ltd. and Its Summary
(hereinafter referred to as “2017 Incentive Plan”) ratified in the Second Interim General Meeting of Shareholders 2017 via
deliberation held on November 16, 2017, the Company was to grant 4,300,000 restricted shares to incentive objects, and repurchased
Annual Report 2019 of Zhejiang Supor Co., Ltd.
191
4,300,000 share capital successfully during the period from November 6, 2017 to November 28, 2017. The Company granted
3,874,000 shares initially on December 4, 2017 and granted the remainder 426,000 shares on August 30, 2018, with price of shares
granted for RMB 1/share.
The Incentive Plan 2017 is valid for five years from the grant date, within which, the first 12 months are the lock-up period for
first grant, and the following 48 months are the unlocking period, which may be unlocked in four phases provided that all conditions
for unlocking are met. Incentive targets may apply for unlocking 10%, 20%, 30% and 40% of the total restricted shares respectively
in 12 months, 24 months, 36 months and 48 months after the grant date. The lock-up period of reservation is 12 months, and the
unlocking period is 36 months, which may be unlocked in three phases provided that all conditions for unlocking are met. Incentive
targets may apply for unlocking 20%, 30% and 50% of the total restricted shares respectively in 12 months, 24 months and 36
months after the grant date. As of December 31, 2019, the aforesaid incentive plan has a remaining term of 2.93 years.
According to the Proposal on Unlocking of Restricted Stock within the First Unlock Period of 2017 Restricted Stock Incentive
Plan deliberated and adopted at the 6th Session of Sixth Board of Directors, totally 387,400 shares of restricted stock were unlocked
in 2018.
According to the Proposal on Unlocking of Restricted Stock within the Second Unlock Period and of Remaining Restricted
Stock within the First Unlock Period of 2017 Restricted Stock Incentive Plan deliberated and adopted at the 11th Session of Sixth
Board of Directors, 756,400 and 84,200 shares of restricted stock, totaling 840,600 shares, were unlocked in 2019.
The 6th Session of Sixth Board of Directors adopted the Proposal on Repurchasing and Canceling a Part of Restricted Stock.
For disqualification of three Incentive Objects due to their resignation, the Company has repurchased and canceled 43,650 shares of
Restricted Stock at the price of 1 yuan per share.
The 8th Session of Sixth Board of Directors adopted the Proposal on Repurchasing and Canceling a Part of Restricted Stock.
For disqualification of three Incentive Objects due to their resignation, the Company has repurchased and canceled 39,150 shares of
Restricted Stock at the price of 1 yuan per share.
The 11th Session of Sixth Board of Directors adopted the Proposal on Repurchasing and Canceling a Part of Restricted Stock.
For disqualification of three Incentive Objects due to their resignation, the Company has repurchased and canceled 84,900 shares of
Restricted Stock at the price of 1 yuan per share.
2. Equity-settled share-based payment
√ Applicable □ Not-applicable
Unit: Yuan
Determination method for fair value of equity instruments
on Grant Date According to the market price on the Grant Date.
Determination method for the best estimate of the number
of equity instruments expected to vest
Based on the corresponding equity instruments of incentive targets, the
performance of the Company and the forecast of future performance
of the Company
The significant difference between this period estimate and
last period None
Capital reserve accumulated due to equity-settled
share-based payment -53,314,954.13
Total expenses incurred due to equity-settled share-based
payment transactions 41,132,741.22
Other remarks:
Annual Report 2019 of Zhejiang Supor Co., Ltd.
192
Note 1: Of which, accumulative amount of 2017 equity incentive plan at period-begin is RMB -108,418,773.57, current
occurrence amount is RMB 55,103,819.44 and accumulative amount is RMB -53,314,954.13.
Note 2: 2017 Equity Incentive Plan:
According to actual occurrence amount of domestic sales income and domestic operating profits in 2019, the 2019 incentive
plan above can reach unlocking assessment index of restricted shares in Proposal on 2017 Restricted Share Incentive Plan (Revised
Draft) of Zhejiang Supor Co., Ltd. and Its Summary, and the share-based payment recognized in current period totals RMB
41,132,741.22.
