Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Hangzhou Robam Appliances Co. Ltd.Semi-Annual Report 2024

August 2024Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 1 Important Notes Contents and Interpretations

The Board of Directors the Board of Supervisors as well as the directors

supervisors and senior management of Hangzhou Robam Appliances Co. Ltd.(the Company) hereby guarantee that there are no false representationsmisleading statements or material omissions in this Semi-Annual Report (“theReport”) and are severally and jointly liable for the authenticity accuracy and

completeness of the information contained herein.Ren Jianhua the head of the Company Zhang Guofu the person in

charge of the Company’s accounting and Zhang Guofu the head of the

accounting department (the accountant in charge) hereby declare and warrant

that the financial report contained in the Report is authentic accurate and

complete.All the directors attended a Board meeting during which they reviewed the

Report.The Company is exposed to risks such as fluctuations in the real estate

market policies fluctuations in raw material prices and intensified market

competition. Investors are advised to be aware of the investment risks.The Company's profit distribution plan approved by the Board of

Directors is as follows: based on the total of 944127316 shares a cash

dividend of RMB 5 (inclusive of tax) will be distributed to all shareholders for

every 10 shares held. No bonus shares (inclusive of tax) will be issued and

there will be no capital reserve converted into capital stock.

2Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Contents

Chapter 1 Important Notes Contents and Interpretat... 2

Chapter 2 Company Profile and Major Financial Indi... 6

Chapter 3 Management Discussion and Analysis ........ 9

Chapter 4 Corporate Governance ..................... 21

Chapter 5 Environmental and Social Responsibilitie.. 28

Chapter 6 Significant Matters ...................... 29

Chapter 7 Changes in Shares and Shareholders ....... 33

Chapter 8 Preferred Shares ......................... 38

Chapter 9 Bonds .................................... 39

Chapter 10 Financial Report ........................ 40

3Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Documents Available for Reference

1. Financial statements signed and sealed by the legal representative the person in charge of accounting of the Company and the

person in charge of the accounting firm.

2. Original copies of documents and announcements of the Company published in the newspaper designated by China Securities

Regulatory Commission during the Reporting Period.

3. The Semi-Annual Report 2024 signed by the legal representative on behalf of the Company.

4. Other documents.

4Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Interpretations

Item refer(s) to Contents

The Company Company Robam Appliances refer(s) to Hangzhou Robam Appliances Co. Ltd.MingQi refer(s) to Hangzhou MingQi Electric Co. Ltd.Shengzhou Kinde Intelligent Kitchen Appliance Co.Kinde refer(s) to

Ltd.Jinhe Electric Appliance refer(s) to Hangzhou Jinhe Electric Appliances Co. Ltd.Hangzhou Robam Industrial Group Co. Ltd.Robam Group refer(s) to

controlling shareholder of the Company

The reporting period refer(s) to The first half of 2024

AVC refer(s) to Beijing All View Cloud Data Technology Co. Ltd.

5Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 2 Company Profile and Major Financial Indicators

I. Company Profile

Stock abbreviation Robam Stock code 002508

Stocks traded on Shenzhen Stock Exchange

Chinese name of the

Hangzhou Robam Appliances Co. Ltd.Company

Short Chinese name of the

Robam

Company (if any)

Short English name of the

ROBAM

Company (if any)

Legal representative of the

Ren Jianhua

Company

II. Contact Person and Contact Information

Secretary of the Board of Directors Representative of securities affairs

Name Wang Gang

No. 592 Linping Avenue Linping

Contact address District Hangzhou City Zhejiang

Province

Telephone 0571-86187810

Fax 0571-86187769

E-mail wg@robam.com

III. Other Information

1. Contact information

Whether the registered address office address and zip code as well as the website and email address of the Company changed

during the reporting period

□Applicable □Not applicable

There were no changes in the registered address office address and zip code as well as the website and email address of the

Company during the reporting period. For details please refer to the Annual Report 2023.

2. Information disclosure and filing location

Whether the information disclosure and filing locations changed during the reporting period

□Applicable □Not applicable

During the reporting period there were no changes in the website of stock exchange and name and website of media designated

for information disclosure of the semi-annual report and the location for filing the semi-annual report of the Company. For details

please refer to the Annual Report 2023.

6Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

3.Other information

Whether other relevant information changed during the reporting period

□Applicable □Not applicable

IV. Key Accounting Data and Financial Indicators

Whether the Company needs to retroactively adjust or restate the accounting data of previous years

□ Yes □No

The reporting period The same period last year YoY change

Operating income (RMB) 4729354071.80 4934869800.15 -4.16%

Net profit attributable to

shareholders of the listed 759358954.74 829718350.69 -8.48%

company (RMB)

Net profit attributable to

shareholders of the listed

657758277.88746691977.38-11.91%

company after deducting non-

recurring gains/losses (RMB)

Net cash flow from operating

414005591.39959732853.23-56.86%

activities (RMB)

Basic EPS (RMB/share) 0.80 0.87 -8.05%

Diluted EPS (RMB/share) 0.80 0.87 -8.05%

Weighted average return on

7.01% 8.24% A decrease of 1.23%

net assets

End of the reporting period End of last year Change

Total assets (RMB) 15983377229.74 16779531315.72 -4.74%

Net assets attributable to

shareholders of the listed 10818961564.20 10522938731.68 2.81%

company (RMB)

V. Differences in Accounting Data under Domestic and Foreign Accounting Standards

1. Whether there are differences in the net profit and net asset disclosed in the Financial Report under

International Accounting Standards (IAS) and China’s accounting standards

□Applicable □Not applicable

There is no difference in the net profit and net asset disclosed in the Financial Report under IAS and China’s accounting standards

during the reporting period.

2. Whether there are differences in the net profit and net asset disclosed in the Financial Report under

foreign accounting standards and China’s accounting standards during

□Applicable □Not applicable

There is no difference in the net profit and net asset disclosed in the Financial Report under foreign accounting standards and

China’s accounting standards during the reporting period.

7Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

VI. Items and Amounts of Non-recurring Gains and Losses

□Applicable □Not applicable

In RMB

Item Amount Description

Gains and losses on disposal of non-current assets (including the written-off

-762764.73

part of the provision for asset impairment accrued)

Government subsidies included in current gains and losses (excluding

government subsidies closely related to the Company's normal business

47398220.55

enjoyed in line with national policy and established standards and having a

sustained impact on the Company's gains and losses).Reversal of impairment provision for accounts receivable tested for impairment

76760426.90

separately

Other non-operating revenues and expenses except the above items -2205082.29

Less: Affected amount of income tax 18416180.25

Affected amount of minority shareholders’ equity (after tax) 1173943.32

Total 101600676.86

Other items of gains and losses meeting the definition of non-recurring gains and losses:

□Applicable □Not applicable

The Company does not have other items of gains and losses meeting the definition of non-recurring gains and losses

Explanation on the circumstance where items of the non-recurring gains and losses listed in the Explanatory Announcement No. 1

on Information Disclosure for Companies Offering Their Securities to the Public — Non-recurring Gains and Losses (referred to

as “Announcement No.1”) are defined as recurring profits and losses

□Applicable □Not applicable

Item Amount (in RMB) Reasons

VAT exemption reduction or refund 37394570.29 National tax policy regular business

Refund of individual income tax

421243.63 National tax policy regular business

handling fee

Total 37815813.92

8Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 3 Management Discussion and Analysis

I. Main Businesses during the Reporting Period

In the first half of 2024 the domestic real estate industry remained in a phase of clearing and adjustment. The

kitchen appliance industry is affected by intensified market competition and a decline in consumer spending

willingness leading to a general slowdown in market growth and significant disparities among different channels. Interms of the retail channel as shown in AVC monthly data report based on offline retail market monitoring (“AVCOffline Report”) the year-on-year (YoY) growth of the retail sales of the main categories of kitchen appliances i.e.range hoods and gas stoves registered 6.4% and 7.8% respectively. In terms of the e-commerce channel as shown in

AVC monthly data report based on online retail market monitoring (“AVC Online Report”) the YoY decline of the

retail sales of the kitchen appliances package registered 6.0%. In terms of the developer channel as shown in the

AVC Real Estate Big Data (“AVC Real Estate Report”) due to the sluggish sales of new houses/apartments there

were 301500 sets of newly launched houses/apartments with fine decoration in the first half of the year a YoY

decrease of 19.2%; the penetration rate of fine decoration projects was 35.1% a YoY decrease of 1.7 percentage

points both showing a continuous downward trend. In the first half of 2024 the completed residential area was

192.59 million square meters a decrease of 21.7% compared to the high base under the "ensuring housing project

delivery" policy last year. Consequently the new demand in the kitchen appliance industry has significantly declined.Facing numerous adverse factors Robam has maintained its leading position in the industry by activelypursuing development under the annual business philosophy of “Dreaming Big Evolving Boldly - Constructing aNew Blueprint for the Entire Cooking Process”. According to the AVC Offline Report the retail sales and its market

share of Robam range hood were 31.9% and 26.1% respectively while the retail sales and its market share of Robam

gas stove were 31.3% and 22.9% respectively. As shown in the AVC Online Report the retail sales and its market

share of Robam kitchen appliance package were 27.0% and 20.9% respectively; all the above indexes ranking first in

the industry. In the first half of 2024 the Company achieved a revenue of RMB 4.729 billion representing a YoY

decrease of 4.16%. The net profit attributable to shareholders of the listed company was RMB 759 million a YoY

decrease of 8.48%.As of June 30 2024 according to AVC Offline Report the market shares and market rankings of the

Company’s main product categories in terms of offline retail sales are shown in the following table:

9Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Range hoods Gas stove Disinfection Built-in Built-in Built-in Dishwasher Integrated

cabinet Combi-steam Electric steam Electric stove

oven oven baking oven

31.9%31.3%19.8%26.8%20.9%17.6%18.4%37.6%

11213221

As of June 30 2024 according to AVC Online Report the market shares and market rankings of the Company’s

main product categories in terms of online retail sales are shown in the following table:

Kitchen appliance 2-piece package of Range hoods Gas stove Built-in combi- Built-in electric

package range hood and steam oven steam oven

stove

27.0%28.2%16.3%11.9%11.4%17.5%

111233

As of June 30 2024 according to AVC Real Estate Report the market share of Robam range hoods in the fine

decoration channel was 23.4% ranking second in the industry.In the first half of 2024 the technology sector continued to lead industry innovation by focusing on three key

areas: product innovation digital leadership and management enhancement thereby driving the implementation of

comprehensive cooking chain solutions. Throughout the first half of the year the Company continued to develop and

launch new products with a particular focus on the research and market introduction of the "Chic Series" product line

and several core products. Significant breakthroughs were achieved in AI cooking models the development of a

digital kitchen appliance ecosystem voice and NLP technologies and the IoT platform. Additionally the Company

improved its internal standardization processes to enhance its professionalism in management. As of June 30 2024

the Company has granted a total of 5064 authorized patents including 261 invention patents. The Company also

involved in the formulation of 155 standards leading the development of 42 of them which included 2 international

standard proposals and 4 national standards. In February the international standard proposal for range hoods led by

the Company under the International Electrotechnical Commission (IEC) was officially released. In addition the

digital kitchen appliance combi-steam oven iH1 and the Robam high-performance integrated stove black crystalline

steel 9ZC23 respectively won the AWE Top Award and AWE Design Award.In the first half of 2024 the marketing sector remained committed to a user-centric approach continuously

advancing business and organizational restructuring. The Company steadfastly promoted the high-end branding of

Robam and the popularization of MingQi brand facilitating coordinated progress across the multi-brand matrix to

comprehensively cater to diverse needs of users. In retail channels the focus was on user-oriented organizational

upgrades. The Company has diligently enhanced the all-channels user engagement system and significantly

strengthened store operations. At the same time the Company actively responded to China's trade-in policy by

launching a series of initiatives such as "half-price for new ones with old kitchen appliances". Additionally the

10Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Company offered services such as “same-day delivery and installation with replacement in as fast as 2 hours” and

free cabinet renovation to address any concerns of customers they may have about upgrading their appliances.Against the backdrop of a generally declining new housing market the Company made significant efforts to expand

the existing market which helped the retail channels achieve growth against the trend in the first half of the year. In

the e-commerce channel the Company conducted in-depth analysis of users' needs actively engaged in external

promotion and effectively utilized in-platform traffic resources. By leveraging multi-category collaboration the

Company improved the structure and quality of channel sales. In the developer channel the Company expanded

product categories to scale up sales strictly controlled channel risks optimized customer structure and advanced

high-end breakthroughs and diversified innovation. In the overseas market the Company steadily promoted its going

global strategy and advanced brand internationalization efforts.In the first half of 2024 the production sector with the core of "Consolidating Efforts to Restructure and

Connect with the Future" achieved continuous innovation through the synergy of strategic planning streamlined

processes and consolidated efforts. The sector made significant progress in three main areas: user focus operational

efficiency and transformative change. This approach facilitated business evolution organizational thinking

advancement and the development of new organizational capabilities all aimed at meeting users' needs and

positioning the Company as one of the most competitive benchmarks in China's manufacturing industry. Starting

from the principle of "User First" the Company aimed to build differentiated manufacturing and supply capabilities

enhanced quality control and improved product delivery. Focused on operational efficiency the Company developed

refined cost management capabilities and established mechanisms for the effective utilization of resources.Embracing innovation and leading development the Company drove end-to-end integrated supply chain

transformation reconstructed digital manufacturing capabilities and enhanced digital supply chain management. This

approach supported business transformation and lean innovation positioning the Company as a leader in

manufacturing excellence.In the first half of 2024 the brand sector continued to anchor itself in the cooking industry adhering to a path of

integrating technology with cultural development. Embracing its new identity as a "comprehensive solution provider

for the entire cooking process" the sector redefined the meaning and value of cooking while striving to establish

itself as the leading high-end kitchen appliance brand in China. Focusing on the comprehensive cooking process and

digital cooking technology experience the sector showcased its multi-brand matrix under the theme "Welcome to the

Digital Cooking World" at 2024 AWE (Appliance and Electronics World Expo). In addition Robam Appliances held

the 2024 Robam Appliances Range Hood Ultra-Slim Trend Conference and released the Double Ultra-slim U Series

11Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Range Hood. In collaboration with TikTok Shop's Super Brand Day the Company held the "Philosophy in the Chic

Kitchen" new product launch event. The highlight of the event was the introduction of the Chic Series G1 set

followed by the comprehensive upgrade and launch of the Guangyan S1 Plus dishwasher disinfector. In March the

Company collaborated with the Color Research Institute of China Academy of Art to create the artist version of gas

water heater Chuan HT730. This product was showcased at the "Great Rivers Ultimate Beauty" art exhibition held at

the K11 Art Mall in Shanghai. In April the Company partnered with Xiaohongshu's IP "Home Life Design

Competition" to co-create the "Exploring Kitchen Aesthetics". At the same time the Company once again joined

forces with "The Treasured Voice 5" to present a crossover event that blends music and kitchen experiences pushing

the boundaries of traditional kitchen concepts. At the "Return to the Future" brand launch event held in June the

Company unveiled China's first AI cooking model "God of Cookery" and introduced a new brand value —"Enjoy

Creation". The brand and retail store images were comprehensively updated. Additionally the brand department

collaborated with the Eidos Humanities Society to host an event where renowned scholars discussed the relationships

between users and society technology and civilization contributing to the preservation and advancement of cooking

culture.In the era where the kitchen appliance industry witnesses more fierce competitions in the existing market the

Company will continue to commit to its cooking beliefs and uphold a dual-engine approach driving business model

transformation through both digital kitchen appliances and user operations. The Company will persist in optimizing

its dual-brand operation model with Robam and MingQi.In the first half of 2024 the Company introduced the AI-powered cooking model "God of Cookery" in the realm

of digital kitchen appliances. This innovation not only advances the hardware iteration but also strengthens the

underlying software support exploring the cutting-edge application of AI technology in the cooking field and

providing users with tailor-made cooking solutions. Unlike traditional kitchen appliances that serve merely as

hardware tools "God of Cookery" functions as an intelligent partner capable of understanding users' needs emotions

and habits. It integrates smart planning across kitchen appliances based on users' roles identities emotions actions

health conditions and dietary preferences delivering a comprehensive solution from ingredient selection to cooking

processes and achieving a personalized cooking experience for each individual. This represents a fusion of

"technology + culture" by Robam Appliances and marks another milestone in the pursuit of developing new

productive forces following the creation of the industry's first "unmanned factory" and the launch of the first "digital

kitchen appliances" set.

12Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

In the first half of 2024 in terms of user operations the Company continued to build a systematic user full-

process data asset and experience feedback system to support the transformation of the Company's operations from

channel-oriented to user-centric. The Company has successfully established a Customer Data Platform (CDP)

creating a comprehensive system for user lifecycle data and a robust feedback mechanism. This platform allows for

broader capture of user behavior which is integrated into our analytical framework. Additionally the Company is

expanding user touchpoints through diversified channels such as the ROKI app WeChat mini-programs and WeCom

community focusing on cooking as a core interest to attract and engage users thus building a private community that

stimulates user engagement interaction and creativity. The Company is also advancing the Robam Appliances Net

Promoter Score (NPS) evaluation framework as a key component of future operational metrics which will help

accurately measure and enhance reputation from users thereby developing a more comprehensive and effective user

feedback and summary system.In the first half of 2024 the MingQi brand was revitalized with a new focus on "New Pragmatic Kitchen

Appliances". Targeting the mid-end market the brand adheres to three core standards: "Excellent Performance"

"Practical Functions" and "Durable Quality." The new product forms are designed to effectively cater to the needs of

a wider audience addressing the demand for high-quality cost-effective stable and long-lasting products for

pragmatic consumers. De Dietrich brand continued to receive orders from the developer channel and had already

established a presence in the luxury house decoration market.In the first half of 2024 the Company continued to gain recognition from the capital market in terms of

corporate governance information disclosure and shareholder returns. It has been rated as A level (excellent) in the

information disclosure assessment on listed companies by the Shenzhen Stock Exchange for ten consecutive years.Meanwhile based on improvement and excellent performance in corporate governance and employee welfare

programs the Company is rated as BBB level in terms of MSCI ESG ratings. The Company has established a long-

term incentive mechanism and launched the 2024 Stock Option Incentive Plan in the first half of the year. In response

to the long-term support of investors the Company has introduced the Three-Year Shareholder Return Plan (2024-

2026) which guarantees a special annual dividend to provide investors with stable and substantial returns. 2024

marks a pivotal year in the Company's new three-year strategy. The Company will continue to focus on cooking as its

core constantly aligning with user needs to enhance both the software and hardware capabilities of its products. The

aim is to convey the technological value and humanistic care of the products offering consumers a diverse cooking

experience. By navigating through economic cycles the Company strives to achieve long-term stable and high-

quality growth.

13Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

II. Analysis of Core Competitiveness

There is no significant change in the Company’s core competitiveness during the reporting period. The Company’s core

competitiveness is mainly reflected in its high-end brand positioning R&D capability for continuous innovation comprehensive

and efficient operation capability as shown in the Annual Report 2023.III. Analysis of Main Business

Overview

See the relevant content in the “I. Main Businesses during the Reporting Period”.Year-on-year changes in key financial data

In RMB

The same period last

The reporting period YOY change Reason for change

year

Operating income 4729354071.80 4934869800.15 -4.16%

Operating costs 2417617979.67 2372095971.50 1.92%

Sale expenses 1189754400.18 1360821373.41 -12.57%

Administrative

214267083.09203425816.255.33%

expenses

Financial expense -95390413.45 -68958985.09 Not Applicable

Income tax expense 137595570.63 151830927.51 -9.38%

R&D input 178373820.48 172734141.15 3.26%

The slowdown in

payment collection in

Net cash flow from the period was due to

414005591.39959732853.23-56.86%

operating activities the increase in the

settlement of matured

bank acceptance bills.Net cash flow from

-346629453.74 63023246.17 Not Applicable

investment activities

Due to the two

dividend distributions

Net cash flow from in the period: the 2023

-928670536.81 -443777479.65 Not Applicable

financing activities annual dividend and

the 2023 special

dividend.Net increase in cash

-861277057.45 581455567.34 Not Applicable

and cash equivalents

Major changes on profit composition or profit resources in reporting period

□Applicable □Not applicable

No major changes on profit composition or profit resources occurred in reporting period

14Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Composition of operating income

In RMB

The reporting period The same period last year

% of operating % of operating YOY change

Amount Amount

income income

Total operating

4729354071.80100%4934869800.15100%-4.16%

income

By industry

Kitchen and bathroom

4604808674.2997.37%4793316106.7697.13%-3.93%

appliances

Other businesses 124545397.51 2.63% 141553693.39 2.87% -12.02%

By product category

Category 1

Incl: Range hood 2258608055.24 47.76% 2324953220.91 47.11% -2.85%

Gas stove 1169304461.08 24.72% 1183171484.38 23.98% -1.17%

Disinfection

179381531.423.79%208586939.174.23%-14.00%

cabinet

Category 2

Incl: All-purpose

282119593.775.97%317829778.226.44%-11.24%

oven

Steam oven 27610887.93 0.58% 33863980.47 0.69% -18.47%

Baking oven 25506949.12 0.54% 33333913.56 0.68% -23.48%

Category 3

Incl: Dishwasher 318347953.95 6.73% 331655582.50 6.72% -4.01%

Water purifier 14653776.44 0.31% 19178086.59 0.39% -23.59%

Water heater 110776505.83 2.34% 96459546.77 1.95% 14.84%

Integrated stove 183045699.18 3.87% 204932714.33 4.15% -10.68%

Other small

35453260.330.76%39350859.860.80%-9.90%

appliances

Other operating

124545397.512.63%141553693.392.87%-12.02%

income

By region

East China-Main

2240767978.1647.38%2465263265.3349.96%-9.11%

Products

East China-Others 124470315.80 2.63% 141553693.39 2.87% -12.07%

South China 524496954.45 11.09% 505445895.60 10.24% 3.77%

Central China 472330747.34 9.99% 414023176.19 8.39% 14.08%

North China 516471998.11 10.92% 519977554.25 10.54% -0.67%

Northeast China 238293211.47 5.04% 264181426.54 5.35% -9.80%

Northwest China 238856066.29 5.05% 268067121.49 5.43% -10.90%

Southwest China 344973086.06 7.29% 328679596.66 6.66% 4.96%

Overseas 28693714.12 0.61% 27678070.70 0.56% 3.67%

Industries products and regions accounting for more than 10% of the Company’s operating income or profit

□Applicable □Not applicable

In RMB

YoY

YoY change

Gross change in YoY change in

Operating income Operating costs in the gross

margin operating operating costs

margin

income

By industry

Kitchen and

4604808674.292381821304.0748.28%-3.93%3.33%-3.64%

bathroom appliances

15Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

By product category

Range hoods 2258608055.24 1111513185.01 50.79% -2.85% 6.47% -4.31%

Gas stove 1169304461.08 549521919.73 53.00% -1.17% 6.84% -3.52%

By region

East China-Main

2240767978.161125601403.2849.77%-9.11%0.34%-4.73%

Products

South China 524496954.45 283031848.91 46.04% 3.77% 8.14% -2.18%

North China 516471998.11 249036733.50 51.78% -0.67% 7.04% -3.47%

Main business data of the Company in the recent reporting period according to adjusted statistical caliber at the end of the

reporting period is applied in case that the statistical caliber of such data is adjusted during the reporting period

□Applicable □Not applicable

IV. Analysis of Non-core Business

□Applicable □Not applicable

V. Analysis of Assets and Liabilities

1. Significant changes in assets composition

In RMB

End of the reporting period End of last year Note on

Change in

% of total % of total significant

Amount Amount percentage

assets assets changes

Cash and cash

1147837731.767.18%1985050745.1111.83%-4.65%

equivalents

Accounts

1863130927.8911.66%1810015596.3310.79%0.87%

receivable

Inventory 1399070238.66 8.75% 1524274720.24 9.08% -0.33%

Investment real

87514098.160.55%91136832.310.54%0.01%

estate

Long-term

equity 4978936.31 0.03% 8427450.24 0.05% -0.02%

investment

Fixed assets 1664948226.73 10.42% 1720724257.46 10.25% 0.17%

Construction in

444829440.012.78%359768699.682.14%0.64%

process

Right-of-use

11204929.620.07%13802458.980.08%-0.01%

assets

Short-term

115003320.700.72%95003320.700.57%0.15%

loans

Contract

777554890.024.86%1019942923.586.08%-1.22%

liabilities

Lease liabilities 10343459.83 0.06% 10750792.90 0.06% 0.00%

2. Major overseas assets

□Applicable □Not applicable

16Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

3.Assets and liabilities measured at fair value

□Applicable □Not applicable

4.Restricted asset rights by the end of the reporting period

Item Ending book value Reasons for limit

Cash and cash

89105875.26 L/G margin

equivalents

Cash and cash

41826555.86 Bill acceptance margin

equivalents

Cash and cash

16000.00 ETC security deposits

equivalents

Fixed assets 135979588.89 Mortgage loan

Intangible assets 31222615.70 Mortgage loan

Total 298150635.71 —

VI. Analysis of Investment

1. Overview

□Applicable □Not applicable

2. Major equity investments obtained during the reporting period

□Applicable □Not applicable

3. Major ongoing non-equity investments during the reporting period

□Applicable □Not applicable

4.Financial asset investment

(1) Securities investment

□Applicable □Not applicable

The Company had no securities investment during the reporting period.

(2) Derivative investment

□Applicable □Not applicable

The Company had no derivatives investment during the reporting period.

5. Use of the raised funds

□Applicable □Not applicable

The Company did not use the raised funds during the reporting period.

17Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

VII. Sale of Major Assets and Equities

1. Sale of major assets

□Applicable □Not applicable

The Company did not sell major assets during the reporting period.

2. Sale of major equities

□Applicable □Not applicable

18Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

VIII. Analysis of Main Holding and Joint-stock Companies

□Applicable □Not applicable

Main subsidiaries and joint-stock companies affecting more than 10% of the Company’s net profit

In RMB

Comp

Company Main Registere Operating Operating

any Total assets Net assets Net profit

name business d capital income profit

type

Beijing Robam Sales of

Subsidi

Appliances Sales kitchen 5000000 70521280.46 33404842.29 107209197.15 -5224274.24 -4865036.40

ary

Co. Ltd. appliances

Shanghai Robam Sales of

Subsidi

Appliances Sales kitchen 5000000 84299627.57 -39303847.26 154221576.08 -10186526.30 -10248862.74

ary

Co. Ltd. appliances

Hangzhou Sales of

Subsidi

MingQi Electric kitchen 50000000 206182234.82 40060187.91 228662308.30 3707142.71 3742645.56

ary

Co. Ltd. appliances

Shengzhou

Kinde Intelligent Sales of

Subsidi

Kitchen kitchen 32653061 441361739.93 201847845.91 52276506.48 -17024719.34 -16380401.60

ary

Appliance Co. appliances

Ltd.Hangzhou Jinhe

Sales of

Electric Subsidi

kitchen 10000000 145878350.96 24129921.90 138025762.14 2574042.61 1563020.69

Appliances Co. ary

appliances

Ltd.Acquisition and disposal of subsidiaries during the reporting period

□Applicable □Not applicable

IX. Structured Entities Controlled by the Company

□Applicable □Not applicable

X. Risks and Responses

(1) Risk of fluctuations in the real estate market

The Company has been engaged in the kitchen appliances business for a long time offering various kitchen appliances such

as range hoods gas stoves dishwashers combi-steam oven disinfection cabinets integrated stoves etc. The demands for kitchen

appliances are closely related to the kitchen decoration with certain "decoration" and "furniture" attributes. At present the demand

for our main products is still closely related to the real estate market. The Company is able to resist the market fluctuations by

virtue of its market leadership although fluctuations in the real estate market will still have an impact on the Company’s operating

performances.

(2) Risk of price fluctuation of raw materials

19Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

The main raw materials of the Company’s equipment are stainless steel cold-rolled sheet copper and glass etc. whose price

fluctuations will directly affect the cost of the Company’s products and in turn have an impact on its profitability.

(3) Risk of intensified market competition

In recent years due to the tightening macro environment of the kitchen appliance industry the continuous increase in

industry concentration the comprehensive brands' increasing investment in the kitchen appliance market and the decline in people'

consumption willingness the market competition in the kitchen appliances industry has become increasingly fierce and the

intensification of market competition will have a certain impact on the Company’s operating performances.XI. Implementation of the "Dual Improvement in Quality and Returns" Action Plan

Has the Company disclosed the announcement of the "Dual Improvement in Quality and Returns" action plan

□ Yes □No

20Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 4 Corporate Governance

I. Annual General Meeting of Shareholders and Extraordinary General Meeting of

Shareholders during the Reporting Period

1. Shareholders’ meeting during the reporting period

Proportio

Type of n of Date of Date of

Session of meeting Resolutions

meeting attending meeting disclosure

investors

The Announcement of

Resolutions of the 2023

Annual General

2023 Annual General Meeting Annual General Meeting of

Meeting of 64.28% May 16 2024 May 17 2024

of Shareholders Shareholders of Robam

Shareholders

Appliances (Announcement

No. 2024-031)

The Announcement of

Resolutions of the 2024

Extraordinary

The first extraordinary general First Extraordinary General

general

meeting of shareholders in 62.46% June 19 2024 June 20 2024 Meeting of Shareholders of

meeting of

2024 Robam Appliances

shareholders

(Announcement No. 2024-

045)

2. Preferred shareholders with voting rights recovered requested to convene an extraordinary general

meeting of shareholders

□Applicable □Not applicable

II. Changes in Directors Supervisors and Senior Management

□Applicable □Not applicable

There was no change in directors supervisors and senior management of the Company during the reporting period. For details

please refer to the Annual Report 2023.III. Profit Distribution and Conversion of Capital Reserve into Capital Stock during the

Reporting Period

□Applicable □Not applicable

Number of bonus shares per 10 shares (shares) 0

Dividend per 10 shares (RMB) (including tax) 5

The share capital base for the distribution plan (shares) 944127316

Cash dividend amount (RMB) (including tax) 472063658.00

Cash dividend amount by other means (e.g. share repurchase)

0.00

(RMB)

Total cash dividend amount (including other methods) (RMB) 472063658.00

Distributable profit (RMB) 9349860281.22

21Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Proportion of total cash dividends (including other methods) to

100%

total profit distribution

Cash dividend distribution for this time

For businesses in the growth stage with significant capital expenditure plans the cash dividend proportion in the current profit

distribution should be at least 20%

Detailed explanation of profit distribution and capital reserve conversion plan

As of June 30 2024 the undistributed profits of the parent company amounted to RMB 9349860281.22. According to the

resolution of the board of directors the Company plans to implement mid-term dividend distribution to reward its shareholders.The specific dividend distribution plan is as follows:

(1) The Company plans to distribute cash dividends of RMB 5 per 10 shares (including tax) to all shareholders based on the total

share capital of 944127316 shares as of July 31 2024. The total amount of dividends to be distributed is RMB 472063658.00.

(2) Purpose of mid-term dividend distribution: first to meet the needs of the Company's long-term stable and healthy

development; second to increase cash dividend distribution to boost market confidence while ensuring that the Company's

normal operations and long-term development are not affected; third to actively reward shareholders share the Company's

development dividends with them and enhance their sense of gain.If the Company’s share capital changes due to reasons such as new shares being listed stock option exercises convertible bonds

being converted into shares or share repurchases between the announcement of the distribution plan and the equity registration

date for the dividend distribution adjustments will be made based on the principle of "maintaining the distribution ratio and

adjusting the total distribution amount accordingly".IV. Implementation of the Equity Incentive Plan Employee Stock Ownership Plan or other

Employee Incentives

□Applicable □Not applicable

1. Equity incentive

2021 Stock Option Incentive Plan:

1.On April 14 2021 the Company held the Fourth Meeting of the Fifth Session of the Board of Directors during which the

Proposal on 2021 Stock Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals were

deliberated and approved and the independent directors expressed their independent opinions on and approved the matters related

to the Company’s stock option incentive plan. The Fourth Meeting of the Fifth Session of the Board of Supervisors of the

Company deliberated and approved the above-mentioned proposal and expressed its concurring opinion. The Company disclosed

the above matters on April 15 2021.

2. From April 15 2021 to April 24 2021 the Company internally disclosed the names and titles of the incentive targets of the

stock option incentive plan. On April 27 2021 the Company’s Board of Supervisors published the Review Opinions of the Board

of Supervisors on the List of Incentive Targets of the Stock Option Incentive Plan in 2021 and Explanation on the Publicity. On

the same day the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders

and Incentive Targets of the Stock Option Incentive Plan in 2021.

3. On April 30 2021 the Company held its first extraordinary general meeting of shareholders where it reviewed and approved

the Proposal on the Company’s 2021 Stock Option Incentive Plan (Draft) and Its Summary among other related proposals. This

plan was approved at the Company’s first extraordinary general meeting of shareholders in 2021 and the board of directors was

authorized to determine the grant date for stock options. The board is also responsible for granting stock options to eligible

incentive recipients and handling all matters necessary for granting these stock options.

22Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

4. On May 10 2021 the Sixth Meeting of the Fifth Session of the Board of Directors and the Sixth Meeting of the Fifth Session of

the Board of Supervisors of the Company deliberated and approved the Proposal on the Granting Stock Options to Incentive

Targets. The Board of Supervisors verified the list of incentive targets again and expressed its agreement and the independent

directors of the Company expressed their independent opinion on it.

5. The Company held the 10th meeting of the 5th Board of Directors and the 10th meeting of the 5th Board of Supervisors on

April 19 2022 deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2021 Stock

Option Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during

the First Exercise Period of the 2021 Stock Option Incentive Plan and other proposals. The Board of Supervisors verified it and

expressed its agreement and the independent directors of the Company expressed their independent opinion on it.

6. On April 26 2022 after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing

Corporation Limited the cancellation of the aforementioned 1264000 stock options has been completed. The Company cancelled

a total of 1264000 stock options accounting for 0.13% of the Company's current total capital stock. This cancellation of stock

options complies with relevant laws and regulations the Articles of Association of Hangzhou Robam Appliances Co. Ltd. and

the provisions of the Incentive Plan (Draft) etc. The stock options cancelled this time have not been exercised and the

cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.

7. The Company held the 14th meeting of the 5th Board of Directors and the 14th meeting of the 5th Board of Supervisors on

April 25 2023 deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2021 Stock

Option Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during

the Second Exercise Period of the 2021 Stock Option Incentive Plan and other proposals. The Board of Supervisors verified it and

expressed its agreement and the independent directors of the Company expressed their independent opinion on it.

8. On May 9 2023 after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing

Corporation Limited the cancellation of the aforementioned 945000 stock options has been completed. The Company cancelled a

total of 945000 stock options accounting for 0.10% of the Company's current total capital stock. This cancellation of stock

options complies with relevant laws and regulations the Articles of Association of Hangzhou Robam Appliances Co. Ltd. and

the provisions of the Incentive Plan (Draft) etc. The stock options cancelled this time have not been exercised and the

cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.

9. The Company held the 5th meeting of the 6th Board of Directors and the 5th meeting of the 6th Board of Supervisors on April

24 2024 deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2021 Stock Option

Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during the Third

Exercise Period of the 2021 Stock Option Incentive Plan and other proposals. The board of supervisors has verified this and

expressed its concurring opinion.

10. On May 23 2024 after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing

Corporation Limited the cancellation of the aforementioned 831000 stock options has been completed. The Company cancelled a

total of 831000 stock options accounting for 0.09% of the Company's current total capital stock. This cancellation of stock

options complies with relevant laws and regulations the Articles of Association of Hangzhou Robam Appliances Co. Ltd. and

the provisions of the Incentive Plan (Draft) etc. The stock options cancelled this time have not been exercised and the

cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.

23Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

2022 Stock Option Incentive Plan:

1. On March 31 2022 the Company held the 9th Meeting of the 5th Board of Directors during which the Proposal on 2022 Stock

Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals were deliberated and approved and

the independent directors expressed their independent opinions on and approved the matters related to the Company's stock option

incentive plan. The 9th Meeting of the 5th Board of Supervisors of the Company deliberated and approved the above-mentioned

proposal and expressed its concurring opinion. The Company disclosed the above matters on April 01 2022.

2. From April 1 2022 to April 10 2022 the Company internally disclosed the names and titles of the incentive targets of the stock

option incentive plan. On April 13 2022 the Company’s Board of Supervisors published the Review Opinions of the Board of

Supervisors on the List of Incentive Targets of the Stock Option Incentive Plan in 2022 and Explanation on the Publicity. On the

same day the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders and

Incentive Targets of the Stock Option Incentive Plan in 2022.

