Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Zhejiang Sanhua Intelligent Controls Co. Ltd.2024 Annual Report
March 2025
1Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2024 Annual Report
Section I Important Notes Contents and Definitions
The Board of Directors Board of Supervisors Directors Supervisors and Senior Management
of Zhejiang Sanhua Intelligent Controls Co. Ltd. (hereinafter referred to as the “Company”) hereby
guarantee that the information presented in this report shall be authentic accurate complete and
free from material misstatement whether due to false record misleading statement or significant
omission and they will undertake both individual and joint legal liabilities.Zhang Yabo the Company's legal representative Yu Yingkui the person in charge of the
accounting work and Li Zhimi the person in charge of accounting department (Accounting Officer)
hereby declare and warrant that the financial statements in this report are authentic accurate and
complete.All directors attended the board meeting to review this report.The forward-looking descriptions of future plans development strategies and other aspects
involved in this report do not constitute a substantial commitment of the Company to investors.Investors are kindly advised to pay attention to investment risks.The Company describes in detail concerning the possible risks and countermeasures in Section
XI “Outlook for the Future Development of the Company” under Section III “Management’sDiscussion and Analysis of Operations”. Please pay attention to relevant contents.The profit distribution proposal approved by the board of directors is set out as follows: Based
on the provisional share capital of 3730997314 shares cash dividend of RMB 2.50 (tax inclusive)
will be distributed to all shareholders for every 10 shares. The Company will not distribute bonus
shares or convert capital reserves to share capital.Note: The Company has the total share capital of 3732389535 shares including 1392221 repurchased shares held in the
buyback account. Pursuant to the Company Law shares repurchased and held by listed companies through dedicated repurchase
accounts shall not be entitled to dividend eligibility or capital reserve capitalization.In the event of changes in the Company's total share capital due to share repurchases exercises
of equity incentive schemes H-share offerings and listings or other similar circumstances prior to
2Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
the implementation of the distribution plan the total distribution amount shall be proportionally
adjusted in accordance with the principle of maintaining constant distribution ratios.
3Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
CONTENTS
Section I Important Notes Contents and Definitions....2
Section II Corporate Profile and Key Financial Ind... 7
Section III Management’s Discussion and Analysis o.. 13
Section IV Corporate Governance .................... 46
Section V Environmental and Social Responsibility ...80
Section VI Significant Events ...................... 86
Section VII Changes in Shares and Information abou. 107
Section VIII Information of Preferred Shares .......122
Section IX Bonds .................................. 122
Section X Financial Report ........................ 123
4Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Documents Available for Inspection
1. The 2024 annual report signed by the chairman of the board.
2. The financial report signed and sealed by the Company's legal representative chief finance officer and
person in charge of accounting department.
3. Original audit report with the seal of the accounting firm signature and seal of the registered accountant
4. Articles of Association
5. Original copy of all the Company's documents and announcements published on the newspapers
designated by CSRC within the reporting period.
6. Other documents available for inspection.
5Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Definitions
Items Refers to Definition
The Company Company Refers to Zhejiang Sanhua Intelligent Controls Co. Ltd.The Articles of Association Refers to Articles of Association for Zhejiang Sanhua Intelligent Controls Co. Ltd.The CSRC Refers to China Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
Zhejiang Securities Regulatory Bureau Refers to Zhejiang Securities Regulatory Bureau of China Securities RegulatoryCommission
General Meeting of Shareholders Refers to General Meeting of Shareholders of Zhejiang Sanhua Intelligent ControlsCo. Ltd.Board of Directors Refers to The Board of Directors of Zhejiang Sanhua Intelligent Controls Co. Ltd.Board of Supervisors Refers to The Board of Supervisors of Zhejiang Sanhua Intelligent Controls Co. Ltd.Yuan Refers to RMB
6Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Section II Corporate Profile and Key Financial Indicators
I. Corporate Information
Stock abbreviation Sanhua Intelligent Controls Stock code 002050
Former stock abbreviation (if
Sanhua Co.any)
Stock Exchange Shenzhen Stock Exchange
Name of the Company in
Chinese 浙江三花智能控制股份有限公司
Abbr. of the Company name三花智控
in Chinese
Name of the Company in
ZHEJIANG SANHUA INTELLIGENT CONTROLS CO. LTD.English (if any)
Abbr. of the Company name
SANHUA
in English (if any)
Legal representative Zhang Yabo
Registered Address No. 219 Woxi Avenue Chengtan Street Xinchang Shaoxing Zhejiang
Post Code of Registered
312530
Address
June 19 2015 the registered address of the Company was changed from Xialiquan Qixing
Street Xinchang Zhejiang to No. 219 Woxi Avenue Meizhu Xinchang Zhejiang;
Historical changes of the February 29 2016 the registered address of the Company was changed from No. 219 Woxi
Company's registered address Avenue Meizhu Xinchang Zhejiang to Xialiquan Qixing Street Xinchang Zhejiang.June 2 2023 the registered address of the Company was changed from Xialiquan Qixing Street
Xinchang Zhejiang to No. 219 Woxi Avenue Chengtan Street Xinchang Shaoxing Zhejiang
Office Building in Sanhua Industrial Park
Office Address
No. 219 Woxi Avenue Chengtan Street Xinchang Shaoxing Zhejiang
Post Code of Office Address 312530
Website http://www.zjshc.com
E-mail shc@zjshc.com
II. Contacts and Contact Information
Board Secretary Securities Affairs Representative
Name Hu Kaicheng Lv Yifang
Office Building in Sanhua Industrial Office Building in Sanhua Industrial
Address Park Park
No. 12 Baiyang Street Qiantang New No. 219 Woxi Avenue Chengtan Street
7Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
District Hangzhou Zhejiang Xinchang Shaoxing Zhejiang
Tel. 0571-28020008 0575-86255360
E-mail shc@zjshc.com shc@zjshc.com
III. Information Disclosure and Place of the Report
The website of the stock exchange where the Company
Shenzhen Stock Exchange：http://www.szse.cn
discloses the annual report
Media and website designated by the Company for disclosure Securities Times Shanghai Securities News
of the Annual Report CNINFO: http://www.cninfo.com.cn
Place where the Annual Report is available for inspection Office of the Board of Directors of the Company
IV. Company Registration and Alteration
Unified Social Credit Code 913300006096907427
In 2017 the Company completed a major asset reorganization
Changes in principle business activities since the Company was
and changed main business to Refrigeration A/C Electrical
listed (if any)
Components business and Automotive Components business.Changes of controlling shareholders of the Company (if any) N/A
V. Other Relevant Information
Accounting firm engaged by the Company
Name of the accounting firm Pan-China Certified Public Accountants LLP.Building B China Resources Building 1366 Qianjiang Road
Business address of the accounting firm
Shangcheng District Hangzhou Zhejiang China
Name of accountants for signature Qian Zhongxian Ouyang Xiaoyun Zhou Heng
Sponsor institution engaged by the Company to perform the duties of continuous supervision during the reporting
period
□ Applicable √ Not applicable
Financial advisor engaged by the Company to perform the duties of continuous supervision during the reporting
period
□ Applicable √ Not applicable
VI. Key Accounting Data and Financial Indicators
Whether the Company performed a retrospective adjustment or restatement of previous accounting data
□Yes √No
8Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2024 2023 YoY Change 2022
Total Revenue (RMB) 27947164515.93 24557802066.59 13.80% 21347549741.00
Net Profit Attributable
to Shareholders of the
3099165128.062920992940.016.10%2573344179.92
Listed Company
(RMB)
Net Profit Attributable
to Shareholders of the
Listed Company after
3117935212.812917029188.016.89%2291450453.44
Deducting Non-
recurring Gains and
Losses (RMB)
Net Cash Flow
Generated from
4366630948.363723964354.6317.26%2509666490.56
Operational Activities
(RMB)
Basic Earnings per
0.840.813.70%0.72
Share (RMB/Share)
Diluted Earnings per
0.840.813.70%0.72
Share (RMB/Share)
Weighted Average
16.77%19.18%-2.41%21.38%
ROE
At the End of 2024 At the End of 2023 YoY Change (%) At the End of 2022
Total Assets (RMB) 36354748426.21 31890584773.41 14.00% 27961214156.28
Net Assets Attributable
to Shareholders of the
19297769106.4817894403984.797.84%12941310409.42
Listed Company
(RMB)
The Company's net profit before and after deducting non-recurring profit and loss in the last three fiscal years
whichever is lower is negative and the audit report of the last year shows that the Company's ability to continue
as a going concern is uncertain
□ Yes √ No
The lower of the net profit before and after deducting the non-recurring profit and loss is negative
□ Yes √ No
VII. Differences in Accounting Data between Domestic and Overseas Accounting Standards
1. Difference in the net profits and net assets of disclosed financial report according to the International
Financial Reporting Standards and China Accounting Standards
□ Applicable √ Not applicable
There is no difference.
9Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2. Difference in the net profits and net assets of disclosed financial report according to the Overseas
Accounting Standards and China Accounting Standards
□ Applicable √ Not applicable
There is no difference.VIII. Key Quarterly Financial Indicators
Unit: RMB
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Total revenue 6439558590.31 7236513570.77 6886824980.77 7384267374.08
Net profit attributable
to shareholders of the 647742424.05 866773020.70 787455250.81 797194432.50
Company
Net profit attributable
to shareholders of the
Company excluding 670999127.69 855827965.83 721197112.53 869911006.76
non-recurring gains
and losses
Net cash flows from
107817235.951053812640.22831854979.662373146092.53
operating activities
Whether there is significant difference between the above individual or aggregate financial indicators and that of
what disclosed in the quarterly report half-year report
□ Yes √ No
IX. Items and Amounts of Non-recurring Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2024 2023 2022 Note
Profits or losses from
disposal of non-current
assets (including the
-14594509.61-1157418.11445368259.89
write-off for the
impairment provision
of assets)
The government
subsidies included in
the current profits and
losses (excluding the
government subsidy
closely related to 124291859.56 93921181.44 91659049.88
regular course of
business of the
Company and
government subsidy
based on standard
10Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
quota or quantitative
continuous application
according to the state
industrial policy.)
To hedge against raw
material price risks and
mitigate exchange rate
risks the Company and
its subsidiaries engage
in derivative
instrument
transactions including
futures derivatives and
exchange rate
derivatives. In 2024
the Company recorded
futures gains of RMB
8.5920 million and
foreign exchange
Gains and losses from losses of RMB
changes in fair value 142.9416 million
arising from the while in 2023 futures
holding of financial gains amounted to
assets and financial RMB 9.5091 million
liabilities by non- and foreign exchange
financial enterprises as losses totaled RMB
well as gains and losses 99.3840 million.from the disposal of -134349605.35 -89874825.04 -198263945.31 Additionally the
financial assets and Company recognized
financial liabilities exchange gains of
excluding effective RMB 83.1539 million
hedging business in 2024 and RMB
related to normal 133.5151 million in
business operations of 2023. In accordance
the company with the Explanatory
Announcement No. 1
on Information
Disclosure for
Companies Publicly
Issuing Securities—
Non-recurring Profit
and Loss Items
exchange gains and
losses are classified as
recurring profit and
loss items whereas
futures and foreign
exchange gains and
losses are categorized
as non-recurring items.Reversal of impairment
provision for
receivables 5690817.36
individually assessed
for impairment
Gain arising from the 2097001.82
excess of the fair value
11Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
of the investee's
identifiable net assets
over the investment
cost when acquiring
investments in
subsidiaries associates
and joint ventures
Gains and losses
arising from
contingencies unrelated
-7000000.00
to the normal operation
of the Company's
business
Other non-operating
income and
-2855012.5410206261.89-1251705.71
expenditures except the
items mentioned above
Other gains and losses
items that fit the
definition of non- 1445314.58
recurring gains and
losses
Less: Impact of income
-2401931.561905361.6146164566.99
tax
Impact of the
minority interests (after 1452567.55 7226086.57 3898679.86
tax)
Total -18770084.75 3963752.00 281893726.48
Details of other gains and losses items that meet the definition of non-recurring gains and losses:
□Applicable √ Not applicable
The Company did not have other gain/ loss items that meet the definition of non-recurring gains and losses.The reasons for the non-recurring gains and losses items defined or listed in the Explanatory Announcement No. 1
of Information Disclosure of Listed Companies – Non-recurring Gains and Losses are defined as recurring gains
and losses items
□Applicable √ Not applicable
The Company did not define any non-recurring gains and losses items defined and listed in the Explanatory
Announcement of Information Disclosure of Listed Companies No. 1 – Non-recurring Gains and Losses as
recurring gains and losses items.
12Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Section III Management’s Discussion and Analysis of Operations
I. Industry situation of the Company during the reporting period
The Company shall comply with the disclosure requirements of automobile manufacturing related industries listed
in the No.3 Guidelines for Self-discipline Supervision of Public Companies of Shenzhen Stock Exchange - Industry
Information Disclosure.
1. Industry development
Amid challenges including geopolitical risks and intensified restructuring of global industrial and supply
chains the global economy exhibited robust resilience in 2024 achieving stable growth. According to the
International Monetary Fund (IMF) global economic growth reached 3.2% for the year. Chinese economy
continued to demonstrate remarkable resilience and potential within a complex and volatile international
environment with its annual gross domestic product (GDP) amounting to RMB 134.9 trillion reflecting a 5.0%
year-on-year increase.
(1) Refrigeration and air conditioning electrical components industry
Supported by the gradual recovery of the global economy and the frequent occurrence of extreme weather
events demand in the refrigeration and air conditioning market sustained steady growth. As the world’s largest
producer and consumer of air conditioning systems China maintained strong momentum in its household air
conditioning sector. Data from Industry Online indicates that China’s total household air conditioner production in
2024 reached 201.579 million units marking a 19.5% year-on-year rise. Domestic sales grew moderately at 4.9%
while exports surged by 36.1% during the same period.As the background of accelerating global green transformation the refrigeration and air conditioning industry
is undergoing rapid evolution toward energy efficiency intelligent technologies and environmentally sustainable
practices. Enhanced energy efficiency standards worldwide and the proliferation of intelligent technologies have
unlocked new market opportunities and value-driven growth. The implementation of the European Union’s Net-
Zero Industry Act has further catalyzed the adoption of clean technologies such as heat pumps and energy storage
systems infusing fresh momentum into the industry. Concurrently emerging opportunities in data center cooling
and waste heat recovery are gaining prominence positioning these areas as pivotal avenues for industry expansion.Domestically consumer upgrade initiatives including appliance replacement subsidies have significantly
stimulated demand for air conditioners and related products underpinning robust market growth. As a market
leader in refrigeration and air conditioning control components the company capitalizes on decades of
technological expertise advanced manufacturing capabilities and diversified client network to adapt to market
dynamics seize transformative opportunities and sustain steady progress.
(2) Automotive Components Industry
According to the data from MarkLines and the China Passenger Car Association (CPCA) global sales of
new energy vehicles (NEVs) in 2024 reached 17.529 million units representing a 21.6% year-on-year increase
and accounting for 19.8% of total global automotive sales. China the world’s largest NEV market contributed
70% of global NEV sales with annual sales reaching 12.274 million units a 37.8% year-on-year rise constituting
44.5% of Chinese total automotive sales.
13Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
The global NEV industry sustained rapid growth serving as a cornerstone for the transformation of the
automotive sector. As NEV technologies advance the complexity and significance of thermal management
systems have become increasingly pronounced. NEVs across all technological pathways are imposing heightened
requirements on thermal management products driving the industry toward the technology-intensive and capital-
intensive development trajectory. The company originated in automotive thermal management with profound
technological expertise and extensive industry recognition progressing from components to subsystems and
modules. It not only collaborates with leading automakers including Mercedes-Benz BMW BYD Ford Geely
General Motors GAC Honda Hyundai Leapmotor Li Auto NIO Stellantis SAIC Toyota Volkswagen and
Volvo but also supplies thermal management integrators such as Denso Hanon Systems Mahle and Valeo.
2. Industry status
The company is the world's largest manufacturer of refrigeration control components and the global leader in
automotive thermal management system control components. The "Sanhua" brand of intelligent refrigeration
control components has become a world-renowned brand and serves as the strategic partner to numerous global
automotive manufacturers and air-conditioning refrigeration appliance producers. Committed to enhancing the
energy efficiency of various end-use products the company leads the global transformation of energy-saving and
environmentally friendly products. After over three decades of development the company has established
industry-leading positions in global refrigeration appliances and automotive thermal management fields. The
company holds the world's largest market share for products such as air-conditioning electronic expansion valves
four-way reversing valves service valve solenoid valves microchannel heat exchangers automotive electronic
expansion valves new energy vehicle thermal management integrated modules and Omega pumps while
maintaining a leading global position in automotive thermal expansion valves and receivers.II. The Principal Business of the Company during the Reporting Period
The Company shall comply with the disclosure requirements of automobile manufacturing related industries listed
in the No.3 Guidelines for Self-discipline Supervision of Public Companies of Shenzhen Stock Exchange - Industry
Information Disclosure.The Company adheres to the "Dedication and Leadership Innovation and Surpassing" business path
concentrating on the research and application of heat pump technology and thermal management system products.It focuses on the development of environmental thermal management solutions for heat exchange and temperature
intelligent control and is dedicated to specialized management in the fields of building HVAC electrical
equipment and new energy vehicle thermal management. Based on the different stages and characteristics of
strategic business and mature business the Company's business is mainly divided into refrigeration and air
conditioning electrical components business and automotive components business. Refrigeration and air
conditioning electrical components business is committed to the professional operation of building HVAC and
electrical equipment. Its main products include Four-way Reversing Valve Electronic Expansion Valve Solenoid
Valve Microchannel Heat Exchanger Omega Pump etc. which are widely used in A/C refrigerator cold chain
logistics dishwasher and other fields. The automotive components business focuses on in-depth research in the
field of automotive thermal management. Its main products include Thermal Expansion Valve Electric Expansion
Valve Electric Water Pump and Thermal Management Integrated Module for new energy vehicle etc. which are
widely used in both NEVs and ICVs.
14Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
During the reporting period the Company's principal business and business model remained unchanged.Manufacturing production and operation of vehicles during the reporting period
□Applicable √ Not applicable
Manufacturing production and operation of vehicle components during the reporting period
√Applicable □ Not applicable
Production volume Sales volume
YoY Change YoY Change
2024202320242023
(%)(%)
Classified by Components (Unit: million PCs)
NEVs thermal
management 70.0073 62.7827 11.51% 69.5199 62.5181 11.20%
products
ICVs thermal
management 180.1656 169.5683 6.25% 184.0433 169.5093 8.57%
products
Other classifications (Unit: million PCs)
Domestic 152.6055 137.8682 10.69% 152.15 138.0081 10.25%
Overseas 97.5674 94.4828 3.26% 101.4132 94.0193 7.86%
Explanation on why the related data varied by more than 30% on a YOY basis
□ Applicable √ Not applicable
Sale model of vehicle components
The Company's customers are mainly domestic and foreign vehicle manufacturers and tier 1 manufacturers. The
mainly sale mode is direct sale.Whether the Company carries out auto finance business
□Applicable √ Not applicable
Whether the Company carries out business related to NEVs
√Applicable □ Not applicable
Production and operation of NEVs parts
Unit: million PCs
Product category Production capacity Production volume Sales volume Revenue (RMB)
NEVs thermal
90.693270.007369.519910452256196.72
management products
III. Core Competitiveness Analysis
The Company shall comply with the disclosure requirements of automobile manufacturing related industries listed
in the No.3 Guidelines for Self-discipline Supervision of Public Companies of Shenzhen Stock Exchange - Industry
Information Disclosure.
1. Clear strategic layoutThe Company adheres to the "Dedication and Leadership Innovation and Surpassing” business path takes
15Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
the research and application of heat pump technology and thermal management system products as the core
firmly grasps the development theme of energy conservation environmental protection and intelligent control
upgrades from "mechanical parts development" to "system control technology solution development of electronic
control integration". The Company’s products series are expanded from household A/C and refrigerator
components to the field of commercial A/C and commercial refrigeration and extending to the direction of
inverter control technology and system integration and upgrading. Meanwhile after the injection of automotive
components business it gives full play to the synergy effect with the original business continues to deepen the
research and development of new energy vehicle thermal management system components and actively explores
the deeper application of thermal management components and subsystems in the automotive field so as to
provide global customers with competitive environmental intelligent control solutions.
2. Technology leading customer oriented
As a national high-tech enterprise the Company has always adhered to the technological route of
independent development and innovation. For decades it has focused on the field of intelligent control and
vigorously cultivated core technologies with independent intellectual property rights. It has been authorized with
4252 patents both domestic and abroad including 2261 invention patents. The Company has established a
comprehensive multi-disciplinary R&D team for product development and technical research and established a
matrix R&D organizational structure. Utilizing the model of product development driven by technological
research we can promote innovation. Meanwhile a technical expert committee has been established to guide and
manage technological development. All products services and quality of the Company take meeting the needs of
customers as the first priority.
3. Quality assurance scale economy effect
The Company's products cover refrigeration A/C electrical components and automotive components industry.The market share of the Company's Electronic Expansion Valve Four-way Reversing Valve Service Valve
Solenoid Valve Microchannel Heat Exchanger Automotive Electric Expansion Valve Thermal Management
Integrated Module for new energy vehicle Omega Pump ranks first globally. The market share of Automotive
Thermal Expansion Valve and Receiver Drier is in the leading position in the world. The Company has
established a complete and strict quality assurance system achieved ISO9001 IATF16949 QC080000 quality
system certification. The Company won the National Quality Award Zhejiang Quality Award National
Technological Innovation Demonstration Enterprise and won the high comments from Daikin Panasonic Ford
BSH Home Appliances Siemens Volkswagen Mercedes-Benz BYD and Geely and other well-known
enterprises at home and abroad.
4. Advantages of global marketing network and production base
Since the 1990s the Company has focused on expanding the international market and has established
overseas subsidiaries in Japan South Korea Singapore the United States Mexico Germany and other places to
build a global marketing network. At the same time it has established overseas production bases in Mexico
Poland Vietnam Thailand and other places. And in practice we have trained a number of management talents
who can meet the needs of business development in different countries and regions.
16Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
IV. Main Business Analysis
1. Overview
In 2024 amid escalating geopolitical conflicts and deepening restructuring of global industrial and supply
chains the world economy maintained slow and stable growth with overall trade demand on the rise. China led
major global economies with the GDP growth rate of 5.0% bolstering market confidence through policies such as
interest rate cuts reserve requirement reductions and domestic demand expansion thereby setting the tone for
high-quality development.The new energy revolution advanced vigorously with continued growth in NEVs and accelerated global
green transitions creating opportunities in heat pumps and commercial refrigeration. Simultaneously the artificial
intelligence (AI) and bionic robotics industries witnessed significant technological breakthroughs and accelerated
commercialization. At the corporate level the refrigeration and air conditioning electrical components business
capitalized on structural market opportunities driven by consumer appliance replacement policies North
American refrigerant transitions and emerging sector demands consolidating the company’s market position and
achieving steady growth. Despite challenges the automotive components business maintained stable growth
supported by purchase subsidies relaxed auto financing policies and rapid domestic market expansion.During the reporting period the company achieved operating revenue of RMB 27.947 billion a year-on-year
increase of 13.80%; operating profit of RMB 3.710 billion up 4.42% year-on-year; and net profit attributable to
listed shareholders of RMB 3.099 billion up 6.10% year-on-year. By product segment the refrigeration and air
conditioning electrical components business generated revenue of RMB 16.561 billion up 13.09% year-on-year
while the automotive components business recorded revenue of RMB 11.386 billion up 14.86% year-on-year.(I) Dedicated to excellence through relentless innovation and strategic business expansion
1. Refrigeration and air conditioning electrical components business
In 2024 the company further solidified the market leadership by advancing product iteration industrializing new
offerings and exploring emerging opportunities. In client development the company continues to deepen strategic
collaborations with key clients and strengthens customer relationships through participation in major refrigeration
exhibitions and global partnership conferences. In R&D the company prioritized upgrading flagship products
leveraged the competitive edge of steel valves amid high copper prices and focused on high-potential innovations
to drive market breakthroughs. In operations management the company enhances labor efficiency through lean
manufacturing while effectively implementing cost control and process optimization. In digital transformation it
continues advancing comprehensive digital coverage across all business domains exploring and promoting lights-
out workshop models that simultaneously focus on quality and efficiency. Additionally leveraging the company’s
multi-site global presence the company intensifies manufacturing globalization R&D network expansion and
talent development actively addressing tariff challenges while strengthening localized service capabilities for
global clients.
2. Automotive components business
Facing fierce competition in the NEV market the company sustains revenue growth through coordinated
initiatives including new product R&D technological iteration and digital production effectively balancing
revenue expansion with cost rationalization. In client development the company focused on large-scale integrated
thermal systems addressing demands from global automotive leaders and securing breakthrough projects. In
17Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
technological R&D the company has achieved multiple breakthroughs in integrated modules for both refrigerant-
side and coolant-side automotive thermal management significantly enhancing customer value. In operations
management the company advanced the development of integrated module production lines and optimized
automation levels significantly enhancing production efficiency. Globally the company continued advancing the
construction of overseas facilities in Mexico and Poland and domestic plants in Zhongshan Shenyang Tianjin
Hangzhou Shaoxing Binhai while deploying new production capacities to solidify the global supply chain
footprint.
3. Strategic Emerging Businesses
The AI and bionic robotics industries accelerated into a high-growth phase poised to reshape lifestyles and
global economic structures as humanity enters an era of human-machine symbiosis. In bionic robotics the
company works closely with clients to address their needs while continuously self-optimizing key product
performance metrics. This is building a technological moat through process innovations and patent-protected
solutions centered on proprietary product designs. In energy storage system the company focused on major
clients tracked technological trends in energy storage systems and pursued opportunities in thermal management
components.(II) Proposed H-Share Issuance and Listing on the Hong Kong Stock Exchange
To advance the global strategy enhance international visibility and strengthen competitiveness the company
plans to issue H-shares and list on the Hong Kong Stock Exchange. The raised funds are intended to be allocated
to global technology R&D and expanding product portfolios expanding and establishing new domestic and
overseas factories enhancing corporate digital operational efficiency supplementing working capital and other
purposes.(III) Shareholder Returns and Employee Incentives
In 2024 to safeguard shareholder interests and reinforce investor confidence the company executed the
share repurchase program protecting the long-term benefits for both the corporation and minority shareholders.Since the first share repurchase initiative in 2018 the company has cumulatively deployed over RMB 1.1 billion
in repurchases. Concurrently the company prioritizes investor rights protection consistently enhancing
investment returns. Total cash dividends distributed since IPO have reached RMB 7.4 billion. Additionally the
company implemented the 2024 Restricted Stock Incentive Plan and 2024 Stock Appreciation Rights Incentive
Plan motivating core talent to continuously elevate performance and productivity thereby driving sustainable
business growth.(IV) Strengthening Corporate Governance Framework & Diversifying Investor Engagement Channels
The company enhanced and refined the internal control systems standardized the operations of the Board of
Directors Supervisory Board and Shareholders' Meetings and strengthened information disclosure protocols and
investor relations management mechanisms. The total of 20 governance documents were formulated or revised
including the Information Disclosure Management Policy Public Opinion Management and Response Guidelines
and Related-Party Transaction Regulations. Key updates encompassed the Articles of Association and Proposed
Articles of Association (applicable post-H-share listing) revised to align with the revised Company Law Hong
Kong Stock Exchange Listing Rules and the company's operational realities. For investor relations management
the company facilitated multi-channel engagement through on-site meetings earnings briefings interactive
platforms and direct investor hotlines ensuring transparent and efficient communication with diverse investor
18Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
groups.(V) Accelerating Carbon Neutrality Establishing Clean & Low-Carbon Energy Ecosystem
In clean energy adoption the company has installed distributed photovoltaic power generation systems
energy storage facilities and smart microgrids to optimize the energy structure while also purchasing green
electricity to reduce carbon emissions. For energy-saving technological upgrades the company has phased out
high-energy-consumption production equipment and implemented smart energy management systems to monitor
equipment energy usage analyze consumption patterns and identify inefficiencies. In product sustainability
innovation aligning with regulatory policies the company has developed next-generation eco-friendly
refrigerants to minimize greenhouse gas emissions during product operation. Simultaneously the company is
advancing low-energy heat pump technologies to create high-performance energy-efficient thermal management
systems.
2. Revenue and Costs
(1) Revenue structure
Unit: RMB
20242023
YoY Change (%)
Proportion to Proportion to
Amount Amount
revenue revenue
Revenue 27947164515.93 100% 24557802066.59 100.00% 13.80%
Classified by Industry
General
Equipment
27947164515.93100%24557802066.59100.00%13.80%
Manufacturing
Industry
Classified by Products
Refrigeration A/C
Electrical 16560605388.30 59.26% 14644135166.57 59.63% 13.09%
Components
Automotive
11386559127.6340.74%9913666900.0240.37%14.86%
Components
Classified by Region
Domestic 15446505381.49 55.27% 13403443275.68 54.58% 15.24%
Overseas 12500659134.44 44.73% 11154358790.91 45.42% 12.07%
Classified by Sales Model
Direct Sale 27545064298.92 98.56% 24557802066.59 100.00% 12.16%
19Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Indirect Sale 402100217.01 1.44%
(2) Industries products regions or sale models accounting for more than 10% of the Company’s revenue
or operating profit
√ Applicable □ Not applicable
Unit: RMB
YoY Change YoY Change
YoY Change
Revenue Operating cost Gross margin (%) of (%) of gross
(%) of revenue
operating cost margin
Classified by Industry
General
Equipment 27947164515 20269833554
27.47%13.80%14.04%-0.15%
Manufacturing .93 .48
Industry
Classified by Products
Refrigeration
A/C Electrical 16560605388 12030985910
27.35%13.09%14.06%-0.62%
Components .30 .08
Business
Automotive
113865591278238847644.
Components 27.64% 14.86% 14.02% 0.53%.6340
Business
Classified by Region
1544650538111493560891
Domestic 25.59% 15.24% 15.73% -0.31%.49.19
125006591348776272663.
Overseas 29.79% 12.07% 11.91% 0.10%.4429
Classified by Sales Model
2754506429819995038266
Direct Sale 27.41% 12.16% 12.50% -0.21%.92.18
Indirect Sale 402100217.01 274795288.30 31.66%
When the statistical caliber of the Company's major business data is adjusted during the reporting period the
Company's major business data would be adjusted according to the end of the reporting period in the most recent
period.□ Applicable √ Not applicable
(3) Whether revenue from physical products sales greater than revenue from providing services
√ Yes □ No
Industry Item Unit 2024 2023 YoY Change (%)
20Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Sales Yuan 27947164515.93 24557802066.59 13.80%
General
Equipment
Production Yuan 28317506024.84 24661487925.77 14.82%
Manufacturing
Industry
Inventory Yuan 5406042889.29 4715009128.74 14.66%
Explanation on why the related data varied by more than 30% on a YOY basis
□ Applicable √ Not applicable
(4) Fulfillment of signed significant sales and procurement contracts by the end of reporting period
□ Applicable √ Not applicable
(5) Operating cost structure
Classification based on industry and products
Unit: RMB
20242023
YoY Change
Industry Item
Proportion to Proportion to (%)
Amount Amount
operating cost operating cost
General
Equipment 14979789030 13115131671
Material 73.90% 73.79% 14.22%
Manufacturing .31 .51
Industry
General
Equipment 2812304190. 2523256970.Labor 13.87% 14.20% 11.46%
Manufacturing 10 91
Industry
General
Equipment
Depreciation 780844622.47 3.85% 516350365.38 2.91% 51.22%
Manufacturing
Industry
General
Equipment
Freight 664724822.92 3.28% 573973563.84 3.23% 15.81%
Manufacturing
Industry
General
Equipment
Energy Source 555660396.46 2.74% 522992506.07 2.94% 6.25%
Manufacturing
Industry
General
Equipment
Other 476510492.22 2.35% 522153886.41 2.94% -8.74%
Manufacturing
Industry
Unit: RMB
20242023
YoY Change
Product Item
Proportion to Proportion to (%)
Amount Amount
operating cost operating cost
21Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Refrigeration
8850066410.7743350881.
A/C Electrical Material 43.66% 43.57% 14.29%
6856
Components
Refrigeration
1807293961.1625493308.
A/C Electrical Labor 8.92% 9.15% 11.18%
0675
Components
Refrigeration
A/C Electrical Depreciation 432473528.87 2.13% 293400820.12 1.65% 47.40%
Components
Refrigeration
A/C Electrical Freight 430450574.78 2.12% 372451870.84 2.10% 15.57%
Components
Refrigeration
A/C Electrical Energy Source 272531956.90 1.34% 250366298.39 1.41% 8.85%
Components
Refrigeration
A/C Electrical Other 238169477.79 1.17% 262788912.38 1.48% -9.37%
Components
Automotive 6129722619. 5371780789.Material 30.24% 30.22% 14.11%
Components 63 95
Automotive 1005010229.Labor 4.96% 897763662.16 5.05% 11.95%
Components 04
Automotive
Depreciation 348371093.60 1.72% 222949545.26 1.25% 56.26%
Components
Automotive
Freight 234274248.14 1.16% 201521693.00 1.13% 16.25%
Components
Automotive
Energy Source 283128439.56 1.40% 272626207.68 1.53% 3.85%
Components
Automotive
Other 238341014.43 1.18% 259364974.03 1.46% -8.11%
Components
(6) Changes in consolidation scope during the reporting period
√Yes □ No
1. Increase in consolidation scope
Proportion of
Equity acquisition Date of equity Capital
Name capital
method acquisition contribution
contribution
Contractual
Hangzhou Lv Neng New Energy Vehicle Parts Co. Ltd. 2024-09-30 7.7 million 100%
Assignment
Investment and
Zhejiang Sanhua Intelligent Drive Co. Ltd. establishment 2024-06-04 74 million 100%
Investment and
Zhejiang Shengtai Paper Industry Co. Ltd. establishment 2024-06-20 21 million 70%
Investment and
Sanhua Automotive Components Korea Co. Ltd. establishment 2024-07-08 KRW 90000 100%
SANHUA SINGAPORE HEAT EXCHANGER PTE. Investment and
LTD. establishment
2024-08-280.00100%
Investment and
Sanhua Intelligent Drive (Thailand) Co. Ltd. establishment 2024-11-01 0.00 100%
22Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Investment and
SANHUATROY PROPERTY MANAGEMENTLLC establishment 2024-06-28 0.00 100%
2. Reduction in consolidation scope
Net profit from
Equity disposal Date of equity Net assets on the beginning of
Name
method disposal disposal date the period to the
date of disposal
American Tubing International Leverage lender LLC Cancellation 2024-10-09 - -
(7) Significant change or adjustment of the Company’s business products or services during the reporting
period:
□ Applicable √ Not applicable
(8) Major customers and suppliers:
Major customers of the Company
Total sales to top five customers (RMB) 9193696267.94
Total sales to top five customers as a percentage of the total
32.89%
sales for the year (%)
Total sales to the related parties in top five customers as a
0.00%
percentage of the total sales of the year (%)
Information on top five customers
Percentage of total sales for
No. Name of Customer Sales Amount (RMB)
the year
1 First 3527626412.69 12.62%
2 Second 2429872540.77 8.69%
3 Third 1315668564.90 4.71%
4 Fourth 1039137368.67 3.72%
5 Fifth 881391380.91 3.15%
Total -- 9193696267.94 32.89%
Other information of major customers
□Applicable√ Not applicable
Major suppliers of the Company
Total purchases from top five suppliers (RMB) 2512688021.17
Total purchases from top five suppliers as a percentage of the
15.45%
total purchases for the year (%)
23Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Total purchases from the related parties in the top five suppliers
0.00%
as a percentage of the total purchases for the year (%)
Information on top five suppliers of the Company
Percentage of total purchase
No. Name of Supplier Purchase Amount (RMB)
for the year
1 First 653599333.99 4.02%
2 Second 631975885.93 3.89%
3 Third 519996390.09 3.20%
4 Fourth 354433742.41 2.18%
5 Fifth 352682668.75 2.17%
Total -- 2512688021.17 15.45%
Other information of major suppliers
□ Applicable √ Not applicable
3. Expenses
Unit: RMB
Note of significant
2024 2023 YoY Change (%)
change
Primarily attributable
to increased
expenditures in
employee
compensation
Sales expenses 726437231.46 597565638.25 21.57% advertising and
promotional costs
warehousing and
handling fees and
related expenses during
the current period.Primarily attributable
to increases in
employee
Administrative compensation and
1767454322.161476334172.3519.72%
expenses depreciation &
amortization expenses
during the current
period.Primarily attributable
to the reduction in
Financial expenses -43782383.53 -72751380.29 39.82% foreign exchange gains
during the current
period.Primarily attributable
R&D expenses 1351798786.50 1096834224.41 23.25% to increases in
employee
24Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
compensation direct
inputs and other
related expenses.
4. R&D Investment
√Applicable □Not applicable
Expected impact on the
Name of main R&D Objectives to be
Project purpose Progress of the project future development of
projects achieved
the Company
Develop low-cost
M Platform Standard To enhance
lightweight and To gain greater market
Electric Water Pump On going competitiveness of
miniaturized medium- share
Development medium-power EWPs
power EWP
Develop a new To improve product
To improve product
Third Generation generation product competitiveness and
On going competitiveness; Form
Chiller Development with low cost or high gain greater market
standardized products
performance share
To enhance
Develop low-cost
L Platform Electric competitiveness of
lightweight and To gain greater market
Water Pump On going high-power EWPs
miniaturized high- share
Development build solid foundation
power EWP
and technical reserve
Develop compact low-
Enhance the core To enhance integrated
Direct Thermal Module cost lightweight
competitiveness of module products
for flexible thermal management On going
integration thermal competitiveness and
manufacturing system integration
management modules market share .solutions
Develop low-cost By standardizing
lightweight and design and preparing To improve product
Indirect Thermal miniaturized integrated technical reserves in competitiveness and
On going
Module modules for indirect advance enhance the gain greater market
cooling thermal competitiveness of share
management systems integrated modules
Realize the
characteristics of high
Open up the heat pump
Development of SPB Develop new products efficiency energy
heating market and
(A) type shielded water in the field of heat Finished saving silence high
realize new business
pump pump heating stability and high cost
growth points
performance of
products
Realize the iterative
Develop a new upgrading of products
Enhance product
C-type globe valve generation of low-cost and enhance the
Finished competitiveness and
development and high-performance competitiveness of
expand market share
products refrigeration and air
conditioning products
Further enhance the
Develop a new
Chain BLDC Omega cost and performance Enhance product
generation of low-cost
integrated heat pump Finished advantages of products competitiveness and
and high-performance
project development and ensure the increase market share
products
competitive advantage
First generation of PT To combine the Finished Develop the first- Open up the new
25Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
sensor temperature sensor generation of sensors energy vehicle business
function into the for automotive industry for sensor products.pressure sensor and and to increase the
enter new business turnover of commercial
section business unit.Expand the company's
To complete the Business expansion in product portfolio to lay
Shut off valve for
portfolio of Industrial Finished the industrial a solid foundation for
Industrial Refrigeration
Refrigeration refrigeration fields. entry into the industrial
refrigeration fields.Improve system energy
Enhance market
To complete the efficiency and
competitiveness in
New BPHE S65A portfolio of Brazed Finished meanwhile reduce
brazed plate heat
Plate Heat Exchanger refrigerant charge and
exchangers.carbon emissions.R&D personnel of the Company
2024 2023 Change proportion
Number of R&D personnel
3578324110.40%
(person)
Proportion of R&D personnel 18.08% 18.28% -0.20%
Academic structure of R&D personnel
Master degree and above 723 510 41.76%
Bachelor degree 2021 1929 4.77%
Junior college and below 834 802 3.99%
Age composition of R&D personnel
Under the age of 30 1744 1582 10.24%
Age between 30 and 40 1313 1191 10.24%
Over the age of 40 521 468 11.32%
R&D investment of the Company
2024 2023 YoY Change (%)
Amount of R&D expenses
1351798786.501096834224.4123.25%
(RMB)
R&D investment as a
4.84%4.47%0.37%
percentage of revenue
Capitalized R&D expenses
0.000.000.00%
(RMB)
Capitalized R&D expenses as
a percentage of R&D 0.00% 0.00% 0.00%
expenses
Reasons and effects of major changes in the composition of R&D personnel
26Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
□ Applicable √ Not applicable
Reason of significant change of total R&D expenses as a percentage of total revenue compared to last year
□ Applicable √ Not applicable
Reason and explanation of its reasonableness of significant change of the capitalized R&D expenses
□ Applicable √ Not applicable
5. Cash flow
Unit: RMB
Items 2024 2023 YoY Change (%)
Subtotal of cash inflows from
29187824180.9325391076341.9314.95%
operating activities
Subtotal of cash outflows
24821193232.5721667111987.3014.56%
from operating activities
Net cash flows from operating
4366630948.363723964354.6317.26%
activities
Subtotal of cash inflows from
4037542929.401695486300.46138.13%
investing activities
Subtotal of cash outflows
7549080014.382904766053.95159.89%
from investing activities
Net cash flows from investing
-3511537084.98-1209279753.49-190.38%
activities
Subtotal of cash inflows from
2768376499.521606752389.7372.30%
financing activities
Subtotal of cash outflows
3723676041.492698602678.2437.99%
from financing activities
Net cash flows from financing
-955299541.97-1091850288.5112.51%
activities
Net increase in cash and cash
-181453008.941574626897.07-111.52%
equivalents
Explanation of why the related data varied significantly on a YoY basis
√ Applicable □ Not applicable
1. Net cash flow from operating activities increased: Primarily attributable to the growth in cash receipts from
sales of goods and rendering of services.
2. Net cash flow from investment activities decreased: Mainly resulting from increased purchases of securities
firm wealth management products and reverse repurchase agreements of government bonds during the period.
3. Net cash flow from financing activities increased: Principally due to the issuance of restricted shares to
employees in the current period leading to higher cash inflows from equity financing activities.Explanation of reasons leading to the material difference between cash flow from operating activities during the
reporting period and net profit for the year
□ Applicable √ Not applicable
V. Non-core Business Analysis
√Applicable □Not applicable
Unit: RMB
27Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Amount Proportion to net profit Note of Change Sustainability
Realized gains/losses
from settlement of
foreign exchange
derivatives futures
Investment Income -16279865.95 -0.44% No
contracts and
investment income
from bank wealth
management products.Unrealized gains/losses
from fair value
adjustments on foreign
Gains and Losses from
-90733609.50 -2.46% exchange derivatives No
Change of Fair Value
and mark-to-market
valuation of futures
contracts.Non-operating gains
including reversal of
accrued liabilities
Non-operating penalties received
9648962.88 0.26% No
Revenue gains on asset
disposals and bargain
purchase gains from
acquisitions.Loss on disposal of
fixed assets
Non-operating
28017800.98 0.76% compensation No
Expenditures
payments and breach
of contract penalties
Credit Impairment
-56378564.98 -1.53% Bad debt expenses No
Loss
Inventory write-downs
property plant and
Assets Impairment
-62921312.20 -1.70% equipment impairment No
Loss
losses and goodwill
impairment losses
Gains on Disposal of Gain on fixed asset
3016317.77 0.08% No
Properties disposals
VAT refunds for civil-
Government grants
administered welfare
VAT refunds for social
enterprises VAT
welfare enterprises
rebates for software
under civil
products exceeding tax
administration VAT
thresholds and VAT
Other Gains 229205925.38 6.21% rebates for software
additional deductible
products exceeding tax
credits are recurring
thresholds VAT
government incentives
additional deductible
while the remaining
credits and other
items are non-recurring
similar fiscal incentives
in nature.
28Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
VI. Analysis of Assets and Liabilities
1. Material changes of assets
Unit: RMB
December 31st 2024 January 1st 2024 Note of
YoY Change
significant
Percentage of Percentage of (%)
Amount Amount change
total assets total assets
Primarily
attributable to
the increase in
acquisitions
and
construction of
Cash and Bank 5248567646. 6584684683.
14.44% 20.65% -6.21% property plant
Balances 21 93
and equipment
(PP&E)
intangible
assets and
other long-term
assets
Primarily
attributable to
the increase in
sales and the
variance in
accounts
Account 6951066861. 5773991481.
19.12% 18.11% 1.01% receivable
Receivable 07 22
balance caused
by different
distributions of
payment terms
and collection
methods
Primarily
attributable to
5280441824. 4600729378. the increase in
Inventories 14.52% 14.43% 0.09%
48 19 sales and
anticipatory
inventory
Investment
7053153.920.02%8165805.310.03%-0.01%
property
Long-term
Equity 40599793.42 0.11% 37924431.29 0.12% -0.01%
Investment
Primarily
attributable to
9794453949.7730363778.
Fixed Assets 26.94% 24.24% 2.70% the deployment
92 82 of raised capital
and increased
investment in
29Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
automation
equipment
upgrades
Construction in 2171985301. 2036326757.
5.97%6.39%-0.42%
Progress 79 72
Assets with
336584880.000.93%313254745.530.98%-0.05%
right of use
Primarily
Short-term 1553345651. 1212150378. attributable to
4.27%3.80%0.47%
borrowings 16 85 the increase in
unsecured loans
Contractual
49461722.830.14%51788802.030.16%-0.02%
liabilities
Primarily
Long-term 2045772594. 1030801111. attributable to
5.63%3.23%2.40%
borrowings 73 13 the increase in
unsecured loans
Lease liabilities 237913009.51 0.65% 221295481.86 0.69% -0.04%
2677270284.2476839413.
Note receivable 7.36% 7.77% -0.41%
9689
Primarily
attributable to
the increase in
principal-
protected
Other Current 1720539931.
4.73% 251073584.56 0.79% 3.94% income
Assets 75
certificates and
government
bond reverse
repurchase
agreements
Primarily
attributable to
increased
Intangible 1074511282.
2.96% 843866292.82 2.65% 0.31% acquisitions of
Assets 42
land use rights
and overseas
land ownership
Primarily
attributable to
increased
Deferred expenditures on
200664440.750.55%118096436.090.37%0.18%
Charges leased asset
improvements
and tooling &
mold costs
3791834944.3416711594.
Note payable 10.43% 10.71% -0.28%
3864
30Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Primarily
attributable to
sales growth
and the
resultant
increase in
Account 5985427008. 4449940359.
16.46% 13.95% 2.51% accounts
payable 79 81
payable driven
by expanded
procurement
and inventory
buildup
activities
Primarily
attributable to
the increase in
Other payables 545412160.30 1.50% 250642662.86 0.79% 0.71%
repurchase
obligations for
restricted stock
Primarily
attributable to
Non-current
1440093253. the decrease in
liabilities due 590993952.12 1.63% 4.52% -2.89%
93 guaranteed
within one year
loans due
within one year
Primarily
attributable to
Deferred the increase in
607754278.801.67%379140042.481.19%0.48%
Income asset-related
government
grants
Whether the proportion of overseas assets is relatively high
√Applicable □Not applicable
The
Control proportion Whether
measures to of overseas there is
Content of Cause of Operation
Asset scale Location ensure Earnings assets to significant
assets formation mode
asset the impairment
security company's risk
net assets
Research
and
Financial
Sanhua developme
supervision
Internation nt
al Co. Ltd. Equity 21731918 United manufactur 20520746
commissio No
(USA) investment 01.51 States ing sales 3.53
ned
(Consolidat and
external
ed) investment
audit
manageme
nt
Sanhua Manufactur Financial -
Equity 48417262
Internation Singapore ing sales supervision 14070450 No
investment 72.11
al and 3.46
31Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Singapore investment commissio
PTE. Ltd. manageme ned
(Consolidat nt external
ed) audit
2. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Profit and
Cumulative
loss of fair Impairment
changes in Current Current
Opening value accrued in Other Closing
Items fair value purchase sale
balance change in the current changes balance
included in amount amount
the current period
equity
period
Financial Assets
2.Derivativ -
22636112.6237202.4
e financial 16398910.
688
assets 20
Subtotal of -
22636112.6237202.4
financial 16398910.
688
assets 20
-
22636112.6237202.4
Total 16398910.
688
20
Financial 14219110. 65459008. 79678118.liabilities 02 91 93
Whether there were any material changes on the measurement attributes of major assets of the Company during
the reporting period:
□ Yes √ No
3. Assets right restrictions as of the end of reporting period
Items Closing book balance Closing Book value Types ofrestrictions Restriction reason
Cash and Bank
Balances 62214705.42 62214705.42 pledge Margin deposits
Cash and Bank
Balances 3199267.50 3199267.50 pledge Litigation-related frozen funds
Note Receivable 1839461606.51 1839461606.51 pledge Pledged financing facilities
Accounts E-receivables under factoring
receivable 84120090.81 79914086.27 restricted use arrangements (non-recourse)with deferred settlement
Total 1988995670.24 1984789665.70 -- --
32Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
VII. Analysis of Investment
1. Overview
√Applicable □ Not applicable
Investment amount during the reporting Investment amount in the comparative
YoY Change (%)
period (RMB) period (RMB)
362922553.151297612083.54-72.03%
2. Significant equity investment during the reporting period
□Applicable √Not applicable
3. Significant non-equity investment during the reporting period
□Applicable √Not applicable
4. Financial asset investment
(1) Securities Investments
□ Applicable √ Not applicable
No such case in the reporting period.
