Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Hangzhou GreatStar Industrial Co. Ltd.2023 Annual Report
[April 2024]
Introduction
In 2023 GreatStar delivered record-setting results by adhering to the development philosophy of "remaining
devoted to perfection while keeping the grand vision in mind" in the face of the most severe challenges in 30 years
due to the active destocking and declining demand in the European and American markets that began in H2 2022.In 2023 GreatStar achieved a total operating revenue of RMB 10.929 billion a net profit attributable to the parent
Company of RMB 1.691 billion and a net cash flow from operating activities exceeding RMB 2.1 billion. Thanks
to all GreatStar employees for their hard work that has allowed GreatStar to keep pushing forward. Despite the
vicissitudes GreatStar persisted in enhancing its comprehensive strengths and providing long-term returns to
shareholders. Our journey will be as vast and enduring as the starry sky and the boundless sea. Thanks to the
shareholders for their Company and perseverance.About 30 years ago GreatStar started in an office building in downtown Hangzhou with a 20-square-meter office
a desk and an employee. After over a decade of effort in 2010 GreatStar successfully went public. In the
subsequent decade or so GreatStar has steadily grown and rewarded shareholders achieving compound annual
growth rates (CAGR) of 14.49% 15.23% and 14.32% in the operating revenues net profit attributable to the parent
Company and net assets respectively. GreatStar has continuously rewarded investors through dividends share
buybacks and other means. We will persistently adhere to the principle that the cash generated from GreatStar's
operating activities will either be used for acquiring renowned international brands to develop our main business
segments or for distributing dividends and share buybacks to reward shareholders.GreatStar has achieved a number of notable achievements and milestones in its journey. By reflecting on this journey
it is a valuable exercise to re-examine the ever-changing global industrial landscape. As Wang Yangming said "Life
is like a spiritual practice just like the lotus that can grow in the mud. All the difficulties and tribulations in the
world are opportunities to hone and improve myself." Whatever does not defeat us will ultimately make us stronger.From 2010 to 2016 although China's annual GDP growth rate declined from 10% to 7% it was still far higher than
the average GDP growth rate of 2% in GreatStar's main market the United States. The substantial cash reserves and
excellent business model that GreatStar possessed during this period paradoxically presented a "resource curse" as
the Chinese market seemed replete with investment opportunities that promised growth far exceeding the original
10%. GreatStar made numerous equity investments in non-core business segments. However GreatStar's compound
annual growth rate (CAGR) during those six years turned out to be only slightly above 11%. At the end of 2016 and
the beginning of 2017 under the leadership of the chairman GreatStar's Board of Directors and Management team
profoundly reflected on and summarized the past course of diversification. They ultimately determined to focus on
consumer goods in Europe and the United States as the core business for future development and have consistently
implemented this strategy. However the Company and the industry were set to be buffeted by dramatic challenges
in 2017.Coinciding with GreatStar's refocusing on its core business in 2017 with a strong emphasis on developing its
original brands (OBM business) and acquiring overseas brands for expansion China introduced a series of important
new policies and measures for environmental protection aimed at strengthening environmental protection and
ecological civilization development. These policies have objectively led to the elimination of outdated production
capacity in the tooling industry causing a short-term supply-demand imbalance. In 2018 the United States
government released a list of goods subject to increased tariffs imposing an additional 10% to 25% tariff on certain
Chinese exports to the United States. This marked the beginning of the ongoing US-China trade dispute that has
persisted until today drastically increasing GreatStar's operating costs. GreatStar was compelled to commence the
global expansion and integration of its industrial and supply chains. In May 2019 the United States government
raised the tariff rate from 10% to 25% on USD 200 billion worth of Chinese goods exported to the United States
affecting most of GreatStar products exported to the United States. To address this adverse situation GreatStar
accelerated the construction of three major manufacturing bases in Vietnam Cambodia and Thailand to mitigate
operational risks to the greatest extent possible. In 2020 the sudden global black swan events first led to a sharp
1Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
decrease in orders necessitating a pivot to the production and sale of personal protective equipment. Later an abrupt
surge in global orders resulted in insufficient production capacity requiring all employees to work overtime. In
2021 although end-market demand was robust the simultaneous substantial increases in the RMB exchange rate
China-US shipping costs and raw material prices resonated together exceeding the Company's short-term
adjustment threshold and causing a significant decline in the overall gross profit margin. In 2022 just as the cost
impact had been alleviated demand in Europe and America declined in the second half of the year due to interest
rate hikes by the United States Federal Reserve. Clients with overstocked inventories initiated a wave of destocking
with orders rapidly plummeting to a freezing point.All these events posed tremendous challenges for GreatStar representing profound changes that disrupted the
existing industry landscape. We are like a ship navigating the vast ocean. Every wave could potentially capsize the
vessel or provide the impetus for acceleration. These external changes demanded that GreatStar actively optimize
its business model adjust its governance system and rapidly and appropriately respond to the ever-changing global
rules. Over the past 6 years GreatStar has achieved a compound annual growth rate (CAGR) of 17% in operating
revenues and 20% in net profits attributable to the parent Company marking a notable improvement compared to
previous periods. We have also made substantial progress in the product portfolio original brands business models
and industrial upgrades.Product profile: At the time of its initial public offering GreatStar only offered four major categories of hand tools
namely rotary cutting measuring and lighting tools along with a limited number of handheld power tools in just
a few thousand SKUs. As HuaDa KeJie LISTA Geelong and SHOPVAC joined GreatStar accompanied by
investments in market and R&D resources GreatStar's non-hand tool categories accounted for nearly 40% of its
offerings in 2023. Moreover GreatStar has become the world's second-largest manufacturer of laser measurement
instruments and tool storage cabinets with over 30000 SKUs. By steadily expanding its product range and adding
new categories GreatStar has shown a strong ability to consistently grow in the European and American consumer
goods tool markets. This is like a long gradual climb that has laid a solid foundation for GreatStar to keep
accelerating its growth in the coming decade.Original brands: GreatStar has successively acquired ARROW LISTA BEA and some other leading brands in
European niche markets and emerging brands such as WORKPRO DURATECH and SHEFFIELD. The revenues
contributed by original brands have risen from less than 10% in 2016 to nearly 50% in 2023. This transformation
has not only further broken GreatStar's gross profit margin ceiling but will also play a role in stabilizing performance
during industry fluctuations as severe as those experienced in 2023.Business models: Through three parallel measures – direct cross-border e-commerce operations acquisition of
European and American distribution channels and establishment of Asia-Pacific distribution channels GreatStar
has effectively increased the proportion of direct-to-customer (DTC) business prioritizing retail customer needs
and directly reaching end retail customers. This has not only effectively enhanced the value proposition of individual
products but has also provided firsthand client feedback to feed directly into R&D.Industrial upgrade: As a Company that originated from foreign trade GreatStar has consistently derived over 90%
of its revenues from regions outside of China. Prior to 2017 GreatStar had no overseas manufacturing or large-scale
warehousing and logistics bases. Over the past 6 years GreatStar has acquired or built 10 production bases in China
3 production bases in Southeast Asia 5 production bases in Europe and 3 production bases in the United States
through acquisitions of European and American factories as well as establishment of its own manufacturing bases
in Southeast Asia. Currently GreatStar has established multiple large logistics distribution centers and sales and
after-sales teams in Europe and the United States achieving truly localized service in these markets. GreatStar has
actively introduced μ-class high-precision measurement instrument and equipment production capacity from the
TESA brand to optimize the product range manufactured in China.The future can't be predicted with certainty but it fills us with both awe and hope. No one can predict GreatStar's
future just as it was impossible to foresee in 2017 that GreatStar would be as it is in 2023. We follow "The Grand
Way" or the great trends of the times with patriotic sentiments. We remain devoted to perfection to being
meticulously focused and specialized. In 2024 GreatStar will continue to adhere to the development philosophy of
"remaining devoted to perfection while keeping the grand vision in mind" striving towards the goal of becoming
the world's largest tool Company.The Board of Directors of Hangzhou GreatStar Industrial Co. Ltd.April 24 2024
2Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2023 Annual Report
Section I Important Notice Table of contents and Definitions
The Board of Directors and the Board of Supervisors of the Company and its directors supervisors and
senior Management hereby warrant that the information contained in this annual report is true accurate
and complete without any fictitious records misleading statements or material omissions and severally and
jointly assume legal responsibility thereof.Qiu Jianping person in charge of the Company and Ni Shuyi person in charge of accounting and person in
charge of the accounting department (Accounting Officer) have declared that they warrant the truthfulness
accuracy and completeness of the financial statements set out in this annual report.All directors of the Company were present in person at the Board of Directors' meeting for the review of this
Report.Forward-looking statements including future plans involved in this Report do not constitute the Company's
substantive commitments to investors. The investors and those who are interested are advised to pay
attention to relevant risks and understand the difference between plans projections and commitments.The Report has described the Company's risk factors that may exist in its operations in detail in "Section III
Discussion and Analysis of the Management (XI) Prospects for the Company's Future Development:
Potential Risks". Please pay attention to the relevant contents.The profit distribution proposal of the Company considered and approved by the meeting of the Board of
Directors is to distribute a cash dividend of RMB 0 (including tax) and issue 0 bonus shares (including tax)
for every 10 shares based on a total of 1202501992 shares. No capital reserve is to be transferred into the
share capital.
3Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Table of Contents
Section I Important Notice Table of contents and D... 3
Section II Company Profile and Key Financial Indic... 7
Section III Discussion and Analysis of the Managem.. 13
Section IV Corporate Governance .................... 54
Section V Environmental and Social Responsibility .. 76
Section VI Significant Matters ..................... 78
Section VII Changes in Shares and Information abou. 111
Section VIII Preferred Shares ..................... 120
Section IX Securities ............................. 121
Section X Financial Report ........................ 122
4Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Documents Available for Inspection
I. Financial Statements with the signatures and seals of the person in charge of the Company person in charge of
accounting and person in charge of the accounting department of the Company.II. Original Audit Report bearing the seal of the accounting firm and signatures of the CPAs who have performed
the audit.III. All of the originals of the Company's documents and original drafts of the Company's announcements as
disclosed in the newspaper designated by China Securities Regulatory Commission (CSRC) in the reporting period.
5Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Definitions
Term to be defined Refers to Definition
The period from January 1 2023 to
reporting period Refers to
December 31 2023
Company the Company the listed Hangzhou GreatStar Industrial Co.Refers to
Company GreatStar Ltd.Hangzhou GreatStar Sheffield
Sheffield Refers to
Trading Co. Ltd.Guozi Robotics Refers to Zhejiang Guozi Robotics Co. Ltd.Arrow Refers to Arrow Fastener Co. LLC
Changzhou Huada Kejie Opto-
HDKJ Refers to
Electro Instrument Co. Ltd.OLEI Refers to Hangzhou Ole-Systems Co. Ltd.Donghai Bank Refers to Ningbo Donghai Bank Co. Ltd.PT Company Refers to PRIM'TOOLS LIMITED
GreatStar Group Refers to GreatStar Holding Group Co. Ltd.Lista Refers to Lista Holding AG
Prime-Line Refers to Prime-Line Products LLC
Lista Refers to Lista Holding AG
Haining GreatStar Intelligent
Haining GreatStar Refers to
Equipment Co. Ltd.Hangzhou Zhongce Haichao
Zhongce Haichao Refers to
Enterprise Management Co. Ltd.Hangcha Group Refers to Hangcha Group Co. Ltd.Hangzhou Haichao Enterprise
Hangzhou Haichao Refers to Management Partnership (Limited
Partnership)
GreatStar Europe Refers to GreatStar Europe AG
JFB
Refers to Joh. Friedrich Behrens AG
AG BeA
Geelong Refers to Geelong Holdings Limited
GDR Refers to Global Depository Receipts
China Securities Regulatory
CSRC Refers to
Commission
6Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Section II Company Profile and Key Financial Indicators
I. Company Information
Stock name GreatStar Stock code 002444
Stock exchanges on
Shenzhen Stock Exchange
which the shares are listed
Name of the Company in
Hangzhou GreatStar Industrial Co. Ltd.Chinese
Short name of the
GreatStar
Company in Chinese
Name of the Company in
Hangzhou GreatStar Industrial Co. Ltd.English (if any)
Short name of the
Company in English (if GreatStar
any)
Legal representative of
Qiu Jianping
the Company
Registered address No. 35 Jiuhuan Road Shangcheng District Hangzhou
Post code at registered
310019
address
Change history of Change from No. 35 Jiuhuan Road Jianggan District Hangzhou to No. 35 Jiuhuan
registered address Road Shangcheng District Hangzhou
Office address No. 35 Jiuhuan Road Shangcheng District Hangzhou
Post code at office address 310019
Website https://www.greatstartools.com/
Email zq@greatstartools.com
II. Contact persons and contact methods
Sectary to the Board Securities Affairs Representative
Name Zhou Siyuan Lu Haidong
No. 35 Jiuhuan Road Shangcheng No. 35 Jiuhuan Road Shangcheng
Address
District Hangzhou District Hangzhou
Tel 0571-81601076 0571-81601076
Fax 0571-81601088 0571-81601088
Email zq@greatstartools.com zq@greatstartools.com
III. Information Disclosure and Place for Inspection
Websites of the stock exchanges for disclosure of
http://www.szse.cn/
annual report of the Company
Names and websites of media outlets for disclosure of Securities Times Securities Daily China Securities
annual report of the Company Journal and cninfo (http://www.cninfo.com.cn)
Location for inspection of annual report of the
Office of the Board of Directors of the Company
Company
IV. Changes in Registration Information
Unified social credit code 91330000731506099D
Any change in main business lines since the
None
Company's IPO
Any change in controlling shareholder None
V. Other Relevant Information
Accounting firm engaged by the Company
Pan-China Certified Public Accountants LLP (Special
Name of accounting firm
General Partnership)
7Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Office Building T2 Run'ao Business Center
Intersection of Boao Road and Pinglan Road
Office address of accounting firm
Yingfeng Sub-district Xiaoshan District Hangzhou
City Zhejiang Province
Name of signing CPAs Li Deyong and Hu Fujian
Sponsor engaged by the Company for providing continuous supervision and guidance during the reporting period
□ Applicable √ Not Applicable
Financial consultant engaged by the Company for providing continuous supervision and guidance during the
reporting period
□ Applicable √ Not Applicable
VI. Major Accounting Data and Financial Indicators
Whether the Company needs to make retrospective adjustment or restatement of the accounting data for prior years
□Yes □ No
Reasons for retrospective adjustment or restatement
Changes in accounting policies
Increase or
In 2022 decrease over In 2021
In 2023 previous year
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Operating
10929992802126101895126101895109196833109196833
income -13.32%.3290.3390.3344.3744.37
(RMB)
Net profit
attributable
to the
1691612756.141955950141985470127000339127000339
shareholders 19.14%
797.109.566.406.40
of the listed
Company
(RMB)
Net profit
after
deduction of
non-recurring
gains and
losses 1697490987. 145464377 145493897 107355796 107355796
16.67%
attributable 11 2.32 4.78 5.88 5.88
to the
shareholders
of the listed
Company
(RMB)
Net cash
flow from
2125854925.16318366416318366418632169.618632169.6
operating 30.27%
652.392.3977
activities
(RMB)
Basic
1.41621.241.244813.77%1.131.13
earnings per
8Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
share
(RMB/share)
Diluted
earnings per
1.41621.241.244813.77%1.131.13
share
(RMB/share)
Weighted
11.89%12.31%12.31%-0.42%12.70%12.70%
average ROE
Increase or
decrease over
End of 2022 End of 2021
end of
End of 2023
previous year
Before After After Before After
adjustment adjustment adjustment adjustment adjustment
Total assets 196837972 185795547 18596305792 173071548 173071548
5.85%
(RMB) 71.17 96.77 .11 86.67 86.67
Net assets
attributable
to
14847980013397947513398132756105988967105988967
shareholders 10.82%
75.6243.83.1246.7046.70
of the listed
Company
(RMB)
Reasons for changes in accounting policies and situations of corrections of accounting errors
Since January 1 2023 the Company has implemented the provision of "Accounting Treatment of No Application
of Initial Recognition Exemption to Deferred Income Tax Related to Assets and Liabilities from Individual
Transactions" in the Interpretation No. 16 of Accounting Standards for Business Enterprises issued by the Ministry
of Finance and made adjustments to individual transactions to which the provision applies from the beginning of
the earliest reporting period appearing on the financial statements to which the provision applies to the first date on
which the provision was applied. For lease liabilities and right-of-use assets recognized from individual transactions
to which the provision applies to at the beginning of the earliest reporting period appearing on the financial
statements to which the provision applies and the estimated liabilities related to asset retirement obligations and
corresponding related assets the Company has made adjustment to the opening retained earnings and other relevant
financial statement items of the earliest reporting period appearing on the financial statements to which the provision
applies with the cumulative effects in the case of occurrence of taxable and deductible temporary differences in
accordance with the provision and the Accounting Standards for Business Enterprises No. 18 - Income Taxes.The lower of the Company's net profit before and after deducting non-recurring gains and losses for the most last
three fiscal years was negative and the most recent audit report indicated uncertainty regarding the Company's
ability to continue as a going concern
□ Yes √□ No
The lower of net profit before and after deducting non-recurring gains and losses
□ Yes √□ No
VII. Difference in Accounting Data under Domestic and Overseas Accounting Standards
1. Differences of net profit and net assets disclosed under International Accounting Standards (IFRS) and
Chinese Accounting Standards (CAS) in the financial reports
□ Applicable √ Not Applicable
There were no differences of net profit and net assets disclosed under International Accounting Standards (IFRS)
and Chinese Accounting Standards (CAS) in the financial reports of the Company during the reporting period.
9Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2. Differences of net profit and net assets disclosed under overseas accounting standards and Chinese
Accounting Standards (CAS) in the financial reports
□ Applicable √ Not Applicable
There were no differences of net profit and net assets disclosed under overseas accounting standards and Chinese
Accounting Standards (CAS) in the financial reports of the Company during the reporting period.VIII. Key Financial Indicators by Quarter
Unit: RMB
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Operating income 2555292092.76 2689969108.15 3364956201.89 2319775399.52
Net profit
attributable to
302441087.90570109868.37633634145.08185427655.44
shareholders of the
listed Company
Net profit after
deduction of non-
recurring gains and
losses attributable 285040709.60 621426317.87 640411354.85 150612604.79
to the shareholders
of the listed
Company
Net cash flows from
339474152.99624769727.31422823716.34738787329.01
operating activities
Are the above financial indicators or their totals significantly different from the relevant financial indicators
disclosed in the Company's previously released quarterly or interim reports
□ Yes √□ No
IX. Items and Amounts of Non-recurring Gains and Losses
□√ Applicable □ Not Applicable
Unit: RMB
Item Amount in 2023 Amount in 2022 Amount in 2021 Note
Profits or losses on
disposal of non-
current assets
1655224.56-24332379.79-4813678.28
(including write-off
of provision for
assets impairment)
Government grants
included in profit or
loss (excluding
those closely
related to operating
activities of the
Company and
granted constantly 30311586.83 46471430.13 43080948.70
affecting the
Company's gains or
losses in
accordance with
certain standards
based on state
policies)
10Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Profits or losses
from changes in fair
value of value and
disposal of financial
assets and liabilities
held by non-
financial
-34667995.27-66784931.4495687869.64
enterprises
excluding those
arising from
hedging business
related to the
Company's normal
operating activities
Profit or loss on
entrusted
investment or 1915298.69 2368356.03 1808120.10
management of
assets
Reversal of
impairment
provision for
96458.50
accounts receivable
subject to separate
impairment testing
Gains arising from
the investment cost
in acquiring
subsidiaries
associates and joint
ventures being
82984773.90
lower than the fair
value of the
invested entities'
identifiable net
assets entitled upon
investment
Other non-operating
revenue or -3873470.17 -12290983.36 -127210.71
expenditures
Other profits or
losses in
compliance with the
12733584.83502892.56
definition of non-
recurring profits or
losses
Less: Effect of
-1142001.28-9422034.5417156521.94
income tax
Non-controlling
interest affected 2457334.74 2671376.16 5521763.45
(after tax)
Total -5878230.32 -35084265.22 196445430.52 --
Details of gain or loss items that fall into the category of non-recurring gains and losses:
□ Applicable √ Not Applicable
The Company has no other gain or loss items that fall into the category of non-recurring gains and losses.
11Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Notes for the situation that the non-recurring gain or loss items as illustrated in the Explanatory Announcement No.1
on Information Disclosure for Companies Offering Their Securities to the Public – Non-recurring Profits or losses
are defined as recurring profits or losses
□ Applicable √ Not Applicable
None of non-recurring gain or loss items as illustrated in the Explanatory Announcement No.1 on Information
Disclosure for Companies Offering Their Securities to the Public – Non-recurring Profits or losses are defined by
the Company as its recurring profits or losses during the reporting period.
12Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Section III Discussion and Analysis of the Management
I. Industry Overview during the Reporting Period
The Company has been engaged in the TOOLS & storage industry. Its products mainly include hand tools & storage
as well as power tools & laser measurement which are mainly used in the fields of home maintenance construction
engineering vehicle maintenance surveying and mapping etc. The home building repair and maintenance industry
is the most important application channel with the highest proportion. By the group of clients the industry may be
divided into consumer tools & storage and industrial tools & equipment.In North America and much of the Europe due to the extensive use of detached houses and the large square footage
per inhabitant the repairing and maintenance cost of residential houses is high. Given the high cost of labor
residents in the Europe and North America prefer to repair and maintain houses and outbuildings on their own
giving rising to the popular DIY style in western culture. Considering the large number of cars held by European
and American families the routine repair and maintenance tasks including parts inspection and replacement also
play an important role in the DIY of the families. Various tools as repair and maintenance necessities are highly
needed by families in North America and Europe for professional and DIY purposes which makes the Europe and
North America the most important market with the highest share of tools in the globe.Tool industry the oldest industry has been growing with the human society. For the past century with the increasing
industrialization tools have been improved and refined steadily as a requisite support to manufacture supplies and
commodities. Thanks to the rigid demand and stable replacement cycle the sector of industrial tools has been
growing steadily. Regardless of the financial crisis in 2008 the industry maintained stable upward momentum
aligned with GDP growth after short-term fluctuations.In 2023 the high interest rate in Europe and the United States suppressed real estate trading and industrial
development which forced the end consumption of the tool industry to continue the downward trend in the second
half of 2022. More fatally as the global shipping system went normal in 2022 massive commodities stuck on the
road finally arrive at the channel retailers including large superstores which lifted the inventory-to-sales ratio
hence the commencement of extensive destocking in 2023. The overreaction in consequence resulted in a sharp
drop of orders and thus to the Company suffered from the least year-on-year growth for 18 months the worst record
for the past 30 years.In 2024 considering the uncertainty about the Fed's cutting interest rate the terminal demand of the industry will
continue to fluctuate at a low level. However as the inventories of channel retailers fall to a historical low it is
expected to see demand recovery and restocking in the second half of 2024 or in early 2025.II. Principal Business of the Company during the Reporting Period
During the reporting period the Company continued the development of its main business in consumer tools &
storage in Europe and the United States and also industrial tools & equipment and vigorously promoted the
improvement of product structure and business models. In the face of the sharp decline of ODM business the
Company made every effort to develop its OBM business where we logged an increase in market share against the
downward trend (except the storage) and maintained the growth of hand tools and power tools.During the reporting period the Company registered an operating revenue of RMB10929992802 a year-on-year
decrease of 13.32%. In 2023 the net profit attributable to shareholders of the listed Company amounted to RMB
1691612756 with a year-on-year increase of 19.14% and the net profit attributable to shareholders of the listed
Company after deducing non-recurring gains and losses amounted to RMB 1697490987 with a year-on-year
increase of 16.67%.III. Core Competencies
1. Innovation advantage
Innovation has always been the core of the Company while variety enrichment been the key driver for the growth.The Company has an experienced R&D team for professional tools and non-tool consumer goods which has been
committed to developing and innovating new products upholding the concept that it's the details that make the
difference in refining products in terms of functionality and added value and working to ensure the long-term core
competitiveness of the Company. During the reporting period with an investment of RMB 323 million in R&D the
Company designed 1828 new products applied for more than 200 new patents and granted more than 200 new
13Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
patents; its subsidiary HDKJ was rated as a "Small Giant" by the Ministry of Industry and Information Technology
of the People's Republic of China. The Company developed a variety of new products including knives and pliers
cordless lithium battery power tools and related spare parts laser level rulers and folding knives all of which are
highly recognized in the market. During the reporting period the Company continued extensive innovation in power
tools especially lithium battery power tools. Based on scores of cost-effective and innovative products the
Company obtained orders for cordless lithium battery power tools and related spare parts from large retailers in the
United States. Thanks to its innovation advantage the Company has responded to and seized market opportunities
in a timely manner continued to gain market share and maintained long-term and stable development in the
changeable global tool industry.
2. Brand advantages
The Company specializes in residential durable consumer goods for households and industrial products for
professionals. Brand is the most compelling guarantee for the Company to provide consumers with products and
services over the long term so the Company has been committed to acquiring global leading brands and building
and developing its original brands. During the reporting period the Company acquired TESA (Swiss) and
SCRUFFS (UK) for the purpose of developing high-precision measuring instruments and personal tooling products.Meanwhile the Company spared no effort in developing its original brands and enhancing their brand influence and
brand advantage. Its original brands have achieved stable growth. The sales revenues of brands such as WORKPRO
DuraTech Everbrite and Prexiso have achieved significant YoY growth. In addition the sales revenue of the
Company's original brands accounted for approximately 50% in general. The brand advantage not only further
enhances the international competitiveness of the Company's products but also effectively improves the Company's
gross profit margin and business stability thus ensuring the long-term healthy development of the Company.
3. Channel advantages
The sales channels and the trust of clients are the basis for the continuous development of the Company. The
Company's diversified product mix and sustained innovation capability can not only satisfy the one-stop shopping
demand of channel clients to the greatest extent possible but also constantly reduce its procurement and
Management costs and improve the loyalty of its channel clients. The Company has been one of the largest suppliers
of tools and storage to many large supermarket chains such as The Home Depot Walmart and Lowe's in the United
States Kingfisher in Europe and CTC in Canada. It has also expanded its product categories based on these clients.There are now more than 20000 large supermarket chains worldwide that sell a wide range of the Company's
products including those for hardware building materials and automotive parts. These channels effectively
contribute to the rapid development of various innovative products of the Company. Through three parallel measures
– direct cross-border e-commerce operations acquisition of European and American distribution channels and
establishment of Asia-Pacific distribution channels GreatStar has effectively increased the proportion of direct-to-
customer (DTC) business prioritizing retail customer needs and directly reaching end retail customers. This has not
only effectively enhanced the value proposition of individual products but has also provided firsthand client
feedback to directly inform R&D. With the above-mentioned channel advantage the Company is on track to
continuously develop new products and expand product categories with good market prospects. It has achieved
breakthroughs in some major product categories such as laser measurement storage and power tools.
4. Internationalization advantages
After years of development the Company has initially developed and improved its global supply chain Management
system and established solid cooperation with thousands of suppliers worldwide. It can ensure that its rapid response
to market demand and timely delivery of all kinds of large orders will not be affected by its production capacity.Backed up by the perfect warehousing and distribution system in China the United States and Europe and 21
manufacturing bases worldwide the Company is capable of procurement manufacturing and distribution around
the globe. The perfect distributed manufacturing and processing system of the Company can greatly reduce the costs
of manufacturing and purchase enhance the competitiveness of its products in the end market meet various
demands and respond to the complex external conditions. The Company is picking up as a global resource
allocation Company integrating local services in Europe and South America industrial chains for manufacturing in
Asia and R&D Management in China.
14Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
IV. Analysis of Principal Business
1. Overview
During the reporting period the high interest rate in Europe and the United States suppressed real estate trading and
industrial development which forced the end consumption of the tool industry to continue the downward trend in
the second half of 2022. More fatally as the global shipping system went normal in 2022 massive commodities
stuck on the road finally arrive at the channel retailers including large superstores which lifted the inventory-to-
sales ratio hence the commencement of extensive destocking in 2023. The overreaction in consequence resulted in
a sharp drop of orders.In active response to such adverse situation the Company took direct and effective marketing strategies using its
original brands racking up certain results in expanding distribution channels offline and online and attaining
increase in sales of original brands. Additionally the Company clocked up new breakthroughs in some businesses
pertinent to cost-effective products. With the RMB exchange rate and costs are getting favorable the Company's
profitability is becoming reasonable. During the reporting period the Company registered an operating revenue of
RMB10929992802 a year-on-year decrease of 13.32%. In 2023 the net profit attributable to shareholders of the
listed Company amounted to RMB 1691612756 with a year-on-year increase of 19.14% and the net profit
attributable to shareholders of the listed Company after deducing non-recurring gains and losses amounted to RMB
1697490987 with a year-on-year increase of 16.67%. The performance of each business segment is as follows:
1. Hand Tools & Storage
During the reporting period the Company extended the coverage of its offline distributors especially in the
countries and regions under the Belt and Road Initiative constantly perfected its online channels on the globe which
further enhanced the influence of the Company's own brands and greatly rose the market share; optimized innovative
R&D strategies and leveraged new varieties and products to provide clients with more competitive products which
further increased its market share; actively applied Artificial Intelligence Generated Content tools for content
creation and brand promotion to enhance the image of its original brands.Since clients are actively reducing inventories ODM sales volume of storage declined sharply year-on-year. Lista
continued to stabilize by leveraging its brand premium and actively developing new products and markets.
2. Power Tools & Laser Measurement
During the reporting period the Company acquired again the confirmation of a large retailer to purchase power
tools. Thanks to the new cost-effective products and innovation from various aspects the Company attained great
sales of some power tools with significant increase of overall market share. The Company's original brand of power
tools with substantial year-on-year increase is becoming one of the brands highly recognized by consumers in
Europe and the United States.Despite the annual sales decline due to clients' destocking the Laser Department strove for new customers and new
orders for the sake of market share upon industry recovery by the following means: Improving distribution channels
and enhancing brand recognition and influence with the help of online channels and new media; integrating R&D
system and adjusting product advantages as needed by the market to enhance product attractiveness; expanding
application scenarios of products to seek diversified orders from the market.
2. Revenue and costs
(1) Composition of operating revenue
Unit: RMB
In 2023 In 2022
Proportion in Proportion in YoY increase or
Amount operating Amount operating decrease
income income
Total operating 12610189590.
10929992802.32100%100%-13.32%
income 33
By industry
Tools and 12545286576.
10865309434.6399.41%99.49%-13.39%
hardware 78
15Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Other income 64683367.69 0.59% 64903013.55 0.51% -0.34%
By product
Hand 10004744537.
8066150767.4173.80%79.34%-19.38%
Tools & Storage 61
Power
2540542039.1
Tools & Laser 2799158667.22 25.61% 20.15% 10.18%
7
Measurement
Other income 64683367.69 0.59% 64903013.55 0.51% -0.34%
By region
7892263869.7
America 6968627907.78 63.76% 62.59% -11.70%
5
3296852123.2
Europe 2791945594.80 25.54% 26.14% -15.31%
9
Other 479301687.92 4.39% 634667980.89 5.03% -24.48%
Domestic
625434244.135.72%721502602.855.72%-13.32%
(China)
Other income 64683367.69 0.59% 64903013.55 0.51% -0.34%
By sales model
5087869546.6
OBM 5214848471.29 47.71% 40.35% 2.50%
7
7457417030.1
ODM 5650460963.34 51.70% 59.14% -24.23%
1
Other income 64683367.69 0.59% 64903013.55 0.51% -0.34%
(2) Industries products regions or sales models that account for more than 10% of operating revenue or
operating profit
□√ Applicable □ Not Applicable
Unit: RMB
YoY increase YoY increase YoY increase
Operating Operating or decrease or decrease or decrease
Gross margin
income cost in operating in operating in gross
income cost margin
By industry
Tools and 10865309434 7423231250.
31.68%-13.39%-19.70%5.37%
hardware .63 13
By product
Hand
8066150767.5218734848.
Tools & 35.30% -19.38% -28.82% 8.59%
4142
Storage)
Power
Tools & laser 2799158667. 2204496401.
21.24%10.18%15.29%-3.49%
Measurement 22 71
)
By region
6968627907.4840609092.
America 30.54% -11.70% -15.74% 3.33%
7881
2791945594.1819939673.
Europe 34.81% -15.31% -22.96% 6.47%
8087
By sales model
5214848471.3594939343.
OBM 31.06% 2.50% -6.18% 6.37%
2935
5650460963.3828291906.