XIV. Commitments and contingencies
1. Significant commitments
Significant commitments at the date of balance sheet
(1) Capital commitment
Items Ending balance
Commitment on foreign investment having been signed but not determined in financial
statement [Note 1]
RMB 52,000,000
Commitment on purchase long-term investment having been signed but not determined in
financial statement
RMB 123,850,000
Total RMB 175,850,000
[Note 1] According to the 14th meeting of the sixth board of directors of the Company, the Company and Supor Group, which is its
related party, jointly founded the joint venture Zhejiang Supor Water Heater Co., Ltd. with investment from their own capital of
RMB 52,000,000 and RMB 48,000,000 respectively on November 15, 2019 for the production, sales and installation of water heaters.
Registered capital of the company is RMB 100,000,000, and no contribution had been made by the Company as of December 31,
2019.
2. Contingencies
(1) Significant contingencies at the date of balance sheet
1) Contingent liabilities arising from pending litigation and arbitration and their financial impact
In 2016, a non-governmental patent holder filed a lawsuit to the subsidiary Shaoxing Supor Company in the name of infringing
its patent. This case has not been settled yet. Based on the principle of conservatism, the Company withdrew RMB 10,150,000
accrued liabilities.
In 2019, landlord of the leased warehouse of the subsidiary Zhejiang Supor Electrical filed a lawsuit against Zhejiang Supor
Electrical for damaging its property due to fire, and a third party company brought legal proceedings against the Company and its
subsidiary Wuhan Supor Cookware Co., Ltd. for infringing its patent; neither of the above two cases is conclusive. Based on the
principle of conservatism, the Company accrued estimated liabilities totaling RMB 11,000,000 for the above cases.
(2) A statement should be given even if the Company has no significant contingencies to disclose.
The Company has no significant contingencies to disclose.
Annual Report 2019 of Zhejiang Supor Co., Ltd.
193
XV. Events after the Balance Sheet Date
1. Description on other events after the balance sheet date
(1) Profit distribution
According to the Profit Distribution Preplan 2019 approved at the 16th Session of the sixth Board of Directors of the Company
on April 28, 2020, based on the 821,099,910 shares at the end of 2019 (total capital stock of 821,119,910 shares at the end of 2019
deducted by 20,000 shares of repurchased shares in the Company’s special stock repurchase account), the Company will distribute all
shareholders cash dividends of RMB 13.30 per 10 shares (tax-inclusive) and the total cash dividends is RMB 1,092,062,880.30. No
bonus share will be distributed or conversion from capital reserves to share capital is made this year. The undistributed profits of
parent company at the end of the reporting period are RMB 1,100,501,967.72 including the cash to be distributed, i.e., RMB
1,092,062,880.30.
During the period from the disclosure of this profit distribution preplan to the actual implementation, if the Company’s capital
stock changes due to conversion of convertible bonds into stocks, share repurchases, equity incentive exercise, and refinancing and
new share listing, it will be executed based on the changed capital stock, and the above distribution ratio remains unchanged.
The proposal needs to be submitted to the Annual General Meeting of Shareholders for 2019 Fiscal Year for approval after
approved by the Board of Directors.
(2) Effects of coronavirus disease (COVID-19)
Since the outbreak nationwide in January 2020, COVID-19 has had negative effects on the whole macro-economy. The
Company has given positive response to and has strictly implemented local governments’ regulations and requirements on epidemic
prevention and control to epidemic prevention and production. The Company and its subsidiaries have successively resumed
production in good order. It is estimated by the Company that the COVID-19 pandemic and related prevention and control measures
will have temporary effects on the production and operation of the Company to a certain extent, depending on the progress of global
pandemic prevention and control, duration and prevention and control measures taken by countries. The Company has taken a range
of measures to reduce the adverse effects of the pandemic on the Company as much as possible.