3. On April 21 2022 the Company held its first extraordinary general meeting of shareholders where it reviewed and approved

the Proposal on the Company’s 2022 Stock Option Incentive Plan (Draft) and Its Summary among other related proposals. This

plan was approved at the Company’s first extraordinary general meeting of shareholders in 2022 and the board of directors was

authorized to determine the grant date for stock options. The board is also responsible for granting stock options to eligible

incentive recipients and handling all matters necessary for granting these stock options.

4. On May 10 2022 the 11th meeting of the 5th Board of Directors and the 11th meeting of the 5th Board of Supervisors of the

Company deliberated and approved the Proposal on the Granting Stock Options to Incentive Targets. The Board of Supervisors

verified the list of incentive targets again and expressed its agreement and the independent directors of the Company expressed

their independent opinion on it.

5. The Company held the 14th meeting of the 5th Board of Directors and the 14th meeting of the 5th Board of Supervisors on

April 25 2023 deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2022 Stock

Option Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during

the First Exercise Period of the 2022 Stock Option Incentive Plan and other proposals. The Board of Supervisors verified it and

expressed its agreement and the independent directors of the Company expressed their independent opinion on it.

6. On May 9 2023 after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing

Corporation Limited the cancellation of the aforementioned 1609000 stock options has been completed. The Company cancelled

a total of 1609000 stock options accounting for 0.17% of the Company's current total capital stock. This cancellation of stock

options complies with relevant laws and regulations the Articles of Association of Hangzhou Robam Appliances Co. Ltd. and

the provisions of the Incentive Plan (Draft) etc. The stock options cancelled this time have not been exercised and the

cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.

7. The Company held the 5th meeting of the 6th Board of Directors and the 5th meeting of the 6th Board of Supervisors on April

24 2024 deliberating and adopting the Proposal on the Cancellation of Part of the Stock Options under the 2022 Stock Option

Incentive Plan and the Proposal on the Cancellation of Stock Options for Failure to Meet the Exercise Conditions during the

Second Exercise Period of the 2022 Stock Option Incentive Plan and other proposals. The board of supervisors has verified this

and expressed its concurring opinion.

24Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

8. On May 23 2024 after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing

Corporation Limited the cancellation of the aforementioned 1451000 stock options has been completed. The Company cancelled

a total of 1451000 stock options accounting for 0.15% of the Company's current total capital stock. This cancellation of stock

options complies with relevant laws and regulations the Articles of Association of Hangzhou Robam Appliances Co. Ltd. and

the provisions of the Incentive Plan (Draft) etc. The stock options cancelled this time have not been exercised and the

cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.

2023 Stock Option Incentive Plan:

1.On April 25 2023 the Company held the 14th Meeting of the 5th Board of Directors during which the Proposal on 2023 Stock

Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals were deliberated and approved and

the independent directors expressed their independent opinions on and approved the matters related to the Company’s stock option

incentive plan. The 14th meeting of the 5th Board of Supervisors of the Company deliberated and adopted the above-mentioned

proposals and expressed its concurring opinion. The Company disclosed the above matters on April 26 2023.

2. From April 26 2023 to May 8 2023 the Company internally disclosed the names and titles of the incentive targets of the stock

option incentive plan. On May 9 2023 the Company’s Board of Supervisors published the Review Opinions of the Board of

Supervisors on the List of Incentive Targets of the Stock Option Incentive Plan in 2023 and Explanation on the Publicity. On the

same day the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders and

Incentive Targets of the Stock Option Incentive Plan in 2023.

3. On May 18 2023 the Company held its annual general meeting of shareholders for 2022 where it reviewed and approved the

Proposal on the Company’s 2023 Stock Option Incentive Plan (Draft) and Its Summary among other related proposals. This plan

was approved at the Company’s annual general meeting of shareholders in 2022 and the board of directors was authorized to

determine the grant date for stock options. The board is also responsible for granting stock options to eligible incentive recipients

and handling all matters necessary for granting these stock options.

4. On June 20 2023 the 15th meeting of the 5th Board of Directors and the 15th meeting of the 5th Board of Supervisors of the

Company deliberated and approved the Proposal on the Granting Stock Options to Incentive Targets. The Board of Supervisors

verified the list of incentive targets again and expressed its agreement and the independent directors of the Company expressed

their independent opinion on it.

5. On April 25 2024 the Company held the 5th meeting of the 6th board of directors and the 5th meeting of the 6th board of

supervisors and approved the Proposal on the Cancellation of Part of the Stock Options under the 2023 Stock Option Incentive

Plan and other proposals. The board of supervisors has verified this and expressed its concurring opinion.

6. On May 23 2024 after being reviewed and confirmed by the Shenzhen Branch of China Securities Depository and Clearing

Corporation Limited the cancellation of the aforementioned 908800 stock options has been completed. The Company cancelled a

total of 908800 stock options accounting for 0.10% of the Company's current total capital stock. This cancellation of stock

options complies with relevant laws and regulations the Articles of Association of Hangzhou Robam Appliances Co. Ltd. and

the provisions of the Incentive Plan (Draft) etc. The stock options cancelled this time have not been exercised and the

cancellation will not have any impact on the Company's capital stock. The capital structure has not changed.

7. On June 20 2024 the Company held the 8th meeting of the 6th board of directors and the 8th meeting of the 6th board of

25Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

supervisors and approved the Proposal on the Achievement of Exercise Conditions for the First Exercise Period of the 2023 Stock

Option Incentive Plan. The board of supervisors has verified this and expressed its concurring opinion.

2024 Stock Option Incentive Plan:

1. On April 24 2024 the Company held the 5th Meeting of the 6th Board of Directors during which the Proposal on 2024 Stock

Option Incentive Plan (Draft) of the Company and Its Summary and other related proposals were deliberated and approved and

the independent directors expressed their independent opinions on and approved the matters related to the Company's stock option

incentive plan. The 5th Meeting of the 6th Board of Supervisors of the Company deliberated and approved the above-mentioned

proposal and expressed its concurring opinion. The Company disclosed the above matters on April 25 2024.

2. From April 26 2024 to May 6 2024 the Company internally disclosed the names and titles of the incentive targets of the stock

option incentive plan. On May 08 2024 the Company’s Board of Supervisors published the Review Opinions of the Board of

Supervisors on the List of Incentive Targets of the Stock Option Incentive Plan in 2024 and Explanation on the Publicity. On the

same day the Company disclosed the Self-inspection Report on the Purchase and Sale of the Company’s Shares by Insiders and

Incentive Targets of the Stock Option Incentive Plan in 2024.

3. On May 16 2024 the Company held its annual general meeting of shareholders for 2023 where it reviewed and approved the

Proposal on the Company’s 2024 Stock Option Incentive Plan (Draft) and Its Summary among other related proposals. This plan

was approved at the Company’s annual general meeting of shareholders in 2023 and the board of directors was authorized to

determine the grant date for stock options. The board is also responsible for granting stock options to eligible incentive recipients

and handling all matters necessary for granting these stock options.

4. On May 20 2024 the 6th meeting of the 6th Board of Directors and the 6th meeting of the 6th Board of Supervisors of the

Company approved the Proposal on Adjusting the List of Incentive Recipients and the Number of Grants for the 2024 Stock Option

Incentive Plan and the Proposal on Granting Stock Options to Incentive Recipients. The proposal has been approved by the

Remuneration and Assessment Committee of the 6th Board of Directors of the Company in the third review of 2024. The Board of

Supervisors also re-verified the list of incentive recipients and expressed its approval.

2. Implementation of the employee stock ownership plan

□Applicable □Not applicable

3. Other employee incentive plans

□Applicable □Not applicable

Phase I Partner Equity Ownership Plan

1. On April 14 2021 the Company held the 4th Meeting of the 5th Session of the Board of Directors during which the Proposal

on Partner Equity Ownership Plan (Draft) of the Company and Its Summary and other related proposals were deliberated and

approved and the independent directors expressed their independent opinions on and approved the matters related to the

Company’s Partner Equity Ownership Plan. The Fourth Meeting of the Fifth Session of the Board of Supervisors of the Company

deliberated and approved the above-mentioned proposal and expressed its concurring opinion. The Company disclosed the above

matters on April 15 2021.

26Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

2. On April 30 2021 the Company held its first extraordinary general meeting of shareholders for 2021 where it reviewed and

approved the Proposal on the Company's Partner Equity Ownership Plan (Draft) and Its Summary among other related proposals.This plan was approved at the Company’s first extraordinary general meeting of shareholders in 2021 authorizing the board of

directors to decide on or handle matters related to this plan.

3. On April 20 2022 the Company disclosed the Announcement on the Failure to Meet the Assessment Conditions for the 2021

Partner Equity Ownership Plan. According to the relevant provisions of the ownership plan the assessment conditions for the

2021 Partner Equity Ownership Plan were not met and the Company will not allocate the special fund for the ownership plan for

that year.

4. On April 26 2023 the Company disclosed the Announcement on the Failure to Meet the Assessment Conditions for the 2022

Partner Equity Ownership Plan. According to the relevant provisions of the ownership plan the assessment conditions for the

2022 Partner Equity Ownership Plan were not met and the Company will not allocate the special fund for the ownership plan for

that year.

5. On April 25 2024 the Company disclosed the Announcement on the Failure to Meet the Assessment Conditions for the 2023

Partner Equity Ownership Plan. According to the relevant provisions of the ownership plan the assessment conditions for the

2023 Partner Equity Ownership Plan were not met and the Company will not allocate the special fund for the ownership plan for

that year.Phase II Partner Equity Ownership Plan

On April 24 2024 the Company held the 5th meeting of the 6th Board of Directors where it reviewed and approved the Proposal

on the Company's Phase II Partner Equity Ownership Plan (Draft) and Its Summary among other related proposals. The second

meeting of the Remuneration and Assessment Remuneration and Assessment Committee of the 6th board of directors reviewed

and approved the forementioned proposals. The 5th Meeting of the 6th Board of Supervisors of the Company deliberated and

approved the above-mentioned proposal and expressed its concurring opinion. The Company disclosed the above matters on April

252024.

On May 16 2024 the Company held its annual shareholder meeting for the year 2023 and approved the Proposal on the

Company's Phase II Partner Equity Ownership Plan (Draft) and Its Summary and other related proposals. This plan was approved

by the Company's annual shareholder meeting for the year 2023 authorizing the board of directors to decide on or handle matters

related to this plan.

27Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 5 Environmental and Social Responsibilities

I. Major Environmental Issues

Whether the listed company and its subsidiaries are the key pollution-discharging units announced by the environmental protection

authorities.□ Yes □No

Administrative penalties due to environmental issues during the reporting period.Impact on the

The Company's

Name of company Reasons for production and

Violations Penalties rectification

or subsidiary penalties operation of the

measures

listed company

N/A N/A N/A N/A N/A N/A

Refer to other environmental information disclosed by key pollutant discharging units.N/A

Measures taken to reduce carbon emissions during the reporting period and their effects

□Applicable □Not applicable

Reasons for not disclosing other environmental information

N/A

II. Social Responsibility

The Company discloses its annual CSR Report or ESG Report as detailed in the Robam Appliances 2023 Environmental Social

and Corporate Governance (ESG) Report disclosed on www.cninfo.com.cn.

28Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 6 Significant Matters

I. Commitments made by the Company’s actual controllers shareholders affiliates

purchasers and the Company itself and other relevant parties already fulfilled during the

reporting period and not yet fulfilled at the end of the reporting period

□Applicable □Not applicable

I. There were no commitments made by the Company’s actual controllers shareholders affiliates purchasers and the Company

itself and other relevant parties already fulfilled during the reporting period and not yet fulfilled at the end of the reporting period

II. Non-operating Occupation of Funds of the Listed Company by the Controlling

Shareholder and Other Affiliated Parties

□Applicable □Not applicable

There was no non-operating occupation of funds of the listed company by the controlling shareholder and other affiliated parties

during the reporting period.III. Illegal External Guarantee

□Applicable □Not applicable

The Company had no illegal external guarantees during the reporting period.IV. Appointment and Dismissal of Accounting Firm

Whether the semi-annual financial report has been audited

□ Yes □No

The semi-annual financial report of the Company has not been audited.V. Statements of the Board of Directors and the Board of Supervisors on the “Non-standardAudit Report” Issued by the Accounting Firm for the Reporting Period

□Applicable □Not applicable

VI. Statements of the Board of Directors on the “Non-standard Audit Report” for the Last

Year

□Applicable □Not applicable

VII. Matters Related to Bankruptcy Reorganization

□Applicable □Not applicable

The Company did not have any matters related to bankruptcy reorganization during the reporting period.

29Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

VIII. Litigation Matters

Material litigation and arbitration

□Applicable □Not applicable

The Company had no major litigation and arbitration during the reporting period.Other litigation matters

□Applicable □Not applicable

IX. Punishment and Rectification

□Applicable □Not applicable

There was no punishment or rectification during the reporting period.X. Integrity Conditions of the Company and its Controlling Shareholders

□Applicable □Not applicable

XI. Major Connected Transactions

1. Connected transactions concerning daily operations

□Applicable □Not applicable

The Company had no connected transactions concerning daily operations during the reporting period.

2. Connected transactions related to the acquisition or sales of assets or equity

□Applicable □Not applicable

The Company had no connected transactions related to the acquisition or sales of assets or equity during the reporting period.

3. Connected transactions related to joint outward investment

□Applicable □Not applicable

The Company had no connected transactions related to joint outward investment during the reporting period.

4. Connected transactions on credit and debt

□Applicable □Not applicable

The Company had no connected transactions on credit and debt during the reporting period.

5.Transactions with connected finance companies

□Applicable □Not applicable

There were no deposits loans credits or other financial operations between the Company and connected finance companies and

affiliates.

30Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

6.Transactions between finance companies controlled by the Company and affiliates

□Applicable □Not applicable

There were no deposits loans credits or other financial operations between finance companies controlled by the Company and

affiliates.

7. Other major connected transactions

□Applicable □Not applicable

There were no other major connected transactions during the reporting period.XII. Major Contracts and Their Performance

1. Entrustment contracting and leasing

(1) Entrustment

□Applicable □Not applicable

The Company had no entrustment during the reporting period.

(2) Contracting

□Applicable □Not applicable

There was no contracting during the reporting period.

(3) Leasing

□Applicable □Not applicable

There was no leasing during the reporting period.

2. Material guarantee

□Applicable □Not applicable

The Company had no material guarantee during the reporting period.

3. Financial management entrusting

□Applicable □Not applicable

Unit: RMB 10000

Impairment

amount accrued of

Overdue

overdue but not

Specific type Fund source Amount incurred Undue balance amount not

recovered financial

recovered

management

products

Bank financial

Own funds 40619.00 313100.00 0 0

products

Total 40619.00 313100.00 0 0

31Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

The specific situation of high-risk entrusted financial management with large single-item amount or low safety and poor liquidity

□Applicable □Not applicable

Conditions where the capital of entrusted financial management cannot be recovered or may be impaired

□Applicable □Not applicable

4. Other material contracts

□Applicable □Not applicable

The Company had no other material contracts during the reporting period.XIII. Explanation of Other Significant Matters

□Applicable □Not applicable

The Company had no other significant matters that need to be explained during the reporting period.XIV. Significant Matters of Subsidiaries of the Company

□Applicable □Not applicable

32Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 7 Changes in Shares and Shareholders

I. Changes in Shares

1. Changes in shares

Unit: Share

Before change Change (+. -) After change

Bo

Shares

nu

Percen Issue convertes Sub-tot Percent

Number tage of new d from Others Number

sh al age (%)

(%) shares capital

are

reserve

s

I. Shares subject to sales

122618471.29%-874718-874718113871291.20%

restrictions

1. Shares held by the

state

2. Shares held by the

state-owned legal persons

3. Shares held by other

122618471.29%-874718-874718113871291.20%

domestic investors

Including: shares held

by domestic legal persons

Including: shares held

by domestic natural 12261847 1.29% -874718 -874718 11387129 1.20%

persons

4. Shares held by

overseas investors

Including: shares held

by overseas legal persons

Shares held by

overseas natural persons

II. Shares without sales

93676220398.71%87471887471893763692198.80%

restrictions

1. RMB ordinary shares 936762203 98.71% 874718 874718 937636921 98.80%

2. Domestically listed

foreign shares

3. Overseas listed

foreign shares

4. Others

100.00

III. Total shares 949024050 949024050 100.00%

%

Reason for share changes

□Applicable □Not applicable

Approval of changes in shares

□Applicable □Not applicable

33Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Transfer of ownership of changes in shares

□Applicable □Not applicable

Progress in the implementation of shares repurchase

□Applicable □Not applicable

Progress of transferring repurchased shares by means of centralized bidding

□Applicable □Not applicable

The impact of changes in shareholding on the financial indicators such as basic earnings per share (EPS) diluted EPS and net

assets per share attributable to common shareholders for the latest year and the latest period.□Applicable □Not applicable

Other information deemed necessary by the Company or required to be disclosed by securities regulatory authorities.□Applicable □Not applicable

2. Changes in shares subject to sales restrictions

□Applicable □Not applicable

Unit: Share

Number of

Number of

Restricted

Initial Restricted Ending Date of

Name of Shares Reason for

Restricted Shares Added Restricted Restriction

shareholder Released Restriction

Shares During the Shares Release

During the

Current Period

Current Period

End of board of 6 Months After

Zhang

834312 834312 0 0 supervisors’ Term

Songnian

term departure Expiration

End of board of 6 Months After

Shen Yueming 40406 40406 0 0 supervisors’ Term

term departure Expiration

Total 874718 874718 0 0 -- --

II. Securities Issuance and Listing

□Applicable □Not applicable

III. Number of Shareholders of the Company and Their Shareholdings

Unit: Share

Total number of preference shareholders

Total number of common

with voting rights recovered at the end

shareholders at the end of the 50752 0

of the reporting period (if any) (see

reporting period

Note 8)

Shareholdings of common shareholders holding more than 5% of the Company’s shares or top 10 common shareholders (excluding

share lent through refinancing)

Number of Number Number of Pledged marked or frozen

Change

Shareh common of shares shares shares

Name of Nature of during the

olding shares held subject to without

shareholder shareholder reporting

ratio at the end of sales sales

period Status Number

the restriction restrictions

34Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

reporting s

period

Hangzhou Robam Domestic non-

Not

Industrial Group state-own ed 49.68% 471510000 471510000

Applicable

Co. Ltd. corporation

Hong Kong

Securities Overseas Not

9.37%888850332029889888885033

Clearing corporation Applicable

Company Limited

TEMASEK

FULLERTON Overseas Not

1.79%16950061-31555616950061

ALPHA PTE corporation Applicable

LTD

413 Portfolio of

Not

National Social Others 1.36% 12902204 787004 12902204

Applicable

Security Fund

Domestic natural Not

Shen Guoying 1.29% 12240000 12240000

person Applicable

Schroder

Investment

Management

(Hong Kong)

Overseas Not

Limited - 0.86% 8202175 8202175 8202175

corporation Applicable

Schroder Global

Equity Fund

China A-Shares

(Exchange)

406 Portfolio of

Not

National Social Others 0.83% 7829500 7829500 7829500

Applicable

Security Fund

Hangzhou

Domestic non-

Jinchuang Not

state-own ed 0.70% 6640085 6640085

Investment Co. Applicable

corporation

Ltd.Hangzhou

Domestic non-

Yinchuang Not

state-own ed 0.67% 6318000 6318000

Investment Co. Applicable

corporation

Ltd.Domestic natural Not

Ren Jianhua 0.62% 5923150 4442362 1480788

person Applicable

Strategic investor or general legal

person who becomes one of the

N/A

top 10 common shareholders due

to rights issue (if any) (see Note 3)

Mr. Ren Jianhua is the actual controller of the controlling shareholder of the Company -

Description of the associated

Hangzhou Robam Industrial Group Co. Ltd. and the shareholder of the Company - Hangzhou

relationship or consistent actions

Jinchuang Investment Co. Ltd.; and the natural person shareholder Shen Guoying is his wife.of the above shareholders

Therefore there is a possibility that these shareholders will act in concert.Statements of the above

shareholders on proxy/trustee

N/A

voting rights and abstention from

voting rights

Special note on the presence of

repurchase accounts among the

N/A

top 10 shareholders (if any) (see

Note 11)

35Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Shareholdings of the top 10 common shareholders not subject to sales restrictions (excluding shares lent through refinancing and

executive locked shares)

Type of share

Number of shares without sales restrictions held at the end of the

Name of shareholder

reporting period Type of Number

share

RMB

Hangzhou Robam Industrial Group

471510000 ordinary 471510000

Co. Ltd.shares

RMB

Hong Kong Securities Clearing

88885033 ordinary 88885033

Company Limited

shares

RMB

TEMASEK FULLERTON ALPHA

16950061 ordinary 16950061

PTE LTD

shares

RMB

413 Portfolio of National Social

12902204 ordinary 12902204

Security Fund

shares

RMB

Shen Guoying 12240000 ordinary 12240000

shares

Schroder Investment Management

RMB

(Hong Kong) Limited - Schroder

8202175 ordinary 8202175

Global Equity Fund China A-Shares

shares

(Exchange)

RMB

406 Portfolio of National Social

7829500 ordinary 7829500

Security Fund

shares

RMB

Hangzhou Jinchuang Investment Co.

6640085 ordinary 6640085

Ltd.shares

RMB

Hangzhou Yinchuang Investment Co.

6318000 ordinary 6318000

Ltd.shares

RMB

Agricultural Bank of China Co. Ltd. -

5793600 ordinary 5793600

CSI 500 Exchange Traded Fund

shares

Description on associated

relationship or consistent actions

among the top 10 common Mr. Ren Jianhua is the actual controller of the controlling shareholder of the Company -

shareholders not subject to sales Hangzhou Robam Industrial Group Co. Ltd. and the shareholder of the Company - Hangzhou

restrictions and between the top 10 Jinchuang Investment Co. Ltd.; and the natural person shareholder Shen Guoying is his wife.common shareholders not subject Therefore there is a possibility that these shareholders will act in concert.to sales restrictions and the top 10

common shareholders

Description on the top 10 common

shareholders engaging in securities

N/A

margin trading (if any) (see Note

4)

Shares lending through refinancing involving shareholders holding more than 5% of the shares the top 10 shareholders and the

top 10 shareholders of unrestricted circulating shares

□Applicable □Not applicable

Compared to the previous period the change is due to the top 10 shareholders and the top 10 unrestricted circulating shareholders

lending/returning shares for refinancing purposes.□Applicable □Not applicable

36Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Did any of the top 10 common shareholders and the top 10 common shareholders not subject to sales restrictions of the Company

have any agreed repurchase trading during the reporting period

□ Yes □No

There was no agreed repurchase trading between the top 10 common shareholders and the top 10 common shareholders not subject

to sales restrictions of the Company during the reporting period.IV. Changes in Shares Held by Directors Supervisors and Senior Management

□Applicable □Not applicable

There was no change in the shareholdings of directors supervisors and senior management of the Company during the reporting

period.V. Changes in the Controlling Shareholder and the Actual Controller

Changes in the controlling shareholder during the reporting period

□Applicable □Not applicable

There was no change in the controlling shareholder of the Company during the reporting period.Changes in the actual controller during the reporting period

□Applicable □Not applicable

There was no change in the actual controller of the Company during the reporting period.

37Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 8 Preferred Shares

□Applicable □Not applicable

The Company had no preferred shares during the reporting period.

38Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 9 Bonds

□Applicable □Not applicable

39Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Chapter 10 Financial Report

I. Audit Report

Whether the semi-annual report has been audited

□ Yes □No

The semi-annual financial report of the Company has not been audited.II. Financial Statements

The financial statement notes are represented in RMB.

1. Consolidated Balance Sheet

Prepared by: Hangzhou Robam Appliances Co. Ltd.June 30 2024

In RMB

Item Ending balance Beginning balance

Current assets:

Cash and cash equivalents 1147837731.76 1985050745.11

Deposit reservation for balance

Lendings to banks and other

Financial assets held for trading 2551000029.50 2730000000.00

Derivative financial assets

Notes receivable 368798633.67 696284931.64

Accounts receivable 1863130927.89 1810015596.33

Accounts receivable financing

Prepayments 185682213.92 139713471.58

Receivable premium

Reinsurance accounts receivable

Provision of cession receivable

Other receivables 86770440.47 53368667.34

Including: Interests receivable

Dividends receivable

Redemptory monetary capital for sale

Inventory 1399070238.66 1524274720.24

Including: Data resources

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 1548608076.94 2647808620.70

Total current assets 9150898292.81 11586516752.94

40Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Non-current assets:

Loans and advances

Debt investment

Other debt investments

Long-term accounts receivable

Long-term equity investment 4978936.31 8427450.24

Investment in other equity instruments 2116023.22 2116023.22

Other non-current financial assets 580000000.00 480000000.00

Investment real estate 87514098.16 91136832.31

Fixed assets 1664948226.73 1720724257.46

Construction in process 444829440.01 359768699.68

Productive biological assets

Oil and gas assets

Right-of-use assets 11204929.62 13802458.98

Intangible assets 209040350.53 214553739.31

Including: Data resources

Development expenses

Including: Data resources

Goodwill 12223271.67 12223271.67

Long-term prepaid expenses 3277650.70 5034659.37

Deferred tax assets: 394083237.85 362897841.89

Other non-current assets 3418262772.13 1922329328.65

Total non-current assets 6832478936.93 5193014562.78

Total assets 15983377229.74 16779531315.72

Current liabilities:

Short-term loans 115003320.70 95003320.70

Borrowings from the central bank

Borrowings from banks and other

financial institutions

Borrowings from banks and other

financial institutions

Financial liabilities held for trading

Derivative financial liabilities

Notes payables 993551028.00 1098720000.58

Accounts payable 2384005428.78 2548743762.06

Advance receipts

Contract liabilities 777554890.02 1019942923.58

Financial assets sold for repurchase

Deposits from customers and

interbank

Receivings from vicariously traded

securities

Receivings from vicariously sold

securities

41Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Payroll payable 39032647.38 177923042.01

Taxes payable 205803940.00 154365676.80

Other payables 290336577.77 755964919.76

Including: Interests payable

Dividends payable 472047458.00

Fees and commissions payable

Dividends payable for reinsurance

Liabilities held for sale

Non-current liabilities due within one

2163637.204522658.42

year

Other current liabilities 94072365.82 118041351.23

Total current liabilities 4901523835.67 5973227655.14

Non-current liabilities:

Reserves for insurance contracts

Long-term loans

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 10343459.83 10750792.90

Long-term accounts payable

Long-term payroll payable

Estimated liabilities

Deferred income 125499549.27 136538254.74

Deferred income tax liabilities 29831173.39 28418565.01

Other non-current liabilities

Total non-current liabilities 165674182.49 175707612.65

Total liabilities 5067198018.16 6148935267.79

Owner’s equity

Capital stock 949024050.00 949024050.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserve 420477027.47 411778214.22

Less: treasury stock 199995742.59 199995742.59

Other comprehensive income -100145111.63 -100157634.16

Special reserve

Surplus reserve 474516412.50 474516412.50

General risk reserve

Undistributed profits 9275084928.45 8987773431.71

Total owners’ equity attributable to the

10818961564.2010522938731.68

parent company

Minority interests 97217647.38 107657316.25

Total owners’ equity 10916179211.58 10630596047.93

Total liabilities and owner’s equity 15983377229.74 16779531315.72

Legal representative: Ren Jianhua Person in charge of accounting: Zhang Guofu Head of the accounting department: Zhang Guofu

42Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

2. Balance Sheet of the Parent Company

In RMB

Item Ending balance Beginning balance

Current assets:

Cash and cash equivalents 933698210.45 1810087936.08

Financial assets held for trading 2550000000.00 2730000000.00

Derivative financial assets

Notes receivable 348583175.36 662718295.18

Accounts receivable 1879406959.27 1755848590.56

Accounts receivable financing

Prepayments 154637824.61 127173134.27

Other receivables 78302506.11 46761052.06

Including: Interests receivable

Dividends receivable

Inventory 1263539923.32 1404838448.75

Including: Data resources

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets 1545379791.00 2644890957.65

Total current assets 8753548390.12 11182318414.55

Non-current assets:

Debt investment

Other debt investments

Long-term accounts receivable

Long-term equity investment 269939495.45 255471029.63

Investment in other equity instruments 2116023.22 2116023.22

Other non-current financial assets 580000000.00 480000000.00

Investment real estate 7497512.14 8735897.94

Fixed assets 1479292114.87 1528320306.82

Construction in process 444829440.01 359768699.68

Productive biological assets

Oil and gas assets

Right-of-use assets

Intangible assets 145036856.24 148054087.98

Including: Data resources

Development expenses

Including: Data resources

Goodwill

Long-term prepaid expenses 1642891.91 2703497.73

Deferred tax assets: 376250883.78 346004342.16

Other non-current assets 3418068772.13 1922135328.65

43Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Total non-current assets 6724673989.75 5053309213.81

Total assets 15478222379.87 16235627628.36

Current liabilities:

Short-term loans 14503320.70 14003320.70

Borrowings from banks and other

financial institutions

Financial liabilities held for trading

Derivative financial liabilities

Notes payables 942426745.42 1042067981.92

Accounts payable 2262309293.28 2416687934.76

Advance receipts

Contract liabilities 688622509.14 947538425.82

Payroll payable 20529379.35 145416052.40

Taxes payable 196275701.17 140518721.35

Other payables 263384328.95 725701383.40

Including: Interests payable

Dividends payable 472047458.00

Liabilities held for sale

Non-current liabilities due within one

year

Other current liabilities 82538001.71 107860993.92

Total current liabilities 4470589279.72 5539794814.27

Non-current liabilities:

Long-term loans

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities

Long-term accounts payable

Long-term payroll payable

Estimated liabilities

Deferred income 91396861.47 101473668.84

Deferred income tax liabilities 22900934.20 20898710.27

Other non-current liabilities

Total non-current liabilities 114297795.67 122372379.11

Total liabilities 4584887075.39 5662167193.38

Owner’s equity

Capital stock 949024050.00 949024050.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserve 420087937.51 411389124.26

Less: treasury stock 199995742.59 199995742.59

Other comprehensive income -100157634.16 -100157634.16

Special reserve

44Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Surplus reserve 474516412.50 474516412.50

Undistributed profits 9349860281.22 9038684224.97

Total owners’ equity 10893335304.48 10573460434.98

Total liabilities and owner’s equity 15478222379.87 16235627628.36

45Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

3. Consolidated Income Statement

In RMB

Item Semi-annual 2024 The first half of 2023

I. Total operating income 4729354071.80 4934869800.15

Inc: Operating income 4729354071.80 4934869800.15

Interest income

Earned premium

Fee and commission income

II. Total operating costs 3939853384.87 4072326288.42

Inc: Operating costs 2417617979.67 2372095971.50

Interest expenses

Fee and commission expenses

Surrender value

Net payments for insurance

claims

Net allotment of reserves for

insurance liabilities

Policy dividend expenditures

Reinsurance expenses

Taxes and surcharges 35230514.90 32207971.20

Sale expenses 1189754400.18 1360821373.41

Administrative expenses 214267083.09 203425816.25

R&D expenses 178373820.48 172734141.15

Financial expense -95390413.45 -68958985.09

Inc: Interest expenses 1294179.47 2707272.10

Interest income 97172965.14 69274034.42

Add: other income 85214034.47 70659558.76

Investment income (“-” for

18060180.2621723618.81

losses)

Inc: Income from investment

-3448513.93-1263184.05

in joint ventures and affiliated enterprises

Gains on

derecognition of financial assets

measured at amortized cost

Exchange gains (“-” for losses)

Net exposure hedging gains (“-”

for losses)

Gains from changes in fair value

("-" for losses)

Losses from credit impairment

3339683.6723290586.40

(“-” for losses)Losses from asset impairment (“--6645269.34-3921456.14

” for losses)

Gains on disposal of assets (“-”

-761243.36-576718.41

for losses)

46Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

III. Operating profits (“-” for losses) 888708072.63 973719101.15

Add: non-operating income 885943.04 2803959.50

Less: non-operating expenditure 3092546.70 1449874.49

IV. Total profits (“-” for total losses) 886501468.97 975073186.16

Minus: income tax expense s 137595570.63 151830927.51

V. Net profits (“-” for net losses) 748905898.34 823242258.65

(I) By operational sustainability

1. Net profits from continuing

748905898.34823242258.65

operations (“-” for net losses)

2. Net profits from discontinued

operations (“-” for net losses)

(II) By ownership

1. Net profit attributable to

shareholders of the parent company (“-” 759358954.74 829718350.69

for net losses)

2. Minority shareholders’ gains and

-10453056.40-6476092.04

losses (“-” for net losses)

VI. After-tax net amount of other

25910.06

comprehensive income

After-tax net amount of other

comprehensive income attributable to 12522.53

owners of the parent company

(I) Other comprehensive income

that cannot be reclassified into gains and

losses

1. Changes in re-measured and

defined benefit plans

2. Other comprehensive income

which cannot be transferred to gains or

losses under the equity method

3. Changes in fair value of the

investment in other equity instruments

4. Changes in fair value of the

credit risk of the Company

5. Others

(II) Other comprehensive income

which will be reclassified into gains and 12522.53

losses

1. Other comprehensive income

which can be transferred into gains and

losses under the equity method

2. Changes in fair value of other

debt investments

3. Amount of financial assets

reclassified into other comprehensive

income

4. Provision for credit impairment

of other debt investments

5. Cash flow hedge reserve

6. Converted difference in foreign

12522.53

currency statements

7. Others

After-tax net amount of other

comprehensive income attributable to 13387.53

minority shareholders

47Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

VII. Total comprehensive income 748931808.40 823242258.65

Total comprehensive income

attributable to owners of the parent 759371477.27 829718350.69

company

Total comprehensive income

-10439668.87-6476092.04

attributable to minority shareholders

VIII. Earnings per share (EPS):

(I) Basic EPS 0.80 0.87

(II) Diluted EPS 0.80 0.87

Legal representative: Ren Jianhua Person in charge of accounting: Zhang Guofu Head of the accounting department: Zhang Guofu

4. Income Statement of the Parent Company

In RMB

Item Semi-annual 2024 The first half of 2023

I. Operating income 4369901782.29 4490148776.21

Less: Operating costs 2287778860.63 2272924581.00

Taxes and surcharges 29970386.67 26445659.50

Sale expenses 986325349.96 1071915930.73

Administrative expenses 160556379.13 139991185.53

R&D expenses 174732034.55 167969738.37

Financial expense -96913621.82 -69761406.60

Inc: Interest expenses -464790.04 646283.95

Interest income 96441907.69 67688700.69

Add: other income 81216465.62 61866650.16

Investment income (“-” for

18230432.0521795614.09

losses)

Inc: Income from investment

-3261567.95-1019723.65

in joint ventures and affiliated enterprises

Gains on derecognition

of financial assets measured at amortized

cost (“-” for losses)

Net exposure hedging gains (“-”

for losses)

Gains from changes in fair value

("-" for losses)

Losses from credit impairment

4911356.5822393985.99

(“-” for losses)Losses from asset impairment (“--6645269.34-3921456.14

” for losses)

Gains on disposal of assets (“-”

-710053.68-607881.96

for losses)

II. Operating profits (“-” for losses) 924455324.40 982189999.82

Add: non-operating income 813935.67 2738086.37

Less: non-operating expenditure 2850861.57 1067871.65

III. Total profits (“-” for total losses) 922418398.50 983860214.54

Minus: income tax expense s 139194884.25 148240769.05

IV. Net profits (“-” for net losses) 783223514.25 835619445.49

48Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(I) Net profits from continuing

783223514.25835619445.49

operations (“-” for net losses)

(II) Net profits from discontinued

operations (“-” for net losses)