ODM 32.25% -24.23% -29.27% 4.83%
3478
Under the circumstances of statistical standard adjustment for the Company's principal business data in the reporting
period the Company's principal business data in the latest one year were adjusted based on the statistical standard
at the end of the reporting period
16Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
□ Applicable √ Not Applicable
(3) Whether physical sales revenue exceeds service revenue
□Yes □ No
Industry YoY increase or
Item Unit In 2023 In 2022
classification decrease
Sales volume PCS 467668618 513462176 -8.92%
Production
PCS 465149330 523831646 -11.20%
Tools and volume
hardware Inventory
PCS 121425975 123945263 -2.03%
volume
Reasons for changes of 30% or more in related data
□ Applicable √ Not Applicable
(4) Performance status of significant sales contracts and major procurement contracts signed by the
Company as of the end of this reporting period
□ Applicable √ Not Applicable
(5) Composition of operating costs
Industry and product classification
Industry and product classification
Unit: RMB
In 2023 In 2022
Industry Proportion of Proportion of YoY increase
Item
classification Amount operating Amount operating or decrease
costs costs
Tools and 7423231250. 924440416
/99.59%99.76%
-19.70%
hardware 13 6.19
Other
22518138.5
operating / 30890842.06 0.41% 0.24% 37.18%
6
costs
Unit: RMB
In 2023 In 2022
Product Proportion of Proportion of YoY increase
Item
classification Amount operating Amount operating or decrease
costs costs
Hand Tools 5218734848. 733218977
/70.01%79.12%-28.82%
& Storage 42 9.90
Power Tools
2204496401.191221438
& laser / 29.58% 20.63%
15.29%
716.29
Measurement
Other
30890842.022518138.5
operating / 0.41% 0.24% 37.18%
66
costs
Note
None
17Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(6) Whether there have been changes in the consolidation scope during the reporting period
□Yes □ No
Refer to Section X Clause VIII for details
(7) Details regarding significant changes or adjustments in the Company's business products or services
during the reporting period
□ Applicable √ Not Applicable
(8) Overview of main sales clients and main suppliers
Main sales clients of the Company
Total sales amount from top five clients (RMB) 5011763646.63
Proportion of total annual sales from top five clients 45.85%
Proportion of related party sales in sales from top five
0.00%
clients to total annual sales
Information of top five clients
Proportion of total annual
Serial No. Client name Sales amount (RMB)
sales
1 1st 2059791262.37 18.84%
2 2nd 1355096167.31 12.40%
3 3rd 1117688761.50 10.23%
4 4th 272149524.96 2.49%
5 5th 207037930.49 1.89%
Total -- 5011763646.63 45.85%
Additional information about main clients
□ Applicable √ Not Applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 310973642.54
Proportion of total annual purchases from top five
5.19%
suppliers
Proportion of related party purchases in purchases
0.00%
from top five suppliers to total annual purchases
Information of top five suppliers
Proportion of total annual
Serial No. Supplier name Purchase amount (RMB)
purchase
1 1st 74106756.45 1.24%
2 2nd 70613529.55 1.18%
3 3rd 64319963.96 1.07%
4 4th 56180975.27 0.94%
5 5th 45752417.31 0.76%
Total -- 310973642.54 5.19%
Additional information about main suppliers
□ Applicable √ Not Applicable
3. Expenses
Unit: RMB
YoY increase or Explanation of
In 2023 In 2022
decrease significant change
18Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
The increase in
sales expenses is
mainly due to the
increase in
expenditures on
Selling expenses 851283975.98 757228439.80 12.42%
personnel salaries
advertising and
promotion
expenses as well as
office expenses
Administrative
776183642.34760961439.862.00%
expenses
1. Management of
idle funds resulted
in increased interest
income; 2.Financial expenses -207501523.06 -110855174.76 87.18% Depreciation of the
RMB led to an
increase in
exchange gains on
financial expenses
R&D expenses 322536093.62 319444535.16 0.97%
4. Research and development investment
□√ Applicable □ Not Applicable
Name of main
Expected impact on
research and
Project purpose Project progress Intended goals Company's future
development
development
project
Automatic slope
leveling red light Improving Increasing sales Increasing the
Completed
laser leveling processes volume Company's profits
instrument
High-brightness
green light 12-line Improving Increasing sales Increasing the
Completed
on-wall laser processes volume Company's profits
leveling instrument
Application of PVD
Enhancing technical
vacuum coating on Increasing output Increasing the
requirements for Completed
aluminum alloy value Company's profits
products
lamps
Developing a series
of multifunctional
disassembly and
assembly storage
boxes with a
Development of modular structure to
multifunctional effectively reduce Expanding product
Developing new
disassembly and product packaging Completed lines and increasing
products
assembly storage volume thereby revenues
box series cutting costs and
enhancing market
competitiveness.Upon successful
R&D and
industrialization
19Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
estimated annual
sales volume is
10000 units with
projected annual
sales revenue of 3
million RMB
achieving an
average annual
profit of 250000
RMB.Developing a
collapsible multi-
purpose outdoor
utility cart series
with simplified
folding mechanisms
and assembly
methods to
facilitate easier
assembly and
folding while
maintaining
stability when
loaded. Utilizing
Research and bolt and latch
development of connections to Expanding product
Developing new
collapsible multi- reduce consumer Completed lines and increasing
products
purpose outdoor installation time revenues
utility cart series and assembly
difficulty. Upon
successful R&D
and
industrialization
estimated annual
sales volume is
8000 units with
projected annual
sales revenue of 9.6
million RMB
achieving an
average annual
profit of 960000
RMB.Developing a
foldable miter saw
stand with a
proprietary slot
sliding mechanism
and reverse latch
Development of Expanding product
technology to easily Developing new
foldable miter saw Completed lines and increasing
adjust the gaps at products
stand revenues
both ends of the
product and save
storage space when
folded. Upon
successful R&D
and
20Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
industrialization
estimated annual
sales volume is
20000 units with
projected annual
sales revenue of 10
million RMB
achieving an
average annual
profit of 900000
RMB.Developing a
multifunctional
combination
workstation with
independently made
cabinets and
universal note-
support pillars on
hanging boards for
convenient
consumer
Development of customization and
Expanding product
multifunctional installation. Upon Developing new
Completed lines and increasing
combination successful R&D products
revenues
workstation and
industrialization
estimated annual
sales volume is 500
units with
projected annual
sales revenue of 5
million RMB
achieving an
average annual
profit of 800000
RMB.Development of Developing
Expanding product
intelligent blade intelligent blade Developing new
To be completed lines and increasing
tool management tool management products
revenues
equipment equipment
Research and
Developing the
development of
ultra-high-power Expanding product
ultra-high-power Developing new
professional-grade To be completed lines and increasing
professional grade products
blast furnace revenues
blast furnace
(10KW)
(10KW)
Development of Developing
Expanding product
industrial-grade industrial-grade Developing new
To be completed lines and increasing
heavy-duty heavy-duty products
revenues
toolboxes toolboxes
Integrated Improving
application and production Reducing labor and
Innovative
research and efficiency and improving
Completed products filling
development of developing products construction
market gaps
laser long-distance with a new mode of efficiency
ranging technology operation
21Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
and laser leveling
instrument
Application and
research and
development of High-precision and Platform
Innovative
large-angle high- high-value technology
Completed platforms filling
precision attitude innovative expanding new
market gaps
control sensors in technology clients
laser measurement
instruments
Application and
research and
development of
Application of a full Innovative
high-precision Platform
waveform platforms
panoramic three- To be completed technology for laser
measurement increasing product
dimensional laser products
technology added value
imaging system
based on single-
photon array
Application and
research and
development of Application of new
high-precision new technologies
Increasing product Enriching product
long-focal-length To be completed exploring new
added value lines
optical path system clients and
platform for line increasing revenues
and point projection
instruments
System application
and research and
development of
Application of new
2D/3D laser
technologies
ranging with Increasing product Enriching product
To be completed exploring new
intelligent receivers added value lines
clients and
equipped with high-
increasing revenues
precision
position/angle
sensors
The development
and Develop new Stabilize market
industrialization of Enhance product products and expand customer
3D visual sensor functionality or Completed enhance product base enhance
with high-resolution performance manufacturing market
and large imaging technology competitiveness
range
Large injection Develop new Stabilize market
mold based on Enhance product products and expand customer
"deterministic mold functionality or Completed enhance product base enhance
airbag polishing performance manufacturing market
technology" technology competitiveness
Application of Develop new Stabilize market
modified PETG Enhance product products and expand customer
material in functionality or Completed enhance product base enhance
transparent performance manufacturing market
toolboxes technology competitiveness
Application of Enhance product Develop new Stabilize market
Completed
metal surface nano functionality or products and expand customer
22Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
molding technology performance enhance product base enhance
(NMT) in tool manufacturing market
products technology competitiveness
Develop new Stabilize market
Process solution for Enhance product products and expand customer
application of LED functionality or Completed enhance product base enhance
flexible light strips performance manufacturing market
technology competitiveness
Application of eco-
Develop new Stabilize market
friendly wood
Enhance product products and expand customer
plastic injection
functionality or Completed enhance product base enhance
molding technology
performance manufacturing market
in hand tool
technology competitiveness
products
Development and Develop new Stabilize market
research of rapid Enhance product products and expand customer
folding height- functionality or Completed enhance product base enhance
adjustable efficient performance manufacturing market
flooring nail gun technology competitiveness
Application of rare
Develop new Stabilize market
earth strengthened
Enhance product products and expand customer
high-strength low-
functionality or Completed enhance product base enhance
cost high-
performance manufacturing market
aluminum zinc
technology competitiveness
alloy in tools
Development and
Develop new Stabilize market
application of smart
Enhance product products and expand customer
tool cabinet based
functionality or Completed enhance product base enhance
on ultra-high
performance manufacturing market
frequency RFID
technology competitiveness
technology
Develop new Stabilize market
Application of
Enhance product products and expand customer
ellipsoid algorithm
functionality or Completed enhance product base enhance
in laser digital
performance manufacturing market
inclinometer
technology competitiveness
Develop new Stabilize market
Application of Enhance product products and expand customer
smart chips in hand functionality or Completed enhance product base enhance
tools performance manufacturing market
technology competitiveness
Application Develop new Stabilize market
research of high- Enhance product products and expand customer
power laser drive functionality or Completed enhance product base enhance
module in lighting performance manufacturing market
products technology competitiveness
Application of
Develop new Stabilize market
high-strength wear-
Enhance product products and expand customer
resistant fatigue-
functionality or Completed enhance product base enhance
resistant CrMo steel
performance manufacturing market
in high-end pliers
technology competitiveness
products
Application of Develop new Stabilize market
super-hard TaC Enhance product products and expand customer
diamond coating functionality or Completed enhance product base enhance
technology on blade performance manufacturing market
tools technology competitiveness
23Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Development and Develop new Stabilize market
application of Enhance product products and expand customer
portable high- functionality or Completed enhance product base enhance
performance stone performance manufacturing market
cutting tools technology competitiveness
Development and
Develop new Stabilize market
application of high-
Enhance product products and expand customer
torque external
functionality or Completed enhance product base enhance
rotor brushless
performance manufacturing market
motor in power
technology competitiveness
tools
Development and Develop new Stabilize market
application of clean Enhance product products and expand customer
products based on functionality or Completed enhance product base enhance
new energy performance manufacturing market
technologies technology competitiveness
Develop new Stabilize market
Application of AI
Enhance product products and expand customer
facial recognition
functionality or Completed enhance product base enhance
technology into tool
performance manufacturing market
storage
technology competitiveness
Application and
development of Develop new Stabilize market
high-precision laser Enhance product products and expand customer
ranging chips in functionality or Completed enhance product base enhance
multi-functional performance manufacturing market
laser measurement technology competitiveness
tools
Development of Enhancing system
Meeting the needs
Phase II toolmall functionality and Fulfilling business
Completed of multi-mode
cloud platform operational development needs
business expansion
project efficiency
Enhancing system
International e- Meeting the needs
functionality and Fulfilling business
commerce Completed of multi-mode
operational development needs
middleware system business expansion
efficiency
Surface treatment
process research for Improving product
Ensuring product Expanding product
die-cast surface of performance and Completed
stability lines
hand tool double- stability
sided blade rack
Research on multi-
position continuous Increasing
riveting process for production Reducing the Expanding product
Completed
extrusion gun efficiency and number of workers lines
shaped sheet metal reducing labor costs
parts
Development of
integrated handheld
Improving product
rechargeable Ensuring product Expanding product
performance and Completed
flashlight with stability lines
stability
touch digital focus
functionality
Development of Energy-saving and
high waterproof environmentally Ensuring product Expanding product
To be completed
grade handheld friendly practices stability lines
high-power LED improving product
24Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
lighting fixtures performance and
stability
Infinitely rotatable
handheld clamp
Improving product
with a main body Ensuring product Expanding product
performance and Completed
that can freely stability lines
stability
rotate according to
usage conditions
Design and
application of Increasing
Further enhancing
automatic feeding production Reducing the
To be completed automation in
multi-position efficiency and number of workers
production
progressive die for reducing labor costs
sheet metal parts
Development of
drive circuit for
handheld device Improving product
Ensuring product Expanding product
with power bank performance and Completed
stability lines
and multi- stability
functional LED
features
Further advancing
automation in
production/Increasi
ng the Company
profits/Boosting
Application and Saving labor costs Saving labor costs revenue/Securing
research of polymer and improving and improving stable market
To be completed
stackable box production production orders/Improving
technology efficiency efficiency product coating
adhesion to reduce
scrap
rates/Enhancing
production
efficiency
Further advancing
automation in
production/Increasi
ng the Company
profits/Boosting
Application and Saving labor costs Saving labor costs revenue/Securing
research of quick and improving and improving stable market
To be completed
break structure for production production orders/Improving
art knife blades efficiency efficiency product coating
adhesion to reduce
scrap
rates/Enhancing
production
efficiency
Further advancing
automation in
Application and Saving labor costs Saving labor costs production/Increasi
research of polymer and improving and improving ng the Company
To be completed
anti-unbuckling production production profits/Boosting
technology efficiency efficiency revenue/Securing
stable market
orders/Improving
25Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
product coating
adhesion to reduce
scrap
rates/Enhancing
production
efficiency
Further advancing
automation in
production/Increasi
ng the Company
profits/Boosting
Research and Saving labor costs Saving labor costs revenue/Securing
application of and improving and improving stable market
To be completed
polymer automatic production production orders/Improving
tensioning device efficiency efficiency product coating
adhesion to reduce
scrap
rates/Enhancing
production
efficiency
Further advancing
automation in
production/Increasi
ng the Company
Application and profits/Boosting
research of Saving labor costs Saving labor costs revenue/Securing
automatic assembly and improving and improving stable market
To be completed
technology for production production orders/Improving
plastic handle tail efficiency efficiency product coating
nails adhesion to reduce
scrap
rates/Enhancing
production
efficiency
The tiger wrench
This eight-in-one has a total of 8
tiger wrench torque heads on
features four both ends allowing
Development of an
specifications on for multiple
eight-in-one tiger Completed Increase revenue
each side utilizing specification uses in
wrench
spring steel balls for one tool capturing
specification a certain market
positioning share of specialty
wrenches
Adding dimples for After the functional
orientation on upgrade of the new
traditional water DT water pump
Research and
pump pliers pliers they become
development of
upgrading Completed easier to use and Increase revenue
new DT water
functionality for more visually
pump pliers
easier and more appealing gaining a
aesthetically certain market share
pleasing use upon market release
Research and VDE insulated VDE insulated
development of screwdrivers feature screwdrivers with
Completed Increase revenue
VDE electrician internally forged an external double-
screwdrivers components and an layered integral
26Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
externally double- rubber coating
layered integral offer safety
rubber coating assurance to
insulating currents operators securing
above 1000V to a certain market
provide operators share in the
with safety electrician
assurance. screwdriver market
This ratchet wrench By enabling one
has dual-headed wrench to handle
reversible four different nut
functionality with specifications the
two specifications efficiency of the
Development of
set within each wrench is enhanced
standard four-in- Completed Increase revenue
ratchet ring on both providing
one ratchet wrench
heads enabling one convenience and
wrench to handle speed capturing a
four different nut certain market share
tightening and in the ratchet
loosening functions. wrench market
Addressing the
challenge of
difficult snap ring
This design
assembly in ratchet
enhances the
wrenches this
efficiency of snap
machine is designed
Development of ring assembly in
to clamp the ratchet
semi-automatic ratchet wrenches Advance
ring and snap ring Completed
snap ring assembly capturing a certain automation further
using pneumatic
machine market share in the
cylinders with a
assembly market
head cylinder
for ratchet
pushing the ratchet
wrenches.ring into the wrench
head to complete
the assembly
The unique design
This wrench design of this quick
employs a method wrench allows for
Research and
where two wrench rapid opening and
development of
bodies separate and generates a ratchet
full-contact Completed Increase revenue
open providing effect offering
multifunctional
ratchet effects when practicality and
quick wrench
tightening or innovation thus
loosening bolts. securing a certain
market share.This wrench
features an S- The wrench
shaped mouth with prevents bolts from
toothed flange and a slipping during
V-shaped structure tightening and
Development of
on top of the loosening
novel anti-slip dual- Completed Increase revenue
traditional open enhancing anti-slip
use wrench
design providing effectiveness thus
anti-slip securing a certain
functionality during market share post-
usage eliminating sales.the common
27Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
slipping issue
associated with
conventional open-
end wrenches.This anti-slip offset
spanner effectively
This novel anti-slip
prevents slipping
offset spanner
during bolt
based on the
tightening and
Research and conventional
loosening
development of hexagonal design
Completed processes Increase revenue
novel anti-slip incorporates
achieving good
offset spanner grooves on three
anti-slip results and
sides to enhance
potentially
bolt anti-slip
capturing a certain
functionality
market share upon
sales
Increasing mass
Large-scale multi-
production of
channel multi- Development of
company products
reflection optical intrinsically safe Enhancing the
expanding
path scanning multi-line laser Completed company's
production lines
perception laser radar level sensor economic benefits
and enhancing
sensing detection for mining use
product
device
competitiveness
Increasing mass
Heavy-duty multi- production of
Development of
channel three- company products
intrinsically safe Enhancing the
dimensional spatial expanding
multi-line laser Completed company's
scanning perception production lines
radar level sensor economic benefits
laser sensing and enhancing
for mining use
detection device product
competitiveness
Increasing mass
Lightweight ultra- Developing new production of
small near-distance products through company products
Enhancing the
multi-angle projects including a expanding
Completed company's
scanning perception V-series laser radar production lines
economic benefits
laser sensing and a C-series laser and enhancing
detection device radar product
competitiveness
Developing a high- Increasing mass
precision mapping production of
High-precision
laser product with company products
near-distance Enhancing the
millimeter-level expanding
scanning mapping To be completed company's
accuracy for digital production lines
laser sensing economic benefits
modeling in the and enhancing
detection device
construction product
industry competitiveness
Increasing mass
production of
Redundant safety
company products
near-distance Enhancing the
Developing a safety expanding
scanning perception To be completed company's
radar production lines
laser sensing economic benefits
and enhancing
detection device
product
competitiveness
28Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Increasing mass
production of
Small pure solid- Developing a C-
company products
state near-distance series laser radar for Enhancing the
expanding
scanning perception low-cost To be completed company's
production lines
laser sensing commercial laser economic benefits
and enhancing
detection device radar applications
product
competitiveness
Making vacuum
Development of
cleaners more Enhancing the
efficient and
energy-efficient and Completed company's Increase revenue
energy-saving
environmentally economic benefits
vacuum cleaners