XVI. Other Major Events
1. Segment information
(1) Determination basis and accounting policy of report segment
The Group establishes operating segment according to internal organizational structure, management requirement and internal
report system; determines report segment and disclose segment information based on Operating Segment.
Operating Segment refers to the Group’s organization meeting following conditions: ① The organization can yield income
and cost in daily activity; ② The Group’s management can appraise operating result of the organization regularly, so as to allocate
resources on a targeted basis and evaluate its performance; ③ The Group can obtain financial information, operating result, cash
flow and other relevant accounting information of the organization. Two or more operating segments, which have similar economic
characteristics and meet a certain condition, can be combined into an operating segment.
The Group, with main product focused on cookware and SDA (small domestic appliances) in kitchen, establishes report
segment based on product and geographic segments and assets and liabilities shared by product segments is unable to be clearly
Annual Report 2019 of Zhejiang Supor Co., Ltd.
194
distinguished.
(2) Financial information of reportable segments
1) Products segment
Unit: Yuan
Item Cookware Electrical
appliances
Plastic & rubber Inter-segment
offsetting
Total
Revenue from
main operations
6,143,262,075.25 13,527,606,591.73 164,741,299.19 154,130,012.32 19,681,479,953.85
Cost of main
operations
4,009,722,169.67 9,515,401,543.38 148,134,927.95 154,083,909.14 13,519,174,731.86
2) Geographic segment
Unit: Yuan
Items Domestic Overseas Inter-segment
offsetting
Total
Revenue from
main operations 14,571,549,991.86 5,115,304,812.25 5,374,850.26 19,681,479,953.85
Cost of main
operations 9,368,234,110.58 4,156,354,772.83 5,414,151.55 13,519,174,731.86
XVII. Notes to items of parent company financial statements
1. Accounts receivable
(1) Details on categories
Unit: Yuan
Categories
Closing balance Opening balance
Book balance Provision for bad
debts Carrying
amount
Book balance Provision for bad
debts Carrying
amount Amount Ratio Amount
Provision
proportio
n
Amount Ratio Amount
Provision
proportio
n
Including:
Receivables for
provision made on
the basis of portfolio
355,544,
502.20 100.00%
14,361,8
41.96 4.04%
341,182,6
60.24
431,493,4
10.37 100.00%
18,419,55
4.79 4.27%
413,073,85
5.58
Including:
Portfolio 1: age
portfolio
287,236,
839.11 80.79%
14,340,3
36.16 5.00%
272,896,5
02.95
368,391,0
95.74 85.38%
18,419,55
4.79 5.00%
349,971,54
0.95
Annual Report 2019 of Zhejiang Supor Co., Ltd.
195
Portfolio 2: low-risk
portfolio
21,505,7
98.70 6.05%
21,505.8
0 0.10%
21,484,29
2.90
46,081,90
1.97 10.68%
46,081,901.
97
Portfolio 3: merged
related parties
portfolio
46,801,8
64.39 13.16%
46,801,86
4.39
17,020,41
2.66 3.94%
17,020,412.
66
Total 355,544,
502.20 100.00%
14,361,8
41.96 4.04%
341,182,6
60.24
431,493,4
10.37 100.00%
18,419,55
4.79 4.27%
413,073,85
5.58
Provision made on an individual basis: None
Provision made on the basis of portfolio: Portfolio 1: age portfolio
Unit: Yuan
Name Closing balance
Book balance Provision for bad debts Provision proportion
Within one year 287,236,839.11 14,340,336.16 5.00%
Total 287,236,839.11 14,340,336.16 --
If bad-debt provision for accounts receivable is made based on the general model of expected credit losses, please disclose the
relevant information about the bad-debt provision with reference to the disclosure of other receivables:
□ Applicable √ Not-applicable
Disclosure by ages
Unit: Yuan
Ages Book balance
Within 1 year (inclusive) 355,544,502.20
Total 355,544,502.20
(2) Bad debt provisions accrued, recovered or carried back in current period
Provisions made in current period
Unit: Yuan
Categories Opening balance
Amount of changes in current period
Closing balance Accrued
Recovered or
carried back
Canceled after
verification
Provision for bad debts for
accounts receivable 18,419,554.79 4,057,712.83 14,361,841.96
Total 18,419,554.79 4,057,712.83 14,361,841.96
(3) Accounts receivable actually written off in current period
Unit: Yuan
Item Amount
Annual Report 2019 of Zhejiang Supor Co., Ltd.