V. After-tax net amount of other

comprehensive income

(I) Other comprehensive income

that cannot be reclassified into gains and

losses

1. Changes in re-measured and

defined benefit plans

2. Other comprehensive income

which cannot be transferred to gains or

losses under the equity method

3. Changes in fair value of the

investment in other equity instruments

4. Changes in fair value of the

credit risk of the Company

5. Others

(II) Other comprehensive income

which will be reclassified into gains and

losses

1. Other comprehensive income

which can be transferred into gains and

losses under the equity method

2. Changes in fair value of other

debt investments

3. Amount of financial assets

reclassified into other comprehensive

income

4. Provision for credit impairment

of other debt investments

5. Cash flow hedge reserve

6. Converted difference in foreign

currency statements

7. Others

VI. Total comprehensive income 783223514.25 835619445.49

VII. EPS:

(I) Basic EPS

(II) Diluted EPS

5. Consolidated Cash Flow Statement

In RMB

Item Semi-annual 2024 The first half of 2023

I. Cash flow from operating activities:

Cash received for the sale of goods

5222048354.185549357254.19

and rendering of services

Net increase in clients’ deposits and

deposits from banks and other financial

institutions

Net increase in borrowings from the

central bank

Net increase in borrowings from other

financial institutions

49Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Cash received from receiving

insurance premium of the original

insurance contract

Net cash from receiving reinsurance

premium

Net increase in deposits and

investment of insured persons

Cash received from interests fees and

commissions

Net increase in borrowed funds

Net increase in repurchase business

funds

Net cash received from vicariously

traded securities

Refunds of taxes 18261517.10 9479183.31

Cash received relating to other

115508317.54162988244.01

operating activities

Subtotal of cash inflow from operating

5355818188.825721824681.51

activities

Cash paid for purchased products and

2672099590.552509505444.23

received services

Net increase in loans and advances to

customers

Net increase in deposits with the

central bank and other financial

institutions

Cash paid for claims of original

insurance contract

Net increase in lending funds

Cash paid for interests fees and

commissions

Cash paid for policy dividends

Cash paid to and on behalf of

581145832.14531293363.95

employees

Cash paid for taxes 387905697.88 432835037.24

Cash paid related to other operating

1300661476.861288457982.86

activities

Subtotal of cash outflow from operating

4941812597.434762091828.28

activities

Net cash flow from operating activities 414005591.39 959732853.23

II. Cash flow from investing activities:

Cash received from return of

485189970.50856237901.17

investments

Cash received from return on

21509695.8223031053.03

investments

Net cash received from disposal of

fixed assets intangible assets and other 439702.31 156960.00

long-term assets

Net cash received from disposal of

subsidiaries and other business entities

Cash received related to other

3147278944.57

investment activities

Subtotal of cash inflow from investment

3654418313.20879425914.20

activities

50Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Cash paid for purchase and

construction of fixed assets intangible 144857241.94 156402668.03

assets and other long-term assets

Cash paid to investments 406190525.00 660000000.00

Net increase in pledged loans

Net cash from subsidiaries and other

operating entities

Cash paid related to other investment

3450000000.00

activities

Subtotal of cash outflow from investment

4001047766.94816402668.03

activities

Net cash flow from investment activities -346629453.74 63023246.17

III. Cash flow from financing activities:

Cash from acquiring investments

Including: Cash received by

subsidiaries from investments of

minority shareholders

Cash from acquiring debts 63000000.00 38500000.00

Other cashes received in relation to

500000.006482178.88

financing activities

Subtotal of cash inflow from financing

63500000.0044982178.88

activities

Cash repayments of debts 43500000.00 1350000000

Cash paid for distribution of

945472097.73472047458.00

dividends profits or interest expenses

Including: Dividends and profits paid

by the subsidiaries to minority

shareholders

Other cashes paid in relation to

3198439.083212200.53

financing activities

Subtotal of cash outflow from financing

992170536.81488759658.53

activities

Net cash flow from financing activities -928670536.81 -443777479.65

IV. Effect of change in exchange rate on

17341.712476947.59

cash and cash equivalents

V. Net increase in cash and cash

-861277057.45581455567.34

equivalents

Plus: Beginning balance of cash and

1878166358.095196414341.74

cash equivalents

VI. Ending balance of cash and cash

1016889300.645777869909.08

equivalents

6. Cash Flow Statement of the Parent Company

In RMB

Item Semi-annual 2024 The first half of 2023

I. Cash flow from operating activities:

Cash received for the sale of goods

4731776324.895061947996.39

and rendering of services

Refunds of taxes 18242540.73 9453997.74

Cash received relating to other

81546549.08127408820.55

operating activities

Subtotal of cash inflow from operating

4831565414.705198810814.68

activities

Cash paid for purchased products and 2526136695.74 2388027327.89

51Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

received services

Cash paid to and on behalf of

450240546.01388171541.48

employees

Cash paid for taxes 354648101.70 376468624.51

Cash paid related to other operating

1078695569.231093033326.17

activities

Subtotal of cash outflow from operating

4409720912.684245700820.05

activities

Net cash flow from operating activities 421844502.02 953109994.63

II. Cash flow from investing activities:

Cash received from return of

480000000.00850000000.00

investments

Cash received from return on

21492000.0033049300.00

investments

Net cash received from disposal of

fixed assets intangible assets and other 27800.00 117000.00

long-term assets

Net cash received from disposal of

subsidiaries and other business entities

Cash received related to other

3147278944.57

investment activities

Subtotal of cash inflow from investment

3648798744.57883166300.00

activities

Cash paid for purchase and

construction of fixed assets intangible 141568948.02 133509231.58

assets and other long-term assets

Cash paid to investments 417414675.00 660000000.00

Net cash from subsidiaries and other

operating entities

Cash paid related to other investment

3450000000.00

activities

Subtotal of cash outflow from investment

4008983623.02793509231.58

activities

Net cash flow from investment activities -360184878.45 89657068.42

III. Cash flow from financing activities:

Cash from acquiring investments

Cash from acquiring debts

Other cashes received in relation to

500000.006482178.88

financing activities

Subtotal of cash inflow from financing

500000.006482178.88

activities

Cash repayments of debts

Cash paid for distribution of

944094916.00472047458.00

dividends profits or interest expenses

Other cashes paid in relation to

financing activities

Subtotal of cash outflow from financing

944094916.00472047458.00

activities

Net cash flow from financing activities -943594916.00 -465565279.12

IV. Effect of change in exchange rate on

16826.802476788.62

cash and cash equivalents

V. Net increase in cash and cash

-881918465.63579678572.55

equivalents

Plus: Beginning balance of cash and

1727017513.094978704981.15

cash equivalents

VI. Ending balance of cash and cash

845099047.465558383553.70

equivalents

52Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

53Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

7. Consolidated Statement of Changes in Owners’ Equity

Current amount

In RMB

Semi-annual 2024

Owners’ equity attributable to the parent company

Other equity S

instruments p

e G

c en

Pr i er O

Pe

Item ef O a al t

Other Minority Total owners’ rpe

er t Less: treasury l ris h interests

Capital stock tua Capital reserve comprehensive Surplus reserve Undistributed profits Sub-total

equity

re h stock r k e

l income

d e e re r

bo

sh r s se s

nd

ar s e rv

s

es r e

v

e

I. Ending balance of 1063059604

949024050.00411778214.22199995742.59-100157634.16474516412.508987773431.7110522938731.68107657316.25

last year 7.93

Plus: Changes

in accounting

policies

Correction

of errors of the

previous period

Others

II. Beginning 1063059604

949024050.00411778214.22199995742.59-100157634.16474516412.508987773431.7110522938731.68107657316.25

balance of this year 7.93

III. Change in

285583163.6

current period ("-" 8698813.25 12522.53 287311496.74 296022832.52 -10439668.87

5

for decrease)

54Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(I) Total

748931808.4

comprehensive 12522.53 759358954.74 759371477.27 -10439668.87

0

income

(II) Capital invested

and decreased by the 8698813.25 8698813.25 8698813.25

owners

1. Com mon shares

invest ed by the

owner s

2. Capital invested

by holders of other

equity instruments

3. Amount of share-

based payments

8698813.258698813.258698813.25

recognized in owner

s’ equity

4. Others

-

(III) Profit

-472047458.00-472047458.00472047458.0

distribution

0

1. Withdrawal of

surplus reserve

2. Appropriation of

general risk reserve

3. Distribution to -

owner s (or -472047458.00 -472047458.00 472047458.0

shareholders ) 0

4. Others

(IV) Internal carry-

forward of owners’

equity

1. Capita l reserve

converted into

capital (or capital

stock)

55Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

2. Surplus reserve

converted into

capital (or capital

stock)

3. Surplus reserves

making up for losses

4. Changes of

defined benefit plans

carried forward to

retained earnings

5. Other

comprehensive

income carried

forward to retained

earnings

6. Others

(V) Special reserve

1. Withdrawn in

current period

2. Used in current

period

(VI) Others

IV. Ending balance 1091617921

949024050.00420477027.47199995742.59-100145111.63474516412.509275084928.4510818961564.2097217647.38

of the current period 1.58

56Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Amount of last year

In RMB

The first half of 2023

Owners’ equity attributable to the parent company

Other equity S G

instruments p en

Pr e er O

Pe

Item ef O ci al t

Other Minority Total owners’ rpe

er t Less: treasury al ris h

Capital stock tua Capital reserve comprehensive Surplus reserve Undistributed profits Sub-total

interests equity

re h stock re k e

l income

d e s re r

bo

sh r er se s

nd

ar s v rv

s

es e e

I. Ending balance of 9858252969.

949024050.00409997665.58199995742.59-100157634.16474516412.508199079015.589732463766.91125789202.10

last year 01

Plus: Changes

in accounting

policies

Correction

of errors of the

previous period

Others

II. Beginning balance 9858252969.

949024050.00409997665.58199995742.59-100157634.16474516412.508199079015.589732463766.91125789202.10

of this year 01

III. Change in

354668442.2

current period ("-" 3473641.59 357670892.69 361144534.28 -6476092.04

4

for decrease)

(I) Total

823242258.6

comprehensive 829718350.69 829718350.69 -6476092.04

5

income

(II) Capital invested

and decreased by the 3473641.59 3473641.59 3473641.59

owners

57Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

1. Com mon shares

invest ed by the

owners

2. Capital invested

by holders of other

equity instruments

3. Amount of share-

based payments

3473641.593473641.593473641.59

recognized in

owners’ equity

4. Others

-

(III) Profit

-472047458.00-472047458.00472047458.0

distribution

0

1. Withdrawal of

surplus reserve

2. Appropriation of

general risk reserve

3. Distribution to -

owners (or -472047458.00 -472047458.00 472047458.0

shareholders ) 0

4. Others

(IV) Internal carry-

forward of owners’

equity

1. Capital reserve

converted into

capital (or capital

stock)

2. Surplus reserve

converted into

capital (or capital

stock)

3. Surplus reserves

making up for losses

58Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

4. Changes of

defined benefit plans

carried forward to

retained earnings

5. Other

comprehensive

income carried

forward to retained

earnings

6. Others

(V) Special reserve

1. Withdrawn in

current period

2. Used in current

period

(VI) Others

IV. Ending balance 1021292141

949024050.00413471307.17199995742.59-100157634.16474516412.508556749908.2710093608301.19119313110.06

of current period 1.25

59Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

8. Statement of Changes in Owners’ Equity of the Parent Company

Current amount

In RMB

Semi-annual 2024

Other equity

instruments

Spec O

Other

Item Pre Per Less: treasury ial th

Capital stock ferr pet Ot Capital reserve comprehensive Surplus reserve Undistributed profits Total owners’ equity

stock reser er

ed ual her income

ve s

sha bon s

res ds

I. Ending balance of last year 949024050.00 411389124.26 199995742.59 -100157634.16 474516412.50 9038684224.97 10573460434.98

Plus: Changes in accounting policies

Correction of errors of the previous period

Others

II. Beginning balance of this year 949024050.00 411389124.26 199995742.59 -100157634.16 474516412.50 9038684224.97 10573460434.98

III. Change in current period ("-" for decrease) 8698813.25 311176056.25 319874869.50

(I) Total comprehensive income 783223514.25 783223514.25

(II) Capita l invest ed and decreased by the owner s 8698813.25 8698813.25

1. Com mon shares invest ed by the owner s

2. Capita l invest ed by holder s of other equity

instruments

3. Amount of share-based payments recognized in owner

8698813.258698813.25

s’ equity

4. Others

(III) Profit distribution -472047458.00 -472047458.00

1. Withdrawal of surplus reserve

2. Distribution to owners (or shareholders ) -472047458.00 -472047458.00

3． Others

(IV) Internal carry-forward of owners’ equity

60Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

1. Capital reserve converted into capital (or capital

stock)

2. Surplus reserve converted into capital (or capital

stock)

3. Surplus reserves making up for losses

4. Changes of defined benefit plans carried forward to

retained earnings

5. Other comprehensive income carried forward to

retained earnings

6. Others

(V) Special reserve

1. Withdrawn in current period

2. Used in current period

(VI) Others

IV. Ending balance of current period 949024050.00 420087937.51 199995742.59 -100157634.16 474516412.50 9349860281.22 10893335304.48

Amount of last year

In RMB

The first half of 2023

Other equity

instruments

Spec O

Pre Per Other Item Less: treasury ial th

Capital stock ferr pet Ot Capital reserve comprehensive Surplus reserve Undistributed profits Total owners’ equity

stock reser er

ed ual he income

ve s

sha bon rs

res ds

I. Ending balance of last year 949024050.00 409608575.62 199995742.59 -100157634.16 474516412.50 8156489150.49 9689484811.86

Plus: Changes in accounting policies

Correction of errors of the previous period

Others

II. Beginning balance of this year 949024050.00 409608575.62 199995742.59 -100157634.16 474516412.50 8156489150.49 9689484811.86

III. Change in current period ("-" for decrease) 3473641.59 363571987.49 367045629.08

61Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(I) Total comprehensive income 835619445.49 835619445.49

(II) Capital invested and decreased by the owners 3473641.59 3473641.59

1. Common shares invested by the owners

2. Capital invested by holders of other equity

instruments

3. Amount of share-based payments recognized in

3473641.593473641.59

owners’ equity

4. Others

(III) Profit distribution -472047458.00 -472047458.00

1. Withdrawal of surplus reserve

2. Distribution to owners (or shareholders ) -472047458.00 -472047458.00

3. Others

(IV) Internal carry-forward of owners’ equity

1. Capital reserve converted into capital (or capital

stock)

2. Surplus reserve converted into capital (or capital

stock)

3. Surplus reserves making up for losses

4. Changes of defined benefit plans carried forward to

retained earnings

5. Other comprehensive income carried forward to

retained earnings

6. Others

(V) Special reserve

1. Withdrawn in current period

2. Used in current period

(VI) Others

IV. Ending balance of current period 949024050.00 413082217.21 199995742.59 -100157634.16 474516412.50 8520061137.98 10056530440.94

62Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

III. Basic Information of the Company

Hangzhou Robam Appliances Co. Ltd. (hereinafter referred to as ROBAM or the Company) is an

incorporated company established by overall changing Hangzhou Robam Home Appliances Co. Ltd. on

November 7 2000. Approved by China Securities Regulatory Commission (ZJXK [2010] No.1512) in

2010 the Company for the first time offered 40 million ordinary shares in RMB to the public on

November 23 2010 (stock code: 002508) with the par value per share of RMB 1 and the issue price per

share of RMB 24.00.As of June 30 2024 the total capital stocks of the Company reached 949024050 shares with a

registered capital of RMB 949024050. The Company’s unified social credit code is

91330000725252053F; the legal representative is Ren Jianhua; the registration address is No. 592 Linping

Avenue Linping Economic Development Area Linping District Hangzhou; and the Headquarters office

address is No. 592 Linping Avenue Linping Economic Development Area Linping District Hangzhou.The RMB-denominated A-shares issued by the Company have been listed on the Shenzhen Stock

Exchange.The main business scope is: general items: manufacturing of household appliances; research and

development of kitchenware sanitary ware and daily necessities; wholesale of kitchenware sanitary ware

and daily necessities; sales of daily glass products; sales of household appliances; installation services for

household appliances; research and development of household appliances; sales of household products;

sales of daily necessities; manufacturing of wooden daily products; retail of daily household appliances;

repair of daily electrical appliances; sales of electric heating food processing equipment; wholesale of daily

necessities; technical services technical development technical consulting technical exchange

technology transfer technology promotion; sales of non-electric household appliances; manufacturing of

non-electric household appliances; production of gas appliances; sales of refrigeration and air conditioning

equipment; manufacturing of refrigeration and air conditioning equipment; development of basic artificial

intelligence software; manufacturing of smart household consumption devices; sales of artificial

intelligence hardware; manufacturing of commercial catering and service-specific equipment; sales of

commercial catering and service-specific equipment; import and export of goods; manufacturing of

environmental protection-specific equipment; sales of environmental protection-specific equipment; sales

of metal products; sales of mechanical and electrical equipment; sales of electrical equipment; sales of

mechanical equipment; industrial engineering design services; professional design services; graphic design;

engineering management services; general equipment repair; furniture manufacturing; production of

furniture parts and accessories; sales of furniture parts and accessories; furniture sales; furniture

installation and repair services; manufacturing and processing of doors and windows; manufacture of

household goods; retail of kitchenware sanitary ware and daily necessities; wood processing; conference

and exhibition services; leisure and sightseeing activities; environmental protection monitoring;

manufacturing of special instruments and equipment for environmental monitoring; sales of special

instruments and equipment for environmental monitoring; software development; software sales; computer

63Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

system services; information system integration services (except for items that require approval according

to law the Company is authorized to carry out business activities independently with the business license).Permitted items: manufacturing of disinfection devices; manufacturing of electric heating food processing

equipment; installation and maintenance of gas appliances (items that require approval according to law

can only be operated after approval by relevant departments and the specific business items shall be

subject to the approval results).The Company is a manufacturing company with major businesses covering research & development

production sales and comprehensive services of kitchen appliances. Its main products include range hoods

gas stoves disinfection cabinets steam ovens baking ovens dishwashers water purifiers microwave

ovens integrated stoves and purification tanks.The consolidated financial statements of the Company cover 13 subsidiaries including Beijing

Robam Electric Appliance Sales Co. Ltd. Shanghai Robam Appliances Sales Co. Ltd. Hangzhou

MingQi Electric Co. Ltd. De Dietrich Household Appliances Trading (Shanghai) Co. Ltd. Shengzhou

Kinde Intelligent Kitchen Appliances Co. Ltd. Hangzhou Robam Fuchuang Investment Management Co.Ltd. Zhejiang Cookingfuture Technology Co. Ltd. Hangzhou Jinhe Electric Appliances Co. Ltd. Robam

Appliances Holding (HK) Co. Ltd. and Robam International (HK) Trading Co. Ltd. Chengdu Robam

Innovation Technology Co. Ltd. Robam Appliances U.S. Holding Co. Ltd. and Robam Appliances Los

Angeles Trade Co. Ltd. Compared to the previous year a total of 3 subsidiaries including Chengdu

Robam Innovation Technology Co. Ltd. Robam Appliances U.S. Holding Co. Ltd. and Robam

Appliances Los Angeles Trade Co. Ltd. are newly established within the scope of consolidation of the

Company during the current period.IV. Basis for Preparation of Financial Statements

1. Preparation basis

The Company's financial statements are prepared based on actual transactions and events in

accordance with the Accounting Standards for Business Enterprises and its application guidelines

interpretations and other relevant regulations issued by the Ministry of Finance (hereinafter collectively

referred to as "Accounting Standards for Business Enterprises") the disclosure requirements of the China

Securities Regulatory Commission (hereinafter "CSRC") under the Preparation Rules for Information

Disclosure by Companies Offering Securities to the Public No. 15—General Provisions on Financial

Reports (2023 Revision) and the accounting policies and estimates described in Note 4 "Significant

Accounting Policies and Accounting Estimates".

64Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

2. Going concern

The Company has assessed its ability to continue as a going concern for the 12 months following June

30 2024 and has not identified any significant doubts about its ability to continue operating. These

financial statements are prepared on a going concern basis.V. Significant Accounting Policies and Estimates

Specific accounting policies and estimates:

The specific accounting policies and estimates prepared by the Company according to its actual

production and operation include the operating cycle the recognition and measurement of receivables and

bad debts measurement of inventory delivered fixed assets classification as well as depreciation methods

invisible asset amortization conditions for the capitalization of R&D expenses and revenue recognition

and measurement.

1. Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company comply with the requirements of the Accounting

Standards for Business Enterprises and truthfully accurately and completely reflect the financial status as

of June 30 2024 as well as its business results cash flow and other relevant information for the first half

of 2024.

2. Accounting period

The Company’s accounting period starts on January 1 and ends on December 31 on the Gregorian

calendar.

3. Operating cycle

The normal operating cycle of the Company shall be one year (12 months).

4. Bookkeeping base currency

The Company adopts RMB as the bookkeeping base currency.

5. Methods for determining significance standards and selection criteria

□Applicable □Not applicable

Item Significance standards

Significant accounts receivable with individual bad debt

Individual amount exceeding RMB 10 million

provisions

Significant amount of bad debt provisions to be recovered or

Individual amount exceeding RMB 5 million

reversed for receivables during the reporting period

65Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Significant receivables write-offs/debt investment write-

Individual amount exceeding RMB 5 million

offs/other debt investment write-offs in the reporting period

Significant accounts payable with an aging over one year Individual amount exceeding RMB 5 million

Significant contract liabilities with an aging over one year Individual amount exceeding RMB 10 million

Significant other payables with an aging over one year Individual amount exceeding RMB 5 million

Increase decrease or ending balance of a single project

Significant projects under construction

exceeding RMB 20 million during the reporting period

Significant investment activities Individual investment amount exceeding RMB 50 million

Investments in a single company exceeding RMB 50 million;

Significant non-wholly owned subsidiaries/joint ventures and or income net profit net assets or total assets of a single entity

important overseas entities included in the consolidation scope exceeding 5% of the relevant items in the consolidated

financial statements

6. Accounting approaches to business merger under or not under common control

The assets and liabilities acquired by the Company as the combining party in a business merger under

common control shall be measured at the book value of the combined party in the final controller’s

consolidated statements on the combination date. The capital reserve shall be adjusted against the

difference between the book value of the net assets acquired by the combining party and the book value of

the combination consideration paid by it. If the capital reserve is insufficient to offset the difference the

retained earnings shall be adjusted.The identifiable assets liabilities and contingent liabilities acquired from the acquiree in a business

merger not under common control shall be measured at fair value on the acquisition date. The combination

cost is the sum of the fair values of cash or non-cash assets paid liabilities issued or undertaken equity

securities issued among others by the Company for the purpose of taking control over the acquiree on the

acquisition date and all directly related expenses incurred during the business merger (in case of business

merger accomplished through multiple transactions step by step the combination cost is the sum of the

cost of every single transaction). If the combination cost is greater than the fair value share of the

acquiree’s identifiable net assets acquired from the acquiree in the combination the case is recognized as

goodwill. Where the combination cost is less than the fair value share of the identifiable net assets acquired

from the acquiree the fair values of the identifiable assets debts and contingent liabilities acquired in the

combination and those of non-cash assets subject to combination consideration or issued equity securities

shall be rechecked first and then in case the combination cost is less than the fair value shares of the

identifiable net assets acquired from the acquiree the difference shall be included in the non-operating

income in the period of the combination.

7. Criteria for determining control and methods of preparing consolidated financial statements

All subsidiaries under the control of the Company are included into the consolidated financial

statements.The scope of the consolidated financial statements of the Company is determined on the basis of

control including the Company and all subsidiaries controlled by the Company. The criteria for

66Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

determining control by the group is that the Company has the power over the investees enjoys variable

returns by participating in the investees' relevant activities and has the ability to influence the amount of

returns through its power over the investees.The financial statements of subsidiaries are adjusted in accordance with the accounting policies and

accounting period of the Company when preparing the consolidated financial statements where the

accounting policies and accounting periods are inconsistent between the Company and its subsidiaries.All major internal transactions inter-company balances and unrealized profits within the scope of

consolidation shall be offset when preparing consolidated financial statements. The portion of owner’s

equity of subsidiaries not held by the parent company and net current profit & loss other comprehensive

incomes and the portion of total comprehensive incomes belonging to minority equity are presented under“minority equity minority interest income other comprehensive incomes belonging to minorityshareholders and total comprehensive incomes belonging to minority shareholders respectively”.For a subsidiary acquired from business mergers under the same control its operating results and cash

flows are included into the consolidated financial statements since the beginning of the consolidation year.When the comparable consolidated financial statements are being prepared relevant items in the financial

statements of the last year are adjusted with the stated party formed after merging deemed to exist from the

time of the ultimate controlling party starting to control.For a subsidiary acquired through business mergers not under the same control its operating results

and cash flows shall be included into the consolidated financial statement since the date when the

Company obtains control. When preparing the consolidated financial statements the subsidiary's financial

statements shall be adjusted on basis of the fair value of all identifiable assets liabilities and contingent

liabilities ascertained on the purchasing date.For equity interests in investees not under common control acquired by multiple transactions which

finally result in a business merger the previously held equity interests must be re-measured at fair value on

the acquisition date and the difference between the fair value and the carrying amount should be

recognized as investment gains for the reporting period when preparing the consolidated financial

statements. If the previously held equity includes other comprehensive income or changes in owners'

equity (other than net profit loss or profit distributions) these should be reclassified as investment gains

or losses on the acquisition date except for other comprehensive income related to changes in net

liabilities or assets from re-measurement of the investee's defined benefit plans.Without losing any control right the Company has partially disposed the long-term equity investment

in the subsidiary. In the consolidated financial statement according to the difference between the disposal

prices of part of the equity investment in the subsidiary and net assets of the subsidiary attributed to the

Company as a result of disposal of long-term equity investment continuously calculated from the purchase

date or consolidation date in the subsidiary capital premium or stock premium is adjusted where the

capital surplus is not sufficient to be offset they are adjusted to the retained earnings.

67Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Where the Company loses the controlling right of the invested party for such reason as disposing

partial equity investment the remaining equity is re-measured as per the fair value of such equity on the

day of losing controlling right when preparing the consolidated financial statements. The balance from the

sum of the consideration obtained upon the disposal of equity and the fair value of the remaining equity

less the appropriable share of the net asset of the former subsidiaries calculated as per the former

shareholding proportion from the purchase day or merging day is included in the investment income for

the period when the right of control is lost and the goodwill is deducted. Other comprehensive incomes

related to former equity investment in subsidiaries shall be recognized as current investment profits &

losses upon losing controls.

8. Classification of joint arrangement and accounting methods for joint operation

The joint arrangement of the Company includes the joint venture. A joint venture is a joint

arrangement in which the venturers have rights only to the net assets of the arrangement.The Company serving as one part of the joint venture shall in accordance with the provisions of the

Accounting Standards for Business Enterprises No. 2 – Long-term Equity Investments conduct accounting

treatment of the investment of the joint venture.

9. Recognition standard of cash and cash equivalents

Cash presented in the Company’s cash flow statement refers to cash on hand and deposits that are

available for payment at any time. Cash equivalents presented in the cash flow statement refer to short-

term investments (no more than three months) with high liquidity and that are readily convertible to known

amounts of cash and subject to an insignificant risk of changes in value.

10. Foreign currency business and conversion of foreign currency statement

Foreign currency transactions

The Company translates the foreign-currency amount of the foreign-currency transactions into RMB

amount based on spot exchange rate applicable on the transaction date. On the balance sheet date the

monetary items in foreign currencies shall be converted at the spot rate on the said balance sheet date. The

conversion differences arising therefrom except the exchange balance arising from the foreign currency

borrowings special for acquisition or production of qualifying assets which shall be processed according to

the capitalization principle shall be directly included in the current profit or loss. The foreign currency

non-monetary items measured at fair value shall be converted according to the spot rate of the date when

the fair value is confirmed. If the difference between the converted amount of bookkeeping base currency

and the original amount of bookkeeping base currency belongs to the foreign currency non-monetary item

available for sale of financial assets such difference shall be included in the capital reserve. If such

difference belongs to the foreign currency non-monetary item which is measured at fair value and whose

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change is included into the current profits and losses it shall be included into current profits and losses.The foreign currency non-monetary items measured by historical cost shall be still translated according to

the spot rate on the transaction date while RMB amount remains unchanged.Translation of foreign currency financial statements

Assets and liabilities items in the balance sheets of the foreign operations are translated into RMB

using the spot exchange rate at the balance sheet date while the shareholders’ equity items except for the

"undistributed profit items" are translated into RMB using the spot exchange rate at the date of transaction.The income and expense items in the income statements of overseas operations are translated at the

exchange rate approximate to the spot rate at the date of transaction. The difference arisen from the above

translation's are presented separately under other comprehensive income. For monetary items denominated

in foreign currencies that materially constitute overseas net investment in overseas operations exchange

differences arising from changes in exchange rates when preparing the consolidated financial statements

are also separately presented under the Shareholders’ equity as foreign currency translation differences. In

case of disposal of an overseas operation foreign currency translation differences relating to the overseas

operation are proportionately transferred to profits or losses of the period when the disposal was transacted.During the disposal of overseas operation other comprehensive incomes related to the overseas operation

are transferred in proportion into the disposal of current profits and losses.The foreign currency cash flow and the cash flow of overseas subsidiaries shall be converted using

the exchange rate approximate to the spot rate of the transaction date of the cash flow. The effect of

exchange rate changes on cash is presented separately in the cash flow statement.

11. Financial instruments

The Company shall recognize a financial asset or a financial liability when it becomes a party to a

financial instrument contract.Financial assets

Classification recognition basis and measurement method of financial assets

Based on the business model for management of financial assets and the contractual cash flow

characteristics of financial assets the Company classifies the financial assets into three types: 1) the

financial asset measured at amortized cost; 2) the financial asset measured at the fair value with its changes

included into other comprehensive incomes; and 3) and the financial asset measured at the fair value with

its changes included into current profits or losses.The financial assets meeting all of the following conditions can be classified as those measured at

amortized cost by the Company: 1) the Company adopts the business management mode of financial assets

for the purpose of collecting contractual cash flow; 2) in accordance with the contract terms of the

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financial assets the cash flow generated at the specific date is only the payment of the principal and the

interest on the basis of the outstanding principal amount. Such financial assets are initially measured at

their fair values with related transaction costs included into the amount of initial recognition and

subsequent measurement conducted with the amortized cost. Apart from those designated as hedged items

the difference between the initial amount amortized with the effective interest method and the amount due

profits or losses incurred upon amortization impairment exchange profits and losses and derecognition

shall be included into current profits and losses.Where the following conditions are reached at the same time the financial assets can be classified by

the Company as those measured at fair value with the changes included into other comprehensive income:

1) the Company adopts the business management mode of the financial assets for the purpose of collecting

contractual cash flow and selling the financial assets; 2) in accordance with the contract terms of the

financial assets the cash flow generated at the specific date is only the payment of the principal and the

interest on the basis of the outstanding principal amount. Such financial assets are initially measured at

their fair values with related transaction costs included into the amount of initial recognition. Apart from

those designated as the hedged items profits or losses incurred by such financial assets shall be included

into the comprehensive incomes except for credit impairment losses or gains exchange profits and losses

and the interests calculated as per the actual interest rate for such financial assets. Upon derecognition of

the financial assets the accumulated gains or losses previously recorded in other comprehensive incomes

shall be transferred out of such other comprehensive incomes and included into the current profits and

losses.The interest income is recognized by the Company using the effective interest method. The interest

income is determined by multiplying the book balance of financial assets by the effective interest rate

except for conditions below: 1) for the financial assets purchased by or originating from the Company with

credit impairment since initial confirmation the interest income shall be determined as per the amortized

cost of the financial asset and the effect interest rate subject to credit adjustment; 2) the financial assets

purchased by or originating from the Company with no credit impairment but having credit impairment

during the follow-up period shall be subject to interest income calculation based on the amortized cost and

actual interest rate of the financial assets during the follow-up period by the Company.The non-trading equity instrument is designated by the Company as the financial asset which is

measured at its fair value with changes included into current profits and losses. The designation shall not

be canceled once it is made. The non-trading equity instrument investment designed by the Company to

be measured at the fair value with their changes included into other comprehensive incomes is initially

measured at fair value with related transaction cost included into the amount of initial confirmation.Except for the obtained dividends (excluding those of the recovered investment cost) which are included

into current profits and losses other related profits and losses (including exchange profits and losses) are

completely included into other comprehensive incomes and will not then be converted into current profits

and losses of the reporting period. Upon derecognition the accumulated gains or losses previously

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included into other comprehensive incomes are transferred from other comprehensive incomes and

included into retained earnings.Financial assets other than those measured at amortized cost and those measured at fair value with

changes recognized in other comprehensive income. Such financial assets are initially measured at their

fair values with related transaction costs directly included into the current profits and losses. Such

financial assets are initially measured at their fair values with related transaction costs directly included

into the current profits and losses. Profits or losses of such financial assets shall be included in the current

profits and losses.The financial asset formed by the contingent consideration confirmed during business merge not

under the same control are classified as those measured by its fair value by the Company with changes

included into current profits and losses.Recognition basis and measurement method for transfer of financial assets

Financial assets meeting one of the following conditions shall be derecognized by the Company: 1)

the contractual right to collect the cash flow of the financial asset is terminated; 2) the financial assets have

been transferred by the Company and almost all risks and rewards associated with the ownership of the

financial asset are transferred; 3) the financial assets have been transferred and the Company had neither

transferred nor retained almost all risks and rewards associated with the ownership of the financial assets

but given up the control over the financial assets.For financial asset that is entirely transferred and meets the conditions of de-recognition the

difference between the book value of financial asset transferred and the sum of consideration received

from such transfer and the accumulated changes in fair value directly included into other comprehensive

income and corresponding to the derecognized amount (in accordance with the contract terms of the

financial assets involved in such transfer the cash flow generated at the specific date is only the payment

of the principal and the interest on the basis of the outstanding principal amount) is included into the

current profits and losses.For financial asset that is partially transferred and meets the conditions of derecognition the overall

book value of transferred financial asset is split according to their relative fair value between the part

derecognized and the part not derecognized and the difference between the following two amounts is

recognized in current profits and losses: the sum of consideration received due to transfer and the amount

amortized to the derecognized part and corresponding to the accumulative change of fair value which is

firstly included into the other comprehensive income (in accordance with the contract terms of the

financial assets the cash flow generated at the specific date is only the payment of the principal and the

interest on the basis of the outstanding principal amount) and the overall book value of aforesaid financial

assets.Financial liabilities

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Classification recognition and measurement of financial liability

The Company’s financial liabilities are grouped upon initial recognition into financial liabilities

measured at fair value with the changes included in the current profit or loss and other financial liabilities.Financial liabilities measured at fair value with changes included in the current profits and losses

include trading financial liabilities and financial liabilities designated to be measured as at fair value with

changes included in the current profits and losses upon initial recognition. The net gain or loss arising from

changes in fair value dividends and interest paid related to such financial liabilities are recorded in profits

and losses for the period in which they are incurred.Other financial liabilities are measured subsequently at the amortized cost by adopting the effective

interest method. Apart from the following items the Company will classify the financial liabilities as those

measured at amortized cost: 1) the financial liabilities measured at fair value with changes included into

current profits and losses include financial liabilities held for trading (including derivatives that are

financial liabilities) and financial liabilities designated to be measured at fair value with changes included

into current profits and losses; 2) the financial liabilities formed by transferring of the financial assets

failed to meet the conditions for derecognition or formed by continuous involvement of transferred

financial assets; 3) the financial guarantee contracts that do not fall under above 1) and 2) as well as loan

commitments at a rate below the market rate of interest that do not fall under above 1).Where a contingent consideration is recognized by the Company as a financial liability in business

merger not under common control such financial liability shall be measured at fair value with changes

included into the current profits and losses during accounting treatment.Derecognition of financial liabilities

When the current obligation of the financial liabilities has been relieved in whole or part the part of

the financial liabilities or obligations that have been relieved upon confirmation is terminated. If the

Company reaches an agreement with the creditor to replace the existing financial liabilities by undertaking

new financial liabilities and the contract terms of the existing and new liabilities are different in substance

the existing financial liabilities shall be derecognized while the new liabilities shall be recognized. Where

all or part of the contract terms of the existing financial liabilities are subject to material modification the

Company shall derecognize all or part of the existing financial liabilities while recognizing the financial

liabilities with modified terms as new financial liabilities. The difference between the book value of the

terminated part upon confirmation and the considerations paid is included in the current profit and loss.Method for determining the fair value of financial assets and financial liabilities

The Company measures the fair value of financial assets and financial liabilities in the main market. If

there is no major market the Company measures the fair value of financial assets and financial liabilities

with most beneficial price for the market and adopts evaluation techniques with much available data and

other information support that is applicable at that time. There are three levels of input data to determine

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fair values wherein the first level is the unadjusted price available for the same asset or liability on the

date of evaluation in an active market; the second level is directly or indirectly observable input data of

relevant assets or liabilities apart from input data of the first level; the third level is unobservable input data

of relevant assets or liabilities. The Company gives priority of using the first-level inputs and takes the

third-level inputs as the last. The lowest layer that has significant impact on the overall fair value

evaluation determines which level this fair value evaluation result shall belong to.Investments in equity instruments of the Company are measured at fair value. However under certain

circumstances if recent information needed to determine the fair value is insufficient or if the estimated

amount of the fair value features an extensive distribution scope and the cost represents the best estimate of

the fair value in that distribution scope the cost may represent the appropriate estimate on the fair value

within that distribution scope.Offsetting financial assets and financial liabilities

Financial assets and financial liabilities of the Company are separately presented in the balance sheet

without offsetting. However the net amount resulting from the offsetting between financial assets and

financial liabilities shall be presented in the balance sheet only if all of the following criteria are met: 1) the

Company has the statutory right to set off recognized amounts which is currently enforceable; 2) the

Company intends either to settle on a net basis or to realize the financial assets and pay off the financial

liabilities simultaneously.Distinction and relevant treatment methods of financial liabilities and equity instruments

The Company distinguishes between financial liabilities and equity instruments according to the

following principles: 1) where the Company cannot unconditionally avoid fulfilling certain contractual

obligation by delivering cash or other financial assets then such contractual obligation is in line with the

definition of the financial liability. Although certain financial instruments do not expressly contain terms

and conditions for the contractual obligation to deliver cash or other financial instruments the contractual

obligation may be indirectly formed according to other terms and conditions; 2) where a financial

instrument must or can be settled using the Company's own equity instrument the Company shall consider

whether the Company's own equity instrument used for settlement is a substitute of cash or other financial

assets or the residual interest in the assets of an entity after deducting all of its liabilities. If it is the first

case the instrument shall be the financial liability of the issuer. If it is the latter case the instrument shall

be the equity instrument of the issuer. Under some circumstances the contract of a financial instrument

may require that the financial instrument must or is able to be settled by the Company’s own equity

instrument. The amount of contractual right or contractual obligation equals to the amount of its own

equity instrument receivable or payable multiplied by its fair value at the time of settlement. Whether the

amount of such contractual right or obligation is fixed or varies wholly or partially based on variables

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other than the market value of the Company’s own equity instrument (such as interest rates the price of a

commodity or the price of a financial instrument) such contract is classified as financial liability.In classifying financial instruments (or components) in the consolidated statements the Company

shall take into account all the terms and conditions agreed between members of the Company and holders

of the financial instruments. If the Company as a whole undertakes the obligation to deliver cash other

financial assets or settle in other ways that cause the financial instrument to become a financial liability

the instrument shall be classified as a financial liability.If a financial instrument or any of its components is a financial liability the relevant interests

dividends gains or losses and gains or losses from redemption or re-financing and so on are included in

the current profits & losses of the Company.If a financial instrument or its component belongs to an equity instrument for its issue (including re-

financing) repurchase sale or cancellation the Company will treat it as a change in equity and will not

recognize the change in fair value of equity instruments.Impairment of financial instruments

The Company based on expected credit losses performed impairment accounting and recognized

credit impairment losses on financial assets measured at amortized cost financial assets classified to be

measured at the fair value with the changes included into other comprehensive incomes as well as financial

guarantee contracts.The expected credit loss is a weighted average of credit losses on financial instruments weighted at

the risk of default. Credit loss refers to the difference between all contractual cash flows discounted as per

the original effective interest rate and receivable from the contract and all cash flows expected to be

received by the Company namely the present value of a shortage of cash. Among them financial assets

purchased or underlying with credit impairment of the Company shall be discounted at the financial assets’

effective interest rate after credit adjustment.For account receivables arising from transactions scoped in ASBE on Revenue not containing

significant financing components the Company takes the simplified measurement method to measure its

loss provisions based on the amount of expected credit losses during the entire duration.For financial assets purchased or underlying with credit impairment the cumulative change in

expected credit loss during the entire duration since the date of balance sheet date after initial recognition

will be recognized as provision for loss. On each date of balance sheet the amount of change in expected

credit loss during the entire duration is included into current profits and losses as impairment losses or

gains. Even if the expected credit loss within the entire duration determined on the date of balance sheet is

less than the amount of expected credit loss reflected by estimated cash flow upon initial recognition any

favorable change in expected credit loss will be recognized as impairment gains.