(2) Derivatives Investments
√Applicable □ Not applicable
1) Derivative investments for hedging purposes during the reporting period
√Applicable □ Not applicable
Unit: RMB in 10 thousand
Ratio of
ending
Gains and investment
Accumulat
losses from Purchase Sales amount to
ed fair
Types of Initial changes in amount amount the
Beginning value Closing
derivative investment fair value during the during the company's
balance changes balance
investments amount in the reporting reporting net assets
recognized
current period period at the end
in equity
period of the
reporting
period
Futures
instruments
foreign
exchange
33Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
instruments
etc.Total
Disclosure
of the
accounting
policies
specific
accounting
principles
applied to
hedging
activities
during the
reporting
period and
whether
there have
been any
material
changes
compared to
the prior
reporting
period
Disclosure
of actual
profit and
loss for the
reporting
period
Disclosure
on the
effectivenes
s of
hedging
activities
Source of
funding for
Own funds
derivative
investment
Disclosure
of risk
analysis and
control
measures
for
derivative To hedge against commodity price volatility and mitigate foreign exchange exposure risks the Company and the
positions subsidiaries engage in derivative instrument transactions including futures contracts and foreign exchange
during the derivatives. Strict adherence is maintained to the Operational Guidelines for Futures Hedging Activities and
reporting Foreign Exchange Risk Hedging Management Policy.period
(Including
but mot
limited to
market risk
liquidity
34Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
risk credit
risk
operational
risk and
legal risk)
Disclosure
of changes
in market
prices or
fair value of
held
derivatives
during the
reporting
period. The
fair value
analysis of
derivatives N/A
shall
disclose the
specific
valuation
methods
employed
along with
the related
assumptions
and
parameter
settings.Litigation
(if N/A
applicable)
Disclosure
Date of
Board
Approval
for April 28 2024
Derivatives
Investments
(if
applicable)
Disclosure
Date of
Shareholder
s' Meeting
Approval
May 20 2024
for
Derivatives
Investments
(if
applicable)
35Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2) Derivative investments for speculative purposes during the reporting period
□Applicable √ Not applicable
No such case in the reporting period.
5. Usage of raised funds
√Applicable □ Not applicable
(1). Overall usage of raised fund
√Applicable □Not applicable
Unit: RMB in 10 thousand
Total
Proport Intende
Accum amountTotal Cumula ion of d use
of
Net amount
ulated tive cumulat and Raised
amount repurpo TotalTotal amount of Utilizat total ive deploy fundsSecuriti sed amount
amount of raised
of ion amount repurpo ment has not
es raised of
Year Method of raised funds
raised ratio of sed status been
Listing funds funds unusedraised investe (3)=(2)/ repurpo raised of used for
Date funds during raised
funds d in the investe (1) sed funds to unutiliz two
(1) the fundsreport d raised total ed years
reportin
period (2) funds raised raisedg
funds funds
period
As of
Decem
ber 31
2024
the
balance
of the
compan
y's
raised
Public
funds
offering
actually
of
allocate
convert June 3 298753 23733. 242409 69782.
2021 300000 81.14% d to
ible 0 2021 .1 3 .03 81
wealth
corpora
manage
te
ment
bonds
product
s
amount
ed to
RMB
694
million
with the
remaini
ng
36Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
funds
held in
the
designa
ted
raised
funds
account.
29875323733.24240969782.
Total -- 300000 81.14% -- 0.13.0381
Description of Overall Usage of Raised Funds
1. The actual amount of raised fund and date of transfer in
Upon approval by the China Securities Regulatory Commission (Approval No. ZJXH [2021] 168) the Company publicly
issued 30 million convertible corporate bonds ("Sanhua Convertible Bonds") in June 2021 each with a face value of RMB 100
raising total proceeds of RMB 3000 million (equivalent to RMB 3 billion). After deducting issuance costs of RMB
12468991.59 the net proceeds amounted to RMB 2987531008.41. The receipt of these funds was verified by Tianjian
Certified Public Accountants which issued the Capital Verification Report (Tianjian Yan [2021] No. 277).As Zhejiang Sanhua Commercial Refrigeration Co. Ltd. (the wholly-owned subsidiary hereinafter "Sanhua Commercial
Refrigeration") is one of the implementation entities for the funded projects the Company has transferred RMB 1487 million
(equivalent to RMB 1.487 billion) of the raised capital to Sanhua Commercial Refrigeration through the capital increase
arrangement.
2. Usage and balance of raised funds
(Unit: RMB in 10 thousand)
Items Index Amount
Net amount of funds raised in the current period A 298753.10
Project investment B1 218675.73
Accumulated amount as of the
beginning of the period
Net income from raised funds B2 5123.08
Project investment C1 23733.30
Amount incurred in this
reporting period
Net income from raised funds C2 8315.66
Project investment D1=B1+C1 242409.03
Accumulated amount by the
end of the period
Net income from raised funds D2=B2+C2 13438.74
Net proceeds for cash management F 69400.00
Calculated balance of raised funds E=A-D1+D2 382.81
Actual balance of raised funds G 382.81
Difference H=E-G 0.00
(2). Statement of Committed Investment Projects of Raised Funds
√Applicable □Not applicable
Unit: RMB in 10 thousand
37Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Committe Whet Invest Cumula Whet
d her Total Accumul ment Date Benef tive her Whether
investmen projec commit Total Invest ative progres of its realized expec feasibilitSecuri t projects t has ted invest ment in investme s at the asset achie benefits ted y of
Name ties and Nature of been invest ment the nt at the end of ready ved in as of benefi projectlisting the project (or
date allocation partial ment of
after current end of the for the the end ts has
of over- raised alterati year the period inten curre of the have changed
raised ly) funds on (1) period (%) ded nt reportin been significa
funds altere (2) (3) = use year g achie ntlyd (2)/ (1) period ved
Committed investment projects
Construct Construct
ion ion
project of project of
commerci commerci
al al
refrigerati refrigerati
on and air on and air Production
conditioni June conditioni and
ng 30 ng infrastructu No 14870 14870 12100. 121428.May
81.66% 31 N/A No
intelligent 2021 intelligent re 0 0 74 89 2025
control control developme
compone compone nt
nts with nts with
an annual an annual
output of output of
65 million 65 million
sets sets
Technical Technical
transform transform
ation ation
project of project of
high- high-
efficiency efficiency
and and
energy- energy- Production
saving saving and
refrigerati June30 refrigerati infrastructu 11632. 39706.7
May
on and air on and air re No 69800 69800 56.89% 31 N/A No2021 56 4conditioni conditioni developme 2025
ng control ng control nt
compone compone
nts with nts with
an annual an annual
output of output of
50.550.5
million million
sets sets
Suppleme Suppleme
ntal June
working 30
ntal Supplement
working ation No 81500 81500 81273.4 99.72% N/A No
capital 2021 capital
Subtotal of committed investment -- 30000 30000 23733. 242409.projects -- -- -- --0 0 3 03
Total -- 30000 30000 23733. 242409. -- -- -- --
00303
38Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Approved by the Company's Board of Directors on August 28 2024 the scheduled operational readiness date
for the "Technical Upgrade Project for Annual Production of 50.50 Million Energy-Efficient Air Conditioning
Control Components" has been postponed from August 2024 to May 2025 with all other project specifications
remaining unchanged.The newly added production capacity under the "Technical Upgrade Project for Annual Production of 50.50
Explanation by Million Energy-Efficient Air Conditioning Control Components" has been progressively realized during the
Project Item on construction period with work-in-progress assets systematically converted into fixed assets. Due to the Company's
Schedule Delays
and Failure to prudent allocation and rational deployment of raised funds—aligned with current product portfolios and evolving
Achieve market dynamics— delays occurred in the procurement commissioning and debugging of certain precision
Projected Returns machining and modular assembly equipment rendering the project temporarily ineligible for finalization. After
(Including comprehensive evaluation of the current construction progress and pending tasks (including equipment
Rationale for commissioning trial operations and final acceptance) the Company has extended the project's scheduled
Selecting "Not operational readiness date to May 2025 under prudent investment principles.Applicable" for The "Technical Upgrade Project for Annual Production of 50.50 Million Energy-Efficient Air Conditioning
Achievement of Control Components" is a capacity-expanding technical upgrade initiative directly implemented by the Company
Expected under integrated management and centralized accounting. The project’s actual economic benefits cannot be
Benefits) separately quantified. According to the feasibility study full production capacity is projected to generate annual
tax-inclusive sales revenue of RMB 1980 million under normal operating conditions which is expected to
significantly enhance the operational performance of the "Energy-Efficient Refrigeration Control Components"
business segment.Separately the "Working Capital Supplement" allocation does not directly yield measurable economic
returns serves no independent analytical purpose and neither its projected nor actual benefits are subject to
discrete evaluation or quantification.Significant
changes in the
feasibility of N/A
projects
Amount usage
and use progress
of over-raised N/A
Funds
Change in
implementation
location of
investment N/A
projects of Raised
Funds
Adjustment to
implementation
method of
investment N/A
projects of Raised
Funds
Advance
investments and Applicable
replacement
status of funds In 2024 the company has not engaged in any advance investments or replacements related to the use of funds
raised for raised through convertible corporate bonds. In 2021 the Company replaced advance investments with raised funds
investment totaling RMB 179.3857 million.projects
Status of
temporary
working capital
supplementation N/A
using idle raised
funds
The amount and
reasons of the
balance of raised
funds in the N/A
project
implementation
Applications of
unused raised The balance of funds raised allocated to wealth management products and time deposits amounted to RMB 694.00
funds million as of the reporting period-end.
39Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Problems or other
situations in the
use and N/A
disclosure of
raised funds
(3). Statement of Altered Investment Projects of Raised Funds
□ Applicable √ Not applicable
There were no changes in raised funds during the reporting period.VIII. Disposal of Significant Assets and Equity
1. Disposal of significant assets
□ Applicable √ Not applicable
During the reporting period there was no disposal of significant assets
2. Disposal of significant equity
□ Applicable √ Not applicable
IX. Analysis of Major Subsidiaries and Investees
√ Applicable □ Not applicable
Information about major subsidiaries and investees that contribute above 10% of the Company’s net Profit
Unit：RMB
Company Company Principal Registered Operating
Total assets Net assets Revenue Net profit
name type business capital profit
Automotiv
Zhejiang
e
Sanhua
component
Automotiv 14584304 78099437 11746817 18100339 15826971
Subsidiary s 2.16 billion
e 463.15 67.62 200.18 49.94 91.87
manufactur
Component
ing and
s Co. Ltd.marketing
Refrigerati
Zhejiang
on and A/C
Sanhua
electrical
Commercia
component 1655.29 31255929 25466709 24323203 48291552 42527089
l Subsidiary
s million 55.93 76.17 60.99 3.23 1.04
Refrigerati
manufactur
on Co.ing and
Ltd.marketing
Refrigerati
Hangzhou
on and A/C
Sanhua
electrical
Micro
component 26996580 14209349 28053740 21328297 18279528
Channel Subsidiary 360 million
s 80.42 04.49 94.80 1.98 8.27
Heat
manufactur
Exchanger
ing and
Co. Ltd.marketing
40Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Refrigerati
Zhejiang
on and A/C
Sanhua 51937144 19526528 59566089 39414607. 20951994.Subsidiary electrical 50 million
Trading 06.42 6.05 66.76 22 35
component
Co. Ltd.s marketing
Refrigerati
on and A/C
electrical
Sanhua
component
Internation
s
al Inc. 37.55
manufactur 21731918 13742835 55444178 29715619 20520746
(United Subsidiary million
ing 01.51 26.83 65.78 6.41 3.53
States) USD
marketing
(Consolidat
and
ed)
investment
manageme
nt
Refrigerati
on and A/C
electrical
Sanhua
component
Internation
s
al 175.151245 - -
manufactur 48417262 11049917 73302751
Singapore Subsidiary 4 million 11831591 14070450
ing 72.11 20.81 63.35
PTE. Ltd. USD 6.95 3.46
marketing
(Consolidat
and
ed)
investment
manageme
nt
Acquisition and disposal of subsidiaries during the reporting period
√ Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall operation and
Name
subsidiaries during the reporting period performance
Hangzhou Lvneng New Energy Vehicle
Contractual acquisition No significant impact
Components Co. Ltd.Zhejiang Sanhua Intelligent Drive Co.Investment and establishment No significant impact
Ltd.Zhejiang Shengtai Paper Industry Co.Investment and establishment No significant impact
Ltd.Sanhua Automotive Components Korea
Investment and establishment No significant impact
Co. Ltd.Sanhua International Singapore PTE.Investment and establishment No significant impact
Ltd. (Consolidated)
Sanhua Intelligent Drive (Thailand) Co.Investment and establishment No significant impact
Ltd.SANHUATROY PROPERTY
Investment and establishment No significant impact
MANAGEMENTLLC
American Tubing International
Liquidation and cancellation No significant impact
Leverage lender LLC
X. Structural Entities Controlled by the Company
□ Applicable √ Not applicable
41Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
XI. Outlook for the Future Development of the Company
1. Development strategy
The Company adheres to the business strategy of "Dedication and Leadership Innovation and Surpassing"
and firmly grasps the product development theme of energy conservation environmental protection and intelligent
control. With the research and application of heat pump technology and thermal management system products as
the core we continuously expand the global business expansion through continuous innovation of products and
technologies. It transformed from "cost leading" to "technology leading" from "mechanical component
development" to "electronic control integrated system control technology solution development" in order to
provide competitive environmental intelligent control solutions for global high-quality customers. Sanhua has
become a global leader in the intelligent climate control systems industry.
2. Business plan for 2025
(1) Refrigeration air conditioning electrical components business
Amid accelerating global energy transition initiatives the Company will persistently strengthen product
competitiveness and expand operational scale. Anchored in the triad of cost-effectiveness operational efficiency
and quality excellence process optimization across design engineering manufacturing procurement and quality
control drives continuous operational enhancement and consolidation of comprehensive comparative advantages.The globally integrated manufacturing footprint enables proactive formulation of cross-border production synergy
strategies aligned with current market conditions and geopolitical projections. Dual breakthroughs in
technological innovation and client diversification facilitate accelerated growth in the data center solutions sector
through cross-business unit synergies. Emerging regional markets are strategically prioritized to unlock future
growth potential.
(2) Automotive components business
The Company will proactively address the new competitive landscape in the NEV market transitioning from
rapid expansion to refined operations by implementing streamlined processes and improving labor efficiency. In
product development we will build upon common technology platforms to enhance modular reuse rates with
focused efforts on strengthening product competitiveness in integrated components valves pumps and heat
exchangers. We will systematically optimize the end-to-end planning chain while improving organizational
capabilities and operational efficiency. Centering on customer needs we will deepen collaboration with strategic
partners while maintaining effective risk control. Furthermore we will standardize lean management practices in
overseas facilities upgrading process equipment capabilities and automation levels.
(3) Strategic emerging businesses
In the field of bionic robotics business the Company has maintained focus on electromechanical actuators
continuing the collaboration with clients on full-series product R&D prototyping iteration and sample
submission. Meanwhile intensified development efforts have been implemented on core components of
electromechanical actuators. Concurrently strategic deployment of overseas production facilities for
electromechanical actuators is underway accompanied by ongoing recruitment to expand R&D personnel aiming
to consolidate first-mover advantage in this emerging market segment.
3. Main risks for future development
(1) Risk of price fluctuation of raw materials
The raw materials required by the Company are copper and aluminum which account for a large proportion
of the cost composition of the products. Therefore the fluctuation of the market price of raw materials will bring
large cost pressure to the Company. The Company will reduce the adverse impact of raw material price
42Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
fluctuations through the establishment of linkage pricing mechanism hedging operation of commodity futures
and timely negotiation with customers.
(2) The risk of rising labor cost
The labor costs are rising year by year which reduces the profit margin of the Company to a certain extent.In the future the Company will continue to improve the level of intelligent manufacturing by continuously
promoting lean production process improvement and technical transformation.
(3) Trade and exchange rate risk
The Company's export volume is large involving North America Europe Japan Southeast Asia and other
regions. Due to the changes in regional trade policies the Company's daily operation will be affected. The
Company deals with interregional trade risks through transferring production capacity to foreign countries. In
addition the fluctuation of exchange rate will also have a certain impact on the profit. According to the actual
situation the Company deals with and reduces this risk by means of forward foreign exchange settlement and
establishing overseas production bases in the United States Poland Mexico Vietnam India and other places.XII. Reception of activities including research communication and interviews during the
report period
√ Applicable □ Not applicable
Main contents
Index of basic
Date of Location of Method of Type of Reception of discussion
situation of the
reception reception reception reception object object and materials
research
provided
Introduction of
Baillie Gifford the company's
http://irm.cninf
January 12 On-site Tony Wang operation and
Hangzhou Institution o.com.cn/ssessg
2024 research etc.31 investors reply to
s/S002050
in total investors'
questions
Introduction of
Qianhai Huxin the company's
http://irm.cninf
January 19 On-site Guoqing Ma operation and
Hangzhou Institution o.com.cn/ssessg
2024 research etc.9 investors reply to
s/S002050
in total investors'
questions
Introduction of
Jiupeng Asset the company's
http://irm.cninf
February Conference Chen Yong etc. operation and
Teleconference Institution o.com.cn/ssessg
202024 Room 929 investors in reply to
s/S002050
total investors'
questions
Introduction of
Schroeder
the company's
Amelia Wong http://irm.cninf
Conference operation and
April 302024 Teleconference Institution etc. 353 o.com.cn/ssessg
Room reply to
investors in s/S002050
investors'
total
questions
Shenzhen Stock Network Introduction of http://irm.cninf
Individual/Instit
May 202024 Exchange's platform online All investors the company's o.com.cn/ssessg
ution
"Interactive-E communication operation and s/S002050
43Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Platform" - reply to
"Cloud investors'
Interviews" questions
Introduction of
Changjiang
the company's
Securities Wu http://irm.cninf
On-site operation and
June 202024 Xinchang Institution Bohua etc. 127 o.com.cn/ssessg
research reply to
investors in s/S002050
investors'
total
questions
Introduction of
Hongdao
the company's
Investment http://irm.cninf
Conference operation and
August 302024 Teleconference Institution Wang Kai etc. o.com.cn/ssessg
Room reply to
278 investors in s/S002050
investors'
total
questions
Abrdn (Hong Introduction of
Kong) the company's
http://irm.cninf
October 31 Conference Cheng Jingyi operation and
Teleconference Institution o.com.cn/ssessg
2024 Room etc. 343 reply to
s/S002050
investors in investors'
total questions
Introduction of
the company's
GIC June Long http://irm.cninf
November 8 operation and
Singapore Other Institution etc.39 investors o.com.cn/ssessg
2023 reply to
in total s/S002050
investors'
questions
XIII. Establishment and implementation progress of the market value management system
and the valuation enhancement plan
Has the Company established the market value management system
√Applicable□Not applicable
Has the company disclosed the valuation enhancement plan
□ Applicable √ Not applicable
The Company convened the 31st Meeting of the 7th Board of Directors on March 25 2025 Proposal on
Establishing the Market Value Management System for Zhejiang Sanhua Intelligent Controls Co. Ltd. was
reviewed and approved.XIV. Implementation status of the "Dual Enhancement of Quality and Returns" action plan
Has the Company disclosed the "Dual Enhancement of Quality and Returns" Action Plan announcement
√ Applicable □ Not applicable
The Company has conscientiously implemented the guiding principles set forth in the Political Bureau of the CPC
Central Committee meeting which emphasized the need to "revitalize the capital market and bolster investor
confidence" as well as those articulated in the State Council Executive Meeting advocating for "substantial
improvements in the quality and investment value of listed companies through more robust and effective measures
to stabilize markets and reinforce confidence." Upholding high-quality development as its primary objective the
Company has pursued tailored strategies to cultivate new quality productive forces in accordance with local
conditions thereby strengthening investor confidence and safeguarding the interests of all shareholders. In
alignment with its development strategy operational status and financial position the Company has formulated
44Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
an Action Plan for the "Dual Enhancement of Quality and Returns." For detailed information please refer to the
Notice Regarding the Action Plan for the "Dual Enhancement of Quality and Returns" (Announcement No.: 2024-
079) disclosed on the CNINFO Information Network on September 4 2024.
45Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Section IV Corporate Governance
I. Basic situation of corporate governance
During the reporting period the Company strictly abided by the Company Law Securities Law Code of
Corporate Governance for Listed Companies Self-regulatory Guidelines for Listed Companies No. 1-
Standardized Operation of Main Board Listed Companies and other applicable laws and regulations of China
Securities Regulatory Commission and Shenzhen Stock Exchange. We continue to improve the corporate
governance structure establish and improve the internal control system strengthen the management of
information disclosure actively carry out the activities of investor relations standardize the operation of the
Company and improve the level of corporate governance. During the reporting period the Company revised the
Articles of Association Rule of Procedure for Shareholders Meeting Rules of Procedure for Board Meetings
Independent Director System Audit Committee System of the Board of Directors Nomination Committee System
of the Board of Directors Compensation and Assessment Committee System of the Board of Directors and
formulated Special Meeting System for Independent Directors and further designed the corporate governance
system. As of the end of the report period the actual situation of corporate governance conforms to the regulatory
documents of CSRC on the governance of listed companies.
1. Shareholders and general meeting of shareholders
The Company convenes the general meeting of shareholders in strict accordance with the requirements of the
Rules for General Meetings of Shareholders of Listed Companies the Articles of Association and the Rules of
Procedure of the Shareholders' Meeting. When the shareholders' meeting deliberates related matters the related
shareholders shall avoid voting. The related transactions shall be fair and reasonable without any damage to the
interests of shareholders. Treat all shareholders equally ensure that all shareholders especially minor
shareholders have equal status and fully exercise their rights. The shareholders' meetings held during the
reporting period were convened by the board of directors and lawyers were invited to attend the meeting on site.
2. Directors and the board of directors
The Company elect directors in strict accordance with the Articles of Association and Rules of Procedure for
the Board of Directors; the number and composition of the board of directors meet the requirements of laws and
regulations and the Articles of Association. The board of directors convenes meetings in accordance with the
Company Law and the Rules of Procedure of the Board of Directors. All directors exercise their rights diligently
attend the board of directors and shareholders' meeting and actively participate in relevant training.
3. Supervisors and board of supervisors
The board of supervisors elects the supervisors in strict accordance with the Company Law and the Articles
of Association; the composition and number of the board of supervisors meet the requirements of laws and
regulations. The Company's supervisors conscientiously perform their duties in accordance with the Rules of
Procedure of the Board of Supervisors and effectively supervise and express their opinions on the Company's
major issues related party transactions financial situation and the legality and compliance of the Company's
directors and senior managers in performing their duties.
4. Relationship between controlling shareholders and listed companies
46Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
The controlling shareholders can strictly regulate their own behaviors. There is no direct or indirect
intervention beyond the provisions of general meeting of shareholders. The Company and its controlling
shareholders are mutually independent of each other in personnel assets finance institutions and business. The
board of directors board of supervisors and internal institutions of the Company operate independently. There is
no such situation that the controlling shareholders occupy the funds of the listed company for non-operating
purposes.
5. Information disclosure and investor relationship management
During the reporting period the Company designated Securities times Shanghai Securities News and
CNINFO as the information disclosure media and disclosed information truthfully accurately and timely in strict
accordance with relevant laws and regulations so as to ensure that all shareholders of the Company have fair
access to the relevant information. In addition the Company designated the secretary of the board of directors as
the person in charge of investor relationship management. Daily management of investor relations includes
answering investors' questions through telephone email interactive platform etc. strengthening the
communication with investors so as to fully guarantee the investors' right to learn the truth.
6. Performance evaluation and incentive mechanism
The Company has established a comprehensive employee performance evaluation and incentive mechanism.The appointment of senior managers is open and transparent and conforms to the relevant laws regulations and
the Articles of Association. In the future the Company will explore more forms of incentive methods form a
multi-level incentive mechanism improve the performance evaluation standards better mobilize the work
enthusiasm of management personnel and attract and stabilize excellent management talents and technical and
business backbones.
7. Stakeholders
The Company can fully respect and safeguard the legitimate rights and interests of stakeholders and realize
the coordination and balance of interests of shareholders employees and society. The Company adheres to the
relevant laws and regulations constantly improves the corporate governance system and effectively protects the
interests of investors.Whether the actual status of corporate governance significantly deviates from the laws administrative regulations
and the regulatory documents issued by the China Securities Regulatory Commission regarding the governance of
listed companies
□ Yes √ No
The actual status of corporate governance does not significantly deviate from the laws administrative regulations
and the regulatory documents issued by the China Securities Regulatory Commission regarding the governance of
listed companies
II. Company’s Independence in Assets Persons Financial affairs Institutions and Business
from Controlling Shareholders
The Company is separated from the controlling shareholder the actual controller and the controlled
enterprises in business personnel assets institutions and finance and has the ability of independent operation.
47Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
1. Business independence
The main business of the Company is outstanding and it has its own corresponding system in production
procurement and sales. It is independent of the controlling shareholder has a complete business structure and
does not rely on the shareholders or any other related parties. The shareholders exercise their right through
participating in the general meeting of shareholders in accordance with the law. There is no such situation that the
shareholders interfere in the operation beyond the provision of general meeting.
2. Personnel independence
The directors supervisors and senior management of the Company are elected or appointed in accordance
with the legal election procedure stipulated in the Company Law and the Articles of Association. The Company's
personnel labor and wages are completely independent. The salary payment welfare expenses and other expenses
of the staff are strictly separated from the controlling shareholder.
3. Asset completeness
The Company has tangible assets such as land buildings machinery and equipment vehicles office
facilities test facilities and intangible assets such as trademarks patents proprietary technology. It has an
independent procurement and sales system and an independent and complete asset structure.
4. Institution independence
In accordance with the relevant provisions of the Company Law and the Articles of Association the
Company has established the institutions like general meeting of shareholders the board of directors the board of
supervisors and other authorities and formulated the corresponding rules of procedure. The Company's
production and operation sites are separated from the controlling shareholders and a comprehensive
organizational system has been established. The board of directors the board of supervisors and other internal
institutions operate independently. There is no such situation that the controlling shareholder interferes in the
business activities in the name of the listed company.
5. Finance independence
The Company has an independent financial department equipped with full-time financial personnel and
established an independent accounting system and financial management system that can independently make
financial decisions. The Company has separate accounts and pays taxes independently opens independent account
in bank and makes financial decisions independently.III. Horizontal Competition
□ Applicable √ Not applicable
IV. Annual General Meeting and Extraordinary General Meetings convened during the
Reporting Period
1. Annual general meeting of shareholders convened during the reporting period
Proportion of
Meeting Nature participating Convened Date Disclosure Date Disclosure Index
investors
48Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Announcement of
the 1st
Extraordinary
The 1st General Meeting
extraordinary Interim general of Shareholders in
general meeting of meeting of 17.37% May 6 2024 May 7 2024 2024 (2024-028)
shareholders in shareholders was published in
2024 the Securities
Times Shanghai
Securities Journal
and CNINFO.Announcement of
the 2023 Annual
Shareholders'
Annual general Meeting (2024-
Annual general
meeting of May 21 2024 038) was
meeting of 60.96% May 20 2024
shareholders of published in the
shareholders
2023 Securities Times
Shanghai
Securities Journal
and CNINFO.Announcement of
the 2nd
Extraordinary
The 2nd General Meeting
extraordinary Interim general of Shareholders in
general meeting of meeting of 62.34% June 20 2024 June 21 2024 2024 (2024-055)
shareholders in shareholders was published in
2024 the Securities
Times Shanghai
Securities Journal
and CNINFO.Announcement of
the 3rd
Extraordinary
The 3rd General Meeting
extraordinary Interim general of Shareholders in
September 19 September 20
general meeting of meeting of 57.17% 2024 (2024-080)
20242024
shareholders in shareholders was published in
2024 the Securities
Times Shanghai
Securities News
and CNINFO.Announcement of
the 4th
Extraordinary
The 4th General Meeting
extraordinary Interim general of Shareholders in
December 30 December 31
general meeting of meeting of 57.60% 2024 (2024-105)
20242024
shareholders in shareholders was published in
2024 the Securities
Times Shanghai
Securities News
and CNINFO.
49Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2. Extraordinary general meetings convened at the request of preferred shareholders with resumed voting
rights:
□ Applicable √ Not applicable
V. Information of directors supervisors senior management
1. Basic information
Shares
Shares Shares
held at Shares Reaso
increas decrea
Comm Termi the Other held at ns for
ed sed
encem nation beginn change the end increas
Gende Tenure during during
Name Age Title ent of of term ing of s of the e or
r status the the
term of of the (Share Period decrea
Period Period
office office Period s) (Share se of
(Share (Share
(Share s) shares
s) s)
s)
Chair
man of Decem
Zhang Incum 39024 39024
Male 51 the ber 13
Yabo bent 200 200
board 2012
CEO
Direct Equity
Wang Decem
or Incum 25256 10000 35256 Incent-
Dayon Male 56 ber 13
Presid bent 2 0 2 ive
g 2012
ent Grant
Januar
Ren Direct Incum
Male 63 y 26
Jintu or bent
2022
Equity
Ni
Direct Incum May 6 24506 32506 Incent-
Xiaom Male 57 80000
or bent 2011 2 2 ive
ing
Grant
Direct
Nove Equity
Chen or
Incum mber 33675 41675 Incent-
Yuzho Male 59 chief 80000
bent 29 0 0 ive
ng engine
2011 Grant
er
Zhang May
Direct Incum
Shaob Male 46 18
or bent
o 2015
Indepe
August
Bao ndent Incum
Male 57 3
Ensi directo bent
2021
r
Indepe
May
Shi ndent Incum
Male 53 19
Jianhui directo bent
2020
r
Indepe
Februa
Pan Femal ndent Incum
60 ry 26
Yalan e directo bent
2021
r
Zhao Male 54 Conve Incum Nove
50Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Yajun ner of bent mber
the 29
board 2011
of
superv
isors
August
Mo Superv Incum
Male 49 3 14568 14568
Yang isor bent
2021
Emplo
Chen yee March
Incum
Xiaom Male 56 representative 26 11100 11100bent
ing superv 2011
isor
Vice
preside
nt
Secret Equity
Hu Januar
ary of Incum 25256 33256 Incent-
Kaiche Male 50 y 26 80000
the bent 2 2 ive
ng 2015
board Grant
of
directo
rs
Vice Septe Equity
Yu
preside Incum mber 28386 36386 Incent-
Yingk Male 51 80000
nt bent 30 9 9 ive
ui
CFO 2011 Grant
404204200040840
Total -- -- -- -- -- -- 0 --
6730673
During the reporting period whether there was any resignation of directors and supervisors and dismissal of
senior managers during their term of office
□ Applicable √ Not applicable
Changes of Directors Supervisors and Senior Management
□ Applicable √ Not applicable
2. Positions and Incumbency
The professional background main work experience and main responsibilities of the current directors supervisors
and senior managers of the company
Mr. Zhang Yabo: Born in 1974 master of Business Administration of CEIBS. Graduated from Shanghai Jiao
Tong University in July 1996. From May 2007 to September 2009 he served as the vice president of Sanhua
Holding Group Co. Ltd.; from May 2007 up to present he has been appointed as the director and vice chairman
of the board of directors of Sanhua Holding Group Co. Ltd.; He has served as Chairman of Xinchang Huaxin
Industrial Co. Ltd. since March 2016 and as Chairman of Hangzhou Sanhua Research Institute Co. Ltd. since
February 2017. From September 2009 to December 2012 he served as the general manager of the Company; from
October 2009 up to present he has been appointed as the director of the Company; from December 2012 up to
present he has served as the chairman of the board and CEO of the Company.
51Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Mr. Wang Dayong: Born in 1969 master’s degree senior economist and engineer. He served as chief of planning
section Secretary of general manager director of manufacturing department director of refrigeration valve
business department assistant to general manager assistant to President vice president and director of Sanhua
Holding Group Co. Ltd. He served as a supervisor of the Company from December 2001 to April 2006 a director
of the Company from April 2006 to May 2011. He has served as Director of Ningbo Jia ’ erling Pneumatic
Machinery Co. Ltd. since October 2023. He currently serves as a director of Sanhua Holding Group Co. Ltd and
a director and President of the Company since December 2012.Mr. Ren Jintu: Born in 1962 associate degree associate senior accountant. From 1980 to 1994 he successively
served as deputy factory director financial director and deputy general manager of Xinchang Refrigeration Parts
General Factory and Zhejiang Sanhua Group Co. Ltd; He has served as director of Sanhua Holding Group Co.Ltd. since August 1994 and as a director of Zhejiang Sanhua Lvneng Industrial Group Co. Ltd. since March 2001.From 2001 to 2006 he served as the director and general manager of the Company; From 2005 to 2015 he served
as vice president of Sanhua Holding Group Co. Ltd. and general manager of Shanghai Jingyi Real Estate Co. Ltd;
He served as a director of Ningbo Fuerda Intelligent Technology Co. Ltd since April 2021; He served as a
director of the Company since January 2022.Mr. Ni Xiaoming: Born in 1968 master’s degree senior economist. From January 2009 to July 2009 he served as
the deputy general manager of sales of the Company; August 2009 he served as the deputy general manager of
Sanhua Danfoss (Hangzhou) Microchannel Heat Exchanger Co. Ltd; since May 2010 he has served as the
general manager of Sanhua (Hangzhou) Micro Channel Heat Exchanger Co. Ltd as well as the director of
Sanhua Holding Group Co. Ltd; He has been a director of the Company since May 2011.Mr. Chen Yuzhong: Born in 1966 master’s degree senior engineer. He was the chief engineer of the Company
from December 2001 to May 2011; he was the deputy general manager of the Company from May 2011 to
December 2012; he has been the chief engineer of the Company since December 2012; he has been the general
manager of Zhejiang Sanhua Refrigeration Group Co. Ltd. since August 2015; he has served as Director and
General Manager of Zhejiang Sanhua Commercial Refrigeration Co. Ltd. since October 2020; he is also the
director of Sanhua Holding Group Co. Ltd; and he has been the director of the Company since November 2011.Mr. Zhang Shaobo: Born 1979 master’s degree graduated from the China Europe Institute of Business School.He served as general manager of Sanhua Real Estate Group and Zhejiang Sanhua Real Estate Co. Ltd; since July
2013 he has served as general manager of Hangzhou Sanhua International Building Co. Ltd; From May 2017 he
has served as executive director and general manager of Zhejiang Sanhua Zhicheng Real Estate Development Co.Ltd; he currently serves as a director and assistant president of Sanhua Holding Group Co. Ltd. From May 2015
up to present he has served as the director of the Company.Mr. Bao Ensi: Born in 1968 doctoral degree senior accountant. He has served as director of division and full-
time member of the Stock Issuance Review Committee at the China Securities Regulatory Commission (CSRC);
Head of finance department and expert at the investor education center of china financial futures exchange
(CFFEX). Served as assistant to the chairman at Beijing Houji Capital Management Co. Ltd. from January 2015
to November 2024. Formerly acted as independent director for Fujian Yanjing Huiquan Brewery Co. Ltd.Northern International Cooperation Co. Ltd. Sunwave Communications Co. Ltd. Aerospace Times Electronics
52Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Technology Co. Ltd. and China Railway Trust Co. Ltd. He has been an independent director of the Company
since August 2021.Mr. Shi Jianhui: Born in 1972 master’s degree. He used to be the chairman / CEO of Minth Group Co. Ltd.He currently serves as executive managing partner of Ningbo Meishan Bonded Port Area Xiaozhi Venture Capital
Partnership (Limited Partnership) executive managing partner of Ningbo Lingdong Venture Capital Partnership
(Limited Partnership) and executive managing partner of Hangzhou Chishi Enterprise Management Consulting
Partnership (Limited Partnership). Currently holds positions as director of Bomei Intelligent Technology
(Shanghai) Co. Ltd. chairman of Hangzhou Haomian Technology Co. Ltd. and director of Shanghai Shiji
Technology Co. Ltd. He has been serving as independent director of AAPICO Hitech Public Company Limited
since June 2022 and as independent director of Ningbo Fangzheng Automotive Mould Co. Ltd. since December
2023. He has been appointed as an independent director of the Company since May 2020.
Ms. Pan Yalan: Born in 1965 master’s degree a member of the League of Civil Society. She is a non-practicing
Certified Public Accountant (CPA). She currently serves as Professor at the School of Accounting Hangzhou
Dianzi University and Master's Supervisor. She has been serving as Independent Director of Zhejiang Daily
Digital Culture Group Co. Ltd. since December 2021 and as independent director of Xianheng International
Technology Co. Ltd. since September 2023. She has been appointed as an independent director of the Company
since February 2021.Mr. Zhao Yajun: Born in 1971 master’s degree senior accountant. He Engaged in auditing work at Zhejiang
Tianjian Accounting Firm from 1996 to 2003. Served as deputy director of the finance department at Sanhua
Holding Group Co. Ltd. from January 2004 to February 2011; He held the position of director of the finance
department at Sanhua Holding Group Co. Ltd. from February 2011 to February 2014; He has been serving as
deputy financial director of Sanhua Holding Group Co. Ltd. since March 2014. Currently acts as supervisor of
Zhejiang Sanhua Lvneng Industrial Group Co. Ltd. since July 2019 supervisor of Ningbo Fuerda Intelligent
Technology Co. Ltd. since April 2021 and supervisor of Ningbo Jiaerling Pneumatic Machinery Co. Ltd. since
October 2023. He has been a supervisor of the Company since November 2011.Mr. Mo Yang: Born in 1976 master's degree. He was a teacher of the Economic Branch of the City College of
Zhejiang University from April 2002 to June 2004; From July 2004 to April 2006 he served as assistant to the
executive deputy general manager of Zhejiang Sanhua Climate & Appliance Controls Group Co. Ltd.; From
August 2005 to December 2019 he successively served as the secretary of the president the secretary of the
chairman of the board of directors the vice minister of human resources department and the minister of the
president's office of Sanhua Holding Group Co. Ltd; Has been serving as supervisor of Sanhua Holding Group
Co. Ltd. since November 2014; From December 2019 to now he has served as the minister of the board of
directors office in Sanhua Holding Group Co. Ltd. From January 2020 to present he has served as the Secretary
General of the Board of Directors of Sanhua Holdings Group Co. Ltd. He has been a supervisor of the Company
since August 2021.Mr. Chen Xiaoming: Born in 1969 associate degree. In August 2013 he served as minister of quality department
and vice minister of four-way valve business department of Wuhu Sanhua Automatic Control Components Co.Ltd.; in January 2016 he served as minister of Quality Department of Wuhu Sanhua Automatic Control
53Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Components Co. Ltd; in December 2016 he served as minister of four-way valve department and service valve
department of Wuhu Sanhua Automatic Control Components Co. Ltd.; from August 2017 up to present he has
served as Manufacturing Director minister of four-way valve department and service valve department of Wuhu
Sanhua Automatic Control Components Co. Ltd. From April 2022 to present he has served as the Deputy
General Manager as well as minister of Manufacturing Department and Product Business Department of Sanhua
(Vietnam) Co. Ltd. Since March 2011 he has been appointed as employee representative supervisor of the
Company.Mr. Hu Kaicheng: Born in 1975 master's degree bachelor's degree of Tongji University SAIF EMBA of
Shanghai Jiao Tong University. From August 2006 to August 2009 he served as the director of supplier
management procurement director of Zhejiang Sanhua Climate & Appliance Controls Group Co.Ltd. and
procurement director of the Company; from September 2009 to December 2010 he served in Sanhua Holding
Group Co. Ltd.; from January 2011 to October 2014 he served as the procurement director of the Company;
Since September 2023 he has been serving as an independent director of Pinwo Food Co. Ltd. Since October
2023 he has been appointed as the chairman of Hangzhou Xiantu Electronics Co. Ltd. From October 2014 up to
present he has served as the vice president of the Company. From January 2015 up to present he has served as
the Secretary of the board of directors of the Company.Mr. Yu Yingkui: Born in 1974 bachelor degree accountant accounting major of Shanghai University of Finance
and Economics. From April 2001 to December 2003 he successively served as the chief accountant of the
financial department of Zhejiang Sanhua Holding Group Co. Ltd. and Zhejiang Sanhua Climate & Appliance
Controls Group Co.Ltd.; from December 2003 to November 2007 he served as the deputy general manager of
Shenyang Durui Wheel Hub Co. Ltd.; from November 2007 up to present he has been the minister of the
financial department of the Company; from September 2011 up to present he has been the chief financial officer
of the Company; from January 2016 up to present he has been the vice president of the Company.Position held in shareholders’ entities
√Applicable □Not applicable
Compensation and
Position in
Shareholder's Commencement of Termination of the allowance from the
Name shareholders’
entity the term term shareholders'
entities
entity
Sanhua Holding Vice chairman
Zhang Yabo July 11 2000 No
Group Co. Ltd (director)
Sanhua Holding
Wang Dayong Director July 11 2000 No
Group Co. Ltd
Sanhua Holding
Ren Jintu Director July 11 2000 Yes
Group Co. Ltd
Zhejiang Sanhua
Ren Jintu lvneng Industrial Director March 15 2011 No
Group Co. Ltd
Sanhua Holding
Ni Xiaoming Director July 11 2000 No
Group Co. Ltd
Sanhua Holding November 26
Chen Yuzhong Director No
Group Co. Ltd 2014
Sanhua Holding
Zhang Shaobo Director August 7 2003 No
Group Co. Ltd
Zhang Shaobo Zhejiang Sanhua Director August 14 2023 Yes
54Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
lvneng Industrial
Group Co. Ltd
Zhejiang Sanhua
Zhao Yajun Lvneng Industrial Supervisor July 1 2019 No
Group Co. Ltd
Sanhua Holding November 26
Mo Yang Supervisor Yes
Group Co. Ltd 2014
Positions held in other entities
√Applicable □ Not applicable
Compensation and
Positions in other Commencement of Termination of the
Name Other entities allowance from
entities the term term
other entities
Xinchang Huaxin Chairman of the
Zhang Yabo March 16 2016 No
Industrial Co. Ltd Board
Hangzhou
Zhicheng
Zhang Yabo Investment Executive Director July 23 2007 No
Management Co.Ltd.Hangzhou Zhishen
Investment
Zhang Yabo Supervisor July 23 2007 No
Management Co.Ltd
Hangzhou Sanhua
Chairman of the
Zhang Yabo Research Institute February 10 2017 No
Board
Co. Ltd
Sanhua Trading
Zhang Yabo Singapore Private Director October 13 2017 No
Limited
Zhejiang Haoyuan
Zhang Yabo Technology Co. Director May 4 2018 No
Ltd
Wuhu ALDOC
Zhang Yabo Technology Co. Director February 3 2016 No
Ltd
Hangzhou Tianfan
Wang Dayong Management Director April 28 2016 November 1 2024 No
Cosulting Co. Ltd
Xinchang
Huayong
November 11
Wang Dayong Enterprise Executive Director No
2021
Management Co.Ltd
Guochuang
Energy Internet
Wang Dayong Innovation Center Director August 20 2019 No
(Guangdong) Co.Ltd
Zhejiang Sanhua
Industrial
Wang Dayong Executive Director August 1 2023 No
Automation Co.Ltd
Ningbo Jiaerling
Wang Dayong Pneumatic Director October 9 2023 No
Machinery Co.
55Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Ltd
Hangzhou Tianfan
Ren Jintu Management Director July 9 2010 November 1 2024 No
Cosulting Co. Ltd
Ningbo Fuerda
Intelligent
Ren Jintu Technology Co. Director April 8 2021 No
Ltd
Hangzhou Sanhua
Ren Jintu International Supervisor July 31 2013 No
Building Co. Ltd
Shenyang Sanhua
Daika Wheel Hub
Ren Jintu Director December 1 2006 No
Co. Ltd.