196
Accounts receivable actually written off in current period 0.00
(4)Details of the top 5 debtors with largest balances
Unit: Yuan
Debtors Ending balance of accounts
receivable
Proportion in the total
ending balance of accounts
receivable
Ending balance of
provision for bad debt
SEB ASIA LTD. 277,111,605.92 77.94% 13,855,580.30
Shanghai WMF Enterprise Development
Co., Ltd. 44,369,781.92 12.48%
Customer 1 4,381,346.73 1.23% 4,381.35
SAS SEB 3,594,235.00 1.01% 179,711.75
GROUPE SEB CANADA INC 3,171,017.29 0.89% 158,550.86
Total 332,627,986.86 93.55%
(2) Other receivables
Unit: Yuan
Item Closing balance Opening balance
Interest receivable 5,062.50
Other receivables 110,807,092.72 110,202,344.50
Total 110,807,092.72 110,207,407.00
(1) Interest receivable
1) Classification of interest receivable
Unit: Yuan
Item Closing balance Opening balance
Interest for time deposit 5,062.50
Total 5,062.50
(2) Other receivables
1) Other receivables categorized by nature
Unit: Yuan
Nature of receivables Ending book balance Beginning book balance
Annual Report 2019 of Zhejiang Supor Co., Ltd.
197
Deposit as security 2,518,020.63
Export rebate receivable 17,675,941.90
Fund pool 109,322,670.70 89,066,630.19
Temporary payment receivable 2,013,476.48 1,515,057.07
Personal deposit 447,661.45 507,646.73
Total 111,783,808.63 111,283,296.52
2) Provision for bad debts
Unit: Yuan
Provision for bad debts
Phase I Phase II Phase III
Total Predicted credit loss in
future 12 months
Predicted credit loss in
the whole period of
existence (without credit
impairment)
Predicted credit loss in
the whole period of
existence (with credit
impairment)
Balance on January 1, 2019 1,080,952.02 1,080,952.02
Balance on January 1, 2019 in the
current period —— —— —— ——
Carried back in the current period 104,236.11 104,236.11
Balance on December 31, 2019 976,715.91 976,715.91
□ Applicable √ Not-applicable
Disclosure by ages
Unit: Yuan
Ages Book balance
Within 1 year (inclusive) 110,840,325.45
1-5 years (with 2 years) 30,000.00
2-3 years 5,000.00
Over 3 years 908,483.18
4-5 years (with 5 years) 54,000.00
Over 5 years 854,483.18
Total 111,783,808.63
3) Provisions made, collected or reversed in current period
Provisions made in current period
Unit: Yuan
Categories Opening balance Amount of changes in current period Closing balance
Annual Report 2019 of Zhejiang Supor Co., Ltd.
198
Accrued Recovered or carried
back
Canceled after
verification
Other receivables 1,080,952.02 104,236.11 976,715.91
Total 1,080,952.02 104,236.11 976,715.91
4) Other receivables actually written off in current period
Unit: Yuan
Item Amount
Other receivables actually written off in current period 0.00
5) Other receivables of the top 5 ending balances by the debtor
Unit: Yuan
Debtors Nature of
receivables Closing balance Ages
Proportion of the
total balance of other
receivables
Ending balance of
provision for bad
debt
Omegna Fund pool 55,972,220.70 Within one
year 50.07%
Zhejiang WMF Housewares
Co., Ltd. Fund pool 30,025,375.00
Within one
year 26.86%
Shanghai WMF Enterprise
Development Co., Ltd. Fund pool 17,320,000.00
Within one
year 15.49%
Supor Kitchen & Electric
Appliance Fund pool 6,005,075.00
Within one
year 5.37%
Special account of social
insurance for medical
treatment of work-related
injury
Temporary payment
receivable 647,592.72
Within one
year 0.58% 32,379.64
Total -- 109,970,263.42 -- 98.37% 32,379.64
3. Long-term equity investments
Unit: Yuan
Item
Closing balance Opening balance
Book balance
Provision
for
impairmen
t
Carrying amount Book balance
Provision
for
impairme
nt
Carrying amount
Investment in subsidiaries 2,914,007,433.92 2,914,007,433.92 2,728,086,263.61 2,728,086,263.61
Annual Report 2019 of Zhejiang Supor Co., Ltd.