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In addition to other financial assets adopting the aforesaid simplified measurement method or

financial assets purchased or underlying with credit impairment the Company shall assess whether the

credit risk of relevant financial instruments has increased significantly since the initial recognition on each

balance sheet date and shall respectively accrue their provision for loss and recognize the expected credit

loss and its change:

1. In the event that the credit risk has not increased significantly since the initial recognition and it is in

Stage I the Company shall measure its loss provisions based on the amount of expected credit losses

for the coming 12 months of such financial instrument and calculate the interest on the basis of book

balance and effective interest rate.

2. In the event that the credit risk of the financial instrument has increased significantly since the initial

recognition but with no credit impairment and it is in Stage II the Company shall measure its loss

provisions based on the amount of the expected credit loss of the financial instrument during the entire

duration and calculate the interest on the basis of book balance and effective interest rate.

3. In case that credit impairment of the financial instrument has incurred since the initial recognition and

it is in Stage III the Company shall measure the loss provisions of the financial instrument based on the

amount of expected credit losses during the entire duration and calculate the interest at amortized cost

and effective interest rate.Increases or reversals of the provisions for credit losses of the financial instrument are recorded in the

current profits and losses as impairment losses or gains. Except for financial assets classified to be

measured at fair value through other comprehensive income the book balance of financial assets is

deducted with provision for credit losses. For financial assets classified to be measured at fair value with

the change included in other comprehensive incomes the Company shall recognize the provision for credit

loss in other comprehensive incomes and shall not decrease the book value of such financial assets listed

in the balance sheet.Where the Company has measured the provisions for losses based on the amount of the expected

credit loss over the entire duration of such financial instruments in the prior accounting period but on the

current balance sheet date such financial instruments no longer fall into the scope of significantly

increased credit risk since initial recognition the Company measures the provisions for the losses of such

financial instruments based on the amount equivalent to the expected credit losses over the coming 12

months on the current balance sheet date with resulting carrybacks of provisions for losses recorded in the

current profits and losses as impairment gains.

1 Significant increase in credit risk

The Company determines if there is a significant increase in credit risk of financial instruments since

initial recognition by comparing the risks of default of financial instruments on the balance sheet date and

the date of initial recognition based on reasonable and well-grounded forward-looking information

available. For the financial guarantee contract when the Company applies the regulations on impairment

of financial instruments the date when the Company becomes the party which makes the irrevocable

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undertaking is regarded as the date of initial recognition. The Company will take into account the

following factors when assessing whether the credit risk is significantly increased: whether the operating

results of the debtor has actually changed or is expected to significantly change or not; whether the

regulatory economic or technical environment where the debtor is located has significantly and adversely

changed or not; whether the value of the collateral as the debt pledge or the guarantee provided by the third

party or credit enhancement quality has significantly changed or not as these changes are expected to

reduce the economic motives of the debtor to make repayments within the time limits prescribed in the

Contract or to impact the default probability; whether the expected performance or repayment behavior of

the debtor has significantly changed or not; whether the Company has changed its management method for

financial instrument credit or not etc.On the balance sheet date if the Company determines that the financial instrument only carries low

credit risks then the Company will assume that the credit risks of the financial instrument have not

increased significantly since the initial recognition. If the risk of default on financial instruments is low

the borrower is highly capable of performing its contractual cash flow obligations in the short term and

even if the economic situation and operating environment are adversely changed over a long period of time

but not necessarily reducing the borrower’s performance of its contractual cash obligations then the

financial instrument is considered as having a lower credit risk.

2 Credit-impaired financial assets

In case of one or more events adversely affecting the estimated future cash flows of a financial asset

the financial asset becomes a financial asset to which a credit impairment has happened. Evidence of a

credit impairment on a financial asset includes the following information: serious financial difficulties of

the debtor; a breach of contract by the debtor such as a default or overdue payment of interest or principle;

the creditor for economic or contractual considerations relating to financial difficulties of the debtor

offers the debtor concessions that are impossible in any other circumstances; it is probable that the debtor

will enter bankruptcy or other financial reorganization; the disappearance of an active market for that

financial asset because of financial difficulties of the issuer or the debtor; the purchase or origination of a

financial asset at a deep discount that reflects the incurred credit losses.The credit impairment of financial assets may be caused by the joint effect of the above multiple

events and may not be caused by individually identifiable events.

3) Determination of expected credit losses

In assessing the expected credit loss the Company takes reasonable and well-founded information

about past event current condition and future economic status predictions into consideration based on the

expected credit loss of single and combined financial evaluation instruments.

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The Company divides the financial instruments into different portfolios based on the common credit

risk characteristics. See accounting policies of relevant financial instruments for single evaluation

standards and combined credit risk characteristics.The Company determines the expected credit losses of financial instruments under the following

methods:

For financial assets the credit loss is calculated as the present value of the difference between the

contractual cash flows to be collected by the Company and cash flows expected to be collected.For the financial guarantee contract the credit loss is the expected payment made to the contract

holder by the Company for reimbursing the contract holder against the credit losses incurred by the

contract holder deducted by the present value of the differences between the amounts expected to be

received by the Company from the contract holder debtor or any other party.For financial assets which have been credit-impaired on the balance sheet date but are not purchased

or underlying with credit impairment the credit loss is calculated as the difference between the book

balance of such financial assets and present value of anticipated future cash flows discounted at the

original effective interest rate.

12. Notes receivable

The Company based on the acceptor credit risk of the notes receivable as common risk characteristics

divides the notes receivable into different combinations and determines the accounting estimation policy of

expected credit loss.Combination Basis for determining

Provision method

classification combination

The Company believed that there was no significant

Banker’s acceptances The acceptor is a banking credit risk in the bank acceptance held by the

combined financial institution. Company and there will be no significant loss due to

the default of the bank.The acceptor is a non-bank

The company shall measure the bad-debt provision of

Trade acceptances financial institution or

receivable trade acceptance based on the expected

combined enterprise like a finance

credit loss during the entire duration.company.

13. Accounts receivable

For the receivables arising from transactions regulated by the Accounting Standards for Business

Enterprises No. 14 Revenue Standards (whether or not containing significant financing components) and

the lease receivables regulated by the Accounting Standards for Business Enterprises No. 21 Leasing the

Company takes the simplified measurement method to measure its loss provisions based on the amount of

expected credit losses during the entire duration.

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For accounts receivable the Company assesses whether the credit risk increases significantly on the

basis of a single financial instrument or a combination of financial instruments. The Company singly

evaluates the credit risk of receivables with significantly different credit risks and the following

characteristics: receivables in dispute with the other party or involved in litigation and arbitration; accounts

receivable that there are obvious indications showing that the debtor is likely to be unable to fulfill the

repayment obligation. The Company cannot obtain sufficient evidence of significant increase in credit risk

at the level of single financial instrument at reasonable cost but it is feasible to assess whether the credit

risk increases significantly on the basis of the combination of financial instruments. When the assessment

is performed on the combination of financial instruments the Company can classify the financial

instruments based on the common credit risk characteristics.The Company classifies the accounts receivable into the following combinations based on their credit

risk characteristics:

Combination classification Basis for determining combination Provision method

Credit loss that accrues accounts

Accounts receivable with the same aging have

receivable by aging analysis Expected rates of credit loss

similar credit risk characteristics

method

Related parties within the Funds of subsidiaries within the consolidation No expected credit loss

consolidation scope scope of controlling shareholders under normal circumstances

If there is objective evidence showing that the credit impairment of certain account receivable has

incurred the Company shall singly withdraw the bad debt reserve of accounts receivable and confirm the

expected credit loss.For accounts receivable with credit loss accrued from receivables by aging analysis method based on

the actual credit loss of previous years and considering the forward-looking information of the current

period the accounting estimate policies of the Company for measuring the expected credit loss are as

follows:

Age Expected rates of credit loss

Less than 1 year 5.00%

1-2 years 10.00%

2-3 years 20.00%

3-4 years 50.00%

4-5 years 80.00%

More than 5 years 100.00%

The Company calculates the expected credit loss of receivables on the balance sheet date. If the

expected credit loss is greater than the carrying amount of the current receivables impairment provision

the Company will recognize the difference as impairment loss of receivables debit "credit impairment

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loss" and credit "bad debt provision". Otherwise the Company will recognize the difference as impairment

gains and make opposite accounting records.For the actual credit losses of the Company if the relevant receivables are determined to be

unrecoverable and are approved to be written off the Company shall debit "bad debt provision" and credit

"accounts receivable" according to the approved write-off amount. If the write-off amount is greater than

the accrued loss provisions the "credit impairment loss" will be debited according to the difference.

14. Receivables financing

Where the following conditions are reached at the same time the financial assets can be classified as

those measured at fair value and its change and included into other comprehensive income: the Company

adopts the business management mode of the financial assets for the purpose of collecting contractual cash

flow and selling the financial assets. In accordance with the contract terms of the financial assets the cash

flow generated at the specific date is only the payment of the principal and the interest on the basis of the

outstanding principal amount.The Company transfers the accounts receivable held in the form of discount or endorsement and such

business is more frequent and involves a large amount of money. Its business management model is in

essence to collect and sell contract cash flow. According to the relevant provisions of financial instrument

standards the accounts receivable is classified into financial assets with changes measured at fair value

and included in other comprehensive income.

15. Other receivables

Determination and accounting method for expected credit loss of other accounts receivable

The Company divides the process of credit impairment of other receivables into three stages and

adopts different accounting treatment methods for the impairment of other receivables in different stages:

Credit risk has not increased significantly since initial recognition (Stage I)

For the financial instruments in this stage the Company shall measure the loss provisions based on

the expected credit loss in the next 12 months.The Company classifies other receivables based on aging as a credit risk characteristic and measure

them on the basis of combination which is equivalent to the expected credit loss in the next 12 months.Credit risk has increased significantly since initial recognition but has not been impaired (Stage II)

For the financial instruments in this stage the Company shall measure the loss provisions based on

the expected credit loss during the entire duration.Credit impairment after initial recognition (Stage III)

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For the financial instruments in this stage the Company shall measure the loss provisions based on

the expected credit loss during the entire duration.

16. Contract assets

Recognition method and standard of contract asset

Contract asset refers to the rights of the Company to receive consideration for goods transferred to the

customer which depend on other factors except for the lapse of time. Where the Company sells two clearly

distinguished commodities to the customer and has the right to collect the payment because one

commodity is delivered and the payment relies on the delivery of the other commodity the Company will

treat the collection rights as the contract assets.Determination and accounting method for expected credit loss of contract assets

For the determination method for expected credit loss of contract assets please refer to relevant

contents in 11. Financial asset and liabilities; 12. Notes receivable and 13. Account receivable.The Company calculates the expected credit loss of contract assets on the balance sheet date. If the

expected credit loss is greater than the carrying amount of the current impairment provision of contract

assets the Company will recognize the difference as impairment loss debit "asset impairment loss" and

credit "contract asset impairment provision". Otherwise the Company will recognize the difference as

impairment gains and make opposite accounting records.For the actual credit losses of the Company if the relevant contract assets are determined to be

unrecoverable and are approved to be written off the Company shall debit "contract asset impairment

provision" and credit "contract assets" according to the approved write-off amount. If the write-off amount

is greater than the accrued loss provisions the "asset impairment loss" will be debited according to the

difference.

17. Inventories

Inventories of the Company mainly include low-value consumables raw materials goods in-process

merchandise inventory and goods shipped in transit.Inventories are initially measured by cost. Inventory costs include purchase costs processing costs

and other costs. The inventories are managed based on perpetual inventory system and valued at actual

cost on acquisition. Actual cost is calculated using weighted average method when the inventories are

issued or consumed.Low-value consumables and packaging materials are amortized using one-off amortization method.The provision for inventory write-downs is made based on the excess of the cost of individual inventory

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items over their net realizable value. For raw and auxiliary materials of larger amount and lower unit price

inventory revaluation reserves shall be accrued based on the category.Net realizable value of stock goods work in progress or held-for-sale materials are determined by

their estimated selling price deducted by estimated selling expenses and related taxes. Net realizable value

for material held for production are determined by the estimated selling price of finished goods deducted

by the estimated cost to completion selling expenses and the related taxes.

18. Assets held for sale

The Company classifies non-current assets or disposal groups as held for sale when the primary means of

recovering their carrying amount is through sale (including non-monetary exchanges with commercial

substance) rather than through continued use.

1. The Company classifies non-current assets or disposal groups as held for sale when they meet the

following conditions: 1) the asset or disposal group can be immediately sold in its current condition

based on customary practices for similar transactions; 2) the sale is highly probable with a definitive

commitment from a buyer and an expectation that the sale will be completed within one year. The sale

of items that require approval from relevant authorities or regulatory departments must obtain the

necessary approval. Before classifying non-current assets or disposal groups as held for sale the

Company measures the carrying amounts of each asset and liability within the non-current assets or

disposal groups according to the relevant accounting standards. When initially measuring or

remeasuring non-current assets or disposal groups held for sale on the balance sheet date if their

carrying amount exceeds the net amount after deducting the fair value minus the selling expenses the

carrying amount shall be adjusted to the fair value less costs to sell. The impairment loss should be

recognized in the current period's profit or loss and an impairment provision for held-for-sale assets

shall be established.

2. Non-current assets or disposal groups acquired specifically for resale are classified as held for sale on

the acquisition date if they meet the requirement that "the sale is expected to be completed within one

year" and are likely to meet the other classification criteria for held-for-sale within a short period

(typically within three months). At initial measurement the asset or disposal group is measured at the

lower of the carrying amount assuming it is not classified as held for sale and the fair value less costs

to sell. Except for non-current assets or disposal groups acquired in a business merger any difference

arising from using fair value less costs to sell as the initial measurement amount is recognized in the

reporting period’s profit or loss.

3. If the Company loses control over a subsidiary due to reasons such as selling the investment in the

subsidiary regardless of whether the Company retains part of the equity investment after the sale if

the investment in the subsidiary meets the classification criteria for held-for-sale the entire investment

in the subsidiary is classified as held-for-sale in the parent company's individual financial statements.In the consolidated financial statements all assets and liabilities of the subsidiary are classified as

held-for-sale.

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4. On subsequent balance sheet dates if the net amount of the fair value less costs to sell of the non-

current assets held-for-sale increases the previously written-down amount should be recovered and

reversed within the amount of the asset impairment loss recognized after being classified as held-for-

sale. The reversed amount is recognized in the reporting period's profit or loss. Asset impairment

losses recognized before being classified as held-for-sale cannot be reversed.

5. For the amount of asset impairment loss recognized on a disposal group classified as held-for-sale the

impairment loss should first be deducted from the carrying amount of goodwill in the disposal group.Then based on the proportion of the carrying amount of each non-current asset within the group the

carrying amounts of those assets are proportionally reduced.On subsequent balance sheet dates if the net amount of the fair value less costs to sell of the disposal

group held-for-sale increases the previously written-down amount should be recovered and reversed

within the amount of the asset impairment loss recognized after being classified as held-for-sale in

accordance with the relevant measurement regulations applicable to non-current assets classified as held-

for-sale. The amount reversed is recognized in the reporting period's profit or loss. The carrying value of

goodwill that has been reduced and the asset impairment losses on non-current assets recognized before

classification as held-for-sale cannot be reversed.For the amount of asset impairment loss recognized on a disposal group classified as held-for-sale and

then reversed based on the proportion of the carrying amount of each non-current asset within the group

excluding goodwill the carrying amounts of those assets are proportionally increased.

1. Non-current assets or non-current assets within a disposal group classified as held-for-sale are not

subject to depreciation or amortization. However the interest and other expenses related to liabilities

within a disposal group held-for-sale continue to be recognized.

2. If a non-current asset or disposal group classified as held-for-sale no longer meets the criteria for such

classification or if a non-current asset is removed from a disposal group held-for-sale it is measured at

the lower of the following two amounts: 1) the carrying amount before being classified as held-for-sale

adjusted for depreciation amortization or impairment that would have been recognized had the asset

not been classified as held-for-sale; 2) the recoverable amount.

3. Upon the derecognition of non-current assets or disposal groups classified as held-for-sale any

unrecognized gains or losses are included in the reporting period's profit or loss.

19. Long-term equity investments

Long-term equity investment of the Company mainly includes the investment to the subsidiaries and

the equity investment to associated enterprises and joint ventures.The Company follows the basis to judge the joint control: all the participants or group of participants

collectively control the arrangements and the policies for activities related to such arrangement must be

agreed by all such participants.

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Generally it constitutes significant influence on an investee if the Company controls 20% (inclusive)

or more (less than 50%) voting shares of the investee directly or indirectly through a subsidiary. Where the

Company controls less than 20% voting shares of the investee directly or indirectly through a subsidiary

significant effects on the investee shall be judged based on the facts and circumstances in the case that

appoint representative to the board of directors or similar organ of power under the investee participate the

development of financial and operating policies of the investee conduct important trading with the

investee dispatch management personnel to the investee or provide key technical data to the investee.The one forming control over the investee is the subsidiary of the Company. For the long-term equity

investment acquired through business merger under the same control the share of the combined party in

the book value of net assets presented in consolidated financial statements of ultimate controlling party

acquired at the date of combination is recognized as initial investment cost of long-term equity investment.The book value of net assets for the combined party is negative on the combining date and the long-term

equity investment cost is determined as zero.In case that equity of the investee under the same control is obtained through multiple deals step by

step to finally form business merger for package deals the Company shall account each deal as a deal to

obtain the control. If it is not a package deal the share of the book value of combined party's net assets

presented in consolidated financial statements of ultimate controlling party acquired at the date of

combination is recognized as initial investment cost of long-term equity investment. The difference

between initial investment cost and the sum of the book value of long-term equity investment before the

combination is realized and the book value of consideration additionally paid to further acquire shares on

the date of combination is adjusted against the capital surplus; if the capital surplus is not sufficient to be

offset the remaining balance is adjusted against retained earnings.For long-term equity investments acquired through business mergers not under common control the

combined cost is used as the initial investment cost.In case that equity of the investee not under the same control is obtained through multiple deals step

by step to finally form business merger for package deals the Company shall account each deal as a deal

to obtain the control. If it is not a package deal initial investment cost accounted using cost method will be

the sum of the book value of original equity investment and new investment cost. For equity held before

the date of acquisition and accounted with equity method other related comprehensive income using

equity method for accounting shall not be adjusted and accounting treatment should be applied to these

investments on the same basis as those adopted by the investee for direct disposal of related assets or

liabilities. For equity held before the date of acquisition and accounted at fair value in the available-for-

sale financial assets the accumulated change in fair value which is originally included in other

comprehensive income shall be transferred to the investment profit or loss for the current period on the

combining date.

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Apart from the long-term equity investments acquired through business merger mentioned above the

long-term equity investments acquired by cash payment is used as the cost of investment based on the

purchase price actually paid. For long-term equity investments obtained by issuing equity securities the

fair value of the equity securities issued is recorded as the initial investment cost. For long-term equity

investments obtained by exchange of non-monetary assets the initial investment cost shall be determined

in accordance with relevant provisions in the Accounting Standards for Business Enterprises No. 7

Exchange of Non-Monetary Assets; the initial investment cost shall be determined in accordance with the

relevant provisions of the Accounting Standards for Business Enterprises No. 12 Debt Restructuring by the

long-term equity investment of debt restructuring.Investment in subsidiaries by the Company shall be calculated by cost method while investment in

joint ventures and associates by the Company shall be calculated by equity method.For long-term equity investment calculated by cost method the cost of long-term equity investment

shall be adjusted when the investment is added or recovered. The cash dividends or profits declared to be

distributed by the investee shall be recognized as the current investment income.For long-term equity investment calculated by equity method in subsequent measurement the book

value of the long-term equity investment shall be increased or decreased accordingly with the changes in

owner’s equity of the investee. The shares of the net profits & losses of the investee attributable to the

Company shall be recognized based on the fair value of all identifiable net assets of the investee upon

acquisition of the investment in accordance with the accounting policies and accounting period of the

Company after deducting the parts of the profits & losses arising from internal transactions between the

associates and joint ventures attributable to the Company calculated on the basis of shareholding ratio and

adjusting the net profits of the investee.When disposing the long-term equity investment the balance between the book value and the

acquired price actually shall be included in the current profit and loss. As for long-term equity investments

calculated by the equity method when other changes in owners’ equity other than net gain or loss of the

investee are recorded in owners’ equity the amount initially recorded in owners’ equity is proportionally

transferred into current investment income.If all transactions from step-by-step disposal of equity to loss of controlling interest do not belong to

package transaction the Company will conduct accounting treatment for each transaction. In case of

package transaction all transactions shall be calculated as one transaction of disposing subsidiaries and

losing control power for accounting treatment. However the difference between disposal cost of each

transaction and book value of long-term equity investment corresponding to equity disposed before losing

control power shall be recognized as other comprehensive income and then shall be transferred into current

profits and losses of losing control power upon such loss.

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20. Investment real estates

Measurement model of investment real estate

Measurement by cost method

Depreciation or amortization methods

Investment properties held by the Company include buildings held for the purpose of earning rental

income capital appreciation or both. Measurement is carried out by cost model.The investment real estates of the Company are depreciated or amortized by the composite life

method. The estimated service life net residual value ratio and annual depreciation (amortization) rate of

the investment real estate are as follows:

Depreciation period Estimated residual value Annual depreciation

Type

(years) ratio (%) rate (%)

Houses and buildings 20 5.00 4.75

Land use right 50 0.00 2.00

21. Fixed assets

(1) Recognition conditions

Fixed assets of the Company refer to tangible assets with service life over one year and an individual

value exceeding RMB 5000 which are held for producing goods rendering labor services lease

(exclusive of leased houses buildings and molds) or operation and management.Fixed assets are recognized when the economic benefits related thereto are likely to flow into the

Company and their costs can be measured in a reliable manner. Fixed assets include houses and buildings

machine and equipment transportation equipment and other equipment and the actual cost at the time of

acquisition is taken as the entry value. Among them the cost of purchased fixed assets includes the

purchase price import duties and other related taxes as well as other expenditures that can be directly

attributed to the fixed assets before the fixed assets reach the predetermined serviceable state; the cost of

the self-constructed fixed assets consists of necessary expenses incurred before the constructed assets are

ready for the intended use; the fixed assets invested by investors shall be accounted for at the value agreed

in the investment contract or agreement or at the fair value if the value agreed in the investment contract

or agreement is unfair; the fixed assets rented in by way of financial lease shall be accounted for at the fair

value. For fixed assets obtained by financing lease the lower of the fair value of rented assets and the

present value of the minimum lease payment on the lease start date shall be recorded as the entry value.

(2) Depreciation method

Annual depreciation

Type Depreciation method Depreciation period Residual value rate

rate

Houses and buildings Straight-line method 20 years 5.00% 4.75%

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Machine and

Straight-line method 10 years 5.00% 9.50%

equipment

Transportation

Straight-line method 5 years 5.00% 19.00%

equipment

Other equipment Straight-line method 5 years 5.00% 19.00%

Processing of subsequent expenditure of fixed assets: The subsequent expenditure of fixed assets

mainly includes renovation/modification expenditure repair expenditure etc. When the relevant economic

benefits are likely to flow in and the costs can be measured in a reliable manner they shall be included into

the cost of fixed assets. For the replaced part the book value shall be derecognized. All the other

subsequent expenditures are recognized in profit or loss for the current period in which they are incurred.The Company will recheck the estimated service life the estimated net residual value and the

depreciation method of the fixed assets on each balance sheet date.Changes if any are regarded as the accounting estimate changes. A fixed asset is derecognized when

it is disposed of or no economic benefit is expected from the use or disposal of the asset. The amount of

proceeds on sale and transfer of a fixed asset as well as disposal of a scrapped or damaged fixed asset less

carrying amount and related taxes thereof is recognized in profit and loss for the current period.

22. Construction in progress

Construction in progress is measured at its actual cost. The self-operating works is measured

according to the direct material direct wage direct construction cost etc.; the outsourced works is

measured according to the project price payable; the project cost of the equipment installation works is

determined according to the value of installed equipment installation cost commissioning cost and other

expenditures incurred. The cost of construction in process shall also include borrowing costs that should be

capitalized.The fixed assets constructed by the Company shall be transferred into fixed assets at the estimated

value based on project budget construction cost and actual project cost from the date when fixed assets get

ready for intended use and depreciation of such assets will be accrued in next month. Upon completion of

the final accounts formalities the original value difference of the fixed assets will be adjusted.Construction in progress is transferred to fixed assets when it reaches its intended usable state based

on the following criteria:

Item Standard for carrying forward fixed assets

(1) The construction of the entity including installation has been fully or substantially

completed; (2) further expenditures on the purchased or constructed houses and buildings are

Houses and minimal or have nearly ceased; (3) the purchased or constructed houses and buildings have met

buildings the design or contractual requirements or are substantially in accordance with these

requirements; (4) for construction projects that have reached a predetermined usable state but

have not yet undergone final completion settlement the projects shall be transferred to fixed

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assets at their estimated value based on the actual cost of construction effective from the date

they reach the predetermined usable state.The equipment management department and the equipment manufacturer are jointly responsible

for the installation and commissioning of the equipment including hardware debugging and

Machine and

process condition adjustments. Once commissioning is completed and the equipment has

equipment

reached its predetermined usable state it will be transferred to fixed assets after the approval

process is completed.When it reaches the designated usable state it will be transferred to fixed assets after the

Transportation

approval process is completed according to the procedure.When it reaches the designated usable state it will be transferred to fixed assets after the

Other equipment

approval process is completed according to the procedure.

23. Borrowing costs

The Company capitalizes borrowing costs directly attributable to the construction or production of

qualifying assets and includes them in the cost of the related assets. Other borrowing costs are expensed

and recognized in profit or loss for the current period. Recognition principle of borrowing cost

capitalization: The borrowing costs incurred by the Company that can be directly attributable to the

acquisition and construction or production of qualifying assets will be capitalized and incurred in the

relevant asset cost. Other borrowing costs are recognized as expenses based on the amount incurred and

included in the current profit and loss. Qualifying assets are defined as assets that require a substantial

amount of time (usually more than one year) for construction or production activities before the asset is

ready for its intended use or sale. These include fixed assets intangible assets and inventory.Period of capitalizing the borrowing costs: The Company will start to capitalize the borrowing costs

related to the qualifying assets when the asset expenditure has been incurred the borrowing costs have

been incurred and the acquisition construction or production activities necessary to prepare assets for

their intended use or sale are in progress. Where the acquisition or production of a qualifying asset are

interrupted abnormally and the interruption period lasts for more than 3 months the capitalization of the

borrowing costs shall be suspended. Capitalization of borrowing costs shall cease once the acquisition

construction or production necessary to prepare the qualifying asset for its intended use or sale are

complete.Method for calculating the amount of borrowing costs to capitalize: If borrowing funds specifically

for acquiring constructing or producing qualifying assets the amount of interest eligible for capitalization

by the Company will be the actual interest costs incurred during the specific borrowing period minus the

interest income obtained by depositing or temporarily investing unspent borrowed funds. Where a general

borrowing is used for the acquisition construction or production of a qualifying asset the Company shall

calculate and determine its amount of interest to be capitalized by taking the weighted average of the

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accumulative asset expenditure minus the asset expenditure of the specific borrowing multiplied by the

weighted average interest rate of the general borrowing used.

24.Intangible assets

(1) Service life and its determination basis estimation situation amortization method or review

procedure

The intangible assets of the Company mainly include land use rights software trademarks and

patents. As for intangible assets that are purchased the actual cost is composed of the actual price paid and

other relevant expenditures. For the intangible assets that are invested by investors the actual cost is

determined by the agreed value in the investment contract or agreement but if the agreed value is not fair

the fair value will be taken as the actual cost. Intangible assets are amortized using the composite life

method and the classifications and amortization periods of the Company’s intangible assets are as follows:

Type Amortization year

Land use right 50 years

30 patents 10 years

Software 3-5 years

Trademark or domain name 10 years

The Company’s land use rights are amortized evenly according to the lease term starting from the

date of transfer. The Company’s patent rights non-patented technologies special software use rights and

other intangible software amortized evenly by stages according to whichever period is the shortest: the

asset’s estimated useful life the beneficial period stipulated in the contract or the period of legal validity.The amount of amortization is included into the current profits and losses or included into the relevant

asset cost according to the beneficiaries.At the end of each year the Company shall review and adjust in case of changes the estimated

useful lives and amortization methods used for intangible assets with limited useful lives; in each

accounting period the Company carries out reviews of the estimated useful life of intangible assets whose

useful life is uncertain. Where there is evidence showing that the useful life of these intangible assets is

limited the Company will estimate the useful life thereof and amortize these intangible assets during the

estimated useful life remaining.

(2) Scope of attribution of R&D expenditure and related accounting treatment

The internal R&D expenditures of the Company can be divided into expenditures made at the

research stage and those made at the development stage depending on the nature of the expenditure and

the extent of uncertainty on whether the R&D activities will finally form intangible assets.

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For internally-generated intangible assets expenditures at the research stage are included in the

current profits and losses when incurred; expenditures at the development stage are recognized as an asset

when the following conditions are met:

It is technically feasible to complete the intangible assets so that they can be used or sold;

There is an intention to complete and use or sell the intangible assets;

There is a potential market for the products manufactured via the application of the

intangible assets or there is a potential market for the intangible assets themselves;

There is sufficient support in terms of technological financial and other resources in order

to complete the development of the intangible assets and there is the capability to use or

sell the intangible asset;

The expenditures made on the intangible assets during the development stage can be

measured reliably.Expenditures made in the development stage that fail to meet the above conditions shall be included

in the current profits and losses when incurred. The development expenditures previously included in the

profit and loss statement will not be recognized as assets in subsequent periods. The expenditures incurred

and capitalized at the development stage are recorded as development expenditures on the balance sheet

and will be carried over as the intangible asset on the date when the project is ready for its intended use.If the expenditures made at the research and development stages cannot be distinguished all the R&D

expenditures incurred will be fully included in the current profits and losses. The costs of the intangible

assets generated by internal development activities only include the total expenditures incurred from the

time when the capitalization conditions are met to the point when the intangible assets are used for their

intended purposes; for expenditures that are already recorded as such in the profit and loss statement

before the capitalization conditions are met during development of the same intangible asset no

adjustments will be made.

25.Impairment of long-term assets

On each balance sheet date the Company shall audit the projects of subsidiaries joint ventures and

associates including long-term equity investments fixed assets projects under construction and

intangible assets with finite useful lives. If any of the signs listed below are identified this is an indication

that the asset may be impaired and the Company will conduct an impairment test. Impairment test is

carried out on the intangible assets with uncertain goodwill and beneficial period and development costs

that have not yet reached their intended usable state at the end of each period irrespective of whether there

is any indication that the assets may be impaired. If there is difficulty testing the recoverable amount of a

single asset a test shall be conducted on the asset group which the asset belongs to or on a combination of

asset groups.After the impairment test if the book value of the asset exceeds its recoverable amount the difference

shall be recognized as an impairment loss. Once such an impairment loss has been confirmed it shall not

89Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

be reversed in the subsequent accounting period. The recoverable amount of an asset is the greater of its

fair value less the net value of asset disposal and present value of expected future cash flow. The following

signs may indicate asset impairment:

Current market price of the asset drops substantially with the drop in price being notably higher than

the expected drop over time or due to the asset’s normal use;

Significant changes occur in the current period or are predicted to occur in the near future with

regard to the economic technological or legal environment in which the enterprise conducts its

business operations or in the asset market and these changes have or will have negative impacts

on the enterprise;

The market interest rate or other market investment return rates have risen in the current period

affecting the enterprise’s discount rate for calculating the asset’s present value of expected future

cash flow and leading to a substantial decrease in recoverable amounts of the assets;

There is any amount of evidence to prove the asset has been out of date or the physical asset has

been damaged;

The asset has been or will be left unused terminated for use or disposed of ahead of schedule;

There is evidence from the enterprise’s internal reports proving that the economic performance of

the asset has been lower or will be lower than expected. For example the net cash flow generated

by the assets or operating profits (or losses) realized is much lower (or higher) than the expected

amounts;

Other signs indicating that the asset may have been impaired.

26. Long-term unamortized expenses

The long-term deferred expenses of the Company refer to the expenses that have been paid but shall

be borne in the current and future periods with an amortization period of more than one year. Moreover

such expenses shall be subject to average amortization within the benefit period. If long-term deferred

expense items cannot benefit the future accounting periods the amortized value of such items yet to be

amortized shall be fully transferred into the current profits and losses.