(Bankruptcy)
Xinchang County
Zhonghe
Chairman of
Ren Jintu Enterprise April 8 2018 No
Supervisory Board
Management
Cosulting Co. Ltd
Xinchang County
United Investment
Ren Jintu Supervisor April 29 2015 No
Management Co.Ltd
Zhejiang Sanhua
Ren Jintu Zhiyuan Real Director October 30 2023 No
Estate Co. Ltd.Hangzhou Tianfan
Director and
Zhang Shaobo Management July 9 2010 No
manager
Cosulting Co. Ltd
Zhejiang Huateng Chairman of the December 22
Zhang Shaobo No
Industrial Co. Ltd Board 2021
Ningbo Fuerda
Intelligent December 26
Zhang Shaobo Director No
Technology Co. 2019
Ltd
Hangzhou Zhishen
Executive Director
Investment
Zhang Shaobo and General July 23 2007 No
Management Co.Manager
Ltd
Hangzhou
Zhicheng
Zhang Shaobo Investment Manager November 4 2020 No
Management Co.Ltd
Inner Mongolia
September 11
Zhang Shaobo Xiqi Mining Co. Supervisor No
2012
Ltd
Zhejiang Sanhua
Ecological Executive September 11
Zhang Shaobo No
Agriculture Co. Director Manager 2018
Ltd
Hangzhou Kaisida
Zhang Shaobo Technology Co. Executive Director December 1 2018 No
Ltd
Zhang Shaobo Hangzhou Sanhua Executive Director July 31 2013 No
56Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
International and General
Building Co. Ltd Manager
Tianjin Sanhua
Industrial Park Executive
Zhang Shaobo October 1 2018 No
Management Co. Director Manager
Ltd
Xinchang County
Zhonghe
Zhang Shaobo Enterprise Director April 8 2018 No
Management
Cosulting Co. Ltd
Hangzhou Fuxiang
Property Chairman of the
Zhang Shaobo January 3 2016 No
Management Co. Board
Ltd
Shaoxing Sanhua
Zhiyue Real Estate Executive
Zhang Shaobo September 1 2022 No
Development Co. Director Manager
Ltd
Shanghai Sanhua Executive
Zhang Shaobo April 10 2017 No
Electric Co. Ltd Director Manager
Xinchang County
United Investment
Zhang Shaobo Director April 29 2015 No
Management Co.Ltd
Shanghai Tihu September 26
Zhang Shaobo Director March 12 2024 No
Catering Co. Ltd 2017
Hangzhou Zhiwo
Investment
Zhang Shaobo General Manager June 16 2014 No
Management Co.Ltd
Xinchang County
Sanhua Property Chairman of the
Zhang Shaobo March 29 2011 No
Management Co. Board
Ltd
Xinchang Sanhua
Hongdao Venture
Zhang Shaobo Capital Partnership Executive Partner July 12022 No
(limited
partnership)
Xinchang Zhushi
Venture Capital
Zhang Shaobo Partnership Executive Partner June 9 2022 No
(limited
partnership)
Hangzhou Sanhua
Hongdao Venture
Capital Partnership
Zhang Shaobo Executive Partner May 7 2017 No
Enterprise
(Limited
Partnership)
Zhejiang Sanhua
Zhang Shaobo Zhiyuan Real General Manager October 30 2023 No
Estate Co. Ltd.China Railway Independent
Bao Ensi May 25 2022 July 18 2024 Yes
Trust Co. Ltd. Director
Shi Jianhui Baimei Smart Director January 1 2020 Yes
57Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Technology
(Shanghai) Co.Ltd.Hangzhou
Haomian
Shi Jianhui General Manager August 19 2021 No
Technology Co.Ltd
Shanghai Shijia
Shi Jianhui Technology Co. Director January 26 2022 No
Ltd
Ningbo Meishan
Bonded Port Zone
Xiaozhi
Entrepreneurship
September 22
Shi Jianhui Investment Executive Partner No
2017
Partnership
Enterprise
(Limited
Partnership)
Ningbo Lingdong
Entrepreneurship
Investment
Shi Jianhui Partnership Executive Partner July 28 2020 No
Enterprise
(Limited
Partnership)
Hangzhou Chishi
Enterprise
Management
Shi Jianhui Consulting Executive Partner August 3 2022 No
Partnership
(Limited
Partnership)
Shanxi Sishan
Ningrui
December 16
Shi Jianhui Construction General Manager February 16 2023 No
2024
Engineering Co.Ltd
Ningbo Fangzheng
Independent December 11 December 10
Shi Jianhui Automotive Mold Yes
Director 2023 2026
Co. Ltd
AAPICO Hitech
Independent
Shi Jianhui Public Company June 29 2022 Yes
Director
Limited
Lin'an Rural
Independent
Pan Yalan Commercial Bank October 15 2019 October 12 2024 Yes
Director
Co. Ltd
Zhejiang Daily
Independent December 22
Pan Yalan Digital Culture October 16 2026 Yes
Director 2021
Group Co. Ltd
Xianheng
International Independent September 25 September 24
Pan Yalan Yes
Technology Co. Director 2023 2026
Ltd
Xinchang Huaxin
Zhao Yajun Director March 21 2017 No
Industrial Co. Ltd
Zhao Yajun Ningbo Fuerda Supervisor April 8 2021 No
58Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Intelligent
Technology Co.Ltd
Zhejiang Xiezhong
Automobile New
Energy
Zhao Yajun Supervisor May 25 2018 No
Technology
Development Co.Ltd
Shanghai
Fuyulong
December 26
Zhao Yajun Automotive Supervisor No
2019
Technology Co.Ltd
Xinchang Private
Zhao Yajun Financing Service Supervisor March 26 2014 No
Center Co. Ltd
Fuerda (Tianjin)
Intelligent
Zhao Yajun Supervisor November 2 2018 No
Technology Co.Ltd
Zhejiang Haoyuan
Zhao Yajun Technology Co. Supervisor May 4 2018 No
Ltd
Hangzhou
Tongchan
Zhao Yajun Supervisor May 31 2011 No
Machinery Co.Ltd
Shanghai Sanhua
Zhao Yajun Supervisor April 12 2011 No
Electric Co. Ltd
Wuhu ALDOC
Zhao Yajun Technology Co. Supervisor July 31 2018 No
Ltd
Xinchang County
United Investment
Zhao Yajun Supervisor January 1 2012 No
Management Co.Ltd
Xiezhong
International
Chairman of the
Thermal
Zhao Yajun Board of February 28 2019 No
Management
Supervisors
System (Jiangsu)
Co. Ltd
Ningbo Jiaerling
Pneumatic
Zhao Yajun Supervisor October 9 2023 No
Machinery Co.Ltd
Pinwo Food Co. Independent
Hu Kaicheng September 8 2023 September 7 2026 Yes
Ltd Director
Zhejiang Huateng
Yu Yingkui Director April 19 2010 No
Industrial Co. Ltd
Xinchang Private
Yu Yingkui Financing Service Director October 23 2015 No
Center Co. Ltd
Chongqing Tainuo
Yu Yingkui Machinery Co. Director December 8 2016 No
Ltd
59Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Ningbo Jinlifeng
Yu Yingkui Machinery Co. Director July 2 2020 No
Ltd
Sanhua Trading
Yu Yingkui Singapore Private Director October 13 2017 No
Limited
The above
employment in
other entities does
not include the
employment of
directors
Description of supervisors and
employment in senior
other organizations management in
subsidiaries within
the scope of the
Company's
consolidated
financial
statements.Incumbent and resigned directors supervisors and senior management personnel during the reporting period that
have been imposed administrative penalties by the CSRC during the last three years.□ Applicable √ Not applicable
3. Remuneration of directors supervisors and senior management personnel
Decision-Making Procedures Determination Basis and Actual Payment of Remuneration for Directors
Supervisors and Senior Management
Decision-making Process
The salaries of directors supervisors and senior management personnel shall be determined in accordance with
the standards stipulated in the Company's unified salary management system. According to the Company's
performance evaluation mechanism regular evaluations are conducted on the directors supervisors and senior
management personnel and compensation is determined based on the evaluation results. The allowance standards
for independent directors shall be reviewed and decided in the shareholders' meeting.Basis for determination
The remuneration of directors supervisors and senior management personnel is determined based on the
company's operating performance and performance evaluation indicators.Remuneration of directors supervisors and senior management personnel
Unit: RMB in 10 thousand
Total
remuneration Remuneration
Name Gender Age Title Tenure status from the from related
Company parties (Y/N)
(RMB'0000)
60Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Director
Zhang Yabo Male 51 Incumbent 331.4 No
Chairman CEO
Director
Wang Dayong Male 56 Incumbent 533.05 No
President
Ren Jintu Male 63 Director Incumbent 0 Yes
Ni Xiaoming Male 57 Director Incumbent 264.79 No
Director chief
Chen Yuzhong Male 59 Incumbent 586.82 No
engineer
Zhang Shaobo Male 46 Director Incumbent 0 Yes
Independent
Bao Ensi Male 57 Incumbent 10.8 No
director
Independent
Shi Jianhui Male 53 Incumbent 10.8 No
director
Independent
Pan Yalan Female 60 Incumbent 10.8 No
director
Convener of the
Zhao Yajun Male 54 board of Incumbent 0 Yes
supervisors
Mo Yang Male 49 Supervisor Incumbent 0 Yes
Chen Xiaoming Male 56 Supervisor Incumbent 54.7 No
Vice president
Secretary of the
Hu Kaicheng Male 50 Incumbent 138.61 No
board of
directors
Vice president
Yu Yingkui Male 51 Incumbent 177.63 No
CFO
Total -- -- -- -- 2119.4 --
Explanation of other situations
□ Applicable √ Not applicable
VI. Performance of duties by directors during the reporting period
1. Board of directors in the reporting period
Meeting Convened Date Disclosure Date Disclosure Index
The 20th interim meeting of
April 19 2024 April 20 2024 http://www.cninfo.com.cn
the 7th board of directors
The 21st meeting of the 7th
April 28 2024 April 30 2024 http://www.cninfo.com.cn
board of directors
The 22nd interim meeting of
May 13 2024 May 15 2024 http://www.cninfo.com.cn
the 7th board of directors
61Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
The 23rd interim meeting of
June 3 2024 June 5 2024 http://www.cninfo.com.cn
the 7th board of directors
The 24th interim meeting of
July 22 2024 July 23 2024 http://www.cninfo.com.cn
the 7th board of directors
The 25th interim meeting of
August 5 2024 August 6 2024 http://www.cninfo.com.cn
the 7th board of directors
The 26th interim meeting of
August 28 2024 August 30 2024 http://www.cninfo.com.cn
the 7th board of directors
The 27th meeting of the 7th
October 22 2024 October 23 2024 http://www.cninfo.com.cn
board of directors
The 28th interim meeting of
October 30 2024 October 31 2024 http://www.cninfo.com.cn
the 7th board of directors
The 29th interim meeting of
December 12 2024 December 14 2024 http://www.cninfo.com.cn
the 7th board of directors
The 30th interim meeting of
December 30 2024 December 31 2024 http://www.cninfo.com.cn
the 7th board of directors
2. Attendance of directors in board meetings and general meetings
Attendance of directors in board meetings and general meetings
Board Board
meeting Board meeting not
Board Board Board Presence of
presence meeting attend in directors in
Name of meeting meeting meeting
required in presence person for general
Director presence on presence on absence
the reporting through a two meetings
site (times) site (times) (times)
period proxy (times) consecutive (times)
(times) times
Zhang Yabo 11 1 10 0 0 No 4
Wang
11 1 10 0 0 No 4
Dayong
Ren Jintu 11 1 10 0 0 No 4
Ni Xiaoming 11 1 10 0 0 No 0
Chen
11 1 10 0 0 No 3
Yuzhong
Zhang
11 0 11 0 0 No 0
Shaobo
Bao Ensi 11 1 10 0 0 No 0
Shi Jianhui 11 1 10 0 0 No 0
Pan Yalan 11 1 10 0 0 No 4
Explanation of not attending the board of directors in person for two consecutive times
Not applicable
62Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
3. Objections raised by directors to relevant matters of the Company
Whether there is any objection on related issues of the Company from directors
□ Yes √ No
During the reporting period there is no objection on related issues of the Company from directors.Whether there is any suggestion from directors adopted by the Company
√ Yes □ No
During the reporting period the directors strictly complied with the relevant laws regulations and the
Articles of Association performed their duties conscientiously paid close attention to the Company's operation
regularly reviewed the Company's announcements got access to the information of operation and development
periodically deeply discussed the opportunities and challenges in the operation and development and timely
prompted risks. Directors put forward reasonable opinions and suggestions from their professional perspectives
which enhanced the scientific decision-making of the board of directors. Meanwhile directors provided
independent and fair opinions on related transactions profit distribution stock buyback guarantee and Articles of
Association during the reporting period. In order to improve the supervision mechanism of the Company and
safeguard the legal rights of all shareholders the Company shall adopt the opinions of directors.VII.Performance of duties by special committees under the board during the reporting period
Important Other Details of
Number of Date of Meeting
Committee Member opinions and performance objections (if
meetings meetings content
suggestions of duties any)
1. Review of
the
"Company's
Independent 2023 Annual
director Pan Report and
Yalan; Summary"
Independent 2. Review of
the
director Shi "Company's
Jianhui; 2023 Annual
Director Ren Internal
Jintu (Has Control Self-
been serving Assessment
Audit as April 18 Report"4
Committee Independent 2024 3. Review of
Director Bao the "Special
Ensi Report on the
Independent Annual
Director Shi Deposit and
Jianhui and Usage of
Independent Raised
Director Pan Funds"
Yalan since 4. Review of
December the "Proposal
12 2024) on the
Reappointme
nt of the
2024 Annual
63Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Audit Firm"
5. Review of
the
"Company's
First Quarter
2024 Report"
6. Review of
the "Audit
Committee's
Report on the
Performance
of
Supervision
Duties over
the 2023
Annual Audit
Accountants"
1. Review of
the
"Company's
2024 Interim
Report and
Summary"
2. Review of
the "Special
Report on the
2024 Interim
August 23 Deposit and
2024 Usage of
Raised
Funds"
3. Review of
the "Proposal
on the
Extension of
Partial
Raised Funds
Investment
Projects"
Review of
the "2024
October 24
Third
2024
Quarter
Report"
1. Review of
the "Proposal
on the
Appointment
of the Audit
December 9 Firm for H-
2024 share
Issuance and
Listing"
2. Review of
the "Audit
Committee
64Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Membership
Composition
" under the
"Proposal on
Adjustments
to the
Membership
of the
Company's
Specialized
Committees"
3. Review of
the "Board
Audit
Committee
Working
Procedures"
under the
"Proposal on
the
Amendment
to the
Company's
Internal
Governance
Systems"
1. Review of
the
"Company's
2023 Annual
Report and
Chairman of Summary"
the Board 2. Review of
the "Proposal
Zhang Yabo; on the
Director Renaming of
Wang the Strategy
Dayong; Committee
Director Ni April 18 and
Strategic Xiaoming; 2024 Amendments
Management to Its
Director 2
and ESG Working
Committee Chen Procedures"
Yuzhong; 3. Review of
Director the
Zhang "Company's
Shaobo; 2023 Annual
Independent Environment
al Social and
director Shi Governance
Jianhui; (ESG)
Report"
1. Review of
October 24 the "Proposal
2024 on the
Termination
65Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
of the
Overseas
Issuance of
Global
Depositary
Receipts
(GDRs)"
2. Review of
the "Proposal
on the
Approval for
the Company
to Conduct
Research and
Feasibility
Study on the
Overseas
Issuance of
Securities
(H-shares)
and Listing"
1. Review of
the "Zhejiang
Sanhua
Intelligent
Controls Co.Ltd. 2024
Restricted
Stock
Incentive
Plan (Draft)
and Its
Summary"
2. Review of
Independent the "Zhejiang
Sanhua
director Shi
Intelligent
Remuneratio Jianhui; Controls Co.n and Independent April 14
4 Ltd. 2024
Assessment director Bao 2024 Stock
Committee Ensi; Appreciation
Director Ren Rights
(SARs)
Jintu
Incentive
Plan (Draft)
and Its
Summary"
3. Review of
the "Zhejiang
Sanhua
Intelligent
Controls Co.Ltd. 2024
Equity
Incentive
Plan
Implementati
66Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
on
Assessment
and
Administrati
on Measures"
4. Review of
the "Proposal
on the
Authorizatio
n of the
Shareholders'
General
Meeting to
the Board of
Directors for
Handling
Matters
Related to
the 2024
Equity
Incentive
Plan"
1. Review of
the "Proposal
on the Grant
of Restricted
Stock to
Participants
under the
Company's
2024
Restricted
Stock
Incentive
Plan"
May 7 2024
2. Review of
the "Proposal
on the Grant
of Stock
Appreciation
Rights
(SARs) to
Participants
under the
Company's
2024 SARs
Incentive
Plan"
1. Review of
the "Proposal
on the Grant
May 28 of Restricted
2024 Stock to
Deferred
Participants
under the
Company's
67Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2024
Restricted
Stock
Incentive
Plan"
2. Review of
the "Proposal
on
Adjustments
to the List of
Participants
Grant
Quantity and
Grant Price
under the
2024
Restricted
Stock
Incentive
Plan"
3. Review of
the "Proposal
on
Adjustments
to the List of
Participants
Grant
Quantity and
Exercise
Price under
the 2024
SARs
Incentive
Plan"
4. Review of
the "Proposal
on
Adjustments
to the
Repurchase
Price under
the 2022
Restricted
Stock
Incentive
Plan"
5. Review of
the "Proposal
on the
Fulfillment
of Release
Conditions
for the
Second
Release
Period under
the 2022
68Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Restricted
Stock
Incentive
Plan"
6. Review of
the "Proposal
on the
Repurchase
and
Cancellation
of a Portion
of Restricted
Stock"
7. Review of
the "Proposal
on
Adjustments
to the
Exercise
Price under
the 2022
SARs
Incentive
Plan"
8. Review of
the "Proposal
on the
Fulfillment
of Exercise
Conditions
for the
Second
Exercise
Period under
the 2022
SARs
Incentive
Plan"
9. Review of
the "Proposal
on the
Cancellation
of a Portion
of SARs"
1. Review of
the
"Compensati
on and
Evaluation
December 9 Committee
2024 Membership
Composition
" under the
"Proposal on
Adjustments
to the
Membership
69Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
of the
Company's
Specialized
Committees"
2. Review of
the "Board
Compensatio
n and
Evaluation
Committee
Working
Procedures"
under the
"Proposal on
the
Amendment
to the
Company's
Internal
Governance
Systems"
VIII. Performance of duties by the Supervisory Committee
Whether there is any risk to the Company identified by Supervisory Committee when performing its duties during
the Reporting Period
□ Yes √ No
The Board of Supervisors raised no objections to the supervised matters during the reporting period.IX. Staff in the Company
1. Statistics of employees professional structure of the staff and educational background
Number of incumbent employees in the parent company 3523
Number of incumbent employees in major subsidiaries 16264
Number of incumbent employees 19787
Number of employees receiving salaries in current period 19787
Number of retired employees requiring the parent Company
0
and its subsidiaries to bear costs
Professional structure
Professional Category Number of employees
Production staff 12961
Sales staff 701
70Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Technical staff 3578
Financial staff 464
Administrative Staff 2083
Total 19787
Educational background
Educational background Number of employees
Master and above 1365
Bachelor 5176
College 5369
Others 7877
Total 19787
2. Staff remuneration policy
The company has established a compensation and incentive system that is highly aligned with its business
development strategy and human resources strategy. Based on market salary levels and job value evaluation
systems combined with employee capabilities and performance results the company has built a comprehensive
compensation structure comprising base salaries bonuses and long-term incentives supported by relevant
management policies. This system effectively motivates employees to continuously create value through scientific
performance evaluation and reward mechanisms providing internal momentum for the company’s high-quality
development.The company implements annual evaluations for new graduates and professional talent classification
creating positive incentives for employees at all levels. Regular salary reviews and market comparison ensure
competitive compensation packages. Additionally annual awards such as the R&D Project Achievement Award
Quality Project Achievement Award Management Project Award Patent Award Cost Reduction Procurement
Award and Lean Improvement Award are granted to encourage innovation and value creation. To retain core
talent the company launched its first equity incentive plan in 2018 followed by a second restricted equity
incentive plan in 2020 a third equity incentive plan in 2022 and a fourth equity incentive plan in 2024 laying a
solid talent foundation for sustainable growth.
3. Staff training plans
Aligned with its 2021-2025 development plan the company adheres to a talent strategy of "prioritizing
internal cultivation while moderately supplementing external recruitment" institutionalizing the TDR (Talent
Development Review) process as a long-term mechanism to actualize the "Talent Blossom" initiative. This
mechanism facilitates systematic alignment across strategy operations organizational structure and workforce
capabilities. Through layered talent evaluations the company identifies high-potential individuals harmonizes
management terminology and formulates retention and development plans for critical talent thereby ensuring that
71Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
human capital evolution fulfills strategic demands.Integrated with the TDR framework a corporate talent cultivation system has been established comprising
three pillars: Leadership Development Track ("Navigation Series Program"): Strategically elevates the holistic
management competencies of incumbent executives and high-potential successors. Professional Competency
Tracks: Constructs specialized talent echelons in functional domains such as finance HRBP(Human Resources
Business Partner) and IT through targeted programs. Early-Career Training Initiatives: Implements management
trainee and campus graduate development schemes to reserve exceptional talents for future leadership roles.Concurrently the company reinforces foundational infrastructure by iteratively integrating advanced learning
technologies certifying internal instructor cohorts curating proprietary educational resources and constructing an
internal learning platform. Leveraging the "Five-Power Mechanism"—Cultural Alignment (cultural traction)
Intrinsic Drive (growth propulsion) External Catalysis (instructor facilitation) Resource Enablement
(infrastructure support) and Organizational Learning Capacity (learning-oriented culture)— the company fosters
enterprise-wide autonomous learning and talent transformation advancing the realization of global
competitiveness for both the organization and its human capital.
4. Labor outsourcing
□ Applicable √ Not applicable
X. Profit distribution of ordinary shares and capitalization of capital reserves
Profit distribution policy in the reporting period especially the formulation implementation and adjustment of
cash dividend policy
□ Applicable √ Not applicable
During the reporting period the Company was profitable and the parent company had a positive profit available
for shareholder distribution but no cash dividend distribution plan was proposed.□ Applicable √ Not applicable
Profit distribution and conversion of capital reserve to share capital during this reporting period
√ Applicable □Not applicable
Bonus share issued per 10 shares (share) 0
Cash dividend per 10 shares (RMB) (tax
inclusive) 2.5
Total capital share basis for the distribution
proposal (share) 3730997314
Total cash dividend (RMB) (tax inclusive) 932749328.50
Cash dividend amount in other ways (such as
share repurchase) (RMB) 0.00
Total cash dividends (including other ways)
(RMB) 932749328.50
72Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Distributable profits (RMB) 1836924867.90
Percentage of cash dividends in the total
distributed profit (%) 100%
Cash dividends
For the growth stage of the Company with significant capital expenditure arrangements the cash dividend payout ratio shall
account for no less than 20% of the total profit distribution.Detailed description of profit distribution or capital reserves conversion plan
The Company proposes to distribute the cash dividend of RMB 2.50 per 10 shares (tax-inclusive) to all shareholders based on
the current share capital of 3730997314 shares [Note] with no bonus shares issued and no capitalization of capital surplus.[Note] As of the record date the Company's total share capital is 3732389535 shares including 1392221 repurchased
shares held in the dedicated repurchase account. Pursuant to the Company Law repurchased shares retained in the Company's
treasury stock account are not eligible for profit distribution or capital surplus capitalization.In the event of changes in the Company's total share capital prior to the implementation of the distribution plan due to share
repurchases exercises of equity incentive schemes H-share offerings and listings or other similar events the total distribution
amount shall be proportionally adjusted in accordance with the principle of maintaining fixed distribution ratios.XI. The Implementation of an Equity Incentive Plan Employee Stock Ownership Plan or Other
Incentive Plans
√ Applicable □ Not applicable
1. Equity Incentive Plan
1. In 2022 the Company launched the 2022 restricted stock incentive plan granting 17.58 million restricted
shares to 1366 incentive objects granting 485000 appreciation rights shares to 41 incentive objects. The grant
date of this equity incentive plan was May 31 2022. The grant price of restricted shares was RMB 10 per share
and the listing date was June 30 2022.
(1) On June 3 2024 the Company held the 23rd interim meeting of the 7th Board of Directors and the 20th
interim meeting of the 7th Board of Supervisors respectively in which the following proposals were approved
Proposal on adjusting the repurchase price of the 2022 restricted stock incentive plan Proposal on the
achievement of unlocking conditions of the second vesting period of the 2022 restricted stock incentive plan
Proposal on repurchase and cancellation of some restricted stocks Proposal on adjusting the exercise price of
the 2022 stock appreciation rights incentive plan Proposal on the achievement of exercise conditions of the
second exercise period of the 2022 stock appreciation rights incentive plan Proposal on cancellation of some
stock appreciation rights. The listing date for circulation of the restricted shares was July 1 2024 with 1313
shareholders meeting the unlocking conditions. A total of 5.133 million shares were released representing
0.1375% of the Company's current total share capital. The Company plans to repurchase and cancel 226000
restricted shares held by 33 unqualified incentive objects in the 2022 restricted stock incentive plan at RMB 9.40
per share. Additionally 135000 stock appreciation rights became exercisable by 37 qualified incentive objects
while 8500 stock appreciation rights held by 2 unqualified incentive objects under the 2022 stock appreciation
rights incentive plan will be cancelled.
73Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
(2) On June 20 2024 the second extraordinary general meeting of shareholders in 2024 was held approving
the Proposal on cancellation of some restricted stocks. The Company will repurchase and cancel 226000
restricted shares held by 33 unqualified incentive objects in the 2022 restricted stock incentive plan at RMB 9.40
per share.
2. In 2024 the Company launched the 2024 Restricted Stock Incentive Plan and Stock Appreciation Rights
Incentive Plan granting 24.91 million restricted shares to 1933 incentive objects and 560000 stock appreciation
rights to 47 incentive objects. The grant dates for this equity incentive plan were May 13 2024 and June 3 2024
with the grant price of RMB 11.75 per share. The listing date for the granted restricted shares was June 20 2024.Share incentives for directors and senior executives in the reporting period
√ Applicable □ Not applicable
Unit: share
Exerci
se
Numb
price
Numb er of Marke Price
Numb Numb of Numb Restri Share
er of newly t price for
er of er of exerci er of cted Share s Restri
stock grante at the restric
exerci exerci sed stock Share s newly cted
option d end of ted
sable sed shares option s held vested grante Share
s held stock the shares
Name Title shares shares during s held at the in the d in s held
at the option report grante
in the in the the at the begin curren the at
begin s in period d
report report report end of ning t curren period
ning the (yuan (RMB
ing ing ing the of the period t -end
of the report / per
period period period period period period
year ing share) share)
(yuan
period
/
share)
Direct
Wang
5600240010001320
Dayo 23.51 11.75
Presid 0 0 00 00
ng
ent
Ni
4900210080001080
Xiao Direct 23.51 11.75
00000
ming
Direct
Chen
chief 5600 2400 8000 1120
Yuzh 23.51 11.75
engin 0 0 0 00
ong
eer
Vice
presid
ent
Secret
Hu
ary of 5600 2400 8000 1120
Kaich 23.51 11.75
the 0 0 0 00
eng
board
of
direct
ors
Yu Vice
5600240080001120
Yingk presid 23.51 11.75
00000
ui ent
74Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
CFO
2730117042005760
Total -- 0 0 0 0 -- 0 -- --
00000000
1. At the beginning of each year the number of locked shares should be re-calculated
according to 75% of the total number of shares held by the senior management. The number of
unlocked shares in this period is 25% of the total number of shares at the beginning of the year.Note (if any) 2. June 5 2024 the second vesting period of the 2022 Restricted stock incentive plan maturedand the restricted shares of director Wang Dayong Chen Yuzhong senior management Hu
Kaicheng and Yu Yingkui have been unlocked by 24000 shares each; restricted shares of
director Ni Xiaoming have been unlocked by 21000 shares totaling 117000 shares.Assessment and incentive mechanism for the senior management
In order to encourage senior managers better perform their duties and clarify their rights and obligations the
Company has established a fairly sophisticated performance evaluation standard and remuneration system
according to which senior managers’ performance and annual business indicators would be assessed.The senior managers of the Company are responsible to the board of directors and undertake the business
objectives issued by the board. The remuneration and assessment committee of the board formulate the
remuneration plan based on evaluation of senior managers’ ability performance and completion of business
targets.
2. Employee Stock Ownership Plan
□ Applicable √ Not applicable
3. Other incentive plan
□ Applicable √ Not applicable
XII.Construction and implementation of internal control
1. Construction and implementation of internal control
In accordance with the requirements of the Company Law and other relevant regulations and normative
documents the Company has set up an internal control system in combination with its own business
characteristics which is composed of the general meeting the board of directors the board of supervisors the
management each controlling subsidiary and its functional departments. Thus it formed a relatively effective
division of responsibilities and balances.The Company continues to strengthen the control of high-risk areas such as sales business procurement
business major investments acquisition and merger asset security and information system management and has
established corresponding control policies and procedures.During the reporting period the Company timely organized directors supervisors and senior managers to
participate in relevant training organized by regulatory authorities which improves the management's awareness
75Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
of standardized operation ensures the effective implementation of internal control system effectively improves
the standard operation level and promotes the healthy and sustainable development of the Company.The Company's internal audit department shall regularly inspect and supervise the establishment and
implementation of this internal control system as well as the authenticity and completeness of its financial
information. During the reporting period the Company established effective internal control over the businesses
included in the evaluation scope. It has achieved its internal control target in terms of the authenticity of operating
results business compliance and the effectiveness of internal control.
2. Any significant internal control deficiencies during the reporting period
□ Yes √ No
XIII. Management and control of subsidiaries during the reporting period
Challenges
Company Integration Identified Implemented Remediation Follow-up
Integration Plan
Name Progress During Solutions Progress Action Plan
Integration
In terms of
assets conduct
comprehensive
inventory
audits optimize
allocation and
implement
unified
management; in
terms of
personnel
assess and
retain talent; in
terms of
finance
Hangzhou The transfer
integrate into a
Lvneng New agreement was
unified
Energy Vehicle completed in / / / /
management
Components September
system; in
Co. Ltd. 2024.terms of
organization
optimize
organizational
structure and
clarify
departmental
responsibilities;
in terms of
business plan
business
collaboration to
enhance overall
efficiency and
competitiveness
76Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
XIV. Self-evaluation report on internal control or Internal control audit report
1. Self-evaluation report on internal control
Disclosure date of the internal control
March 27 2025
self-evaluation report
Disclosure index of full text of self- Self-evaluation Report on Internal Control of the Company in 2024
evaluation report on internal control http://www.cninfo.com.cn
Proportion of assets evaluated in total
100.00%
assets
Proportion of revenue evaluated in total
revenue per consolidated financial 100.00%
statement
Recognition standard of deficiencies
Nature Financial report level Non-financial report level
Significant deficiency:
1. Fraud of directors supervisors and
senior managers; 2. Major misstatement
in the current financial report found by
the CPA but not identified by the internal
control of the Company; 3. The
Company has major violations of laws
and regulations in financial accounting
asset management capital operation
information disclosure product quality Significant deficiency:
safety production environmental The possibility of defects is high which
protection and other aspects causing will significantly reduce the work
major losses and adverse effects to the efficiency or effect or significantly
Company or subject to major increase the uncertainty of the effect or
administrative supervision and make it significantly deviate from the
punishment; 4. Supervision of the audit expected goal.committee and internal control
department is ineffective on the Important defects：
Company's external financial report and Defects are more likely to occur which
Qualitative criteria internal control. will seriously reduce the work efficiency
or effect or seriously increase the
Important deficiency: uncertainty of the effect or make it
(1). Failure to select and apply seriously deviate from the expected goal.
accounting policies in accordance with
GAAP； (2). Failure to establish anti- General defects：
fraud procedures and control measures; The probability of defects is small which
(3). It cannot reasonably guarantee the will reduce the efficiency or effect
truthfulness and completeness of the increase the uncertainty of the effect or
financial statements due to one or more
defects in control process; (4). There is make it deviate from the expected goal.no corresponding control mechanism or
no compensatory control for the
accounting treatment of non-routine or
special transactions.General deficiency:
General defects other than the above-
mentioned.
77Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
The quantitative standard is based on the The quantitative standard is based on the
percentage of potential misstatements of percentage of potential misstatements of
pre-tax profit. pre-tax profit.Significant deficiency: Significant deficiency:
This defect alone or together with other This defect alone or together with other
defects may cause the misstatement of defects may cause the misstatement of
financial report to exceed 10% of the financial report to exceed 10% of the
profit before tax. profit before tax.Quantitative criteria Important defects: Important defects:
This defect alone or together with other This defect alone or together with other
defects may cause the misstatement of defects may cause the misstatement of
financial report to exceed 5% but less financial report to exceed 5% but less
than 10% of the profit before tax. than 10% of the profit before tax.General defects: General defects:
This defect alone or together with other This defect alone or together with other
defects may cause the misstatement of defects may cause the misstatement of
financial report less than 5% of the profit financial report less than 5% of the profit
before tax. before tax.Number of significant deficiencies in
0
financial report level
Number of significant deficiencies in
0
non-financial report level
Number of important deficiencies in
0
financial report level
Number of important deficiencies in non-
0
financial report level
2. Audit report or assurance report on internal control
√ Applicable □ Not applicable
Deliberation Opinion Paragraph in Internal Control Audit Report
We believe that the Company maintained effective internal control over financial reporting in all material aspects as of December
31 2024 in accordance with the Basic Standard for Enterprise Internal Control and other related regulations.
Disclosure of internal control audit report Disclose
Disclosure date of the full text of the auditor’s report on
March 27 2025
internal control
2024 Internal Control Audit Report
Disclosure index of full text of internal control audit report
(ww.cninfo.com.cn)
Internal control audit opinion Standard unqualified audit opinion
Whether there is material weakness of non-financial report No
Whether the accounting firm issued an internal control audit report with a non-standard opinion
□Yes √No
Whether the internal control audit report issued by the accounting firm is consistent with the self-evaluation report
of the board of directors
78Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
√Yes □No
XV.Governance problem rectification of the Company
According to self-examination the Company has no material violations affecting the level of corporate
governance. The Company has established a relatively complete and reasonable corporate governance structure
and internal control system in accordance with the Company Law Securities Law Corporate Governance Code
for Listed Companies and other relevant laws and regulations. However with the continuous development of the
Company's business scale and the changes in external macroeconomic and market environment the Company
needs to further improve its internal control system continue to strengthen its own construction effectively
improve the Company's standardized operation level and the effectiveness of corporate governance. The Company
will continuously improve the governance quality by enhancing the abilities of scientific decision-making
ensuring stable operation and promoting standardized development.
79Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Section V Environmental and Social Responsibility
I. Material environmental issues
Whether the Company or the Company’s subsidiaries are critical pollutant enterprises disclosed by National
Environmental Protection Department
√Yes □No
Environmental protection related policies and industry standards
During the reporting period the Company strictly adhered to national environmental protection related laws
and regulations in its daily production and operation such as the Environmental Protection Law the Air Pollution
Prevention and Control Law the Water Pollution Prevention and Control Law the Solid Waste Pollution
Environmental Prevention and Control Law the Environmental Noise Pollution Prevention and Control Law the
Soil Pollution Prevention and Control Law the Environmental Impact Assessment Law etc. The Company strictly
implements national environmental protection related industry standards such as the Electroplating Pollutant
Discharge Standard (GB2190-2008) Comprehensive Air Pollutant Discharge Standard (GB16297-1996)
Comprehensive Wastewater Discharge Standard (GB8978-1996) Emission Standard for Air Pollutants from
Boilers (GB13271-2014) Emission Standard for Pollutants in the Synthetic Resin Industry (GB31572-2015)
Unorganized Emission Control Standard for volatile organic compounds (GB37822-2019) the Electroplating
Water Pollutant Discharge Standard (DB33/2260-2020) in Zhejiang Province and Indirect Emission Limits of
Nitrogen and Phosphorus Pollutants in Industrial Enterprise Wastewater (DB33/887-2013) and Emission
Standard for Environmental Noise at the Boundary of Industrial Enterprises (GB 12348-2008).Administrative permits for environmental protection
Since 2010 the Company has invested in the construction of Meizhu Sanhua Industrial Estate in Xinchang
County and has obtained 25 EIA permits. All the projects have passed. In October 2023 the Company completed
the reapplication of the national version of the pollution discharge permit.Industry emission standards and specific situations of pollutant emissions involved in production and business
activities
Main Name of
pollutant main
Name of
s and pollutant Distribut Emissio Emissio
Compan Number Total Approve Over
types of s and Emissio ion of n n
y or of emission d total standard
character character n mode emission concentr standard
subsidiar outlets s emission emission
istic istic outlets ation s
y
pollutant pollutant
s s
The
limitatio
Zhejiang
n of
Sanhua Not
COD in
Intellige Waste Sewer 62.386 T exceedin
COD 1 North ≦ GB8978 47.33T
nt water system 500mg/L /year g the
-1996
Controls standard
Integrate
Co. Ltd.d
Wastewa
80Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
ter
Emissio
n
Standar
d is
500mg /
L
The
limitatio
n listed
in
DB33/8
Indirect
Emissio
Zhejiang
n Limits
Sanhua Not
Ammoni of
Intellige Waste Sewer ≦ 6.262 T exceedin
a 1 North Nitrogen 4.73T
nt water system 35mg/L /year g the
Nitrogen and
Controls standard
Phospho
Co. Ltd
rus
Pollutan
ts from
Industri
al
Wastewa
ter is
35mg / L
The
limitatio
n listed
in
GB1327
Zhejiang 1-2014
Sanhua Emissio Not
≦
Intellige Waste Direct n 0.042T 2.15 T exceedin
SO2 1 North 50mg/mnt gas emission Standard /year g the
3
Controls of Air standard
Co. Ltd Pollutant
s for
Boilers
is
50mg/m
3
Accordi
ng to the
low
Nitrogen
Zhejiang emission
Sanhua requirem Not
≦
Intellige Waste Nitrogen Direct ents of 0.909T 10.06 T exceedin
1 North 50mg/m
nt gas Oxide emission local /year g the
3
Controls governm standard
Co. Ltd ent the
limit
value of
gas-fired
boiler is
81Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
50mg /
m3
Treatment of pollutants
Adhering to the advanced management concept the Company takes "developing energy-saving and low-
carbon economy creating a green quality environment" as its own responsibility constantly surpasses and
becomes an important creator and contributor of human green quality living environment with limited resources
and unlimited wisdom.
1. In terms of waste water treatment the Company responded to the construction of "five water treatment"
"eliminating inferior V-type water" and "zero direct discharge of sewage" in the whole province. The
Company renovated the rainwater and sewage outlets in the factory area implemented the separation of
rainwater and sewage and installed cut-off valves and video monitoring equipment at the Company's
rainwater discharge outlets and collected and treated the early rainwater. There are two wastewater treatment
stations in the factory. The sewage treatment stations have been equipped with standardized sewage outlets
and set up discharge outlet signs. Online monitoring device solenoid valve flowmeter and card swiping
sewage system are installed at the discharge outlet which has been connected with the environmental
protection department. The monitoring indicators include PH COD total Copper total Zinc total Chromium
total Nickel and flow. Wastewater treatment: The Company has entrusted a third-party professional treatment
unit for treatment. The discharge indicators of the Company's internal control wastewater are stricter than the
environmental discharge standard. The final treated wastewater is discharged into the sewage collection pipe
network of the industrial zone and sent to Shengxin sewage treatment plant for retreatment.
2. Waste gas treatment: The Company has acid pickling electroplating waste gas welding dust and other waste
gas. All kinds of waste gas discharge cylinders are equipped with corresponding waste gas treatment devices.The acid pickling and electroplating waste gas absorption and treatment tower is installed with automatic
dosing system and the waste gas is discharged to air after treatment. At the same time in order to win the
blue-sky defense activity the Company carried out low Nitrogen emission transformation of the Company's
gas boilers in accordance with the requirements of relevant official departments in 2019. In 2021 the
transformation and upgrading of VOCs treatment facilities in industrial enterprises have been implemented.At the same time the process has been improved and the water cleaning is used to replace the organic
solvent cleaning so as to reduce the generation of VOCs. In 2022 the Company carried out an upgrade and
transformation of diesel-powered mobile source emissions upgrading from the original National II emission
standard to National IV greatly reducing particulate matter emissions. In 2023 the Company passed the B-
level acceptance check of air pollution prevention and control performance for key industry enterprises in
Zhejiang Province.
3. Solid waste and soil treatment (groundwater): all kinds of hazardous waste of the Company are entrusted to
the third qualified party for disposal the general solid waste with utilization value is recycled the domestic
waste is cleared and transported by the environmental sanitation station and the construction waste is
cleaned and transported by the construction unit. In July 2020 the Company became one of the first "waste
free factories" in Shaoxing. The Company commissioned a third-party testing agency to conduct soil and
groundwater testing in 2022 and no contamination was found. In 2023 the Company is no longer listed as a
key regulatory unit for soil pollution. Zhejiang Sanhua Commercial Refrigeration Co. Ltd passed the "Zero
Waste Factory" examination in Shaoxing City in 2023
4. Noise control: The Company's existing main noise is workshop production noise air compressor room waste
gas and waste water treatment equipment noise. Equipment layout is reasonable and trees are planted around
the workshop. Noise at factory meets the standard.
82Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
5. The "three wastes" pollution control facilities of the Company are in normal and stable operation. The
pollutants are discharged based on the standard and there is no environmental pollution event.Emergency Response Plan
The Company re-prepared the Environmental Emergency Response Plan in August 2023 and filed with
Xinchang Environmental Protection Bureau on August 30 2023 (Record No. 330624-2023-40-M).Environmental self-monitoring program
The Company formulated Self-monitoring Scheme of Zhejiang Sanhua Intelligent Control Co. Ltd.according to the requirements of the superior environmental protection department combined with the actual
production situation and the actual needs of environmental management of the Company. The sewage station of
the Company is equipped with a laboratory and the detection is conducted by a specially assigned person. On
online automatic monitoring equipment such as pH COD TOC total copper total zinc total chromium total
nickel and flow rate is installed at the Company's total wastewater discharge outlet so as to achieve the
combination of automatic monitoring and manual testing. For the target pollutants such as suspended matters
total phosphorus ammonia nitrogen total iron and petroleum hydrocarbons the Company entrusts a third-party
testing agency to carry out regular monitoring. The monitoring results are published regularly on Zhejiang
Provincial Key Pollution Source Monitoring Data Management System.Investment in environmental governance protection and payment of environmental protection taxes
During the reporting period the Company's environmental governance investment and payment of
environmental protection tax amounted to 34.2376 million yuan.Measures and effects in reducing carbon emissions during the reporting period
√ Applicable □ Not applicable
There are direct greenhouse gas emissions from the use of natural gas gasoline and diesel fuel as well as
indirect greenhouse gas emissions from purchased electricity in the Company's production and operations. In this
regard the Company is committed to energy saving and emission reduction practices as well as continues to
innovate green product technologies to ensure effective use of resources and improve operational efficiency. As of
the end of the reporting period the Company had prepared and issued the Energy Management Measures Gas
and Liquid Management Measures Compressed Air Use Inspection and Reward & Penalty Management
Regulations Trial Management Measures for Compressed Air Cost Reduction Water Conservation System and
other management systems relating to resource conservation. By regularly checking usage we aim to minimize
the consumption of water electricity fuel and other resources and actively assist society in energy conservation
and emission reduction while optimizing our own energy resource costs. At the same time the Company has
always adhered to the business philosophy of energy saving and environmental protection constantly innovating
products and technologies and is committed to promoting the green and low-carbon development of the industry.
1. Low-Carbon Design and R&D: Integration of ecological principles into product development design and
manufacturing processes aligned with sustainable development strategies. Comprehensive lifecycle assessments
are systematically implemented to quantify environmental impacts across all stages from raw material
procurement to product retirement.
2. Energy Portfolio Optimization: Renewable energy adoption through large-scale deployment of distributed
photovoltaic systems replacing grid-supplied electricity coupled with diversified green power procurement
channels. Waste heat recovery initiatives (e.g. compressed air system retrofits) and energy-saving technological
83Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
upgrades achieve measurable reductions in energy consumption while enhancing utilization efficiency. Production
facilities employ energy storage technologies to maximize photovoltaic utilization rates implement peak-valley
load management and optimize energy allocation mechanisms.
3. Accurate control of energy efficiency: The Company continues to promote the application of smart energy IOT
platform and effectively controls the use efficiency of all energy within the scope through real-time display of
digital information traceability technical transformation and energy conservation and consumption reduction
analysis.
4. Promote green technology: The Company reduces energy consumption and improves energy efficiency through
the improvement of manufacturing and technological process. Reduce energy consumption and carbon emission
by troubleshooting of air leakage point of compressed air pipeline of equipment upgrading and transformation of
air compressor emission reduction of triple supply and nitrogen recycling.
5. Strengthen green cooperation: In order to reduce the energy consumption required for liquefaction during the
transportation of oxygen and nitrogen and reduce the impact on climate the company has replaced the method of
purchasing liquid oxygen and nitrogen with self-made oxygen and nitrogen.
6. Complete green products: In order to significantly reduce carbon emissions during the use of terminal products
and promote green and low-carbon development in the industry the Company has developed a series of low-
carbon key core components such as electronic expansion valves inverter controllers and microchannel products.
7. Sustainable Packaging: Implementation of optimized packaging workflows leveraging eco-friendly materials
and product recovery programs complemented by scientifically designed logistics networks to minimize
environmental footprint while advancing resource conservation and circular utilization.
8. Green Manufacturing Facilities: The company is accelerating digital and intelligent transformation establishing
green industrial ecosystems and integrating traditional manufacturing with sustainable practices. Facilities are
engineered to achieve high-tech precision superior quality and intelligent operations. Zhejiang Sanhua Intelligent
Controls Co. Ltd. has been awarded the National Green Factory designation by Chinese authorities certifying
compliance with state-level low-carbon manufacturing standards.
9. Production layout: Sanhua adheres to the concept of "wherever customers are Sanhua is there" By setting up
factories nearby we not only serve customers but also reduce carbon emissions in transportation. We have
established production bases in Mexico Poland Vietnam Thailand India Hangzhou Wuhu Shaoxing Xinchang
and other areas.At the same time as the world's largest refrigeration control component manufacturer and a leading global
manufacturer of thermal management system control components for new energy vehicles the Company fully
grasps the business opportunities brought by the global intelligent energy-saving and environmentally friendly
home appliances and development of the global new energy vehicle industry actively explores green and efficient
refrigeration technology and continues to bring professional and green product solutions to the industry.Administrative penalties due to environmental issues during the reporting period
84Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Not applicable
Other environmental information that should be disclosed
Not applicable
Other environmental information
Not applicable
II. Social responsibility
Please refer to the 2024 Environmental Social and Governance (ESG) Report on CNINFO
(http://www.cninfo.com.cn) for details.III. Achievements of poverty alleviation and rural revitalization
Not applicable
85Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Section VI Significant Events
I. Performance of commitments
1. Complete and incomplete commitments of the Company and its actual controller shareholders related
parties acquirers and other related parties for the commitments by the end of the reporting period.√ Applicable □ Not applicable
Date of Term of
Commitment Perform
Commitments Nature Details of commitments commitment commitme
party ance
s nts
When the number of shares
sold through listing and trading
Zhang Yabo
in Shenzhen Stock Exchange
Commitment controlling Until the
reaches 1% of the total number Strict
from shareholder Other November commitme
commitment of shares of the Company it performreformation of Sanhua 21 2005 nt is
shall make an announcement ance
shareholding Holding Group fulfilled
within two working days from
Co. Ltd.the date of the occurrence of
the fact.Zhang Daocai and Sanhua
Commitment
Zhang Daocai holding group the controlling
on horizontal
controlling shareholder of the Company
competition Strict
shareholder promise that there will not be January 5
related party Long term perform
Sanhua any competition with Sanhua 2009
transactions ance
Holding Group intelligent controls in the
and capital
Co. Ltd. business scope being or already
occupation
carried out in the future.Sanhua Holding Group
promises: after the completion
of this transaction Sanhua
Holding Group and Sanhua
intelligent controls will sign an
agreement according to law
perform legal procedures fulfill
Commitments the obligation of information
from assets disclosure and handle
reorganization Commitment significant matters for approval
Zhang Daocai
on horizontal in accordance with relevant
controlling
competition laws regulations and articles Strict
shareholder January 5
related party of association of Sanhua Long term perform
Sanhua 2009
transactions intelligent controls. In the ance
Holding Group
and capital process of implementation of
Co. Ltd.occupation related party transactions we
will follow the principle of
legality and reasonableness
ensure the fairness of prices and
procedures and make certain
that the legitimate interests of
Sanhua intelligent controls and
other shareholders will not be
damaged through related party
transactions.
86Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
In order to avoid horizontal
competition with Sanhua
intelligent controls Zhang
Daocai Zhang Yabo Zhang
Shaobo Sanhua Holding Group
the controlling shareholder of
the Company and Sanhua
Lvneng Industry the trading
partner made the following
commitments:
1. I (or the Company) will not
directly or indirectly engage in
or participate in the business
that constitutes potential direct
or indirect competition with
Sanhua Intelligent Controls and
its subordinate enterprises;
guarantee that legal and
effective measures shall be
taken to urge other enterprises
controlled by me (or the
Company) not to engage in or
participate in any business
competing with Sanhua
Intelligent Controls and its
subordinate enterprises.
2. If Sanhua Intelligent
Zhang Daocai Controls further expands its
Zhang Yabo business scope I (or the
Zhang Shaobo
Commitment Company) and other controlled
controlling enterprises will not compete
on horizontal
shareholder with Sanhua Intelligent
competition Strict
Sanhua Controls' expanded business; if
related party it is possible to compete with
July 24
Long term perform
Holding Group
transactions Sanhua Intelligent Controls'
2015
ance
Co. Ltd.and capital business after expansion I (or
Zhejiang
occupation the Company) and other
Sanhua Lvneng controlled enterprises will
Industrial withdraw from Sanhua
Group Co. Ltd. Intelligent Controls in the
following ways of competition:
A. Stop the businesses that
compete or may compete with
Sanhua Intelligent Controls; B.Inject the competitive business
into Sanhua Intelligent
Controls; C. Transfer the
competitive business to an
unrelated third party.
3. If I (or the Company) and
other enterprises controlled by
me (or the Company) have any
business opportunities to
engage in and participate in any
activities that may compete
with Sanhua Intelligent
Controls' business operation
they shall immediately inform
Sanhua Intelligent Controls of
the above business
opportunities. If Sanhua
Intelligent Controls makes an
affirmative reply to take
advantage of the business
opportunity within a reasonable
period specified in the notice it
shall do its best to give the
87Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
business opportunity to Sanhua
Intelligent Controls.
4. In case of breach of the
above commitment I (or the
Company) is willing to bear all
responsibilities arising
therefrom and fully compensate
all direct or indirect losses
caused to Sanhua Intelligent
Controls.In order to standardize the
related party transactions with
Sanhua Intelligent Controls
Zhang Daocai Zhang Yabo
Zhang Shaobo Sanhua Holding
Group the controlling
shareholder of the Company
and Sanhua Lvneng Industrial
the trading partner made the
following commitments:
1. I (or the Company) and the
controlled enterprises will
reduce the related party
transactions with Sanhua
intelligent controls as far as
possible and will not use their
own status as shareholders of
Sanhua intelligent controls to
seek for superior rights in terms
of business cooperation and
other aspects compared with
Zhang Daocai other third parties;
Zhang Yabo 2. I (or the Company) will not
Zhang Shaobo take advantage of the right to
Commitment
controlling enter into a transaction with
on horizontal Sanhua intellectual controls
shareholder
competition using the position as a Strict
Sanhua July 24
related party shareholder. Long term perform
Holding Group
transactions 3. If there are necessary and
2015
ance
Co. Ltd.and capital unavoidable related party
Zhejiang
occupation transactions I (or the
Sanhua Lvneng Company) and the controlled
Industrial enterprises will sign agreements
Group Co. Ltd. with Sanhua intelligent controls
in accordance with the
principles of fairness follow
legal procedures and perform
the information disclosure
obligations in accordance with
the requirements of relevant
laws regulatory documents and
the articles of association. It
shall also perform relevant
internal decision-making and
approval procedures to ensure
that it will not conduct
transactions with Sanhua
intelligent controls on terms
that are obviously unfair
compared with the market
price and will not use such
transactions to engage in any
88Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
behavior that damages the
legitimate rights and interests
of Sanhua intelligent controls
and other shareholders.Zhang Daocai Zhang Yabo
Zhang Shaobo and Sanhua
holding Group the controlling
shareholder of the Company
made the following
commitments: after the
completion of the transaction
Zhang Daocai Sanhua intelligent controls will
Zhang Yabo continue to improve the
Zhang Shaobo corporate governance structure
Strict
controlling Other and independent operation of July 24
Long term perform
shareholder Commitment the Company management 2015
ance
Sanhua system in accordance with the
Holding Group requirements of relevant laws
Co. Ltd. and regulations and the articles
of Association and continue to
maintain the independence of
Sanhua intelligent controls in
business assets finance
institutions personnel etc. to
protect the interests of all
shareholders.
1. I (or the Company) and the
controlled enterprises will
reduce the related party
transactions with Sanhua
intelligent controls as far as
possible and will not use the
position as a shareholder of
Sanhua intellectual controls to
seek the superior rights for
business cooperation with
Sanhua intelligent controls
Zhang Daocai compared with other third
Zhang Yabo parties;2. I (or the Company) will not
Zhang Shaobo
Commitment use my position as a
controlling
on horizontal shareholder of Sanhua
shareholder
competition intellectual controls to seek for
Sanhua the priority right to cooperate
Strict
September
related party Long term perform
Holding Group with Sanhua intellectual 18 2017
transactions ance
Co. Ltd. controls;
and capital
Zhejiang 3. If there are necessary and
occupation
Sanhua Lvneng unavoidable related party
Industrial transactions I (or the
Group Co. Ltd. Company) and the controlled
enterprises will sign agreements
with Sanhua intelligent controls
in accordance with the
principles of fairness follow
legal procedures and perform
the information disclosure
obligations in accordance with
the requirements of relevant
laws regulatory documents and
the articles of association. It
89Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
shall also perform relevant
internal decision-making and
approval procedures to ensure
that it will not conduct
transactions with Sanhua
intelligent controls on terms
that are obviously unfair
compared with the market
price and will not use such
transactions to engage in any
behavior that damages the
legitimate rights and interests
of Sanhua intelligent controls
and other shareholders.
1. I (or the Company) will not
directly or indirectly engage in
or participate in any business
that may constitute potential
direct or indirect competition
with Sanhua intelligent controls
and its subordinate enterprises;
guaranteed that legal and
effective measures will be
taken to urge other enterprises
controlled by me (or the
Company) not to engage in or
participate in any business that
is competitive with Sanhua
intelligent controls and its
subordinate enterprises
Business.
2. If Sanhua intelligent controls
further expands its business
Zhang Daocai scope I (or the Company) and
Zhang Yabo other enterprises controlled by
Zhang Shaobo
Commitment me (or the Company) will not
controlling compete with Sanhua
on horizontal
shareholder intelligent controls' expanded
competition business; if it is possible to StrictSanhua
related party compete with Sanhua
September
Long term perform
Holding Group
transactions intelligent controls' business
182017
ance
Co. Ltd.and capital after expansion I (or the
Zhejiang
occupation Company) and other enterprises
Sanhua Lvneng controlled by me (or the
Industrial Company) will withdraw from
Group Co. Ltd. Sanhua intelligent controls in
the following ways of
competition: A. stop the
businesses that compete or may
compete with Sanhua
intelligent controls; B. inject
the competitive business into
Sanhua intelligent controls; C.transfer the competitive
business to an unrelated third
party.
3. If I (or the Company) and
other enterprises controlled by
me (or the Company) have any
business opportunities to
engage in and participate in any
activities that may compete
with Sanhua intelligent
controls' business operation
they shall immediately inform
90Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Sanhua intelligent controls of
the above business
opportunities. If Sanhua
intelligent controls makes an
affirmative reply to take
advantage of the business
opportunity within a reasonable
period specified in the notice it
shall do its best to give the
business opportunity to Sanhua
intelligent controls.