199
Investments in associates
and joint ventures 61,723,827.89 61,723,827.89 59,880,311.18 59,880,311.18
Total 2,975,731,261.81 2,975,731,261.81 2,787,966,574.79 2,787,966,574.79
(1) Investments in subsidiaries
Unit: Yuan
Investee Opening balance
(Carrying amount)
Increase/decrease
Closing balance
(Carrying amount)
Closing
balance
of
provision
for
impairme
nt
Investment
increased
Investmen
t
decreased
Provision for
impairment Others
Wuhan PC 240,428,244.41 240,428,244.41
P&R 20,804,297.92 20,804,297.92
Yuhuan Recycling 2,990,149.81 2,990,149.81
Wuhan Supor 11,180,583.31 11,180,583.31
Zhejiang Supor Electrical 758,928,931.93 5,558,336.19 764,487,268.12
Shaoxing Supor 630,457,337.90 4,783,245.10 635,240,583.00
Supor Vietnam 105,143,165.64 105,143,165.64
Wuhan Recycling 1,000,000.00 1,000,000.00
Omegna 10,000,000.00 10,000,000.00
Shanghai Marketing 5,000,000.00 5,000,000.00
Wuhan Cookware 588,311,958.57 5,377,832.07 593,689,790.64
SEADA 1,688,865.50 10,201,756.95 11,890,622.45
Shanghai WMF Enterprise
Development Co., Ltd. 50,000,000.00 50,000,000.00
Shanghai SEB Electrical
Appliances Co., Ltd. 212,152,728.62 212,152,728.62
Zhejiang WMF
Housewares Co., Ltd. 90,000,000.00 10,000,000.00 100,000,000.00
Supor Kitchen & Electric
Appliance 100,000,000.00 100,000,000.00
Shaoxing Supor
Housewares Company 50,000,000.00 50,000,000.00
Total 2,728,086,263.61 185,921,170.31 2,914,007,433.92
Annual Report 2019 of Zhejiang Supor Co., Ltd.
200
(2) Investments in associates and joint ventures
Unit: Yuan
Investee
Opening
balance
(Carrying
amount)
Increase/decrease
Closing
balance
(Carrying
amount)
Closing
balance
of
provision
for
impairme
nt
Investme
nt
increased
Investme
nt
decreased
Investme
nt profit
or loss
recognize
d by
equity
method
Adjustme
nt in other
comprehe
nsive
income
Changes
in other
equity
Cash
dividend/
profit
declared
for
distributio
n
Provision
for
impairme
nt
Others
I. Joint ventures
II. Associated enterprises
Wuhan
Anzai
Cookware
Co., Ltd.
59,880,31
1.18
4,843,516
.71
3,000,000
.00
61,723,82
7.89
Subtotal 59,880,31
1.18
4,843,516
.71
3,000,000
.00
61,723,82
7.89
Total 59,880,31
1.18
4,843,516
.71
3,000,000
.00
61,723,82
7.89
Other remarks:
1) The increase of Zhejiang Supor Electrical, Shaoxing Supor Company and Wuhan Cookware is due to the Company’s
implementation of stock incentive plan and therefore, the foregoing share-based payment fees that should be borne by companies
accepting services are included as the changes of long-term equity investment by the Company.
2) The Company increased its capital investment in SEADA with its own funds.