27. Contract liabilities

Contract liabilities reflect the obligations of the Company to transfer goods to the client for which

consideration is received or receivable from the client. Before the Company transfers goods to the client

and the client has paid the consideration in the contract or the Company has obtained the right of

unconditionally collecting the consideration the contract liabilities are recognized according to the

received or receivable amount either at the time of actual payment by the client or when the payment is

due―whichever is earlier.

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28. Employee remuneration

(1) Accounting treatment method of short-term remuneration

Short-term remunerations mainly include wages bonuses allowances and subsidies employee

welfare housing provident funds labor union funds employee education funds medical insurance

premiums industrial injury insurance premiums and maternity insurance premiums. In the accounting

period during which the employee has rendered service the actual short-term remuneration incurred is

recognized as a liability and included into the current profits and losses or related asset costs based on the

beneficiary.

(2) Accounting treatment method of post-employment benefits

The post-employment benefits mainly include basic endowment insurance unemployment insurance

enterprise and annuity payments which are classified into defined contribution plans according to the risks

and obligations undertaken by the Company. Moreover the contributions paid into a separate entity in

exchange for the employee’s services during the accounting periods at the balance sheet date are

recognized as a liability and recorded in current profits and losses or relevant asset costs based on the

beneficiary.

(3) Accounting treatment method of dismissal benefits

Dismissal benefits are required in instances when the Company terminates labor relationships with a

certain employee prior to the maturity of their labor contract. The Company shall recognize the employee

remuneration liabilities incurred from termination benefits and include them into the current profits and

losses. This occurs either when the Company cannot unilaterally withdraw the termination benefits

provided by the plan on the termination of the labor relationship or dismissal proposal or when the

Company recognizes the costs or expenses related to restructuring the payment of termination

benefits―whichever occurs earlier. The compensations paid exceeding one year will be discounted then

included in the current profits or losses.

(4) Accounting treatment method of other long-term employee benefits

Other long-term benefits mainly include long-term incentive plans and long-term benefits. The

Company conducts accounting treatment according to relevant provisions of the defined contribution plans.

29. Provisions

When obligations relating to contingencies such as external guarantee pending litigation or

arbitration product quality assurance layoff plans loss contracts restructuring obligations environmental

pollution control commitments and disposal obligation of fixed assets also meet the following conditions

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the Company recognizes it as a liability: the obligation is currently being undertaken by the Company;

there is a high possibility that the fulfillment of the obligation will result in the outflow of economic

benefits from the enterprise; and the amount of the obligation can be reliably measured.Provisions are initially measured according to the best estimate of the expenditure required to settle

the present obligation taking into account factors relating to contingencies such as risks uncertainties and

the time value of money. On the balance sheet date the Company reviews the current best estimates and

adjusts the carrying amount of the provisions.For acquired entities not under common control in business mergers contingent liabilities are

initially measured at fair value. After initial recognition subsequent measurement is based on the higher of

the amount recognized as a provision or the remaining balance after deducting cumulative amortization

determined by revenue recognition principles from the initial recognition amount.

30. Share-based payment

Share-based payment refers to transactions in which equity instruments are granted or liabilities are

incurred based on equity instruments in order to obtain services provided by the employees or other parties.Share-based payments are divided into equity-settled and cash-settled share-based payments.Equity-settled share-based payments made in exchange for the service of employees are measured at

the fair value on the date at which the equity instrument is granted to employees. When the fair value

amount is contingent on completing a service during a vesting period or achieving specified performance

conditions the fair value of the equity instruments is measured at the grant date. On each balance sheet

date during the vesting period the cost or expense for the services received during the period is recognized

based on the best estimate of the number of equity instruments expected to vest using the grant-date fair

value and recorded as the corresponding increase in capital reserves.If equity-settled share-based payments are cancelled they are treated as accelerated exercise on the

date of cancellation and the unrecognized amount is recognised immediately. If an employee or another

party chooses not to fulfill a non-vesting condition during the vesting period this is treated as a

cancellation of the equity-settled share-based payment. However if new equity instruments are granted

and it is determined on the grant date that these new equity instruments are intended to replace the

canceled ones then the replacement equity instruments are treated in the same manner as a modification of

the terms and conditions of the original equity instruments.Cash-settled share-based payments shall be measured at the fair value of liabilities and recognized on

the basis of share options or other equity instruments undertaken by the Company. If excisable

immediately after the grant the fair value of the liabilities assumed shall be included in the relevant costs

or expenses on the granting date and the liabilities shall be increased accordingly. If it is necessary to

complete the services in the waiting period or achieve the specified performance conditions before the

right is excisable on each balance sheet date of the waiting period the services acquired in the current

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period shall be included in the cost or expense based on the best estimation of the excisable right and the

liabilities shall be adjusted accordingly according to the fair values of the liabilities assumed by the

Company.On each balance sheet date and settlement date prior to the settlement of relevant liabilities the fair

value of the liabilities will be re-measured with any changes recorded in the profits and losses at the

current period.

31. Revenue

Disclose the accounting policies adopted for revenue recognition and measurement by business type

Operating revenues of the company are mainly from sales of goods rendering labor service and

transferring right to use assets.Revenue recognition principle

The Company recognizes the revenue upon fulfillment of its performance obligations within the

contract that is when the client obtains control of the relevant goods or services. Acquisition of control

over relevant goods or services means the ability to manage the use of such goods or the provision of

services and to receive almost all economic benefits therefrom.The Company assesses the contract from the commencement date of the contract and recognizes each

individual performance obligation included by the contract and determines if each individual performance

obligation will be fulfilled during a certain period or at a certain time point.The performance obligations are to be fulfilled within a specified period once the Company meets one

of the following conditions; otherwise the Company is to fulfill the performance obligations at a specified

time point:

1) The client obtains and consumes the economic benefits while the Company fulfills the performance

obligations.

2) The client can control goods or services still under construction while the Company is still in the

process of fulfilling the performance obligations.

3) The goods generated while the Company is in the process of performing the contract are

indispensable and the Company has the right to collect partial payments for the cumulative performance

obligations that have been fulfilled so far within the contract period.If the performance obligations are performed within the specified period the Company will recognize

the income within this period in accordance with the progress of the contract’s performance. If the

performance progress cannot be reasonably determined and the costs incurred by the Company are

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expected to be compensated the revenue will be ascertained according to the costs incurred until the

performance progress can be reasonably determined.If the performance obligations are performed at the specified time point the Company will recognize

the income at the time when the client obtains control over the relevant goods or services. In judging

whether the client has obtained control over goods or services the Company shall consider the following

signs:

1) The Company has the current right to collect payment for the goods or services.

2) The Company has transferred the legal ownership of the goods to the client.

3) The Company has transferred physical possession of the goods to the client.

4) The Company has transferred the main risks and rewards of ownership of the goods to the client.

5) The customer has accepted the goods or services etc.

The Company lists the right to receive considerations for transfer of goods or services to the customer

as a contract asset for which the impairment will be withdrawn on the basis of expected credit loss. The

right of the Company to unconditionally receive considerations from the customer is listed as receivables.The Company presents the obligation to transfer goods or services to the customer for considerations

received or receivable from the customer as a contract liability.The situation involves different revenue recognition methods and measurement methods for similar businesses using different

operating models.Revenue measurement principle

1) If there are two or more performance obligations in the contract the Company will apportion the

transaction price to each single performance obligation according to the relative proportion of the separate

selling price of the goods or services promised by the single performance obligation at the beginning of the

contract and the revenue shall be measured according to the transaction price apportioned to each single

performance obligation.

2) The transaction price refers to the amount of consideration that the Company expects to collect due

to the transfer of goods or services to the client excluding the amount collected by third parties. The

transaction price refers to the amount of consideration that the Company expects to collect for transfer of

goods or services to the client excluding the amount collected by third parties. The transaction price

recognized by the Company shall not exceed the amount of recognized accumulated income which is not

likely to be significantly reversed once the relevant uncertainty is eliminated.

3) If there is significant financing in the contract the Company shall determine the transaction price

according to the amount payable in cash when the client obtains control of the goods or services. The

difference between the transaction price and the contract consideration shall be amortized by the effective

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interest method during the contract period. On the contract start date if the Company estimates that the

time between the client's acquisition of control over goods or services and the payment of the price by the

client will not exceed one year the significant financing in the contract shall not be considered.Specific method for revenue recognition

1) Revenue recognized by time point

Selling electric appliances fittings and materials by the Company is the performance obligation at a

time point.Revenue recognition conditions for domestic sales commodity: The Company has delivered the

product to the customer according to the contract terms and the customer has received the product; the

payment has been collected or the receipt voucher has been provided and relevant economic profits might

flow into the Company; main risks and remuneration as for the ownership of the commodity have been

transferred; and legal ownership and control right of the commodity have been transferred.Revenue recognition conditions for exported commodity: The Company has declared the product to

the customs and the product has been delivered according to the contract terms; the bill of lading has been

obtained the payment has been collected or the receipt voucher has been provided and relevant economic

profits might flow into the Company; main risks and remuneration as for the ownership of the commodity

have been transferred; and legal ownership and control right of the commodity have been transferred.

2) Revenue recognized by performance progress

The technical service revenue of the Company and the business contract between the operating lease

and the customer are the performance obligations to be performed within a period for which the revenue

shall be recognized according to the performance progress.

32. Contract costs

Method for determining asset amount related to contract cost

The Company’s assets related to the contract cost comprise the contract performance cost and the

contract acquisition cost.Contract fulfillment costs refer to the costs incurred by the Company to fulfill a contract are

recognized as an asset when they are not covered by other accounting standards and meet all of the

following conditions: the costs are directly related to a specific current or expected contract including

direct labor direct materials manufacturing overheads (or similar costs) costs explicitly borne by the

customer and other costs incurred solely due to the contract; the costs enhance the Company's resources

for fulfilling future performance obligations; and the costs are expected to be recoverable.

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The contract acquisition cost refers to the incremental cost incurred by the Company for the purpose

of securing a contract which will be recognized in the form of contract acquisition cost as an asset if it is

expected to be recovered. If the amortization period of the assets does not exceed one year such cost shall

be included as current profit or loss. Incremental cost refers to the cost which will not incur unless a

contract is secured by the Company (e.g. sales commission etc.). Other costs (such as the travel expense

whether or not the contract will be acquired except the incremental cost which can be recovered as

expected) incurred the Company for purpose of acquiring the contract shall be included in the current

profit or loss at the time of occurrence unless those clearly specified to be borne by the customer.Asset amortization related to contract cost

The Company’s assets related to contract costs are amortized on the same basis as revenue

recognition of goods related to the asset and recorded in the current profits or losses.Asset impairment related to contract cost

When the Company recognizes the impairment loss related to contract cost the Company shall firstly

recognize the impairment loss of other assets which are recognized as per other account standards for

business enterprises and are related to the contract. Then if the book value is higher than the difference

between the remaining consideration expected to be received for the transfer of the commodity associated

with the asset and the estimated costs to be incurred for the relevant commodity impairment provision will

be made for the excess portion and recognized as asset impairment loss.If the factors causing the impairment of prior period change and make the previous difference

between the above-mentioned items higher than the book value of the asset the withdrew asset impairment

provision shall be reversed and included into the current profits or losses although the book value of asset

after reversion shall not exceed the book value of the asset at the reversion date under the condition of not

withdrawing the impairment provision.

33. Government grants

Government grants are recognized when the conditions attached to them are met and it is probable

that the grants will be received. Government grants of the Company include fiscal appropriation. Asset-

related government grants refer to government grants obtained by the Company for purchasing and

acquiring long-term assets or forming long-term assets by other ways. Income-related government grants

refer to those other than asset-related government grants. In case the purpose of a grant is not expressly

stipulated in the government document the Company will categorize the grant according to these above

principles. If it is difficult to categorize the grant it will be categorized as the income-related government

grant.

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If a government grant is a monetary asset it will be measured at the amount received; for the grant

appropriated according to the fixed quota or for the grant where there is concrete evidence showing that the

Company is qualified to receive governmental financial support and will be able to receive the support by

the end of the period the grant will be measured at the receivable; if the government grant is a non-

monetary asset it will be measured at the fair value or measured at its nominal amount (RMB 1) if the fair

value cannot be obtained reliably.If a government grant relating to assets is recognized as deferred income such grant is recognized in

the current profit or loss based on equal division within the service life of the relevant asset.If the relevant asset has been sold transferred retired or damaged before the end of the service life

the balance of the relevant deferred income that has not been allocated will be transferred into the current

profit and loss of asset disposal.Government grants relating to income that compensate future costs expenses or losses are recognized

as deferred income and recognized in profit or loss in reporting the related costs expenses or losses. The

government grants relating to the ordinary activities are included in other income or deducted against

relevant costs and expenses according to the nature of the accounting event otherwise they are included in

non-operating income. Government grants unrelated to daily activities will be included in non-operating

income.If the Company obtains the subsidized loan as a result of preferential financial policy there will be

two situations: the Ministry of Finance appropriates the interest subsidy to the lending bank or the

Ministry of Finance directly appropriates the subsidy to the Company and the accounting treatment for

each of these situations is as follows:

Where the Ministry of Finance appropriates the subsidy to the lending bank and the bank

provides the Company with the loan at a discounted interest rate the Company will use

the actual amount of loan received as the book value of the loan and calculate the relevant

borrowing costs based on the principal of the loan and the interest rate.Where the Ministry of Finance directly appropriate the interest subsidy to the Company

the Company will deduct the corresponding interest subsidy against the borrowing costs.Where the governmental grants recognized by the Company need to be returned the accounting

treatment will be done as follows in the period they are returned:

1) Where the book value of relevant assets is deducted at the time of the initial recognition the book

value of assets will be adjusted.

2) Where there is any deferred income concerned the book balance of the deferred income will be

deducted but the excessive part will be included in the current profit or loss.

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3) For other circumstances the government grants will be directly included in the current profit or

loss.

34. Deferred income tax asset/deferred income tax liability

Deferred income tax asset and deferred tax liability of the Company are calculated and recognized

based on the differences (temporary differences) between the tax base and the carrying amount of an asset

or liability. For the deductible loss and tax credits that can be deducted annually in the subsequent years

according to tax laws the corresponding deferred income tax assets are recognized. Where the temporary

differences arise from the initial recognition of goodwill the corresponding deferred income tax liabilities

are not recognized. No deferred tax asset or deferred tax liability is recognized where the temporary

differences arising from the initial recognition of assets or liabilities in a transaction that is not a business

merger affect neither accounting profit nor taxable profit (or deductible loss). On the balance sheet date

the deferred income tax asset and liability are measured at the applicable tax rates during the period when

the asset is realized or the liability is settled as expected.The Company recognizes the deferred income tax asset to the extent that it is probable that the taxable

income will be available against which the deductible temporary differences deductible losses and tax

credits can be deducted.

35. Lease

(1) Accounting treatment of the leases as lessee

(1) Identification of lease

Lease refers to that the leaser transfers the right to use the asset to the lessee within a certain period to

obtain consideration contracts. On the commencement date of the contract the Company assesses whether

the contract serves as the lease or includes the lease. If one party to the contract transfers the right to

control one or more identified assets during a certain period in exchange for consideration such contract is

or includes lease. To determine whether the contract has transferred the right to control the use of the

identified assets in a certain period of time the Company assesses whether the customer in the contract is

entitled to receive almost all the economic benefits arising from the use of the identified assets during the

use period and is entitled to manage the use of the identified assets during the use period.If a number of separate leases are contained in one contract the Company will split the contract and

adopt accounting methods to each lease on an individual basis. If a contract includes both lease and non-

lease components the Company will separate the lease from the non-lease component before accounting

treatment.

(2) The Company serves as the lessee

1) Lease confirmation

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At the commencement of the lease term the right-of-use assets and lease liabilities shall be

recognized for the lease by the Company. Refer to Note 4 on "24. Right-of-use assets" and "31. Lease

liabilities" for details on the recognition and measurement of right-of-use assets and lease liabilities.

2) Lease change

Lease change refers to the change in lease scope lease consideration and lease term beyond the terms

of the original contract including increasing or terminating the right to use one or more leased assets

extending or shortening the lease term stipulated in the contract etc. The effective date of lease change

refers to the date when the Parties reach the agreement on lease change.When the lease changes and meets the following conditions the Company will treat it as a separate

lease: 1) the lease change expands the lease scope by adding one or more right-of-use leased assets or

extended leases; 2) the increased consideration is equivalent to the single price of the expanded lease scope

or extension of lease term adjusted according to the contract.In case where accounting treatment is not made for lease change as a single lease on the effective

date of lease change the Company will appropriate the consideration of the changed contract according to

the relevant provisions of the lease criteria and redefine the updated lease term. In addition the Company

will discount the changed lease payment according to the revised discount rate so as to remeasure the

lease liabilities. In calculating the present value of the lease payment after the change the Company uses

the interest rate implicit in lease for the remaining lease term as the discount rate. if the interest rate

implicit in lease for the remaining lease term cannot be determined the incremental borrowing interest rate

of the lessee on the effective date of lease change shall be used as the discount rate by the Company. With

regard to the impact of the above adjustment of lease liabilities the Company adopts accounting methods

in the following situations: 1) in the event that the lease scope is narrowed down or the lease term is

shortened as a result of the lease change the lessee shall reduce the book value of the right-of-use assets

and the relevant gains or losses from the partial or complete termination of the lease shall be included into

the current loss and profit; 2) for the lease liabilities remeasured due to other lease changes the lessee shall

adjust the book value of the right-of-use assets accordingly.

3) Short-term leases and leases of low-value assets

For short-term leases with a lease term of no more than 12 months and low-value asset leases at a low

value when individual leased assets are brand new the Company chooses not to recognize the right-of-use

assets and lease liabilities. Lease payments under short-term leases and leases of low-value assets are

recognized by the Company on a straight-line basis or other systematic and reasonable basis over the lease

term and included into the cost of the related assets or current profits or losses.

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(2) Accounting treatment of the lease as lessor

On the basis of the contract is evaluated as a lease or including a lease in (1) the Company as the

lessor divides the lease into financial lease and operating lease at the commencement of the lease.A lease that transfers in substance almost all the risks and rewards incident to ownership of a leased

asset is classified as a financial lease by the lessor. A lease other than the financial lease is an operating

lease.The Company usually classifies a lease as a financial lease if one or more of the following situations

exist: 1) the ownership of the leased asset is transferred to the lessee at the expiration of the lease term; 2)

the lessee has the right to choose to purchase the leased asset; the established purchase price is expected to

be much lower than the fair value of the leased asset when exercising the right of choice and hence it can

be reasonably determined that the lessee will exercise this right of choice on the inception of lease; 3) the

lease term accounts for a substantial proportion (not less than 75%) of the service life of the leased asset

notwithstanding that the ownership of the asset will not be transferred; 4) on the inception of lease the

present value of the lease receipts is almost equal to the fair value of the leased asset (not less than 90% of

the fair value of the leased asset.); and 5) the leased assets are of a specialized nature that only the lessee

can use them without making major modifications. The Company may also classify a lease as a financial

lease if one or more of the following signs exist: 1) if the lessee cancels the lease the resulting loss to the

lessor shall be borne by the lessee; 2) the gain or loss arising from the fluctuation in the fair value of the

residual value of the asset shall be attributable to the lessee; and 3) the lessee is able to continue the lease

to the next period at a rent much lower than the market level.

1) Accounting treatment of financial lease

Initial measurement

On the commencement date of lease term the Company recognizes financial lease receivables for

financial lease and derecognizes financial lease assets. Upon initial measurement of financial lease

accounts receivable the Company takes net investment in lease as entry value of financial lease accounts

receivable.Net investment in lease is the sum of unsecured residual value and the present value of outstanding

lease receipts discounted on interest rate implicit in lease on the commencement date of the lease term.Lease receipts refer to the amount that the lessor shall collect from the lessee for transferring the right to

use the leased assets during the lease term including: 1) the amount of fixed payment and substantial fixed

payment to be paid by the lessee net of relevant amount of lease incentives if any; 2) variable lease

payments that are based on an index or rate which shall be determined at the time of initial measurement

based on the index or rate on the commencement date of the lease term; 3) exercise price of call option

given that the lessee will reasonably exercise such option; 4) amount payable by the lessee for exercising

the option to terminate the lease if it is indicated during the lease term that the lessee will exercise the

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option to terminate the lease; 5) the residual value of the guarantee provided to the lessor by the lessee a

party related to the lessee and an independent third party with the financial ability to meet the guarantee

obligation.Subsequent measurement

The Company calculates and recognizes the interest income in each period of the lease term according

to the fixed periodic rate. Such periodic rate refers to the implicit discount rate used to determine the net

investment in the lease (in case of sublease the discount rate of the original lease is adopted if the interest

rate implicit in lease of the sublease cannot be determined (adjustments are made based on the initial direct

costs associated with sublease)) or the revised discount rate determined according to the relevant

provisions when the change of the financial lease has not been treated as a separate lease for accounting

and it is satisfied that the lease will be classified as the financial lease if the change takes effect at the

beginning of the lease.Accounting treatment of lease change

When a change happens to the financial lease and meets the following conditions the Company will

treat it as a separate lease: 1) the change expands the lease scope by increasing the right to use one or more

leased assets; 2) the increased consideration is equivalent to the single price for the expanded portion of

lease scope adjusted according to contract circumstances.If such a change to the financial lease is not accounted for as a separate lease and the condition is

satisfied that if the change becomes effective on the commencement date of the lease the lease is classified

as an operating lease the Company will account for it as a new lease from the effective date of the lease

change and regard the net lease investment prior to the effective date of the lease change as the book value

of the leased asset.

2) Accounting treatment of operating leases

Treatment of rent

The Company adopts the straight-line method or other systematic and reasonable methods to

recognize the lease receipts from operating leases as rental income during all periods within the lease term.Incentive measures provided

If a rent-free period is provided total rent shall be amortized by adopting the straight-line method or

other systematic and reasonable methods within the lease term not excluding the rent-free period and the

rental income shall be recognized in the rent-free period. Certain costs incurred by the lessee if undertaken

by the Company shall be excluded from total rental income and the balance of rental income after

deducting these costs shall be amortized within the lease term.Initial direct costs

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The initial direct costs incurred by the Company related to the operating lease shall be capitalized to

the cost of leased underlying asset and shall be included in current profits and losses on the same basis as

recognition of rental income during the lease term.Depreciation

For fixed assets included in assets under operating leases accrual depreciation shall base on the

depreciation policy adopted by the Company for similar assets. Other assets under operating leases shall be

amortized in a systematic and reasonable manner.Variable lease payments

Variable lease payments acquired by the Company in connection with operating leases that are not

included in the lease receipts are recognized in the current profits and losses when actually incurred.Change of operating lease

In case of changes in the operating lease the Company will treat it as a new lease as of the effective

date of the change and the lease advance or accounts receivable related to the lease before the change will

be regarded as the amount received from the new lease.

36. Other significant accounting policies and accounting estimates

When preparing financial statements the Company’s management shall make estimates and

assumptions that affect the application of accounting policies and the reported amounts of assets liabilities

income and expenses. Actual results may differ from these estimates. The Company’s management

continuously evaluates the key assumptions and uncertainties involved in these estimates. The impact of

changes in accounting estimates is recognized in the current period and future periods.The following accounting estimates and key assumptions present significant risks that could lead to

substantial adjustments to the carrying amounts of assets and liabilities in future periods:

(1) Impairment of financial assets

The impairment of financial assets is assessed using the expected credit loss (ECL) model which

requires to make significant judgment and estimation. The ECL model takes into account all reasonable

and supportable information including forward-looking information. When making these judgments and

estimations the Company considers historical data with factors such as economic policies macroeconomic

indicators industry risks external market environment technological environment and changes in

customer circumstances to infer expected changes in the credit risk of debtors.

(2) Inventory impairment provision

The determination basis of the net realizable value of inventory: for inventories directly available for

sale such as finished goods and materials intended for sale the net realizable value is determined based on

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the estimated selling price of the inventory minus the estimated selling expenses and related taxes. For

inventories held to fulfill sales contracts or service contracts the net realizable value is calculated based on

the contract price. If the quantity of inventory held exceeds the quantity ordered under the sales contract

the net realizable value of the excess inventory is determined based on the general selling price.Method of provision for inventory impairment: Inventories are valued at the lower of cost or net

realizable value at the end of the period. Based on a comprehensive physical count of inventory at period-

end a provision for inventory write-down is made for the portion of inventory that is damaged partially or

completely obsolete or whose selling price is lower than its cost making the cost unrecoverable.If the factors that caused the inventory value to be written down in previous years no longer exist the

amount written down should be reversed. The reversal amount is limited to the amount originally written

down and is recognized in the current period’s profit or loss.

(3) Accounting estimates for goodwill impairment provision

The Company conducts an annual impairment test for goodwill. The recoverable amount of the asset

group or combination of asset groups that include goodwill is determined based on the present value of the

expected future cash flows which requires the use of accounting estimates.If management revises the gross margin used in calculating the future cash flows of the asset group or

group of asset groups and the revised gross margin is lower than the current one the Company will need to

increase the impairment provision for goodwill.If the management revises the pre-tax discount rate applied to discounted cash flows and the revised

pre-tax discount rate is higher than the current discount rate the Company needs to make provision for

impairment of goodwill.If the actual gross profit margin or pre-tax discount rate is higher or lower than the management's

estimate the Company cannot reverse the previously recognized impairment loss of goodwill.

(4) Accounting estimates for impairment provisions of fixed assets

The Company conducts impairment tests on fixed assets such as buildings and machinery that show

signs of impairment on the balance sheet date. The recoverable amount of fixed assets is the higher of the

present value of their estimated future cash flows or the net amount of the asset's fair value minus disposal

costs which requires the use of accounting estimates.If management revises the gross margin used in calculating the future cash flows of the asset group or

group of asset groups and the revised gross margin is lower than the current one the Company will need to

increase the impairment provision for fixed assets.If the management revises the pre-tax discount rate applied to discounted cash flows and the revised

pre-tax discount rate is higher than the current discount rate the Company needs to make provision for

impairment of fixed assets.

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If the actual gross profit margin or pre-tax discount rate is higher or lower than the management's

estimate the Company cannot reverse the previously recognized impairment loss of fixed assets.

(5) Accounting estimate for recognition of deferred income tax assets

The estimation of deferred income tax assets requires an estimation of the taxable income for each

future year and the applicable tax rate. The realization of deferred income tax assets depends on whether

the group is likely to obtain sufficient taxable income in the future. Changes in future tax rates and the

timing of the reversal of temporary differences can also affect income tax expenses (benefits) and the

balance of deferred taxes. Changes in these estimates may lead to significant adjustments to deferred

income tax assets.

(6) The service life of fixed assets and intangible assets

The Company reviews the estimated service lives of fixed assets and intangible assets at least at the

end of each fiscal year. The expected service life is determined by the management based on the historical

experience of similar assets reference to the estimates commonly used in the same industry and the

expected technological updates. When there are significant changes in the previous estimates the

depreciation and amortization expenses for future periods are adjusted accordingly.

37. Significant accounting policy and accounting estimate changes

(1) Significant accounting policy changes

□Applicable □Not applicable

(2) Significant accounting estimate changes

□Applicable □Not applicable

(3) Relevant financial statement items at the beginning of 2024 when the adjustments stipulated in

the new accounting standards apply for the first time

□Applicable □Not applicable

38. Others

1. Right-of-use assets

The right-of-use asset refers to the right of the Company to use the leased assets as a lessee during the

lease term.

(1) Initial measurement

On the commencement date of the lease term the Company carries out initial measurement to the use-

of-right asset. The cost comprises the following four items: 1) initial measurement amount of lease

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liabilities; 2) the amount of lease payment made on or before commencement date of lease term net of

relevant amount of used lease incentives (if any); 3) the initial direct cost incurred (i.e. the incremental

cost incurred by reaching the lease agreement); 4) costs expected to be incurred to disassemble and remove

the leased assets restore the site where the leased assets are located or restore the leased assets to the

conditions as agreed under the terms of the lease excluding costs incurred to produce the inventory.

(2) Subsequent measurement

On the commencement date of the lease term the Company carries out subsequent measurement to

the right-of-use assets in the cost mode that is measuring the right-of-use assets by deducting the accrued

depreciation amount and accrued impairment loss from the cost. Where the Company remeasures the lease

liabilities according to relevant provisions of the lease criterion the book value of the use-of-right asset

shall be adjusted correspondingly.Depreciation of right-of-use assets

On the commencement date of the lease term the provision for depreciation shall be made by the

Company to the right-of-use assets. Generally the depreciation amount of the use-of-right assets is accrued

from the month when the lease term starts. The accrued depreciation amount shall be recognized as the

cost of relevant assets or current profit or loss according to the purpose of the right-of-use assets.When determining the depreciation method of right-of-use asset the Company shall make decisions

according to the expected consumption method of the economic benefits related to the right-of-use asset

and accrue depreciation to the right-of-use asset with the linear method.When determining the depreciation years of the right-of-use asset the Company shall follow the

principles below: if the Company can reasonably determine that the ownership of the leased asset is

acquired at the expiration of the lease term depreciation shall be accrued within the remaining service life

of the leased asset. Where it is not reasonably certain that the ownership of the lease assets can be obtained

upon expiry of lease term the lease assets shall be depreciated over the shorter of the lease term and the

remaining service life of the lease assets.Impairment of right-of-use assets

In case of impairment of use-of-right asset the Company shall make subsequent depreciation as per

the book value of use-of-right asset after the impairment loss is deducted.

2. Goodwill

Goodwill refers to the excess of the cost of an equity investment or the cost of a business merger not

under common control over the fair value of the identifiable net assets acquired from the investee or the

acquiree as of the acquisition date or purchase date.

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Goodwill related to subsidiaries is separately presented in the consolidated financial statements while

goodwill related to associates and joint ventures is included in the carrying amount of long-term equity

investments.For goodwill arising from business mergers the Company allocates its carrying amount to the

relevant asset groups in a reasonable manner from the acquisition date. If it is difficult to allocate goodwill

to the relevant asset groups it is allocated to the relevant group of asset groups. When conducting

impairment tests on asset groups or combinations of asset groups that include goodwill if there are

indications of impairment related to the asset group or combination of asset groups with goodwill firstly

conducting impairment tests on the asset group or combination of asset groups without goodwill

calculating the recoverable amount and comparing it with the carrying amount to determine the

corresponding impairment loss. Then conducting impairment tests on the asset group or combination of

asset groups with goodwill comparing the carrying amount with the recoverable amount and if the

recoverable amount is lower than the carrying amount the impairment loss amount is firstly offset against

the carrying amount of goodwill in the asset group or combination of asset groups and then proportionally

offset against the carrying amount of other assets in the asset group or combination of asset groups

excluding goodwill based on the proportion of their carrying amounts.

3. Lease liabilities

(1) Initial measurement

The Company shall initially measure the lease liabilities according to the present value of the lease

payment unpaid on the commencement date of the lease term.

1) Lease payment

The lease payment refers to the payment made by the Company to the leaser as for the right of use the

leased assets during the lease term including: 1) fixed payment and practical fixed payment with relevant

lease incentive (if any) deducted; 2) variable lease payments that are based on an index or rate which shall

be determined at the time of initial measurement based on the index or rate on the commencement date of

the lease term; 3) the exercise price of a purchase option if the Company is reasonably certain to exercise

that option; 4) the amount payable for exercising the option to terminate the lease if the Company intends

to exercise the option to terminate the lease during the lease term; 5)expected payable amount based on

secured residual value provided by the Company.

2) Discount rate

In calculating the present value of the lease payments the Company adopts the interest rate embedded

in the lease as the discount rate. The rate is the interest rate that equates the sum of present value of the

lessor's lease receipts and the present value of the unsecured residual value to the sum of the fair value of

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the leased asset and the lessor's initial direct costs. If the Company is unable to determine the interest rate

embedded in the lease it will adopt the incremental borrowing rate as the discount rate. The incremental

loan interest rate is defined as the interest rate that the Company would have to pay to borrow for a term

similar to the duration of the lease and with similar security the funds necessary to obtain an asset of

similar value to the asset by right of use in a similar economic environment. The interest rate is related to

the following matters: 1) the Company's own situation including the debt repayment ability and credit

status of the Group; 2) the term of the "loan" i.e. the lease term; 3) the amount of "borrowed" funds i.e.the amount of lease liabilities; 4) the "mortgage conditions" i.e. the nature and quality of the underlying

assets; 5) the economic environment including the jurisdiction where the lessee is located the valuation

currency and the contract signing time. The incremental borrowing rate is determined by considering the

above factors and adjusting the bank loan interest rate which is as a basis.

(2) Subsequent measurement

When the lease term commences the Company shall make subsequent measurement for the lease

liabilities on the basis of principles below: 1) the carrying account of increased lease liabilities when the

interests of lease liabilities are recognized; 2) the carrying account of decreased lease liabilities when the

lease payment is made; 3) the book value of remeasured lease liabilities when the lease payment is

changed due to revaluation lease change or other reasons.The interest expenses of lease liabilities in each period of the lease term are calculated in accordance

with the fixed periodic interest rate and are included in the current profit or loss unless capitalization is

required. The periodic interest rate refers to the discount rate taken by the Company for initial

measurement or the revised discount rate taken by the Company when it is necessary to remeasure the

lease liabilities as per the revised discount rate due to lease payment change or lease change.

(3) Re-measurement

After the commencement date of the lease term the Company remeasures the lease liabilities at the

present value of the revised lease payments and adjusts the book value of the right-of-use asset accordingly

if any of the following occurs. If the book value of the right-to-use assets has been reduced to zero but the

lease liabilities still need to be further reduced the Company shall include the remaining amount in the

profits and losses of the current period. 1) Substantial fixed payment amount changes (in this case the

original discount rate is used for discounting); 2) changes in the estimated payable amount of the secured

residual value (in this case the original discount rate is used for discounting); 3) changes in the index or

ratio used to determine lease payments (in this case the revised discount rate is used for discounting); 4)

changes in the evaluation results of purchase option (in this case the revised discount rate is used for

discounting); 5) changes in the evaluation results or actual exercise of renewal option or option to

terminate the lease (in this case the revised discount rate is used for discounting).

4. Termination of operation

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Termination of operation refers to a separately identifiable component of the Company that meets any

of the following criteria and has either been disposed of or classified as held for sale: 1) the component

represents a separate major line of business or a separate geographical area of operations; 2) the

component is part of a single coordinated plan to dispose of a separate major line of business or a separate

geographical area of operations; 3) the component is a subsidiary acquired exclusively with a view to

resale.In the income statement the Company has added the items "net profit from continuing operations"

and "net profit from discontinued operations" under the "net profit" item in the income statement to reflect

the post-tax amounts of continuing-operations-related gains and losses and termination-of-operation-

related gains and losses respectively. Termination-of-operation-related gains and losses shall be presented

as "gains and losses from termination of operation" and the termination of operation gains and losses

should be presented for the entire reporting period not only for the reporting period following the

recognition as termination of operation.VI. Taxation

1. Main tax categories and tax rates

Category Tax base Tax rate

Added-value tax Income from sales of goods 13%

Income from provision of technical

Added-value tax 6%

services

Added-value tax Rental income 5%

City maintenance and construction tax Turnover tax payable 7%

Corporate income tax Taxable income 15% 25% 20%

Education surcharge Turnover tax payable 3%

Local education surcharge Turnover tax payable 2%

House tax 70% of the original value of the house 1.2%

House tax Rental income 12%

Land use tax Total land area RMB 5-10/m2

Disclosure of taxpayers with different corporate income tax rates

Name of taxpayer Income tax rate

Hangzhou Robam Appliances Co. Ltd. 15%

Shengzhou Kinde Intelligent Kitchen Appliance Co. Ltd. 15%

Zhejiang Cookingfuture Technology Co. Ltd. 15%

Beijing Robam Appliances Sales Co. Ltd. 25%

Shanghai Robam Appliances Sales Co. Ltd. 25%

Hangzhou MingQi Electric Co. Ltd. 25%

De Dietrich Household Appliances Trading (Shanghai) Co.

25%

Ltd.Hangzhou Robam Fuchuang Investment Management Co. Ltd. 20%

Hangzhou Jinhe Electric Appliances Co. Ltd. 25%

Robam Appliances Holding (HK) Co. Ltd.*1 Two-tiered tax system

Robam International (HK) Trading Co. Ltd.*1 Two-tiered tax system

Chengdu Robam Innovation Technology Co. Ltd. 20%

Robam Appliances U.S. Holding Co. Ltd.*2 State tax federal tax

Robam Appliances Los Angeles Trade Co. Ltd.*2 State tax federal tax

108Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

*1: The Company's subsidiaries Robam Appliances Holding (HK) Co. Ltd. and Robam International (HK) Trading Co. Ltd. are

subject to the Hong Kong Profits Tax regime. Under the two-tiered tax system taxable profits up to HKD 2000000 are subject to

a tax rate of 8.25% while the portion of taxable profits exceeding HKD 2000000 is taxed at a rate of 16.50%.*2: Federal tax: at a uniform rate of 21%; State tax: levied based on the tax rate required by the tax laws of the state where the

entity is registered.