4. In case of breach of the
above commitment I (or the
Company) is willing to bear all
responsibilities arising
therefrom and fully compensate
all direct or indirect losses
caused to Sanhua intelligent
controls.After the completion of the
transaction the listed Company
Zhang Daocai will continue to improve the
Zhang Yabo corporate governance structure
Zhang Shaobo and independent operation of
controlling the Company management
shareholder system in accordance with the
Strict
Sanhua Other requirements of relevant laws September
Long term perform
Holding Group commitment and regulations and the articles 18 2017
ance
Co. Ltd. of association continue to
Zhejiang maintain the independence of
Sanhua Lvneng the listed Company in business
Industrial assets finance institutions
Group Co. Ltd. personnel and other aspects
and effectively protect the
interests of all shareholders.The commitment made at the
time of IPO it shall not engage
in the same production
operation or business as the
Commitment Company in the future. In order
Zhang Daocai
Commitment on horizontal to avoid business competition
controlling
made during competition with the Company and clarify Strict
shareholder the non-competition
initial public related party obligations Sanhua Holding June 7 2005 Long term performSanhua
offering or transactions
Holding Group Group on behalf of itself and
ance
refinancing and capital
Co. Ltd. its subsidiaries with more than
occupation 50% equity makes a
commitment to Sanhua
intelligent controls to avoid
possible horizontal competition.The controlling
shareholders of
Other the listed
commitments Company Will not actively reduce
Strict
made to Sanhua Other holdings of the Company's August 18 February
perform
minority Holding Group commitment shares within eighteen months 2022 17 2024
ance
shareholders of Co. Ltd. from August 18 2022.the Company Zhejiang
Sanhua Lvneng
Industrial
91Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Group Co.Ltd. and Mr.Zhang Yabo
Are the
commitments
Yes
fulfilled on
time
In the event
that
commitments
remain
unfilfilled
beyond the
prescribed
deadline the
obligated party
shall submit a
detailed Not applicable
explanation of
the specific
causes for
incomplete
performance
and formulate a
comprehensive
roadmap for
subsequent
remedial
actions.
2. If there is a profit forecast for the Company's assets or projects and the reporting period is still in the
profit forecast period the Company shall explain the reasons for the assets or projects reaching the original
profit forecast
□ Applicable √ Not applicable
II. The Company’s funds used by the controlling shareholder or its related parties for non-
operating purposes.□ Applicable √ Not applicable
No such case during the reporting period.III. Illegal external guarantee
□ Applicable √ Not applicable
No illegal external guarantees during the reporting period.IV. Explanation Given by the Board of Directors Regarding the “Non-standard Auditor’sReport” Issued by the CPA Firm for the Reporting Period
□ Applicable √ Not applicable
92Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
V. Explanation Given by the Board of Directors Board of Supervisors and Independent
Directors (if any) Regarding the “Non-standard Auditor’s Report” Issued by the CPA
Firm for the Reporting Period
□ Applicable √ Not applicable
VI. For changes in accounting policies accounting estimates and accounting methods as
compared to the financial report for the prior year
√Applicable □ Not applicable
Changes in Accounting Policies due to Amendments to the Accounting Standards for Business Enterprises
1. Effective January 1 2024 the Company has adopted the provisions of Accounting Standards for Business
Enterprises Interpretation No. 17 issued by the Ministry of Finance regarding the "Classification of Current
Liabilities and Non-current Liabilities" with adjustments made to comparable period information. This
accounting policy change has no impact on the Company's financial statements.
2. Effective January 1 2024 the Company has implemented the disclosure requirements under Accounting
Standards for Business Enterprises Interpretation No. 17 pertaining to "Supplier Financing Arrangements."
3. Effective January 1 2024 the Company has applied the accounting treatment provisions of Accounting
Standards for Business Enterprises Interpretation No. 17 concerning "Sale and Leaseback Transactions." This
accounting policy change has no impact on the Company's financial statements.
4. Effective January 1 2024 the Company has adopted the provisions of Accounting Standards for Business
Enterprises Interpretation No. 18 regarding "Accounting Treatment for Warranty-type Quality Assurance Not
Constituting a Single Performance Obligation" with retrospective adjustments applied to comparable periods.The specific adjustments are as follows:
2023 Impact Amount
Materially Affected Financial Statement Items Consolidated Income Parent Company
Statement Income Statement
2023 Consolidated Income Statement Items
Sales of cost +65738686.79 +7001846.35
Selling Expenses -65738686.79 -7001846.35
VII. Explanation for changes in scope of the consolidated financial statements as compared
to the financial report for the prior year
√ Applicable □ Not applicable
1. Increase in consolidation scope
Equity Actual capital Proportion of
Name acquisition Date of equityacquisition contribution at the end capitalmethod Of the period contribution
Hangzhou Lvneng New Energy Contractual
Automotive Components Co. Ltd. Equity 2024-09-30 RMB 7.7 million 100%
93Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Equity
Name acquisition Date of equity
Actual capital Proportion of
acquisition contribution at the end capitalmethod Of the period contribution
Transfer
Zhejiang Sanhua Intelligent Drive Greenfield
Co. Ltd. Equity 2024-06-04 RMB 74 million 100%Investment
Zhejiang Shengtai Paper Industry Greenfield
Co. Ltd. Equity 2024-06-20 RMB 21 million 70%Investment
Sanhua Automotive Components Greenfield
Korea Co. Ltd. Equity 2024-07-08 90000 KRW 100%Investment
Sanhua International Singapore PTE. Ltd. Greenfield
(Consolidated) Equity 2024-08-28 0.00 100%
Investment
Sanhua Intelligent Drive (Thailand) Greenfield
Co. Ltd. Equity 2024-11-01 0.00 100%Investment
SANHUATROY PROPERTY Greenfield
MANAGEMENTLLC Equity 2024-06-28 0.00 100%Investment
2. Reduction in consolidation scope
Net profit from
Name Equity disposal Date of equity Net assets on the beginning ofmethod disposal disposal date the period to the
date of disposal
American Tubing
International Cancellation 2024-10-09 — —
Leverage lender LLC
VIII. Engagement and disengagement of the CPA firm
CPA firm engaged at present
Name of the domestic CPA firm Pan-China Certified Public Accountants LLP.Remuneration of domestic accounting firms (in 10000 yuan) 318
Consecutive years of the audit service provided by the domestic
CPA firm 24
Name of the certified public accountants from the domestic CPA
firm Qian Zhongxian Ouyang Xiaoyun Zhou Heng
Consecutive years of the audit service provided by the certified Qian Zhongxian has been in service for 1 consecutive year
public accountants from the domestic CPA firm Ouyang Xiaoyun has been in service for 1 consecutive yearZhou Heng has been in service for 1 consecutive year
Whether the CPA firm was changed in the current period
94Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
□ Yes √ No
Engagement of internal control audit CPA firm financial advisor or sponsor
√Applicable □Not applicable
During the reporting period the Company engaged Pan-China Certified Public Accountants LLP. as the
internal control audit accounting firm with an internal control audit fee of RMB 212000.IX. Listing suspension and termination after disclosure of this annual report
□ Applicable √ Not applicable
X. Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such case during the reporting period.XI. Material Litigation and Arbitration
□ Applicable √ Not applicable
No such case during the reporting period.XII. Punishments and Rectifications
□ Applicable √ Not applicable
No such case during the reporting period.XIII. Integrity of the Company and Its Controlling Shareholders and Actual Controllers
□ Applicable √ Not applicable
XIV. Significant Related-party Transaction
1. Related-party transactions arising from routine operation
□Applicable √Not applicable
No such case in the reporting period.
2. Related-party transactions regarding purchase and disposal of assets or equity
□Applicable √Not applicable
No such case in the reporting period.
3. Significant related-party transactions arising from joint investments on external parties
□Applicable √Not applicable
No such case in the reporting period.
95Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
4. Related credit and debt transactions
□ Applicable √Not applicable
No such case in the reporting period.
5. Transactions with related financial companies
□ Applicable √Not applicable
No such case in the reporting period.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable √Not applicable
No such case in the reporting period.
7. Other significant related party transactions
□ Applicable √Not applicable
No such case in the reporting period.XV.Significant Contracts and Execution
1. Matters on trusteeship contracting and leasing
（1）Trusteeship
□ Applicable √ Not applicable
No such case in the reporting period.
（2）Contracting
□ Applicable √ Not applicable
No such case in the reporting period.
（3）Leasing
√Applicable □ Not applicable
Illustration of lease
For details of related information about leasing please refer to the "Lease Disclosures" subsection within "15.Other Significant Matters"of “Section X financial report”.Items with profit and loss exceeding 10% of the total profit of the Company in the report period
□ Applicable √ Not applicable
During the reporting period there is no leasing project with profit and loss of more than 10% of the total profit of
the Company during the reporting period.
96Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2. Significant guarantees
√Applicable □ Not applicable
Unit: RMB in 10 thousand
External Guarantees from the Company and its Subsidiaries (Excluding Guarantees to the Subsidiaries)
Announc
ement
Guarante
Date of Actual
Guarant Guarante Actual Type of Counter Term of e for
Disclosu Guarante Collatera Due or
eed e Occurre Guarante guarante Guarante Related
re of the e l (if any) not
Party Amount nce Date e e (if any) e Parties
Guarante Amount
or Not
e
Amount
Company's Guarantees to Subsidiaries
Announc
ement
Guarante
Date of Actual
Guarant Guarante Actual Type of Counter Term of e for
Disclosu Guarante Collatera Due or
eed e Occurre Guarante guarante Guarante Related
re of the e l (if any) not
Party Amount nce Date e e (if any) e Parties
Guarante Amount
or Not
e
Amount
SANHU
A
INTER
Joint 2023.3.2
NATIO
2022.8.1 liability 4-
NAL 240000 202.3.24 5267.99 Yes Yes
3 guarante 2024.3.2
SINGAP
e 3
ORE
PTE.LTD.Guangd
ong
Sanhua
Joint
New 2023.11.
2023.11. 2023.11. liability
Energy 500 500 29- Yes Yes
7 29 guarante
Vehicle 2024.4.2
e
Compon
ents Co.Ltd.SANHU
A
INTER
Joint
NATIO 2023.5.4
2023.4.2 liability
NAL 340000 2023.5.4 3010.28 - Yes Yes
9 guarante
SINGAP 2024.5.3
e
ORE
PTE.LTD.SANHU
A Joint
2023.5.4
INTER 2023.4.2 liability
340000 2023.5.4 4515.42 - Yes Yes
NATIO 9 guarante
2024.5.3
NAL e
SINGAP
97Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
ORE
PTE.LTD.SANHU
A
INTER
Joint 2023.5.1
NATIO
2023.4.2 2023.5.1 liability 1-
NAL 340000 3762.85 Yes Yes
9 1 guarante 2024.5.1
SINGAP
e 0
ORE
PTE.LTD.SANHU
A
INTER
Joint 2023.5.2
NATIO
2023.4.2 2023.5.2 14298.8 liability 2-
NAL 340000 Yes Yes
9 2 3 guarante 2024.5.2
SINGAP
e 1
ORE
PTE.LTD.SANHU
A
INTER
Joint 2023.5.3
NATIO
2023.4.2 2023.5.3 liability 1-
NAL 340000 7525.7 Yes Yes
9 1 guarante 2024.5.3
SINGAP
e 0
ORE
PTE.LTD.SANHU
A Joint
2023.6.9
INTER 2023.4.2 liability
95000 2023.6.9 10782.6 - Yes Yes
NATIO 9 guarante
2024.6.5
NALIN e
C.SANHU
A
INTER
Joint
NATIO 2023.5.1
2023.4.2 2023.5.1 liability
NAL 340000 2156.52 1- Yes Yes
9 1 guarante
SINGAP 2024.7.8
e
ORE
PTE.LTD.SANHU
A Joint
2023.9.8
INTER 2023.4.2 liability
95000 2023.9.8 2875.36 - Yes Yes
NATIO 9 guarante
2024.9.6
NALIN e
C.SANHU
A Joint 2023.9.1
INTER 2023.4.2 liability -
95000 2023.9.1 1437.68 Yes Yes
NATIO 9 guarante 2024.9.3
NALIN e 0
C.
98Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
SANHU
A
INTER
Joint 2023.8.2
NATIO
2023.4.2 2023.8.2 liability 1-
NAL 340000 14376.8 Yes Yes
9 1 guarante 2024.8.2
SINGAP
e 0
ORE
PTE.LTD.SANHU
A
INTER
Joint 2023.10.NATIO
2023.4.2 2023.10. liability 20-
NAL 340000 5267.99 Yes Yes
9 20 guarante 2024.10.
SINGAP
e 19
ORE
PTE.LTD.SANHU
A
INTER
Joint 2023.10.NATIO
2023.4.2 2023.10. liability 25-
NAL 340000 4515.42 Yes Yes
9 25 guarante 2024.10.
SINGAP
e 24
ORE
PTE.LTD.SANHU
A
INTER
Joint 2023.11.NATIO
2023.4.2 2023.11. liability 20-
NAL 340000 7525.7 Yes Yes
9 20 guarante 2024.11.
SINGAP
e 19
ORE
PTE.LTD.SANHU
A
INTER
Joint 2023.11.NATIO
2023.4.2 2023.11. liability 20-
NAL 340000 7188.4 Yes Yes
9 20 guarante 2024.11.
SINGAP
e 19
ORE
PTE.LTD.SANHU
A
INTER
Joint 2023.12.NATIO
2023.4.2 2023.12. liability 7-
NAL 340000 9783.41 Yes Yes
9 7 guarante 2024.12.
SINGAP
e 6
ORE
PTE.LTD.Zhejiang Joint 2024.6.2
2024.4.32024.6.2
Sanhua 20000 5000 liability 8- Yes Yes
08
Heat guarante 2029.7.2
99Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Exchang e 0
er Co.Ltd.Guangd
ong
Sanhua
Joint 2024.4.2
New
2023.11. 2024.4.2 liability 5-
Energy 500 1105.88 Yes Yes
7 5 guarante 2024.11.
Vehicle
e 30
Compon
ents Co.Ltd.Guangd
ong
Sanhua
Joint 2024.4.2
New
2023.11. 2024.4.2 liability 5-
Energy 500 62.67 Yes Yes
7 5 guarante 2024.11.
Vehicle
e 30
Compon
ents Co.Ltd.Guangd
ong
Sanhua
Joint 2024.4.2
New
2023.11. 2024.4.2 liability 5-
Energy 500 647.41 Yes Yes
7 5 guarante 2024.11.
Vehicle
e 30
Compon
ents Co.Ltd.Guangd
ong
Sanhua
Joint 2024.4.2
New
2023.11. 2024.4.2 liability 5-
Energy 500 989.29 Yes Yes
07 5 guarante 2024.12.
Vehicle
e 30
Compon
ents Co.Ltd.Guangd
ong
Sanhua
Joint 2024.4.2
New
2023.11. 2024.4.2 liability 5-
Energy 500 935.38 Yes Yes
7 5 guarante 2024.12.
Vehicle
e 30
Compon
ents Co.Ltd.SANHU
A Joint
2024.6.6
INTER 2024.4.3 liability
95000 2024.6.6 10782.6 - Yes Yes
NATIO 0 guarante
2025.6.4
NALIN e
C.Sanhua Joint 2024.7.2
2024.4.32024.7.2
AWEC 350000 1505.14 liability 9- Yes Yes
09
O guarante 2024.10.
100Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Applian e 31
ce
Systems
GmbH
Sanhua
AWEC
Joint 2024.11.O
2024.4.3 2024.11. liability 4-
Applian 350000 752.57 Yes Yes
0 4 guarante 2024.11.
ce
e 29
Systems
GmbH
Sanhua
AWEC
Joint 2024.9.9
O
2024.4.3 liability -
Applian 350000 2024.9.9 1505.14 Yes Yes
0 guarante 2024.12.
ce
e 9
Systems
GmbH
Sanhua
AWEC
Joint 2024.9.9
O
2024.4.3 liability -
Applian 350000 2024.9.9 1505.14 Yes Yes
0 guarante 2024.12.
ce
e 9
Systems
GmbH
Sanhua
AWEC
Joint 2024.12.O
2024.4.3 2024.12. liability 9-
Applian 350000 1505.14 No Yes
0 9 guarante 2025.2.1
ce
e 0
Systems
GmbH
Sanhua
AWEC
Joint 2024.12.O
2024.4.3 2024.12. liability 9-
Applian 350000 1505.14 No Yes
0 9 guarante 2025.2.1
ce
e 0
Systems
GmbH
SANHU
A
INTER
Joint 2024.3.2
NATIO
2023.4.2 2024.3.2 liability 4-
NAL 340000 5267.99 No Yes
9 4 guarante 2025.3.2
SINGAP
e 3
ORE
PTE.LTD.SANHU
A
INTER
Joint
NATIO 2024.5.3
2024.4.3 liability
NAL 360000 2024.5.3 3010.28 - No Yes
0 guarante
SINGAP 2025.5.2
e
ORE
PTE.LTD.
101Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
SANHU
A
INTER
Joint
NATIO 2024.5.3
2024.4.3 liability
NAL 360000 2024.5.3 4515.42 - No Yes
0 guarante
SINGAP 2025.5.2
e
ORE
PTE.LTD.SANHU
A
INTER
Joint
NATIO 2024.5.1
2024.4.3 2024.5.1 liability
NAL 360000 3762.85 0- No Yes
0 0 guarante
SINGAP 2025.5.9
e
ORE
PTE.LTD.SANHU
A
INTER
Joint 2024.5.2
NATIO
2024.4.3 2024.5.2 14298.8 liability 1-
NAL 360000 No Yes
0 1 3 guarante 2025.5.2
SINGAP
e 0
ORE
PTE.LTD.SANHU
A
INTER
Joint 2024.5.3
NATIO
2024.4.3 2024.5.3 liability 0-
NAL 360000 7525.7 No Yes
0 0 guarante 2025.5.2
SINGAP
e 9
ORE
PTE.LTD.SANHU
A
INTER
Joint
NATIO 2024.7.3
2024.4.3 liability
NAL 360000 2024.7.3 2156.52 - Yes Yes
0 guarante
SINGAP 2025.7.2
e
ORE
PTE.LTD.SANHU
A
INTER
Joint 2024.8.2
NATIO
2024.4.3 2024.8.2 liability 0-
NAL 360000 7188.4 No Yes
0 0 guarante 2025.8.1
SINGAP
e 9
ORE
PTE.LTD.SANHU Joint 2024.8.2
2024.4.32024.8.2
A 360000 7188.4 liability 0- No Yes
00
INTER guarante 2025.8.1
102Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
NATIO e 9
NAL
SINGAP
ORE
PTE.LTD.SANHU
A Joint
2024.9.4
INTER 2024.4.3 liability
95000 2024.9.4 2156.52 - No Yes
NATIO 0 guarante
2025.9.3
NALIN e
C.SANHU
A Joint 2024.9.2
INTER 2024.4.3 2024.9.2 liability 7-
95000 2515.94 No Yes
NATIO 0 7 guarante 2025.9.2
NALIN e 6
C.SANHU
A
INTER
Joint 2024.10.NATIO
2024.4.3 2024.10. liability 20-
NAL 360000 5267.99 No Yes
0 20 guarante 2025.10.
SINGAP
e 19
ORE
PTE.LTD.SANHU
A
INTER
Joint 2024.10.NATIO
2024.4.3 2024.10. liability 25-
NAL 360000 4515.42 No Yes
0 25 guarante 2025.10.
SINGAP
e 24
ORE
PTE.LTD.SANHU
A
INTER
Joint 2024.11.NATIO
2024.4.3 2024.11. liability 19-
NAL 360000 7525.7 No Yes
0 19 guarante 2025.11.
SINGAP
e 18
ORE
PTE.LTD.SANHU
A
INTER
Joint 2024.11.NATIO
2024.4.3 2024.11. liability 19-
NAL 360000 7188.4 No Yes
0 19 guarante 2025.11.
SINGAP
e 18
ORE
PTE.LTD.SANHU Joint 2024.12.
2024.4.32024.12.
A 360000 9783.41 liability 6- No Yes
06
INTER guarante 2025.12.
103Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
NATIO e 5
NAL
SINGAP
ORE
PTE.LTD.Total Amount of Total Amount of
Guarantees to Guarantees to
Subsidiaries Subsidiaries
810000226460.21
Approved during the Actually Occurred
Reporting Period during the Reporting
(B1) Period (B2)
Total Amount of Total Balance of
Guarantees to Guarantees Actually
Subsidiaries Paid to Subsidiaries
81000094721.53
Approved by the at the End of the
End of the Reporting Reporting Period
Period (B3) (B4)
Subsidiaries' Guarantees to Subsidiaries
Announc
ement
Guarante
Date of Actual
Guarant Guarante Actual Type of Counter Term of e for
Disclosu Guarante Collatera Due or
eed e Occurre Guarante guarante Guarante Related
re of the e l (if any) not
Party Amount nce Date e e (if any) e Parties
Guarante Amount
or Not
e
Amount
The total amount of the Company's guarantees (the total of the above three items)
Total Amount of Total Amount of
Guarantees Guarantees Actually
Approved during the 810000 Occurred during the 226460.21
Reporting Period Reporting Period
(A1+B1+C1) (A2+B2+C2)
Total Amount of Total Balance of
Guarantees Guarantees Actually
Approved by the 810000 Paid at the End of 94721.53
End of the Reporting the Reporting Period
Period (A3+B3+C3) (A4+B4+C4)
Total Amount of Actual Guarantees
(A4+B4+C4) as a Percentage of the 4.91%
Company's Net Assets
Of which:
Outstanding Guarantees Provided to
Shareholders Actual Controllers and Their 0
Related Parties (D)
Balance of Debt Guarantees Directly or
Indirectly Offered to Guaranteed Objects 3010.28
with Asset-liability Ratio Exceeding 70% (E)
Amount Exceeding 50% of Net Assets in
0
Total Guarantees (F)
Total Amount of the Above Three
3010.28
Guarantees (D+E+F)
104Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
3. Entrusting others to manage cash assets
(1) Entrusted financing
√Applicable □ Not applicable
Entrusted financing during the reporting period
Unit: RMB in 10 thousand
Accrued
impairment
Overdue
Balance before amount of overdue
Specific type Capital source Amount uncollected
maturity unrecovered
amount
financial
management
Bank financial Own funds Raised
163500163500
products Capital
Securities
Company Wealth Own funds Raised
149399.9139399.9
Management Capital
Products
Total 312899.9 302899.9
Details of high-risk entrusted financial management with large single amount low security or poor liquidity
□Applicable √Not applicable
The principal of entrusted financial management is expected uncollectible or there are other situations that may
lead to impairment
□ Applicable √ Not applicable
(2) Entrusted loans
□ Applicable √ Not applicable
No such case in the reporting period.
4. Significant contracts in operation
□ Applicable √ Not applicable
No such case in the reporting period.XVI. Other Significant Events
√Applicable □ Not applicable
1. Repurchase of company shares
The 30th Interim Meeting of the Seventh Board of Directors convened on December 30 2024 reviewed and
approved the Proposal on the Share Repurchase Plan. The Company utilized self-owned funds and specialized
share repurchase loan capital to repurchase shares through centralized bidding on the Shenzhen Stock Exchange
with the repurchased shares designated for subsequent equity incentive plans or employee stock ownership
programs. The maximum repurchase price would not exceed RMB 36.00 per share with total repurchase funds
105Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
ranging between RMB 300 million and RMB 600 million. The repurchase period will span 12 months from the
date of board approval. Further details are available in the official announcements published by the Company on
the Juchao Information Network (www.cninfo.com.cn).XVII. Significant Events of the Company’s Subsidiaries
□ Applicable √ Not applicable
106Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Section VII Changes in Shares and Information about Shareholders
I. Changes in Shares
1. Changes in shares
Unit: Share
Before the change Changes in the period (+ -) After the change
Share
transferre
New Bonus d
Shares Ratio Shares share from Others Sub-total Shares Ratio
Issued capital
reserve
1. Shares
subject to
42522194173119417316193950
conditional 1.14% 1.66%
191112
restriction(s
)
1) Shares
held by
states
2) Shares
held by
state-owned
corporations
3) Shares
held by
42466194413119441316190750
other 1.14% 1.66%
191112
domestic
investors
Of
which:
Shares held
by domestic
corporations
Shares
held by 42466 1944131 1944131 6190750
1.14%1.66%
domestic 191 1 1 2
individuals
4) Shares
held by
560000.00%-24000-24000320000.00%
overseas
investors
Of
which:
Shares held
by overseas
corporations
107Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Shares
held by
560000.00%-24000-24000320000.00%
overseas
individuals
2. Shares - -
369003670450
without 98.86% 1964331 1964331 98.34%
93344033
restriction 1 1
1) RMB - -
369003670450
common 98.86% 1964331 1964331 98.34%
93344033
shares 1 1
2)
Domesticall
y listed
foreign
shares
3) Foreign
shares listed
overseas
4) Others
373263732389
3. Total 100.00% -226000 -226000 100.00%
15535535
Reason for the changes in share capital
√ Applicable □ Not applicable
1. At the beginning of each year the number of locked shares should be re-calculated according to 75% of the
total number of shares held by the senior management.
2. Under the Company's 2024 restricted shares incentive plan 24.91 million restricted shares were granted to
1933 incentive recipients with the shares sourced from the company's repurchase account and tradable shares
being converted into restricted shares.
3. June 29 2024 the second vesting period of the 2022 restricted share incentive plan was completed and 5.133
million restricted shares of 1313 incentive recipients who meet the conditions were released.
4. The Company has repurchased and canceled 226000 restricted shares held by 33 incentive recipients who do
not meet the conditions under the 2022 Restricted Share Incentive Plan.Approval for changes in share capital
√ Applicable □ Not applicable
1. Under the 2024 restricted stock incentive plan the total of 24.91 million restricted shares were granted to 1933
incentive recipients with the price of RMB 11.75 per share by June 19 2024. The approval details are as follows:
(1) April 19 2024 the Company held the 20th extraordinary meeting of the 7th Board of Directors and the 17th
extraordinary meeting of the 7th Board of Supervisors respectively in which Resolution on the '2024 Restricted
Share Incentive Plan (Draft)' and Its Summary of Zhejiang Sanhua Intelligent Controls Co. Ltd. Resolution on
the 'Implementation and Assessment Management Measures for the 2024 Equity Incentive Plan of Zhejiang
Sanhua Intelligent Controls Co. Ltd. and Resolution on Requesting the General Shareholders' Meeting to
108Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Authorize the Board of Directors to Handle Matters Related to the 2024 Equity Incentive Plan were approved by
the Compensation and Assessment Committee of the Board of Directors.
(2) April 30 2024 the Company disclosed in announcement the Supervisory Committee's Report on the Public
Disclosure and Verification of the Grantee List for the 2024 Equity Incentive Plan.
(3) May 6 2024 the first extraordinary general meeting of shareholders in 2024 was held in which Resolution on
the '2024 Restricted Share Incentive Plan (Draft)' and Its Summary of Zhejiang Sanhua Intelligent Controls Co.Ltd. Resolution on the 'Implementation and Assessment Management Measures for the 2024 Equity Incentive
Plan of Zhejiang Sanhua Intelligent Controls Co. Ltd. and Resolution on Authorizing the Board of Directors to
Handle Matters Related to the 2024 Equity Incentive Plan were approved.
(4) May 13 2024 the 22nd extraordinary meeting of the 7th Board of Directors and the 19th extraordinary
meeting of the 7th Board of Supervisors approved the Resolution on Granting Restricted Shares to Grantees
under the 2024 Restricted Share Incentive Plan. These resolutions had been previously approved by the
Compensation and Assessment Committee of the Board of Directors.
(5) June 3 2024 the 23rd extraordinary meeting of the 7th Board of Directors and the 20th extraordinary meeting
of the 7th Board of Supervisors approved the Resolution on Granting Restricted Shares to Deferred Grantees
under the Company's 2024 Restricted Share Incentive Plan and Resolution on Adjusting the List of Grantees
Grant Quantity and Grant Price under the 2024 Restricted Share Incentive Plan. These resolutions had been
previously approved by the Compensation and Assessment Committee of the Board of Directors.
(6) June 20 2024 the second extraordinary general meeting of shareholders in 2024 was held in which Proposal
on repurchase and cancellation of some restricted shares was approved. The Company repurchased and cancelled
22600 restricted shares held by unqualified incentive objects in the 2022 restricted stock incentive plan.
2. June 3 2024 the 23rd extraordinary meeting of the 7th Board of Directors and the 20th extraordinary meeting
of the 7th Board of Supervisors approved the Resolution on Fulfillment of Release Conditions for the Second
Vesting Period under the 2022 Restricted Share Incentive Plan and Resolution on Repurchase and Cancellation of
Portion of Restricted Shares. These resolutions were previously approved by the Compensation and Assessment
Committee of the Board of Directors. A total of 1313 incentive recipients have met the release conditions with
5.133 million shares eligible for release from restrictions.
Transfer of shares
√ Applicable □ Not applicable
1. May 13 2024 and June 3 2024 the Company granted a total of 24.91 million restricted shares to 1933
incentive recipients. The share transfer registration for restricted shares was formally completed on June 19 2024.
2. In 2024 the Company repurchased and cancelled 226000 shares that were not qualified for unlocking with the
repurchase and cancellation procedures formally completed on September 27 2024.Effects of changes in share capital on the basic earnings per share ("EPS") diluted EPS net assets per
share attributable to common shareholders of the Company and other financial indexes over the last year
109Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
and last period
□ Applicable √Not applicable
Other contents that the Company considers necessary or required by the securities regulatory authorities
to disclose
□ Applicable √ Not applicable
2. Changes in restricted shares
√ Applicable □ Not applicable
Unit: Share
Opening
Unlock shares Closing balance Note for
Name of balance of Vested in Date of
in current of restricted restricted
shareholder restricted current period unlocking
period shares shares
shares
Comply with Comply with
the relevant the relevant
provisions of provisions of
Zhang Yabo 29268150 0 0 29268150
executives executives
shares shares
management management
Comply with Comply with
relevant relevant
provisions of provisions of
Wang Dayong 189421 100000 0 289421 equity incentive equity incentive
and executive and executive
shares shares
management. management.Comply with Comply with
relevant relevant
provisions of provisions of
Ni Xiaoming 183796 80000 0 263796 equity incentive equity incentive
and executive and executive
shares shares
management. management.Comply with Comply with
relevant relevant
provisions of provisions of
Chen Yuzhong 252562 80000 0 332562 equity incentive equity incentive
and executive and executive
shares shares
management. management.Comply with Comply with
relevant relevant
provisions of provisions of
Hu Kaicheng 189421 80000 0 269421 equity incentive equity incentive
and executive and executive
shares shares
management. management.Comply with Comply with
relevant relevant
Yu Yingkui 212901 80000 0 292901 provisions of provisions of
equity incentive equity incentive
and executive and executive
110Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
shares shares
management. management.Comply with Comply with
relevant relevant
provisions of provisions of
Mo Yang 10926 0 0 10926
executive executive
shares shares
management. management.Comply with Comply with
relevant relevant
provisions of provisions of
Chen Xiaoming 8325 0 0 8325
executive executive
shares shares
management. management.Comply with Comply with
Other incentive relevant relevant
1195600024490000524200031204000
objects provisions of provisions of
equity incentive equity incentive
Total 42271502 24910000 5242000 61939502 -- --
II. Issuance and Listing of Securities
1. Securities (exclude preferred share) issued during the reporting period
□ Applicable √ Not applicable
2. Explanation on changes in share capital & the structure of shareholders the structure of assets and
liabilities
√Applicable □ Not applicable
June 20 2024 the second extraordinary general meeting of shareholders in 2024 was held in which Proposal on
repurchase and cancellation of some restricted shares was approved. The Company repurchased and cancelled
226000 restricted shares held by unqualified incentive objects in the 2022 restricted stock incentive plan.
3. Existent shares held by internal staff of the Company
□ Applicable √ Not applicable
III. Particulars about the shareholders and actual controller
1. Total number of shareholders and their shareholdings
Unit: Share
Total Total Total Total number of preferred
Number of number of Number of shareholders (if any)
Common 145342 common 216612 Preferred 0 (refer to Note 8) with 0
Shareholde shareholder Shareholde resumed voting rights at
rs at the s at the end rs (If Any) the end of previous month
End of the of previous (Refer to before the disclosure date
111Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Reporting month Note 8) of the annual report
Period before the Whose
disclosure Voting
date of the Rights
annual Have Been
report Recovered
at the End
of the
Reporting
Period
Particulars about Shares Held by Shareholders with a Shareholding Percentage over 5% or the Top 10 of Them
(excluding Securities Lending and Borrowing)
Total Increase/ The The
Share- shares held number of number of Pledged marked or frozendecrease
Name of Nature of holding at the end during the shares held shares held
shareholder shareholder percentage of the reporting with without
(%) reporting period trading trading
Status Amount
period restrictions restrictions
Sanhua Domestic
Holding non-state- 94848707 94848707 Not
Group Co. owned
25.41%000
7 7 applicable
Ltd. corporation
Zhejiang
Sanhua Domestic
Lvneng non-state- 74274795 74274795 22000000
19.90% 0 0 Pledged
Industrial owned 4 4 0
Group Co. corporation
Ltd
Hong Kong
-
Central Overseas 23898659 23898659 Not
6.40%3401654200
Clearing corporation 3 3 applicable
Limited
Zhang Domestic Not
1.05%3902420002926815097560500
Yabo Individual applicable
Industrial
and
Commercia
l Bank of
China
Limited–
Huatai-
PineBridge Not
Others 1.04% 38648497 21994900 0 38648497 0
CSI 300 applicable
Exchange
Traded
Open-End
Index
Securities
Investment
Fund
China
Constructio
n Bank Not
Others 0.71% 26667180 20614800 0 26667180 0
Corporatio applicable
n Limited
– E Fund
112Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
CSI 300
Sponsored
Exchange
Traded
Open-End
Index
Securities
Investment
Fund
Kuwait
Overseas Not
Investment 0.63% 23520834 5974295 0 23520834 0
corporation applicable
Authority
National
Social
Security Not
Others 0.52% 19432707 19432707 0 19432707 0
Fund applicable
Portfolio
102
China Life
Insurance
Company
Limited–
Traditional
Not
-General Others 0.51% 19143116 2518126 0 19143116 0
applicable
Insurance
Product-
005L-
CT001
Shanghai
Industrial
and
Commercia
l Bank of
China
Limited–
China
Not
Europe Others 0.48% 17847644 17847644 0 17847644 0
applicable
Times
Pioneer
Equity
Sponsored
Securities
Investment
Fund
Information about
Strategic Investors’ or
General Legal Persons’
Becoming Top Ten No
Common Shareholders for
Placement of New Shares
(If Any) (Refer to Note 3)
Explanation on Among the above shareholders Sanhua Holding Group Co. Ltd. Zhejiang Sanhua Lvneng
Associated Relationship Industrial Group Co. Ltd. and Zhang Yabo are the persons acting in concert. The Company does not
or Concerted Actions know whether there is any related relationship between other shareholders or whether they belong
among the Above- to the persons acting in concert stipulated in the Administrative Measures for the Acquisition of
Mentioned Shareholders Listed Companies.
113Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Disclosure on
Delegated/Exercised
Voting Rights and Waiver
No
of Voting Rights by the
Above-Mentioned
Shareholders
Special Note on Buyback
Dedicated Accounts
Among Top 10 No
Shareholders (if
applicable) (see Note 10)
Particulars about Shares Held by Top 10 Common Shareholders Holding Shares That Are Not Subject to Trading Restrictions
Type of shares
Number of Common Shares Held without Restrictions at the End of
Name of Shareholder
the Reporting Period
Type Amount
RMB
Sanhua Holding Group 94848707
948487077 common
Co. Ltd. 7
stock
RMB
Zhejiang Sanhua Lvneng 74274795
742747954 common
Industrial Group Co. Ltd 4
stock
RMB
Hong Kong Central 23898659
238986593 common
Clearing Limited 3
stock
Industrial and
Commercial Bank of
China Limited– Huatai- RMB
PineBridge CSI 300 38648497 common 38648497
Exchange Traded Open- stock
End Index Securities
Investment Fund
China Construction Bank
Corporation Limited – E
RMB
Fund CSI 300 Sponsored
26667180 common 26667180
Exchange Traded Open-
stock
End Index Securities
Investment Fund
RMB
Kuwait Investment
23520834 common 23520834
Authority
stock
RMB
National Social Security
19432707 common 19432707
Fund Portfolio 102
stock
China Life Insurance
Company Limited – RMB
Traditional-General 19143116 common 19143116
Insurance Product-005L- stock
CT001 Shanghai
Industrial and
Commercial Bank of RMB
China Limited– China 17847644 common 17847644
Europe Times Pioneer stock
Equity Sponsored
114Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Securities Investment
Fund
Industrial and
Commercial Bank of
China Limited– RMB
ChinaAMC CSI 300 17726424 common 17726424
Exchange Traded Open- stock
End Index Securities
Investment Fund
Explanation of Associated
Relationship or Concerted
Actions among Top Ten
Common Shareholders Among the above shareholders Sanhua Holding Group Co. Ltd. Zhejiang Sanhua Lvneng
without Trading Industrial Group Co. Ltd. and Zhang Yabo are the persons acting in concert. The Company does not
Restrictions and among know whether there is any related relationship between other shareholders or whether they belong
Top Ten Common to the persons acting in concert stipulated in the Administrative Measures for the Acquisition of
Shareholders without Listed Companies.Trading Restrictions and
Top Ten Common
Shareholders
Explanation of Top Ten
Common Shareholders’
Participation in Securities N/A
Margin Trading (If Any)
(Refer to Note 4)
The major shareholders (holding ≥5% shares) the top ten shareholders and unrestricted circulating shareholders
participating in the securities lending and borrowing
√ Applicable □ Not applicable
Unit: share
The major shareholders (holding≥5% shares) the top ten shareholders and unrestricted circulating shareholders participating in
the securities lending and borrowing
Shares in the common
account and Shares lent and not yet Shares in the common Shares lent and not yet
returned at the period- account and credit account
Full name credit account at the returned at the period-endbegin at the period-end
of period-begin
shareholder As % of As % of As % of As % of
Total Total Total Total
total share total share total share total share
shares shares shares shares
capital capital capital capital
Industrial
and
Commercia
l Bank of
China
Limited–
Huatai-
PineBridge 16653597 0.45% 20600 0.00% 38648497 1.04% 0 0.00%
CSI 300
Exchange
Traded
Open-End
Index
Securities
Investment
115Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Fund
China
Construct
ion Bank
Corporati
on– E
Fund CSI
300
Exchange
Traded 6052380 0.16% 146400 0.00% 26667180 0.71% 0 0.00%
Open-
End
Index
Sponsore
d
Securities
Investme
nt Fund
Industrial
and
Commerc
ial Bank
of China
Limited
–
ChinaAM
C CSI
30045580240.12%2856000.01%177264240.47%00.00%
Exchange
Traded
Open-
End
Index
Securities
Investme
nt Fund
Changes in the top ten shareholders compared to the previous period
□Applicable √ Not applicable
Any of the Company’s top 10 common shareholders or top 10 non-restricted common shareholders conducted any
agreed buy-back in the reporting period
□ Applicable √ Not applicable
No such cases during the current reporting period.
2. Particulars about controlling shareholder of the Company
Nature of the controlling shareholder: Natural person
Type of the actual controller: Corporation
Name of controlling Legal Representative
/People in charge Date of establishment Organization code Business scopeshareholder
Industrial investment;
Sanhua Holding Group
Zhang Daocai July 11 2000 91330624720002522J Manufacturing and
Co. Ltd
sales: General parts
116Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
electronic products;
sales: metal materials
(excluding precious
and rare metals)
chemical raw materials
(except dangerous
chemicals and
precursor chemicals)
rubber; export of
products and related
technologies produced
by the enterprise and
its member enterprises.It is engaged in the
export business of raw
and auxiliary materials
machinery and
equipment instruments
and meters spare parts
and related
technologies needed by
the enterprise and its
member enterprises for
production and
scientific research; it is
engaged in the
processing of imported
materials and the
business of "three
supplies and one
supplement". Technical
consultation technical
service financial
consultation and
investment
consultation. (In terms
of projects subject to
approval according to
law business activities
can be carried out only
after approval by
relevant departments.)
Shares held by the
controlling shareholder
in other foreign listed
companies through N/A
controlling or holding
during the reporting
period
Change of the controlling shareholder during the reporting period
□ Applicable √ Not applicable
The Company's controlling shareholder has not changed during the reporting period.
117Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
3. Particulars about the Company’s actual controller & concerted parties
Nature of the actual controller: Domestic natural person
Type of the actual controller: Natural person
Name of the actual Whether he/she has obtainedRelationship with the actual
controller Nationality the right of residence incontroller
another country or region
Zhang Daocai Himself China No
Zhang Yabo Himself China No
Zhang Shaobo Himself China No
Mr. Zhang Daocai: Chinese nationality born in 1950 senior economist. He is honorary chairman
of the Company and chairman of the board of directors of Sanhua Holding Group Co. Ltd. He
was elected as the representative of the 8th 9th 10th 11th and 12th National People's Congress
of Zhejiang Province and vice president of the China Enterprise Federation and the Chinese
Entrepreneurs Association. Used to be the vice president of Zhejiang small and medium sized
Enterprises Association vice president of Zhejiang Business Management Research Association
and vice president of Asia Pacific Chinese Leaders Association and won the National Labor
Medal of May 1st national excellent entrepreneur master of Chinese management most creative
Chinese business leader in Asia Pacific Model worker of Zhejiang Province meritorious
entrepreneur of implementing the "eight eight strategy" in Zhejiang Province lifelong leader
entrepreneur of Zhejiang Province leading figures of Zhejiang Manufacturing and other honors.Mr. Zhang Yabo: Chinese nationality CPC member born in 1974 senior economist graduated
from Shanghai Jiaotong University received a master's degree in Business Administration from
CEIBS. At present he is the chairman of the board of the Company Secretary of the Party
Main occupation and position committee of Sanhua holding group vice chairman and director of the board of Sanhua Holding
Group Co. Ltd. He has successively won Zhejiang outstanding young private entrepreneurs
Zhejiang operation and management masters Shaoxing labor model Shaoxing top ten
outstanding young people Shaoxing mayor award Changjiang River Delta top ten outstanding
young businessmen Fengyun Zhejiang businessmen Zhejiang outstanding entrepreneurs
Zhejiang excellent entrepreneurs glorious Zhejiang businessman etc. Now he serves as a
representative to the 14th National People's Congress the 13th Executive Committee Member of
the China Federation of Industry and Party Representative of the 15th Zhejiang Provincial Party
Congress Vice President of Zhejiang Chamber of Commerce and Chairman Supervisor of the
Zhejiang Chamber of Commerce.Mr. Zhang Shaobo: Chinese nationality born in 1979 master's degree graduated from CEIBS.He serves as a director of the Company director of Sanhua Holding Group Co. Ltd. chairman
of the board of Zhejiang Sanhua Lvneng Industrial Group Co. Ltd. General Manager of
Hangzhou Sanhua International Building Co. Ltd. and chairman of the board of Zhejiang
Sanhua Zhiyuan Real Estate Co. Ltd.Domestic and foreign listed
companies controlled in the N/A
past 10 years
Change of the actual controller during the reporting period
□ Applicable √ Not applicable
No such change during the reporting period.The ownership and controlling relationship between the actual controller and the Company are detailed as follows:
118Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Zhang Yu
22% Daocai Qingjuan 21%
Zhang Yabo Zhang Shaobo
51%6%
38.84% Xinchang Huaqing Investment Co. Ltd. 45.45%
Xinchang Huaxin Industrial Co. Ltd. Zhejiang Huateng Industrial Co. 10.04%
12.35%28.77%9.04%
11.78% Sanhua Holding Group Co. Ltd.
100%
1.05%
Hong Kong Haoyide International Ltd.
46.23%
100%
Fuxun Co. Ltd.
28.20%
25.41%
Zhejiang Sanhua lvneng Industrial Group Co. Ltd.
19.90%
Zhejiang Sanhua Intelligent Controls Co. Ltd.The actual controller controls the Company via trust or other ways of asset management
□ Applicable √ Not applicable
4. The cumulative number of Pledged Shares of the Company's controlling shareholder or the largest
shareholder and its concerted actors accounts for 80% of the Company's shares
□ Applicable √ Not applicable
5. Particulars about other corporate shareholders with shareholding proportion over 10%
√ Applicable □ Not applicable
Name of corporate Legal
Date of incorporation Registered capital Main business
shareholder representative
Manufacturing and sales: air
suspension assembly general
Zhejiang Sanhua equipment electromechanical
Lvneng Industrial Zhang Shaobo September 30 2001 649 million yuan equipment technology development
Group Co. Ltd technical service technical
consultation achievement transfer:
electromechanical technology
119Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
environmental protection
technology biotechnology (except
for human stem cells gene diagnosis
and treatment technology
development and application);
electronic and electrical products
metal materials (excluding precious
metals) chemical raw materials
(except chemical dangerous goods
and precursor chemicals) Wholesale
retail and import and export business
of gold and silver jewelry rubber
mineral products machinery and
equipment instruments and
accessories; services: enterprise
management consulting property
management (operating by
qualification certificate) self-owned
house leasing industrial investment
management consulting
management (except for securities
and goods without approval of
financial supervision departments
shall not engage in deposit financing
guarantee agency for public
financing Financial services such as
customer finance) power supply
development and construction of
distributed solar energy projects and
contract energy management.
(Except for those involving the
implementation of special
management measures for access
stipulated by the state). (In terms of
projects subject to approval
according to law business activities
can be carried out only after
approval by relevant departments.)
6. Particulars on shareholding decrease restrictions for the controlling shareholders actual controller
restructurer or other committing parties
√ Applicable □ Not applicable
August 2022 the Company disclosed Announcement on Sanhua Holdings Sanhua Lvneng and Mr. Zhang
Yabo's Commitment not to Actively Reduce Their Holdings of the Company Stocks. The controlling shareholder
Sanhua Holdings the shareholder Sanhua Lvneng and the actual controller Mr. Zhang Yabo will not actively
reduce their holdings of the Company's shares within 18 months from August 18 2022.IV. Information about the implementation of share repurchase during the reporting period
Information about the implementation of share repurchase
√Applicable □Not applicable
120Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Proportion of
Proposed repurchased
Scheme Number of Proportion in repurchase Quantity shares in
Period to be Repurchase
disclosure shares to be total share amount Unit: repurchased equity
repurchased purpose
date repurchased capital (RMB in 10 (shares) incentive
thousand) plan shares
(if any)
For equity
November incentive
November 5555555- 0.15%- 20000- 7 2023 - plans or
7 2023 11111110 0.30% 40000 November
employee 13961794 100.00%
6 2024 stockownership
plans
For equity
December incentive
December 8333333- plans or
31202416666666
0.22%-30000-312024-
0.45% 60000 December employee 0 100.00%
30 2025 stockownership
plans
The progress on reduction of re-purchase shares by means of centralized bidding
□Applicable √Not applicable
121Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Section VIII Information of Preferred Shares
□ Applicable √ Not applicable
No existing preferred shares for the Company during the current reporting period.Section IX Bonds
□ Applicable √ Not applicable
122Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Section X Financial Report
I. Audit report
Type of audit opinion Standard Unqualified opinion
Date of signing of audit report March 25 2025
Name of audit firm Pan-China Certified Public Accountants LLP
Document number of audit report PCCPAAR [2025] No. 888
Name of the certified accountants Qian Zhongxian、Ouyang Xiaoyun、Zhou Heng
Auditor’s Report
To the Shareholders of Zhejiang Sanhua Intelligent Controls Co. Ltd.:
1. Audit Opinion
We have audited the accompanying financial statements of Zhejiang Sanhua Intelligent Controls Co. Ltd.(the “Company”) which comprise the consolidated and parent company balance sheets as at December 31 2024
the consolidated and parent company income statements the consolidated and parent company cash flow
statements and the consolidated and parent company statements of changes in equity for the year then ended as
well as notes to financial statements.In our opinion the attached financial statements present fairly in all material respects the financial position
of the Company as at December 31 2024 and of its financial performance and its cash flows for the year then
ended in accordance with China Accounting Standards for Business Enterprises.
2. Basis for Audit Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those
standards are further described in the Certified Public Accountant’s Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with the China Code of
Ethics for Certified Public Accountants and we have fulfilled other ethical responsibilities. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
3. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole and in forming our opinion thereon and we do not express a separate opinion on
these matters.(I) Revenue recognition
1. Matters description
Please refer to sectionⅢ (24)Ⅴ (2) 1 and XV of the notes to the financial statements for details.The majority of the Company's revenue comes from controlling components and components for home
appliances and automobiles. In 2024 the amount of operating income of the Company is RMB 27.9471645 billion
As operating revenue is one of the key performance indicators of the Company there might be inherent risks that
the Company’s management (the “Management”) adopts inappropriate revenue recognition to achieve specific
goals or expectations we have identified revenue recognition as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for revenue recognition are as follows:
123Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
(1) We understand and assess the design of internal controls over financial reporting related to revenue
recognition and test the effectiveness of key control implementation;
(2) We examine the core terms of sales contracts to assess the appropriateness and consistent application of
accounting policies related to revenue recognition;
(3) We perform analytical procedures to identify whether there are significant or unusual variations in
revenues during the reporting period question management to understand the reasons for such variations and
assess the reasonableness;
(4)We implemented detail test and checked supporting documents related to revenue recognition by
sampling method including sales contracts sales invoices sales collection delivery lists shipping documents
client acceptance receipts export declaration lading bill we obtained information from E-port and compared with
accounting records of export revenue；
(5) We performed confirmation procedures on current sales amount by sampling method in combination
with confirmation procedure of accounts receivable;
(6) We inquired the industrial and commercial registration information or public information of major
customers to evaluate whether the business logic related to sales transactions is tenable;
(7) We implemented cut-off tests on the operating revenue recognized before and after the balance sheet
date to evaluate whether the operating revenue is recognized in an appropriate period;
(II) Inventories valuation
1. Matters description
Please refer to sectionⅢ (12) andⅤ (1) 7 of the notes to the financial statements for details.As of December 31 2024 the book balance of the Company's inventories amounted to RMB 5.2804418
billion the major components are metal materials such as copper and aluminum. The metal materials have high
value and good liquidity they are important controlled assets. Therefore we have identified the existence
valuation and transfer of inventory as a key audit matter.