3) Zhejiang WMF Housewares Co., Ltd. is a subsidiary established by the Company in 2018, with registered capital of RMB
100,000,000. In 2018, RMB 90,000,000 was contributed and in 2019, the remaining RMB 10,000,000 was contributed.
4) Supor Kitchen & Electric Appliance and Shaoxing Supor Housewares Company are subsidiaries of the Company, established in
2018, with a registered capital of RMB 100,000,000 and 50,000,000, and all contributions were made in 2019.
4. Operating revenue/cost
Unit: Yuan
Item Amount incurred during this period Amount incurred during prior period
Income Cost Income Cost
Revenue from main
operations 2,230,304,990.50 1,717,167,717.56 2,296,540,064.51 1,792,399,409.74
Annual Report 2019 of Zhejiang Supor Co., Ltd.
201
Revenue from other
operations 26,053,538.73 23,579,292.09 25,496,857.79 20,733,036.49
Total 2,256,358,529.23 1,740,747,009.65 2,322,036,922.30 1,813,132,446.23
Have the new income standards been implemented?
□ Yes √ No
5. Investment income
Unit: Yuan
Item Amount incurred during
this period
Amount incurred during
prior period
Investment income from long-term equity investments under the cost method 813,403,497.06 725,424,075.01
Investment income from long-term equity investments under the equity
method 4,843,516.71 3,196,717.87
Deposit interest 41,313,150.71
Financial products 14,039,862.80 47,173,546.13
Investment income from reverse repurchase of national debts 834,034.68 2,222,134.69
Total 874,434,061.96 778,016,473.70
XVIII. Other supplementary information
1. Breakdown of non-recurring profit or loss in the current period
√ Applicable □ Not-applicable
Unit: Yuan
Item Amount Notes
Profit or loss on disposal of non-current assets -2,105,177.52
Government subsidy included in current profit or loss (excluding
government subsidies closely related to operating activities of the
Company and subject to uniform national standards on amount and
quantity)
165,824,087.78
Except the effective hedging business related to the normal operation of
the company, the gain and loss in FV changes from trading financial
assets、derivative financial assets、trading financial liability、derivative
financial liability and disposal of trading financial assets、derivative
financial assets、trading financial liability、derivative financial liability
and investment revenue from other liability investment
66,972,830.91
Other non-operating revenues or expenditures except for the foregoing
items -21,635,004.92
Annual Report 2019 of Zhejiang Supor Co., Ltd.
202
Other profit or loss conforming to the definition of non-recurring profit or
loss 12,102,997.12
Minus: income tax impact 35,547,895.67
Effects on minority interest -80.89
Total 185,611,918.59 --
The Company should state reason for defining “non-recurring profit or loss items” defined in the Explanatory Announcement No.1
on Disclosure of the Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss and
non-recurring profit or loss items listed in the Explanatory Announcement No.1 on Disclosure of the Information of Companies
Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profit or loss items.
□ Applicable √ Not-applicable
2. RONA and EPS
Profit of the reporting period Weighted average return on
net assets
EPS (RMB Yuan/share)
Basic earnings per share
(Yuan/share)
Diluted earnings per
share (Yuan/share)
Net profit attributable to shareholders of
ordinary shares 30.54% 2.347 2.338
Net profit attributable to shareholders of
ordinary shares after deducting non-recurring
profit or loss
27.59% 2.120 2.112
Annual Report 2019 of Zhejiang Supor Co., Ltd.
203
SECTION XIII CATALOG OF REFERENCE DOCUMENTS
I. 2019 Annual Report of the Company and Abstract with signature of legal representative;
II. Financial statements with signature of legal representative, person in charge of accounting and director of accounting department
and seal of the Company;
III. Original of auditing report with seal of accounting firm and signature of certified public accountants (CPA);
IV. Original of all documents and announcements published in newspapers designated by CSRC.
Reference documents above should be prepared by Securities Department of the Company.
Zhejiang Supor Co., Ltd.
Board Chairman: Thierry de LA TOUR D’ARTAISE
April 29, 2020