friendly
Development of Enhancing the
Reducing the noise
silent high-flow Completed company's Increase revenue
of vacuum cleaners
vacuum cleaners economic benefits
Research and
Enhancing the
development of Enhancing the
cleaning
dual-purpose pipes Completed company's Increase revenue
effectiveness of
and vacuum economic benefits
vacuum cleaners
cleaners
Improvement and
development of Improving the Enhancing the
self-sealing usability of vacuum Completed company's Increase revenue
drainage covers for cleaners economic benefits
vacuum cleaners
Developing
efficient vacuum
Application of motors using
Enhancing the
immersion-free aluminum paint
Completed company's Increase revenue
paint in efficient winding (more
economic benefits
aluminum motors efficient than
existing copper
wire motors)
Application of fluid
Enhancing the
dynamics-based
suction power of Enhancing the
efficient and
vacuum cleaners Completed company's Increase revenue
energy-saving new
while reducing economic benefits
impellers in
energy consumption
vacuum cleaners
Research and
development of Developing more Enhancing the
children's convenient and Completed company's Increase revenue
mechanical tool efficient products economic benefits
components
Application of
Improving Enhancing the
robots in the Further automation
production Completed company's
welding of vacuum of production
efficiency economic benefits
cleaner iron barrels
Effectively
Research on
completing the Enhancing the
vacuum cleaner Expand the product
combing and To be completed company's
nozzles with pet line
collection of pet economic benefits
brushes
hair
Development of Enabling lighting Enhancing the
Expand the product
vacuum cleaners functions of To be completed company's
line
suitable for use in vacuum cleaners economic benefits
29Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
dark environments
Research and
development of
Expand product
high-efficiency
Developing new Developing new lines increase
wireless charging To be completed
products products company revenue
technology for
and profit
power tools and
cabinets
Research and Expand product
development of Developing new Developing new lines increase
To be completed
leak-proof RFID products products company revenue
technology cabinets and profit
Research and
Expand product
development of
Developing new Developing new lines increase
smart password To be completed
products products company revenue
lock combination
and profit
cabinets
Research and
Expand product
development of
Developing new Developing new lines increase
high-strength VCM To be completed
products products company revenue
laminated board
and profit
toolboxes
Research and
Expand product
development of
Developing new Developing new lines increase
smart following To be completed
products products company revenue
technology tool
and profit
carts
Research and Expand product
development of Developing new Developing new lines increase
To be completed
modular tool products products company revenue
storage and profit
Research and Expand product
development of Developing new Developing new lines increase
To be completed
smart voice tool products products company revenue
carts and profit
Research and
development of a Expand product
toolbox product Developing new Developing new lines increase
To be completed
with automatic products products company revenue
drawer welding and profit
functionality
Research and
development of a
Expand product
toolbox product
Developing new Developing new lines increase
with box body To be completed
products products company revenue
welding and
and profit
shaping machine
functionality
Research and Expand product
development of Developing new Developing new lines increase
To be completed
radar sensing tool products products company revenue
carts and profit
Research and Expand product
development of Developing new Developing new lines increase
To be completed
rapid installation products products company revenue
framework products and profit
Research and Enhancing product To be completed Enhancing product Expand product
30Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
development of features features lines increase
high-performance company revenue
wear-resistant anti- and profit
scratch coating
materials
Research and
Expand product
development of
Enhancing product Enhancing product lines increase
outdoor energy To be completed
features features company revenue
storage technology
and profit
for cabinet products
Increasing sales and Increasing sales and
Project 310 (new Successor to the old
To be completed reducing production reducing production
600 series) series
costs costs
Increasing sales and Increasing sales and
Project 330 (new Successor to the old
To be completed reducing production reducing production
780 series) series
costs costs
Increasing sales and Increasing sales and
Project 340 (new Successor to the old
To be completed reducing production reducing production
830 series) series
costs costs
New tool/new Increasing sales of Increasing sales of
Battery nail gun To be completed
technology fasteners fasteners
A new tool Increasing market Increasing market
Battery-powered
succeeding To be completed share of screw share of screw
sorted screwdriver
tethering devices sorting products sorting products
Expanding the Expanding the
autotec product autotec product
Tools used for
Automatic portfolio and portfolio and
automatic To be completed
screwdriver increasing the share increasing the share
tightening
in the automatic in the automatic
screws market screws market
New skater (semi-
Increasing sales and Increasing sales and
automatic tool)
maintaining the maintaining the
Skater Vario considering To be completed
existing market existing market
standardization
share share
changes
Front-end and back-
Automatic end office tools Reducing Reducing
technology reducing labor in Completed management management
configurator autotec order workload workload
processes
Scannable serial Reducing Reducing
RFiD serial
numbers to To be completed management management
numbers
optimize processes workload workload
Digital cone-shaped Increasing sales Increasing sales
box for collecting with the benefits of with the benefits of
Connection box To be completed
data from autotec preventive preventive
tools maintenance maintenance
Tools with special
"ISO Safety" Increasing sales and Increasing sales and
security To be completed
project market share market share
mechanisms
Firmware version
40 Lista Access
New version - Product Sales of functional
version 3.6.0 To be completed
eLock improvements products
Function
improvements
New stretching Drawers are More efficient Reducing
Completed
machine (OLMA) manufactured with production manufacturing costs
31Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
the new machine and improving
(OLMA) quality
The partition
Reducing
materials are
Xinfengdeng and More efficient manufacturing costs
manufactured on Completed
Shiliciwangdanlage production and improving
the new machine
quality
(OLMA)
Hinge fixture
Specially designed Supplement to the Entering more
To be completed Increasing sales
for bicycle shaping product series markets
brackets
Dialogue table
Specially designed Supplement to the Entering more
To be completed Increasing sales
for bicycle product series markets
workshops
Cleaning stations Supplement to the Entering more
To be completed Increasing sales
and accessories product series markets
Disposable hinged Supplement to the Entering more
To be completed Increasing sales
door cabinet product series markets
Reducing
Solo duet procurement and
New-type manufacturing
Entering more
electrically costs. Shorten To be completed Increasing sales
markets
adjustable height delivery times. The
desk entire series of Lista
Erlen
Cost-effective
Compact products that clients Entering more
To be completed Increasing sales
workbench can assemble markets
themselves
Higher load
Increasing sales and
capacity. New
Vertically pull-out maintaining the
product 500 kg To be completed Increasing sales
drawers existing market
previous models
share
200 kg
SmartBox (Small Supplement to the Entering more
Completed Increasing sales
LEC Cabinet) LEC series markets
RFID tags
RFID tags in Entering more
(integrated with GS To be completed Increasing sales
drawer cabinets markets
system)
Reducing Reducing
LEC's ERLOX manufacturing costs More efficient manufacturing costs
To be completed
carriages with high quality production and improving
and eco-friendliness quality
Firmware version
1.2.0
Control through the
neu cabinet
New electronic
correction of Product Sales of functional
control software To be completed
translations in EN improvements products
version
FR IT and ES
simplified user
assignment and
correction of errors
Increasing sales Expanding the
Electronic multi- Expanding the
Completed through new electrified product
position network product range
product groups portfolio
32Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Construction of Production of Reducing costs of
3D printer prototypes and Completed prototypes and external service
small series small batches providers
Status of the Company's R&D personnel
In 2023 In 2022 Rate of turnover
Number of R&D
110510990.55%
personnel (individuals)
Proportion of R&D
10.23%10.41%-0.18%
personnel
Educational background of R&D personnel
Bachelor's degree 397 408 -2.70%
Master's degree 27 24 12.50%
Age composition of R&D personnel
Below 30 years old 180 178 1.12%
30-40 years old 600 599 0.17%
Investment in R&D by the Company
In 2023 In 2022 Rate of turnover
R&D investment amount
322536093.62319444535.160.97%
(RMB)
Proportion of R&D
investment to operating 2.95% 2.53% 0.42%
revenue
capitalized R&D
investment amount 0.00 0.00
(RMB)
Proportion of capitalized
R&D investment to total 0.00% 0.00%
R&D investment
Reasons for significant changes in the composition of R&D personnel in the Company and the impact
□ Applicable √ Not Applicable
Reasons for significant changes in the proportion of R&D investment to operating revenue compared to the previous
year
□ Applicable √ Not Applicable
Reasons for significant changes in the rate of capitalization of R&D investment and the rationale
□ Applicable √ Not Applicable
5. Cash flow
Unit: RMB
Item In 2023 In 2022 YoY increase or decrease
Subtotal of cash inflows
11839414417.1813850370894.60-14.52%
from operating activities
Subtotal of cash outflows
9713559491.5312218534252.21-20.50%
from operating activities
Net cash flows from
2125854925.651631836642.3930.27%
operating activities
Subtotal of cash inflows
274696758.74345733789.20-20.55%
from investing activities
Subtotal of cash outflows
936720309.97860100111.168.91%
from investing activities
33Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Net cash flows from
-662023551.23-514366321.9628.71%
investing activities
Subtotal of cash inflows
2585788685.114690798053.76-44.88%
from financing activities
Subtotal of cash outflows
3817385902.575300549759.79-27.98%
from financing activities
Net cash flows from
-1231597217.46-609751706.03101.98%
financing activities
Net increase in cash and
190552569.13792240939.29-75.95%
cash equivalents
Explanation of the main factors contributing to significant year-on-year changes in relevant data
□√ Applicable □ Not Applicable
Net cash flow from operating activities increased by 30.27% year-on-year primarily due to destocking resulting in
cash received from sales of goods and services exceeding cash paid for purchases of goods and services.Net cash flow from investing activities decreased by 28.71% year-on-year mainly due to the increase in net cash
paid for acquisition of subsidiaries and other operating units in the current year as compared to the previous year;
at the same time cash received from investment income in the previous year included dividends from associates
and there was no cash inflow from dividends in the current period.Net cash flow from financing activities decreased by 101.98% year-on-year primarily due to the comprehensive
impact of the following activities: The Company conducted large-scale fund-raising through the issuance of GDR
in the previous period increasing cash inflows from financing activities and there were no similar activities in the
current period; the company repaid a large amount of loans to shareholders increasing cash outflows from financing
activities in the previous period and there were no similar activities in the current period; meanwhile the
distribution of dividends increased significantly compared to the previous period resulting in an increase in cash
outflows from financing activities.Explanation of significant differences between net cash flow from operating activities and net profit for the year of
the Company during the reporting period
□ Applicable √ Not Applicable
V. Analysis of Non-principal Business
□ Applicable √ Not Applicable
VI. Analysis of Assets and Liabilities
1. Significant changes in the composition of assets
Unit: RMB
End of 2023 At the beginning of 2023 Explanation
Proportion
Proportion in Proportion in of significant
Amount Amount change
total assets total assets change
Monetary 517872781 486320618
26.30%26.15%0.15%
assets 1.76 2.40
There has
been a
change in the
holding mode
of accounts
Accounts 210164307 189668559
10.67% 10.20% 0.47% receivable
receivable 9.19 0.11
shifting from
accounts
receivable
financing to
accounts
34Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
receivable
classification
Contract
0.000.00%0.000.00%0.00%
assets
The
Company has
strengthened
inventory
Management
256930247281257252
Inventories 13.05% 15.12% -2.07% increased
8.805.68
inventory
turnover and
reduced
inventory
balance
Investment 117273455. 122158556.
0.60%0.66%-0.06%
property 37 01
Increased
investment
income
recognized
Long-term under the
295057447254452351
equity 14.99% 13.68% 1.31% equity
7.947.55
investments method for
joint ventures
and other
equity
changes
Caused by
the
conversion of
factory
buildings of
the
172680688151890223
Fixed assets 8.77% 8.17% 0.60% manufacturin
2.042.96
g base in
Vietnam to
fixed assets
and increased
equipment
purchases
Caused by
the
conversion of
factory
Construction 270199288. 304599362. buildings of
1.37%1.64%-0.27%
in progress 71 46 the
manufacturin
g base in
Vietnam to
fixed assets
Right-of-use 378820165. 417129361.
1.92%2.24%-0.32%
assets 25 41
Repayment
Short-term 110324789 137906271 of maturing
5.60%7.42%-1.82%
borrowings 9.65 3.11 debts and
reduction in
35Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
new
borrowings
according to
the fund
utilization
plan for the
period
Contractual 147202549. 131898420.
0.75%0.71%0.04%
liabilities 06 14
Mainly
attributed to
the
reclassificati
on of long-
term loans
Long-term 798604951.
708270.00 0.00% 4.29% -4.29% maturing
borrowings 84
within one
year into
non-current
liabilities due
within one
year
Lease 283800769. 318221349.
1.44%1.71%-0.27%
liabilities 92 99
Higher proportion of overseas assets
□√ Applicable □ Not Applicable
Proportio
n of Whether
Control
overseas there is
Reason measures
Operating Profitabili assets in material
Item for Size Location to ensure
model ty the risk of
formation asset
Company' impairme
safety
s net nt
assets
Financial
Lista
Independ supervisi
Holding Equity RMB
Switzerla ent on and
AG's acquisitio 241.3969 Profitable 1.61% No
nd accountin entrusting
100% n million
g external
equity
audit
Financial
Arrow
Independ supervisi
Fasterner Equity RMB
ent on and
Co. LLC acquisitio 484.8587 The US Profitable 3.23% No
accountin entrusting
100% n million
g external
equity
audit
2. Assets and liabilities measured at fair value
□√ Applicable □ Not Applicable
Unit: RMB
Gains and Cumulati Impairme Purchase Sales
Opening losses ve fair nt in the amount in amount in Other Closing
Item
balance from fair value current the the changes balance
value changes period current current
36Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
changes recognize period period
in the d in
current equity
period
Financial assets
1.
Transacti
onal
financial
assets 6000000 26300000 21522800 1082442
472251.49 (excludin 0.00 0.00 0.00 51.49
g
derivative
financial
assets)
2.
Derivativ
10230103999322.31440653
e 177104.98
4.2401.52
financial
assets
4.
Investme
nt in
16550001655000
other
0.000.00
equity
instrumen
ts
Financial
86780104471573.726300000215228001392007
assets 0.00 0.00 177104.98
4.2490.000.0083.01
subtotal
Above 8678010 4471573.7 26300000 21522800 1392007
0.000.00177104.98
total 4.24 9 0.00 0.00 83.01
-
Financial 4841371 3227726
45703477.517493.08
liabilities 0.29 14 .23
Other changes
Other changes are due to exchange rate fluctuations.Whether there have been significant changes in the measurement attributes of the Company's major assets in the
reporting period
□ Yes √□ No
3. Restricted asset rights as of the end of this reporting period
Closing book Book value at the Types of
Item Reason for restriction
balance end of the period restrictions
Guarantee deposit for
Monetary assets 144071225.10 144071225.10 Pledged
short-term loan
Pledged Guarantee deposit for
Monetary assets 21496066.60 21496066.60 forward settlement of
exchange and sale
Pledged Deposits for letter of
Monetary assets 16290210.00 16290210.00
credit
Pledged Guarantee deposit for
Monetary assets 6388901.19 6388901.19
bank acceptance
37Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Closing book Book value at the Types of
Item Reason for restriction
balance end of the period restrictions
Pledged
Monetary assets 3541350.00 3541350.00 Deposits for credit card
Pledged Deposits for customs
Monetary assets 1416859.57 1416859.57
guarantees
Pledged
Monetary assets 1494449.70 1494449.70 Premium for lease
Pledged Guarantee deposit for
Monetary assets 49000.00 49000.00
ETC
Mortgage for bank
Fixed assets 40901325.49 25832626.15 Mortgaged
acceptance
Fixed assets 20789909.21 9133057.17 Mortgaged Mortgage for bank loan
Mortgage for bank
Intangible assets 3198505.51 1982663.42 Mortgaged
acceptance
Intangible assets 2451822.91 1336350.05 Mortgaged Mortgage for bank loan
Total 262089625.28 233032758.95
VII. Analysis of Investment Status
1. Overview
□√ Applicable □ Not Applicable
Investment amount in the reporting Investment amount in the same
Changes
period (RMB) period of the previous year (RMB)
1612594667.461529848856.935.41%
2. Major equity investment acquired during the reporting period
□√ Applicable □ Not Applicable
Unit: RMB
Inve
Prog
stme
Inve ress Disc Disc
Inve Inve Hold Inve Exp nt Litig
sted Prin Sour as of losur losur
stme stme ing stme Prod ecte gain/ ation
Com cipal ce of Part bala e e
nt nt prop nt uct d loss invo
pany busi fund ner nce date inde
meth amo ortio dura type retur for lvem
nam ness s shee (if x (if
od unt n tion ns the ent
e t any) any)
peri
date
od
Hold
ing
GRE
Com Lon
ATS
pany g-
TAR Self-
New 513 term
UNI own Per Com 1106 1106
cloth esta 481 100. equit
TED ed / man plete 239. 239. No
ing blish 870. 00% y
KIN fund ent d 03 03
and ment 38 inve
GD s
foot stme
OM
wear nts
LTD
whol
esale
Tota -- -- 513 -- -- -- -- -- -- 1106 1106 -- -- --
38Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
l 481 239. 239.
870.0303
38
3. Major ongoing non-equity investment during the reporting period
□√ Applicable □ Not Applicable
Unit: RMB
The
Accu Reaso
cumul
mulat ns for
ative
ed not
actual
Indust Invest earnin meeti
invest
ry ment gs ng
Fixed ment Discl Discl
Invest invol durin Proje Expec realiz plann
Proje asset amou Sourc osure osure
ment ved in g the ct ted ed as ed
ct invest nt as e of date index
metho invest report progr return of the progr
Name ment of the funds (if (if
d ment ing ess s end ess
or not end any) any)
projec perio of the and
of the
t d report expec
report
ing ted
ing
perio return
perio
d s
d
Intelli
gent
Facto
ry
Proje
ct
with
an Funds
Annu Powe 1039 1231 raised
Self- 95.00
al Yes r 6382 6427 and 0.00 0.00 /
built %
Outpu tools 6.00 3.56 own
t of 1 funds
Millio
n Sets
of
New
Powe
r
Tools
10391231
Total -- -- -- 6382 6427 -- -- 0.00 0.00 -- -- --
6.003.56
4. Investment in financial assets
(1) Investment in securities
□ Applicable √ Not Applicable
The Company did not invest in securities during the reporting period.
(2) Investment in derivatives
□√ Applicable □ Not Applicable
39Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
1) Investment in derivatives for hedging purpose during the reporting period
□√ Applicable □ Not Applicable
Unit: ten thousand RMB
Proportio
n of the
Gains and closing
Cumulati
losses amount in
ve fair Purchase Sales
from fair the
Initial value amount in amount in
Opening value Closing Company'
Type investme changes the the
amount changes amount s net
nt amount recognize reporting reporting
in the assets at
d in period period
current the end of
equity
period the
reporting
period
Forward
306895.99306895.994970.280251313.69398246.99164932.9710.99%
exchange
Total 306895.99 306895.99 4970.28 0 251313.69 398246.99 164932.97 10.99%
Significa
nt
changes
in the
accountin
g policies
and
specific
accountin
g
principles
of
hedging Unchanged
business
during
the
reporting
period
compared
to the
same
period in
the
previous
year
Actual
profits or
losses
The investment income related to derivative investments recognized during the reporting period
during
amounted to RMB -84843046.20.the
reporting
period
During the reporting period the Company adhered to the principle of risk neutrality with respect to
foreign exchange rates and entered into forward foreign exchange contracts as hedging instruments
Effect of
according to the amount of foreign exchange receipts estimated based on the sales as well as
hedging
exchange rate targets with the delivery time and the agreed delivery amount matching the expected
cash amount so as to avoid the risks caused by exchange rate fluctuations. During the report period
40Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
the changes in the cash flows of the hedging instruments were able to offset the changes in the cash
flows of the hedged projects caused by the risk of exchange rate fluctuations thereby satisfying the
hedge effectiveness requirement and achieving the hedging objective.Source of
funds for
investme
Self-owned funds
nt in
derivative
s
1. Market risk: Changes in international and domestic economic conditions may lead to large
fluctuations in foreign exchange rates and therefore forward foreign exchange transactions will
Position
subject to certain market risks. The Company's forward foreign exchange transactions aim to lock in
risk
the settlement or sale price of foreign exchange and reduce the impact of exchange rate fluctuations
analysis
on the Company's profits. The Company will closely monitor changes in exchange rates and
and
determine the plan to enter into forward foreign exchange contracts based on the target exchange
control
rate for transactions the research and evaluation of foreign exchange rate trends as well as the
measures
Company's forecasts of foreign exchange receipts and payments and ability to withstand price
for
changes caused by exchange rate fluctuations. Meanwhile it will ensure a reasonable profit level
derivative
through dynamic Management on transactions.s during
2. Liquidity risk: All of the Company's foreign exchange transactions are based on reasonable
the
estimates of the Company's future imports and exports and meet the requirements of transaction
reporting
authenticity.period
3. Bank default risk: In the event of a bank default such as a bank failure during the term of the
(includin
contract the Company will not be able to deliver the original foreign exchange contract at the
g but not
contract price and will be exposed to the risk of uncertain returns. As a result the Company chooses
limited to
to conduct foreign exchange transactions with the five major state-owned banks Chinese-funded
market
banks such as CMB and foreign-funded banks such as HSBC and SCB. These banks have strong
risk
strength and stable operations and the risk of their failure causing losses to the Company is very
liquidity
low.risk
4. Operational risk: The Company's forward foreign exchange transactions may give rise to related
credit
risks due to the improper operation of undertakers. The Company has developed relevant
risk
Management systems and defined the operating procedures and responsible persons which are
operation
conducive to the prevention and control of risks.al risk
5. Legal risk: Legal disputes may arise if the Company engages in forward foreign exchange
legal risk
transactions and enters into unclear contracts or agreements with banks for such transactions. The
etc.)