2. Responsive audit procedures
Our main audit procedures for inventories valuation are as follows:
(1) We understand and assess the design of internal controls over financial reporting related to inventory
management including the assessment of the provision for inventory write-downs and test the effectiveness of
the implementation of key controls;
(2) We implemented analysis procedures to identify significant or abnormal changes in inventory size and
structure and question management to understand the reasons for such variations and assess reasonableness;
(3) We implemented detail test and checked supporting documents related to material purchase by sampling
method including purchases contracts input invoices warehouse receipts purchase payments etc;
(4) We performed confirmation procedures on current purchases amount by sampling method in
combination with confirmation procedure of accounts payable;
(5) We searched the market price trends of the main raw materials and compared them with the actual
purchase prices to check for any abnormal situations;
(6) We understand production processes and costing methods select samples recalculate production costs
and assess the consistency and reasonableness of management's approach to cost aggregation and allocation;
(7) We conducted sampling tests on the inventories valuation to check the pricing accuracy of the
inventories issuance amount and the balance amount;
(8) We performed inventory monitoring evaluated management's instructions and procedures for recording
and controlling the results of inventory counts observed the implementation of the counting procedures
established by management inspected the quantity and condition of inventory and performed spot-checks;
124Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
(9) We obtained management's calculation sheet for the provision for decline in value of inventories
checked the reasonableness of the method of recognising the net realisable value of inventories at the end of the
period measured the net realisable value of inventories at the end of the period and judged the accuracy of the
amount of the provision for decline in value.
4. Other Information
The Company’s management (the “Management”) is responsible for the other information. The other
information comprises the information included in the Company’s annual report but does not include the financial
statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information
and in doing so consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the other
information we are required to report that fact. We have nothing to report in this regard.
5. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The Management is responsible for preparing and presenting fairly the financial statements in accordance
with China Accounting Standards for Business Enterprises as well as designing implementing and maintaining
internal control relevant to the preparation of financial statements that are free from material misstatement
whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing the Company’s ability to
continue as a going concern disclosing as applicable matters related to going concern and using the going
concern basis of accounting unless the Management either intends to liquidate the Company or to cease operations
or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.
6. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement whether due to fraud or error and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with China Standards on Auditing will always detect a material misstatement when it exists.Misstatement can arise from fraud or error and are considered material if individually or in the aggregate they
could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.We exercise professional judgment and maintain professional skepticism throughout the audit performed in
accordance with China Standards on Auditing. We also:
(I) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or
error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions
misrepresentations or the override of internal control.(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
125Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
are appropriate in the circumstances.(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Management.(IV) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and
based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements .If the disclosure is insufficient we should express a non unqualified opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However future events
or conditions may cause the Company to cease to continue as a going concern.(V) Evaluate the overall presentation structure and content of the financial statements and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are responsible for
the direction supervision and performance of the group audit. We remain sole responsibility for our audit opinion.We communicate with those charged with governance regarding the planned audit scope time schedule and
significant audit findings including any deficiencies in internal control of concern that we identify during our
audit.We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when in extremely rare circumstances we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.Pan-ChinaCertifiedPublicAccountantsLLP ChineseCertifiedPublicAccountant：Qian Zhongxian
(EngagementPartner)
Hangzhou ·China ChineseCertifiedPublicAccountant：Ouyang Xiaoyun
ChineseCertifiedPublicAccountant：Zhou Heng
DateofReport: March 25 2025
126Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
II. Financial Statements
Units of financial reports in the notes: RMB
1.Consolidated Balance Sheet
Prepared by: Zhejiang Sanhua Intelligent Controls Co. Ltd.December 31 2024
Unit: RMB
Items December 312024 January 1 2024
Current asset：
Cash and Bank Balances 5248567646.21 6584684683.93
Settlement funds
Loans to other banks
Held-for-trading financial
assets
Derivative financial assets 6237202.48 22636112.68
Notes receivable 2677270284.96 2476839413.89
Accounts receivable 6951066861.07 5773991481.22
Receivable financing
Advances paid 158980448.21 133792623.54
Premium receivable
Reinsurance accounts
receivable
Reinsurance reserves
receivable
Other receivables 258058796.63 227792892.12
Including: Interest
receivable
Dividends
receivable
Repurchasing of financial
assets
Inventories 5280441824.48 4600729378.19
Including: data resources
Contract assets
Assets held for sales
Non-current assets due
within one year
Other current assets 1720539931.75 251073584.56
Total current assets 22301162995.79 20071540170.13
Non-current assets:
Loans and advances paid
Debt investments
Other debt investments
Long-term receivable 3912822.74 3805833.60
Long-term equity
investments 40599793.42 37924431.29
Other equity instrument
investments
Other non-current financial
assets
Investment property 7053153.92 8165805.31
127Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Fixed assets 9794453949.92 7730363778.82
Construction in progress 2171985301.79 2036326757.72
Productive biological assets
Oil & gas assets
Right-of-use assets 336584880.00 313254745.53
Intangible assets 1074511282.42 843866292.82
Including: data resources
Development expenditures
Goodwill 6785228.04
Long-term prepayments 200664440.75 118096436.09
Deferred tax assets 112698841.53 156432157.23
Other non-current assets 311120963.93 564023136.83
Total non-current assets 14053585430.42 11819044603.28
Total assets 36354748426.21 31890584773.41
Current liabilities:
Short-term borrowings 1553345651.16 1212150378.85
Central bank loans
Loans from other banks
Held-for-trading financial
liabilities 3500000.00
Derivative financial liabilities 79678118.93 10719110.02
Notes payable 3791834944.38 3416711594.64
Accounts payable 5985427008.79 4449940359.81
Advances received
Contract liabilities 49461722.83 51788802.03
Selling of repurchased
financial assets
Absorbing deposit and
interbank deposit
Deposit for agency security
transaction
Deposit for agency security
underwriting
Employee benefits payable 726001478.89 598801246.34
Taxes and rates payable 309874433.92 382396791.19
Other payables 545412160.30 250642662.86
Including: Interest
Payable 1894919.92
Dividends
Payable 2528280.00
Handling fee and
commission payable
Reinsurance accounts
payable
Liabilities classified as
held for sale
Non-current liabilities due
within one year 590993952.12 1440093253.93
Other current liabilities 1274402.83 2099986.27
Total current liabilities 13633303874.15 11818844185.94
Non-current liabilities:
Insurance policy reserve
Long-term borrowings 2045772594.73 1030801111.13
Bonds payable
Including: Preferred shares
128Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Perpetual bonds
Lease liabilities 237913009.51 221295481.86
Long-term payables 11290788.32
Long-term employee
benefits payable 33943063.56 39840362.77
Provisions
Deferred income 607754278.80 379140042.48
Deferred tax liabilities 258263974.78 307511069.30
Other non-current liabilities 18154107.25 18154107.25
Total non-current liabilities 3201801028.63 2008032963.11
Total liabilities 16835104902.78 13826877149.05
Equity:
Share capital 3732389535.00 3732615535.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 3271313277.48 3455643565.98
Less: Treasury shares 381847576.78 423468591.57
Other comprehensive income -138362653.48 114757064.28
Special reserve
Surplus reserve 1163964885.09 1011914243.67
General risk reserve
Undistributed profit 11650311639.17 10002942167.43
Total equity attributable to the
parent Company 19297769106.48 17894403984.79
Non-controlling interest 221874416.95 169303639.57
Total equity 19519643523.43 18063707624.36
Total liabilities & equity 36354748426.21 31890584773.41
Legal representative： Zhang Yabo Officer in charge of accounting： Yu Yingkui Head of accounting
department：Li Zhimi
2. Parent Company Balance Sheet
Unit: RMB
Items December 312024 January 1 2024
Current assets:
Cash and bank balances 1281822278.41 3755111885.56
Held-for-trading financial
assets
Derivative financial assets 6237202.48 1463100.00
Notes receivable 104502053.60 1293651597.02
Accounts receivable 1080382526.59 703445875.41
Receivables financing
Advances paid 8132127.70 7501313.44
Other receivables 543161883.89 2269591236.02
Including: Interest
Receivable
Dividends
Receivable 16559297.60 550000000.00
Inventories 1109270311.12 772429361.79
Including: data resources
Contract assets
Assets classified as held for
129Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
sale
Non-current assets due
within one year
Other current assets 1318633228.26
Total current assets 5452141612.05 8803194369.24
Non-current assets:
Debt investments
Other debt investments
Long-term receivable 665000.00 500000.00
Long-term equity investments 9156037051.42 8880133268.57
Other equity instrument
investments
Other non-current financial
assets
Investment property
Fixed assets 1697518019.23 1623330889.08
Construction in progress 54990106.41 53871265.08
Productive biological assets
Oil & gas assets
Right-of-use assets 4919723.92 9370623.95
Intangible assets 146685225.25 142130830.79
Including: data resources
Development expenditures
Including: data resources
Goodwill
Long-term prepayments 16084833.04 15876569.88
Deferred tax assets 5587256.35
Other non-current assets 65584943.61 99458254.31
Total non-current assets 11142484902.88 10830258958.01
Total assets 16594626514.93 19633453327.25
Current liabilities:
Short-term borrowings 632253710.78 202384500.02
Held-for-trading financial
liabilities
Derivative financial liabilities 446250.00
Notes payable 560444773.77 559657858.19
Accounts payable 1208365209.93 1465144230.80
Advances received
Contract liabilities 223624.17 121488.76
Employee benefits payable 164621089.24 127817926.77
Taxes and rates payable 19981753.25 112191203.17
Other payables 966447508.28 4315100068.76
Including: interest
payable
Dividends
Payable
Liabilities classified as held for
sale
Non-current liabilities due
within one year 502033323.64 1373267226.41
Other current liabilities
Total current liabilities 4054817243.06 8155684502.88
Non-current liabilities:
Long-term borrowings 2045772594.73 1030801111.13
Bonds payable
130Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Including: Preferred shares
Perpetual bonds
Lease liabilities 1718851.19 5571522.93
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 56310135.06 47332045.49
Deferred tax liabilities 40767922.43 81604566.52
Other non-current
liabilities
Total non-current liabilities 2144569503.41 1165309246.07
Total liabilities 6199386746.47 9320993748.95
Equity:
Share capital 3732389535.00 3732615535.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve 4171900229.57 4351276453.48
Less: treasury shares 381847576.78 423468591.57
Other comprehensive income
Special reserve
Surplus reserve 1035872712.77 883822071.35
Undistributed profit 1836924867.90 1768214110.04
Total equity 10395239768.46 10312459578.30
Total liabilities & equity 16594626514.93 19633453327.25
3. Consolidated Income Statement
Unit: RMB
Items Year 2024 Year 2023
I. Total operating revenue 27947164515.93 24557802066.59
Including: Operating revenue 27947164515.93 24557802066.59
Interest income
Premium earned
Revenue from handling
charges and commission
II. Total operating cost 24243018159.23 21011657641.34
Including: Operating cost 20269833554.48 17773858964.12
Interest expenses
Handling charges and
commission expenditures
Surrender value
Net payment of insurance
claims
Net provision of insurance
policy reserve
Premium bonus
expenditures
Reinsurance expenses
Taxes and surcharges 171276648.16 139816022.50
Selling expenses 726437231.46 597565638.25
Administrative expenses 1767454322.16 1476334172.35
R&D expenses 1351798786.50 1096834224.41
131Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Financial expenses -43782383.53 -72751380.29
Including: Interest expenses 161564080.95 212081658.78
Interest income 130315478.18 159145071.07
Add: Other income 229205925.38 188255263.06
Investment income (or less:
losses) -16279865.95 -131453928.62
Including: Investment
income from associates and joint 8925362.13 7986227.16
ventures
Gains from derecognition
of financial assets at amortized -5619589.87
cost
Gains on foreign
exchange (or less: losses)
Gains on net exposure to
hedging risk (or less: losses)
Gains on changes in fair
value (or less: losses) -90733609.50 48123522.34
Credit impairment loss (or
less: losses) -56378564.98 -51477741.58
Assets impairment loss
(or less: losses) -62921312.20 -55376891.25
Gains on asset disposal (or
less: losses) 3016317.77 8741208.41
III. Operating profit (or less:
losses) 3710055247.22 3552955857.61
Add: Non-operating revenue 9648962.88 14932933.39
Less: Non-operating
expenditures 28017800.98 14625298.02
IV. Profit before tax (or less: total
loss) 3691686409.12 3553263492.98
Less: Income tax expense 579960606.78 619548753.99
V. Net profit (or less: net loss) 3111725802.34 2933714738.99
(I) Categorized by the continuity
of operations
1. Net profit from continuing
operations (or less: net loss) 3111725802.34 2933714738.99
2. Net profit from
discontinued operations (or
less: net loss)
(II) Categorized by the portion of
equity ownership
1. Net profit attributable to
owners of parent Company (or 3099165128.06 2920992940.01
less: net loss)
2. Net profit attributable to
non-controlling shareholders 12560674.28 12721798.98
(or less: net loss)
VI. Other comprehensive income
after tax -253119717.76 123300112.61
Items attributable to the
owners of the parent Company -253119717.76 123300112.61
(I) Not to be reclassified
subsequently to profit or loss
1.Changes in remeasurement
on the net defined benefit plan
132Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2. Items under equity method
that will not be reclassified to
profit or loss
3. Changes in fair value of
other equity instrument
investments
4. Changes in fair value of
own credit risk
5. Others
(II) To be reclassified
subsequently to profit or loss -253119717.76 123300112.61
1. Items under equity method
that may be reclassified to
profit or loss
2. Changes in fair value of
other debt investments
3. Profit or loss from
reclassification of financial
assets into other
comprehensive income
4. Provision for credit
impairment of other debt
investments
5.Cash flow hedging reserve
6. Translation reserve -253119717.76 123300112.61
7. Others
Items attributable to non-
controlling shareholders
VII. Total comprehensive income 2858606084.58 3057014851.60
Items attributable to the
owners of the parent Company 2846045410.30 3044293052.62
Items attributable to non-
controlling shareholders 12560674.28 12721798.98
VIII. Earnings per share (EPS):
(I) Basic EPS (yuan per share) 0.84 0.81
(II) Diluted EPS (yuan per share) 0.84 0.81
In the case of a business combination under the same control in the current period the net profit realised by the
party to be combined before the combination was: 0.00 and the net profit realised by the party to be combined in
the previous period was: 0.00.Legal representative： Zhang Yabo Officer in charge of accounting： Yu Yingkui Head of accounting
department：Li Zhimi
4. Income Statement of the Parent Company
Unit: RMB
Items Year 2024 Year 2023
I. Operating revenue 6590535731.34 6035624442.65
Less: Operating cost 5161837637.19 4651458852.44
Taxes and surcharges 35607263.11 37243922.63
Selling expenses 58222787.21 36875004.17
Administrative expenses 360252325.38 298794306.84
R&D expenses 273559135.05 246667877.34
Financial expenses 17252826.25 45466484.33
Including: Interest expenses 82768255.52 156056944.56
133Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Interest income 67532514.63 111419579.71
Add: Other income 29370049.61 29311262.35
Investment income (or less:
losses) 1049000511.55 855697868.30
Including: Investment
income from associates and 7562029.89 6857976.74
joint ventures
Gains from derecognition of
financial assets at amortized
cost
(or less: losses)
Gains on net exposure to
hedging (or less: losses)
Gains on changes in fair
value (or less: losses) -722147.52 -2305364.33
Credit impairment loss (or
less: losses) -27079363.56 -10404792.17
Assets impairment loss (or
less: losses) -153699230.52 -58872.39
Gains on asset disposal (or
less: losses) 334426.86 780544.45
II. Operating profit (or less:
losses) 1581008003.57 1592138641.11
Add: Non-operating revenue 1356138.17 1573287.56
Less: Non-operating
expenditures 6955538.17 2946675.16
III. Profit before tax (or less:
total loss) 1575408603.57 1590765253.51
Less: Income tax expense 54902189.39 106853406.95
IV. Net profit (or less: net loss) 1520506414.18 1483911846.56
(I) Net profit from continuing
operations (or less: net loss) 1520506414.18 1483911846.56
(II) Net profit from discontinued
operations (or less: net loss)
V. Other comprehensive income
after tax
(I) Not to be reclassified
subsequently to profit or loss
1.Changes in remeasurement
on the net defined benefit
plan
2. Items under equity method
that will not be reclassified
to profit or loss
3. Changes in fair value of
other equity instrument
investments
4. Changes in fair value of
own credit risk
5. Others
(II) To be reclassified
subsequently to profit or loss
1. Items under equity method
that may be reclassified to
profit or loss
2. Changes in fair value of
134Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
other debt investments
3. Profit or loss from
reclassification of financial
assets into other
comprehensive income
4. Provision for credit
impairment of other debt
investments
5. Cash flow hedging reserve
(profit or loss on cash flow
hedging)
6. Translation reserve
7. Others
VI. Total comprehensive
income 1520506414.18 1483911846.56
VII. Earnings per share (EPS):
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per
share)
5. Consolidated Cash Flow Statement
Unit: RMB
Items Year 2024 Year 2023
I. Cash flows from operating
activities:
Cash receipts from sale of goods or
rendering of services 28102746002.07 24566452573.26
Net increase of client deposit and
interbank deposit
Net increase of central bank loans
Net increase of loans from other
financial institutions
Cash receipts from original
insurance contract premium
Net cash receipts 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 increase of repurchase
Net cash receipts from agency
security transaction
Receipts of tax refund 502177487.14 484789623.62
Other cash receipts related to
operating activities 582900691.72 339834145.05
Subtotal of cash inflows from
operating activities 29187824180.93 25391076341.93
Cash payments for goods
purchased and services received 18892533307.65 16770167910.97
Net increase of loans and advances
to clients
Net increase of central bank
deposit and interbank deposit
135Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Cash payments for insurance
indemnities of original insurance
contracts
Net increase of loans to others
Cash payments for interest
handling charges and commission
Cash payments for policy bonus
Cash paid to and on behalf of
employees 4119702971.29 3528344941.32
Cash payments for taxes and rates 1057640501.87 717979563.06
Other cash payments related to
operating activities 751316451.76 650619571.95
Subtotal of cash outflows from
operating activities 24821193232.57 21667111987.30
Net cash flows from operating
activities 4366630948.36 3723964354.63
II. Cash flows from investing
activities:
Cash receipts from withdrawal of
investments
Cash receipts from investment
income 13272483.08 2671131.50
Net cash receipts from the disposal
of fixed assets intangible assets and 109300264.22 591067618.05
other long-term assets
Net cash receipts from the disposal
of subsidiaries & other business units
Other cash receipts related to
investing activities 3914970182.10 1101747550.91
Subtotal of cash inflows from
investing activities 4037542929.40 1695486300.46
Cash payments for the acquisition
of fixed assets intangible assets and 3290148187.49 2745462227.77
other long-term assets
Cash payments for investments 3500000.00 3500000.00
Net increase of pledged
borrowings
Net cash payments for the
acquisition of subsidiaries & other 6881953.25
business units
Other cash payments related to
investing activities 4248549873.64 155803826.18
Subtotal of cash outflows from
investing activities 7549080014.38 2904766053.95
Net cash flows from investing
activities -3511537084.98 -1209279753.49
III. Cash flows from financing
activities:
Cash receipts from absorbing
investments 337374745.03 7090938.20
Including: Cash received by
subsidiaries from non-controlling 44682245.03 7090938.20
shareholders as investments
Cash receipts from borrowings 2368662378.85 1567786939.45
Other cash receipts related to
financing activities 62339375.64 31874512.08
136Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Subtotal of cash inflows from
financing activities 2768376499.52 1606752389.73
Cash payments for the repayment
of borrowings 1852948800.00 1308452644.96
Cash payments for distribution of
dividends or profits and for interest 1444616011.10 1066830039.62
expenses
Including: Cash paid by
subsidiaries to non-controlling 13000000.00 25692386.09
shareholders as dividend or profit
Other cash payments related to
financing activities 426111230.39 323319993.66
Subtotal of cash outflows from
financing activities 3723676041.49 2698602678.24
Net cash flows from financing
activities -955299541.97 -1091850288.51
IV. Effect of foreign exchange rate
changes on cash & cash equivalents -81247330.35 151792584.44
V. Net increase in cash and cash
equivalents -181453008.94 1574626897.07
Add: Opening balance of cash and
cash equivalents 3624955498.84 2050328601.77
VI. Closing balance of cash and cash
equivalents 3443502489.90 3624955498.84
6. Cash Flow Statement of the Parent Company
Unit: RMB
Items Year 2024 Year 2023
I. Cash flows from operating activities:
Cash receipts from sale of goods and
rendering of services 6923046726.29 5249148595.56
Receipts of tax refund 85847294.72 97118035.37
Other cash receipts related to
operating activities 64162955.90 93644650.81
Subtotal of cash inflows from
operating activities 7073056976.91 5439911281.74
Cash payments for goods purchased
and services received 5015189649.44 3843328325.84
Cash paid to and on behalf of
employees 668247457.78 555364759.84
Cash payments for taxes and rates 221432990.78 131083648.39
Other cash payments related to
operating activities 132370987.20 107109355.87
Subtotal of cash outflows from
operating activities 6037241085.20 4636886089.94
Net cash flows from operating
activities 1035815891.71 803025191.80
II. Cash flows from investing
activities:
Cash receipts from withdrawal of
investments
Cash receipts from investment
income 1572716699.35 296264902.08
Net cash receipts from the disposal 5141819.84 100682940.02
137Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
of fixed assets intangible assets and
other long-term assets
Net cash receipts from the disposal
of subsidiaries & other business units
Other cash receipts related to
investing activities 3006559541.99 907825506.19
Subtotal of cash inflows from investing
activities 4584418061.18 1304773348.29
Cash payments for the acquisition of
fixed assets intangible assets and other 275180043.01 298167575.30
long-term assets
Cash payments for investments 1329444721.10 249714910.39
Net cash payments for the
acquisition of subsidiaries & other
business units
Other cash payments related to
investing activities 2155706864.14 1436710655.47
Subtotal of cash outflows from
investing activities 3760331628.25 1984593141.16
Net cash flows from investing
activities 824086432.93 -679819792.87
III. Cash flows from financing
activities:
Cash receipts from absorbing
investments 292692500.00
Cash receipts from borrowings 2080000000.00 800000000.00
Other cash receipts related to
financing activities 552544536.00 2237929883.41
Subtotal of cash inflows from
financing activities 2925237036.00 3037929883.41
Cash payments for the repayment of
borrowings 1506000000.00 540733987.38
Cash payments for distribution of
dividends or profits and for interest 1384521151.06 979392786.32
expenses
Other cash payments related to
financing activities 3483297215.06 844479220.53
Subtotal of cash outflows from
financing activities 6373818366.12 2364605994.23
Net cash flows from financing
activities -3448581330.12 673323889.18
IV. Effect of foreign exchange rate
changes on cash and cash equivalents
V. Net increase in cash and cash
equivalents -1588679005.48 796529288.11
Add: Opening balance of cash and
cash equivalents 1793207457.49 996678169.38
VI. Closing balance of cash and cash
equivalents 204528452.01 1793207457.49
7. Consolidated Statement of Changes in Owners' Equity
Amount of this period
138Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Unit: RMB
Year 2024
Equity Attributable to parent Company
Other equity Gen Non-
Items Share instruments Other Spe
Capita Prefe Perpe Capital
Less:
treasury compreh cial Surplus
eral Undistrib Oth controlli Total equity
l rred tual Oth reserve shares ensive rese reserve
risk uted Subtotal ng
share bond ers income rve reser profit
ers interest
s s ve
I. Balance at 37326
the end of 15535. 3455643 4234685 1147570 1011914 10002942 17894403 1693036 18063707624
prior year 00
565.9891.5764.28243.67167.43984.7939.57.36
Add:
Cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
II. Balance at 37326
the beginning 15535. 3455643 4234685 1147570 1011914 10002942 17894403 1693036 18063707624
00 565.98 91.57 64.28 243.67 167.43 984.79 39.57 .36of current year
III. Current
period - - - -22600 18433028 4162101 2531197 1520506 1647369 14033651 5257077 1455935899.increase (or 0.00 8.50 4.79 17.76 41.42 471.74 21.69 7.38 07
less: decrease)
(I) Total -
comprehensiv 2531197 3099165 28460454 1256067 2858606084.
17.76 128.06 10.30 4.28 58e income
(II) Capital
contributed or - - - -
withdrawn by 22600 17962822 4162101 138233210
5083631
9.83-87396890.610.005.234.79.44
owners
1. Ordinary - - 5083631 50836319.83
139Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
shares 28497040 2849704 9.83
contributed by 0.00 00.00
owners
2. Capital
contributed by
holders of
other equity
instruments
3. Amount of
share-based
payment 10907057 1090705733.06 .06 109070573.06
included in
equity
---
4. Others 22600 3728398. 2433493 -
0.002985.21
247303783.50247303783.50
(III) Profit 1520506 - - - -
distribution 41.42 1451795 12997450 1552828 1315273294.656.32 14.90 0.00 90
1.
Appropriation 1520506 -
of surplus 41.42 152050641.42
reserve
2.
Appropriation
of general risk
reserve
3.
Appropriation - - - -
of profit to 1299745 12997450 1552828 1315273294.014.90 14.90 0.00 90
owners
4. Others
(IV) Internal
carry-over
within equity
1. Transfer of
capital reserve
to capital
140Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2. Transfer of
surplus
reserve to
capital
3. Surplus
reserve to
cover losses
4. Changes in
defined
benefit plan
carried over to
retained
earnings
5. Other
comprehensiv
e income
carried over to
retained
earnings
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
--
(VI) Others 4702063. 4702063.2 4702063.
27727
IV. Balance at 37323
the end of 89535. 3271313 3818475
-
138362611639641165031119297769221874419519643523
00 277.48 76.78 53.48 885.09 639.17 106.48 16.95 .43current period
Amount of Previous Period
141Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Unit: RMB
Year 2023
Equity Attributable to parent Company
Items Sha
Other equity instruments Other Spe Gen Non-
re Prefe Perprred etual Capital
Less: eral controlling Total equity
Cap Others reserve treasury
compreh cial Surplus risk Undistributed Oth
ensive rese reserve profit ers Subtotal interest
ital share bond shares
reser
income rve ves s
I. Balance at 359 -
the end of 086 4095449 2826026 3300229 8635230 8133336 129413104 1779897 131193008543048.prior year 946 70.41 95.98 75.53 59.01 242.88 09.42 81.40 190.82335.00
Add:
Cumulative
changes of
accounting
policies
Error
correction of
prior period
Others
II. Balance at 359
the beginning -086 4095449 2826026 3300229 8635230 8133336 129413104 1779897 13119300
of current 8543048.946 70.41 95.98 75.53 59.01 242.88 09.42 81.40 190.82
year 335.00
III. Current 141
period - -746 3173040 9344561 1233001 1483911 1869605 495309357 49444074
increase (or 4095449 8686141070. 870.00 6.04 12.61 84.66 924.55 5.37 33.54
less: decrease) 70.41 .8300
(I) Total
comprehensiv 1233001 2920992 304429305 1272179 30570148
e income 12.61 940.01 2.62 8.98 51.60
(II) Capital 141
contributed or -746 3173040 9344561 281179635 4284445 28160807
withdrawn by 4095449070. 870.00 6.04 3.55 .28 98.83
owners 70.4100
1. Ordinary 7090938 7090938.2
142Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
shares .20 0
contributed by
owners
2. Capital
contributed by 141 -
holders of 926 3104716 283709821 283709824095449
other equity 470. 711.55 1.14 11.1470.41
instruments 00
3. Amount of
share-based
payment 6971651 69716518.4 69716518.included in 8.45 5 45
equity
-
----
4. Others 180 93445611392360 95018376.0 2806492 97824868.400. 6.04.004.9296
00
(III) Profit - - - -1483911
distribution 1051387 902995830. 2569238 92868821684.66 015.46 80 6.09 .89
1.
Appropriation -1483911
of surplus 1483911884.66
reserve 4.66
2.
Appropriation
of general risk
reserve
3.
Appropriation - - - -
of profit to 90299583 902995830. 2569238 928688216
owners 0.80 80 6.09 .89
4. Others
(IV) Internal
carry-over
within equity
1. Transfer of
capital reserve
143Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
to capital
2. Transfer of
surplus
reserve to
capital
3. Surplus
reserve to
cover losses
4. Changes in
defined
benefit plan
carried over to
retained
earnings
5. Other
comprehensiv
e income
carried over to
retained
earnings
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
(VI) Others
IV. Balance at 373
the end of 261 3455643 4234685 1147570 1011914 10002942 178944039 1693036 180637070.00
current period 553 565.98 91.57 64.28 243.67 167.43 84.79 39.57 624.365.00
144Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
8. Statement of Changes in Owners' Equity of the Parent Company
Amount of this period
Unit: RMB
Year 2024
Other equity instruments Less: Other SpecItems Share Prefer Perpet Capital comprehen ial Surplus Undistribute Othe
Capital red ual Others reserve treasury sive reser reserve d profit rs Total equity
shares bonds shares income ve
I. Balance at the
end of prior 373261 4351276453. 423468591. 883822071. 1768214110. 10312459578
year 5535.00 48 57 35 04 .30
Add:
Cumulative
changes of
accounting
policies
Error correction
of prior period
Others
II. Balance at
the beginning of 373261 4351276453. 423468591. 883822071. 1768214110. 10312459578
current year 5535.00 48 57 35 04 .30
III. Current
period increase - - - 152050641.(or less: 226000. 179376223.9 41621014.7 68710757.86 82780190.1642
decrease) 00 1 9
(I) Total
comprehensive 1520506414. 1520506414.income 18 18
(II) Capital
contributed or - - - -
withdrawn by 226000. 179376223.9 41621014.7 137981209.12
owners 00 1 9
1. Ordinary - -
shares 284970400.0 284970400.0 00
145Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
contributed by
owners
2. Capital
contributed by
holders of other
equity
instruments
3. Amount of
share-based
payment 109070573.0 109070573.06
included in 6
equity
-
4. Others 243349385. -226000. -3476396.97 21 247051782.18
00
(III) Profit - -152050641.distribution 1451795656. 1299745014.42 32 90
1.
Appropriation 152050641. -
of surplus 42 152050641.42
reserve
2.
Appropriation - -
of profit to 1299745014. 1299745014.owners 90 90
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
146Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
losses
4. Changes in
defined benefit
plan carried
over to retained
earnings
5. Other
comprehensive
income carried
over to retained
earnings
6. Others
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
(VI) Others
IV. Balance at
the end of 373238 4171900229. 381847576. 103587271 1836924867. 10395239768
current period 9535.00 57 78 2.77 90 .46
Amount of Previous Period
Unit: RMB
Year 2023
Other equity instruments Other Spec
Items Share Preferr Perpet Capital Less:treasury comprehen ial Surplus Undistribute OtheCapital ed ual Others reserve shares sive reser reserve d profit rs
Total equity
shares bonds income ve
I. Balance at
the end of 3590869 409544970. 1180826355. 330022975. 735430886. 1335689278. 6922337980.prior year 465.00 41 13 53 69 94 64
Add:
Cumulative
147Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
changes of
accounting
policies
Error
correction of
prior period
Others
II. Balance at
the beginning 3590869 409544970. 1180826355. 330022975. 735430886. 1335689278. 6922337980.of current 465.00 41 13 53 69 94 64
year
III. Current
period -14174607 3170450098. 93445616.0 148391184. 432524831.1 3390121597.increase (or 409544970.0.00 35 4 66 0 66
less: decrease) 41
(I) Total
comprehensiv 1483911846. 1483911846.e income 56 56
(II) Capital
contributed or -14174607 3170450098. 93445616.0 2809205581.withdrawn by 409544970.0.00 35 4 90
owners 41
1. Ordinary
shares
contributed by
owners
2. Capital
contributed by -
holders of 14192647 3104716711. 2837098211.409544970.other equity 0.00 55 1441
instruments
3. Amount of
share-based
payment 67125746.80 67125746.80
included in
equity
4. Others - 93445616.0-1392360.00 -95018376.04180400.00 4
148Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
(III) Profit -148391184. -
distribution 1051387015.66 902995830.8046
1.
Appropriation -148391184.of surplus 148391184.666
reserve 6
2.
Appropriation - -
of profit to 902995830.8 902995830.80
owners 0
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. Changes in
defined
benefit plan
carried over to
retained
earnings
5. Other
comprehensiv
e income
carried over to
retained
earnings
6. Others
149Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
(V) Special
reserve
1.
Appropriation
of current
period
2. Application
of current
period
(VI) Others
IV. Balance at
the end of 3732615 4351276453. 423468591. 883822071. 1768214110. 10312459578
current period 535.00 48 57 35 04 .30
150Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
III. Company profile
The Company was established by the original Sanhua Fuji Koki Co. Ltd. The Company currently holds a
business license with a unified social credit code of 913300006096907427 registered and issued by Zhejiang
Administration of Industry and Commerce with headquarter in Shaoxing City Zhejiang Province. The registered
capital of 3732389535.00 yuan total share of 3732389535 shares (each with par value of one yuan). The
Company’s shares were listed at Shenzhen Stock Exchange.The Company operates in the machinery manufacturing industry main business activities include research
and development production and sales of refrigeration and air-conditioning appliances and automotive
components.The financial statements were approved by the thirty-first meeting of the seventh Board of Directors of the
Company on 25 March 2025 for external reporting.
151Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements have been prepared on the basis of going concern.
2. Going concern
The Company has no events or conditions that may cast significant doubts upon the Company’s ability to
continue as a going concern within the 12 months after the balance sheet date.V. Significant accounting policies and estimates
Tips on specific accounting policies and accounting estimates:
Important Tip: the Company has set up accounting policies and estimates on transactions or events such as
impairment of financial instruments inventories depreciation of fixed assets construction in progress
intangible assets revenue recognition share-based paymentetc. based on the Company’s actual production and
operation features.
1.Statement of compliance with China Accounting Standards for Business Enterprises
The financial statements have been prepared in accordance with the requirements of China Accounting
Standards for Business Enterprises (CASBEs) and present truly and completely the financial position results of
operations and cash flows of the Company.
2.Accounting period
The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.
3. Operating cycle
The Company has a relatively short operating cycle for its business an asset or a liability is classified as
current if it is expected to be realized or due within 12 months.
4. Functional currency
The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan while the
functional currency of subsidiaries engaged in overseas operations including SANHUA AWECO Appliance
Systems GmbH、Sanhua International Inc etc. is the currency of the primary economic environment in which
they operate.
5. Determination method and basis for selection of materiality
√ Applicable □Not Applicable
152Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Disclosed items involving materiality judgements Materiality criteria
Individual accruals accounting for more than 5% of
Significant accounts receivable with provision for bad the total bad debt provision for all types of accounts
debts made on an individual basis receivable and amounting to more than 30 million
yuan are considered significant.Individual accruals accounting for 5% or more of the
Significant other receivables with provision for bad total bad debt provision for each category of other
debts made on an individual basis receivables and amounting to more than 20 million
yuan are considered significant.Significant construction in progress The budget for a single project is more than 500million yuan.A single investing activity that accounts for more than
5% of the total cash inflows or outflows related to the
Significant cash flows from investing activities receipt or disbursement of cash related to investing
activities and is greater than 50 million yuan is
considered to be significant.Subsidiaries with total assets/total revenue/profit
Significant subsidiaries not wholly-owned before tax in excess of 15% of the group’s total
subsidiaries assets/total revenue/profit before tax are identified assignificant subsidiaries/significant not wholly-owned
subsidiaries.Significant joint ventures associates and joint Joint ventures or associates with total assets exceeding
operations 1 billion yuan are considered significant.Significant commitments Project matters in which the Company is involved infundraising are considered significant.Significant events subsequent to the balance sheet date Distribution of profit after the balance sheet datesignificant financing etc.
6. Accounting treatments of business combination under and not under common control
1. Accounting treatment of business combination under common control
Assets and liabilities arising from business combination are measured at carrying amount of the combined
party included in the consolidated financial statements of the ultimate controlling party at the combination date.Difference between carrying amount of the equity of the combined party included in the consolidated financial
statements of the ultimate controlling party and that of the combination consideration or total par value of
shares issued is adjusted to capital reserve if the balance of capital reserve is insufficient to offset any excess is
adjusted to retained earnings.
2. Accounting treatment of business combination not under common control
When combination cost is in excess of the fair value share of identifiable net assets obtained from the
acquiree at the acquisition date the excess is recognized as goodwill; If the combination cost is less than the fair
value share of identifiable net assets obtained from the acquiree the fair value of the identifiable assets
liabilities and contingent liabilities obtained from the acquiree as well as the measurement of the combination
cost need to be reviewed at first. After review if the combination cost is still less than the fair value share of
the identifiable net assets obtained from the acquiree the difference is recognized in profit or loss.
7. Judgement criteria for control and compilation method of consolidated financial statements
1.Judgement of control
153Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Having the power over the invested party enjoying variable returns through participating in related activities
of the invested party and having the ability to use the power over the invested party to influence its variable
return amount is recognized as control.
2. Compilation method of consolidated financial statements
The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidatedfinancial statements are compiled by the parent company according to “CASBE 33 – Consolidated FinancialStatements” based on relevant information and the financial statements of the parent company and its subsidiaries.
8. Recognition criteria of cash and cash equivalents
Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash
equivalents refer to short-term highly liquid investments that can be readily converted to cash and that are
subject to an insignificant risk of changes in value.
9. Foreign currency translation
1. Translation of transactions denominated in foreign currency
Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate or
the approximate exchange rate similar to the spot exchange rate at the transaction date at initial recognition. At
the balance sheet date monetary items denominated in foreign currency are translated at the spot exchange rate
at the balance sheet date with difference except for those arising from the principal and interest of exclusive
borrowings eligible for capitalization included in profit or loss; non-cash items carried at historical costs are
translated at the spot exchange rate at the transaction date with its RMB amount unchanged; non-cash items
carried at fair value in foreign currency are translated at the spot exchange rate at the date when the fair value
was determined with difference included in profit or loss or other comprehensive income.
2. Translation of financial statements measured in foreign currency
The assets and liabilities in the balance sheet are translated at the spot rate at the balance sheet date; the
equity items other than undistributed profit are translated at the spot rate at the transaction date; the revenues
and expenses in the income statement are translated at the approximate exchange rate similar to the
systematically and rationally determined spot exchange rate at the transaction date. The difference arising from
foreign currency translation is included in other comprehensive income.
10．Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the following three categories when initially recognized: (1) financial
assets at amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial
assets at fair value through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: (1) financial
liabilities at fair value through profit or loss; (2) financial liabilities that arise when a transfer of a financial asset
does not qualify for derecognition or when the continuing involvement approach applies; (3) financial guarantee
contracts not fall within the above categories (1) and (2) and commitments to provide a loan at a below-market
interest rate which do not fall within the above category (1); (4) financial liabilities at amortized cost.
2. Recognition criteria measurement method and derecognition condition of financial assets and financial
liabilities
154Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
(1) Recognition criteria and measurement method of financial assets and financial liabilities
When the Company becomes a party to a financial instrument it is recognized as a financial asset or
financial liability. The financial assets and financial liabilities initially recognized by the Company are
measured at fair value; for the financial assets and liabilities at fair value through profit or loss the transaction
expenses thereof are directly included in profit or loss; for other categories of financial assets and financial
liabilities the transaction expenses thereof are included into the initially recognized amount. However at initial
recognition for accounts receivable that do not contain a significant financing component or in circumstances
where the Company does not consider the financing components in contracts within one year the Company
measures the transaction price in accordance with “CASBE 14 – Revenues”.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized costs
The Company measures its financial assets at the amortized costs using effective interest method. Gains or
losses on financial assets that are measured at amortized cost and are not part of hedging relationships shall be
included into profit or loss when the financial assets are derecognized reclassified through the amortization
process or in order to recognize impairment gains or losses.
2) Debt instrument investments at fair value through other comprehensive income
The Company measures its debt instrument investments at fair value. Interests impairment losses or gains
and gains and losses on foreign exchange that calculated using effective interest method shall be included into
profit or loss while other gains or losses are included into other comprehensive income. Accumulated gains or
losses that initially recognized as other comprehensive income should be transferred out into profit or loss when
the financial assets are derecognized.
3) Equity instrument investments at fair value through other comprehensive income
The Company measures its equity instrument investments at fair value. Dividends obtained (other than
those as part of investment cost recovery) shall be included into profit or loss while other gains or losses are
included into other comprehensive income. Accumulated gains or losses that initially recognized as other
comprehensive income should be transferred out into retained earnings when the financial assets are
derecognized.
4) Financial assets at fair value through profit or loss
The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value
(including interests and dividends) shall be included into profit or loss except for financial assets that are part
of hedging relationships.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities
(including derivatives that are liabilities) and financial liabilities designated as at fair value through profit or
loss. The Company measures such kind of liabilities at fair value. The amount of changes in the fair value of the
financial liabilities that are attributable to changes in the Company’s own credit risk shall be included into other
comprehensive income unless such treatment would create or enlarge accounting mismatches in profit or loss.Other gains or losses on those financial liabilities (including interests changes in fair value that are attributable
to reasons other than changes in the Company’s own credit risk) shall be included into profit or loss except for
financial liabilities that are part of hedging relationships. Accumulated gains or losses that originally recognized
as other comprehensive income should be transferred out into retained earnings when the financial liabilities are
derecognized.
2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or
155Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
when the continuing involvement approach appliesThe Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of FinancialAssets”.
3) Financial guarantee contracts not fall within the above categories 1) and 2) and commitments to provide
a loan at a below-market interest rate which do not fall within the above category 1)
The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in
accordance with impairment requirements of financial instruments; b. the amount initially recognized less the
amount of accumulated amortization recognized in accordance with “CASBE 14 – Revenues”.
4) Financial liabilities at amortized cost
The Company measures its financial liabilities at amortized cost using effective interest method. Gains or
losses on financial liabilities that are measured at amortized cost and are not part of hedging relationships shall
be included into profit or loss when the financial liabilities are derecognized and amortized using effective
interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
a. the contractual rights to the cash flows from the financial assets expire;
b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with
“CASBE 23 – Transfer of Financial Assets”.
2) Only when the underlying present obligations of a financial liability are relieved totally or partly may
the financial liability be derecognized accordingly.
3. Recognition criteria and measurement method of financial assets transfer
Where the Company has transferred substantially all of the risks and rewards related to the ownership of
the financial asset it derecognizes the financial asset and any right or liability arising from such transfer is
recognized independently as an asset or a liability. If it retained substantially all of the risks and rewards related
to the ownership of the financial asset it continues recognizing the financial asset. Where the Company does
not transfer or retain substantially all of the risks and rewards related to the ownership of a financial asset it is
dealt with according to the circumstances as follows respectively: (1) if the Company does not retain its control
over the financial asset it derecognizes the financial asset and any right or liability arising from such transfer is
recognized independently as an asset or a liability; (2) if the Company retains its control over the financial asset
according to the extent of its continuing involvement in the transferred financial asset it recognizes the related
financial asset and recognizes the relevant liability accordingly.If the transfer of an entire financial asset satisfies the conditions for derecognition the difference between
the amounts of the following two items is included in profit or loss: (1) the carrying amount of the transferred
financial asset as of the date of derecognition; (2) the sum of consideration received from the transfer of the
financial asset and the accumulative amount of the changes of the fair value originally included in other
comprehensive income proportionate to the transferred financial asset (financial assets transferred refer to debt
instrument investments at fair value through other comprehensive income). If the transfer of financial asset
partially satisfies the conditions to derecognition the entire carrying amount of the transferred financial asset is
between the portion which is derecognized and the portion which is not apportioned according to their
respective relative fair value and the difference between the amounts of the following two items is included
into profit or loss: (1) the carrying amount of the portion which is derecognized; (2) the sum of consideration of
the portion which is derecognized and the portion of the accumulative amount of the changes in the fair value
originally included in other comprehensive income which is corresponding to the portion which is derecognized
(financial assets transferred refer to debt instrument investments at fair value through other comprehensive
156Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
income).
4. Fair value determination method of financial assets and liabilities
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient
data and information are available to measure fair value. The inputs to valuation techniques used to measure fair
value are arranged in the following hierarchy and used accordingly:
(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the
Company can access at the measurement date.
(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the
asset or liability either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or
liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not
active; inputs other than quoted prices that are observable for the asset or liability for example interest rates
and yield curves observable at commonly quoted intervals; market-corroborated inputs;
(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that
is not observable and cannot be corroborated by observable market data at commonly quoted intervals
historical volatility future cash flows to be paid to fulfill the disposal obligation assumed in business
combination financial forecast developed using the Company’s own data etc.
5. Impairment of financial instruments
The Company on the basis of expected credit loss recognizes loss allowances of financial assets at
amortized cost debt instrument investments at fair value through other comprehensive income contract assets
leases receivable loan commitments other than financial liabilities at fair value through profit or loss financial
guarantee contracts not belong to financial liabilities at fair value through profit or loss or financial liabilities
that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing
involvement approach applies.Expected credit losses refer to the weighted average of credit losses with the respective risks of a default
occurring as the weights. Credit loss refers to the difference between all contractual cash flows that are due to
the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all
cash shortfalls) discounted at the original effective interest rate. Among which purchased or originated credit-
impaired financial assets are discounted at the credit-adjusted effective interest rate.At the balance sheet date the Company shall only recognize the cumulative changes in the lifetime
expected credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired
financial assets.For leases receivable and accounts receivable and contract assets resulting from transactions regulated in
“CASBE 14 – Revenues” the Company chooses simplified approach to measure the loss allowance at an
amount equal to lifetime expected credit losses.For financial assets other than the above on each balance sheet date the Company shall assess whether the
credit risk on the financial instrument has increased significantly since initial recognition. The Company shall
measure the loss allowance for the financial instrument at an amount equal to the lifetime expected credit losses
if the credit risk on that financial instrument has increased significantly since initial recognition; otherwise the
Company shall measure the loss allowance for that financial instrument at an amount equal to 12-month
expected credit loss.Considering reasonable and supportable forward-looking information the Company compares the risk of a
default occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on
the financial instrument as at the date of initial recognition so as to assess whether the credit risk on the
financial instrument has increased significantly since initial recognition.
157Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
The Company may assume that the credit risk on a financial instrument has not increased significantly
since initial recognition if the financial instrument is determined to have relatively low credit risk at the balance
sheet date.The Company shall estimate expected credit risk and measure expected credit losses on an individual or a
collective basis. When the Company adopts the collective basis financial instruments are grouped with similar
credit risk features.The Company shall remeasure expected credit loss on each balance sheet date and increased or reversed
amounts of loss allowance arising therefrom shall be included into profit or loss as impairment losses or gains.For a financial asset measured at amortized cost the loss allowance reduces the carrying amount of such
financial asset presented in the balance sheet; for a debt investment measured at fair value through other
comprehensive income the loss allowance shall be recognized in other comprehensive income and shall not
reduce the carrying amount of such financial asset.
6. Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not offset.However the Company offsets a financial asset and a financial liability and presents the net amount in the
balance sheet when and only when the Company: (1) currently has a legally enforceable right to set off the
recognized amounts; and (2) intends either to settle on a net basis or to realize the asset and settle the liability
simultaneously.For a transfer of a financial asset that does not qualify for derecognition the Company does not offset the
transferred asset and the associated liability.
11.Recognition criteria and accrual method for expected credit losses of receivables
1. Receivables with expected credit losses measured on a collective basis using similar credit risk features
Basis for
Categories determination of Method for measuring expected credit loss
portfolio
Notes receivable-Bank
acceptance receivable Based on historical credit loss experience the current
Notes receivable -Trade situation and the forecast of future economic conditions
acceptance receivable Type of notes the Company calculates expected credit loss throughexposure at default and lifetime expected credit loss
Notes receivable -finance rate.company
Credit risk Based on historical credit loss experience the current
Accounts receivable – characteristics such as situation and the forecast of future economic conditions
Portfolio grouped with aging account aging and the Company prepares the comparison table of accountscustomer segment receivable ages and lifetime expected credit loss rate
dimensions so as to calculate expected credit loss.Based on historical credit loss experience the current
Other receivable – Portfolio situation and the forecast of future economic conditions
grouped with aging Aging the Company prepares the comparison table of otherreceivable ages and lifetime expected credit loss rate
so as to calculate expected credit loss.
2.Accounts receivable – comparison table of aging and lifetime expected credit loss rate of portfolio
grouped with aging.Aging Expected credit loss rate (%)
Within 1 year 5%
1-2 years 10%
2-3 years 30%
158Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Aging Expected credit loss rate (%)
Over 3 years 50%
Aging of accounts receivable/other receivables/… are calculated from the month when such receivables
are accrued.
3.Recognition criteria for receivables and contract assets with expected credit losses measured on an
individual basis
For receivables and contract assets whose credit risk is significantly different from that of portfolios the
Company accrues expected credit losses on an individual basis.
12．Inventories
1. Classification of inventories
Inventories include finished goods or goods held for sale in the ordinary course of business work in process
in the process of production materials or supplies etc. to be consumed in the production process or in the
rendering of services.
2. Accounting method for dispatching inventories
Inventories dispatched from storage are accounted for with weighted average method or specific
identification method at the end of each month.
3. Inventory system
The perpetual inventory system is adopted.
4. Amortization method of low-value consumables and packages
Low-value consumables and packages are amortized with one-off method at the time of purchase or receipt.