2. Preferential tax policy

Preferential income tax policy

The Company obtained the Certificate of High-Tech Enterprise (Certificate No.: GR202333003384)

jointly issued by Department of Science and Technology of Zhejiang Province Zhejiang Provincial

Department of Finance Zhejiang Provincial Tax Service State Taxation Administration on December 8

2023. The certificate is valid for 3 years. According to the relevant provisions after being identified as a

high-tech enterprise the Company will enjoy the relevant preferential policies of the state on high-tech

enterprises for three consecutive years (i.e. the Company is entitled to the preferential income tax policy

from January 01 2023 to December 31 2025) and the corporate income tax shall be levied at the rate of

15%.

The subsidiary of the Company Shengzhou Kinde Intelligent Kitchen Appliances Co. Ltd.(hereinafter referred to as Shengzhou Kinde) obtained the Certificate of High-tech Enterprise (Certificate

No.: GR202233010421) jointly issued by Department of Science and Technology of Zhejiang Province

Zhejiang Provincial Department of Finance and Zhejiang Provincial Tax Service State Taxation

Administration on December 24 2022. After the recognition it will enjoy the preferential tax policy of the

state on high-tech enterprises for three consecutive years (i.e. it is entitled to the preferential income tax

policy from January 1 2022 to December 31 2024) and its corporate income tax shall be levied at the tax

rate of 15%.According to the Announcement No. 12 [2023] of the Ministry of Finance and the State Taxation

Administration Announcement on the Relevant Tax and Fee Policies for Further Supporting the

Development of Micro and Small Enterprises and Individual Industrial and Commercial Households

Hangzhou Robam Fuchuang Investment Management Co. Ltd. and Chengdu Robam Innovation

Technology Co. Ltd. subsidiaries of the Company as small and micro enterprises are allowed to

calculate their taxable income at a reduced rate of 25% of the regular amount and pay corporate income

tax at a rate of 20%. This policy will be in effect until December 31 2027.Preferential VAT policy

According to the Notice on Value-Added Tax Policies for Software Products Issued by the Ministry

of Finance and the State Taxation Administration (CS [2011] No. 100) the Company's sales of embedded

software products are eligible for immediate VAT refund after collection.

109Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

According to the Announcement No. 43 of 2023 issued by the Ministry of Finance and the State

Administration of Taxation Notice of the Additional Value-Added Tax Credit Policy for Advanced

Manufacturing Enterprises the Company will enjoy the policy of incremental deduction of 5% of the

payable value-added tax amount by advanced manufacturing enterprises based on the deductible input tax

amount for the period from January 1 2023 to December 31 2027.VII. Notes to items in the consolidated financial statements

1. Cash and cash equivalents

In RMB

Item Ending balance Beginning balance

Cash in hand 232660.84 62267.64

Deposit in bank 1015800859.35 1877703911.46

Other cash and cash equivalents 131804211.57 107284566.01

Total 1147837731.76 1985050745.11

Including: total amount of funds

7987864.363588900.00

deposited overseas

Other description

Note: The other cash and cash equivalents are RMB 131804211.57 including the L/G margin of

RMB 89105875.26 the bill acceptance margin of RMB 41826555.86 and the ETC margin of RMB

16000.00 the use of which are limited; and the Alipay and WeChat wallet balance is RMB 855780.45

which can be withdrawn without any limit at any time.Use of restricted cash and cash equivalents

Item Ending balance Beginning balance

L/G margin 89105875.26 83153343.90

Bill acceptance margin 41826555.86 23717043.12

ETC security deposits 16000.00 14000.00

Total 130948431.12 106884387.02

2. Financial assets held for trading

In RMB

Item Ending balance Beginning balance

Financial assets measured at fair value

with changes included into current profit 2551000029.50 2730000000.00

or loss

Including:

financial products 2551000029.50 2730000000.00

Total 2551000029.50 2730000000.00

110Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

3.Notes receivable

(1) Classified presentation of notes receivable

In RMB

Item Ending balance Beginning balance

Banker’s acceptance 365685088.75 690184154.22

Trade acceptance 3113544.92 6100777.42

Total 368798633.67 696284931.64

(2) Classification of disclosure according to the bad debt provision method

In RMB

Ending balance Beginning balance

Bad debt

Book balance Book balance Bad debt provision

provision

Type Perce PerceBook Book

ntage ntage

Percenta value Percenta value

Amount Amount of Amount Amount of

ge (%) ge (%)

provis provis

ion ion

Including:

Notes receivable

368962501638700.0436879869660602321093.696284

with a collective bad 100.00% 100.00% 0.05%

4.45.78%633.675.2056931.64

debt

Including:

3656850836568569018415690184

Banker’s acceptance 99.11% 99.08%

8.75088.754.22154.22

3277415.71638705.003113546421870.321093.610077

Trade acceptance 0.89% 0.92% 5.00%

0.78%4.9298567.42

368962501638700.0436879869660602321093.696284

Total 100.00% 100.00% 0.05%

4.45.78%633.675.2056931.64

Collective bad debt provision:

In RMB

Ending balance

Name

Book balance Bad debt provision Percentage of provision

Banker’s acceptances

365685088.75

combined

Trade acceptances combined 3277415.70 163870.78 5.00%

Total 368962504.45 163870.78

If provision for bad debts of notes receivable is made according to the general model of expected credit loss:

□Applicable □Not applicable

(3) Bad debt provision and its recovery or reversal in the current period

Provision for bad debts in the current period:

In RMB

111Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Amount of change in the current period

Beginning

Type

balance Recovery or

Ending balance

Provision Write-off Others

reversal

Banker’s

acceptance

Trade

321093.56-157222.78163870.78

acceptance

Total 321093.56 -157222.78 163870.78

Significant recoveries or reversals of provisions for bad debts during the reporting period:

□Applicable □Not applicable

(4) Notes receivable pledged by the Company at the end of the period

There were no notes receivable that had been pledged at the end of the period.

(5) Notes receivable that has been endorsed or discounted by the Company and not due on the balance

sheet date at the end of the period

There were no notes receivable that had been endorsed or discounted by the Company and not due on the

balance sheet date at the end of the period.

(6) Notes receivable actually written off in the current period

Notes receivable not written off during the period

4. Accounts receivable

(1) Disclosure by aging of accounts

In RMB

Initial book balance at the beginning of

Age Book balance at the end of the period

the period

Within 1 year (including 1 year) 1462399608.56 1557020494.66

1-2 years 532439823.04 541557234.61

2-3 years 776505528.84 886738162.41

More than 3 years 313142753.37 48881334.70

3-4 years 297700654.57 35197495.87

4-5 years 6255952.06 6690817.20

More than 5 years 9186146.74 6993021.63

Total 3084487713.81 3034197226.38

(2) Classification of disclosure according to the bad debt provision method

In RMB

Ending balance Beginning balance

Type

Book balance Bad debt Book Book balance Bad debt provision Book

112Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

provision value value

Perce Perce

ntage ntage

Percent Amoun Percenta

Amount of Amount Amount of

age (%) t ge (%)

provis provis

ion ion

Accounts receivable 11156

1630116068.4451449361645394113173468.78513660

with individual bad 52.85% 22444. 54.23%

79.65%35.30906.63880.57%026.06

debt provisions 35

Including:

Accounts receivable 10573

145437167.271348637138880292446749129635

with a collective bad 47.15% 4341.5 45.77% 6.66%

34.16%292.59319.75.485570.27

debt provision 7

Including:

10573

145437167.271348637138880292446749129635

Aging combination 47.15% 4341.5 45.77% 6.66%

34.16%292.59319.75.485570.27

7

12213

30844877100.0039.6018631303034197100.00122418140.35181001

Total 56785.

13.81%%927.89226.38%630.05%5596.33

92

Individual bad debt provision:

In RMB

Beginning balance Ending balance

Percentage

Name Reasons for

Book balance Bad debt provision Book balance Bad debt provision of

provision

provision

Expected to be

Unit 1 660039726.23 660039726.23 658945936.78 658945936.78 100.00%

difficult to recover

Expected to be

Unit 2 388093418.16 116428025.44 355627952.88 106688385.87 30.00% difficult to fully

recover

Expected to be

Unit 3 201626455.66 86259958.01 241053412.05 105439212.29 43.74% difficult to fully

recover

Expected to be

Unit 4 103644563.87 62549255.29 95720766.37 61418433.11 64.16% difficult to fully

recover

Expected to be

Unit 5 78105963.23 78105963.23 78105963.23 78105963.23 100.00%

difficult to recover

Expected to be

Unit 6 29833027.36 20883119.15 27931724.10 14952948.85 53.53% difficult to fully

recover

Expected to be

Unit 7 28796628.81 12808177.77 28769213.01 10387277.95 36.11% difficult to fully

recover

Expected to be

Unit 8 25826189.64 17748183.70 23326159.14 14689394.40 62.97% difficult to fully

recover

Expected to be

Unit 9 22983529.61 15004193.26 21737772.41 10699859.15 49.22% difficult to fully

recover

Expected to be

Unit 10 15100611.29 8471506.90 15028917.55 8113002.52 53.98%

difficult to fully

113Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

recover

Expected to be

Unit 11 13643117.43 7265607.25 13818085.83 7388085.13 53.47% difficult to fully

recover

Expected to be

Unit 12 11403482.66 6897017.86 9080624.77 5372708.62 59.17% difficult to fully

recover

Expected to be

Unit 13 9391156.30 4698425.06 8175161.48 3847228.69 47.06% difficult to fully

recover

Expected to be

Unit 14 8175007.62 3440071.29 8175007.62 3440071.29 42.08% difficult to fully

recover

Expected to be

Unit 15 7305800.75 5114060.53 7151711.18 2896821.17 40.51% difficult to fully

recover

Expected to be

Unit 16 3921670.93 2745169.65 5133382.93 3593368.05 70.00% difficult to fully

recover

Expected to be

Unit 17 3616362.19 2531453.53 3616362.19 2531453.53 70.00% difficult to fully

recover

Expected to be

Unit 18 3317253.79 1554840.55 3584790.07 1672115.95 46.64% difficult to fully

recover

Expected to be

Unit 19 3310609.08 1715551.82 3519010.46 1829963.77 52.00% difficult to fully

recover

Expected to be

Unit 20 3056422.32 1145907.85 1746554.15 1222587.91 70.00% difficult to fully

recover

Expected to be

Other

24203909.70 16328666.20 19867571.45 12387626.09 62.35% difficult to fully

Subtotal

recover

Total 1645394906.63 1131734880.57 1630116079.65 1115622444.35

Collective bad debt provision:

In RMB

Ending balance

Name

Book balance Bad debt provision Percentage of provision

With 1 year 1200759895.28 60037995.28 5.00%

1-2 years 167397237.66 16739723.77 10.00%

2-3 years 58742354.68 11748470.94 20.00%

3-4 years 19180194.20 9590097.10 50.00%

4-53369489.282695591.4280.00%

More than 5 years 4922463.06 4922463.06 100.00%

Total 1454371634.16 105734341.57

If provision for bad debts of accounts receivable is made according to the general model of expected credit loss:

□Applicable □Not applicable

(3) Bad debt provision and its recovery or reversal in the current period

Provision for bad debts in the current period:

114Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

In RMB

Amount of change in the current period

Type Beginning balance Recovery or Othe Ending balance

Provision Write-off

reversal rs

Bad debt reserves

for accounts 1224181630.05 75957015.33 76760426.90 2021432.56 1221356785.92

receivable

Total 1224181630.05 75957015.33 76760426.90 2021432.56 1221356785.92

Significant recoveries or reversals of provisions for bad debts during the reporting period:

In RMB

Basis and rationality of

Amount of recovery or determining the original

Unit Reason for reversal Recovery method

reversal provision ratio for bad

debts

Unit 1 35932304.06 Bank transfers offsets

Bank transfers house

Unit 2 12943912.34

mortgage

Bank transfers house

Unit 3 8367635.05

mortgage

Bank transfers house

Unit 4 2911247.95

mortgage

Bank transfers house

Unit 5 2884489.50

mortgage

Bank transfers house

Unit 6 2502618.17

mortgage

Bank transfers house

Unit 7 2131401.24

mortgage

Bank transfers house

Unit 8 1982739.60

mortgage

Bank transfers house

Unit 9 1032855.13

mortgage

Bank transfers house

Unit 10 912030.00

mortgage

Bank transfers house

Unit 11 881524.45

mortgage

Bank transfers house

Unit 12 853100.00

mortgage

Bank transfers house

Unit 13 825000.00

mortgage

Bank transfers house

Unit 14 675000.00

mortgage

Bank transfers house

Unit 15 673076.70

mortgage

Bank transfers house

Unit 16 552430.80

mortgage

Bank transfers house

Others 699061.91

mortgage

Total 76760426.90

115Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(4) Accounts receivable actually written off in the current period

In RMB

Item Amounts written off

Accounts receivable actually written off 2021432.56

Important accounts receivable write-offs:

In RMB

Whether the

Write-off

Nature of accounts Amounts written Reason for write- amount arises from

Unit procedures

receivable off offs an associated

performed

transaction

Expected to be Management

Unit 1 Payment for goods 881524.45 No

irrecoverable approval

Expected to be Management

Unit 2 Payment for goods 266206.00 No

irrecoverable approval

Expected to be Management

Unit 3 Payment for goods 260915.00 No

irrecoverable approval

Expected to be Management

Unit 4 Payment for goods 116277.00 No

irrecoverable approval

Expected to be Management

Unit 5 Payment for goods 85625.00 No

irrecoverable approval

Expected to be Management

Other Subtotal Payment for goods 410885.11 No

irrecoverable approval

Total 2021432.56

(4) Top five debtors with the largest ending balances of accounts receivable and contract assets

In RMB

Proportion in the Ending balance of

total ending provision for bad

Ending balance of

Ending balance of Ending balance of balance of debts on accounts

Unit accounts receivable

accounts receivable contract assets accounts receivable and

and contract assets

receivable and impairment of

contract assets contract assets

Unit 1 658945936.78 658945936.78 21.36% 658945936.78

Unit 2 369680570.71 369680570.71 11.99% 18820983.95

Unit 3 355627952.88 355627952.88 11.53% 106688385.87

Unit 4 241053412.05 241053412.05 7.82% 105439212.29

Unit 5 95720766.37 95720766.37 3.10% 61418433.11

Total 1721028638.79 1721028638.79 55.80% 951312952.00

5. Other receivables

In RMB

Item Ending balance Beginning balance

Other receivables 86770440.47 53368667.34

Total 86770440.47 53368667.34

116Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(1) Other accounts receivable

1) Classification of other accounts receivable by nature

In RMB

Initial book balance at the beginning of

Nature of receivable Book balance at the end of the period

the period

Collections by a third party 53190022.42 26915796.30

Security/guarantee deposits 29988281.52 35077788.86

Withholdings 7399959.90 4274188.53

Cash reserve 5767293.12 2365967.91

Others 3641166.66 330098.34

Proxy holding of properties exchanged

2094110.002094110.00

for construction services

Total 102080833.62 71057949.94

2) Disclosure by aging of accounts

In RMB

Initial book balance at the beginning of

Age Book balance at the end of the period

the period

Within 1 year (including 1 year) 78596608.94 42909446.18

1-2 years 5385201.70 6665944.46

2-3 years 6660645.01 6322210.28

More than 3 years 11438377.97 15160349.02

3-4 years 4278724.05 3591477.42

4-5 years 2140747.12 2146271.80

More than 5 years 5018906.80 9422599.80

Total 102080833.62 71057949.94

3) Classification of disclosure according to the bad debt provision method

□Applicable □Not applicable

In RMB

Ending balance Beginning balance

Book balance Bad debt provision Book balance Bad debt provision

Type

Percentag Book Percent Percentag Book

Percent

Amount Amount e of value Amount age Amount e of value

age (%)

provision (%) provision

Provision for

224231881138.51361171.2362320945141.5141717

bad debts by 2.20% 39.30% 3.32% 40.01%

0.00050.0008.50

individual item

Including:

Collective bad 998385 1442925 8540926 6869562 96.68 1674414 519514

97.80%14.45%24.37%

debt provision 23.62 4.65 8.97 9.94 % 1.10 88.84

Including:

Aging 998385 1442925 8540926 6869562 96.68 1674414 519514

97.80%14.45%24.37%

combination 23.62 4.65 8.97 9.94 % 1.10 88.84

117Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

102080100.00153103986770447105794100.001768928533686

Total 15.00% 24.89%

833.62%3.150.479.94%2.6067.34

Individual bad debt provision:

In RMB

Beginning balance Ending balance

Name Percentage Bad debt Bad debt Reasons for

Book balance Book balance of

provision provision provision

provision

Expected

Unit 1 800000.00 280000.00 800000.00 280000.00 35.00%

impairment

657783.00 230224.05 Expected

Unit 2 657783.00 230224.05 35.00%

impairment

636327.00 222714.45 Expected

Unit 3 636327.00 222714.45 35.00%

impairment

103000.00 103000.00 Expected to be

Unit 4 103000.00 103000.00 100.00%

difficult to recover

45200.00 45200.00 Expected to be

Unit 5 45200.00 45200.00 100.00%

difficult to recover

50010.00 15003.00 Expected to be

Unit 6 difficult to fully

recover

30000.00 9000.00 Expected to be

Unit 7 difficult to fully

recover

20000.00 20000.00 Expected to be

Unit 8

difficult to recover

10000.00 10000.00 Expected to be

Unit 9

difficult to recover

10000.00 10000.00 Expected to be

Unit 10

difficult to recover

Total 2362320.00 945141.50 2242310.00 881138.50

Collective bad debt provision:

In RMB

Ending balance

Name

Book balance Bad debt provision Percentage of provision

Less than 1 year (including 1

76646218.803832310.945.00%

year)

1-2 years 5241481.84 524148.18 10.00%

2-3 years 6650645.01 1330129.00 20.00%

3-4 years 4258724.05 2129362.03 50.00%

4-5 years 2140747.12 1712597.70 80.00%

More than 5 years 4900706.80 4900706.80 100.00%

Total 99838523.62 14429254.65

Provision for bad debts according to the general model of expected credit loss:

In RMB

Phase I Phase II Phase III

Expected credit loss over

Bad debt provision Expected credit loss over Expected credit loss the entire duration Total

the entire duration (with

over the next 12 months (without credit

credit impairment)

impairment)

118Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Balance as of January

16744141.10756941.50188200.0017689282.60

012024

Balance on January 01

2024 in the current

period

Provision in the current

-2314886.45-24003.00-40000.00-2378889.45

period

Balance as of June 30

14429254.65732938.50148200.0015310393.15

2024

Changes in the book balance with significant change in amount of the loss provision in the current period

□Applicable □Not applicable

4) Bad debt provision and its recovery or reversal in the current period

Provision for bad debts in the current period:

In RMB

Amount of change in the current period

Beginning

Type

balance Recovery or

Ending balance

Provision Write-offs Others

reversal

Bad debt

provision for 17689282.60 -2378889.45 15310393.15

other receivables

Total 17689282.60 -2378889.45 15310393.15

5) Other receivables actually written off in the current period

There were no write-offs of other receivables in the current period.

6) Top five debtors with the largest ending balances of other accounts receivable

In RMB

Proportion in the

total ending balance Ending balance of

Unit Nature of receivable Ending balance Age

of other accounts bad debt provision

receivable

Collections by a third Less than 1

Unit 1 12986415.91 12.72% 649320.80

party year

Collections by a third Less than 1

Unit 2 6932252.09 6.79% 346612.60

party year

Collections by a third

Unit 3 3814069.40 0-3 years 3.74% 205506.54

party/deposits

Less than 1

Unit 4 Withholdings 3400882.31 3.33% 170044.12

year

Collections by a third Less than 1

Unit 5 2356041.47 2.31% 117802.07

party year

Total 29489661.18 28.89% 1489286.13

119Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

6. Advance payments

(1) Advance payments presented by age

In RMB

Ending balance Beginning balance

Age

Amount Percentage (%) Amount Percentage (%)

With 1 year 175307498.53 94.42% 136637538.73 97.80%

1-2 years 9650179.69 5.20% 3055581.83 2.19%

2-3 years 707592.39 0.38% 15823.01 0.01%

More than 3 years 16943.31 0.01% 4528.01

Total 185682213.92 139713471.58

(2) Top five payers with the largest ending balances of advance payments

The ending balances of advance payments of the top five payers by the end of the current period

totaled RMB 92636335.39 accounting for 49.89% of the total.

7.Inventory

(1) Classification of inventories

In RMB

Ending balance Beginning balance

Provision for Provision for

obsolete obsolete

Item inventory or for inventory or for

Book balance Book value Book balance Book value

impairment of the impairment of the

cost of contract cost of contract

performance performance

Raw materials 69012023.09 69012023.09 81308915.01 81308915.01

Products in

98458434.2498458434.2498820705.8698820705.86

process

Merchandise

462714144.5033542900.56429171243.94434195084.1833339505.13400855579.05

inventory

Contract

performance 36902912.37 36902912.37 35371916.75 35371916.75

costs

Goods shipped in

761454013.1930351019.85731102993.34891904804.3230351019.85861553784.47

transit

Low-cost

consumables and 34422631.68 34422631.68 46363819.10 46363819.10

packing materials

Total 1462964159.07 63893920.41 1399070238.66 1587965245.22 63690524.98 1524274720.24

120Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(2) Provision for obsolete inventory or for impairment of the cost of contract performance

In RMB

Increased amount in the current Decreased amount in the current

Beginning period period

Item Ending balance

balance Reversals or

Provision Others Others

write-off

Merchandise

33339505.13203395.4333542900.56

inventory

Goods shipped

30351019.8530351019.85

in transit

Total 63690524.98 203395.43 63893920.41

8.Other current assets

In RMB

Item Ending balance Beginning balance

Fixed-term deposit within 1 year 1444141200.00 2563744300.00

Accrued interest on fixed deposits 101238591.00 81146657.65

Prepaid taxes 2586213.00 2917663.05

Input tax to be deducted 642072.94

Total 1548608076.94 2647808620.70

9. Other equity instrument investments

In RMB

Gains Reason for

Gains Loss recogniz being

recognize recognize ed in designated to

Recogniz

d in other d in other other Loss recognized be measured

ed

comprehe compreh compreh in other by fair value

Beginning dividends

Project nsive ensive ensive comprehensive Ending balance and the

balance income

income income income income at the change being

in the

for the for the at the end of the period recorded in

period

current current end of other

period period the comprehensiv

period e income

Suzhou

Industrial Park

Ruican

Investment 100000000.00

Enterprise

(Limited

Partnership)

Shanghai

MXCHIP

Information 2116023.22 17832510.78 2116023.22

Technology Co.Ltd.Total 2116023.22 117832510.78 2116023.22

Disclosure of non-tradable equity instrument investment by item in the current period

121Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

In RMB

Reason for being

Amount Reason for the

designated to be

transferred transfer of

measured by fair

Recognized from other other

Accumulated Accumulated value and the

Project dividends comprehensive comprehensiv

gains losses change being

income incomes to e incomes to

recorded in other

retained retained

comprehensive

earnings earnings

income

Suzhou Industrial

Park Ruican

Investment

100000000.00

Enterprise

(Limited

Partnership)

Shanghai

MXCHIP

Information 17832510.78

Technology Co.Ltd.

10. Long-term equity investment

In RMB

Increase/decrease in the current period

Investm

Beginni

ent Cash Ending

ng Adjust

Beginni profit dividen balance

balance ment of Ending

ng Additio Negativ or loss Other ds or Impair of

Investe of other balance

balance nal e recogni changes profits ment impaire impair compre Others （book(book investm investm zed in declare provisio ment

ment hensive value)

value) ent ent using equity d and n provisio

provisio income

the distribu n

n s

equity ted

method

I. Joint venture

De

Dietrich

Trade -

4321710975

(Shang 32241

29.3975.77

hai) 53.62

Co.Ltd.-

Sub-tot 43217 10975

32241

al 29.39 75.77

53.62

II. Associated companies

Zhejian

g

Tingshu -

639942602528

o Brand 37414..64.31

Operati 33

on

Manage

122Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

ment

Co.Ltd.Shaoxin

g

Shuaige

Kitchen

and -

3465732788

Bathroo 186945

78.2132.23

m .98

Technol

ogy

Co.Ltd.-

Sub-tot 41057 38813

224360

al 20.85 60.54.31

-

8427449789

Total 34485

50.2436.31

13.93

Recoverable amount is determined as fair value less costs of disposal

□Applicable □Not applicable

The recoverable amount is determined as the present value of the expected future cash flows

□Applicable □Not applicable

11. Other non-current financial assets

In RMB

Item Ending balance Beginning balance

Classification of financial assets

measured at fair value with changes

included into current profit or loss

Including: financial products 580000000.00 480000000.00

Total 580000000.00 480000000.00

12. Investment real estate

(1) Investment real estate under the cost measurement mode

□Applicable □Not applicable

In RMB

Item Buildings Land use right Total

I. Original book value

1. Beginning balance 103152708.29 1062744.00 104215452.29

2. Increased amount in the

4399856.674399856.67

current period

(1) Outsourcing

(2) Transfer from

inventories/fixed 4399856.67 4399856.67

assets/construction in progress

123Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(3) Increased amount

in business merger

3. Decreased amount in

4534277.734534277.73

the current period

(1) Disposal

(2) Other transfer-out 4534277.73 4534277.73

4. Ending balance 103018287.23 1062744.00 104081031.23

II Accumulated depreciation

and amortization

1. Beginning balance 12726143.22 352476.76 13078619.98

2. Increased amount in the

2596658.5410627.442607285.98

current period

(1) Accrual or

2596658.5410627.442607285.98

amortization

3. Decreased amount in

658922.72658922.72

the current period

(1) Disposal

(2) Other transfer-out 658922.72 658922.72

4. Ending balance 14663879.04 363104.20 15026983.24

III. Impairment provision

1. Beginning balance

2. Increased amount in the

1539949.831539949.83

current period

(1) Provision

3. Decreased amount in

the current period

(1) Disposal

(2) Other transfer-out

4. Ending balance 1539949.83 1539949.83

IV. Book value

1. Ending book value 86814458.36 699639.80 87514098.16

2. Beginning book value 90426565.07 710267.24 91136832.31

*1. The increase in investment properties is primarily due to the Company's rental of properties to external parties.*2. The other transfers out of investment properties are due to the Company reclaiming rental properties for its own use.Recoverable amount is determined as fair value less costs of disposal

□Applicable □Not applicable

The recoverable amount is determined as the present value of the expected future cash flows

□Applicable □Not applicable

124Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(2) Investment real estate under the fair value measurement mode

□Applicable □Not applicable

13. Fixed assets

In RMB

Item Ending balance Beginning balance

Fixed assets 1664948226.73 1720724257.46

Total 1664948226.73 1720724257.46

(1) Fixed assets

In RMB

Houses and Machine and Transportation

Item Other equipment Total

buildings equipment equipment

I. Original book

value

1. Beginning

1653353641.45846881737.3323053141.13137921680.502661210200.41

balance

2. Increased

amount in the 14704252.73 13279837.52 5162697.74 2120048.00 35266835.99

current period

(1)

10169975.00819770.385162697.74396063.8116548506.93

Purchase

(2)

Transfer from

12460067.141723984.1914184051.33

construction in

progress

(3)

Increased amount

in business merger

(4) Other increases 4534277.73 4534277.73

3. Decreased

amount in the 4399856.67 1101406.85 5120580.61 634237.65 11256081.78

current period

(1)

Disposal or 1101406.85 5120580.61 634237.65 6856225.11

retirement

(2) Other

4399856.674399856.67

decreases

4. Ending

1663658037.51859060168.0023095258.26139407490.852685220954.62

balance

II. Accumulated

depreciation

1. Beginning

392725389.84456059295.6415068321.3876632936.09940485942.95

balance

2. Increased

amount in the 39207504.03 32546499.74 866381.60 8537015.65 81157401.02

current period

125Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(1)

38548581.3132546499.74866381.608537015.6580498478.30

Provision

(2) Other increases 658922.72 658922.72

3. Decreased

amount in the 838216.14 532399.94 1370616.08

current period

(1)

Disposal or 838216.14 532399.94 1370616.08

retirement

4. Ending

431932893.87487767579.2415934702.9884637551.801020272727.89

balance

III. Impairment

provision

1. Beginning

balance

2. Increased

amount in the

current period

(1)

Provision

3. Decreased

amount in the

current period

(1)

Disposal or

retirement

4. Ending

balance

IV. Book value

1. Ending

1231725143.64371292588.767160555.2854769939.051664948226.73

book value

2. Beginning

1260628251.61390822441.697984819.7561288744.411720724257.46

book value

*Other increases and decreases during the period: For details please refer to Section VII. 12. of this report on investment real

estate".The Company has no fixed assets without completed property certificates.

14. Construction in process

In RMB

Item Ending balance Beginning balance

Construction in process 444829440.01 359768699.68

Total 444829440.01 359768699.68

126Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(1) Construction in progress

In RMB

Ending balance Beginning balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Robam

Mansion 435305853.75 435305853.75 336704853.10 336704853.10

project

Project of the

Fourth

3537257.113537257.1114080754.6914080754.69

Production

Department

Customized

management 2052830.20 2052830.20 3182235.79 3182235.79

software

Project of the

First

941946.89941946.89

Production

Department

Project of the

Third

1954867.321954867.32761150.44761150.44

Production

Department

Project of the

Second

336283.20336283.20130973.44130973.44

Production

Department

Other smaller

1642348.431642348.433966785.333966785.33

projects

Total 444829440.01 444829440.01 359768699.68 359768699.68

(2) Current changes in major projects under construction

In RMB

Amou Propor

Includi

nt tion of Accum Interes

ng:

Increas transfe Other accum ulated t

capital

Beginn ed rred decrea ulative amoun capital

Ending Project ized Fundin

ing amoun into ses in constr t of ization

Project Budget balanc progre interes g

balanc t in the fixed the uction capital rate in

e ss ts in source

e current assets current invest ized the

the

period in the period ment interes current

current

current in the t period

period

period budget

Robam

72475336709860143530

Mansi 60.06 Own

0000.4853.000.65853.

on % funds

0010575

project

72475336709860143530

Total 0000. 4853. 000.6 5853.

0010575

127Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(3) Impairment test of construction in progress

□Applicable □Not applicable

15. Right-of-use assets

(1) Right-of-use assets

In RMB

Item Houses and buildings Total

I. Original book value

1. Beginning balance 29457908.02 29457908.02

2. Increased amount in the current

period

3. Decreased amount in the current

period

4. Ending balance 29457908.02 29457908.02

II. Accumulated depreciation

1. Beginning balance 15655449.04 15655449.04

2. Increased amount in the current

2597529.362597529.36

period

(1) Provision 2597529.36 2597529.36

3. Decreased amount in the current

period

(1) Disposal

4. Ending balance 18252978.40 18252978.40

III. Impairment provision

1. Beginning balance

2. Increased amount in the current

period

(1) Provision

3. Decreased amount in the current

period

(1) Disposal

4. Ending balance

IV. Book value

1. Ending book value 11204929.62 11204929.62

2. Beginning book value 13802458.98 13802458.98

128Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

16. Intangible assets

(1) Intangible assets

In RMB

Item Land use right 3. Patent right Software Trademark Total

I. Original book

value

1.

Beginning 224593935.95 7300000.00 73208259.53 24624622.64 329726818.12

balance

2.

Increased

1637623.991637623.99

amount in the

current period

(1)

46017.7046017.70

Purchase

(2)

Internal

research and

development

(3)

Increased

amount in

business

merger

(4) Transfer

from

1591606.291591606.29

construction in

progress

3.

Decreased

6954634.606954634.60

amount in the

current period

(1)

6954634.606954634.60

Disposal

4. Ending

224593935.957300000.0067891248.9224624622.64324409807.51

balance

II.Accumulated

amortization

1.

Beginning 38853482.23 6176923.08 56614708.98 13527964.52 115173078.81

balance

2.

Increased

589224.92561538.464728036.521225000.007103799.90

amount in the

current period

(1)

589224.92561538.464728036.521225000.007103799.90

Provision

129Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

3.

Decreased

6907421.736907421.73

amount in the

current period

(1)

6907421.736907421.73

Disposal

4. Ending

39442707.156738461.5454435323.7714752964.52115369456.98

balance

III. Impairment

provision

1.

Beginning

balance

2.

Increased

amount in the

current period

(1)

Provision

3.

Decreased

amount in the

current period

(1)

Disposal

4. Ending

balance

IV. Book value

1. Ending

185151228.80561538.4613455925.159871658.12209040350.53

book value

2.

Beginning book 185740453.72 1123076.92 16593550.55 11096658.12 214553739.31

value

17. Goodwill

(1) Original book value of goodwill

In RMB

Increase in the Decrease in the

Name of investee or item that current period current period

Beginning balance Ending balance

generates goodwill Generated by

Disposal

business merger

Shengzhou Kinde Intelligent Kitchen

80589565.8480589565.84

Appliance Co. Ltd.Total 80589565.84 80589565.84

130Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(2) Goodwill impairment provision

In RMB

Increase in the Decrease in the

Name of investee or item that

Beginning balance current period current period Ending balance

generates goodwill

Provision Disposal

Shengzhou Kinde Intelligent Kitchen

68366294.1768366294.17

Appliance Co. Ltd.Total 68366294.17 68366294.17

Other description

The Company recognizes Shengzhou Kinde as an assets group. Goodwill at the end of this period is in the

same assets group as recognized upon goodwill impairment test at the date of purchase and in previous

year.

18. Long-term deferred expenses

In RMB

Increased amount Amount of

Item Beginning balance in the current amortization in the Other decreases Ending balance

period current period

Office decoration

2331161.64696402.851634758.79

expenses

Service fee 2083289.77 364591.22 976196.84 1471684.15

Consulting fee 267733.10 182010.92 85722.18

Advertisement

129216.10129216.100.00

expenses

Others 223258.76 4581.52 142354.70 85485.58

Total 5034659.37 369172.74 2126181.41 3277650.70

19. Deferred income tax asset/deferred income tax liability

(1) Deferred income tax assets before offset

In RMB

Ending balance Beginning balance

Item Deductible temporary Deductible temporary

Deferred tax assets: Deferred tax assets:

differences differences

Asset impairment

101443097.4015216464.6197315669.0614597350.36

provision

Unrealized profits of

6744863.041463620.57

internal transactions

Credit impairment

1222360955.60191133912.841228253675.11191913813.81

provision

Deferred income tax

assets before offset

recognized based on 994438099.33 149165714.90 744083389.27 111612508.39

the provisional

estimated expenses

Changes in the fair

117832510.8017674876.62117832510.8017674876.62

value of other equity

131Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

instrument investments

Deferred income tax

assets before offset

91396861.3313709529.20101473668.8715221050.33

recognized based on

the deferred income

Deferred income tax

assets before offset

18333587.922823026.469730756.231510663.99

recognized due to

equity incentive

Income that should be

recognized according

to tax laws but have 16597690.53 2489653.58 60810075.93 9121511.39

not been confirmed by

the accountant yet

Lease liabilities 1625756.28 406439.07 4984267.98 1246067.00

Total 2570773422.23 394083237.85 2364484013.25 362897841.89

(2) Deferred income tax liabilities before offset

In RMB

Ending balance Beginning balance

Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax

difference liabilities difference liabilities

Asset appraisal

appreciation arising

from business merger

where the acquired 15528850.80 2329327.62 17528191.69 2629228.75

company is not

controlled by the same

party after the merger

Right-of-use assets 3260199.24 815049.81 3260199.24 815049.81

Temporary taxable

difference incurred

104923491.6015738523.74112448544.2716867281.64

from pre-tax deduction

of fixed assets

Accrued interest on

72988481.4010948272.2254046698.738107004.81

fixed deposits

Total 196701023.04 29831173.39 187283633.93 28418565.01

(3) Deferred income tax assets or liabilities presented in net amount after offset

In RMB

Amount of deferred Initial amount of

Ending balance of Beginning balance of

income tax assets deferred income tax

deferred income tax deferred income tax

Item offset against deferred assets offset against

assets or liabilities after assets or liabilities after

income tax liabilities at deferred income tax

offset offset

the end of the period liabilities

Deferred tax assets: 394083237.85 362897841.89

Deferred income tax

29831173.3928418565.01

liabilities

132Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(4) Presentation of unrecognized deferred income tax assets

In RMB

Item Ending balance Beginning balance

Deductible temporary differences 15410458.85 13929952.65

Deductible tax losses 132223154.72 102787541.49

Total 147633613.57 116717494.14

(5) The deductible losses of unrecognized deferred income tax assets will be due in the following years

In RMB

Year Ending amount Beginning amount Remarks

2024 years 5602.28

20259556499.129556499.12

2026 years 10380561.57 10380561.57

2027 years 24349032.53 24349032.53

202858495845.9958495845.99

202929441215.51

Total 132223154.72 102787541.49

20 Other non-current assets

In RMB

Ending balance Beginning balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Fixed-term

deposit for 3240000000. 3240000000. 1770000000. 1770000000.more than 1 00 00 00 00

year

Properties

exchanged for

108252840.5137888494.1870364346.3397041317.9433964461.2863076856.66

construction

services *1

Prepayment for

87153575.8087153575.8076602510.2576602510.25

house purchase

Prepayments

for equipment 20550850.00 20550850.00 12455961.74 12455961.74

purchase

Prepayment for

194000.00194000.00194000.00194000.00

the project

3456151266.3418262772.1956293789.1922329328.