Company will legally strengthen the review of relevant contracts and select banks with good credit
ratings to conduct such transactions in order to control the risks.Changes
in the
market
prices or
the fair
values of
the
invested
derivative
s during
N/A
the
reporting
period
the
analysis
of the fair
values of
derivative
s shall
disclose
41Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
the
specific
method
used and
the
setting of
relevant
assumptio
ns and
parameter
s
Whether
it is
involved
in
N/A
litigation
(if
applicabl
e)
Date of
announce
ment of
the Board
Meeting
to 22 April 2023
approve
investme
nt in
derivative
s (if any)
Date of
announce
ment of
the
Sharehold
ers'
Meeting 23 May 2023
to
approve
investme
nt in
derivative
s (if any)
Special
opinion
of the
independ
ent It is necessary for the Company to enter into foreign exchange derivative transactions that meet the
directors needs of the Company's actual operations and can reduce the impact of exchange rate fluctuations
on the on the Company's profits to a certain extent. The Company has developed the Management System
Company' of Foreign Exchange Derivative Transactions and effective risk control measures in accordance with
s relevant laws and regulations. We concur with the Company's proposal to engage in foreign
investme exchange derivative transactions for the fiscal year 2023.nt in
derivative
s and risk
control
42Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2) Investment in derivatives for speculative purposes during the reporting period
□ Applicable √ Not Applicable
The Company did not invest in derivatives for speculative purposes during the reporting period.
5. Use of raised funds
□√ Applicable □ Not Applicable
(1) Overall use of raised funds
□√ Applicable □ Not Applicable
Unit: RMB ten thousand
Total
Propor
funds Funds
Total tion of
Total raised that
funds total Use
funds for have
Total raised raised and
Fund- used altered Total been
Fund- Total Net funds cumul funds allocat
raising during purpos unuse idle
raising raised funds used atively cumul ion of
metho the e d for
year funds raised cumul for atively unuse
d curren during funds more
atively altered for d
t the than
purpos altered funds
period reporti two
e purpos
ng years
e
period
Depos
it into
Issue
special
conver 96512 14909 88915 13494 13.87 11530
2020 97260 0 fundra 0
tible .15 .48 .82 .42 % .14
ising
bonds
accou
nt
9651214909889151349413.8711530
Total -- 97260 0 -- 0.15.48.82.42%.14
Overall use of raised funds
According to the Response to Approval of Public Issue of Convertible Bonds for Hangzhou GreatStar Industrial
Co. Ltd. (CSRC License [2019] No. 2656) from CSRC the Company is authorized to issue convertible bonds in
an amount not exceeding RMB 97260 million. China Securities Co. Ltd. the lead underwriter shall give priority
to the original shareholders of the Company for placement and the balance after the prior placement to the
original shareholders (including the portion waived by the original shareholders) shall be issued to public
investors via the Internet. The undersubscribed portion of the subscription amount of RMB 97260 million shall
be underwritten by the lead underwriter. The Company actually issued 9726000 convertible corporate bonds
with a face value of RMB 100.00 each raising a total of RMB 97260 million. After deducting the underwriting
and sponsor fees of RMB 5188679.25 (excluding tax) the funds raised amounted to RMB 967411320.75
which has been remitted to the regulatory account of the Company's raised fund by the lead underwriter China
Securities Co. Ltd. on July 2 2020. In addition after deducting external expenses of RMB 2289867.92 directly
related to the issuance of convertible corporate bonds such as the underwriting and sponsor fees audit and capital
verification fees attorney fees credit rating fees information disclosure fees for the issuance lottery fees and
bond issuance registration fees the Company raised a net amount of RMB 965121452.83. The above raised
funds have been verified by Pan-China Certified Public Accountants LLP (Special General Partnership) with the
Verification Report (Pan-China verified [2020] No. 244) issued by the LLP.As of December 31 2023 the Company has invested a total of RMB 889.1582 million in the raised funds. The
net interest income of the raised funds is RMB 38.1179 million the gains from exchange of financial expenses
are RMB 1.2202 million. As of December 31 2023 the account balance of the raised funds account is RMB
115.3014 million.
43Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(2) Committed investment projects of raised funds
□√ Applicable □ Not Applicable
Unit: ten thousand RMB
Commi Whethe Whethe
tted r the Invest Whethe r there
Accum Date of Benefit
invest project Total Invest ment r have
Total ulative achievi s
ment has commit ment progres expecte been
invest invest ng achieve
project been ted during s at the d signific
ment ment at expecte d in the
s and altered invest the end of benefit ant
after the end d current
allocati (includi ment of reporti the s have change
alterati of the conditi reporti
on of ng funds ng period been s to the
on (1) period ons for ng
over- partiall raised period (3) = achieve feasibil
(2) use period
raised y (2)/(1) d ity of
funds altered) project
Committed investment projects
Laser
Measur
ement
and
Smart
Home 20394. Decem
No 20426 20426 3432 99.85% 0 N/A No
Product 59 ber
ion 2023
Base
Constr
uction
Project
Tool
Storage
Product
ion 13281. 13281. 100.00 1192.6
Yes 26776 N/A Yes
Base 58 58 % 7
Constr
uction
Project
Intellig
ent
Wareho
using
Decem
and 22542. 22542. 7933.7 15650.No 69.43% ber 31 0 N/A No
Logisti 15 15 9 85
2024
cs Base
Constr
uction
Project
R&D
Center
3543.6 7094.3 Decem
Constr No 7768 7768 91.33% 0 N/A No
9 8 ber
uction
2023
Project
Capital
increas
13494. 13494. 100.00 2 July
e to No 8054.78 N/A No
4242%2021
subsidi
aries
44Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
and
acquisit
ion of
100%
equity
of
Geelon
g
Holdin
gs
Limite
d held
by
Geelon
g
Orchid
Holdin
gs Ltd.Subtota
l of
commit
ted 77512. 77512. 14909. 69915.------9247.45----
invest 15 15 48 82
ment
project
s
Allocation of over-raised funds
N/A
Repleni
shment
of 100.00
--190001900019000--------
workin %
g fund
(if any)
Subtota
l of
allocate
--190001900019000--------
d over-
raised
funds
96512.96512.14909.88915.
Total -- -- -- 9247.45 -- --
15154882
Failure I. The reasons why the Company's investments of the funds raised did not meet the planned schedule
s to are as follows:
comple 1. The implementation subjects of the Laser Measurement and Smart Home Production Base
te the Construction Project are Haining GreatStar Intelligent Equipment Co. Ltd. the Company's wholly-
planne owned sub-subsidiary Vietnam GreatStar Intelligence Co. Ltd. and Hangzhou GreatStar Tools Co.d Ltd. the Company's two wholly-owned subsidiaries. The implementation locations of the project are
schedul Lianhang Economic and Technological Development Zone Haining City Zhejiang Province Nam
e and Cau Kien Industrial Park Thuy Nguyen Haiphong Vietnam and Hangzhenggongchu [2020] No. 26
to Plot Jianggan District Hangzhou. The project is expected to be completed by December 31 2022. In
achieve the process of project implementation the Company was constrained by the insufficient global
the shipping capacity in 2021 and H1 2022 so some raw materials and equipment could not be delivered
expecte to the project sites in time thereby affecting the project's progress to a certain extent and delaying the
d completion timeline. In order to ensure the smooth implementation of the project and the maximum
income benefit of the project the 29th Meeting of the 5th Board of Directors and the 1st Extraordinary General
and Meeting of Shareholders in 2023 approved the extension of the project implementation period to
45Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
their December 31 2023.respecti 2. The implementation subject of the Intelligent Warehousing and Logistics Base Construction Project
ve is Haining GreatStar Intelligent Equipment Co. Ltd. the wholly owned sub-subsidiary of the
reasons Company. The implementation location of the project is Lianhang Economic and Technological
(includi Development Zone Haining City Zhejiang Province. The project is expected to be completed by
ng December 31 2022. The addition of wholly-owned subsidiary Vietnam GreatStar Intelligence Co.reasons Ltd. and wholly-owned sub-subsidiary Hangzhou GreatStar Energy Co. Ltd. as one of the
for Implementation Subjects of the Smart Warehousing and Logistics Base Construction Project was
"N/A" approved during the 29th Meeting of the 5th Board of Directors and the 1st Extraordinary General
as to Meeting of Shareholders in 2023. This expansion includes adding Nam Cau Kien Industrial Park Thuy
"Wheth Nguyen Haiphong Vietnam and JG1601-43 Plot Unit of Genbei New District Shangcheng District
er Hangzhou Zhejiang Province as well as Chang'an Town Haining Zhejiang Province as project sites.expecte Simultaneously the investment structure of the project was adjusted and the project implementation
d period extended until December 31 2023. Upon approval by the 4th Meeting of the 6th Board of
benefit Directors due to objective reasons the Smart Warehousing and Logistics Base Construction Project
s have failed to acquire the factory land in Nam Cau Kien industrial park Thuy Nguyen Haiphong Vietnam
been as planned by December 31 2023 resulting in the inability to complete the payment for the
achieve aforementioned land as scheduled. To better facilitate the project implementation and ensure maximum
d") project benefits the Company decided to extend the project implementation period until December 31
2024.
3. The implementation subject of the R&D Center Construction Project is the Company. The
implementation location of the project is the northwest corner of the intersection of Hongpu Road and
Jiuheng Road Jiubao Street Shangcheng District Hangzhou City. The project is expected to be
completed by December 31 2022. In the process of project implementation new products were
continuously launched so it was necessary to adjust the R&D focus to products that are more in line
with the long-term development strategies of the Company. Meanwhile following the consolidation
of the Company through the consolidation of its original wholly-owned subsidiary Lista Holding AG
the planned investments in equipment and software had to be re-evaluated resulting in the failure to
complete the relevant work as planned. In order to make efficient use of the Company's R&D capability
and ensure the maximum benefit of the project the 29th Meeting of the 5th Board of Directors and the
1st Extraordinary General Meeting of Shareholders in 2023 approved the extension of the project
implementation period to December 31 2023.II. Failure to calculate the benefits of the investment projects of raised funds separately
The Intelligent Warehousing and Logistics Base Construction Project is designed to meet the
Company's needs for operational efficiency improvement future business expansion and sustained
development so its benefits cannot be calculated separately. The implementation of R&D Center
Construction Projects is mainly based on product R&D design product trial production and product
testing generating no direct economic benefits. The Replenishment Working Capital Project is
designed to meet the needs of working capital for the continuous expansion of the Company's operating
scale so the benefits cannot be accounted separately.Due to constraints posed by the global shipping capacity shortages some raw materials and equipment
could not be delivered to the project sites on time resulting in certain impacts on the construction
progress of the Company's tool storage production base construction project and causing delays in the
original fundraising project completion timeline. According to the Company's long-term strategic
Descrip
planning and current development needs in order to use the raised funds more efficiently improve the
tion of
Company's existing production capacity and supply capacity faster and better meet clients' needs after
signific
deliberation and approval of the 7th Meeting of 5th Session of Board of Directors and the 2020 Annual
ant
General Meeting of Shareholders the Company used the uninvested raised funds of RMB 134.9442
change
million for the Tool Storage Production Base Construction Project by 5 April 2021 for the acquisition
s in
of 100% equity of Geelong Holdings Limited held by Geelong Orchid Holdings Ltd. and the Tool
project
Storage Production Base Construction Project was terminated. In order to promote the smooth
feasibil
implementation of equity acquisition and reduce transaction costs the Company held its 10th Meeting
ity
of 5th Session of Board of Directors on 21 June 2021 deliberated and approved the Proposal on
Changing Part of the Implementation Subjects of the Raised Funds Investment Project and agreed to
change the implementation subject of equity acquisition projects from the Company to Hong Kong
GreatStar International Co. Ltd. a wholly-owned subsidiary of the Company.Amoun N/A
46Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
t
purpos
e and
progres
s of
over-
raised
funds
Applicable
Incurred in prior years
On 22 July 2020 the Company held the 37th Meeting of the 4th Board of Directors deliberated and
approved the Proposal on Adding Part of Implementation Subjects and Locations to the Raised Funds
Investment Project and Using Part of the Raised Funds to Increase Capital to Wholly-owned
Subsidiaries. 1. Agreed to add Vietnam GreatStar Intelligence Co. Ltd. a wholly-owned subsidiary of
the Company as one of the implementation subjects of the Laser Measurement and Smart Home
Production Base Construction Project and add Nam Cau Kien Industrial Park Thuy Nguyen
Haiphong Vietnam as one of the implementation locations of the Project; 2. Agreed to add the wholly-
owned subsidiary Thailand Xindadi Co. Ltd. (renamed Geelong (Thailand) Co. Ltd.) as one of the
implementation subjects of the Tool Storage Production Base Construction Project and add No. 54/5
Village 1 Map Yang Phon Pluak Daeng Rayong Thailand as one of the implementation locations of
Change the Project.s in the On 14 April 2021 the Company held the 8th Meeting of the 5th Board of Directors deliberated and
implem approved the Proposal on Changing the Implementation Subjects and Locations of the Raised Funds
entatio Investment Project Adjusting the Investment Structure of the Raised Funds Investment Project and
n Extending the Implementation Period. 1. Agreed to add Hangzhou GreatStar Sheffield Tools Co. Ltd.locatio a wholly-owned subsidiary as one of the implementation subjects of the Laser Measurement and Smart
ns of Home Production Base Construction Project and add Hangzhenggongchu [2020] No. 26 Plot
the Jianggan District Hangzhou as one of the implementation locations of the project; 2. Agreed to change
raised the implementation subject of R&D Center Construction Project to Hangzhou GreatStar Industrial Co.funds Ltd.invest On 21 June 2021 the Company held the 10th Meeting of the 5th Session of Board of Directors
ment deliberated and approved the Proposal on Changing Part of the Implementation Subjects of the Raised
project Funds Investment Project and agreed to change the implementation subject for the acquisition of 100%
equity of Geelong Holdings Limited held by Geelong Orchid Holdings Ltd. from the Company to Hong
Kong GreatStar International Co. Ltd. a wholly-owned subsidiary of the Company.On 30 December 2022 the Company held the 29th Meeting of the 5th Session of Board of Directors
deliberated and approved the Proposal on Increasing the Implementation Subjects and Implementation
Locations of the Raised Funds Investment Project Adjusting the Investment Structure of the Raised
Projects and Extending the Implementation Period. The Company agreed to add Vietnam GreatStar
Intelligence Co. Ltd. a wholly-owned subsidiary and Hangzhou GreatStar Energy Co. Ltd. a wholly-
owned sub-subsidiary as Intelligent Warehousing and Logistics Base Construction Project's
implementation subjects. Meanwhile Nam Cau Kien Industrial Park Thuy Nguyen Haiphong
Vietnam and JG1601-43 Plot Unit of Genbei New District Shangcheng District Hangzhou Zhejiang
Province as well as Chang'an Town Haining Zhejiang Province were added as its implementation
locations of the Project.Adjust
ment of
implem
entatio
n
method
N/A
s of the
raised
funds
invest
ment
project
47Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Applicable
1. On 22 July 2020 the Company held the 37th Meeting of the 4th Board of Directors deliberated and
approved the Proposal on Using Raised Funds to Replace Self-raised Funds Pre-invested in the Raised
Funds Investment Project.
(1) The Company agreed to replace the self-raised funds pre-invested in the raised funds investment
project with the raised funds of RMB 148.2549 million.