5. Provisions for inventory write-down
At the balance sheet date inventories are measured at the lower of cost or net realizable value; provisions for
inventory write-down are made on the excess of its cost over the net realizable value.
13．Long-term equity investments
1. Judgment of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing control. Significant
influence is the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control of these policies.
2. Determination of investment cost
(1) For business combination under common control if the consideration of the combining party is that it
makes payment in cash transfers non-cash assets assumes its liabilities or issues equity securities on the date of
combination it regards the share of the carrying amount of the equity of the combined party included the
consolidated financial statements of the ultimate controlling party as the initial cost of the investment. The
difference between the initial cost of the long-term equity investments and the carrying amount of the combination
consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is
insufficient to offset any excess is adjusted to retained earnings.
(2) For business combination not under common control investment cost is initially recognized at the
acquisition-date fair value of considerations paid.
159Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
(3) Long-term equity investments obtained through ways other than business combination the initial cost of
a long-term equity investment obtained by making payment in cash is the purchase cost which is actually paid.
3. Subsequent measurement and recognition method of profit or loss
For long-term equity investments with control relationship it is accounted for with cost method; for long-
term equity investments of associated enterprises and cooperative enterprises it is accounted for with equity
method.
14.Investment property
1. Investment property includes leased buildings etc.
2. The initial measurement of investment property is based on its cost and subsequent measurement is
made using the cost model the depreciation or amortization method is the same as that of fixed assets and
intangible assets.
15. Fixed assets
（1）Recognition principles of fixed assets
Fixed assets are tangible assets held for use in the production of goods or rendering of services for rental to
others or for administrative purposes and expected to be used during more than one accounting year. Fixed
assets are recognized if and only if it is probable that future economic benefits associated with the assets will
flow to the Company and the cost of the assets can be measured reliably.
（2）Depreciation method of different categories of fixed assets
Categories Depreciation Useful life (years) Estimated residual Annual depreciationmethod value proportion (%) rate (%)
Buildings and Straight-line
structures method 30 0 3.33
Machinery and Straight-line
equipment method 5-10 0-5 9.50～19.00
Vehicle Straight-linemethod 10 5 9.5
Office equipment Straight-line
and others method 5 0 20.00
16．Construction in progress
1. Construction in progress is recognized if and only if it is probable that future economic benefits
associated with the item will flow to the Company and the cost of the item can be measured reliably.Construction in progress is measured at the actual cost incurred to reach its designed usable conditions.
2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed
usable conditions. When the auditing of the construction in progress was not finished while reaching the designed
usable conditions it is transferred to fixed assets using estimated value first and then adjusted accordingly when
the actual cost is settled but the accumulated depreciation is not to be adjusted retrospectively.
160Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Categories Standards and time point of transferring construction in progress to fixed assets
Machinery After installation and commissioning it meets the standard of production
Houses and buildings After installation and commissioning the construction is completed and accepted tomeet the commissioning standards
17．Borrowing costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and
construction or production of assets eligible for capitalization it is capitalized and included in the costs of relevant
assets; other borrowing costs are recognized as expenses on the basis of the actual amount incurred and are
included in profit or loss.
18. Intangible assets
1.Intangible assets include land use right land ownership application software and intellectual property etc.
The initial measurement of intangible assets is based on its cost.
2. For intangible assets with finite useful lives their amortization amounts are amortized within their
useful lives systematically and reasonably if it is unable to determine the expected realization pattern reliably
intangible assets are amortized by the straight-line method with details .as follows:
Items Useful life and determination basis Amortization method
Land use rights fifty yearsContractual service life Straight-line method
Application software 1-4Useful life Straight-line method
Intellectual property 5-10Useful life Straight-line method
Intangible assets with indefinite useful life are not amortized but their useful life is reviewed annually. The
indefinite land ownership held by overseas subsidiaries abroad is not amortized due to uncertain service life.
3.Collection of R&D costs
The collection of R&D costs is directly related to the R&D activities of enterprises including R&D
personnel salaries R&D materials depreciation and amortization expenses technical cooperation fees
evaluation and testing fees etc.
4.The costs incurred during the research phase of internal R&D projects are recognized in the current
period's profit and loss when incurred. Expenditures on the research phase of an internal project are recognized
as profit or loss when they are incurred. An intangible asset arising from the development phase of an internal
project is recognized if the Company can meet relevant conditions.
19．Impairment of part of long-term assets
For long-term assets such as long-term equity investments investment property at cost model fixed assets
construction in progress right-of-use assets intangible assets with finite useful lives etc. if at the balance sheet
date there is indication of impairment the recoverable amount is to be estimated. For goodwill recognized in
business combination and intangible assets with indefinite useful lives no matter whether there is indication of
impairment impairment test is performed annually. Impairment test on goodwill is performed on related asset
group or asset group portfolio.
161Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
When the recoverable amount of such long-term assets is lower than their carrying amount the difference
is recognized as provision for assets impairment through profit or loss.
20．Long-term prepayments
Long-term prepayments are expenses that have been recognized but with amortization period over one
year (excluding one year). They are recorded with actual cost and evenly amortized within the beneficiary
period or stipulated period. If items of long-term prepayments fail to be beneficial to the following accounting
periods residual values of such items are included in profit or loss.
21．Employee benefits
1. Short-term employee benefits
The Company recognizes in the accounting period in which an employee provides service short-term
employee benefits actually incurred as liabilities with a corresponding charge to profit or loss or the cost of a
relevant asset.
2. Post-employment benefits
Post-employment benefits are divided into defined contribution and defined benefit plans.
（1）During the accounting period employees provide services according the defined contribution plan the
amount payable is recognized as liabilities and included in the current profits and losses or relevant asset costs.
（2）The accounting treatment of a defined benefit plan typically includes the following steps:
1）Measure the obligation arising from the defined benefit plan and determine the period over which the
obligation falls based on the projected unit credit method using unbiased and consistent actuarial assumptions to
estimate among other things the relevant demographic and financial variables. At the same time the obligations
arising from the defined-benefit plans are discounted to determine the present value of the defined-benefit plan
obligations and the current service cost;
2）Where there are assets in a defined benefit plan the deficit or surplus resulting from the present value of
the defined benefit plan obligation less the fair value of the defined benefit plan assets is recognised as a net
defined benefit plan liability or net asset. Where a defined benefit plan has a surplus the net defined benefit plan
asset is measured at the lower of the surplus of the defined benefit plan or the asset limit；
3）At the end of the period employee compensation costs arising from defined benefit plans are recognised
as service costs net interest on net liabilities or net assets of the defined benefit plans and changes arising from
the remeasurement of net liabilities or net assets of the defined benefit plans with the service costs and net interest
on net liabilities or net assets of the defined benefit plans being recognised in profit or loss or in the cost of the
relevant assets for the period and changes arising from the remeasurement of net liabilities or changes arising
from the remeasurement of the net liabilities or net assets of the defined benefit plan are included in other
comprehensive income and are not allowed to be reversed to profit or loss in subsequent accounting periods but
these amounts recognised in other comprehensive income can be transferred within equity.
3. Termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability with a
corresponding charge to profit or loss at the earlier of the following dates: (1) when the Company cannot
unilaterally withdraw the offer of termination benefits because of an employment termination plan or a
curtailment proposal; (2) when the Company recognizes cost or expenses related to a restructuring that involves
the payment of termination benefits.
4. Other long-term employee benefits
162Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
When other long-term employee benefits provided to the employees satisfied the conditions for classifying
as a defined contribution plan those benefits are accounted for in accordance with the requirements relating to
defined contribution plan while other benefits are accounted for in accordance with the requirements relating to
defined benefit plan. To simplify relevant accounting treatments the total net amount of recognized employee
compensation costs as service costs net interest on other long-term employee benefits net liabilities or net
assets and changes resulting from remeasuring other long-term employee benefits net liabilities or net assets
shall be recognized in the current period's profit and loss or related asset costs
22．Projected liability
1. When an obligation arising from contingencies such as litigation matters product quality assurance
loss contracts etc. becomes a present obligation of the company it is probable that the fulfilment of the
obligation will result in an outflow of economic benefits to the company and the amount of the obligation can
be measured reliably the company recognises the obligation as a projected liability.
2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling
the present obligations and its carrying amount is reviewed at the balance sheet date.
23．Share-based payment
1. Types of share-based payment
Share-based payment consists of equity-settled share-based payment and cash-settled share-based payment.
2. Accounting treatment for settlements modifications and cancellations of share-based payment terms and
conditions
(1) Equity-settled share-based payment
For equity-settled share-based payment transaction with employees if the equity instruments granted vest
immediately the fair value of those equity instruments is measured at grant date and recognized as transaction
cost or expense with a corresponding adjustment in capital reserve; if the equity instruments granted do not vest
until the counterparty completes a specified period of service at the balance sheet date within the vesting period
the fair value of those equity instruments measured at grant date based on the best estimate of the number of
equity instruments expected to vest is recognized as transaction cost or expense with a corresponding adjustment
in capital reserve.
(2) Cash-settled share-based payment
For cash-settled share-based payment transactions with employees if share appreciation rights vest
immediately the fair value of the liability incurred as the acquisition of goods or services is measured at grant
date and recognized as transaction cost or expense with a corresponding increase in liabilities; if share
appreciation rights do not vest until the employees have completed a specified period of service the liability is
measured at each balance sheet date until settled at the fair value of the share appreciation rights measured at
grant date based on the best estimate of the number of share appreciation right expected to vest.
(3) Modifications and cancellations of share-based payment terms and conditions
If the modification increases the fair value of the equity instruments granted measured immediately before
and after the modification the Company includes the incremental fair value granted in the measurement of the
amount recognized for services received as consideration for the equity instruments granted; similarly if the
modification increases the number of equity instruments granted the Company includes the fair value of the
additional equity instruments granted measured at the date of the modification in the measurement of the amount
recognized for services received as consideration for the equity instruments granted; if the Company modifies the
163Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
vesting conditions in a manner that is beneficial to the employee the Company takes the modified vesting
conditions into account.If the modification reduces the fair value of the equity instruments granted measured immediately before and
after the modification the Company does not take into account that decrease in fair value and continue to measure
the amount recognized for services received as consideration for the equity instruments based on the grant date
fair value of the equity instruments granted; if the modification reduces the number of equity instruments granted
to an employee that reduction is accounted for as a cancellation of that portion of the grant; if the Company
modifies the vesting conditions in a manner that is not beneficial to the employee the Company does not take the
modified vesting conditions into account.If the Company cancels or settles a grant of equity instruments during the vesting period (other than a grant
cancelled by forfeiture when the vesting conditions are not satisfied) the Company accounts for the cancellation
or settlement as an acceleration of vesting and therefore recognizes immediately the amount that otherwise would
have been recognized for services received over the remainder of the vesting period.
24．Revenue
1. Revenue recognition principles
At contract inception the Company shall assess the contracts and shall identify each performance obligation
in the contracts and determine whether the performance obligation should be satisfied over time or at a point in
time.The Company satisfies a performance obligation over time if one of the following criteria is met otherwise
the performance obligation is satisfied at a point in time: (1) the customer simultaneously receives and consumes
the benefits provided by the Company’s performance as the Company performs; (2) the customer can control
goods or services as they are created by the Company’s performance; (3) the Company’s performance does not
create goods or services with an alternative uses and the Company has an enforceable right to payment for
performance completed to date.For each performance obligation satisfied over time the Company shall recognize revenue over time by
measuring the progress towards complete satisfaction of that performance obligation. In the circumstance that the
progress cannot be measured reasonably but the costs incurred in satisfying the performance obligation are
expected to be recovered the Company shall recognize revenue only to the extent of the costs incurred until it can
reasonably measure the progress.For each performance obligation satisfied at a point in time the Company shall recognize revenue at the
time point that the customer obtains control of relevant goods or services. To determine whether the customer has
obtained control of goods the Company shall consider the following indicators: (1) the Company has a present
right to payment for the goods i.e. the customer is presently obliged to pay for the goods; (2) the Company has
transferred the legal title of the goods to the customer i.e. the customer has legal title to the goods; (3) the
Company has transferred physical possession of the goods i.e. the customer has physically possessed the goods;
(4) the Company has transferred significant risks and rewards of ownership of the goods i.e. the customer has
obtained significant risks and rewards of ownership of the goods; (5) the customer has accepted the goods; (6)
other indicators showing the customer has obtained control over the goods.
2. Revenue measurement principle
(1) Revenue is measured at the amount of the transaction price that is allocated to each performance
obligation. The transaction price is the amount of consideration to which the Company expects to be entitled in
exchange for transferring goods or services to a customer excluding amounts collected on behalf of third parties
164Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
and those expected to be refunded to the customer.
(2) If the consideration promised in a contract includes a variable amount the Company shall confirm the
best estimate of variable consideration at expected value or the most likely amount. However the transaction price
that includes the amount of variable consideration only to the extent that it is high probable that a significant
reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the
variable consideration is subsequently resolved.
(3) In the circumstance that the contract contains a significant financing component the Company shall
determine the transaction price based on the price that a customer would have paid for if the customer had paid
cash for obtaining control over those goods or services. The difference between the transaction price and the
amount of promised consideration is amortized under effective interest method over contractual period. The
effects of a significant financing component shall not be considered if the Company expects at the contract
inception that the period between when the customer obtains control over goods or services and when the
customer pays consideration will be one year or less.
(4) For contracts containing two or more performance obligations the Company shall determine the stand-
alone selling price at contract inception of the distinct good underlying each performance obligation and allocate
the transaction price to each performance obligation on a relative stand-alone selling price basis.
3. Revenue recognition method
The company's main business activities are the R&D production and sales of control components and parts
of household appliances and automobiles which belong to the performance obligations at a certain point in time.The revenue from domestic sales of products shall be recognized based on sales contracts settlement
vouchers (delivery or usage)and other documents upon completion of product delivery; and the revenue from
export of products shall be recognized according to the sales contract customs declaration form bill of lading
and other documents upon completion of customs declaration and export. The sales revenue of metal scrap is
recognized after weighing and picking up the goods and obtaining the receipt certificate.
25．Costs of obtaining a contract and costs to fulfill a contract
The Company recognizes as an asset the incremental costs of obtaining a contract if those costs are expected
to be recovered. The costs of obtaining a contract shall be included into profit or loss when incurred if the
amortization period of the asset is one year or less.If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories fixed
assets or intangible assets etc. the Company shall recognize the costs to fulfill a contract as an asset if all the
following criteria are satisfied:
1. The costs relate directly to a contract or to an anticipated contract including direct labor direct materials
manufacturing overhead cost (or similar cost) cost that are explicitly chargeable to the customer under the
contract and other costs that are only related to the contract;
2. The costs enhance resources of the Company that will be used in satisfying performance obligations in the
future;
3. The costs are expected to be recovered.
An asset related to contract costs shall be amortized on a systematic basis that is consistent with related
goods or services with amortization included into profit or loss.The Company shall make provision for impairment and recognize an impairment loss to the extent that the
carrying amount of an asset related to contract costs exceeds the remaining amount of consideration that the
Company expects to receive in exchange for the goods or services to which the asset relates less the costs
165Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
expected to be incurred. The Company shall recognize a reversal of an impairment loss previously recognized in
profit or loss when the impairment conditions no longer exist or have improved. The carrying amount of the asset
after the reversal shall not exceed the amount that would have been determined on the reversal date if no provision
for impairment had been made previously.
26．Contract assets contract liabilities
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship
between its performance obligations and customers’ payments. Contract assets and contract liabilities under the
same contract shall offset each other and be presented on a net basis.The Company presents an unconditional right to consideration (i.e. only the passage of time is required
before the consideration is due) as a receivable and presents a right to consideration in exchange for goods that it
has transferred to a customer (which is conditional on something other than the passage of time) as a contract
asset.The Company presents an obligation to transfer goods to a customer for which the Company has received
consideration (or the amount is due) from the customer as a contract liability.
27．Government grants
1. Government grants shall be recognized if and only if the following conditions are all met: (1) the
Company will comply with the conditions attaching to the grants; (2) the grants will be received. Monetary
government grants are measured at the amount received or receivable. Non-monetary government grants are
measured at fair value and can be measured at nominal amount in the circumstance that fair value can’t be
assessed.
2. Government grants related to assets
Government grants related to assets are government grants with which the Company construct or otherwise
acquire long-term assets under requirements of government. In the circumstances that there is no specific
government requirement the Company shall determine based on the primary condition to acquire the grants and
government grants related to assets are government grants whose primary condition is to construct or otherwise
acquire long-term assets. They offset carrying amount of relevant assets or recognized as deferred income. If
recognized as deferred income they are included in profit or loss on a systematic basis over the useful lives of the
relevant assets. Those measured at notional amount is directly included into profit or loss. For assets sold
transferred disposed or damaged within the useful lives balance of unamortized deferred income is transferred
into profit or loss of the year in which the disposal occurred.
3. Government grants related to income
Government grants related to income are government grants other than those related to assets. For
government grants that contain both parts related to assets and parts related to income in which those two parts
are blurred and thus collectively classified as government grants related to income. For government grants related
to income used for compensating the related future cost expenses or losses of the Company are recognized as
deferred income and are included in profit or loss or offset relevant cost during the period in which the relevant
cost expenses or losses are recognized; for government grants related to income used for compensating the
related cost expenses or losses incurred to the Company they are directly included in profit or loss or directly
offset relevant cost.
4. Government grants related to the ordinary course of business shall be included into other income or offset
relevant cost based on business nature while those not related to the ordinary course of business shall be included
166Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
into non-operating revenue or expenditures.
5. Policy interest subvention
(1) In the circumstance that government appropriates interest subvention to lending bank who provides loans
for the Company with a policy subsidised interest rate borrowings are carried at the amount received with
relevant borrowings cost computed based on the principal and the policy subsidised interest rate.
(2) In the circumstance that government directly appropriates interest subvention to the Company the
subsidised interest shall offset relevant borrowing cost.
28．Deferred tax assets/Deferred tax liabilities
1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference
between the carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and
tax base of items not recognized as assets and liabilities but with their tax base being able to be determined
according to tax laws) and in accordance with the tax rate applicable to the period during which the assets are
expected to be recovered or the liabilities are expected to be settled.
2. A deferred tax asset is recognized to the extent of the amount of the taxable income which it is most likely
to obtain and which can be deducted from the deductible temporary difference. At the balance sheet date if there
is any exact evidence that it is probable that future taxable income will be available against which deductible
temporary differences can be utilized the deferred tax assets unrecognized in prior periods are recognized.
3. At the balance sheet date the carrying amount of deferred tax assets is reviewed. The carrying amount of a
deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable income will be
available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to
the extent that it becomes probable that sufficient taxable income will be available.
4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit
or loss excluding those arising from the following circumstances: (1) business combination; and (2) the
transactions or items directly recognized in equity.
5.Deferred tax assets and deferred tax liabilities shall offset each other and be presented on a net basis when
the following conditions are all met: (1) the Company has the legal right to settle off current tax assets against
current tax liabilities; (2) Deferred income tax assets and deferred income tax liabilities are related to the income
tax levied by the same tax administration department on the same taxpayer or related to the same tax
administration department for different taxpayers. However in each period during which significant deferred
income tax assets and deferred income tax liabilities are reversed in the future the taxpayer involved intends to
settle the current income tax assets and liabilities on a net basis or simultaneously acquire assets and settle debts.
29. Leases
1. The Company as lessee
At the commencement date the Company recognizes a lease that has a lease term of 12 months or less as a
short-term lease which shall not contain a purchase option; the Company recognizes a lease as a lease of a low-
value asset if the underlying asset is of low value when it is new.For all short-term leases and leases of low-value assets lease payments are recognized as cost or profit or
167Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
loss with straight-line method over the lease term.Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach
the Company recognizes right-of-use assets and lease liabilities at the commencement date.
(1) Right-of-use assets
The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial
measurement of the lease liabilities; 2) any lease payments made at or before the commencement date less any
lease incentives received; 3) any initial direct costs incurred by the lessee; and 4) an estimate of costs to be
incurred by the lessee in dismantling and removing the underlying asset restoring the site on which it is located or
restoring the underlying asset to the condition required by the terms and conditions of the lease.The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable to be
certain that the ownership of the underlying asset can be acquired by the end of the lease term the Company
depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset.Otherwise the Company depreciates the right-of-use asset from the commencement date to the earlier of the end
of the useful life of the right-of-use asset or the end of the lease term.
(2) Lease liabilities
At the commencement date the Company measures the lease liability at the present value of the lease
payments that are not paid at that date the present value of the lease payments is calculated using the interest rate
embedded in the lease as the discount rate or if the interest rate embedded in the lease cannot be determined the
interest rate on the Company's incremental borrowings is used as the discount rate. The difference between the
lease payments and their present value is recognized as unrecognized financing expenses which are recognized as
interest expenses over the lease term at the discount rate used to determine the present value of the lease payments
and included in the current period's profit or loss. Variable lease payments not included in the measurement of
lease liabilities are included in profit or loss in the periods in which they are incurred.After the commencement date of the lease term when there is a change in the substantive fixed payment
amount a change in the estimated payable amount of the residual value of the guarantee a change in the index or
ratio used to determine the lease payment amount a change in the appraisal result of the option to purchase the
option to renew the lease or the option to terminate or a change in the actual situation of exercising the right to
purchase the company will re-measure the lease liability based on the present value of the lease payments after
the change and adjust the carrying value of the right-of-use asset accordingly. If the carrying value of the right-of-
use asset has been reduced to zero but the lease liability still needs to be further reduced the remaining amount
will be recognised in profit or loss for the current period.
2.The Company as lessor
At the commencement date the Company classifies a lease as a finance lease if it transfers substantially all
168Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
the risks and rewards incidental to ownership of an underlying asset. Otherwise it is classified as an operating
lease.For operating leaselease receipts are recognized as lease income with straight-line method over the lease
term. Initial direct costs incurred shall be capitalized amortized on the same basis as the recognition of lease
income and included into profit or loss by installments. Variable lease payments related to operating lease which
are not included in the lease payment are charged as profit or loss in the periods in which they are incurred.
30. Segment reporting
Operating segments are determined based on the structure of the Company’s internal organization
management requirements and internal reporting system. An operating segment is a component of the Company:
1. that engages in business activities from which it may earn revenues and incur expenses;
2. whose financial performance is regularly reviewed by the Management to make decisions about resource
to be allocated to the segment and to assess its performance; and
3. for which accounting information regarding financial position financial performance and cash flows is
available through analysis.
31. Significant accounting policies and changes in accounting estimates
(1)Changes in accounting policies arising from changes in CASBEs
1)Effective from 1 January 2024 the Company implemented the provisions of the ‘Interpretation of China
Accounting Standards for Business Enterprises No. 17’ issued by the Ministry of Finance ‘Classification of
Current Liabilities and Non-current Liabilities ’ and made adjustments to the information of comparable
periods.The change in accounting policy had no impact on the Company's financial statements.
2)Effective from 1 January 2024 the Company implemented the provisions of the ‘Interpretation of China
Accounting Standards for Business Enterprises No. 17’‘Disclosures about Vendor Financing Arrangements’
issued by the Ministry of Finance.
3)Effective from 1 January 2024 the Company has implemented the provisions of ‘Interpretation of China
Accounting Standards for Business Enterprises No. 17’ ‘Accounting for Sale and Leaseback Transactions’
issued by the Ministry of Finance. This change in accounting policy has no impact on the Company's financial
statements.
4)Effective from 1 January 2024 the Company implemented the provisions of ‘ Interpretation of China
Accounting Standards for Business Enterprises No. 18’‘Accounting for Guarantees that are not Individual
Performance Obligations’ issued by the Ministry of Finance and retrospectively adjusted the information for
comparable periods. The details of the adjustments are as follows:
169Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
FY2023 Impact Amount
Significantly affected statement items Consolidated Income Income Statement of
Statement the Parent Company
Consolidated Income Statement Items for FY 2023
Operating Cost +65738686.79 +7001846.35
Selling Expense -65738686.79 -7001846.35
VI. Taxes
1. Major categories of taxes and tax rates
Tax Type Taxation basis Tax rate
Calculate output tax on the basis of the income from the
sale of goods and taxable services calculated in
Value-added tax (VAT) accordance with the provisions of the Tax Law and after 13%，9%，6%deducting the input tax allowable for deduction in the
current period the difference will be the VAT payable
Urban maintenance and
construction tax Turnover tax actually paid 7%，5%Enterprise income tax Taxable income 15%，25%For housing property levied on the basis of price housing
property tax is levied at the rate of 1.2% of the balance
Property tax after deducting 30% of the cost; for housing property 12%1.2%
levied on the basis of rent housing property tax is levied
at the rate of 12% of lease income
Education surcharge Turnover tax actually paid 3%
Local education surcharge Turnover tax actually paid 2%
Different enterprise income tax rates applicable to different taxpayers:
Taxpayers Income tax rate
Zhejiang Sanhua Intelligent Controls Co. Ltd 15%
Zhejiang Sanhua Commercial Refrigeration Co. Ltd 15%
Sanhua (hangzhou) Micro Channel Heat Exchanger Co. Ltd 15%
Zhejiang Sanhua Automotive Components Co. Ltd. 15%
Shaoxing Sanhua New Energy Automotive Components Co. Ltd 15%
Shaoxing Sanhua Automotive Thermal Management Technology 15%
Co. Ltd
Certain other subsidiaries 15%
Domestic taxpayers other than the above-mentioned 25%
2. Tax preferential policies
The company and several subsidiaries can enjoy tax incentives for high-tech enterprises and the final
settlement and payment shall prevail.Export goods enjoy the VAT exemption and refund policy; the exceeding portion over the 3% VAT payable
170Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
of the certified software products enjoy the immediate refund policy; several subsidiaries are welfare enterprises
and value-added tax enjoys the preferential policy of immediate collection and refund of the "employment quota
for disabled persons".
3. Others
The overseas subsidiary shall be subject to the tax regulations of its host country.
171Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
VII. Notes to Items in the Consolidated Financial Statements
1. Cash and bank balances
Unit: RMB
Items Closing balance Opening balance
Cash on hand 166912.72 291216.13
Cash in bank 5186146972.89 6507907610.98
Other cash and bank balances 62253760.60 76485856.82
Total 5248567646.21 6584684683.93
Including: Deposited overseas 952617169.74 510550872.27
2. Derivative Financial Assets
Unit: RMB
Items Closing balance Opening balance
Foreign exchange tool 6237202.48 20878992.10
Futures tools 1757120.58
Total 6237202.48 22636112.68
3. Notes receivable
（1）Categories of notes receivable
Unit: RMB
Items Closing balance Opening balance
Bank acceptance 2513499394.14 2332015457.09
Trade acceptance 2802500.00 7632781.39
Financial company acceptance 160968390.82 137191175.41
Total 2677270284.96 2476839413.89
（2）Provision for bad debts
Unit: RMB
Closing balance Opening balance
Book balance Provision for baddebt Book balance
Provision for bad
debt
Categori Amount Proportio Amount ProviCarryin
es Provisi n siong Carrying
Amou Proporti Amoun on propoamount amount
nt on t proport rtion
ion
Includin
g:
172Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Notes
receivabl
e with
provision
for bad 26858 861952 267727 2484457 7618345. 2476839413.debt 89805. 100.00% 0.32% 100.00% 0.31%0.57 0284.96 759.72 83 89
made on 53
a
collectiv
e basis
Includin
g:
Bank 25134
acceptan 251349 2332015 2332015457.99394. 93.58% 93.87%
ce 9394.14 457.09 0914
Financial
company 16944 847202 160968 1444077 7216620. 137191175.4
acceptan 0411.3 6.31% 5.00% 5.81% 5.00%0.57 390.82 95.90 49 1
ce 9
Trade
acceptan 29500 147500. 280250 8034506. 401725.30.11% 5.00% 0.32% 5.00% 7632781.39
ce 00.00 00 0.00 73 4
26858
Total 861952 267727 2484457 7618345. 2476839413.89805. 100.00% 0.32% 100.00% 0.31%0.57 0284.96 759.72 83 89
53
Provision for bad debt made on a collective basis:
Unit: RMB
Items Closing balanceBook balance Provision for bad debt Provision proportion (%)
Bank acceptance portfolio 2513499394.14
Financial company
acceptance 169440411.39 8472020.57 5.00%
Trade acceptance
portfolio 2950000.00 147500.00 5.00%
Total 2685889805.53 8619520.57
Explanation for determining the basis of this combination:
If the provision for bad debt of notes receivable is in accordance with the general expected credit loss
model:
□Applicable√ Not Applicable
（3）Provision for bad debt accrued recovered or reversed in current period
Provision for bad debt accrued in current period:
Unit: RMB
Categories Opening Changed amount of this period Closingbalance Accrual Recovered or Write off Others balance
173Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
reversed
Provision for
bad debt made
on a collective 7618345.83 8619520.57 7618345.83 8619520.57
basis
Total 7618345.83 8619520.57 7618345.83 8619520.57
Including significant provision for bad debt recovered or reversed amount:
□ Applicable √ Not Applicable
（4）Pledged notes at the balance sheet date
Unit: RMB
Items Closing balance of pledged notes
Bank acceptance 1669542620.23
Financial company acceptance 169918986.28
Total 1839461606.51
（5）Endorsed or discounted but undue notes at the balance sheet date
Unit: RMB
Items Closing balance derecognized Closing balance not yetderecognized
Bank acceptance 135428108.68 22016350.29
Total 135428108.68 22016350.29
4. Accounts receivable
（1）Disclosure of accounts receivable by aging
Unit: RMB
AR Aging Closing balance Opening balance
Within 1 year (including one year) 7288127347.10 6039601208.01
1 to 2 years 26880148.32 45652788.88
2 to 3 years 8522780.88 388260.85
Over 3 years 384122.15 265553.29
Total 7323914398.45 6085907811.03
（2）Disclosure of accounts receivable by categories
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad Book balance Provision for bad
Catego debt debt
ries Amount Propo Amount Accru Carrying Amount Propo Amount Accru Carrying
rtion ed amount rtion ed amount
propo propo
rtion rtion
174Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Receiv
ables
with
provisi
on 1318783 523122 7956610. 5690817. 569081 100.00
made 0.18% 39.67% 0.09%7.64 7.55 09 36 7.36 %
on an
individ
ual
basis
Includi
ng:
Receiv
ables
with
provisi
on 7310726 367616 6943110 6080216 306225 5773991
made 99.82% 5.03% 99.91% 5.04%560.81 309.83 250.98 993.67 512.45 481.22
on a
collecti
ve
basis
Includi
ng:
Total 7323914 100.00 372847 6951066 6085907 100.00 311916 57739915.09% 5.13%398.45 % 537.38 861.07 811.03 % 329.81 481.22
Provision for bad debts by individual item: There were no significant individual accounts receivable for which
provision for bad debts was required to be disclosed during the period.Provision for bad debts by portfolio: accounts receivable for which bad debt provision is made using ageing
portfolios.Unit: RMB
Items Closing balanceBook balance Provision for bad debt Accrued proportion
Within 1 year 7283188043.37 364159402.15 5.00%
1 to 2 years 24407359.92 2440735.99 10.00%
2 to 3 years 2747035.37 824110.61 30.00%
Over 3 years 384122.15 192061.08 50.00%
Total 7310726560.81 367616309.83
If the provision for bad debt of accounts receivable is in accordance with the general expected credit loss
model:
□Applicable □√Not Applicable
175Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
（3）Provision for bad debt accrued recovered or reversed in current period
Provision for bad debt accrued in current period:
Unit: RMB
Opening Changed amount of the current periodCategories balance Accrued Recovered Consolidation not Closing balanceor reversed under the same control
Receivables with
provision made on 5690817.36 2472788.40 7683343.52 4750965.31 5231227.55
an individual basis
Receivables with
provision made on 306225512.45 61571623.30 1624270.61 1443444.69 367616309.83
a collective basis
Total 311916329.81 64044411.70 9307614.13 6194410.00 372847537.38
There were no significant recoveries or reversals of bad debt provisions during the period
（4）Details about accounts receivable actually written off in the current period
Unit: RMB
Item Amount
Actually written off amount 180825.92
Explanation of accounts receivable written off:
There are no significant accounts receivable written off in this period.
（5）Accounts receivable and contract assets of the top five ending balances
Closing balance of top 5 debtors totaled 3290.1883 million yuan accounting for 44.92% of the total
closing balance of accounts receivable. The corresponding provision for bad debts of accounts receivable is
164.8327 million yuan.
（6）Other remarks
Some of the company's accounts receivable are collected by digital and electronic debt vouchers. These
debt vouchers have certain credit liquidity and can be used for commercial factoring or transfer payment. As of
December 31 2024 the company had 1304.0048 million yuan of digital and electronic debt vouchers in hand
and 76.1797 million yuan of digital and electronic debt vouchers that had been transferred for payment but not
expired.
5. Other receivables
Unit: RMB
Items Closing balance Opening balance
Other receivables 258058796.63 227792892.12
Total 258058796.63 227792892.12
176Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
（1）Other receivables
1）Other receivables categorized by nature
Unit: RMB
Items Closing balance Opening balance
Tax refund receivable 172315455.31 164712845.63
Guarantee deposits 58761000.97 45694632.70
Equity transfer 6154074.80
Others 29163174.28 25466493.81
Total 266393705.36 235873972.14
2）Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 245128042.58 209294612.66
1 to 2 years 10421180.98 7805876.63
2 to 3 years 3857893.12 6125806.34
Over 3 years 6986588.68 12647676.51
Total 266393705.36 235873972.14
3）Disclosure by categories
√ Applicable □Not Applicable
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad Provision for bad
Catego debt
Book balance debt
ries Amount Propor Amoun Accrue Carrying Amount Propor Amoun Accrue Carrying
tion t d amount tion t d amount
propor propor
tion tion
Provisi
on
made
on an 1922854 1922854 1702682 170268272.18% 72.19%
individ 75.65 75.65 81.68 81.68
ual
basis
177Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Includi
ng:
Provisi
on
made 7410822 833490 6577332 6560569 808108 5752461
on a 27.82% 11.25% 27.81% 12.32%9.71 8.73 0.98 0.46 0.02 0.44
collecti
ve
basis
Includi
ng:
Total 2663937 100.00 833490 2580587 2358739 100.00 808108 22779283.13% 3.43%05.36 % 8.73 96.63 72.14 % 0.02 92.12
Provision for bad debts on an individual basis: significant other receivables with a single provision for bad debts
Unit: RMB
Opening balance Closing balance
Name Carrying Provision for Carrying Provision for Accrued Accrual
amount bad debts amount bad debts proportion reason
Amounts from
Mexican Tax government
Authorities 110195377.57 24886583.98 units less risk
of bad debts
Amounts from
Domestic tax government
authorities 48769669.81 133400622.49 units less risk
of bad debts
Total 158965047.38 158287206.47
Provision made on a collective basis: Aging portfolio
Unit: RMB
Items Closing balanceBook balance Provision for bad debt Accrued proportion
Within 1 year 52842566.93 2642128.35 5.00%
1 to 2 years 10421180.98 1042118.10 10.00%
2 to 3 years 3857893.12 1157367.94 30.00%
Over 3 years 6986588.68 3493294.34 50.00%
Total 74108229.71 8334908.73
Provision for bad debt of other receivables in accordance with the general expected credit loss model:
Unit: RMB
178Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Phase I Phase II Phase III
Provision for bad
debt 12?month Lifetime expected Lifetime expected Subtotal
expected credit credit losses (credit credit losses (credit
losses not impaired) impaired)
Balance on January 1
2301288.08780587.674999204.278081080.02
2024
The balance as of
January 1 2024 is in —— —— —— ——
the current period
--Transferred to phase
-521059.05521059.05
II
--Transferred to phase
-771578.62771578.62
III
Provision made in the
861899.32512050.00-1120120.61253828.71
current period
Balance on December
2642128.351042118.104650662.288334908.73
312024
Loss provisions for significant changes in book balances in current period
□ Applicable √ Not Applicable
4）Provision for bad debt accrued recovered or reversed in current period
There were no significant recoveries or reversals of bad debt provisions during the period
5）Other receivables actually written off during the period
There were no significant write-offs of other receivables during the period.
6）Top five other accounts receivable with closing balances by party owed
Unit: RMB
Proportion to Provision for
Items Nature of Closing balance Ages the total balance bad debt at thereceivables of other end of the
receivables period
Domestic tax
authorities Tax refund 133400622.49 Within 1 year 50.08%
Mexican tax
authorities Tax refund 24886583.98 Within 1 year 9.34%
US Customs Customsdeposit 12939838.84 Within 1 year 4.86%
U.S. CBP
Freight Cashier Tax refund 7461856.22 Within 1 year 2.80%
Ningbo
Hongquan
Enterprise
Management Equity transfer 5696522.80 Within 1 year 2.14%
Partnership
(Limited
179Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Partnership)
Total -- 184385424.33 -- 69.22%
6. Advances paid
（1）Advances paid by aging
Unit: RMB
Aging Closing balance Opening balanceAmount Percentage Amount Percentage
Within 1 year 151678804.24 95.41% 128617877.12 96.13%
1 to 2 years 4420562.62 2.78% 2851372.48 2.13%
2 to 3 years 1494692.35 0.94% 1053936.12 0.79%
Over 3 years 1386389.00 0.87% 1269437.82 0.95%
Total 158980448.21 133792623.54
Explanation of the reasons for untimely settlement of prepayments aged over one year and of significant
amounts:
There were no significant prepayments aged over one year at the end of the period.
（2）Top 5 debtors with the largest advances paid balances
Closing balance of top 5 debtors totaled 27856613.58yuan accounting for 17.52% of the total closing
balance .
7. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
（1）Categories of inventories
Unit: RMB
Closing balance Opening balance
Provision for Provision for
decline in decline in
value of value of
inventories inventories
Items Book balance or provision Carrying or provision Carryingfor amount Book balance for amount
impairment impairment
of contract of contract
performance performance
costs costs
Raw
materials 774517455.48 55956420.74 718561034.74 932169486.90 61788757.16 870380729.74
Work-
in- 736441490.73 5940605.41 730500885.32 596409922.79 1602512.78 594807410.01
progress
180Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Finished
goods 3833665539.54 63704038.66 3769961500.88 3179557350.47 50888480.61 3128668869.86
Work-
in-mould 51291852.64 51291852.64
Others 10126550.90 10126550.90 6872368.58 6872368.58
Total 5406042889.29 125601064.81 5280441824.48 4715009128.74 114279750.55 4600729378.19
（2）Provision for decline in value of inventories and Provision for impairment of contract performance
costs
Unit: RMB
Opening Increase in current period
Decrease in current
Items periodbalance Reversal or Closing balanceAccrued Others write off Others
Raw materials 61788757.16 29365353.75 99745.41 35297435.58 55956420.74
Work-in-progress 1602512.78 4791598.58 453505.95 5940605.41
Finished goods 50888480.61 38251194.39 5980581.98 31416218.32 63704038.66
Total 114279750.55 72408146.72 6080327.39 67167159.85 125601064.81
（3）Other debt investments maturing within one year
□ Applicable √ Not Applicable
8. Other current assets
Unit: RMB
Items Closing balance Opening balance
Deductible input tax 188133785.99 186254431.54
Prepaid Enterprise income tax 20736089.01 61993000.46
CITIC Securities Principal
Protected Income Certificates 1099929200.00
Treasury Bond Reverse
Repurchase 399999000.00
H-share declaration intermediary
service fee 8727451.00
Others 3014405.75 2826152.56
Total 1720539931.75 251073584.56
9. Long-term receivable
（1）Long-term receivable
Unit: RMB
Closing balance Opening balance
Items Book Provision Carrying Book Provision
Range of
balance for bad amount balance for bad
Carrying discount
debt debt amount rate
Employee
home loan 3805833.60 3805833.60
Deposit 4118760.78 205938.04 3912822.74
181Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Guarantee
Total 4118760.78 205938.04 3912822.74 3805833.60 3805833.60 --
（2）Disclosure by categories
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad Book balance Provision for badCategor debt Carryi
ies Amount Proporti Amoun Accrued Carrying
debt
amount Amou Proporti Amou Accrued
ng
on t proporti nt on nt proporti amoun
on on t
Includin
g:
Provisio
n for
bad 4118760 205938. 3912822
debts by 100.00% 5.00%.78 04 .74
portfoli
o
Includin
g:
Total 4118760 205938. 3912822100.00% 5.00%.78 04 .74
10. Long-term equity investments
Unit: RMB
Changes in current period
Opening Investm Cash Closing
Opening balance Adjustmof Investm Investm ent ent in dividend Closing
balance
Investee balance provisio ents ents income other Changes / Profit
Provisio balance of
s (Book recogniz in other declared n for Others (Book provisio
value) n for increase decrease comprehimpairm d d ed under ensive equity for
impairm n for
equity distribut ent
value) impairm
ent method income ion ent
1. Associates
2. Joint ventures
182Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Guochu
ang
Energy
Internet
Innovati
on 4941151 505377.0 5446528
Center .03 8 .11
(Guangd
ong)
Co.Ltd.Chongqi
ng
Tainuo 1830417 3097829 5000000 1640200
Machine 6.79 .03 .00 5.82
ry Co.Ltd.Ningbo
Jinlifeng
Machine 2818824 1020308 1250000 2589132
ry Co. .39 .31 .00 .70
Ltd.Qingdao
Sanhua
Jinlifeng 7207202 3843063 1105026
Machine .81 .97 6.78
ry Co.Ltd.Zhongsh
an
Xuanyi
Pipe 2806313 402566.2 3208879
Manufa .58 5 .83
cturing
Co.Ltd.Xinchan
g
zhejiang
energy
sanhua 1846762 190298056217.49
compreh .69 .18
ensive
energy
co. LTD
Subtotal 3792443 8925362 6250000 40599791.29 .13 .00 3.42
Total 3792443 8925362 6250000 40599791.29 .13 .00 3.42
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair
value
□ Applicable √ Not Applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not Applicable
183Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
11. Investment property
Investment property measured by cost method
√ Applicable □ Not Applicable
Unit: RMB
Items Buildings and structures Land use right andOverseas land ownership Total
Ⅰ. Original Carrying
amount
1.Opening balance 12988799.79 3465907.20 16454706.99
2.Increase in current
period -516154.12 -147073.50 -663227.62
（1）Acquisition
（2）Transferred in
from inventory\fixed
assets\ construction in
progress
（3）Increase in
business merger
（4）Converted
difference in Foreign -516154.12 -147073.50 -663227.62
Currency Statements
3.Decrease in current
period
（1）Disposal
（2）Other transfer out
4.Closing balance 12472645.67 3318833.70 15791479.37
Ⅱ. Accumulated
depreciation and
amortization
1.Opening balance 8288901.68 8288901.68
2. Increase in current
period 449423.77 449423.77
（1）Accrual or 1511403.49 1511403.49
amortization
184Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
（2）Converted
difference in Foreign -1061979.72 -1061979.72
Currency Statements
3.Decrease in current
period
（1）Disposal
（2）Other transfer out
4.Closing balance 8738325.45 8738325.45
Ⅲ. Provision for
impairment
1.Opening balance
2. Increase in current
period
（1）Accrual
3.Decrease in current
period
（1）Disposal
（2）Other transfer out
4.Closing balance
Ⅳ. Carrying amount
1.Closing balance 3734320.22 3318833.70 7053153.92
2.Opening balance 4699898.11 3465907.20 8165805.31
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair
value
□ Applicable √ Not Applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not Applicable
12. Fixed assets
Unit: RMB
Items Closing balance Opening balance
Fixed assets 9794453949.92 7730363778.82
Fixed assets liquidation
Total 9794453949.92 7730363778.82
185Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
（1）Fixed assets
Unit: RMB
Items Buildings and Machinery and Transportation Office and otherstructures equipment vehicles equipment Total
Ⅰ. Original
book
value:
1.Opening
balance 4047371816.59 7015745758.89 48012520.72 288532729.20 11399662825.40
2. Increase
in current 950164204.20 1967641156.88 7678673.80 52960518.06 2978444552.94
period
（1）3236235.04207512183.223497438.365522349.09219768205.71
Acquisition
（2）
Transferred in
from 993309981.71 1789017640.72 4283999.06 51661588.65 2838273210.14
construction in
progress
（3）Increase
in business
merger
（4）
Converted
difference in -46382012.55 -28888667.06 -102763.62 -4223419.68 -79596862.91
Foreign
Currency
Statements
3. Decrease
in current 10209068.09 284362228.64 2646112.76 43016744.52 340234154.01
period
（1）
Disposal or 10209068.09 284362228.64 2646112.76 43016744.52 340234154.01
scrap
4.Closing
balance 4987326952.70 8699024687.13 53045081.76 298476502.74 14037873224.33
Ⅱ.Accumulated
depreciation
1.Opening
balance 757805108.30 2712789940.74 29589671.69 144827742.27 3645012463.00
2. Increase
in current 147925794.55 617433126.96 4867365.34 41528485.97 811754772.82
period
（1）Accrual 154574474.19 627187615.44 4882751.71 44002932.42 830647773.76
(2) Converted
difference in
Foreign -6648679.64 -9754488.48 -15386.37 -2474446.45 -18893000.94
Currency
Statements
3. Decrease
in current 4641832.76 208592861.04 2552155.23 34856596.59 250643445.62
period
186Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
（1）Disposal 4641832.76 208592861.04 2552155.23 34856596.59 250643445.62
or scrap
4.Closing
balance 901089070.09 3121630206.66 31904881.80 151499631.65 4206123790.20
Ⅲ. Provision
for
impairment
1.Opening
balance 23829156.84 457426.74 24286583.58
2. Increase
in current 20848890.81 33375.46 20882266.27
period
（1）Accrual 20848890.81 33375.46 20882266.27
3. Decrease
in current 7843017.56 30348.08 7873365.64
period
（1）Disposal 7843017.56 30348.08 7873365.64
or scrap
4.Closing
balance 36835030.09 460454.12 37295484.21
Ⅳ. Carrying
amount
1.Closing
balance 4086237882.61 5540559450.38 21140199.96 146516416.97 9794453949.92
2.Opening
balance 3289566708.29 4279126661.31 18422849.03 143247560.19 7730363778.82
（2）Temporarily idle fixed assets
Unit: RMB
Item Original book Accumulated Impairmentvalue Net book value Notesdepreciation provision
Machinery and
equipment 69871920.63 33036890.54 36835030.09
Office equipment
665001.21204547.09460454.12
and others
（3）Fixed assets leased out through operating leases
Unit: RMB
Item Closing balance
Buildings and structures 38026861.17
（4）Fixed assets with certificate of titles being unsettled
Unit: RMB
Item Carrying amount Reasons for unsettlement
Sitong new factory1# production New assets the certificate of title to
workshop and power workshop 33847785.02 be processed uniformly after the
187Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
overall completion
Parts accessories and Class A New assets the certificate of title to
warehouse in the new factory of 22162902.96 be processed uniformly after the
Sitong overall completion
Pump and auxiliary room in the new New assets the certificate of title to
factory of Sitong 16455564.68 be processed uniformly after theoverall completion
New assets the certificate of title to
Dormitory of Sitong 1#&2# 57156676.44 be processed uniformly after the
overall completion
Factory 13-16# in Meichu North New assets the certificate of title to
District 177176302.49 be processed uniformly after theoverall completion
Finished product warehouse and New assets the certificate of title to
Class A warehouse in Meichu North 19619414.76 be processed uniformly after the
District overall completion
Power tooling experimental testing New assets the certificate of title to
and R&D testing workshop in 1-8 # 416651516.44 be processed uniformly after the
of Commercial overall completion
Commercial refrigeration product
warehouse raw material warehouse New assets the certificate of title to
Class A warehouse and Class C 60881519.47 be processed uniformly after the
warehouse overall completion
New assets the certificate of title to
Commercial dormitory 1-4# 144730686.60 be processed uniformly after the
overall completion
Commercial canteens training New assets the certificate of title to
buildings etc 37825556.72 be processed uniformly after theoverall completion
New assets the certificate of title to
Commercial assisted buildings 18097804.23 be processed uniformly after the
overall completion
New assets the certificate of title to
1 # Super workshop and power plant 665359009.27 be processed uniformly after the
overall completion
New assets the certificate of title to
New Energy 3-5# Dormitory 182905582.62 be processed uniformly after the
overall completion
Heat exchanger 9 # production New assets the certificate of title to
workshop 84531250.07 be processed uniformly after theoverall completion
Wuhu Sanhua Automatic Control New assets the certificate of title to
dormitory 67557135.21 be processed uniformly after theoverall completion
（5）Impairment testing of fixed assets
√ Applicable □ Not Applicable
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair
value
√ Applicable □ Not Applicable
Unit: RMB
188Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Key parameters
Determination of
Recoverable Impairment and the
Item Book value fair value and
amount amount determination
disposal costs
basis
Machinery and Full provision for
equipment 20848890.81 20848890.81 impairment
Office and
other Full provision for33375.46 33375.46
equipment impairment
Total 20882266.27 20882266.27
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not Applicable
13. Construction in progress
Unit: RMB
Items Closing balance Opening balance
Construction in progress 2171985301.79 2036326757.72
Total 2171985301.79 2036326757.72
（1）Details of construction in progress
Unit: RMB
Closing balance Opening balance
Items Provision for Carrying ProvisionBook balance Book balance for Carryingimpairment amount impairment amount
Annual
production of
12 million sets
of intelligent
thermal
management
components of 51157823.83 51157823.83 259331934.09 259331934.09
new energy
vehicles
technical
renovation
project
Annual
production of
12.5 million
sets of
intelligent
thermal 23395885.64 23395885.64 208351289.28 208351289.28
management
module for new
energy vehicles
construction
189Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
project
Annual
production of 8
million sets of
intelligent
thermal 69617800.61 69617800.61 186106762.72 186106762.72
management
component
project
Sanhua Minshi
Automotive
investment 21
million euros to
establish a new 87414582.47 87414582.47 138550445.99 138550445.99
automotive
parts
production line
project
Industrial Plant
Engineering in 13597940.07 13597940.07 128804884.71 128804884.71
Mexico
The new
energy vehicle
thermal
management
parts 684266101.06 684266101.06 113445275.23 113445275.23
production
project in
Guangdong
Sanhua
Annual
production of
1.5 million sets
new energy
thermal 11496626.55 11496626.55 87649308.50 87649308.50
management
component
project
Annual output
of 11 million
sets of high
efficiency heat
exchange 131312189.55 131312189.55 87188916.55 87188916.55
component for
new energy
vehicles project
Dormitory of
Automotive 123872435.82 123872435.82 77248786.37 77248786.37
150-3#-6#
Rental
dormitory 73709950.00 73709950.00
buildings
Annual output
of 14 million
sets of new 32026363.72 32026363.72 66609673.61 66609673.61
energy cooling
190Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
component
technology
renovation
project
Annual output
of 11 million
sets of
components 61306246.90 61306246.90
technical
renovation
projects
5 million sets
of technical
renovation 157627221.46 157627221.46 28032778.68 28032778.68
projects and
equipment
Vietnam
Industrial Plant 97324396.85 97324396.85 27351178.96 27351178.96
Engineering
Annual output
of 3 million
sets of thermal
management
components for
new energy 11556497.72 11556497.72 24537513.20 24537513.20
vehicles
technical
renovation
project
Annual output
of 4 million
sets of heat
pump
components for
new energy 12509834.13 12509834.13 16303564.10 16303564.10
vehicles
technical
renovation
project
Annual output
of 65 million
sets of
intelligent
control
components for 9849391.27 9849391.27 14882282.34 14882282.34
commercial
refrigeration
and air
conditioning
project
Sanhua new
energy vehicle
battery water
cooled plate 51862454.69 51862454.69 13525758.03 13525758.03
production line
construction
project
191Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Annual output
of 3 million
sets of plate
heat exchange
units and
annual output
of 2 million 11493210.78 11493210.78
sets of EXV
electronic
expansion
valve
components
project
Annual Output
of 50 million
Sets of new
energy vehicle
domain control
and CO2
thermal 16939625.33 16939625.33
management
system
components
technology
transformation
project
Annual Output
of 20 million
Sets of thermal
management 17421829.50 17421829.50
components for
new energy
vehicles project
Poland auto
parts plant 63112137.86 63112137.86
project
Shenyang auto
parts plant 55276912.51 55276912.51 7979602.26 7979602.26
project
Thailand
microchannel 45355154.15 45355154.15 22102023.60 22102023.60
pant project
others 404992097.00 404992097.00 381815371.82 381815371.82
Total 2171985301.79 2171985301.79 2036326757.72 2036326757.72
（2）Changes of significant construction in progress in current period
Unit: RMB
Transferred Accumulate Completio
Openin Increased in to fixed Other d n
Items Budget g current assets in amountsdecreased in Closing balance investment percentagbalance period the current
period current period
to budget e
(%)(%)
Annual 178055 1488228 147156457.5 152189348.5 9849391.27 81.11% 81.11%
192Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
production 0000.00 2.34 0 7
of 65
million
sets of
commerci
al
refrigerati
on and air
conditioni
ng
intelligent
control
componen
ts
constructi
on project
Annual
output of
50.5
million
sets of
high
efficiency
and energy 785570 121551440.4 121551440.4 40.96% 40.96%
saving 000.00 8 8
refrigerati
on and air
conditioni
ng control
componen
ts project
Annual
production
of 8
million
sets of
intelligent ＄15000 1861067 207694398.7 324183360.8 69617800.61 35.55% 35.55%
thermal 0000.00 62.72 3 4
manageme
nt
componen
ts project
Annual
production
of 1.5
million
sets of
new 650500 8764930 101198075.9
energy 25045393.99 11496626.55 136.20% 99.99%000.00 8.50 4
thermal
manageme
nt
componen
ts project
Annual
output of 940000 8718891 287433887.7 243310614.7 131312189.55 98.00% 98.00%
11 million 000.00 6.55 9 9
193Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
sets of
new
energy
vehicles
high
efficiency
heat
exchanger
assembly
project
Annual
output of
12.5
million
sets
intelligent
thermal 137265 2083512 315184511.6 500139915.2
manageme 23395885.64 38.14% 38.14%0000.00 89.28 1 5
nt module
for new
energy
vehicles
constructi
on project
The new
energy
vehicle
thermal
manageme 205000 1134452 579812066.7
nt parts 8991240.87 684266101.06 33.81% 33.81%0000.00 75.23 0
production
project in
Guangdon
g Sanhua
Total 6976238 1683878156 1451563996. 929937994.6834.62 .80 74
During the period construction in progress was financed by own funds and funds raised and no interest
was capitalized.