Total 37888494.18 33964461.28

31139365

Other description:

Properties exchanged for construction services: It refers to the properties and parking space that the

Company has signed a debt restructuring agreement at the end of the period and completed the procedures

for property transfer with a total value of RMB 108252800 and a provision for impairment of RMB

37888500. For details please refer to Section XVIII Other Important Matters 1 of this report on the

Company's debt restructuring matters.

133Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

21. Assets with limited ownership and right to use

In RMB

Ending of the period Beginning of the period

Restr

Item Type of Type of Restri

Book balance Book value ictio Book balance Book value

restriction restriction ctions

ns

Cash and

cash

89105875.26 89105875.26 L/G margin 83153343.90 83153343.90 L/G margin

equivalent

s

Cash and

Bill Bill

cash

41826555.86 41826555.86 acceptance 23717043.12 23717043.12 acceptance

equivalent

margin margin

s

Cash and

cash ETC security ETC security

16000.0016000.0014000.0014000.00

equivalent deposits deposits

s

Fixed Mortgage Mortgage

152993151.92135979588.89108455603.6099401869.39

assets loan loan

Intangible Mortgage Mortgage

34367725.0031222615.7028181534.5025884399.80

assets loan loan

Total 318309308.04 298150635.71 243521525.12 232170656.21

22. Short-term borrowings

(I)Short-term borrowing classification

In RMB

Item Ending balance Beginning balance

Mortgage loan 99000000.00 49500000.00

Credit borrowings 1500000.00 31500000.00

Accounts receivable factoring 14503320.70 14003320.70

Total 115003320.70 95003320.70

Description on the classification of short-term borrowings:

Credit loans refer to working capital loans obtained by the Company's subsidiary Cooking

Future (a subsidiary of Shengzhou Kinde) from the Shaoxing Shengzhou Small and Micro

Enterprise Branch of Zhejiang Tailong Commercial Bank Co. Ltd. The loan term is within one

year with an interest rate range of 3.25%-6.18%.Mortgage loans: On June 1 2023 the Company's subsidiary Shengzhou Kinde signed a

mortgage loan agreement with the Shaoxing Shengzhou Branch of Bank of Communications Co.Ltd. securing a credit limit of RMB 160 million with an interest rate ranging from 3.25% to

3.35%. The collateral for this loan is its Factory No. 1 building and the land located at 888 Ruanpeng Road

Shengzhou City with a combined net value of RMB 125 million. Additionally on October 7

2023 Shengzhou Kinde signed another mortgage loan agreement with China Minsheng Bank

134Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

obtaining a credit limit of RMB 50 million with an interest rate ranging from 3.25% to 3.6%. The

collateral for this loan is the office building and the land located at 888 Ruanpeng Road Shengzhou City

with a combined net value of RMB 35 million.

(2) Overdue Short-term Loans

The Company has no overdue short-term loans that have not been paid during the current period.

23. Notes payable

In RMB

Type Ending balance Beginning balance

Banker’s acceptance 993551028.00 1098720000.58

Total 993551028.00 1098720000.58

The total amount of notes payable that were due and unpaid at the end of the period was RMB 0.00.

24. Accounts payable

(1) Presentation of accounts payable

In RMB

Item Ending balance Beginning balance

Payment for expenses 1124456863.77 1107539973.00

Payment for materials 1087599114.60 1267081255.68

Payment for construction 159978831.67 164258188.72

Payment for equipment 11970618.74 9864344.66

Total 2384005428.78 2548743762.06

Other description:

As of June 30 2024 the balance of important accounts payable with an age of more than one year

totaled RMB 41508040.30 mainly involving the unsettled material payments and expenses.

25. Other payables

In RMB

Item Ending balance Beginning balance

Dividends payable 472047458.00

Other payables 290336577.77 283917461.76

Total 290336577.77 755964919.76

(1) Dividends payable

In RMB

Item Ending balance Beginning balance

Dividends for ordinary shares 472047458.00

Total 472047458.00

135Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

(2) Other payables

1) Other payables presented by nature

In RMB

Item Ending balance Beginning balance

Security deposits payable 277065066.91 266137376.14

Collections by a third party 6075517.10 4941205.70

Guarantee deposits payable 3093537.04 6600507.19

Others 4102456.72 6238372.73

Total 290336577.77 283917461.76

2) Important accounts payable with an age of more than one year

Other description

As of June 30 2024 the important accounts payable with an age of more than one year totaled RMB

217033999.07 mainly involving the sales deposits.

26. Contract liabilities

In RMB

Item Ending balance Beginning balance

Advances on sales 777554890.02 1019942923.58

Total 777554890.02 1019942923.58

27. Employee benefits payable

(1) Presentation of employee compensation payable

In RMB

Increase in the current Decrease in the current

Item Beginning balance Ending balance

period period

I. Short-term benefits 168988703.61 403243066.48 534995837.53 37235932.56

II. Post-employment

benefits defined 8822260.23 34004530.44 41030075.85 1796714.82

contribution plan

III. Termination

112078.17925131.621037209.79

benefits

Total 177923042.01 438172728.54 577063123.17 39032647.38

(2) Presentation of short-term employee compensation

In RMB

Increase in the current Decrease in the current

Item Beginning balance Ending balance

period period

1. Salaries bonuses

162415752.84356049365.14485701615.2732763502.71

subsidies and allowances

136Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

2. Employee welfare 15389846.92 15255092.62 134754.30

3. Social insurance 5807041.35 20937168.04 25669421.63 1074787.76

Including: medical

5492914.2019567806.6924024877.141035843.75

insurance

Work-

314127.151369361.351644544.4938944.01

related injury insurance

4. Housing funds 347140.00 3559060.00 3488111.00 418089.00

5. Labor union and staff

418769.427307626.384881597.012844798.79

education expenses

Total 168988703.61 403243066.48 534995837.53 37235932.56

(3) Presentation of the defined contribution plans

In RMB

Increase in the current Decrease in the current

Item Beginning balance Ending balance

period period

1. Basic pensions 8524886.32 32892612.68 39676179.95 1741319.05

2. Unemployment

297373.911111917.761353895.9055395.77

insurance

Total 8822260.23 34004530.44 41030075.85 1796714.82

28. Taxes payable

In RMB

Item Ending balance Beginning balance

Added-value tax 87733886.16 61072058.37

Corporate income tax 94349065.01 61750915.22

Individual income tax 9870590.21 3100246.18

City maintenance and construction tax 6170483.55 4330476.87

House tax 1236947.92 13625288.12

Land use tax 657111.90 5696022.16

Education surcharge 2644492.89 1855918.59

Stamp tax 1356304.80 1697472.12

Local education surcharge 1762995.38 1237279.17

Other taxes 22062.18

Total 205803940.00 154365676.80

29. Non-current liabilities due within one year

In RMB

Item Ending balance Beginning balance

Lease liabilities due within one year 2163637.20 4522658.42

Total 2163637.20 4522658.42

30. Other current liabilities

In RMB

137Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Item Ending balance Beginning balance

Output VAT to be carried forward 94072365.82 118041351.23

Total 94072365.82 118041351.23

31. Lease liabilities

In RMB

Item Ending balance Beginning balance

Lease payment amount 14474209.54 17643054.87

Unrecognized financial expenses -1967112.51 -2369603.55

Non-current liabilities due within one

-2163637.20-4522658.42

year after reclassification

Total 10343459.83 10750792.90

32. Deferred income

In RMB

Increase in the Decrease in the

Item Beginning balance Ending balance Cause of formation

current period current period

Government

Government grants 136538254.74 11038705.47 125499549.27

funding

Total 136538254.74 11038705.47 125499549.27

Other description:

Items with government grants:

In RMB

Amou

nt

Amo

includ

unt of

ed in

Added cost

non- Amount

subsidy deduc Othe

Beginning of the operat included in Ending of the Related to

amount tion rs

Liability period ing other income in period assets /

in the in Cha

Balance incom the current Balance income

current curre nge

e in period

period nt

the

perio

curren

d

t

period

Subsidies for factory buildings infrastructure

Related to

construction equipment etc. in new Chengnan 35064585.90 961898.10 34102687.80

assets

District

138Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Funds for intelligent manufacturing integrated Related to

21165836.864269752.8216896084.04

standard and new model application program assets

"Open complete and achieve" incentives for Related to

20257269.28554007.8419703261.44

industrial projects assets

Construction of production line with an annual Related to

17176926.621293301.4115883625.21

output of 2.25 million sets of kitchen appliances assets

Intelligent unmanned factory based on 5G and Related to

13590218.051039424.1012550793.95

cloud technologies assets

Intelligent manufacturing enhancement project Related to

11470083.461006145.0410463938.42

based on internet of things technology assets

Intelligent manufacturing project of integrated

Related to

kitchen appliances with an annual production 7408861.45 426351.30 6982510.15

assets

capacity of 300000 units

Construction project of kitchen appliance R&D Related to

4351759.70705321.603646438.10

design and testing center assets

Construction of production line with an annual

Related to

output of 1.08 million sets of built-in kitchen 2886861.55 341245.62 2545615.93

assets

appliances

Technological upgrading project with an annual Related to

1486862.55169552.501317310.05

output of 500000 assets

Related to

Robam Future Factory Project 942839.42 81541.90 861297.52

assets

Construction of digital intelligent workshop for Related to

262343.0857070.80205272.28

smart home appliances assets

Related to

Recycling-centered renewal project 177280.77 45780.78 131499.99

assets

Development of new generation of

Related to

environmentally-friendly energy-saving kitchen 151617.90 58959.43 92658.47

assets

appliances and their production line

Related to

Academician & expert work station 122531.16 21860.04 100671.12

assets

Related to

Kitchen appliance R&D design and testing center 19697.20 3812.40 15884.80

assets

Construction of the digital workshop with an

Related to

annual output of 2.25 million sets of kitchen 2679.79 2679.79 0.00

assets

appliances

Total 136538254.74 11038705.47 125499549.27 —

139Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

33. Capital stock

In RMB

Increase and decrease of this change (+ -)

Shares

Beginning balance Issue of Bonus converted Sub-tot Ending balance

new Others

shares from capital al

shares

reserve

Total number

949024050.00949024050.00

of shares

34. Capital reserve

In RMB

Increase in the current Decrease in the

Item Beginning balance Ending balance

period current period

Capital (stock) premium 401799332.67 401799332.67

Other capital reserves 9978881.55 8698813.25 18677694.80

Total 411778214.22 8698813.25 420477027.47

Other notes including condition and causes of variation in the current period:

The increase in other capital reserves is due to the recognition of equity-based incentives for the

period. For details please refer to Section XV "Share-Based Payment" in this report.

35. Treasury shares

In RMB

Increase in the current Decrease in the current

Item Beginning balance Ending balance

period period

Share repurchase 199995742.59 199995742.59

Total 199995742.59 199995742.59

Other notes including condition and causes of variation in the current period:

The treasury stock is repurchased by the Company from the secondary market for use in employee

stock incentives.

36. Other comprehensive incomes

In RMB

Amount incurred in the current period

Minus: Minus:

Amount amount amount

Net income Net income

incurred included in included in Minus:

after tax after tax

Item Beginning balance before other other income attributable attributable Ending balance

income tax comprehen comprehen tax

to the to minority

in the sive sive expense

parent shareholde

current incomes incomes s

company r s

period previously previously

and then and then

140Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

transferred transferred

into the into

current current

profit or retained

loss earnings

I. Other

comprehensiv

e incomes

that cannot be -100157634.16 -100157634.16

reclassified

into profit or

loss

Changes

in the fair

value of other

-100157634.16-100157634.16

equity

instrument

investments

(II) Other

comprehensiv

e income

which will be 25910.06 12522.53 13387.53 12522.53

reclassified

into gains and

losses

Convert

ed difference

in foreign 25910.06 12522.53 13387.53 12522.53

currency

statements

Total of other

comprehensiv -100157634.16 25910.06 12522.53 13387.53 -100145111.63

e incomes

37. Surplus reserve

In RMB

Increase in the current Decrease in the current

Item Beginning balance Ending balance

period period

Statutory surplus

474516412.50474516412.50

reserve

Total 474516412.50 474516412.50

38. Undistributed profit

In RMB

Item Current period Previous period

Undistributed profit at the end of previous

8987773431.718199079015.58

period before adjustment

Undistributed profit at the beginning of the

8987773431.718199079015.58

period after adjustment

Add: Net profits attributable to owners of 759358954.74 1732789332.13

141Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

the parent company in the current period

Dividends payable for ordinary

472047458.00944094916.00

shares*1

Undistributed profit at the end of the

9275084928.458987773431.71

period

*1. According to the proposal on the profit distribution plan for the year 2023 which was passed at the

fifth meeting of the sixth board of directors of the Company on April 24 2024 based on the total share

capital of 944094916.00 as of December 31 2023 a cash dividend of RMB 5.00 (including tax) will be

distributed to all shareholders for every 10 shares totaling RMB 472047458.00. This profit distribution

plan was approved at the shareholders' meeting held on May 16 2024 and the distribution was

implemented on May 29 2024.

39. Operating income and operating cost

In RMB

Amount incurred in the current period Amount incurred in the previous period

Item

Income Cost Income Cost

Main business 4604808674.29 2381821304.07 4793316106.76 2305082060.11

Other businesses 124545397.51 35796675.60 141553693.39 67013911.39

Total 4729354071.80 2417617979.67 4934869800.15 2372095971.50

40. Taxes and surcharges

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

City maintenance and construction tax 17669194.72 19865052.45

Education surcharge 12620853.38 14189320.42

House tax 1713879.73 1211155.82

Land use tax 682400.35 -4374871.70

Vehicle and vessel usage tax 6999.84 5139.84

Stamp tax 2461235.11 1306922.24

Others 75951.77 5252.13

Total 35230514.90 32207971.20

41. Administrative expenses

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Employee remuneration 107282124.59 109523028.03

Depreciation and amortization 37235102.64 31430035.98

Consulting service fees 16639627.93 13684786.20

Costs of equity incentive 8698813.25 3473641.59

Office expenses 8110263.60 6714440.34

Material consumption 6540776.25 4742269.13

Rental and property fees 6538191.34 4762887.30

Business hospitality cost 3844343.10 4660750.07

Maintenance expenses 2592881.06 2281377.24

142Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Travel expenses 2490615.16 2465253.34

Communication expense 2419485.36 3460975.01

Travel expenses 1124876.84 4142395.01

Others 10749981.97 12083977.01

Total 214267083.09 203425816.25

42. Sales expense

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Marketing service expenses 543754230.80 650120122.89

Advertisement expenses 291017797.65 356749434.59

Employee remuneration 160756327.97 166363948.22

Booth decoration expenses 50651703.80 60230248.91

Promotional activity expenses 41830970.70 33830183.32

Material consumption 38651942.85 38389111.98

Travel expenses 15190671.32 11697748.47

Intermediary service fees 12503361.04 10695310.63

Office expenses 11487489.39 7850063.78

Rental fees 8009305.98 7933192.97

Business hospitality cost 7518561.54 9309526.51

Others 8382037.14 7652481.14

Total 1189754400.18 1360821373.41

43. R&D expenses

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Employee remuneration 93845469.46 88567764.03

Direct input 63046936.47 65160510.13

Depreciation and amortization 6563059.30 7419085.38

Design fees 2215742.57 2146030.75

Other expenses 12702612.68 9440750.86

Total 178373820.48 172734141.15

44. Financial expenses

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Interest expenses 1294179.47 2707272.10

Less: Interest income 97172965.14 69274034.42

Add: foreign exchange gain/loss -552919.95 -3213064.29

Add: other expenses 1041292.17 820841.52

Total -95390413.45 -68958985.09

45. Other incomes

In RMB

Sources generating other incomes Amount incurred in the current period Amount incurred in the previous period

Financial support fund to boost the

25750000.0044730000.00

corporate development

143Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Amortization of deferred income 11038705.47 9823767.55

Embedded software tax refund 17599690.73 9453997.74

Special funds for industrial development 7597400.00 3289700.00

VAT exemption or reduction 19633908.52 922350.00

Post allowance and social insurance

819745.08723791.56

allowance

Handling fee refund 582214.67 684354.91

R&D input grants 959700.00 382847.00

Patent awards 175470.00

Other grants 1057200.00 648750.00

Total 85214034.47 70659558.76

46. Investment income

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Income from long-term equity investments

-3448513.93-1263184.05

accounted for using the equity method

Investment income during holding of

21508694.1922986802.86

financial assets for trading

Total 18060180.26 21723618.81

47. Loss from credit impairment

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Bad debt losses on notes receivable 157222.78 14373972.06

Bad debt losses from accounts receivable 803571.44 11131980.38

Bad debt losses of other receivables 2378889.45 -2215366.04

Total 3339683.67 23290586.40

48. Loss from asset impairment

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

I. Loss from obsolete inventory and from

impairment of the cost of contract -203395.43 5634807.91

performance

II. Other -6441873.91 -9556264.05

Total -6645269.34 -3921456.14

49. Asset disposal income

In RMB

Sources of asset disposal income Amount incurred in the current period Amount incurred in the previous period

Gains on disposal of assets held for sale

Non-current asset disposal income -242184.96 115350.08

Including: Gains on disposal of non-

current assets classified as held for sale

144Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Including: income from disposal of fixed

assets

Right-of-use asset disposal income

Gains on disposal of non-current assets

-242184.96115350.08

not classified as held for sale

Including: income from disposal of fixed

-242184.96-19655.41

assets

Right-of-use asset disposal income 135005.49

Gains on exchange of non-monetary

assets

Gain on disposal of non-current assets in

-519058.40-692068.49

debt restructuring

Total -761243.36 -576718.41

50. Non-operating revenue

In RMB

Amount included in the

Amount incurred in the Amount incurred in the

Item current non-recurring gains

current period previous period

and losses

Non-current asset scrapping

410.00

income

Others 885943.04 2803549.50 885943.04

Total 885943.04 2803959.50 885943.04

51. Non-operating expenditures

In RMB

Amount included in the

Amount incurred in the Amount incurred in the

Item current non-recurring gains

current period previous period

and losses

External donations 1506720.46 1120457.50 1506720.46

Amercement outlay 4796.33 14450.00 4796.33

Losses from non-current asset

1521.37673.951521.37

damage or retirement

Others 1579508.54 314293.04 1579508.54

Total 3092546.70 1449874.49 3092546.70

52. Income tax expenses

(1) Presentation of income tax expenses

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Current income tax expenses 167368358.21 187282866.64

Deferred income tax expenses -29772787.58 -35451939.13

Total 137595570.63 151830927.51

(2) Adjustment of accounting profit and income tax expense

In RMB

145Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Item Amount incurred in the current period

Total profit 886501468.97

Income tax expense calculated based on statutory/applicable

132975220.36

tax rate

Effects of the subsidiaries’ application of different tax rates -355967.81

Effects of the non-deductible costs expenses and losses 1689446.34

Effects of the deductible temporary differences or deductible

losses of unrecognized deferred income tax assets in the current 4750492.31

period

Unrealized internal gains and losses -1463620.57

Income tax expense 137595570.63

53. Other comprehensive incomes

See Note "VII. 36 Other Comprehensive Incomes" for details.

54. Cash flow statement items

(1) Cash related to operating activities

Other cash received relating to operating activities

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Government grants 37850227.58 56322854.76

Interest revenue on deposits 30950627.08 69274034.42

Revenue collected and payment made on

20085722.005493388.35

behalf of other agencies

Guarantee and security deposits 17824926.10 14303618.62

Other payments 8143953.69 6266385.36

Cash reserve 652861.09 1343606.65

Letter of credit and acceptance bill

9984355.85

margin

Total 115508317.54 162988244.01

Other cash paid relating to operating activities

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Period expenses 1266026997.91 1243206922.01

Letter of credit and acceptance bill

15101782.9621285415.74

margin

Revenue collected and payment made on

11087898.2810398113.72

behalf of other agencies

Cash reserve 3665426.42 4097943.96

Others 2626171.61 1336189.77

Guarantee and security deposits 2153199.68 8133397.66

Total 1300661476.86 1288457982.86

(2) Cash related to investment activities

Other cash received in relation to investment activities

146Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Fixed deposit maturity 3100000000.00

Fixed deposit interest 47278944.57

Total 3147278944.57

Other cash paid relating to investment activities

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Fixed deposit 3450000000.00

Total 3450000000.00

(3) Cash related to financing activities

Other cash received in relation to financing activities

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Income from accounts receivable

500000.006482178.88

factoring

Total 500000.00 6482178.88

Other cash paid in relation to financing activities

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Rental 3198439.08 3212200.53

Total 3198439.08 3212200.53

Changes in liabilities arising from financing activities

□Applicable □Not applicable

55. Supplementary information of Cash Flow Statement

(1) Supplementary information of Cash Flow Statement

In RMB

Supplementary information Current amount Amount of the previous period

1.Reconciliation of net profit to cash

flow from operating activities:

Net profit 748905898.34 823242258.65

Add: Asset impairment provision 3305585.67 -19369130.26

Depreciation of fixed assets

depreciation of oil and gas assets and

83105764.2876275036.48

depreciation of productive biological

assets

Depreciation of right-of-use

2597529.362662033.50

assets

Amortization of intangible assets 7103799.90 6770682.50

Amortization of long-term

2126181.412079639.11

deferred expenses

147Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Losses arising from disposal of

fixed assets intangible assets and other

761243.36576718.41

long-term assets (gains expressed with "-

")

Losses on disposal of fixed assets

1521.37673.95

(gains indicated with "-")

Losses from fair value change

(gains expressed with “-”)

Financial expenses (profit shall

-46072895.01-1152076.14

be indicated with"-")

Investment losses (gains

-18060180.26-21723618.81

expressed with “-”)

Decrease in deferred income taxassets (increase shall be indicated with “- -31185395.96 -34832967.10”)

Increase in deferred income tax

liabilities (decrease shall be indicated 1412608.38 -618972.03

with “-”)

Decrease in inventories (increase

125001086.1383112866.12

shall be indicated with “-”)

Decrease in operating receivables

202662034.3980656601.27

(increase shall be indicated with “-”)

Increase in operating payables

-667659189.97-37946892.42

(decrease expressed with "-")

Others

Net cash flow from operating

414005591.39959732853.23

activities

2.Non-cash flow-involved major

investing and financing activities:

Conversion of debt into capital

Convertible bonds due within one year

Fixed assets acquired under financing

leases

3.Net increase/decrease in cash and cash

equivalents:

Ending balance of cash 1016889300.64 5777869909.08

Less: cash beginning balance 1878166358.09 5196414341.74

Add: ending balance of cash

equivalents

Less: cash equivalents at the beginning

of the period

Net increase in cash and cash

-861277057.45581455567.34

equivalents

(2) Composition of cash and cash equivalents

In RMB

Item Ending balance Beginning balance

148Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

I. Cash 1016889300.64 1878166358.09

Including: cash on hand 232660.84 62267.64

deposits available for payment at

1015800859.351877703911.46

any time

other cash and cash equivalents

855780.45400178.99

available for payment at any time

III. Balance of cash and cash equivalents

1016889300.641878166358.09

at the end of the period

56. Foreign currency monetary item

(1) Foreign currency monetary item

In RMB

Ending balance in foreign

Item Exchange rate for conversion Ending balance in RMB

currency

Cash and cash equivalents

Including: USD 2114505.84 7.1268 15069660.22

EUR 5853.93 7.6617 44851.06

Hong Kong Dollar 21.90 0.91268 19.99

Australian Dollar 513.85 4.765 2448.50

Accounts receivable

Including: USD 3849841.39 7.1268 27437049.62

EUR

Hong Kong Dollar

Australian Dollar 30.00 4.765 142.95

(2) Description for overseas operating entities including the disclosure of the main business location

overseas bookkeeping base currency and selection basis for the important business entity overseas as

well as the reason for the change of bookkeeping base currency (if any).□Applicable □Not applicable

VIII. R&D expenditure

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Total 178373820.48 172734141.15

Including: Expensed R&D expenditure 178373820.48 172734141.15

IX. Changes in the scope of consolidated financial statements

1. Changes in the scope of consolidated financial statements due to other reasons

On January 26 2024 the General Manager's Office Meeting passed the following resolution: Robam

Appliances Holding (HK) Co. Ltd. establishes a wholly-owned subsidiary Robam Appliances U.S.

149Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Holding Co. Ltd. with a registered capital of USD 5000. Robam Appliances U.S. Holding Co. Ltd. and

WGSZ HOLDING LLC jointly establishes Robam Appliances Los Angeles Trade with a registered

capital of USD 10000. Robam Appliances U.S. Holding Co. Ltd. holds 70% of the shares while WGSZ

HOLDING LLC holds 30%. Robam Appliances Los Angeles Trade will primarily engage in the sales of

large household kitchen appliances.On January 29 2024 Robam Appliances U.S. Holding Co. Ltd. was officially established and

obtained its registration certificate. The registered address is: 8 The Green Ste A Dover DE 19901.On March 26 2024 Robam Appliances Los Angeles Trade was officially established and obtained its

registration certificate. The registered address is: 324 S Diamond Bar Blvd Unit Num 717 Diamond Bar

CA 91765.On March 11 2024 the General Manager's Office Meeting passed a resolution to establish Chengdu

Robam Innovation Technology Co. Ltd. The Chengdu subsidiary completed its business registration on

March 27 2024 with a registered capital of RMB 5000000. The Unified Social Credit Code is

91510100MADF89W069. The legal representative is Ge Hao. The registered address is: 2902 2903 2904

Building A No. 500 Tianfu Avenue Middle Section Chengdu High-tech Zone China (Sichuan) Pilot Free

Trade Zone. The main business scope includes technology development and services.X. Interests in Other Entities

1. Equity in subsidiaries

(1) Composition of the Robam Group

In RMB

Principal Shareholding ratio

Registrati

Subsidiary place of Nature of business Acquisition method

on place

business Direct Indirect

Beijing Robam Appliances Sales of kitchen 100.00 Business merger under

Beijing Beijing

Sales Co. Ltd. appliances % comm on control

Shanghai Robam Appliances Sales of kitchen 100.00 Business merger under

Shanghai Shanghai

Sales Co. Ltd. appliances % comm on control

Hangzhou MingQi Electric Hangzho Hangzho Sales of kitchen 100.00 Acquisition upon its

Co. Ltd. u u appliances % establishment

De Dietrich Household

Sales of kitchen Acquisition upon its

Appliances Trading Shanghai Shanghai 51.00%

appliances establishment

(Shanghai) Co. Ltd.Production and

Shengzhou Kinde Intelligent Shengzh Shengzho Business merger not

sales of kitchen 51.00%

Kitchen Appliance Co. Ltd. ou u under common control

appliances

Hangzhou Robam Fuchuang

Hangzho Hangzho Asset investment 100.00 Acquisition upon its

Investment Management Co.u u management etc. % establishment

Ltd.Zhejiang Cookingfuture Shengzh Shengzho Smart kitchen Acquisition upon its

32.13%

Technology Co. Ltd. ou u design establishment

Hangzhou Jinhe Electric Hangzho Hangzho Sales of kitchen 100.00 Acquisition upon its

150Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Appliances Co. Ltd. u u appliances % establishment

Robam Appliances Holding Hong Hong Asset investment 100.00 Acquisition upon its

(HK) Co. Ltd. Kong Kong management etc. % establishment

International trade

Robam International (HK) Hong Hong Acquisition upon its

of kitchen 100.00%

Trading Co. Ltd. Kong Kong establishment

appliances

Technology

Chengdu Robam Innovation Chengdu Chengdu 100.00 Acquisition upon its

development and

Technology Co. Ltd. City City % establishment

services

Robam Appliances U.S. United United Asset investment Acquisition upon its

100.00%

Holding Co. Ltd. States States management etc. establishment

Robam Appliances Los United United Sales of kitchen Acquisition upon its

70.00%

Angeles Trade Co. Ltd. States States appliances establishment

Other description:

Note: The Company holds 50% or less voting rights in Zhejiang Cookingfuture Technology Co. Ltd.but still maintains control over it. This is based on the fact that the Company has a controlling relationship

with Shengzhou Kinde so the Company has a controlling relationship with its holding subsidiary Zhejiang

Cookingfuture Technology Co. Ltd.On January 6 2022 Shengzhou Kinde Intelligent Kitchen Appliance Co. Ltd. a subsidiary of the

Company signed an Equity Transfer Agreement with Gongqingcheng Binglan Investment Partnership

(Limited Partnership). According to the agreement Shengzhou Kinde Intelligent Kitchen Appliance Co.Ltd. shall transfer its 7% equity stake in Cooking Future Technology Co. Ltd. to Gongqingcheng Binglan

Investment Partnership (Limited Partnership). As a result the equity stake of Shengzhou Kinde Intelligent

Kitchen Appliance Co. Ltd. shall decrease from 70% to 63% and the Company's stake shall decrease

from 35.70% to 32.13%.

(2) Major non-wholly owned subsidiaries

In RMB

Gains/losses Dividend declared and

Proportion of shares

attributable to minority distributed to minority Shengzhou Kinde

Subsidiary held by minority

shareholders in the shareholders in the Intelligent Kitchen

shareholders

current period current period

Shengzhou Kinde

Intelligent Kitchen 49.00% -6703313.43 -98129106.28

Appliance Co. Ltd.Zhejiang

Cookingfuture 37.00% -2700699.30 3457434.62

Technology Co. Ltd.Robam Appliances Los

Angeles Trade Co. 30.00% -1049009.80 -1049009.80

Ltd.

(3) Main financial information of important partially-owned subsidiaries

In RMB

Subsid Ending balance Beginning balance

iary Curren Non- Total Curren Non- Total Curren Non- Total Curren Non- Total

151Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

t assets current assets t current liabiliti t assets current assets t current liabiliti

assets liabiliti liabiliti es assets liabiliti liabiliti es

es es es es

Sheng

zhou

Kinde

Intellig

ent 11173 32962 44136 19742 42090 23951 10944 34107 45051 18864 41769 23041

Kitche 2108. 9631. 1739. 2945. 948.0 3894. 1329. 4155. 5484. 4246. 390.8 3637.n 81 12 93 98 4 02 81 13 94 55 3 38

Applia

nce

Co.Ltd.Zhejia

ng

Cooki

ngfutu 24279 31133 21789 21789 17730 25169

6854743885258525

re 040.4 643.5 225.6 225.6 954.2 532.7

603.08578.53927.58927.58

Techn 3 1 5 5 2 5

ology

Co.Ltd.Robam

Applia

nces

Los 18686 18686

97249724

Angele 423.4 423.4

347.63347.63

s 1 1

Trade

Co.Ltd.In RMB

Amount incurred in the current period Amount incurred in the previous period

Total Total

Subsidiary Operating comprehen Operating Operating comprehen Operating

Net profit Net profit

income sive cash flow income sive cash flow

income income

Shengzhou

Kinde

------

Intelligent 5227650 67284556.

16380401.16380401.19588199.10892781.10892781.37399921.

Kitchen 6.48 69

606017858557

Appliance

Co. Ltd.Zhejiang

Cookingfutu - - - - -

3303023.3530135.51510766.4

re 7299187.3 7299187.3 6034482.4 6034482.4 8517161.8

0865

Technology 1 1 1 1 3

Co. Ltd.Robam

Appliances - - -

2451606.

Los Angeles 3496699.3 3496699.3 7998182.7

70

Trade Co. 2 2 9

Ltd.

152Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

2. Equity in joint ventures or associates

(1) Summary of the financial information of minor joint ventures and associates

In RMB

Ending balance/amount incurred in Beginning balance/ amount incurred in

current period last period

Joint venture:

Total book value of investment 1097575.77 4321729.39

Totals of the following items calculated

as per respective shareholding proportion

--Net profit -3224153.62 497269.36

-Total comprehensive income -3224153.62 497269.36

Associated company:

Total book value of investment 3881360.54 4105720.85

Totals of the following items calculated

as per respective shareholding proportion

--Net profit -224360.31 -788324.74

-Total comprehensive income -224360.31 -788324.74

Other description

Shareholding Accounting

Name of joint Principal (%) treatment for

Registration Nature of

ventures and place of investment in joint

place business

associates business Direct Indirect ventures and

associates

De Dietrich

Appliances Sales of kitchen

Shanghai Shanghai 51.00 Equity method

Trading (Shanghai) appliances

Co. Ltd.Zhejiang Tingshuo

Brand Operation

Hangzhou Hangzhou Retail 40.00 Equity method

Management Co.Ltd.Shaoxing Shuaige

Kitchen and Kitchen

Bathroom Shaoxing Shaoxing appliance 40.00 Equity method

Technology Co. manufacturing

Ltd.XI. Government grants

1. Government grants recognized based on receivables at the end of the reporting period

□Applicable □Not applicable

Reasons for not receiving the projected amount of government grants at the projected point in time

□Applicable □Not applicable

2. Liabilities involving government grants

□Applicable □Not applicable

153Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

In RMB

Amount

included

Added Amount

in non- Other

subsidy transferred to Related to

Beginning operating changes

Account amount in other income in Ending balance assets/inco

balance income this

the current the current me

in the period

period period

current

period

Deferred Related to

136538254.7411038705.47125499549.27

income assets

Total 136538254.74 11038705.47 125499549.27

3. Government grants included in the current profit or loss

□Applicable □Not applicable

In RMB

Account Amount incurred in the current period Amount incurred in the previous period

Other income 85214034.47 70659558.76

Other description:

XII. Risks Relating to Financial Instruments

1. Various risks arising from financial instruments

Major financial instruments of the Company include accounts receivable accounts payable etc. See

Note VI for detailed description of these financial instruments. Risks related to these financial instruments

and risk management policies adopted by the Company to reduce such risks are outlined as follows. The

management of the Company manages and monitors such risk exposures to ensure to keep the risks above

within limited scope.The Company's various risk management objectives and policies are outlined as follows:

Risk management conducted by the Company is to properly balance risk and income minimize

negative impacts of the risks on the Company’s business performance and maximize benefits of the

shareholders and other equity investors. Based on the risk management objective the Company’s basic

risk management policy is to determine and analyze all kinds of risks faced by the Company establish

appropriate risk bottom line for risk management and monitor all risks promptly and reliably to keep risks

within a limited range.Market risk price risk

Since the Company sells its products at market prices it may be affected by such price fluctuations.Credit risk

154Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

As of June 30 2024 the biggest credit risk exposure that may bring financial loss to the Company

mainly comes from the Company’s financial assets loss caused by the other party’s failure to perform its

obligations in the contract particularly including the loss in the book value of recognized financial assets

in the consolidated balance sheet.To reduce credit risk the Company has a dedicated team responsible for determining the credit line

conducting credit approval and implementing other monitoring procedures to ensure that necessary

measures are taken to recover due debt. In addition the Company reviews the recovery of each account

payable on each balance sheet date so as to ensure sufficient bad debt provisions for unrecoverable

accounts. Therefore the management of the Company holds that the credit risk faced by the Company has

been significantly reduced.The credit risk of the Company’s liquid capital is low since it is deposited at banks with relatively

high credit rating.Because the risk exposures of the Company are related to multiple contracting parties and multiple

clients the Company has no major credit risk concentration.The Company adopts necessary policies to ensure all of the clients involved in the sales of our

products have good credit record. The Company has no major credit risk concentration.Total amount of the top five accounts receivable: RMB 1721028638.79.Total amount of the top five other accounts receivable: RMB 29489661.18

Liquidity risk

Liquidity risk is faced by the Company where it cannot meet its financial obligations as they fall due.The Company manages the liquidity risk by ensuring capital liquidity to fulfill its due obligations to avoid

unacceptable losses or damages to corporate reputation. The Company management has closely examined

the liquid assets of the Company and regularly analyzed the liability structure/term and bank lines and so

on to endure fund sufficiency. It is concluded that the Company has sufficient funds to meet the demands

of short-term loans and capital expenditure of the Company. Analysis of the financial assets and financial

liabilities of the Company as per maturity of the undiscounted contract obligations remained is made as

follows:

Balance on June 30 2024

Item Within 1 year 1-2 years 2-5 years Over 5 years Total

Financial asset

Cash and cash

1147837731.761147837731.76

equivalents

Financial assets

2551000029.502551000029.50

held for trading

Notes receivable 368798633.67 368798633.67

155Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Accounts receivable 1863130927.89 1863130927.89

Other receivables 86770440.47 86770440.47

Other current assets

1548608076.941548608076.94

Other non-current

580000000.00580000000.00

financial assets

Other non-current

20000000.00 3220000000.00 3240000000.00 assets

Financial liabilities

Short-term loans 115003320.70 115003320.70

Notes payables 993551028.00 993551028.00

Accounts payable 2384005428.78 2384005428.78

Other payables 290336577.77 290336577.77

Payroll payable 39032647.38 39032647.38

Other current

94072365.8294072365.82

liabilities

Non-current

liabilities due within 2163637.20 2163637.20

one year

Lease liabilities 2488952.25 5148043.33 2706464.25 10343459.83

Sensitivity analysis of foreign exchange risk

The exchange rate risk borne by the Company is mainly associated with USD Euro and AUD etc.The Company's main business activities priced and settled in RMB. The Company’s main business

activities priced and settled in RMB. As of June 30 2024 the Company’s balances of assets and liabilities

are in RMB (except for the balances of the assets and liabilities in foreign currency in "VI. 56 Monetary

items in foreign currency" in this Note). Exchange risk resulting from the assets and liabilities whose

balances are in foreign currency may affect the Company’s performance.The Company pays close attention to the impact of change in exchange rate on the Company’s

exchange risk. Currently the Company hasn’t adopted any measures to avoid foreign exchange risk.XIII. Disclosure of Fair Value

1. Fair value at end of the period of assets and liabilities measured at fair value

In RMB

Ending fair value

Item Fair value Fair value Fair value

Total

measurement (Level 1) measurement (Level 2) measurement (Level 3)

Continuous fair value

--------

measurement

(I) Financial assets

2551000029.502551000029.50

held for trading

1. Financial assets

measured at fair value 2551000029.50 2551000029.50

with changes included

156Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

in current profit or loss

(1) Financial products 2551000029.50 2551000029.50

(III) Investment in

other equity 2116023.22 2116023.22

instruments

(VI) Other non-current

580000000.00580000000.00

financial assets

1. Financial assets

measured at fair value

580000000.00580000000.00

with changes included

in current profit or loss

(1) Financial products 580000000.00 580000000.00

Total assets measured

continuously at fair 3133116052.72 3133116052.72

value

II. Non-continuous fair

--------

value measurement

2. Valuation techniques adopted and qualitative and quantitative information on important parameters

for the items involved in Level 3 continuous and non-continuous fair value measurement

Relationship

Significant between

June 30 2024

Item Valuation techniques unobservable unobservable

Fair value

value value and fair

value

Optimal fair value Investment

financial products 3131000029.50 —

estimation cost

Investment in other Optimal fair value Investment

2116023.22—

equity instruments estimation cost

Note: Due to the deteriorating operating environment operating conditions and financial status of the

invested company Suzhou Industrial Park Ruican Investment Enterprise (Limited Partnership) the

Company measured its fair value at zero yuan as a reasonable estimate.XIV. Related Party and Related Party Transactions

1. The Company's parent company

Proportion of

Proportion of the Company's shares

Parent company Registration place Nature of business Registered capital voting right of the held by the parent

parent company company in the

Company

Hangzhou Robam Investment and

Hangzhou

Industrial Group industrial RMB 60 million 49.68% 49.68%

Zhejiang

Co. Ltd. management

Description of the parent company

The ultimate controlling party of the Company is Ren Jianhua.

157Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

2. The Company's subsidiaries

See Note "Equity in Subsidiaries" for more about the Company's subsidiaries.

3. The Company's joint ventures and associated companies

See Note "Immaterial joint ventures and associates" for more about the Company’s joint ventures or associated companies.

4. Other related parties

Name of other related parties Relation between other related parties and the Company

Hangzhou Amblem Household Co. Ltd. Controlled by the same ultimate controlling party

Hangzhou Yuhang Robam Fuel Station Co. Ltd. Controlled by the same ultimate controlling party

Hangzhou Nbond Nonwovens Co. Ltd. Controlled by the same ultimate controlling party

Hangzhou Bonyee Daily Necessity Technology Co. Ltd. Controlled by the same ultimate controlling party

Hangzhou Guoguang Touring Commodity Co. Ltd. Controlled by the same ultimate controlling party

Hangzhou Xiaozhijia Health Care Product Co. Ltd. Controlled by the same ultimate controlling party

Hangzhou Yuhang Yaguang Spray Coating Factory Other related parties

Hangzhou City Garden Hotel Co. Ltd. Other related parties

Shaoxing Kinde Electric Appliances Co. Ltd. Other related parties

Hangzhou Linping ROBAM Charity Foundation Other related parties

Hangzhou Runqun Hardware Co. Ltd. Other related parties

5. Related transactions

(1) Related transactions regarding purchasing and selling goods and providing and accepting labor

services

Table of the purchasing of goods and receiving of labor services

In RMB

Description

Amount Whether exceeds Amount

of the Trading limit

Related parties incurred in the the approved incurred in the

related approved

current period limited or not (Y/N) previous period

transaction

Hangzhou Runqun Hardware Purchase of

5024244.723569947.74

Co. Ltd. goods

Hangzhou Xiaozhijia Health Purchase of

1528600.791046680.73

Care Product Co. Ltd. goods

Shaoxing Shuaige Kitchen and Purchase of

1405582.77439198.72

Bathroom Technology Co. Ltd. goods

Hangzhou Amblem Household Purchase of

1015191.01845058.44

Co. Ltd. goods

Receiving

Hangzhou City Garden Hotel

of labor 852662.55

Co. Ltd.services

Hangzhou Yuhang Robam Fuel Purchase of

394469.78429770.25

Station Co. Ltd. goods

Hangzhou Guoguang Touring Purchase of

13982.3013954.34

Commodity Co. Ltd. goods

Receiving

Hangzhou Yuhang Yaguang

of labor 805737.85

Spray Coating Factory

services

Hangzhou Bonyee Daily Purchase of 4470.08

158Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Necessity Technology Co. Ltd. goods

Total 10234733.92 7154818.15

Goods Sales/labor service provision

In RMB

Description of the related Amount incurred in the Amount incurred in the

Related parties

transaction current period previous period

Hangzhou Linping ROBAM

Sale of goods 1124610.65 1001649.72

Charity Foundation

Hangzhou Amblem

Sale of goods 976921.25 1629834.52

Household Co. Ltd.Hangzhou Nbond Nonwovens

Sale of goods 15216.05 16429.20

Co. Ltd.Total 2116747.95 2647913.44

(2) Related lease

The Company acts as the lessor:

In RMB

Rental income recognized in Rental income recognized in

Lessee Type of leased asset

the current period the previous period

Hangzhou Robam Industrial

Housing 14400.00 14400.00

Group Co. Ltd.Shaoxing Shuaige Kitchen and

Housing 339922.70 235163.52

Bathroom Technology Co. Ltd.The Company acts as the Lessee:

In RMB

Rental expenses Variable lease

for simplified payments not

Interest expense

short-term leases included in the Increased right-of-

Rental paid incurred on lease

and leases of low- measurement of use assets

liabilities

value assets (if lease liabilities (if

Type of applicable) applicable)

Lessor leased

asset Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun

t t t t t t t t t t

incurre incurre incurre incurre incurre incurre incurre incurre incurre incurre

d in the d in the d in the d in the d in the d in the d in the d in the d in the d in the

current previou current previou current previou current previou current previou

period s period period s period period s period period s period period s period

Hangzh

ou

Robam

Industri Housin 275012 275012 275012 275012

al g .28 .28 .28 .28

Group

Co.Ltd.

(3) Benefits of key management personnel

Unit: RMB 10000

159Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Item Amount incurred in the current period Amount incurred in the previous period

Total remuneration RMB 4120900 RMB 4279000

6. Receivables and payables of related parties

(1) Accounts receivable

In RMB

Ending balance Beginning balance

Project Related parties Bad debt Bad debt

Book balance Book balance

provision provision

Accounts Hangzhou Linping ROBAM

1089782.0054489.10

receivable Charity Foundation

Accounts De Dietrich Appliances Trading

1051825.8752591.291051825.8752591.29

receivable (Shanghai) Co. Ltd.Accounts Hangzhou Amblem Household

176456.008822.80

receivable Co. Ltd.Hangzhou Amblem Household

Prepayments 20000.00

Co. Ltd.Total 2338063.87 115903.19 1051825.87 52591.29

(2) Accounts payable

In RMB

Book balance at the end of Initial book balance at the

Project Related parties

the period beginning of the period

Hangzhou Yuhang Robam Fuel

Accounts payable 4182748.79 3736997.95

Station Co. Ltd.Hangzhou Runqun Hardware

Accounts payable 3438501.95 4936378.35

Co. Ltd.Hangzhou Amblem Household

Accounts payable 1115529.19 1366001.27

Co. Ltd.Shaoxing Shuaige Kitchen and

Accounts payable 423399.45

Bathroom Technology Co. Ltd.Hangzhou Xiaozhijia Health

Accounts payable 396601.29

Care Product Co. Ltd.Hangzhou Runqun Hardware

Other payables 200000.00 200000.00

Co. Ltd.Hangzhou Amblem Household

Other payables 5000.00 5000.00

Co. Ltd.Hangzhou Guoguang Touring

Other payables 2000.00 2000.00

Commodity Co. Ltd.Total 9763780.67 10246377.57

XV. Share-based Payment

1. Overview of share payment

□Applicable □Not applicable

Unit: RMB 10000

Category of Awarded during the Exercise during the period Unlocking in the current Expired in the current

160Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

grant period period period

recipients

Number Amount Number Amount Number Amount Number Amount

Manageme

nt 569.00 5193.26 90.18 302.96 319.08 1380.47

personnel

Total 569.00 5193.26 90.18 302.96 319.08 1380.47

Stock options or other equity instruments issued at the end of the period and held by external parties

□Applicable □Not applicable

Other description

On May 16 2024 the Company held the 2023 Annual General Meeting of Shareholders and

deliberated and adopted the Proposal on 2024 Stock Option Incentive Plan (Draft) of the Company and Its

Summary and other related proposals. On May 20 2021 the 6th Meeting of the 6th Board of Directors of

the Company deliberated and approved the Proposal on the Granting Stock Options to Incentive Targets.The stock option incentive grant date was May 20 2024. A total of 337 individuals were granted options

amounting to 5.69 million shares with an exercise price of RMB 18.92 per share. On June 24 2024 the

stock option grants were officially registered.On June 20 2024 the 8th meeting of the 6th board of directors and the 8th meeting of the 6th board

of supervisors reviewed and approved the Proposal on the Achievement of Exercise Condition during the

First Exercise Period of the 2023 Stock Option Incentive Plan. The exercise condition of the first exercise

period of the 2023 stock option incentive plan has been met. Of the 293 eligible individuals a total of

901800 stock options are exercisable at an exercise price of RMB 21.01 per share. As of June 30 2024 no

incentives have been exercised.

2. Equity-settled share-based payment

□Applicable □Not applicable

In RMB

The Company evaluates the fair value of stock options using

Method for determining the fair value of equity instruments on

the internationally recognized Black-Scholes option pricing

the grant date

model.Important parameters for determining the fair value of equity

Best estimate of the number of vested equity instruments

instruments on the grant date

basis for determining the number of vested equity instruments N/A

Reasons for material differences between the current estimate

N/A

and the previous estimate

Cumulative amount of equity-settled share-based payments

18333587.85

included in the capital reserve

Total expense recognized for equity-settled share-based

8698813.25

payments in the current period

3. Cash-settled share-based payment

□Applicable □Not applicable

161Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

4. Share-based payment for the current period

□Applicable □Not applicable

In RMB

Equity-settled share-based payment Cash-settled share-based payment

Category of grant recipients

expense expense

Management personnel 8698813.25

Total 8698813.25

XVI. Commitments and Contingencies

1. Major commitments

(1) Major commitments on the balance sheet date

Investment commitments to subsidiaries and associates

The Company committed to investing RMB 4 million in Zhejiang Tingshuo Brand Operation

Management Co. Ltd. of which RMB 2 million has been paid in accounting for 40% of the shares. The

remaining RMB 2 million has not been paid in.Apart from the above-mentioned commitments the Company has no other significant commitments.

2. Contingencies

(1) It’s also necessary to make it clear hereby that the Company has no major contingencies that need to

be disclosed

The Company has no significant or pending matters that need to be disclosed.XVII. Events After the Balance Sheet Date

1. Profit distribution

The proposed dividend per 10 shares (RMB) 5

The proposed number of bonus shares per 10 shares (shares) 0

The proposed number of additional shares per 10 shares

0

(shares)

The dividend per 10 shares declared and approved for

5

distribution (RMB)

The number of bonus shares per 10 shares declared and

0

approved for distribution (shares)

The number of additional shares per 10 shares declared and

0

approved for distribution (shares)

As of June 30 2024 the undistributed profits of the parent

Profit distribution

company amounted to RMB 9349860281.22. According to

162Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

the resolution of the board of directors the Company plans to

implement mid-term dividend distribution to reward its

shareholders. The specific dividend distribution plan is as

follows:

(1) The Company plans to distribute cash dividends of RMB 5

per 10 shares (including tax) to all shareholders based on the

total share capital of 944127316 shares as of July 31 2024.The total amount of dividends to be distributed is RMB

472063658.00.

(2) Purpose of mid-term dividend distribution: first to meet the

needs of the Company's long-term stable and healthy

development; second to increase cash dividend distribution to

boost market confidence while ensuring that the Company's

normal operations and long-term development are not affected;

third to actively reward shareholders share the Company's

development dividends with them and enhance their sense of

gain.If the Company’s share capital changes due to reasons such as

new shares being listed stock option exercises convertible

bonds being converted into shares or share repurchases

between the announcement of the distribution plan and the

equity registration date for the dividend distribution

adjustments will be made based on the principle of

"maintaining the distribution ratio and adjusting the total

distribution amount accordingly".

2. Subsequent events after the balance sheet date

1. Important non-adjustment matters

(1) Debt restructuring matters after the period

As of the reporting date the Company has entered into new debt settlement agreements with accounts

receivable amounting to RMB 24.0659 million. For agreements signed prior to the semi-annual period of

2024 RMB 8.9441 million has been processed through online signing and property transfer procedures

between the balance sheet date and the reporting date.Apart from the above-mentioned matters the Company has no other significant subsequent events.

(2) Inventory stock cancellation

On June 3 2024 the Company held the 7th meeting of the 6th board of directors and the 7th meeting

of the 6th supervisory board where the Proposal to Cancel Repurchased A-shares and Reduce the

Registered Capital by Amending the Articles of Association was approved. The Company plans to cancel

4929134 shares held in its repurchase special securities account. On June 19 2024 the Company's first

extraordinary general meeting of shareholders for 2024 was convened which deliberated and approved the

Proposal to Cancel Repurchased A-shares and Reduce the Registered Capital by Amending the Articles of

Association. The cancellation was completed on July 3 2024.

163Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

XVIII. Other Significant Events

1. Debt restructuring

As of June 30 2024 the Company's situation regarding the signing of agreement on properties exchanged

for construction services and the completion of procedures for purchasing houses through online signing is

as follows:

Including: Amount

Amount required in case

Amount of debt required for completion of

of unfinished procedures

Item repayment agreement procedures for online

for online signing or

signed signing and delivery of

delivery of houses

houses

Real estate clients 569023648.37 134223212.67 434800435.70

Total 569023648.37 134223212.67 434800435.70

The Company signed an agreement on properties exchanged for construction services with the

aforementioned real estate clients involving a total accounts receivable balance of RMB 569023600. The

procedures for online signing and delivery of the portion of RMB 139726900 has been completed and

the recognition of creditor's rights on accounts receivable has been terminated. The fair value of the real

estate used for debt repayment at the time point of debt restructuring is presented in the item of other non-

current assets with a fair value of the portion of RMB 139726900 confirmed through public market

inquiry. The Company paid a price difference of RMB 5503700 in cash. At the time point of debt

restructuring there was no profit or loss from the restructuring. The procedures for online signing and

filing of the houses have not yet been completed for the remaining portion of RMB 434800400. The

Company has not terminated the recognition of the creditor's rights on accounts receivable and has made a

bad debt provision at an expected credit loss rate of 35%.XIX. Notes to Main Items of the Financial Statements of the Parent Company

1.Accounts receivable

(1) Disclosure by aging of accounts

In RMB

Initial book balance at the beginning of

Age Book balance at the end of the period

the period

Within 1 year (including 1 year) 1498585068.97 1489994730.67

1-2 years 510711550.14 472477129.39

2-3 years 694954788.07 885752898.72

More than 3 years 308799643.65 45010462.60

3-4 years 297161038.69 34537581.13

4-5 years 5845857.62 6215681.25

More than 5 years 5792747.34 4257200.22

164Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Total 3013051050.83 2893235221.38

(2) Classification of disclosure according to the bad debt provision method

In RMB

Ending balance Beginning balance

Book balance Bad debt provision Book balance Bad debt provision

Type Percenta Book Percenta Book

Percenta ge of

Amount Amount value

Percenta ge of

Amount Amount value

ge (%) provisio ge (%) provisio

n n

Account

s

receivab

le with

154217104057501594155030105348496813

individu 51.18% 67.47% 53.58% 67.95%

0003.245707.96295.280627.397050.41576.98

al bad

debt

provisio

ns

Includ

ing:

Account

s

receivab

le with a

147088930683137781134293838995125903

collectiv 48.82% 6.33% 46.42% 6.25%

1047.5983.602663.994593.9980.415013.58

e bad

debt

provisio

n

Includ

ing:

Account

s

receivab

le

181016181016988825988825

grouped 6.01% 3.42%

597.89597.8976.0576.05

accordin

g to

related

parties

Aging

128986930683119679124405838995116015

combina 42.81% 7.22% 43.00% 6.74%

4449.7083.606066.102017.9480.412437.53

tion

301305113364187940289323113738175584

Total 100.00% 37.62% 100.00% 39.31%

1050.834091.566959.275221.386630.828590.56

Category by individual bad debt provision:

In RMB

Beginning balance Ending balance

Name Bad debt Bad debt Percentage of Reasons for

Book balance Book balance

provision provision provision provision

165Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Expected to be

Unit 1 660039726.23 660039726.23 658945936.78 658945936.78 100.00%

difficult to recover

Expected to be

Unit 2 364027062.34 109208118.70 337200324.44 101160097.33 30.00% difficult to fully

recover

Expected to be

Unit 3 201626455.66 86259958.01 241053412.05 105439212.41 43.74% difficult to fully

recover

Expected to be

Unit 4 103644563.87 62549255.29 95720766.37 61418433.11 64.16% difficult to fully

recover

Expected to be

Unit 5 29833027.36 20883119.15 27931724.10 14952948.85 53.53% difficult to fully

recover

Expected to be

Unit 6 28796628.81 12808177.77 28769213.01 10387277.95 36.11% difficult to fully

recover

Expected to be

Unit 7 25826189.64 17748183.70 23326159.14 14689394.40 62.97% difficult to fully

recover

Expected to be

Unit 8 22983529.61 15004193.26 21737772.41 10699859.15 49.22% difficult to fully

recover

Expected to be

Unit 9 15100611.29 8471506.90 15028917.55 8113002.52 53.98% difficult to fully

recover

Expected to be

Unit 10 13643117.43 7265607.25 13818085.83 7388085.13 53.47% difficult to fully

recover

Expected to be

Unit 11 11403482.66 6897017.86 9080624.77 5372708.62 59.17% difficult to fully

recover

Expected to be

Unit 12 9391156.30 4698425.06 8175161.48 3847228.69 47.06% difficult to fully

recover

Expected to be

Unit 13 9180961.06 9180961.06 9180961.06 9180961.06 100.00%

difficult to recover

Expected to be

Unit 14 8175007.62 3440071.29 8175007.62 3440071.29 42.08% difficult to fully

recover

Expected to be

Unit 15 7305800.75 5114060.53 7151711.18 2896821.17 40.51% difficult to fully

recover

Expected to be

Unit 16 3921670.93 2745169.65 5133382.93 3593368.05 70.00% difficult to fully

recover

Expected to be

Unit 17 3616362.19 2531453.53 3616362.19 2531453.53 70.00% difficult to fully

recover

Expected to be

Unit 18 3317253.79 1554840.55 3584790.07 1672115.95 46.64% difficult to fully

recover

Expected to be

Unit 19 3310609.08 1715551.82 3519010.46 1829963.77 52.00% difficult to fully

recover

Expected to be

Unit 20 3056422.32 1145907.85 1746554.15 1222587.91 70.00%

difficult to fully

166Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

recover

Expected to be

Others 22100988.45 14225744.95 19274125.65 11794180.29 61.19% difficult to fully

recover

Total 1550300627.39 1053487050.41 1542170003.24 1040575707.96

Category for bad debts provision by combination: In the combination provision for bad debts of accounts receivable is provided

by associated parties

In RMB

Ending balance

Name

Book balance Bad debt provision Percentage of provision

Less than 1 year 181016597.89

1-2 years

2-3 years

3-4 years

4-5 years

More than 5 years

Total 181016597.89

Category for bad debt provision by combination: In the combination bad debt provision for accounts receivable is provided by

account age

In RMB

Ending balance

Name

Book balance Bad debt provision Percentage of provision

Less than 1 year 1061052147.81 53052607.75 5.00%

1-2 years 146747758.44 14674775.84 10.00%

2-3 years 58503911.02 11700782.20 20.00%

3-4 years 18650546.32 9325273.16 50.00%

4-5 years 2975707.28 2380565.82 80.00%

More than 5 years 1934378.83 1934378.83 100.00%

Total 1289864449.70 93068383.60

If provision for bad debts of accounts receivable is made according to the general model of expected credit loss:

□Applicable □Not applicable

(3) Bad debt provision and its recovery or reversal in the current period

Provision for bad debts in the current period:

In RMB

Amount of change in the current period

Beginning

Type Recovery or Ending balance balance Provision Write-off Others

reversal

Bad debt

reserves for 1137386630. 1133644091.

75039320.2076760426.902021432.56

accounts 82 56

receivable

1137386630.1133644091.

Total 75039320.20 76760426.90 2021432.56

8256

Significant recoveries or reversals of provisions for bad debts during the reporting period:

In RMB

167Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Basis and rationality of

Amount of recovery or determining the

Unit Reason for reversal Recovery method

reversal original provision ratio

for bad debts

Unit 1 35932304.06 Bank transfers offsets

Bank transfers house

Unit 2 12943912.34

mortgage

Bank transfers house

Unit 3 8367635.05

mortgage

Bank transfers house

Unit 4 2911247.95

mortgage

Bank transfers house

Unit 5 2884489.50

mortgage

Bank transfers house

Unit 6 2502618.17

mortgage

Bank transfers house

Unit 7 2131401.24

mortgage

Bank transfers house

Unit 8 1982739.60

mortgage

Bank transfers house

Unit 9 1032855.13

mortgage

Bank transfers house

Unit 10 912030.00

mortgage

Bank transfers house

Unit 11 881524.45

mortgage

Bank transfers house

Unit 12 853100.00

mortgage

Bank transfers house

Unit 13 825000.00

mortgage

Bank transfers house

Unit 14 675000.00

mortgage

Bank transfers house

Unit 15 673076.70

mortgage

Bank transfers house

Unit 16 552430.80

mortgage

Bank transfers house

Others 699061.91

mortgage

Total 76760426.90

(4) Accounts receivable actually written off in the current period

In RMB

Item Amounts written off

Accounts receivable actually written off 2021432.56

Important accounts receivable write-offs:

In RMB

Whether the

Write-off

Nature of accounts Amounts written Reason for write- amount arises from

Unit procedures

receivable off offs an associated

performed

transaction

Expected to be Management

Unit 1 Payment for goods 881524.45 No

irrecoverable approval

168Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Expected to be Management

Unit 2 Payment for goods 266206.00 No

irrecoverable approval

Expected to be Management

Unit 3 Payment for goods 260915.00 No

irrecoverable approval

Expected to be Management

Unit 4 Payment for goods 116277.00 No

irrecoverable approval

Expected to be Management

Unit 5 Payment for goods 85625.00 No

irrecoverable approval

Expected to be Management

Other Subtotal Payment for goods 410885.11 No

irrecoverable approval

Total 2021432.56

(4) Top five debtors with the largest ending balances of accounts receivable and contract assets

In RMB

Proportion in the Ending balance of

total ending provision for bad

Ending balance of

Ending balance of Ending balance of balance of debts on accounts

Unit accounts receivable

accounts receivable contract assets accounts receivable and

and contract assets

receivable and impairment of

contract assets contract assets

Unit 1 658945936.78 658945936.78 21.87% 658945936.78

Unit 2 337200324.44 337200324.44 11.19% 101160097.33

Unit 3 275838561.72 275838561.72 9.15% 13791928.09

Unit 4 241053412.05 241053412.05 8.00% 105439212.29

Unit 5 95720766.37 95720766.37 3.18% 61418433.11

Total 1608759001.36 1608759001.36 53.39% 940755607.60

2.Other receivables

In RMB

Item Ending balance Beginning balance

Other receivables 78302506.11 46761052.06

Total 78302506.11 46761052.06

(1) Other accounts receivable

1) Classification of other accounts receivable by nature

In RMB

Initial book balance at the beginning of

Nature of receivable Book balance at the end of the period

the period

Collections by a third party 53190022.42 26915796.30

Guarantee and security deposits 20529567.47 26557958.62

Related transactions 4064000.00 4064000.00

Cash reserve 3308572.88 1409298.88

Withholdings 6730272.87 3488318.88

Proxy holding of properties exchanged

2094110.002094110.00

for construction services

Others 3205258.76 83894.77

Total 93121804.40 64613377.45

169Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

2) Disclosure by aging of accounts

In RMB

Initial book balance at the beginning of

Age Book balance at the end of the period

the period

Within 1 year (including 1 year) 73826959.96 39791252.20

1-2 years 3858897.97 5238428.30

2-3 years 4561836.65 4102774.20

More than 3 years 10874109.82 15480922.75

3-4 years 2776152.17 2411698.15

4-5 years 1422867.85 1924707.80

More than 5 years 6675089.80 11144516.80

Total 93121804.40 64613377.45

3) Classification of disclosure according to the bad debt provision method

In RMB

Ending balance Beginning balance

Book balance Bad debt provision Book balance Bad debt provision

Type Percenta Book Percenta Book

Percenta ge of Percenta ge of

Amount Amount value Amount Amount value

ge (%) provisio ge (%) provisio

n n

Provisio

n for bad

209411732938.136117209411732938.136117

debts by 2.25% 35.00% 3.24% 35.00%

0.00501.500.00501.50

individu

al item

Includ

ing:

Collecti

ve bad

910276140863769413625192171193453998

debt 97.75% 15.47% 96.76% 27.38%

94.4059.7934.6167.4586.8980.56

provisio

n

Includ

ing:

Aging

910276140863769413625192171193453998

combina 97.75% 15.47% 96.76% 27.38%

94.4059.7934.6167.4586.8980.56

tion

931218148192783025646133178523467610

Total 100.00% 15.91% 100.00% 27.63%

04.4098.2906.1177.4525.3952.06

Category by individual bad debt provision:

In RMB

Beginning balance Ending balance

Name Bad debt Bad debt Percentage of Reasons for

Book balance Book balance

provision provision provision provision

Expected

Unit 1 800000.00 280000.00 800000.00 280000.00 35.00%

impairment

170Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Expected

Unit 2 636327.00 222714.45 636327.00 222714.45 35.00%

impairment

Expected

Unit 3 657783.00 230224.05 657783.00 230224.05 35.00%

impairment

Total 2094110.00 732938.50 2094110.00 732938.50

Collective bad debt provision:

In RMB

Ending balance

Name

Book balance Bad debt provision Percentage of provision

Within 1 year (including 1

71732849.963586642.495.00%

year)

1-2 years 3858897.97 385889.80 10.00%

2-34561836.65912367.3320.00%

3-4 years 2776152.17 1388076.09 50.00%

4-51422867.851138294.2880.00%

More than 5 years 6675089.80 6675089.80 100.00%

Total 91027694.40 14086359.79

Provision for bad debts according to the general model of expected credit loss:

In RMB

Phase I Phase II Phase III

Expected credit loss Expected credit loss

Bad debt provision Expected credit loss over the entire duration over the entire duration Total

over the next 12

(without credit (with credit

months

impairment) impairment)

Balance as of January

17119386.89732938.5017852325.39

012024

Balance on January 01

2024 in the current

period

Provision in the current

-3033027.10-3033027.10

period

Balance as of June 30

14086359.79732938.5014819298.29

2024

Changes in the book balance with significant change in amount of the loss provision in the current period

□Applicable □Not applicable

4) Bad debt provision and its recovery or reversal in the current period

Provision for bad debts in the current period:

In RMB

Amount of change in the current period

Beginning

Type Ending balance

balance Recovery or Provision Write-offs Others

reversal

Bad debt

provision for 17852325.39 -3033027.10 14819298.29

other receivables

Total 17852325.39 -3033027.10 14819298.29

171Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

5） The actual write-off of other receivables in this period

There are no other actual receivables written off in this period.

6) Top five debtors with the largest ending balances of other accounts receivable

In RMB

Proportion in the

total ending

Nature of Ending balance of

Unit Ending balance Age balance of other

receivable bad debt provision

accounts

receivable

Collections by a

Unit 1 12986415.91 With 1 year 13.95% 649320.80

third party

Collections by a

Unit 2 6932252.09 With 1 year 7.44% 346612.60

third party

Unit 3 Loan 4064000.00 More than 5 years 4.36% 4064000.00

Collections by a

Unit 4 3672008.02 With 1 year 3.94% 183600.40

third party

Unit 5 Withholdings 3367719.31 With 1 year 3.62% 168385.97

Total 31022395.33 33.31% 5411919.77

3. Long-term equity investment

In RMB

Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Investments in

288639391.3720400000.00268239391.37270909357.6020400000.00250509357.60

subsidiaries

Investments in

joint ventures and

1700104.081700104.084961672.034961672.03

associated

companies

Total 290339495.45 20400000.00 269939495.45 275871029.63 20400000.00 255471029.63

(1) Investment in subsidiaries

In RMB

Beginning Beginning Increase/decrease in the current period Ending Ending

balance balance of balance balance of

Investee

(book impairment Additional Negative Impairment Others (book impairment

value) provision investment investment provision value) provision

Shengzhou

Kinde

Intelligent 16232000 16232000

0.00

Kitchen 0.00 0.00

Appliance

Co. Ltd.Hangzhou

52316304.52597277.

MingQi 280973.22

6890

Electric

172Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Co. Ltd.De Dietrich

Household

Appliances 20400000. 20400000.

630900.000.00630900.00

Trading 00 00

(Shanghai)

Co. Ltd.Shanghai

Robam

5838272.15838272.1

Appliances 0.00

00

Sales Co.Ltd.Beijing

Robam

5814980.85814980.8

Appliances 0.00

22

Sales Co.Ltd.Hangzhou

Robam

Fuchuang 10000000. 10000000.

0.00

Investment 00 00

Manageme

nt Co. Ltd.Hangzhou

Jinhe

10000000.10021490.

Electric 21490.97

0097

Appliances

Co. Ltd.Robam

Appliances

3588900.012414675.16003575.

Holding

00000

(HK) Co.Ltd.Chengdu

Robam

5012894.55012894.5

Innovation

88

Technolog

y Co. Ltd.

2505093520400000.17730033.2682393920400000.

Total

7.6000771.3700

(2) Investment in joint ventures and associated companies

In RMB

Increase/decrease in the current period

Investm

Beginni

ent Cash Ending

ng Adjust

Beginni profit dividen balance

balance ment of Ending

ng Additio Negativ or loss Other ds or Impair of

of other balance

Investor balance nal e recogni changes profits ment impair

impair

（ compre Others（bookbook investm investm zed in declare provisio ment

ment hensive value)

value) ent ent using equity d and n provisio

provisio income

the distribu n

n s

equity ted

method

I. Joint venture

173Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

De

Dietrich

-

Trade 43217 10975

32241

(Shangh 29.39 75.77

53.62

ai) Co.Ltd.-

Sub-tot 43217 10975

32241

al 29.39 75.77

53.62

II. Associated companies

Zhejiang

Tingshu

o Brand

-

Operatio 639942 602528

37414.

n .64 .31

33

Manage

ment

Co. Ltd.-

Sub-tot 639942 602528

37414.

al .64 .31

33

-

4961617001

Total 32615

72.0304.08

67.95

Recoverable amount is determined as fair value less costs of disposal

□Applicable □Not applicable

The recoverable amount is determined as the present value of the expected future cash flows

□Applicable □Not applicable

4. Operating income and operating cost

In RMB

Amount incurred in the current period Amount incurred in the previous period

Item

Income Cost Income Cost

Main business 4244513191.19 2257722536.75 4362487508.28 2211299281.37

Other businesses 125388591.10 30056323.88 127661267.93 61625299.63

Total 4369901782.29 2287778860.63 4490148776.21 2272924581.00

5.Investment income

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Income from long-term equity investments

-3261567.95-1019723.65

accounted for using the equity method

Investment income during holding of

21492000.0022815337.74

financial assets for trading

Total 18230432.05 21795614.09

174Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

XX. Supplementary Information

1. Breakdown of non-recurring profits and losses in the current period

□Applicable □Not applicable

In RMB

Item Amount Description

Gains and losses on disposal of non-

-762764.73

current assets

Government subsidies included in

current gains and losses (excluding

government subsidies closely related to

the Company's normal business enjoyed

47398220.55

in line with national policy and

established standards and having a

sustained impact on the Company's gains

and losses).Reversal of impairment provision for

accounts receivable tested for 76760426.90

impairment separately

Other non-operating revenues and

-2205082.29

expenses except the above items

Less: Affected amount of income tax 18416180.25

Affected amount of minority

1173943.32

shareholders’ equity (after tax)

Total 101600676.86 --

Other items of gains and losses meeting the definition of non-recurring gains and losses:

□Applicable □Not applicable

The Company does not have other items of gains and losses meeting the definition of non-recurring gains and losses

Explanation on the circumstance where items of the non-recurring gains and losses listed in the Explanatory Announcement No. 1

on Information Disclosure for Companies Offering Their Securities to the Public — Non-recurring Gains and Losses (referred to

as “Announcement No.1”) are defined as recurring profits and losses

□Applicable □Not applicable

Item Amount (in RMB) Reasons

VAT exemption reduction or refund 37394570.29 National tax policy regular business

Refund of individual income tax

421243.63 National tax policy regular business

handling fee

Total 37815813.92

2. Return on equity and earnings per share (EPS)

Profit within the Reporting Weighted average return on EPS

Period net assets Basic EPS (RMB/share) Diluted EPS (RMB/share)

Net profit attributable to

common stockholders of the 7.01% 0.80 0.80

Company

Net profit attributable to

6.08%0.690.69

common shareholders of the

175Full Text of Hangzhou Robam Appliances Co. Ltd. Semi-Annual Report 2024

Company after deducting

non-recurring profits and

losses

3. Accounting data differences under domestic and foreign accounting standards

(1) Differences of net profits and net assets in the Financial Report disclosed as per the IAS and CAS

□Applicable □Not applicable

(2) Differences of net profits and net assets in the Financial Report disclosed as per the foreign

accounting standard and CAS

□Applicable □Not applicable

（3） Explanation of the reasons of accounting data differences under domestic and foreign accounting

standards shall be made and where data audited by an overseas audit institution has been adjusted

based on the differences the name of the overseas institution shall be indicated.□Applicable □Not applicable

4. Others

N/A

176