(2) The Company agreed to replace the issuance fee of RMB 1.7238 million paid by the Company's
own funds with the raised funds.Advanc
2. The expenditures for the Research and Development Center Construction Project include personnel
e
expenses such as salaries bonuses social insurance premiums and housing provident fund
invest
contributions. In accordance with the relevant provisions of the People's Bank of China's "Measures
ment
for the Administration of RMB Current Accounts with Banks" employee salaries cannot be directly
and
disbursed through the Company's dedicated account. Considering that the Company's social insurance
fund
premiums and housing provident fund contributions are all transferred or paid from the Company's
replace
own funds account it is operationally infeasible to directly pay personnel expenses related to the
ment of
fundraising investment project (hereinafter referred to as the fundraising project) from the fundraising
the
special account. Therefore it is necessary to advance payment using the Company's own funds and
raised
then transfer an equivalent amount from the fundraising special account to the Company's relevant
funds
deposit account. On September 23 2022 the Company held the 24th Meeting of the 5th Session of
invest
Board of Directors deliberated and approved the Proposal on Using Self-owned Funds to Make Partial
ment
Payments to the Raised Funds Investment Project and Subsequent Replacement with the Same Amount
project
of Raised Funds. It is agreed that during the implementation of the fundraising project the Company
shall first make partial payments (personnel expenses such as salary bonus social insurance premiums
housing provident fund etc.) to the Project with its own funds then make monthly statistics on the
amount of funds paid for the Project with its own funds and transfer the same amount from the special
account for raised funds to the Company's own fund account. As of December 31 2023 the Company
has used its own funds to pay for the fundraising project expenses and transferred an equivalent amount
from the fundraising special account to the Company's own funds account totaling RMB 42.7744
million.Descrip
tion of
tempor
ary
repleni
shment
of
N/A
workin
g
capital
with
idle
raised
funds
Applicable
Amoun 1. The Company’s project of "Capital Increase to Subsidiaries and Acquisition of 100% Equity of
t and Geelong Holdings Limited Held Through Geelong Orchid Holdings Ltd." has been implemented as
reasons planned. In order to facilitate the Management of the special account for raised funds the Company
of has cancelled the special account for raised funds of the project. In addition the raised fund surplus
raised (interest income) of USD 14.98 (converted to RMB 100.00 at the spot exchange rate on the transaction
fund date) will be transferred to its own fund account for permanent replenishment of working capital.surplus 2. As of December 25 2023 both the Laser Measurement and Smart Home Production Base
in the Construction Project and the Research and Development Center Construction Project have reached the
implem designated usable status meeting the conditions for closure. During the implementation of the
entatio fundraising project the Company guided by the principles of science and efficiency strengthened
n of the control supervision and Management of expenses at all stages. It exercised caution in using the raised
project funds optimizing resource allocation reducing costs thereby saving a portion of the raised funds.Additionally the funds accrued interest income while held in the special account. In accordance with
48Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
the resolutions of the 4th Meeting of the 6th Board of Directors and the 1st Extraordinary General
Meeting of Shareholders in 2024 aiming to enhance the efficiency of fundraising utilization the
Company agreed to permanently supplement working capital with the aforementioned surplus raised
funds for the Company's daily operations. As of April 24 2024 the Company has closed the
fundraising account (632923398) at the Hangzhou Branch of China Minsheng Bank and transferred
out a surplus fundraising amount of RMB 59569.58.Purpos
e and
destinat
By the end of the period the balance of the unutilized raised funds is equivalent to RMB 115.3014
ion of
million (including the net amount of RMB 38.1179 million in respect of cumulative bank deposit
unutiliz
interest minus bank charges) which is deposited in the special account for raised funds.ed
raised
funds
Proble
ms or
other
circum
stances
in the
utilizati N/A
on and
disclos
ure of
the
raised
funds
(3) Projects involved with changes in raised fund
□√ Applicable □ Not Applicable
Unit: RMB ten thousand
Total Whether
Actual Investm
raised Actual the
cumulati ent Date of
Corresp funds to investm Benefits Whether project
ve progress achievin
The onding be ent achieved expected feasibilit
investm at the g
project original invested amount in the benefits y has
ent as of end of expected
after committ in the in current have changed
the end the conditio
change ed project current reportin been significa
of the period ns for
project after the reportin g period achieved ntly
period (3) = use
change g period after the
(2)(2)/(1)
(1) change
Capital
increase
to
subsidia
ries and Tool
acquisiti Storage
on of Producti
13494.4 13494.4 100.00 2 July
100% on Base 0 8054.78 N/A No
22%2021
equity of Constru
Geelong ction
Holding Project
s
Limited
held by
Geelong
49Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Orchid
Holding
s Ltd.
13494.413494.4
Total -- 0 -- -- 8054.78 -- --
22
Due to constraints posed by the global shipping capacity shortages some raw
materials and equipment could not be delivered to the project sites on time
resulting in certain impacts on the construction progress of the Company's tool
storage production base construction project and causing delays in the original
fundraising project completion timeline. According to the Company's long-
term strategic planning and current development needs in order to use the
raised funds more efficiently improve the Company's existing production
capacity and supply capacity faster and better meet clients' needs after
deliberation and approval of the 7th Meeting of 5th Board of Directors and the
2020 Annual General Meeting of Shareholders the Company used the
Description of reasons for uninvested raised funds of RMB 134.9442 million for the Tool Storage
change decision-making Production Base Construction Project by 5 April 2021 for the acquisition of
procedures and information 100% equity of Geelong Holdings Limited held by Geelong Orchid Holdings
disclosure (for specific projects) Ltd. and the Tool Storage Production Base Construction Project was
terminated. The raised funds that have been utilized have been invested in the
construction of the tool storage production base for Haining GreatStar
Intelligent Equipment Co. Ltd. and Geelong (Thailand) Co. Ltd.In order to promote the smooth implementation of equity acquisition and
reduce transaction costs the Company held its 10th Meeting of 5th Session of
Board of Directors on 21 June 2021 deliberated and approved the Proposal on
Changing Part of the Implementation Subjects of the Raised Funds Investment
Project and agreed to change the implementation subject of equity acquisition
projects from the Company to Hong Kong GreatStar International Co. Ltd. a
wholly-owned subsidiary of the Company.Details and reasons for not
achieving the planned progress
N/A
or expected earnings (for
specific projects)
Description of significant
changes in project feasibility N/A
after change
VIII. Sale of Major Assets and Equity
1. Sale of major assets
□ Applicable √ Not Applicable
No major assets were sold during the reporting period.
2. Sale of major equity
□ Applicable √ Not Applicable
IX. Analysis of Major Holding and Equity Participation Companies
□√ Applicable □ Not Applicable
Details of main subsidiaries and equity participation companies that affect the Company's net profit by 10% or more
Unit: RMB
Company Principal Registere Total Operating Operating
Type Net assets Net profit
name business d capital assets income profit
GreatStar Subsidiar Manufact 30290319 91070474 19412325 25794684 20814422
-
Europe y uring 99.33 1.57 64.38 7.19 3.40
50Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
AG
Acquisition and disposal information of subsidiaries during the reporting period
□√ Applicable □ Not Applicable
Acquisition and disposal method of
Impact on overall production
Company name subsidiaries during the reporting
operation and performance
period
GreatStar tools Germany GmbH Established No significant impact
GREATSTAR UNITED KINGDOM
Established No significant impact LTD
SCRUFFS WORKWEAR LTD Established No significant impact
Lista Eastern Europe spol. s.r.o Established No significant impact
Changzhou Huada Kejie Opto-
Established No significant impact
Electro Instrument Co. Ltd (HDKJ)
Geelong Sales (Macau
Cancelled No significant impact
Commercial) Limited
Guangdong Shiwanke Electrical
Cancelled No significant impact
Appliance Co. Ltd.Shenzhen Workpro Technology
Cancelled No significant impact
Co. Ltd.Newland. LLC Cancelled No significant impact
Description of major holding and equity participation companies
None
X. Structural Subjects under Control of the Company
□ Applicable √ Not Applicable
XI. Prospects for the Company's Future Development
(I) Development Strategy of the Company
Overall development strategy: Main business priority product innovation brand operation and global service.Main business priority: The Company continues to leverage the existing large supermarkets in Europe and the
United States and self-operated channels to develop the main business of tools and to dispose of non-core businesses
for asset recovery and investment in the main business. The Company will also continue M&A to seek further
development of non-hand tools including power tools and outdoor supplies.Production innovation: While developing and upgrading existing products to improve convenience for users the
Company will continue to develop new products that are suitable for its own supply chain and distributors. Under
the support of supply chain network and Chinese engineers the Company will dominate the current global division
of tools industry enhance its leading position of the industry for further development and take over the tasks of
industrial transfer centering on client demand creation from the Europe and the United States in the era of innovative
economy.Brand operation: The Company will carry on and develop the existing world-renowned tool brands and e-commerce
tool brands for the new era continue to improve the service system for the original brands of the Europe and the
United States and make a long-term plan for the original brands and development path hinged on the stable cash
flow of durable consumer goods to improve brand value.Global service: Against the reverse globalization the Company continues to actively increase the investment in the
market of Europe the United States and the Southeast Asia select outstanding foreign companies for M&A to have
better access to international resources and markets in the pursuit of a globe-oriented Company.(II) Business Plan
The Company proposes the goal of 100% cumulative growth in its main business for the next three years in early
2023. In spite of the first year-on-year decrease for a variety of reasons in 2023 the Company kept growth as
51Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
expected and will continue to uphold its long-term growth prospect and compounded annual growth rate the same
as years before.(III) Possible Risks
After a comprehensive analysis of the Company's external environment and actual situation the main operating
risks the Company faces include:
1. Exchange rate fluctuation risk
At present the Company's operating income basically comes from the overseas market. For example the wide
fluctuation of Chinese Yuan exchange rate will have a certain impact on the Company's operating income. Most of
the Company's principal business orders are denominated in US Dollars and the fluctuations of the exchange rate
between Chinese Yuan and US Dollars directly affect the price competitiveness of products thus affecting the
Company's operating performance. In this regard the Company will continue to strengthen its development in
overseas market and foreign exchange settlement regulation to hedge and reduce the impact of exchange rate
fluctuations on the Company's performance.
2. Risk of rising raw material prices
Recently the Company's main raw material prices fluctuated greatly causing the Company's production costs to
fluctuate as well. Although the Company's production capacity is dominated by outsourced production and has a
strong ability of bargaining with upstream outsourced manufacturers the Company's profitability may still be
affected to some extent if the price of raw materials continues to rise. In this regard the Company will continue to
strengthen procurement and cost control establish strategic cooperative relations with suppliers and sign long-term
agreements to absorb the risk of raw material price fluctuations. Meanwhile the Company will continue to optimize
the product mix strengthen the R&D of new products and rely on innovative products to set reasonable prices and
maintain the product gross margin.
3. Risk of trade conflict
Currently the United States is the largest single market of the Company and a vast majority of the Company's
products exported to the United States are still subject to a 25% tariff which has an adverse impact on the
development of the Company. In this regard the Company will pay close attention to the international situation
continue to implement the internationalization strategy promote the construction of overseas manufacturing bases
cultivate overseas supply chains and establish a global production capacity layout and supply chain system to ensure
the stable development of the Company's business.XII. Activities Involving Hosting Research Communication Interviews etc. in Reporting Period
□√ Applicable □ Not Applicable
Main topics Index of
Type of
Reception Reception Reception Reception discussed and basic
reception
date venue method object information research
object
provided situation
Company's Company's
No. 35 2022 annual 2022 annual
Jiuhuan Institutional report 2023 report 2023
Telephone
Road investors first quarter first quarter
25 April 2023 communicati Other
Shangcheng individual report and report and
on
District investors Company's Company's
Hangzhou operational operational
situation situation
Company's Company's
No. 35
2022 annual 2022 annual
Jiuhuan Institutional
Telephone report 2023 report 2023
April 26 Road investors
communicati Other first quarter first quarter
2023 Shangcheng individual
on report and report and
District investors
Company's Company's
Hangzhou
operational operational
52Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
situation situation
Company's Company's
No. 35 2022 annual 2022 annual
Jiuhuan Institutional report 2023 report 2023
Telephone
April 27 Road investors first quarter first quarter
communicati Other
2023 Shangcheng individual report and report and
on
District investors Company's Company's
Hangzhou operational operational
situation situation
No. 35 Company's Company's
Jiuhuan Institutional 2023 interim 2023 interim
Telephone
August 25 Road investors report and report and
communicati Other
2023 Shangcheng individual Company's Company's
on
District investors operational operational
Hangzhou situation situation
No. 35 Company's Company's
Jiuhuan Institutional 2023 interim 2023 interim
Telephone
August 28 Road investors report and report and
communicati Other
2023 Shangcheng individual Company's Company's
on
District investors operational operational
Hangzhou situation situation
No. 35 Company's Company's
Jiuhuan Institutional 2023 interim 2023 interim
Telephone
August 29 Road investors report and report and
communicati Other
2023 Shangcheng individual Company's Company's
on
District investors operational operational
Hangzhou situation situation
Company's Company's
No. 35
2023 third 2023 third
Jiuhuan Institutional
Telephone quarter report quarter report
October 27 Road investors
communicati Other and and
2023 Shangcheng individual
on Company's Company's
District investors
operational operational
Hangzhou
situation situation
Company's Company's
No. 35
2023 third 2023 third
Jiuhuan Institutional
Telephone quarter report quarter report
October 30 Road investors
communicati Other and and
2023 Shangcheng individual
on Company's Company's
District investors
operational operational
Hangzhou
situation situation
Basic
Company's
No. 35 information
2023 third
Jiuhuan Institutional on the
Telephone quarter report
December Road investors acquisition
communicati Other and
20 2023 Shangcheng individual target and
on Company's
District investors Company's
operational
Hangzhou operational
situation
situation
XIII. Implementation of the "Quality and Return Dual Enhancement" Action Plan
Has the Company disclosed the implementation of the "Quality and Return Dual Enhancement" action plan.□ Yes √□ No
53Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Section IV Corporate Governance
I. Basic Status of Corporate Governance
During the reporting period the Company strictly adhered to the requirements of the Company Law Securities Law
Code of Corporate Governance of Listed Companies and Stock Listing Rules of the Shenzhen Stock Exchange
continuously improved the corporate governance structure established and improved internal Management and
control systems enhanced corporate governance and standardized Company operations.As of the end of this reporting period the actual corporate governance situation of the Company basically meets the
requirements of the relevant listed Company governance documents issued by the China Securities Regulatory
Commission.(I) Shareholders and Shareholders' Meeting
The Company strictly followed the requirements of the Guidelines for Shareholders' Meetings of Listed Companies
the Articles of Association and the Rules of Procedure of the Shareholders' Meeting standardized the convening
holding and voting procedures of the shareholders' meeting treated all shareholders equally ensured that all
shareholders have the right to be informed and participate in major Company matters and ensured that all
shareholders can fully exercise their rights.(II) Directors and Board of Directors
The Company strictly followed the procedures for the election of directors as stipulated in the Company Law and
the Articles of Association. The Company currently has nine directors including three independent directors
accounting for one-third of all directors. The number and composition of the board of directors comply with legal
requirements. The board of directors has four specialized committees: the Strategic and Development Committee
the Remuneration and Assessment Committee the Nomination Committee and the Audit Committee. The board of
directors operates in accordance with the Articles of Association the Rules of Procedure of the Board of Directors
the Measures for the Administration of Independent Directors of Listed Companies the Work Rules of the Board
Secretary and the Announcement No.1 of the Shenzhen Stock Exchange for Self-Regulation Guidelines for Main
Board Listed Companies——Standard Operation of Listed Companies on the Main Board exercising its powers in
accordance with the law. All directors attend board meetings and shareholders' meetings on time fulfilling their
duties honestly faithfully diligently and responsibly.(III) Supervisors and Board of Supervisors
The Company's board of supervisors strictly followed the procedures for the election of supervisors as stipulated in
the Company Law the Articles of Association and the Rules of Procedure of the Board of Supervisors. The board
of supervisors consists of three supervisors including one employee supervisor. The number and composition of
the board of supervisors comply with legal requirements. The supervisors conscientiously fulfill their duties in the
spirit of being responsible to all shareholders convene board of supervisors' meetings and attend shareholders'
meetings and board meetings in accordance with the Rules of Procedure of the Board of Supervisors. The supervisors
effectively supervise major Company matters related party transactions financial conditions and the performance
of directors and the president and provide independent opinions.(IV) Relationship between Controlling Shareholders and Listed Companies
The Company and the controlling shareholders are separate and independent in personnel assets finances
organizations and operations. The board of directors board of supervisors and internal institutions of the Company
can operate independently. The behavior of the controlling shareholders is regulated. They exercise shareholder
rights through shareholders' meetings assume corresponding obligations and do not directly or indirectly interfere
with the Company's decision-making and business activities beyond the shareholders' meeting thereby safeguarding
the legitimate rights and interests of the Company and other shareholders.(V) Performance Evaluation and Incentive Mechanisms