（3）Impairment testing of construction in progress
□ Applicable √ Not Applicable
14.Right of use assets
（1）Details of right of use assets
Unit: RMB
Items Houses and buildings Vehicle Total
Ⅰ. Original Carrying
amount
1.Opening balance 515115808.59 9520959.07 524636767.66
2.Increased in current
period 182779161.47 364624.70 183143786.17
194Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
(1) Rent 187143888.81 750941.17 187894829.98
(2) Converted difference in
Foreign Currency -4364727.34 -386316.47 -4751043.81
Statements
3.Decreased in current
period 147909194.85 2170431.24 150079626.09
(1) Disposal 147909194.85 2170431.24 150079626.09
4.Closing balance 549985775.21 7715152.53 557700927.74
Ⅱ. Accumulated
amortization
1.Opening balance 208527758.51 2854263.62 211382022.13
2.Increased in current
period 115548813.42 -32071.31 115516742.11
(1) Accrual 117071690.21 88470.32 117160160.53
(2) Converted
difference in Foreign -1522876.79 -120541.63 -1643418.42
Currency Statements
3. Decreased in
current period 105431122.99 351593.51 105782716.50
(1) Disposal 105431122.99 351593.51 105782716.50
4.Closing balance 218645448.94 2470598.80 221116047.74
Ⅲ. Provision
for impairment
1.Opening balance
2. Increased in current
period
（1）Accrual
3. Decreased in
current period
（1）Disposal
4.Closing balance
Ⅳ. Carrying amount
1.Closing balance 331340326.27 5244553.73 336584880.00
2.Opening balance 306588050.08 6666695.45 313254745.53
（2）Details of impairment testing of right-of-use assets
□ Applicable √ Not Applicable
15. Intangible Assets
（1）Details of intangible assets
Unit: RMB
Items Land use right Overseas land Application Intellectualownership software property Total
195Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Ⅰ. Original Carrying
amount
1.Opening balance
831065742.5487865763.7459242753.8052824940.361030999200.44
2.Increased in
current period
176830006.5382129791.4618235367.03277195165.02
（1）
Acquisition 178710679.65 93628162.97 18869391.77 291208234.39
（2）Internal
research and
development
（3）Increased
in business merger
（4）Converted
difference in Foreign
Currency Statements
-1880673.12-11498371.51-634024.74-14013069.37
3.Decreased in
current period 848519.60 16143875.56 16992395.16
（1）Disposal 848519.60 16143875.56 16992395.16
4.Closing balance 1007895749.07 169995555.20 76629601.23 36681064.80 1291201970.30
Ⅱ.Accumulated
amortization
1.Opening balance 120494299.60 739235.92 35248356.61 30651015.49 187132907.62
2.Increased in
current period 18655818.42 11032.13 15692807.77 11581530.18 45941188.50
196Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
（1）Accrual 18449727.98 16153522.17 11581530.18 46184780.33
（2) Converteddifference in Foreign 206090.44 11032.13 -460714.40 -243591.83
Currency Statements
3. Decreased in
current period 239532.68 16143875.56 16383408.24
（1）Disposal 239532.68 16143875.56 16383408.24
4.Closing balance 139150118.02 750268.05 50701631.70 26088670.11 216690687.88
Ⅲ. Provision
for impairment
1.Opening balance
2. Increased in
current period
（1）Accrual
3. Decreased in
current period
（1）Disposal
4.Closing balance
Ⅳ. Carrying amount
1.Closing balance 868745631.05 169245287.15 25927969.53 10592394.69 1074511282.42
197Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2.Opening balance 710571442.94 87126527.82 23994397.19 22173924.87 843866292.82
At the end of this period the proportion of intangible assets formed through internal research and
development of the company to the balance of intangible assets is 0.00%.
16. Goodwill
（1）Original Carrying amount of goodwill
Unit: RMB
Investee or Increased in current period Decreased in current period
events Opening Due to Closing
resulting in balance business Disposal balance
goodwill combination
R-Squared
Puckett Inc. 31959091.60 31959091.60
Goodwill of
Asset Group of
Zhejiang
Sanhua plate 5839387.56 5839387.56
Exchange
Technology
Co. Ltd
Goodwill of
Non-Asset
Group of
Zhejiang
Sanhua plate 1752443.05 1752443.05
Exchange
Technology
Co. Ltd
Total 39550922.21 39550922.21
（2）Provision for goodwill impairment
Unit: RMB
Investee or Increased in current Decreased in current
events
resulting in Opening balance
period period
Provision Closing balanceDisposal
goodwill made
R-Squared
Puckett Inc. 31959091.60 31959091.60
Goodwill of
Asset Group
of Zhejiang
Sanhua plate 5839387.56 5839387.56
Exchange
Technology
Co. Ltd
Goodwill of
Non-Asset 806602.57 945840.48 1752443.05
198Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Group of
Zhejiang
Sanhua plate
Exchange
Technology
Co. Ltd
Total 32765694.17 6785228.04 39550922.21
（3）Information about the asset group or combination of asset groups in which the goodwill is located
Goodwill of Non-Asset Group of Zhejiang Sanhua plate Exchange Technology Co. Ltd. refers to the
goodwill formed by recognizing deferred income tax liabilities for asset valuation appreciation the goodwill
generated when Zhejiang Sanhua Commercial Co. Ltd. acquired and merged Zhejiang Sanhua plate Exchange
Technology Co. Ltd. under non-common control the goodwill impairment loss is provisioned synchronously
with the reversal of deferred tax liabilities.
17. Long-term prepayments
Unit: RMB
Items Opening Increased inbalance current period Amortization Other decreases Closing balance
Rental housing
construction
and 91089761.84 65801792.06 18017890.04 138873663.86
transformation
expenditure
Expenditures on
tooling and 27006674.25 47404582.01 15311689.08 59099567.18
molds
Home purchase
borrowing 2691209.71 2691209.71
Total 118096436.09 115897583.78 33329579.12 200664440.75
18. Deferred tax assets / deferred tax liabilities
（1）Deferred tax assets before offset
Unit: RMB
Closing balance Opening balance
Items Deductible temporary Deferred tax Deductible temporary Deferred tax
difference assets difference assets
Provision for bad
debt 326849301.89 69943332.36 261315206.58 54641190.49
Provision for
inventory write-down 43998128.38 8173456.58 42325391.26 8139006.84
Unrealized profit
from internal 448402964.21 34420003.98 433833345.36 34546191.69
transactions
Deductible losses 103831524.35 15574728.65 76215945.95 18485636.55
Deferred income-
government grants 607151143.89 95572671.35 378102855.53 68133180.61
Provision for fixed 29655449.24 4448317.51 20614046.13 3102355.15
199Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
assets impairments
Lease liabilities 148436132.18 29100767.41 85136567.36 16775016.78
Share-based payment
expenses (accounting 157883504.75 24246236.51 115180902.79 17742289.08
standards)
Floating loss of
derivative 1638625.00 245793.75 1228538.00 184280.70
instruments
Total 1867846773.89 281725308.10 1413952798.96 221749147.89
（2）Deferred tax liabilities before offset
Unit: RMB
Closing balance Opening balance
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Appreciation of
assets appraisal of the
business
combinations not 9008004.60 1351200.69
under common
control
Asset depreciation 2571351484.51 388942087.41 2047041074.93 324214511.19
Floating gain on
derivatives 1187202.48 178080.37 1463100.00 219465.00
Floating gain on
financial products 764300.00 191075.00
Accrued interest of
certificate of deposit 35348090.40 5302213.56 191331258.62 30267866.29
Right-of-use assets 165465739.82 32676985.01 85136567.36 16775016.78
Total 2774116817.21 427290441.35 2333980005.51 372828059.95
（3）Deferred tax assets or liabilities after offset shown on a net offsetting basis
Unit: RMB
Deferred tax assets Closing balance of Deferred tax assetsand liabilities offset deferred tax assets and liabilities offset
Opening balance of
Items amount at the end amount at the deferred tax assets
of the balance or liabilities after beginning of the or liabilities after
amount offset balance amount offset
Deferred tax assets 169026466.57 112698841.53 65316990.66 156432157.23
Deferred tax
liabilities 169026466.57 258263974.78 65316990.66 307511069.30
（4）Details of unrecognized deferred tax assets
Unit: RMB
Items Closing balance Opening balance
Provision for bad debt 63158602.83 66300549.08
Provision for inventory write-down 81602936.43 71954359.29
200Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Deductible losses of subsidiaries 343483589.64 280085140.01
Investment losses recognized by the equity
method 8925362.13 20324431.29
Floating loss on derivatives 78039493.93 9490572.02
Deferred income-government grants 603134.91 1037186.95
Total 575813119.87 449192238.64
（5）Deductible losses of unrecognized deferred tax assets will expire in the following years
Unit: RMB
Maturity years Closing balance Opening balance Remarks
Year 2025 1160674.55 1160674.55
Year 2026 521923.98 521923.98
Year 2027 18275346.16 23055008.78
Year 2028 71351566.57 74714376.64
Year 2029 77949676.95 16716170.44
Year 2030 12549643.88 12549643.88
Year 2031 69321405.03 69321405.03
Year 2032 3108373.33 6336459.07
Year 2033 58952640.71 75709477.64
Year 2034 30292338.48
Total 343483589.64 280085140.01
19. Other non-current assets
Unit: RMB
Closing balance Opening balance
Items Provision ProvisionBook balance for Carrying Book balance for Carrying
impairment amount impairment amount
Advanced
payment for
non-current 311120963.93 311120963.93 564023136.83 564023136.83
assets
purchasing
Total 311120963.93 311120963.93 564023136.83 564023136.83
20. Assets with title or use right restrictions
Unit: RMB
Closing Opening
Items Book Carrying Type of Reasons Book Carrying Type of Reasons
balance amount restriction fors restriction balance amount
restriction for
s restriction
201Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
s s
Cash and
bank 62214705. 62214705. Pledge Guarantee 76476700. 76476700. Pledge Guaranteedeposit deposit
balances 42 42 95 95
Cash and
bank 3199267.5 3199267.5 Pledge Litigation 28157037 28157037 Pledge Pledgefreeze
balances 0 0 9.73 9.73
financing
Notes
receivabl 18394616 18394616 Pledge Pledge 22143638 22084468 Pledge06.51 06.51 financing Pledge80.38 69.75 financinge
Digital and Digital and
electronic electronic
debt debt
Accounts vouchers vouchers
receivabl 84120090. 79914086. Restriction that have 66621446. 63290374. Restriction that have
81 27 s on use been 85 51 s on use beene endorsed or endorsed or
discounted discounted
but are not but are not
due due
Total 19889956 19847896 26390324 26297843
70.2465.7007.9124.94
21. Short-term borrowings
（1）Categories of short-term borrowings
Unit: RMB
Items Closing balance Opening balance
Credit borrowings 630000000.00 200000000.00
Overseas loan under domestic
guarantee 896728880.47 1002451361.04
Financial asset discount financing 22016350.29 5748871.44
Accrued interest 4600420.40 3950146.37
Total 1553345651.16 1212150378.85
22. Trading financial liabilities
Unit: RMB
Items Closing balance Opening balance
Trading financial liabilities 3500000.00
Including:
Contingent consideration for
business merge 3500000.00
Including:
Total 3500000.00
23. Derivative financial liabilities
Unit: RMB
Items Closing balance Opening balance
Exchange rate derivative 76859519.31 10719110.02
202Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Futures derivative 2818599.62
Total 79678118.93 10719110.02
24. Notes payable
Unit: RMB
Categories Closing balance Opening balance
Bank acceptance 3791834944.38 3416711594.64
Total 3791834944.38 3416711594.64
25. Accounts payable
（1）Details of accounts payable
Unit: RMB
Items Closing balance Opening balance
Within 1 year 5879226937.77 4405227329.99
1 to 2 years 86393278.56 27522682.35
2 to 3 years 11380750.49 10155105.49
Over 3 years 8426041.97 7035241.98
Total 5985427008.79 4449940359.81
26. Other payables
Unit: RMB
Item Closing balance Opening balance
Interest payables 1894919.92
Dividend payables 2528280.00
Other payables 540988960.38 250642662.86
Total 545412160.30 250642662.86
（1）Interest payables
Item Closing balance Opening balance
Interest on borrowings 1894919.92
Total 1894919.92
（2）Dividend payables
Item Closing balance Opening balance
Dividends to minority shareholders
of subsidiaries 2528280.00
Total 2528280.00
（3）Other payables
1）Other payables listed by nature
Unit: RMB
Items Closing balance Opening balance
Restricted shares repo obligations 354074424.29 118010274.29
203Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Guarantee deposit 40069013.70 41716593.20
Interbank borrowings 27085752.88 27591919.18
Compensation for product quality
loss 22691316.63 19370760.58
Risk responsibility fee 19192202.00
Intermediary service fee for H-share
filing 9242068.00
Stock appreciation rights risk deposit 7707817.97
Option fee 5050000.00
Rent and property fee 4433252.17 2401192.28
Collection of talent awards 1021052.17 4114516.00
Others 50422060.57 37437407.33
Total 540988960.38 250642662.86
27. Contract liabilities
Unit: RMB
Items Closing balance Opening balance
Customer contract advance
payment 49461722.83 51788802.03
Total 49461722.83 51788802.03
28. Employee benefits payable
（1）Details of employee benefits payable
Unit: RMB
Items Opening Increased in Decreased inbalance current period current period Closing balance
Ⅰ. Short-term employee benefits 581554274.99 4198434261.38 4070738034.39 709250501.98
Ⅱ. Post-employment benefits - 12017618.66 152166051.91 150582162.91 13601507.66
defined contribution plan
Ⅲ. Termination benefits 5229352.69 6673376.86 8753260.30 3149469.25
Total 598801246.34 4357273690.15 4230073457.60 726001478.89
（2）Details of Short-term employee benefits
Unit: RMB
Items Opening balance Increased in current Decreased in currentperiod period Closing balance
1. Wage bonus
allowances and 528759992.88 3128629052.77 3029172976.80 628216068.85
subsidy
2. Employee welfare
fund 805549.18 192185992.97 192991542.15 0.00
3. Social insurance
premium 6485922.75 90585168.30 89657191.04 7413900.01
Including:
Medicare premium 5616918.92 83368940.77 82112773.67 6873086.02
Occupational injuries
premium 747127.97 7216227.53 7422541.51 540813.99
Maternity premium 121875.86 0.00 121875.86 0.00
204Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
4. Housing provident
fund 19286.00 88759464.05 88742255.17 36494.88
5.Overseas social
security contributions 12235847.63 151968086.56 144043435.22 20160498.97
6.Dispatching
remuneration 23811068.55 503421088.01 498818113.08 28414043.48
7.Profit sharing plan 0.00 13375400.19 0.00 13375400.19
8. Stock appreciation
option 7879890.00 2606390.00 1288980.00 9197300.00
9.Other 1556718.00 26903618.53 26023540.93 2436795.60
Total 581554274.99 4198434261.38 4070738034.39 709250501.98
（3）Details of defined contribution plan
Unit: RMB
Items Opening Increased in current Decreased in current Closingbalance period period balance
1. Basic endowment insurance
premium 11603727.01 147098635.86 145599971.33 13102391.54
2. Unemployment insurance
premium 413891.65 5067416.05 4982191.58 499116.12
Total 12017618.66 152166051.91 150582162.91 13601507.66
29. Taxes payable
Unit: RMB
Items Closing balance Opening balance
Enterprise income tax 118969383.22 186575216.87
VAT 36186055.27 30168036.77
Urban maintenance and
construction tax 6226349.92 5330039.26
Education surcharge 2840421.75 2459912.39
Local education surcharge 1893614.54 1639941.61
Housing property tax 25291596.40 23482515.63
Land use tax 14321852.38 12974469.60
Overseas tax 83321755.69 99516370.91
Individual income tax 14143021.77 12843108.53
Others 6680382.98 7407179.62
Total 309874433.92 382396791.19
30. Non-current liabilities due within one year
Unit: RMB
Items Closing balance Opening balance
Guaranteed borrowings 1370000000.00
Credit borrowings 500000000.00
Accrued interest 420291.67 1195277.78
Lease liabilities 90573660.45 68897976.15
Total 590993952.12 1440093253.93
205Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
31. Other current liabilities
Unit: RMB
Items Closing balance Opening balance
Output tax to be written off 1274402.83 2099986.27
Total 1274402.83 2099986.27
32. Long-term borrowings
（1）Categories of long-term borrowings
Unit: RMB
Items Closing balance Opening balance
Guaranteed borrowings 1030000000.00
Credit borrowings 2044000000.00
Accrued interest 1772594.73 801111.13
Total 2045772594.73 1030801111.13
33.Leased liabilities
Unit: RMB
Items Closing balance Opening balance
Lease payables 361987999.06 297708584.83
Unrecognized financing costs -33501329.10 -7515126.82
Leased liabilities due within 1 year -90573660.45 -68897976.15
Total 237913009.51 221295481.86
34. Long-term payables
Unit: RMB
Items Closing balance Opening balance
Long-term payables 11290788.32
Total 11290788.32
（1）Long-term payables listed by nature
Unit: RMB
Items Closing balance Opening balance
Stock appreciation rights deposit 3499818.32
Retention money 7790970.00
35.Long-term employee benefits payable
（1）Table of long-term employee benefits payable
Unit: RMB
Items Closing balance Opening balance
Long-term employee rights protection funds 33943063.56 39840362.77
Total 33943063.56 39840362.77
206Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
36. Deferred income
Unit: RMB
Items Opening Increased in current Decreased inbalance period current period Closing balance
Reasons for
balance
Government
grants 379140042.48 277350770.05 48736533.73 607754278.80
Related to
assets
Total 379140042.48 277350770.05 48736533.73 607754278.80 --
37. Other non-current liabilities
Unit: RMB
Items Closing balance Opening balance
Engineering agent construction
fund 18154107.25 18154107.25
Total 18154107.25 18154107.25
38. Share capital
Unit: RMB
Changed amount of current period（+/-）
Issue
Opening balance of Bonus Reserve Closing balance
new shares transferred Others Subtotal
shares to shares
Total
shares 3732615535.00 -226000.00 -226000.00 3732389535.00
Other remarks:
In the current period 226000 shares were reduced due to the repurchase and cancellation of restricted shares.
39. Capital reserve
Unit: RMB
Items Opening balance Increased in current Decreased inperiod current period Closing balance
Capital premium
（Share 3296004248.86 39323925.00 286868800.00 3048459373.86premium）
Other capital
reserve 159639317.12 109070573.06 45855986.56 222853903.62
Total 3455643565.98 148394498.06 332724786.56 3271313277.48
40. Treasury shares
Unit: RMB
Items Opening balance Increased in current Decreased inperiod current period Closing balance
Restricted shares 118009850.00 292692500.00 56628350.00 354074000.00
207Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Repo shares 305458741.57 299977735.21 577662900.00 27773576.78
Total 423468591.57 592670235.21 634291250.00 381847576.78
41. Other comprehensive income (OCI)
Unit: RMB
Changed amount of the current period
Less:
OCI Less: OCI AttributaCurrent carried carried Less:
Attributabl
e to ble to
Items Opening period forward incom Non- Closingbalance cumulative forwardtransferr transferred e tax
the parent
Company controllin balancebefore ed to to expen after gincome tax profit or undistribut se interest
loss ed profit
tax after tax
Items to be
reclassified - - -
subsequentl 114757064 253119717 253119717 138362653
y to profit .28 .76 .76 .48
or loss
---
Converted 114757064 253119717 253119717 138362653
difference .28 .76 .76 .48
in Foreign
Other
comprehens - - -114757064
ive income 253119717 253119717 138362653.28
in total .76 .76 .48
42. Surplus reserve
Unit: RMB
Items Opening Increased in current Decreased in currentbalance period period Closing balance
Statutory surplus reserve 985419187.09 152050641.42 1137469828.51
Discretionary surplus
reserve 8681137.20 8681137.20
Reserve fund 17813919.38 17813919.38
Total 1011914243.67 152050641.42 1163964885.09
Remarks on surplus reserve including movement in current period and the reason for changes:
This period increased by RMB 152050641.42 according to the parent company's current net profit 10%
of the statutory surplus reserve.
43. Undistributed profit
Unit: RMB
Items Current period Previous period
Balance after adjustment at the end of the
previous period 10002942167.43 8133336242.88
Add: Net profit attributable to shareholders
of the parent Company for current year 3099165128.06 2920992940.01
Less: Appropriation of statutory surplus 152050641.42 148391184.66
208Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
reserve
Payable dividends on ordinary shares 1299745014.90 902995830.80
Closing balance 11650311639.17 10002942167.43
44. Operating revenue and Operating cost
Unit: RMB
Items Current period cumulative Preceding period comparativeRevenue Cost Revenue Cost
Main operations 27123003867.37 19528781317.88 23942063896.26 17222868860.02
Other operations 824160648.56 741052236.60 615738170.33 550990104.10
Total 27947164515.93 20269833554.48 24557802066.59 17773858964.12
After deducting non-recurring profit or loss by audit whether the net profit is negative or not
□ Applicable √ Not Applicable
45. Taxes and surcharges
Unit: RMB
Items Current period cumulative Preceding period comparative
Urban maintenance and construction
tax 49043125.00 41620164.98
Education surcharge 23641474.55 20384359.04
Local education surcharge 15791831.37 13605572.72
Housing property tax 31759148.64 28446815.02
Land use tax 15265300.38 5066854.78
Stamp duty 22738472.95 21392535.74
Local foundation for water works 1350007.41 1145402.41
Overseas taxes and fees 10050417.90 8030714.76
Others 1636869.96 123603.05
Total 171276648.16 139816022.50
46. General and administrative expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Labor cost 1038779366.49 871450950.33
Share-based payment
remuneration 46874437.58 51167739.35
Depreciation and amortization
expense 175058947.44 134971322.17
Office expense 288291005.36 217169017.48
Intermediary organ expense 94216117.91 78105298.36
Relocation payment 20589497.91
Entertainment expense 27392296.32 24892269.92
Vehicle expense 22226179.29 18256637.96
Sporadic renovation expense in the
park 51032505.48 23581176.29
Security fund for the disabled 2768178.24 5838805.65
Others 20815288.05 30311456.93
Total 1767454322.16 1476334172.35
209Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
47 Selling expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Labor cost 396104926.62 331659767.15
Share-based payment of
remuneration 14872075.64
Warehousing freight and
miscellaneous charges 119411615.55 102848591.91
Entertainment expense 69549661.34 62370229.50
Travel expense 48639067.37 42454354.33
Advertising expense 30737660.07 24044549.16
Others 47122224.87 34188146.20
Total 726437231.46 597565638.25
Other remarks:As a result of the implementation of “Interpretation of China Accounting Standards for BusinessEnterprises No. 18” the Company retroactively corrected the presentation of product warranty fees in 2023 by
reclassifying them from “Selling expenses” to “Cost of sales”.
48. R&D expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Labor cost 764779384.09 586262227.24
Share-based payment of
remuneration 45400398.91
Direct input expense 439535792.28 425272233.05
Depreciation and amortization
expense 50675445.97 42222750.79
Royalties 16159725.11 12029990.63
Outsourcing R&D expense 3756220.44 1187512.67
Others 31491819.70 29859510.03
Total 1351798786.50 1096834224.41
49. Financial expenses
Unit: RMB
Items Current period cumulative Preceding period comparative
Interest expense 152267440.63 212081658.78
Interest income -130315478.18 -159145071.07
Exchange gains or losses -83153926.15 -133515123.19
Income from derecognition of
financial assets measured at 9296640.32
amortized cost
Others 8122939.85 7827155.19
Total -43782383.53 -72751380.29
210Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
50. Other income
Unit: RMB
Source of the other income Current period cumulative Preceding period comparative
Government subsidies related to
assets 48736533.73 38505871.41
Government subsidies related to
revenue 156546385.56 110601829.40
VAT extra deductions 21948485.83 37270140.16
Handling fees for withholding tax 1974520.26 1877422.09
51. Gains or losses on changes in fair value
Unit: RMB
Items Current period cumulative Preceding period comparative
Financial assets held for trading
(floating gains and losses on bank -25980.08
financial products)
Floating gains and losses on
futures contracts -3010560.26 -3400201.17
Floating gains and losses on
foreign exchange contract -87723049.24 51549703.59
Total -90733609.50 48123522.34
52. Investment income
Unit: RMB
Items Current period cumulative Preceding period comparative
Investment income from long-term
equity investments under equity method 8925362.13 7986227.16
Gains and losses on bank financial
products 7022483.08 171131.50
Gains and losses on bank financial
products during the holding period 5920200.00
Gains and losses on exchange rate
derivatives -55218517.77 -150933667.67
Gains and losses on futures derivatives 11602521.92 12909340.21
Income from derecognition of financial
assets measured at amortized cost -5619589.87
Advance payment gains 5468084.69 4032630.05
Total -16279865.95 -131453928.62
53. Credit impairment loss
Unit: RMB
Items Current period cumulative Preceding period comparative
Provision for bad debt -56378564.98 -51477741.58
Total -56378564.98 -51477741.58
211Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
54 Assets impairment loss
Unit: RMB
Items Current period cumulative Preceding period comparative
I. Inventory write-down loss and
contract performance cost -35253817.89 -41206282.08
impairment loss
Ⅳ. Impairment loss of fixed assets -20882266.27 -13364006.60
Ⅹ. Goodwill impairment loss -6785228.04 -806602.57
Total -62921312.20 -55376891.25
55. Gains on asset disposal
Unit: RMB
Items Current period cumulative Preceding period comparative
Gains on disposal of assets 3016317.77 8741208.41
56. Non-operating revenue
Unit: RMB
Items Current period Preceding period Amount recorded into the current non-cumulative comparative recurring profit and loss
Exempted payment 1486141.05 7200691.96 1486141.05
Compensation and
penalty income 3014752.68 3348736.31 3014752.68
Gains from retirement of
fixed assets 119462.59 1419940.46 119462.59
Gains from acquisition of
equity 2097001.82 2097001.82
Others 2931604.74 2963564.66 2931604.74
Total 9648962.88 14932933.39 9648962.88
57. Non-operating expenditures
Unit: RMB
Items Current period Preceding period Amount included in non-cumulative comparative recurring profit or loss
Losses on retirement of
fixed assets 17730289.97 11318566.98 17730289.97
Litigation for damages 8107136.89 1169762.74 8107136.89
Others 2180374.12 2136968.30 2180374.12
Total 28017800.98 14625298.02 28017800.98
58. Income tax expenses
（1）Income tax expenses
Unit: RMB
212Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Items Current period cumulative Preceding period comparative
Current period income tax expenses 588438788.90 537385513.45
Deferred income tax expenses -8478182.12 82163240.54
Total 579960606.78 619548753.99
（2）Reconciliation of accounting profit to income tax expenses
Unit: RMB
Items Current period cumulative
Income before tax 3691686409.12
Income tax expense calculated at the applicable tax rate 688073677.14
Adjustment of preliminary income tax expense
settlement and payment 8763056.88
Plus deduction of R&D expenses -152335338.10
The difference between tax and accounting standards
for convertible corporate bonds
Effect of utilization of deductible losses not previously
recognized as deferred tax assets 19852227.40
Others 15606983.46
Income tax expenses 579960606.78
59. Other comprehensive income
Please refer to the notes of balance sheet items and other comprehensive income for details.
60. Notes to items of the consolidated cash flow statement
（1）Cash related to operating activities
Other cash receipts related to operating activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Government grants 375520971.27 238258666.39
Interest income 130315478.18 54287886.38
Rental income 19262208.26 11054740.49
Enterprise income tax remittance
refund 33298518.81
Guarantee deposit 16286416.39 28043128.73
Insurance indemnities 3014752.68 3348736.31
Other 5202346.13 4840986.75
Total 582900691.72 339834145.05
Other cash payments related to operating activities
Unit: RMB
Items Current period cumulative Preceding period comparative
213Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Frozen bank deposit 3199267.50
Guarantee deposit and Expense
payments 748117184.26 650619571.95
Total 751316451.76 650619571.95
（2）Cash related to investment activities
Other cash receipts related to investing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Redemption of brokerage financing
products 1301000000.00 100000000.00
Redemption of certificates of deposit 2602367660.18 962037101.21
Income from Futures contract
derivatives settlement 11602521.92 12909340.21
Restricted funds 26801109.49
Total 3914970182.10 1101747550.91
Important cash received related to investment activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Compensation for land collection
and storage 546216590.00
Total 546216590.00
Other cash payments related to investing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Purchase of brokerage financial
products 2395000000.00 4870158.51
Purchase of large certificates of
deposit 1395671527.63
Purchase of Treasury Bond Reverse
Repurchase 399999000.00
Loss on exchange rate derivatives
instrument settlement 55218517.77 150933667.67
restricted funds 2660828.24
Total 4248549873.64 155803826.18
Important cash payments related to investment activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Construction project of intelligent
control components for 121007400.00 309743621.56
214Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
commercial refrigeration and air
conditioning with an annual
production capacity of 65 million
sets
Efficient and energy-saving
refrigeration and air conditioning
control component technology
renovation project with an annual 116325643.10 149195510.91
production capacity of 50.5 million
sets
Total 237333043.10 458939132.47
（3）Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Restricted funds 16922823.77 15585461.73
Notes /Electronic debt voucher
discount financing 22016350.22 16289050.35
Profit Sharing Plan Deposit 19192202.00
Deposit of Stock appreciation right 4207999.65
Total 62339375.64 31874512.08
Other cash payments related to financing activities
Unit: RMB
Items Current period cumulative Preceding period comparative
Repo shares expenses 299977735.21 190095426.04
Restricted stock repurchase expenses 2124400.00 1572760.00
Rental expenses 124009095.18 103809960.27
Restricted funds 26510463.54
Deposit of Stock appreciation right 1331383.81
Total 426111230.39 323319993.66
Changes in liabilities related to financing activities
√ Applicable□ Not Applicable
Unit: RMB
Increase Decrease
Items Opening Closingbalance Changes in Changes in Changes in Changes in balance
cash non-cash cash non-cash
Short-term 1212150378. 1553345651.borrowings 848662378.85 77877473.29 524967328.95 60377250.8885 16
Long-term
borrowings 2401996388. 1520000000. 1459852467. 2546192886.(including 84048964.7491 00 25 40
long-term
215Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
borrowings
due within
one year)
Lease
liabilities
(lease
liabilities due 290193458.01 206599216.72 124009095.18 44296909.59 328486669.96
within one
year)
Dividends 1315273294. 1312745014.payable 2528280.0090 90
Total 3904340225. 2368662378. 1683798949. 3421573906. 4430553487.104674160.47
7785652852
（4）Presentation of cash flows on a net basis
The cash flow related to corporate bank wealth management and large deposit certificate business refers to
the cash inflows and outflows of projects with large amounts and short maturities as presenting the above cash
flows on a net basis can better explain their impact on the Company’s payment ability and solvency and is more
helpful to evaluate the Company’s payment ability and solvency and analyze its future cash flows the Company
presents cash flows related to the above business on a net basis. If cash flows related to the above business are
presented on a gross basis effects on the Company’s cash flow statement are as follows:
Unit: RMB
Items Increase in the current Increase in the precedingperiod period
Other cash receipts related to investing activities 2940986500.00 150599133.34
Other cash payments related to investing activities 2940986500.00 150599133.34
（5）Significant activities not involving cash receipts and payments
Endorsed acceptance and digital electronic debt vouchers that do not involve cash receipts and payments
Unit: RMB
Items Current period Preceding periodcumulative comparative
Endorsed acceptance and digital electronic debt vouchers 281579934.53 190927646.72
Including:Payment for operating activities 279607560.43 186949115.96
Payment for investment activities 1972374.10 3978530.76
216Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
61. Supplement information to the cash flow statement
（1）Supplement information to the cash flow statement
Unit: RMB
Supplement information Current period cumulative Preceding period comparative
1. Reconciliation of net profit to
cash flow from operating activities: -- --
Net profit 3111725802.34 2933714738.99
Add: Provision for assets
impairment loss 119299877.18 106854632.83
Depreciation of fixed assets
oil and gas assets productive 949319337.78 771658318.39
biological assets
Amortization of right-of-use
assets
Amortization of intangible
assets 46184780.33 26610545.56
Amortization of Long-term
prepayments 33329579.12 28786355.23
Loss on disposal of
fixed assets intangible assets and -3016317.77 -8741208.41
other long-term assets (Less: gains)
Loss on retirement of
fixed assets (Less: gains) 17610827.38 9898626.52
Losses on changes in fair
value (Less: gains) 90733609.50 -48123522.34
Financial expenses (Less:
gains) 89172608.83 -26290649.10
Investment losses (Less: gains) 21747950.64 129866968.80
Decrease of deferred tax
assets (Less: increase) 43733315.70 64726517.25
Increase of deferred tax
liabilities (Less: decrease) -49247094.52 18753147.93
Decrease of inventories (Less:
increase) -718016907.59 -343250556.55
Decrease of operating
receivables (Less: increase) -1569723085.16 -1398918684.91
Increase of operating
payables (Less: decrease) 2076536089.83 1388702605.99
Others 107240574.77 69716518.45
Net cash flows from operating
activities 4366630948.36 3723964354.63
2. Significant investing and
financing activities not related to
cash receipts and payments:
Conversion of debt into capital 2837347315.20
New right-of-asset 187894829.98 117529342.96
3. Net changes in cash and cash
equivalents:
Cash at the end of the period 3443502489.90 3624955498.84
217Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Less: Cash at the beginning of
the period 3624955498.84 2050328601.77
Add: Cash equivalents at the
end of the period
Less: Cash equivalents at the
beginning of the period
Net increase of cash and cash
equivalents -181453008.94 1574626897.07
（2）Net cash paid during the period for acquisition of subsidiaries
Unit：RMB
Amount
Cash or cash equivalents paid during the period for
business combinations occurring during the period 7700000.00
Including：
Deducting：Cash and cash equivalents held by the
company on the date of purchase 818046.75
Including：
Including：
Net cash paid for acquisition of subsidiaries 6881953.25
（3）Composition of cash and cash equivalents
Unit: RMB
Items Closing balance Opening balance
I.Cash 3443502489.90 3624955498.84
Including: Cash on hand 166912.72 291216.13
Cash in bank that can be
readily drawn on demand 3443335577.18 3624655126.84
Other monetary funds that can
be readily for payment 9155.87
III. Cash and cash equivalents at end
of year 3443502489.90 3624955498.84
（4）Situations where the scope of use is limited but still classified as cash and cash equivalents
Unit: RMB
Current period Preceding period Reasons for still beingItems cumulative comparative classified as cash andcash equivalents
Fundraising special
Cash and bank balances 3828084.44 852004540.00 purpose ready for
withdrawal at any time
Total 3828084.44 852004540.00
（5）Cash and bank balances that do not belong to cash and cash equivalents
Unit: RMB
218Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Reasons that do not
Items Current period Preceding periodcumulative comparative belong to cash and cashequivalents
Principal and interest of Management intends to
deposit certificates 1739651183.39 2883252484.14 hold on to maturity
Margin deposit 18151490.33 35074314.10 Liquidity restricted
Futures contract margin 44063215.09 41402386.85 Liquidity restricted
Frozen bank deposit 3199267.50
Total 1805065156.31 2959729185.09
62. Monetary items in foreign currencies
（1）Monetary items in foreign currencies
Unit: RMB
Items Closing balance in foreign Exchange rate RMB equivalentcurrencies
Cash and Bank Balances
Including: USD 106344584.14 7.1884 764447408.64
EUR 18530256.98 7.5257 139453154.96
MXN 316724426.19 0.3498 110853549.17
Other currencies 92240013.58
Subtotal 1106994126.35
Accounts receivable
Including: USD 272415399.33 7.1884 1958230856.54
EUR 55841682.41 7.5257 420247749.33
MXN 3903944.94 0.3498 1366380.73
Other currencies 118536091.07
Subtotal 2498381077.67
Other receivables
Including: USD 4663769.14 7.1884 33525038.09
EUR 319150.56 7.5257 2401831.37
MXN 91264789.55 0.3498 31924423.38
Other currencies 13542139.77
Subtotal 81393432.61
Long-term receivable
Including: EUR 22000.00 7.5257 165565.40
Subtotal 165565.40
Derivative financial liabilities
Including: USD 6158575.02 7.1884 44270300.67
Other currencies 447200.25
Subtotal 44717500.92
Short-term borrowings
Including: USD 30000000.00 7.1884 215652000.00
EUR 91000000.00 7.5257 684838700.00
Subtotal 900490700.00
Accounts payable
Including: USD 61692378.09 7.1884 443469490.66
EUR 6706473.58 7.5257 50470908.22
MXN 191418609.18 0.3498 66996965.79
Other currencies 42007725.48
Subtotal 602945090.15
Other payables
Including: USD 1351905.02 7.1884 9718034.05
219Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
EUR 4803713.79 7.5257 36151308.88
MXN 2262878.42 0.3498 791554.87
Other currencies 3467190.92
Subtotal 50128088.72
Non-current liabilities due within one year
Including: USD 1585441.10 7.1884 11396784.80
EUR 1305092.58 7.5257 9821735.23
MXN 21651810.06 0.3498 7578133.52
Other currencies 8283711.25
Subtotal 37080364.80
Lease liabilities
Including: USD 4529803.44 7.1884 32562039.05
EUR 6629977.01 7.5257 49895217.98
MXN 151495774.96 0.3498 52993222.08
Other currencies 20015690.67
Subtotal 155466169.78
（2）Notes on overseas operating entities including for the significant overseas operating entities its
main operating locations reporting currency and the basis for selection should be disclosed and the
reason for changes in reporting currency should also be disclosed.√ Applicable □ Not Applicable
The Company has several overseas subsidiaries locate in the United States Europe Japan Poland Mexico
Vietnam and other countries where US dollars Euro Japanese yen Polish zloty Mexican pesos Vietnamese
dong etc. are used as the standard reporting currency.
63. Leases
(1) The Company as lessee
1) Please refer to section X (VII) 14 of notes to the consolidated financial statements for details on right-of-
use assets.
2) Please refer to notes to the financial statements for details on the Company’s accounting policies on short-
term leases and leases for which the underlying asset is of low value. The amounts of short-term leases and low-
value asset leases included into profit or loss are as follows:
Items Current period Preceding periodcumulative comparative
Expense relating to short-term leases 20592131.51 37499886.35
Total 20592131.51 37499886.35
3) Profit or loss and cash flows related to leases
Items Current period Preceding periodcumulative comparative
Interest expenses on lease liabilities 18704386.74 2624284.04
Total cash outflows related to leases 144601226.69 143934130.66
220Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
4) Please refer to notes to the financial statements for details on maturity analysis of lease liabilities and
related liquidity risk management.
(2) The Company as lessor
1) Operating lease
* Lease income
Items Current period Preceding periodcumulative comparative
Lease income 19262208.26 11054740.49
Including: Income relating to variable lease payments not
included in the measurement of the lease liabilities — —
* Assets leased out under operating leases
Items Closing balance December 31 2022
Fixed assets 38026861.17 34172628.21
Intangible assets 6082450.77 6297200.85
Investment property 7053153.92 8165805.31
Total 51162465.86 48635634.37
Please refer to notes to the financial statements for details on fixed assets leased out under operating leases.
2) Undiscounted lease payments to be received arising from non-cancellable leases based on the lease
contract signed with lessee
Remaining years Closing balance December 31 2022
Within 1 year 7671371.57 7306068.16
Total 7671371.57 7306068.16
VIII. R&D Expenses
Expenses on internal research and development projects are recognized in profit or loss when incurred andare not capitalized. For details of the R&D expenditures please refer to the R&D remarks in “Ⅶ. Notes toitems in the Consolidated Financial Statements” in“Section X. Financial Reporting”.IX. Changes in the scope of consolidation
1. Accounting treatment of business combination not under common control
（1）Accounting treatment of business combination not under common control during the period
Unit：RMB
221Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Net
Revenue profit of Cash
Equity Basis for of the the flow of
Name of acquis Equity Equity Equity Purc determin purchase purchase the
purchased ition acquisiti acquisition acquisit hase ing the r at the r as of purchaser
party date on cost proportion ion date purchase end of the end at the endmethod date the of the of the
purchase purchase purchase
period date period
Hangzhou Completio
Lvneng n of
New Agreed registratio
Energy 2024-9- 7700000. to be 2024- n of 6595541 3083107.100.00% 43952.20
Vehicle 30 00 transferr 9-30 industrial 1.78 09
Parts Co. ed and
Ltd commercial changes
Other remarks:
In September 2024 the company acquired 100% of the equity interest in Hangzhou Lvneng New Energy
Vehicle Parts Co. Ltd from Shanghai Elec New Energy Technology Co. Ltd. The equity transaction was priced
on the basis of appraised value and the transaction price was 7.7 million.
（2）Consolidation cost and goodwill
Unit：RMB
Item Amount
Consolidation cost 7700000.00
Including: payment by cash 7700000.00
Deducting: share of fair value of net identifiable
assets acquired 9797001.82
Non-operating revenue 2097001.82
（3）Identifiable assets and liabilities of the acquiree at the date of purchase
Unit：RMB
Hangzhou Lvneng New Energy Vehicle Parts Co. Ltd
Fair value at date of purchase Book value at date of purchase
Asset： 117993514.84 118467910.65
Cash and bank Balances 818046.75 818046.75
Accounts receivable 46428945.67 46715724.01
Inventories 30762367.18 29513095.25
Non-current assets 4557707.15 5982290.65
Intangible assets
Notes receivable 35263191.46 35275497.36
Construction in progress 163256.63 163256.63
Liability： 108196513.02 108196513.02
Loans 28363384.14 28363384.14
Accounts payable 76416553.93 76416553.93
Deferred income tax liabilities
222Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Employee payable 2284142.79 2284142.79
Taxes payable 671930.52 671930.52
Lease liabilities 460501.64 460501.64
Net Assets 9797001.82 10271397.63
Deducting：Minority interests
Net Assets acquired 9797001.82 10271397.63
Method of determining the fair value of identifiable assets and liabilities:
The fair value of the identifiable assets and liabilities of Hangzhou Lvneng New Energy Vehicle Parts Co.Ltd was determined on the basis of the appraised value.
（4）Gains or losses arising from the remeasurement of equity interests held before the date of purchase
at fair value
Whether there are transactions in which a business combination is realized in steps through multiple
transactions and control is obtained during the reporting period.□Yes √ No
2. Disposal of subsidiaries
Whether there are any transactions or events during the period in which control of a subsidiary is lost
□Yes √ No
Whether there was a step-by-step disposal of investments in subsidiaries through multiple transactions and
loss of control during the period
□Yes √ No
3. Changes in the scope of consolidation due to other reasons
This section describes changes in the scope of consolidation due to other reasons (e.g. establishment of
new subsidiaries liquidation of subsidiaries etc.) and the related information:
（1）Increase in consolidation scope
Equity Proportion
Subsidy name acquisition Date of equity
Actual capital of capital
acquisition contribution at the contributio
method end of the period n
Zhejiang Sanhua Intelligent Drive Co. Ltd. New 2024-06-04 RMB 74.00 million 100%investment
Zhejiang Shengtai Paper Industry Co. Ltd. New 2024-06-20 RMB 21.00 million 70%investment
Sanhua Automative Components (Korea) Co. New
Ltd. 2024-07-08 KRW 90000 100%investment
SANHUA SINGAPORE HEAT EXCHANGER New
PTE. LTD 2024-08-28 0.00 100%investment
SANHUA INTELLIGENT DRIVES New
(THAILAND) CO. LTD. 2024-11-01 0.00 100%investment
SANHUA TROY PROPERTY New
MANAGEMENTLLC 2024-06-28 0.00 100%investment
（2）Decrease in consolidation scope
223Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Equity Net profit
Company name disposal Date of equity Net asset at thedisposal disposal date during the
method period
American Tubing International Leverage lender
LLC Deregister 2024-10-09 — —
X. Interest in other entities
1. Composition of enterprise group
（1）The company includes subsidiaries such as Zhejiang Sanhua Automotive Components Co. Ltd. in
the scope of consolidated financial statements.
（2）Basic information of important subsidiaries
Registered Main Holding proportion
Subsidy capital operatingplace and Business Acquisitionname （million place of nature Direct Indirect methodyuan） registration
Zhejiang
Sanhua Business
Automotive Automotive combination2160 Zhejiang 100.00%
Components components under common
Co. Ltd. control
Sanhua
(hangzhou) Business
Micro Refrigeration combination
Channel Heat 360 Zhejiang 100.00%components under common
Exchanger control
Co. Ltd
Zhejiang
Sanhua Refrigeration Investment and
Trading Co. 50 Zhejiang 100.00%components establishment
Ltd
Zhejiang
Sanhua
Commercial Refrigeration Investment and1655.29 Zhejiang 100.00%
Refrigeration components establishment
Co. Ltd
Sanhua
International 37.55 million Investment andUSA Business 100.00%
Inc. USD establishment
2. Transactions in which the share of ownership interest in a subsidiary changes but the subsidiary is still
controlled
（1）Description of changes in share of ownership interests in subsidiaries
Change
Subsidy name Holding proportion Holding proportionTime before change after change
224Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Change
Subsidy name Holding proportion Holding proportionTime before change after change
Hangzhou Leaderway Electronics Co. Ltd. 2024-12-30 71.39% 72.33%
As a result of the one-way capital increase and equity disposal by the minority shareholders the
Company's shareholding in Hangzhou Leaderway Electronics Co. Ltd. (HLE) increased from 71.39% to
72.33%.（ 2）Effect of the transaction on minority interests and equity attributable to owners of the parent
company
Item Hangzhou Leaderway Electronics Co. Ltd.Purchasing cost/Disposal consideration 85663678.35
Including:Cash 85663678.35
Total purchasing cost/Disposal consideration 85663678.35
Deducting:Share of net assets of subsidiaries in proportion to
equity acquired/disposed 80961615.08
Balance 4702063.27
3. Significant wholly-owned subsidiaries
As of December 31 2024 the company has no significant wholly-owned subsidiaries.
4. Equity in joint ventures or associates
（1）Significant joint ventures and associates
As of December 31 2024 the company has no significant joint ventures and associates.
（2）Aggregated financial information of insignificant joint ventures and associates
Unit: RMB
Closing balance/Current Opening balance/Preceding
Items
period cumulative period comparative
Associates -- --
Total book value of investment 40599793.42 37924431.29
Total of the following items calculated by
8925362.137986227.16
shareholding ratio
Net profit 8925362.13 7986227.16
225Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Closing balance/Current Opening balance/Preceding
Items
period cumulative period comparative
Total comprehensive income 8925362.13 7986227.16
XI. Government grants
（1）Government grants increased in the current period
Unit: RMB
Items Amount
Government grants related to assets 277350770.05
Including: Included into deferred income 277350770.05
Government grants related to income 156546385.56
Including: Included into otherd income 156546385.56
Total 433897155.61
（2）Government grants recognized based on receivables
Unit: RMB
Items Closing book balance
Government grants receivable 6391391.79
Total 6391391.79
（3）Liabilities related to government grants
Unit: RMB
Items Opening balance Increase Carryover Closing balance Remarks
Deferred income 379140042.48 277350770.05 48736533.73 607754278.80 Related toassets
Total 379140042.48 277350770.05 48736533.73 607754278.80
（4）Government grants included into profit or loss
Unit: RMB
Items Current period cumulative Preceding period comparative
Other income 205282919.29 149107700.81
226Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Total 205282919.29 149107700.81
XII. Risks Related to Financial Instruments
In risk management 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 so as to maximize the profits of shareholders and other equity investors.Based on such risk management 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 on a timely and reliable basis.The company faces various risks related to financial instruments in daily activities mainly including credit
risk liquidity risk and market risk. The management has reviewed and approved policies for managing these risks
summarized as follows.(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation.
1. Credit risk management practice
(1) Evaluation method of credit risk
At each balance sheet date the Company assesses whether the credit risk on a financial instrument has
increased significantly since initial recognition. When assessing whether the credit risk has increased significantly
since initial recognition the Company takes into account reasonable and supportable information which is
available without undue cost or effort including qualitative and quantitative analysis based on historical data
external credit risk rating and forward-looking information. The Company determines the changes in default risk
of financial instruments during the estimated lifetime through comparison of the default risk at the balance sheet
date and the initial recognition date on an individual basis or a collective basis.The Company considers the credit risk on a financial instrument has increased significantly when one or
more of the following qualitative and quantitative standards are met:
1) Quantitative standard mainly relates to the scenario in which at the balance sheet date the probability of
default in the remaining lifetime has risen by more than a certain percentage compared with the initial recognition;
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s operation or financial
position present or expected changes in technology market economy or legal environment that will have
significant adverse impact on the debtor’s repayment ability.
(2) Definition of default and credit-impaired assets
A financial instrument is defined as defaulted when one or more following events have occurred of which
the standard is consistent with that for credit-impairment:
1) significant financial difficulty of the debtor;
2) a breach of binding clause of contract;
3) it is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor for economic or contractual reasons relating to the debtor’s financial difficulty
having granted to the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default loss rate of
default and exposure to default risk. The Company develops a model of the probability of default loss rate of
default and exposure to default risk on the basis of quantitative analysis of historical data (e.g. counterparty rating
227Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
guarantee measures and collateral type payment method etc.) and forward-looking information.
3. The adjustment table for the opening balance and closing balance of financial instrument loss reserves is
detailed in the relevant notes to these financial statements.
4. Exposure to credit risk and concentration of credit risk
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to
control such risks the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other cash and bank balances in financial institutions with
relatively high credit levels hence its credit risk is relatively low.
(2) Receivables
The Company performs credit assessment on customers using credit settlement on a continuous basis. The
Company selects credible and well-reputed customers based on credit assessment result and conducts ongoing
monitoring on balance of receivables to avoid significant risks in bad debts.The Company conducts transactions with recognized and creditworthy customers and credit risk is centrally
managed by customers. The Company had certain credit concentration risks the account receivables mainly
originate from the top five customers with outstanding balances.The accounts receivable from the Company's
customers have been digitized and electronic with certain credit liquidity. In addition the balance of the
Company's accounts receivable basically does not hold collateral or other credit enhancements.The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial
asset at the balance sheet.(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations
associated with cash or other financial assets settlement which is possibly attributable to failure in selling
financial assets at fair value on a timely basis or failure in collecting liabilities from counterparties of contracts or
early redemption of debts or failure in achieving estimated cash flows.In order to control such risk the Company comprehensively utilizes financing tools such as notes settlement
bank borrowings etc. and adopts long-term and short-term financing methods to optimize financing structures
and finally maintains a balance between financing sustainability and flexibility. The Company has obtained credit
limit from several commercial banks to meet working capital requirements and expenditures.The financial liabilities of the company are classified and presented based on remaining time period till
maturity in the table below:
Closing balance
Items
Carrying amount Contract amountnot yet discounted Within 1 year 1-3 years Over 3 years
Short-term borrowings 1553345651.16 1570277923.11 1570277923.11
Notes payable 3791834944.38 3791834944.38 3791834944.38
Accounts payable 5985427008.79 5985427008.79 5985427008.79
Other payable 545412160.30 545412160.30 545412160.30
Non-current liabilities
due within one year 590993952.12 610683512.28 610683512.28
Long-term borrowings 2045772594.73 2146183533.34 2146183533.34
Lease liabilities 237913009.51 254854902.60 148585822.09 106269080.51
Subtotal 14750699320.99 14902673984.80 12503635548.86 2294769355.43 106269080.51
228Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
(Continued)
Opening balance
Items
Carrying amount Contract amountnot yet discounted Within 1 year 1-3 years Over 3 years
Short-term borrowings 1212150378.85 1220397152.46 1220397152.46
Notes payable 3416711594.64 3416711594.64 3416711594.64
Accounts payable 4449940359.81 4449940359.81 4449940359.81
Other payable 250642662.86 250642662.86 250642662.86
Non-current liabilities
due within one year 1440093253.93 1451597753.93 1451597753.93
Long-term borrowings 1030801111.13 1091440666.68 1091440666.68
Lease liabilities 221295481.86 227606748.42 12657389.96 105453688.05 109495670.41
Subtotal 12021634843.08 12108336938.80 10801946913.66 1196894354.73 109495670.41
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of
financial instruments due to changes in market price. Market risk mainly includes interest rate risk and exchange
rate risk.
1. Interest Rate Risk
Interest rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial instruments
due to changes in market interest rates. Fair value interest risks arise from fixed-rate financial instruments. The
Company determines the proportion of fixed-rate financial instruments and floating-rate financial instruments
based on the market environment.The scale of the company's liabilities need to pay interest is controlled at a reasonable level and the burden
of financial expenses is not heavy. An increase in interest rates within a reasonable range will not have a
significant adverse impact on financial performance. The company's management will continue to monitor interest
rate levels and take necessary response measures in a timely manner based on the latest market conditions
2. Exchange Rate Risk
The exchange rate risk refers to the risk of fluctuations in the fair value or future cash flows of financial
instruments due to changes in foreign exchange rates. The company's production base and sales market are
distributed in major developed and developing countries including the United States the European Union Japan
India Mexico etc. The business volume settled in euros and dollars has a certain proportion and it faces
significant exchange rate risks. Based on internal risk control policies the company's management has taken
several measures to respond exchange rate risks. Firstly based on the trend of exchange rate fluctuations timely
settlement or delayed settlement of export receipts; secondly hedge foreign currency monetary assets and control
net risk exposure by overseas financing through domestic guarantee and external loan; thirdly carry out forward
exchange settlement and foreign currency swap business and lock in exchange rates.The company's foreign currency monetary assets and liabilities at the end of the period are described in the
notes to this financial report.(IV) Financial assets transfer
1. Financial assets derecognized due to transfer
Items Ways of financial Current transferassets transfer amount Gains or losses Closing Balance
Bank acceptance bill Endorsementpayment 110067406.37 59521614.68
229Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Bank discount 250629655.17 -7455575.10 75906494.00
Total 360697061.54 -7455575.10 135428108.68
2. Financial assets not derecognized due to transfer
Items Ways of financial Current transferassets transfer amount Gains or losses Closing Balance
Bank acceptance bill Bank discount 22016350.29 -108955.87 22016350.29
Endorsement
Electronic debt payment 171512528.16 76179714.02
voucher Bank discount 27858378.84 -286000.66 7940376.79
Total 221387257.29 -394956.53 106136441.10
XIII. Disclosure of Fair Values
1. Fair values of the assets and liabilities at the end of the period
Unit: RMB
Fair value as of the balance sheet date
Item Name Level 1 fair Level 2 fair Level 3 fairvalue value value Total
measurement measurement measurement
I.Continuous fair value measurement -- -- -- --
1.Held-for-trading financial assets 6237202.48 6237202.48
(3) Derivative financial assets 6237202.48 6237202.48
Total amount of assets constantly measured at
their fair values 6237202.48 6237202.48
6. Held-for-trading liabilities 2818599.62 76859519.31 79678118.93
Derivative financial liabilities 2818599.62 76859519.31 79678118.93
Total amount of liabilities constantly measured at
their fair values 2818599.62 76859519.31 79678118.93
II. Non-constant measurement at fair value -- -- -- --
2. Basis for determining the market price of items under first level constant and non-constant
measurement at fair value.The fair value of futures contracts is measured at the exchange's open market quotes.
3. Items under second level constant and non-constant measurement at fair value valuation technique
adopted and qualitative and quantitative information of important parameters
The fair value of exchange rate contracts is measured based on the valuation amount of the host bank or the
forward foreign exchange rate announced by the Bank of China. Bank financing products are measured based on
the valuation amount of the issuer or manager.
230Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
XIV. Related party relationships and transactions
1. Parent Company
Parent Place of Business nature Registered
Holding Voting right
Company registration capital proportion over proportion overthe Company the Company
Sanhua Holding Zhejiang Industrial 730 million
Group Co. Ltd Province Investment yuan 25.41% 43.85%
Remarks on the parent Company:
As of December 31 2024 Sanhua Holding Group Co. Ltd. (Hereinafter referred to as SHG) directly holds
25.41% of the Company's shares and indirectly holds 18.44% of the shares through its subsidiaries for a total of
43.85% of the shares.
The final controllers of the Company are Mr Zhang Daocai Mr Zhang Yabo and Zhang Shaobo.
2. Information about the Company's subsidiaries
Please refer to Note Ⅹ： interest in other entities.
3. Joint ventures and associates of the Company
Please refer to Note Ⅹ：interest in other entities.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:
Associates or joint ventures Relationship with the Company
Chongqing Tainuo Machinery Co. Ltd Joint ventures
Qingdao Sanhua Jinlifeng Machinery Co. Ltd Joint ventures
Zhongshan Xuanyi Pipe Making Co. Ltd Joint ventures
Ningbo Jinlifeng Machinery Co. Ltd Joint ventures
4. Other related parties of the Company
Other related parties of the Company Relationship with the Company
Zhejiang Sanhua Green Energy Industrial Group Co. Ltd. Shareholders under the control of the same parent
company
Hangzhou Sanhua Research Institute Co. Ltd. Under the control of the same parent company
Preceding under ultimate control transferred in
Hangzhou Lvneng New Energy Vehicle Parts Co. Ltd March 2022
Xinchang County Sanhua Property Management Co. Ltd. Under the control of the same parent company
Shanghai Sanhua Electric Co. Ltd Under the control of the same parent company
231Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Zhejiang Haoyuan Technology Co. Ltd. Under the control of the same parent company
Wuhu Alda Technology Co. Ltd. Joint-stock enterprise of the parent company
Hangzhou Formost Material Technology Co. Ltd Joint-stock enterprise of the parent company
Ningbo Jiaerling Pneumatic Machinery Co.Ltd. Under the control of the same parent company
Jiaerling Technology (Xinchang) Co. Ltd. Under the control of the same parent company
Tianjin Sanhua Industrial Park Management Co. Ltd. Under the control of the same parent company
Shaoxing Sanhua Zhiyue Real Estate Development Co. Under the control of the same parent company
Ltd.Shanghai Shijia Technology Co. Ltd. Shi Jianhui as director
Ningbo Hongrong Enterprise Management Partnership Hu Kaicheng as managing partner
(Limited Partnership)
Under the control of the same parent company
FUERDA SMARTECH S DE RL DE CV
5. Related party transactions
（1）Purchase and sale of goods rendering and receiving services
Purchase of goods and receiving of services
Unit: RMB
Related Content of Current period Approved Over the Preceding period
parties transaction cumulative Transaction Limit Transaction Limitor No comparative
SHG Services 1494694.11 47500000.00 No 556770.56
SHG Goods No 33457.60
ZSGE Goods 1813534.17 60400000.00 No 1975992.88
ZSGE Services 3959658.63 47500000.00 No 4196676.62
HSRI Services 157297.34 47500000.00 No 76543.03
ZXPM Goods 14819605.75 18000000.00 No 19627331.84
ZHT Goods 45535835.95 60400000.00 No 38202410.30
ZHT Services 867660.64 47500000.00 No 1939571.51
QSJM Goods 3070151.05 4500000.00 No 4471352.50
WAT Goods 64339.81 2300000.00 No 147911.48
XCSP Services 332250.00 47500000.00 No 301617.92
NJPM Goods 1999658.46 60400000.00 No 350188.20
TSIP Goods 828912.63 60400000.00 No 919982.30
TSIP Services 1103978.73 47500000.00 No
232Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Sale of goods and rendering of services
Unit: RMB
Related parties Content of transaction Current period cumulative Preceding period comparative
SHG Goods 203592.04 2879.18
SHG Services 1684018.87 1684018.88
HFMT Services 148754.72 148754.72
ZHT Goods 509001.99
QSJM Goods 44612.66 193143.68
HLNE Goods 4167522.64
CTMC Goods 623896.00
HSRI Goods 128997.72 242670.22
WAT Services 176615.08 98319.77
WAT Goods 48785.00 39567.85
ZXPM Goods 52701.18
SSZR Services 9905.66
JT Goods 115969.81
NJPM Goods 178619.47
NJPM Services 747000.00
SST Goods 359383.06 308194.07
NJM Goods 584886.76
ZSGE Goods 2239885.48
FSS Services 1357776.58
Remarks of related transactions related to the purchase and sale of goods and the provision and acceptance
of services
Due to the large number of related parties involved in related party transactions between the parent
Company Sanhua Holding Group Co. Ltd and its subsidiaries the transaction limit with Sanhua Holdings Group
Co. Ltd. and its subsidiaries is approved through a consolidated summary with a purchase goods limit of 60.40
million yuan with leases such as purchase of buildings land and equipment property management water and
electricity power service fee and purchase of equipment limit of 47.50 million yuan.
（2）Related party leases
The Company as the lessor：
Unit: RMB
Lessees Types of asset leased Confirmed rental incomeCurrent period Preceding period
SHG Office building 5309339.45 5309339.44Dormitory 50388.70
SSZR Office building 48165.14
HFMT Plant 300342.84 300342.84
WAT Plant 986705.00 954666.15
JT Plant 457332.00
FSS Plant 1837417.42
The Company as the lessee：
Unit: RMB
Lessor Types of asset leased Confirmed rental expensesCurrent period Preceding period
Office building 762514.28 1057028.58
HSRI Plant 363085.72 457371.42
Dormitory 376409.97 349761.47
ZSGE Dormitory 788955.44 2794933.24
233Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Plant 5736256.28 3800609.80
TSIP Plant 2147187.96 1789323.30
（3）Assets transfer and debt restructuring of the related parties
Unit: RMB
Related
parties Content of related party transactions Current period cumulative Preceding period comparative
SHG Purchasing vehicles 131626.41
HSRI Purchasing equipment 1120684.00
SSE Purchasing vehicles 392000.00
ZSGE Selling equipment 322253.80
（4）Key management’s emoluments
During the current period Ningbo Hongrong Enterprise Management Partnership (NHEM) was assigned
0.2% of the Company's equity interest in Hangzhou Leaderway Electronics Co. Ltd (HLE) for a total equity
transfer price of 457552.00 yuan.
（5）Key management’s emoluments
Unit: RMB
Items Current period cumulative Preceding period comparative
Key management’s emoluments 20870000.00 17415700.00
（6）Other related party transactions
Unit: RMB
Preceding period
Abbreviation of associate Content of transaction Current period cumulative comparative
ZSGE Water and electricitypayment 7267433.10 8958049.18
TSIP Water and electricitypayment 1451750.59 1164076.58
HSRI Water and electricitypayment 606666.25
SHG Water and electricitycollection 814677.12 830948.28
HFMT Water and electricitycollection 299684.21 594361.13
HSRI Water and electricitycollection 983376.96 1833782.25
WAT Water and electricitycollection 346006.46 390267.49
ZSGE Water and electricitycollection 893528.74 947855.37
ZHT Water and electricitycollection 28906802.42 23932470.68
234Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
SSZR Water and electricitycollection 3150.55
In addition， it is affected by the inconsistency between the registered permanent residence of a fewemployees and the place of work there are transactions between related parties that pay employee social
insurance premium and housing accumulation fund on behalf of them. In current period，the company pays forthe related party RMB 1430575.08 .
6. Balance due to or from related parties
（1）Receivables
Unit: RMB
Closing balance Opening Balance
Items Related parties Book balance Provision for Book balance Provision for
bad debts bad debts
Accounts receivable HSRI 1356.00 67.80 2542.50 127.13
Accounts receivable QSJM 10000.00 500.00 10000.00 500.00
Accounts receivable SST 125118.01 6255.90 48205.80 2410.29
Accounts receivable JT 131045.90 6552.30
Accounts receivable ZHT 3059315.79 152965.79
Accounts receivable CTMC 69788.70 3489.44
Accounts receivable FSS 3564631.94 178231.60
Accounts receivable ZSGE 1008480.00 50424.00
Other receivables ZHT 670000.00 67000.00 670000.00 67000.00
Other receivables NHEM 457552.00
Prepayments ZXPM 67660.61
（2）Payables
Unit: RMB
Items Related parties Closing balance Opening Balance
Accounts payable QSJM 331735.80
Accounts payable ZHT 4225109.49
Accounts payable ZXPM 9233751.78
Accounts payable HSRI 261150.00 357150.00
Accounts payable NJPM 450664.64 300646.95
Other payables HFMT 100000.00 100000.00
Other payables ZSGE 814340.00 387216.00
Other payables XCSP 155676.00
Other payables TSIP 706263.58
XV.Share-based payment
1. Overall information
√ Applicable□ Not applicable
Unit: Ten thousand shares / Ten thousand yuan RMB
Granted in the current Vested in the Unlocked in the Expired in the current
Objects period current period current period period
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
235Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Management
personnel 1049.00 9938.46 171.60 1276.70 20.75 175.94
R&D
personnel 1018.50 9573.90 226.65 1686.28 25.90 226.02
Sales
personnel 240.00 2256.00 61.35 456.44 1.00 9.40
Production
personnel 183.50 1724.90 53.70 399.53 1.20 10.89
Total 2491.00 23493.26 513.30 3818.95 48.85 422.25
Share options and other equity instruments outstanding at the balance sheet date
√ Applicable□ Not applicable
Share options outstanding Other equity instruments outstanding
Objects Range of exercise prices Remaining contractual Range of exercise Remaining contractuallife prices life
Restricted stock
granted in 2024 with
an adjusted restricted
stock grant price of From the date of
RMB 11.65. grant of restricted
Management stock unlock in
personnel Restricted stock batches within 12
granted in 2022 with months after 12
an adjusted restricted months 24 months
stock grant price of and 36 months.RMB 9.30.Restricted stock
granted in 2024 with
an adjusted restricted
stock grant price of From the date of
RMB 11.65. grant unlock in
R&D batches within 12
personnel Restricted stock months after 12
granted in 2022 with months 24 months
an adjusted restricted and 36 months.stock grant price of
RMB 9.30.Restricted stock
granted in 2024 with
an adjusted restricted
stock grant price of From the date of
RMB 11.65. grant unlock in
Sales batches within 12
personnel Restricted stock months after 12
granted in 2022 with months 24 months
an adjusted restricted and 36 months.stock grant price of
RMB 9.30.Restricted stock
granted in 2024 with From the date of
Production an adjusted restricted
grant unlock in
personnel stock grant price of
batches within 12
RMB 11.65. months after 12months 24 months
Restricted stock and 36 months.
236Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
granted in 2022 with
an adjusted restricted
stock grant price of
RMB 9.30.Other Remarks:
(1) Incentive plan for Restricted stock implemented in 2022
In May 2022， the Company implemented a restricted stock incentive plan for core employees. Among
them，the number of restricted stocks granted was 17.5850 million shares the number of stock appreciationrights granted was 0.4850 million shares and the grant price per share was RMB 10.00，The grant date was
May 31 2022 and it will be unlocked year by year in batches at a ratio of 30%:30%:40%.In September 2022 the Company implemented the 2022 semi-annual equity distribution. In June 2023 the
Company implemented the 2022 equity distribution. In October 2023 the Company implemented the 2023
semi-annual equity distribution. In June 2024 the Company implemented the 2023 equity distribution. In
September 2024 the Company implemented the 2024 semi-annual equity distribution. According to the method
stipulated in the "2022 Restricted Stock Incentive Plan"and "2022 Stock Appreciation Rights Incentive Plan"
the exercise price and quantity of the underlying stocks involved were adjusted accordingly. After the
adjustment the number of restricted stocks granted was 17.5850 million shares the number of stock
appreciation rights granted was 0.4850 million shares and the grant price per share was RMB 9.30.
(2) Incentive plan for Restricted stock implemented in 2024
In May 2024， the Company implemented a restricted stock incentive plan for core employees. Among
them，the number of restricted stocks granted was 24.5700 million shares the number of stock appreciationrights granted was 0.5600 million shares and the grant price per share was RMB 12.00，The grant date was
May 13 2024 and it will be unlocked year by year in batches at a ratio of 30%:30%:40%.In June 2024， the Company implemented a restricted stock incentive plan for core employees. Among
them，the number of restricted stocks granted was 0.34 million shares and the grant price per share was RMB
11.75， The grant date was June 3 2024 and it will be unlocked year by year in batches at a ratio of
30%:30%:40%.
In June 2024，the Company implemented the 2023 equity distribution. In September 2024 the Company
implemented the 2024 semi-annual equity distribution. According to the method stipulated in the "2024
Restricted Stock Incentive Plan"and "2024 Stock Appreciation Rights Incentive Plan" the exercise price and
quantity of the underlying stocks involved were adjusted accordingly. After the adjustment the number of
restricted stocks granted was 24.9100 million shares the number of stock appreciation rights granted was
0.5600 million shares and the grant price per share was RMB 11.65.
2.Equity-settled share-based payment
(1) Incentive plan for Restricted stock implemented in 2022
Unit: RMB
Determination method and important parameters Calculated based on the closing price of the stock on the
for grant-date fair value of equity instruments grant date minus the grant price of the restricted stock.Determination method for the number of equity
instruments expected to vest [Note]
Reasons for significant difference between the
estimates in current period and preceding period Not applicable
Capital reserve accumulated due to equity-settled 120764013.33
237Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
share-based payment
Note： In 2022 the Company initially granted 17.5850 million shares restricted stocks to incentive object.The number is the base it will be unlocked year by year in batches at a ratio of 30%:30%:40%. The Company
estimates the number of exercisable equity instruments on the following basis: the Company's operating
performance can meet the target， the future voluntary turnover rate of the incentive objects is 0%， and theperformance appraisal level is above C (the unlocking coefficient is 1).
(2) Incentive plan for Restricted stock implemented in 2024
Unit: RMB
Determination method and key parameters of grant- Calculated based on the closing price of the stock on the
date fair value of equity instruments grant date minus the grant price of the restricted stock.Determination method for the number of equity
instruments expected to vest [Note]
Reasons for significant difference between the
estimates in the current period and preceding period Not applicable
Capital reserve accumulated due to equity-settled
share-based payment 85102354.72
Note： In 2024 the Company initially granted 24.9100 million shares restricted stocks to incentive object.The number is the base it will be unlocked year by year in batches at a ratio of 30%:30%:40%. The Company
estimates the number of exercisable equity instruments on the following basis: the Company's operating
performance can meet the target， the future voluntary turnover rate of the incentive objects is 0%， and theperformance appraisal level is above C (the unlocking coefficient is 1).
3. Cash-settled share-based payment
Determination method and key parameters of the Calculated based on the closing price of the stock on the
fair value of liability incurred by the Company and balance sheet date minus the grant price of the stock
to be settled in cash or other equity instruments appreciation rights
Accumulated amount of liabilities incurred due to
cash-settled share-based payment 9197300.00
4. Share-based payment expense in the current period
√Applicable □ Not Applicable
Unit: RMB
Objects Equity-settled share-based payment Cash-settled share-based payment
Management personnel 44268047.58 2606390.00
R&D personnel 45400398.91
Sales personnel 11226875.64
Production personnel 8175250.93
Total 109070573.06 2606390.00
XVI. Commitments and contingencies
1. Significant commitments
Significant contingencies existing on the balance sheet date
With the approval of the CSRC in document CSRC License [2021] No. 168 the Company publicly issued 30
238Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
million convertible corporate bonds in June 2021 with a face value of 100 yuan each and net amount of raised
funds is 2987.53 million yuan. In addition to replenishing working capital the raised funds are committed to the
following projects:
Investment projects with raised
funds Committed capital Actual capital
Annual production of 65
million sets of commercial
refrigeration and air
conditioning intelligent control 1487 million yuan 1214.2889 million yuan
components construction
project
Annual output of 50.5 million
sets of high efficiency and
energy saving refrigeration and 698 million yuan 397.0674 million yuan
air conditioning control
components project
2. Contingencies（ 1） If no significant contingent matter to be disclosed by the Company it should also be noted
accordingly
No important contingent matter needs to be disclosed by the Company.
（2）Other information required by the industry information disclosure guidelines
The Company shall comply with the disclosure requirements of automobile manufacturing related industries in the
guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 3 - industry
information disclosure. The sales amount in the modes of mortgage sales and financial leasing accounts for more
than 10% of the operating revenue
□ Applicable √ Not Applicable
Guarantee of the company to the distributor
□ Applicable √ Not Applicable
XVII. Events after the balance sheet date
1. Notes of other events after the balance sheet date
(1) Dividend distribution
According to the profit distribution plan of 2024 approved by the board of directors of the Company on March
25 2025 cash dividends of 2.5 yuan (including tax) for every 10 shares will be distributed to all shareholders
based on 3730997314 share(deducting repurchase account 1392221 shares) no bonus shares will be given and
no capital reserve will be converted into share capital. The profit distribution plan has yet to be considered and
approved by the general meeting of shareholders.
(2) Share issue
239Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
On January 15 2025 the Company submitted an application to The Stock Exchange of Hong Kong Ltd.(SEHK) for an initial public offering of H shares and listing on the Main Board of the Hong Kong Stock
Exchange in February 2025 the China Securities Regulatory Commission (CSRC) received the application
materials submitted by the Company for filing the application for issuance of overseas listed shares (H shares).At present the issuance of H shares by the Company is in normal progress.XVIII.Other Significant Events
1. Segment information
（1）Basis for reportable segments and the accounting policy
Reportable segments are identified based on operating segments which are determined based on the structure
of the Company’s internal organization management requirements and internal reporting system etc. and
identified the reportable segments based on products.
（2）Financial information of the reporting subsection
Unit: Ten thousand yuan RMB
2024
Items Operating revenue Operating cost Total assets Totalliabilities
Refrigeration and air-conditioning
electrical components business 1656060.54 1203098.60 2184524.32 1003349.94
Automotive components business 1138655.91 823884.76 1450950.52 680160.55
Total 2794716.45 2026983.36 3635474.84 1683510.49
2023
Items Operating revenue Operating cost Total assets Totalliabilities
Refrigeration and air-conditioning
electrical components business 1464413.52 1054785.21 2009461.39 819136.48
Automotive components business 991366.69 722600.69 1179597.09 563551.23
Total 2455780.21 1777385.90 3189058.48 1382687.71
XIX. Notes to items of parent company financial statements
1. Accounts receivable
（1）Disclosure of accounts receivable by aging
Unit: RMB
Aging Closing balance Opening balance
240Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Within 1 year（Including 1 year） 1085876689.00 712624340.09
1 to 2 year 327234.66 5846510.80
2 to 3 year 5775745.51
Total 1091979669.17 718470850.89
（2）Disclosure of accounts receivable by bad debt provision method
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad Book balance Provision for bad
Catego debt debtAccru Carrying Accru Carryinry
Amount Propor Amoun ed amount
g
tion t propor Amount
Propor Amoun ed
tion t propor amount
tion tion
Receiv
ables
with
provisi
on 86613979 288787. 86585101 5319433 569081 5262525
made 79.32% 0.03% 74.04% 1.07%7.87 28 0.59 81.96 7.36 64.60
on an
individ
ual
basis
Includi
ng:
Receiv
ables
with
provisi
on 22583987 113083 21453151 1865274 933415 1771933
made 20.68% 5.01% 25.96% 5.00%1.30 55.30 6.00 68.93 8.12 10.81
on a
collecti
ve
basis
Includi
ng:
Total 1091979 100.00 115971 1080382 7184708 100.00 150249 70344581.06% 2.09%669.17 % 42.58 526.59 50.89 % 75.48 75.41
Provision for bad debts by individual basis: There were no significant individual accounts receivable for which
provision for bad debts was required to be disclosed during the period.Provision made on a collective basis:
Unit: RMB
Closing balance
Items Book balance Provision for bad Accrued
debt proportion
Within 1 year 225512636.64 11275631.83 5.00%
1 to 2 year 327234.66 32723.47 10.00%
Total 225839871.30 11308355.30 --
241Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
If the provision for bad debt of accounts receivable is accrued in accordance with the general expected credit
loss model:
√ Applicable □Not applicable
Phase I Phase II Phase III
Provision for bad Next 12?month Lifetime expected Lifetime expected
debt expected credit credit losses (credit credit losses (credit
Total
losses not impaired) impaired)
Balance on January
120249318588.7815569.345690817.3615024975.48
Balance in current
period on January
12024
Provision made in
current period 1957043.05 17154.13 1974197.18
Provision reversed
in current period 5402030.08 5402030.08
Balance on
December 31 2024 11275631.83 32723.47 288787.28 11597142.58
（3）Provision for bad debt accrued recovered or reversed in current period
Provision for bad debt accrued in current period:
Unit: RMB
Opening Changed amount of the current periodCategory Closingbalance Accrued Recovered Writeor reversed off Others balance
Provision made on an
individual basis 5690817.36 5402030.08 288787.28
Receivables with provision
made on a collective basis 9334158.12 1974197.18 11308355.30
Total 15024975.48 1974197.18 5402030.08 11597142.58
The significant amount of bad debt provision recovered or reversed during the period :
Unit: RMB
Basis for the
Name of Amount Recovered Method of proportion of the
Corporation or Reversed Reason for Reversal Recovery original provisionfor bad debts and its
reasonableness
You Vinya Amounts recovered
(Thailand) Co. Ltd 5402030.08 Payment received Payback after the period
Total 5402030.08
（4）Top 5 of accounts receivable
Closing balance of top 5 debtors totaled 749.3440 million yuan accounting for 68.62% of the total closing
balance of accounts receivable.
242Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
2. Other receivables
Unit: RMB
Items Closing balance Opening balance
Dividend receivable 16559297.60 550000000.00
Other receivables 526602586.29 1719591236.02
Total 543161883.89 2269591236.02
（1）Dividend receivable
Classification of dividends receivable
Unit: RMB
Items Closing balance Opening balance
Zhejiang Sanhua Climate & Appliance Controls Group Co.Ltd 550000000.00
Xinchang Sitong Electrical and Mechanical Co. Ltd 16559297.60
Total 16559297.60 550000000.00
（2）Other receivables
1）Other receivables categorized by nature
Unit: RMB
Other receivables categorized by nature Closing balance Opening balance
Principal and interest of capital assistance to subsidiaries 477260693.52 1708500801.49
Tax refund receivable 70713817.52 6387103.55
Equity transfers 6154074.80
Others 7084314.10 5207052.58
Total 561212899.94 1720094957.62
2）Disclosure by aging
Unit: RMB
Aging Closing balance Opening balance
Within 1 year (including 1 year) 560581207.52 1718634775.79
1 to 2 years 6235.00 793523.42
2 to 3 years 93523.42 481517.41
Over 3 years 531934.00 185141.00
Total 561212899.94 1720094957.62
3）Disclosure of other receivables by bad debt provision method
Unit: RMB
Closing balance Opening balance
Categor Book value Provision for bad Net Book value Provision for
y debt bad debt Net book
Amount Propor Amount Accru
book
tion ed value Amount
Propor Amou Accru value
tion nt ed
243Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
propor propor
tion tion
Receiva
bles
with
provisi
on 5542678 340000 5202678 1714887 1714887
made 98.76% 6.13% 99.70%85.14 00.00 85.14 905.04 905.04
on an
individ
ual
basis
Includi
ng:
Receiva
bles
with
provisi
on 6945014 610313. 6334701 5207052. 50372 4703330.1.24% 8.79% 0.30% 9.67%
made .80 65 .15 28 1.60 98
on a
collecti
ve basis
Includi
ng:
Total 5612128 100.00 346103 5266025 1720094 100.00 50372 17195916.17% 0.03%99.94 % 13.65 86.29 957.32 % 1.60 236.02
Provision made on an individual basis:
Unit: RMB
Opening balance Closing balance
Name Book balance Provision for Book balance Provision for Accrued Accrued
bad debt bad debt proportion reason
Tax refund
receivable 6387103.55 70713817.52 —
Several
subsidiaries 1708500801.49 477399992.82 34000000.00 —
Total 1714887905.04 548113810.34 34000000.00
Provision made on a collective basis:
Unit: RMB
Items Closing balanceBook balance Provision for bad debt Accrued proportion
Within 1 year 6313322.38 315666.12 5.00%
1 to 2 year 6235.00 623.50 10.00%
2 to 3 year 93523.42 28057.03 30.00%
3 to 4 year 531934.00 265967.00 50.00%
Total 6945014.80 610313.65
Provision for bad debts based on the general model of expected credit losses:
Unit: RMB
Phase I Phase II Phase III
Provision for bad Next 12?month Lifetime expected Lifetime expected
debt expected credit credit losses (credit credit losses (credit
Total
losses not impaired) impaired)
Balance on January 187343.54 79352.34 237025.72 503721.60
244Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
12024
Balance in current
period on January 1
2024
--Transferred to
phase II -311.75 311.75
--Transferred to
phase III -18704.68 18704.68
Provision made in
current period 128634.33 -60335.91 38293.63 106592.05
Balance on
December 31 2024 315666.12 623.50 294024.03 610313.65
Loss provisions for significant changes in book value in current period
□ Applicable √ Not Applicable
4）Top 5 debtors with the largest other receivables balances
Unit: RMB
Proportion to
Nature of the total Provision for
Debtors receivable Closing balance Age balance of bad debt at the
s other end of the
receivables period
Hangzhou Leaderway Financial
Electronics Co. Ltd aid 104180000.00
Within 1
year 18.56%
Sanhua New Energy Thermal
Management Technology Financialaid 86000000.00
Within 1
year 15.32%(Hangzhou) Co. Ltd
Tax
Domestic tax bureau refund 70713817.52
Within 1
receivable year
12.60%
Sanhua (Jiangxi) Self - Financial
control Components Co. Ltd aid 70000000.00
Within 1
year 12.47%
Wuhu Sanhua Refrigeration Financial Within 1
Fittings Co. Ltd. aid 49080693.52 year 8.75%
Total 379974511.04 67.70%
3. Long-term equity investments
Unit: RMB
Closing balance Opening balance
Items Book balance Provision for Carrying
Provision
impairment amount Book balance for
Carrying
impairment amount
Investments
in 9273524116.60 152115412.08 9121408704.52 8846816951.56 8846816951.56
subsidiaries
Investments
in associates
and joint 34628346.90 34628346.90 33316317.01 33316317.01
ventures
Total 9308152463.50 152115412.08 9156037051.42 8880133268.57 8880133268.57
245Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
（1）Investments in subsidiaries
Unit: RMB
Changed amount of the current period Closing
Opening Inves balanceOpening balance of tment Provision
Closing
Investees balance(Carr provision Investments for Oth balance
of
s (Carrying provisionying amount) for increased decre impairme ersimpairment nt amount)
for
ased impairment
Zhejiang
Sanhua
Automoti
ve 2736994138.0 2768495805.31501667.91
Compone 3 94
nts Co.Ltd.Sanhua
(Hangzho
u) Micro
Channel 669708236.4661662655.05 8045581.36
Heat 1
Exchange
r Co. Ltd
Zhejiang
Sanhua
Climate
&
Applianc 1376473565.8 1376473565.e 8 88
Controls
Group
Co. Ltd
Sanhua
Internatio 307863648.3307863648.30
nal Inc. 0
Sanhua
Internatio
nal 170713194.8 1130001301.959288106.40
Singapor 8 28
e Pte. Ltd
Wuhu
Sanhua
Automati
c Control 294864058.0294042343.47 821714.60
Compone 7
nts Co.Ltd
Sanhua
(Jiangxi)
Self -
control 94227657.67 406579.52 94634237.19
Compone
nts Co.Ltd
Xinchang 138940625.94 1558597.68 140499223.6
246Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Sitong 2
Electrical
and
Mechanic
al Co.Ltd
Zhejiang
Sanhua
Commerc
ial 1659471139.2 1671499355.12028216.55
Refrigera 0 75
tion Co.Ltd
Zhejiang
Sanhua
Trading 59656207.70 3160519.80 62816727.50
Co. Ltd
Changzh
ou Ranco
Reversin 62541614.60 62541614.60
g value
Coltd
Hangzho
u
Leaderwa
y 148148076.057600171.50 90547904.50
Electroni 0
cs Co.Ltd
Shaoxing
Shangyu
Sanli
Copper 33693798.36 483491.08 34177289.44
Industry
Co. Ltd
Zhongsha
n Sanhua
Air
condition
ing
Refrigera 5840963.15 540907.24 6381870.39
tion
Compone
nts Co.Ltd
Wuhan
Sanhua
Refrigera
tion 5291974.78 508029.55 5800004.33
Compone
nts Co.Ltd
Zhongsha
n Sanhua
Refrigera 6803867.94 503428.33 7307296.27
tion
Compone
247Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
nts Co.Ltd
Suzhou
Sanhua
Air-
Conditio 9261580.01 245387.88 9506967.89
ner Parts
Co.Ltd
Sanhua
AWECO
Applianc
e 154585902.9153515398.66 1070504.27
Systems 3
(Wuhu)
Co. Ltd.Zhejiang
Sanhua
Minshi
Automoti
ve 51000000.00 103522.73 51103522.73
Compone
nts Co.Ltd
Sanhua
New
Energy
Thermal
Manage
ment 15211541 15211541142647494.92 9467917.16
Technolo 2.08 2.08
gy
(Hangzho
u) Co.Ltd
Zhejiang
Xianji
Intelligen
t 30000000.00 30000000.00
Technolo
gy Co.Ltd
Zhejiang
Sanhua
Intelligen 74000000.00 74000000.00
t Drive
Co. Ltd.Zhejiang
Shengtai
Paper 21000000.00 21000000.00
Industry
Co. Ltd.Total 8846816951.5 426707165.0 15211541 9121408704. 152115416 4 2.08 52 2.08
248Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
（2）Investments in associates and joint ventures
Unit: RMB
Openin Changed amount of the current period
g Open Invest Closi
balanc ing ment Closin ng
e balan incom Adjust Cha Cash g
(Carryi ce of Invest Invest e ment in nge dividen Provi balanc
balan
Investe s in d/profit sion Ot e ce of
es ng provi ments ments recogn other othe declare for her (Carryi proviamoun sion increa decre ized compre
t for sed ased under hensive r d for impai s ng
sion
for
impai equity income equi distribu rment amoun impai
rment metho ty tion t) rment
d
Ⅰ. Joint ventures
Ⅱ. Associates
Guoch
uang
Energy
Internet
Innovat
ion 49411 50537 54465
Center 51.03 7.08 28.11
(Guang
dong)
Co.Ltd.Chong
qing
Tainuo -
Machin 18304 30978 16402500000
ery 176.79 29.03 005.820.00
Co.Ltd.Ningbo
Jinlifen
g -
Machin 28188 10203 25891125000
ery 24.39 08.31 32.700.00
Co.Ltd
Qingda
o
Sanhua
Jinlifen
g 54054 28822 82877
Machin 02.11 97.98 00.09
ery
Co.Ltd.Xincha
ng 18467 56217. 19029
zhejian 62.69 49 80.18
g
249Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
energy
sanhua
compre
hensive
energy
co.LTD
Subtota -33316 75620 34628
l 625000317.01 29.89 346.900.00
-
Total 33316 75620 34628625000317.01 29.89 346.90
0.00
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
□ Applicable √ Not Applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable √ Not Applicable
4. Operating revenue and Operating cost
Unit: RMB
Items Current period cumulative Preceding period comparativeRevenue Cost Revenue Cost
Main operations 6183290983.32 4796719010.39 5648172805.20 4291163249.20
Other operations 407244748.02 365118626.80 387451637.45 360295603.24
Total 6590535731.34 5161837637.19 6035624442.65 4651458852.44
5. Investment income
Unit: RMB
Items Current period Preceding periodcumulative comparative
Investment income from long-term equity investments under
equity method 7562029.89 6857976.74
Dividend income 1009704255.08 815502001.82
Investment income of bank financing products 2171472.82 171131.50
Income of bank financial products during the holding period 5641200.00
Gains and losses on settlement of futures contracts 8386131.45 6112835.61
Gains and losses on settlement of foreign exchange contract -1757270.34 2462740.20
Interest Income of fund 15152266.59 22722372.50
Advance payment gains 2140426.06 1868809.93
Total 1049000511.55 855697868.30
6. Others
R&D expenses
Unit: RMB
250Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Items 2024 2023
Labor cost 162257160.82 136148043.78
Share-based payment of remuneration 18041878.69
Direct input costs 77741383.01 93014421.12
Depreciation and amortization expense 9785151.36 8741825.68
Royalties 3120319.51 1991176.57
Outsourcing R&D expense 550514.94
Others 2613241.66 6221895.25
Total 273559135.05 246667877.34
XX.Supplementary information
1. Non-recurring profit or loss in current period
√ Applicable □ Not Applicable
Unit: RMB
Items Amount Remarks
Gains or loss on disposal of non-current assets -14594509.61
Government grants included in profit or loss
(excluding those closely related to operating
activities of the Company satisfying
government policies and regulations and 124291859.56
continuously enjoyed with certain
quantity/quota based on certain standards)
In order to avoid the price risk of raw
materials and prevent exchange rate risk the
Company and its subsidiaries have carried
out derivatives business including futures
contracts and foreign exchange forward
contracts. In 2024 the futures gain was
Gains or losses on changes in fair value of 8.5920 million yuan and the foreign
held-for-trading financial assets held-for- exchange loss was 142.9416 million yuan;
trading financial liabilities and investment In 2023 the futures loss was 9.5091 million
income from disposal of held-for-trading yuan and the foreign exchange loss was
financial assetsheld-for-trading financial -134349605.35 99.3840 million yuan. Meanwhile the
liabilities and other debt investments exchange income was 83.1539 million yuan
excluding those arising from hedging business in 2024 the exchange income was 133.5151related to operating activities million yuan in 2023. According to “ theNo. 1 Explanatory Announcement onInformation Disclosure for Companies
Offering Their Securities to Public - Non-recurring Profit or Loss” exchange gains
and losses are recurring gains and losses
and Futures and forward gains and losses are
non-recurring gains and losses.Reversal of provision for impairment of
receivables individually tested for impairment 5690817.36
Gains the cost of investments in subsidiaries
associates and joint ventures by an enterprise
is less than the fair value of the investee's 2097001.82
identifiable net assets at the time of
acquisition
251Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Other non-operating revenue or expenditures
except the above items -2855012.54
Less: Enterprise income tax affected -2401931.56
Non-controlling interest affected (after
tax) 1452567.55
Total -18770084.75 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable √ Not Applicable
The Company has no specific circumstances of other profit and loss items that meet the definition of non-
recurring profit and loss.For items defined as non-recurring profit or loss according to “the No. 1 Explanatory Announcement onInformation Disclosure for Companies Offering Their Securities to Public - Non-recurring Profit or Loss” non-
recurring profit or loss items listed in the said document defined as project of recurring profit or loss specify the
reason
□ Applicable √ Not Applicable
2. ROE and EPS
Profit of the reporting period Weighted average EPS (yuan/share)ROE Basic EPS Diluted EPS
Net profit attributable to shareholders of ordinary shares 16.77% 0.84 0.84
Net profit attributable to shareholders of ordinary shares after
deducting non-recurring profit or loss 16.88% 0.84 0.84
3. Financial data variance between financial reporting prepared under domestic and abroad accounting
standards
（1）Differences of net profits and net assets in the financial reports disclosed according to the IFRS and
Chinese Accounting Standards
□ Applicable √ Not Applicable
（2）Differences of net profits and net assets in the financial reports disclosed according to the overseas
accounting standards and Chinese Accounting Standards
□ Applicable √ Not Applicable（ 3 ） Explanation of the reasons for differences in accounting data under domestic and foreign
accounting standards. If adjusting for differences in data already audited by overseas auditing
institutions the name of the overseas institution should be indicated
4. Calculation process for weighted average ROE
（1）Weighted average net assets
Changes in net assets Amount Weighted by Weighted averagemonth net assets
252Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Net assets attributable to ordinary shareholders of the
company at the beginning of the period 17894403984.79 12/12 17894403984.79
Net profit attributable to ordinary shareholders of the
company this period 3099165128.06 6/12 1549582564.03
Cash dividend for the year 2023 -926626153.50 7/12 -540531922.88
Cash dividend for the semi year 2024 -373118861.40 4/12 -124372953.80
Dividends on restricted shares not yet released from lock- 3057250.00 7/12 1783395.83
up 3196500.00 4/12 1065500.00
Repurchase of shares -299977735.21 — -257817162.14
Net assets increased from unlocking of restricted shares for
equity incentives 48250200.00 6/12 24125100.00
Equity-settled share-based payment remuneration 109070573.06 6/12 54535286.53
Impact on current income tax benefit due to difference in
calculation caliber between accounting cost and tax cost of -1829998.29 6/12 -914999.15
share-based payment compensation
Decrease in net assets from capital increase by minority
shareholders of Hangzhou Leaderway Electronics Co. Ltd -4702063.27 —
Difference in translation of foreign currency statements -253119717.76 6/12 -126559858.88
Net assets attributable to the company's common
shareholders at the end of the period 19297769106.48 18475298934.35
（2）Weighted average ROE
Item Notes Current periodcumulative
Net profit attributable to ordinary shareholders of the company A 3099165128.06
Net non-recurring profit or loss attributable to owners of the parent
company B -18770084.75
Net profit attributable to ordinary shareholders of the company after
extraordinary gains and losses C=A-B 3117935212.81
Weighted average net assets D 18475298934.35
Weighted average ROE E=A/D 16.77%
Weighted average ROE after extraordinary gains and losses F=C/D 16.88%
5．The calculation process of basic earnings per share and diluted earnings per share
(1) Basic earnings per share
Item Notes Current periodamount
Net profit attributable to ordinary shareholders of the company A 3099165128.06
Net non-recurring gains and losses attributable to owners of the
parent company B -18770084.75
Net profit attributable to ordinary shareholders of the company
after deducting non-recurring gains and losses C=A-B 3117935212.81
253Zhejiang Sanhua Intelligent Controls Co. Ltd. 2024 Annual Report
Cash dividends allocated to holders of restricted stock expected to
be unlocked in the future D 6253750.00
Total number of shares outstanding at the beginning of the period
(excluding treasury shares and restricted stock) E 3707536608.00
Weighted average number of repurchased shares F -11387189.25
Number of shares that have been unlocked G 2566500.00
Weighted average number of ordinary shares outstanding
(excluding restricted stock) H[Notes] 3698715918.75
Basic earnings per share I=A/H 0.84
Diluted earnings per share after deducting non-recurring gains and
losses J=C/H 0.84
Notes：H=E+F+H
(2) Diluted earnings per share
Item Notes Current periodamount
Net profit attributable to ordinary shareholders of the company A 3099165128.06
Net non-recurring gains and losses attributable to owners of the
parent company B -18770084.75
Net profit attributable to ordinary shareholders of the company
after deducting non-recurring gains and losses C=A-B 3117935212.81
Total number of shares outstanding at the beginning of the
period (excluding treasury shares and restricted stock) D 3707536608.00
Weighted average number of repurchased shares E -11387189.25
Weighted average number of shares increased due to the
unlocking of restricted stock under equity incentive plans F 10528366.70
Weighted average number of ordinary shares outstanding G[Notes] 3706677785.45
Basic earnings per share H=C/J 0.84
Diluted earnings per share after deducting non-recurring gains
and losses I=E/J 0.84
Notes：G=D+E+F
254
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