The Company has established a comprehensive performance evaluation method and the appointment of senior
Management is open transparent and in compliance with relevant laws regulations and internal Company rules
and regulations. The Company has established a performance evaluation system that links employees' income to
their job performance. In the future the Company will explore more forms of incentive mechanisms establish a
multi-level comprehensive incentive mechanism improve performance evaluation standards better motivate
54Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Management personnel attract and retain outstanding Management talents and technical and business backbone.(VI) Related Stakeholders
The Company fully respects and protects the legitimate rights and interests of related stakeholders achieving a
balance of interests among shareholders employees society and other parties emphasizing social responsibility
and jointly promoting the Company's sustainable and healthy development.(VII) Information Disclosure and Transparency
The Company strictly complies with relevant laws and regulations and the regulations of the Corporate Information
Disclosure Management System strengthens information disclosure affairs Management fulfills information
disclosure obligations and designates Securities Times Securities Daily China Securities Journal and cninfo.com
as newspapers and websites to truthfully accurately timely and completely discloses information ensuring that all
investors have fair access to Company information. The Company will continue to improve and perfect the internal
rules and regulations of corporate governance strengthen standardized operations and promote the Company's
sustained and stable development in accordance with the requirements of the Code of Corporate Governance of
Listed Companies and Stock Listing Rules of the Shenzhen Stock Exchange.Is there a significant difference between the actual state of corporate governance and the laws regulations as well
as rules issued by the China Securities Regulatory Commission regarding the governance of listed companies
□ Yes √□ No
There is no significant difference between the actual state of corporate governance and the laws regulations as well
as rules issued by the China Securities Regulatory Commission regarding the governance of listed companies.II. Independence of the Company from Controlling Shareholders and Actual Controllers in terms of
Company Assets Personnel Finances Organizations and Operations
During the reporting period the Company maintained complete separation from the controlling shareholders in
terms of business assets personnel organization and finances ensuring stable production and operation with well-
established internal mechanisms capable of independent and standardized operation:
(I) Business Independence of the Company
The Company possesses independent production procurement and sales systems operating entirely independently
from the controlling shareholders. There is no horizontal competition between the controlling shareholders and their
affiliated enterprises and the Company.(II) Personnel Independence of the Company
The Company's personnel human resources and salaries are entirely independent. Senior Management such as the
CEO vice presidents board secretary and CFO all work for the Company and receive compensation without
holding any positions or receiving remuneration from the controlling shareholders or their subsidiaries other than
as directors or supervisors.(III) Integrity of Company Assets
Clear property rights exist between the Company and the controlling shareholders. The Company's funds assets
and other resources are not illegally occupied or controlled. The Company's assets are intact with complete control
and ownership rights over all assets including production equipment auxiliary production equipment patents and
other assets appropriate for its scope of business.(IV) Organizational Independence
The Company's board of directors board of supervisors Management and other internal institutions operate
independently. Functional departments are completely separated from the controlling shareholders in terms of
responsibilities personnel etc. There is no hierarchical relationship between the controlling shareholders their
functional departments and the Company and its functional departments. There is no phenomenon of controlling
shareholders influencing the independence of the Company's production operation and Management.(V) Financial Independence
55Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
The Company has established an independent finance department and implemented sound financial and accounting
Management systems. The Company conduct independent accounting without any interference from the controlling
shareholders in the Company's financial and accounting activities. The Company maintains separate bank accounts
in commercial banks without sharing bank accounts with the controlling shareholders. The Company fulfills its tax
declaration and tax obligations independently and in accordance with the law.III. Horizontal Competition
□ Applicable √ Not Applicable
IV. Description of Annual and Extraordinary General Meetings Held During Reporting Period
1. General meeting of shareholders during current reporting period
Investor
Date of Date of
Session Type participation Resolution
convening disclosure
ratio
1st
extraordinary Extraordinary
Announcement
general meeting general meeting 50.12% 20 January 2023 30 January 2023
No.: 2023-002
of shareholders of shareholders
in 2023
2022 Annual
Annual general
General Announcement
meeting of 49.28% 22 May 2023 23 May 2023
Meeting of No.: 2023-032
shareholders
Shareholders
2nd
Extraordinary
extraordinary September 11 September 12 Announcement
general meeting 50.64%
general meeting 2023 2023 No.: 2023-045
of shareholders
in 2023
3rd
Extraordinary
extraordinary November 27 November 28 Announcement
general meeting 49.52%
general meeting 2023 2023 No.: 2023-054
of shareholders
in 2023
2. Preferred shareholders whose voting rights have been restored request an extraordinary general meeting
of shareholders
□ Applicable √ Not Applicable
V. Directors Supervisors and Senior Management Personnel
1. Basic information
Numb Numb Numb
Numb
er of er of er of
er of Reaso
Com shares additi reduc Other
Termi shares n for
menc held onal ed chang
nation held chang
Gend ement at the shares shares es in
Name Age Title Status date at the e in
er date begin held held share
of end of share
of ning durin durin holdi
term the holdi
term of the g the g the ng
perio ng
perio perio perio
d
d d d
Increa
Septe
Qiu June se in
Incu mber 4869 2318 5101
Jianpi Male 62 16 0 0 share
mbent 10 6458 800 5258
ng 2008 holdi
2026
ng
Chi Femal Incu Janua Septe 7299 7299
49000
Xiaoh e mbent ry 12 mber 50 50
56Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
eng 2021 10
2026
Septe
Wang June
Femal Incu mber 1295 1295
Lingli 62 16 0 0 0
e mbent 10 0960 0960
ng 2008
2026
Septe
Li Augu
Incu mber 6764 6764
Zhen Male 64 st 31 0 0 0
mbent 10 70 70
g 2020
2026
Septe
Xu June
Femal Incu mber
Zhen 40 16 0 0 0 0 0
e mbent 10
g 2008
2026
Septe Septe
Wang Incu mber mber 7715 7715
Male 54 0 0 0
Weiyi mbent 11 10 25 25
20232026
Septe
Augu
Wang Incu mber
Male 48 st 31 0 0 0 0 0
Gang mbent 10
2020
2026
Septe
Chen Augu
Femal Incu mber
Zhimi 63 st 31 0 0 0 0 0
e mbent 10
n 2020
2026
Septe
Augu
Shi Femal Incu mber
60 st 31 0 0 0 0 0
Hong e mbent 10
2020
2026
Septe Septe
Sheng
Incu mber mber
Guiha Male 58 0 0 0 0 0
mbent 11 10
o
20232026
Septe
June
Chen Incu mber
Male 43 15 0 0 0 0 0
Jun mbent 10
2011
2026
Huan Septe
May
g Femal Incu mber
40900000
Qiaoz e mbent 10
2022
hen 2026
Septe
June
Ni Femal Incu mber
471600000
Shuyi e mbent 10
2008
2026
Septe
June
Wang Incu mber 7602 7602
Male 52 16 0 0 0
Min mbent 10 00 00
2008
2026
Septe
June
Li Incu mber 8532 8532
Male 49 16 0 0 0
Feng mbent 10 77 77
2008
2026
Zhou Janua Septe Increa
Incu 6000 2700 2175 6525
Siyua Male 37 ry 31 mber 0 se in
mbent 00 00 00 00
n 2018 10 share
57Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2026 holdi
ng
decre
ase in
share
holdi
ng
Septe
Jiang May
Femal Incu mber
Saipi 52 10 0 0 0 0 0
e mbent 10
ng 2022
2026
Septe
Zhan Janua
Femal Incu mber
g 44 ry 27 2900 0 0 0 2900
e mbent 10
Mao 2022
2026
Septe Septe
Zhou
Femal Incu mber mber
Yiqio 52 0 0 0 0 0
e mbent 11 10
ng
20232026
Septe
Cen May
Resig mber
Zhen Male 62 24 0 0 0 0 0
nation 11
gping 2019
2023
Septe
Fu Augu
Femal Resig mber
Yajua 51 st 31 0 0 0 0 0
e nation 11
n 2020
2023
Septe
April
Zhan Resig mber
Male 57 29 0 0 0 0 0
g Ou nation 11
2019
2023
6604258821756841
Total -- -- -- -- -- -- 0 --
1740800003040
During the reporting period were there any cases of directors supervisors leaving office or senior Management
personnel being dismissed during their term of office
□ Yes √□ No
Changes in directors supervisors and senior Management personnel of the Company
□√ Applicable □ Not Applicable
Name Position Type Date Reason
Wang Weiyi Director Elected September 11 2023
Wang Weiyi Vice president End of term September 11 2023
Chairman of the
Sheng Guihao Elected September 11 2023
supervisory board
Zhou Yiqiong Vice president Appointment September 11 2023
Cen Zhengping Director End of term September 11 2023
Chairman of the
Fu Yajuan End of term September 11 2023
supervisory board
Zhang Ou Vice president End of term September 11 2023
2. Employment
The professional background key work experience and main responsibilities in the Company of the current
directors supervisors and senior Management personnel
58Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Mr. Qiu Jianping chairman of the Company is a Chinese national with no permanent residency abroad. He was
born in 1962 and graduated from Xi'an Jiaotong University with an engineering master's degree in mechanical
casting in 1985. From June 2008 to January 2021 he served as the chairman and president of the Company. Since
January 2021 he has been serving as the chairman of the Company.Ms. Chi Xiaoheng vice chairman and president of the Company is a Chinese national with no permanent residency
abroad. She was born in 1975 and holds an associate degree. From June 2008 to August 2020 she served as a
director and vice president of the Company. From August 2020 to January 2021 she served as vice chairman and
vice president of the Company. Since January 2021 she has been serving as vice chairman and president of the
Company.Mr. Li Zheng director and vice president of the Company is a Chinese national with no permanent residency abroad.He was born in 1959 and holds an associate degree. From 2008 to August 2020 he served as vice chairman and
vice president of the Company. Since August 2020 he has been serving as a director and vice president of the
Company.Ms. Wang Lingling director and vice president of the Company is a Chinese national with no permanent residency
abroad. She was born in 1961 and holds a bachelor's degree. Since 2008 she has been serving as a director and vice
president of the Company.Ms. Xu Zheng director of the Company is a Chinese national with no permanent residency abroad. She was born
in 1984 and holds a bachelor's degree. Since 2008 she has served as the chairman's secretary of GreatStar Holding
Group Co. Ltd. Since 2011 she has served as a director of Hangcha Group Co. Ltd. She has been serving as a
director of the Company since 2008.Mr. Wang Weiyi director of the Company is a Chinese national with no permanent residency abroad. He was born
in 1970 and graduated from Zhejiang University with a bachelor's degree in mechanical manufacturing and
technology. From 2008 until September 2023 he served as vice president of the Company responsible for product
research and development and quality Management. He was also one of the main responsible persons for the
Company's national-level laboratory. Since September 2023 he has been serving as a director of the Company.Mr. Wang Gang independent director of the Company is a Chinese national with no permanent residency abroad.He was born in October 1975 and holds a master's degree. He is a certified public accountant (CPA) and a senior
economist. Since August 2017 he has been serving as a director vice general manager and secretary of the board
of directors of Hangzhou Robam Appliances Co. Ltd. Since August 2020 he has been serving as an independent
director of the Company.Ms. Shi Hong independent director of the Company is a Chinese national with no permanent residency abroad.She was born in July 1963 and holds a master's degree. She is an associate professor. From September 2005 to July
2018 she served as an associate professor at the Environmental Engineering Teaching and Research Office of the
College of Ocean Science and Engineering Shanghai Maritime University and concurrently served as the director
of the Environmental Engineering Laboratory. Since August 2020 he has been serving as an independent director
of the Company.Ms. Chen Zhimin independent director of the Company is a Chinese national with no permanent residency abroad.She was born in April 1960 and holds a master's degree. She currently serves as a director of Zhejiang Caitong
Capital Investment Co. Ltd. supervisor of Hangzhou Tigermed Technology Co. Ltd. and Zhejiang Canaan
Technology Co. Ltd. and independent director of Hangzhou Honghua Digital Technology Co. Ltd. and Tongkun
Holding Group Co. Ltd. Since August 2020 he has been serving as an independent director of the Company.
2. Supervisors
Mr. Sheng Guihao supervisor of the Company is a Chinese national with no permanent residency abroad. He was
born in December 1966 and holds a bachelor's degree. Since August 2014 he has been serving as vice chairman of
Zhejiang Hangcha Holding Co. Ltd. Since September 2023 he has been serving as the chairman of the board of
supervisors of the Company.Mr. Chen Jun supervisor of the Company is a Chinese national with no permanent residency abroad. He was born
in August 1980 and holds a bachelor's degree. He is a junior engineer. Since 2009 he has been serving as the
manager of the Company's industrial design department and as the deputy secretary-general of the Company's
59Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Enterprise Science and Technology Association as well as the secretary of the Communist Party of China's
GreatStar Research and Development Innovation Branch.Ms. Huang Qiaozhen supervisor of the Company is a Chinese national with no permanent residency abroad. She
was born in November 1983 and holds a bachelor's degree. Since January 2021 she has been serving as the
president's secretary and deputy director of the President's Office.
3. Other senior Management personnel
Mr. Zhou Siyuan secretary of the board and vice president of the Company is a Chinese national with no permanent
residency abroad. He was born in 1986 and holds a graduate degree. Since January 2018 he has been serving as the
board secretary of the Company.Ms. Ni Shuyi chief financial officer of the Company is a Chinese national with no permanent residency abroad.She was born in 1976 and holds a bachelor's degree. Since 2008 she has been serving as the chief financial officer
of the Company.Mr. Wang Min vice president of the Company is a Chinese national with no permanent residency abroad. He was
born in 1971 and holds an associate degree. Since 2008 he has been serving as vice president of the Company
responsible for the Company's procurement business.Mr. Li Feng vice president of the Company is a Chinese national with no permanent residency abroad. She was
born in 1975 and holds an associate degree. He has been serving as vice president of the Company since 2008
responsible for the Company's external sales business.Ms. Zhang Mao vice president of the Company is a Chinese national with no permanent residency abroad. She
was born in 1979 and holds a bachelor's degree. From May 2021 to January 2022 she served as senior director of
International E-commerce at Hangzhou GreatStar Industrial Co. Ltd. Since January 2022 she has been serving as
vice president of the Company responsible for the Company's international e-commerce business.Ms. Jiang Saiping vice president of the Company is a Chinese national with no permanent residency abroad. She
was born in November 1971 and holds a bachelor's degree. From December 2013 to May 2022 she served as
director of export at the Company. Since May 2022 she has been serving as vice president of the Company
responsible for the Company's own brand and major customer business.Ms. Zhou Yiqiong vice president of the Company is a Chinese national with no permanent residency abroad. She
was born in December 1971 and holds a bachelor's degree. From July 2002 to January 2023 she served as senior
sourcing manager at Home Depot Asia Pacific Procurement. Since September 2023 she has been serving as vice
president of the Company.Employment in corporate shareholders
□√ Applicable □ Not Applicable
Corporate Receive
Commencement Termination
Employee name shareholder Position compensation or
date of term date of term
name not
GreatStar
Chairman of the
Qiu Jianping Holding Group August 10 2009 No
Board
Co. Ltd.GreatStar
January 10
Wang Lingling Holding Group Vice chairman No
2020
Co. Ltd.GreatStar
Li Zheng Holding Group Director August 10 2009 No
Co. Ltd.GreatStar
Chi Xiaoheng Holding Group Director August 10 2009 No
Co. Ltd.GreatStar October 16
Xu Zheng Supervisor Yes
Holding Group 2023
60Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Co. Ltd.Explanation of
employment in
None
corporate
shareholders
Employment in other organizations
□√ Applicable □ Not Applicable
Other Receive
Commencement Termination
Employee name organization's Position compensation or
date of term date of term
name not
Zhejiang
Hangcha Chairman February 2
Qiu Jianping No
Holding Co. general manager 2011
Ltd
Hangcha Group February 2
Qiu Jianping Director No
Co. Ltd. 2011
Zhejiang
Zhongtai
Qiu Jianping Director May 10 2005 No
GreatStar Real
Estate Co. Ltd.Hangzhou
Executive
Qiu Jianping Haiwo Holdings March 19 2011 No
director
Co. Ltd.Hangzhou
GreatStar
Chairman of the December 30
Qiu Jianping Precision No
Board 2006
Machinery Co.Ltd
SMART
January 20
Qiu Jianping SILVER Director No
2011
LIMITED
Hong Kong
January 20
Qiu Jianping Golden Deer Director No
2011
Co. Ltd.Shui On
January 20
Qiu Jianping Zhaowei Co. Director No
2011
Ltd.Shui On Qihao January 20
Qiu Jianping Director No
Co. Ltd. 2011
Shui On Junye January 20
Qiu Jianping Director No
Co. Ltd. 2011
GreatStar
Executive
Qiu Jianping Industrial Co. June 20 2013 No
director
Ltd.Jindao
January 20
Qiu Jianping Investment Co. Director No
2011
Ltd.Hangzhou Xihu
Tiandi
Qiu Jianping Director May 13 2011 No
Development
Co. Ltd
Xinjiang Lianhe
Executive January 10
Qiu Jianping Investment Co. No
Partner 2012
Ltd.Qiu Jianping Taifeng Co. Director January 20 No
61Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Ltd. 2011
Hangzhou
Kunxia
Investment
Executive January 18
Qiu Jianping Management No
Partner 2018
Partnership
(Limited
Partnership)
Zhejiang Equity
November 8
Qiu Jianping Service Group Director No
2017
Co. Ltd.Zhejiang Guozi
September 26
Qiu Jianping Robotics Co. Director No
2014
Ltd.Zhejiang United
Qiu Jianping Investment Co. Director April 13 2015 No
Ltd.Hangzhou
Lujing Culture Executive November 26
Qiu Jianping No
and Creativity director 2015
Co. Ltd.Zhejiang
December 25
Qiu Jianping Youbon Small Director No
2009
Loan Co. Ltd.Shanghai
Haichao
Haoyun
Enterprise Executive
Qiu Jianping April 17 2019 No
Management Partner
Partnership
(Limited
Partnership)
Shanghai
Haichao
Wenxing
Enterprise Executive
Qiu Jianping January 7 2021 No
Management Partner
Partnership
(Limited
Partnership)
Shanghai
Jinguan Haoyun
Enterprise
Executive
Qiu Jianping Management January 7 2021 No
Partner
Partnership
(Limited
Partnership)
Hangzhou
Zhongce
Haichao Chairman of the
Qiu Jianping April 17 2019 No
Enterprise Board
Management
Co. Ltd.Zhejiang
December 26
Qiu Jianping Xinchai Co. Director No
2019
Ltd.Qiu Jianping Zhongce Director October 21 No
62Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Rubber Group 2019
Company
Limited
Hangzhou
GreatStar
September 20
Wang Lingling Precision Director No
2011
Machinery Co.Ltd
Hangzhou
Executive
Fuyang
Director and November 11
Wang Lingling Chongsheng No
General 2013
Trading Co.Manager
Ltd.Zhejiang
Zhongtai
Wang Lingling Supervisor March 11 2011 No
GreatStar Real
Estate Co. Ltd.Zhejiang
Hangcha January 27
Wang Lingling Director No
Holding Co. 2012
Ltd
Hangzhou
February 17
Wang Lingling Haiwo Holdings Supervisor No
2022
Co. Ltd.Zhejiang
Yunsong
Artificial
Wang Lingling Supervisor May 20 2022 No
Intelligence
Technology Co.Ltd.Hangzhou
GreatStar
September 20
Li Zheng Precision Director No
2011
Machinery Co.Ltd
Hangzhou
Zhongce
Haichao
Xu Zheng Supervisor April 21 2019 No
Enterprise
Management
Co. Ltd.Hangcha Group
Xu Zheng Director March 25 2011 No
Co. Ltd.Zhejiang
Hangcha January 27
Xu Zheng Supervisor No
Holding Co. 2012
Ltd
Zhongce Chairman of the
October 21
Xu Zheng Rubber Group supervisory No
2019
Co. Ltd. board
Zhejiang Guozi
Chairman of the November 28
Wang Weiyi Robotics Co. No
Board 2023
Ltd.Hangzhou
Robam Board Secretary
Wang Gang June 1 2008 Yes
Electrical Director
Appliance Co.
63Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Ltd.Hangzhou
Nbond
Wang Gang Director January 1 2013 No
Nonwovens
Co. Ltd.De Dietrich
Household
Appliances
Wang Gang Director July 1 2012 No
(Shanghai)
Trading Co.Ltd.Hangzhou
Fortune Gas
Wang Gang Director January 1 2018 No
Cryogenic
Group Co. Ltd.Hanjia Design Independent
Wang Gang March 15 2022 Yes
Group Co. Ltd. Director
Hangzhou XZB Independent December 28
Wang Gang Yes
Tech Co. Ltd. Director 2022
De Dietrich
Trading
Wang Gang Director June 1 2016 No
(Shanghai) Co.Ltd.Hangzhou G&G
Tourism
Wang Gang Director October 1 2017 No
Supplies Co.Ltd.Shanghai
MXCHIP
November 1
Wang Gang Information Supervisor No
2017
Technology Co.Ltd.Hangzhou
Laoban
Fuchuang
Wang Gang Supervisor May 1 2018 No
Investment
Management
Co. Ltd.Shengzhou
Kinde
Intelligent
Wang Gang Director July 1 2018 No
Kitchen Electric
Appliance Co.Ltd.Versolsolar
December 28
Wang Gang Hangzhou Co. Director No
2022
Ltd.Zhejiang
Caitong Capital
Chen Zhimin Director March 24 2015 No
Investment Co.Ltd.Hangzhou
Tigermed
Chen Zhimin Pharmaceutical Supervisor April 22 2020 Yes
Technology Co.Ltd.Chen Zhimin Zhejiang Supervisor September 20 Yes
64Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Canaan 2022
Technology Co.Ltd.Hangzhou
Atexco Digital Independent December 6
Chen Zhimin Yes
Technology Co. Director 2019
Ltd.Tongkun Group Independent
Chen Zhimin June 23 2020 Yes
Co. Ltd. Director
Zhejiang
Hangcha January 11
Sheng Guihao Director Yes
Holding Co. 2019
Ltd
Zhejiang Guozi
September 14
Zhou Siyuan Robotics Co. Director No
2017
Ltd.Hangzhou
Weiming
September 1
Zhou Siyuan Investment Director No
2017
Management
Co. Ltd.Hangzhou Xihu
Tiandi
Zhou Siyuan Director May 13 2011 No
Development
Co. Ltd
Hangzhou Xihu
Tiandi Business
Zhou Siyuan Director July 23 2014 No
Management
Co. Ltd.Zhejiang
Hangcha January 28
Zhou Siyuan Director No
Holding Co. 2011
Ltd
Ningbo
Zhou Siyuan Donghai Bank Director No
Co. Ltd.Note on
positions with
None
other
organizations
Cases where current directors supervisors and senior managers or those who departed during the reporting period
were penalized by securities regulatory authorities in the past three years
□ Applicable √ Not Applicable
3. Changes in Remuneration of Directors Supervisors and Senior Managers
Decision-making processes basis for determination and actual payment of remuneration for directors supervisors
and senior managers
1. Decision-making processes of remuneration for directors supervisors and senior managers
The remuneration for the Company's directors is proposed by the Remuneration Committee and reviewed and
approved by the Board of Directors and the General Meeting of Shareholders. The remuneration for the Company's
supervisors is proposed by the Human Resources Department and reviewed and approved by the Board of
Supervisors and the Shareholders' Meeting. The position-based portion of senior managers' compensation is
proposed by the Remuneration Committee and approved by the Board of Directors; the performance-based portion
is determined based on the Company's operating performance and annual bonus principles combined with
65Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
individual performance evaluations and disbursed after review by the Chairman.
2. Basis for determination of remuneration for directors supervisors and senior managers
Directors supervisors and senior managers serving in the Company receive a position-based portion of
remuneration. Their performance-based portion of remuneration is determined based on the Company's operating
performance and annual bonus principles combined with individual performance evaluations and disbursed after
review by the Chairman.Remuneration of directors supervisors and senior managers during the reporting period
Unit: RMB ten thousand
Whether to
Total pre-tax receive
remuneration remuneration
Name Gender Age Title Status
received from from related
the Company parties of the
Company
Qiu Jianping Male 62 Incumbent 62.57 No
Chi Xiaoheng Female 49 Incumbent 180 No
Li Zheng Male 64 Incumbent 120 No
Wang
Female 62 Incumbent 40.67 No
Lingling
Wang Weiyi Male 54 Incumbent 120 No
Xu Zheng Female 40 Incumbent 0 Yes
Shi Hong Female 60 Incumbent 10 No
Chen Zhimin Female 63 Incumbent 10 No
Wang Gang Male 48 Incumbent 10 No
Sheng
Male 58 Incumbent 0 Yes
Guihao
Chen Jun Male 43 Incumbent 44 No
Huang
Female 40 23.4 No
Qiaozhen
Zhou Siyuan Male 37 Incumbent 100 No
Ni Shuyi Female 47 100 No
Wang Min Male 52 100 No
Li Feng Male 49 Incumbent 120 No
Zhou Yiqiong Female 52 Incumbent 83.84 No
Jiang Saiping Female 52 Incumbent 68.4 No
Zhang Mao Female 44 Incumbent 62.4 No
Cen
Male 62 Resignation 0 Yes
Zhengping
Fu Yajuan Female 51 Resignation 46.32 No
Zhang Ou Male 57 Resignation 135.03 No
Total -- -- -- -- 1436.63 --
Additional information
□ Applicable √ Not Applicable
VI. Performance of Duties by Directors during the Reporting Period
1. Board of Directors during the Reporting Period
Session Date of convening Date of disclosure Resolution
The 30th meeting of the Announcement No.:
April 21 2023 22 April 2023
5th Board of Directors 2023-014
The 31st meeting of the Announcement No.:
April 24 2023 25 April 2023
5th Board of Directors 2023-026
66Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
The 32nd meeting of the Announcement No.:
May 8 2023 May 9 2023
5th Board of Directors 2023-029
The 33rd meeting of the Announcement No.:
August 24 2023 August 25 2023
5th Board of Directors 2023-038
The 1st meeting of the 6th Announcement No.:
September 11 2023 September 12 2023
Board of Directors 2023-046
The 2nd meeting of the Announcement No.:
October 26 2023 October 27 2023
6th Board of Directors 2023-049
The 3rd meeting of the 6th Announcement No.:
December 18 2023 December 20 2023
Board of Directors 2023-056
The 4th meeting of the 6th Announcement No.:
December 29 2023 December 30 2023
Board of Directors 2023-058
2. Attendance of Directors at Meetings of the Board of Directors and General Meetings of Shareholders
Attendance of directors at meetings of the Board of Directors and General Meetings of Shareholders
Number of
Times of
times to
attendance Times of
attend the Times of Times of Times of Absences
at meetings attendance
required attendance attendance absences from two
of Board of at General
Name of meetings of in person at by proxy at from consecutiv
Directors Meetings
director Board of meetings of meetings of meetings of e meetings
through of
Directors Board of Board of Board of of Board of
telecommu Shareholde
during the Directors Directors Directors Directors
nication rs
reporting
means
period
Qiu
8 8 0 0 0 No 4
Jianping
Chi
8 8 0 0 0 No 4
Xiaoheng
Wang
8 8 0 0 0 No 4
Lingling
Li Zheng 8 8 0 0 0 No 4
Xu Zheng 8 8 0 0 0 No 4
Wang
4 4 0 0 0 No 1
Weiyi
Wang Gang 8 8 0 0 0 No 4
Chen
8 8 0 0 0 No 4
Zhimin
Shi Hong 8 8 0 0 0 No 4
Cen
4 4 0 0 0 No 3
Zhengping
Note on absences from two consecutive meetings of Board of Directors
N/A
3. Objections Raised by Directors on Matters Related to the Company
Objections raised by directors on matters related to the Company
□ Yes √□ No
Directors raised no objection on matters related to the Company during the reporting period.
4. Other Notes on Performance of Duties by Directors
Adoption of suggestions from directors in connection with the Company
□Yes □ No
67Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Notes on adoption or rejection of suggestions from directors in connection with the Company
During the reporting period each director of the Company strictly adhered to the relevant laws regulations the
Company's Articles of Association and the Rules of Procedure for Meetings of Board of Directors conscientiously
fulfilled their respective duties rigorously implemented resolutions of the General Meetings of Shareholders
attended meetings of the Board of Directors and Shareholders' Meetings carefully deliberated on proposals and
actively promoted the implementation of resolutions of the Board of Directors. Each director worked to understand
the Company's operating conditions internal control system development and the implementation of resolutions of
the Board of Directors. They discussed and deployed the priorities work for the next stage fully understood and
agreed to matters such as the reappointment of the financial auditing firm profit distribution related-party
transactions and external investments that occurred during the reporting period and contributed to the sustained
high-quality development of the Company's business lines.VII. Performance of Committees under the Board of Directors During the Reporting Period
Important Other
Number of opinions informatio Details of
Committee Date of
Members meetings Agenda and n on objections
Name convening
held suggestions performanc (if any)
proposed e of duties
Considerati
on and
adoption of
the
Proposal on
Remunerati
Chen on Plan for
Zhimin Directors
Remunerati Shi Hong of
on and Wang April 21 Company
1
Evaluation Gang Chi 2023 for 2023
Committee Xiaoheng and the
and Xu Proposal on
Zheng Remunerati
on Plan for
Senior
Managers
of
Company
for 2023.Considerati
on and
adoption of
the full text
and
Wang
summary
Gang Shi
of the 2022
Hong
Annual
Chen
Audit April 21 Report
Zhimin 4
Committee 2023 Company's
Wang
2022 Audit
Lingling
Report
and Xu
Company's
Zheng
2022
Financial
Statement
Company's
2022
68Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Internal
Control
Self-
Evaluation
Report
Proposal on
Renewal of
Pan-China
Certified
Public
Accountant
s LLP
(Special
General
Partnership
) as
Company's
Auditing
Firm for
2023
Proposal on
Company's
Anticipated
Routine
Related-
party
Transaction
s in 2023
Summary
of
Company
Audit
Departmen
t's Audit
Work in
2022 and
Audit Work
plan for
2023 and
Special
Report on
Custody
and Use of
Funds
Raised in
2022
Wang
Gang Shi
Hong Considerati
Chen on and
Audit April 24
Zhimin 4 adoption of
Committee 2023
Wang the 2023
Lingling Q1 Report
and Xu
Zheng
Audit Wang August 24 Considerati
4
Committee Gang Shi 2023 on and
69Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Hong adoption of
Chen the Semi-
Zhimin annual
Wang Report
Lingling 2023 and
and Xu Special
Zheng Semi-
annual
Report on
Custody
and Use of
Funds
Raised
2023
Considerati
on and
adoption of
the 2023
Wang
Third-
Gang Shi
Quarter
Hong
Report and
Chen
Audit October 26 2023
Zhimin 4
Committee 2023 Third-
Qiu
Quarter
Jianping
Special
and Xu
Report on
Zheng
Custody
and Use of
Funds
Raised
Considerati
on and
adoption of
the
Proposal on
Election of
Non-
independen
t Directors
to
Chen
Company's
Nominatio Zhimin
August 24 New Board
n Shi Hong 1
2023 of
Committee and Chi
Directors
Xiaoheng
and
Proposal on
Election of
Independen
t Directors
to
Company's
New Board
of
Directors
VIII. Performance of Board of Supervisors
Risks identified by the Board of Supervisors in supervisory activities for the Company during the reporting period
70Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
□ Yes √□ No
The Board of Supervisors raised no objection to the supervisory matters during the reporting period.IX. Employees
1. Number of Employees Professional Composition and Education Levels
Number of current employees of the parent Company
1380
at the end of the reporting period (person)
Number of current employees of main subsidiaries at
9418
the end of the reporting period (person)
Total number of current employees at the end of the
10798
reporting period (person)
Total number of employees receiving pay in the
10798
reporting period (person)
Number of retired employees whose expenses are
borne by the parent Company and main subsidiaries 0
(person)
Specialty composition
Specialty category Number of employees (person)
Production personnel 7265
Sales personnel 1075
Technical personnel 1105
Financial personnel 236
Administrative personnel 1117
Total 10798
Education level
Education level category Employees (person)
Master's degree or above 146
University (including junior college) 2442
Senior high school (including vocational and technical
2831
schools)
Under senior high school 5379
Total 10798
2. Remuneration Policy
The Company strictly follows the relevant provisions of the Labor Contract Law in managing employee
compensation ensuring that employees' wages are paid in full and on time before the 20th day of each month. In
2023 average employee wage of the Company was higher than the average wage standard of Zhejiang Province in
2023. The Company paid employees' regular weekend and overtime pay in full accordance with relevant regulations
and a comprehensive working hour system for some positions. The Company carried out one Company-wide salary
adjustment three quarterly salary adjustments and one external salary level survey over the year. The salary
calculation schemes fall into two categories. Frontline employees receive pay for overtime work with hourly wages
and overtime wages calculated according to national labor laws and policies; employees holding Management
positions receive a combination of a fixed portion and a performance-based portion of pay.
3. Training Plan
Employee training and development is an important part of the Company's work. In 2023 training Management
continued to focus on three areas: new employee growth education specialized technical training and employee
career literacy education. Over the year the Company organized 61 training sessions with a total of 3037 employees
participating accumulating 9217 total training hours. The Company also continued the talent pipeline development
with a focus on selecting and cultivating director-level and manager-level candidates. Business elites were also
selected to participate in the Eagle Training Camp to enhance their business Management capabilities. In 2024 the
Company will continue to carry out organizational empowerment and talent development work centering on the
Company's development needs implement the Eagle Training Camp and a Management leadership capability
enhancement plan and strengthen the internal trainer team and build a strong instructor team that can meet the
growing demand for training.
71Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
4. Use of Employment Services
□ Applicable √ Not Applicable
X. Profit Distribution of the Company and Transfer of Capital Reserve into Share Capital
Formulation implementation or adjustment of the profit distribution policy during the reporting period especially
the cash dividend policy
□√ Applicable □ Not Applicable
On May 10 2021 the Company held the annual General Meeting of Shareholders of 2020 which reviewed and
approved the Company's Shareholder Return Plan for the Next Three Years (2021-2023). The Board of Directors
formulated the Company's Shareholder Return Plan for the Next Three Years (2021-2023) after having
comprehensively considered the Company's profitability development strategies and plans shareholder returns
social capital costs external financing environment and other factors.In the reporting period the formulation and implementation of the Company's profit distribution plan conforms to
the China Securities Regulatory Commission's Notice on Further Implementation of Cash Dividends Distribution
of Listed Companies the No.3 Guideline for the Supervision of Listed Companies - Cash Dividend Distribution of
Listed Companies as well as the Articles of Association. The deliberation and decision-making procedures and
mechanisms were complete; the independent directors diligently fulfilled their duties; and the legitimate rights and
interests of minority shareholders were fully protected.Special note of the cash dividend policy
Conforming to the provisions of the Company's
Articles of Association or the requirements of the Yes
General Meeting of Shareholders resolutions:
The distribution standards and ratios were clear and
Yes
unambiguous:
The relevant decision-making procedures and
Yes
mechanisms were complete:
The independent directors performed their duties
Yes
diligently and played their due role:
If the Company did not distribute cash dividends it
should disclose the specific reasons and the measures Yes
to be taken to enhance the return level for investors:
Minority shareholders had sufficient opportunities to
express their opinions and appeals and their legitimate Yes
rights and interests were fully protected:
If the cash dividend policy was adjusted or changed the
conditions and procedures were compliant and Yes
transparent:
The Company made profits during the reporting period and the parent Company's profits distributable to
shareholders were positive but no cash dividend distribution plan was announced
□ Applicable √ Not Applicable
Profit distribution and transfer of capital reserve into share capital in the reporting period
□√ Applicable □ Not Applicable
Number of bonus shares distributed for every 10 shares
0
(shares)
Cash dividends distributed for every 10 shares (RMB)
1
(including tax)
Base number of shares for the distribution plan (shares) 1194478182
Cash dividend amount (RMB) (including tax) 119447818.20
Cash dividend amount distributed by other means (e.g.
0.00
share buyback) (RMB)
72Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Total cash dividends (including those distributed by
119447818.20
other means) (RMB)
Distributable profits (RMB) 5600927990.13
Percentage of total cash dividends (including those
100%
distributed by other means) to total profit distribution
Information on the current cash dividend distribution
Other
Notes on profit distribution and plan of transfer of capital reserve into share capital
As audited by Pan-China Certified Public Accountants LLP (Special General Partnership) the Company (parent
Company) achieved a net profit of RMB1251.1709 million in 2023. In accordance with the Company Law
Accounting Standards for Business Enterprises and the Company's Articles of Association the Company plans
to allocate 10% of its net profit in 2023 equal to RMB 125.11709 million as statutory surplus reserves. By adding
the remaining distributable profits of RMB 4882.1912 million from previous years and deducting RMB
407.3171 million from the cash dividend the actual profits distributable to shareholders are RMB 5600.9280
million. (Note: Any discrepancies between totals and entries are due to rounding of individual figures)
XI. Implementation of the Company's Equity Incentive Plan Employee Stock Ownership Plans or Other
Employee Incentive Measures
□ Applicable √ Not Applicable
The Company has no implementation of equity incentive plan employee stock ownership plan or other employee
incentive measures during the reporting period.XII. Development and Implementation of the Internal Control System During the Reporting Period
1. Development and Implementation of the Internal Control System
During the reporting period the Company strictly followed the requirements of the Company Law Securities Law
Code of Corporate Governance of Listed Companies General Regulation for Enterprise Internal Control and other
relevant laws regulations and normative documents in continuously improving the Company's internal control
system. The Board of Directors carried out an annual self-evaluation of the Company's internal controls and
disclosed the Internal Control Self-Evaluation Report and engaged an accounting firm to audit the Company's
internal controls as required by the Shenzhen Stock Exchange. In 2023 the Company revised its Working Rules of
Independent Directors and Rules on Implementation of Audit Committee in accordance with the CSRC's Measures
for the Administration of Independent Directors of Listed Companies. Based on the Company's actual business
conditions the Articles of Association were revised to continuously enhance and improve the Company's corporate
governance.During the reporting period there were no material deficiencies or important deficiencies in the Company's internal
controls over financial reporting or non-financial reporting. The Company has maintained effective internal controls
over financial reporting in all material aspects in accordance with the enterprise internal control standards system
and relevant regulatory requirements.
2. Details on Deficiencies in Material Internal Controls Discovered During the Reporting Period
□ Yes √□ No
XIII. The Company's Management and Control over Subsidiaries During the Reporting Period
Issues
Company Integration Integration Measures Solution Follow-up
encountered
name plan progress taken progress solution plan
in integration
N/A N/A N/A N/A N/A N/A N/A
XIV. Internal Control Evaluation Report or Internal Control Audit Report
1. Internal Control Evaluation Report
Date of disclosing the full text of the
April 25 2024
Internal Control Evaluation Report
Index for disclosing the full text of 2023 Internal Control Self-Evaluation Report disclosed on cninfo
73Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
the Internal Control Evaluation (http://www.cninfo.com.cn)
Report
Percentage of total assets of units
covered by evaluation to the 100.00%
Company's consolidated total assets
Percentage of operating revenues of
units covered by evaluation to the
100.00%
Company's consolidated operating
revenues
Deficiency identification criteria
Category Financial reporting Non-financial reporting
(1) Signs of material deficiencies in
financial reporting include: i) fraud
by directors supervisors and senior
managers; ii) corrections of
material errors in issued financial The following cases can be
reports; iii) material misstatements identified as material deficiencies
in financial reports issued in the while other cases are determined as
current period identified by CPAs important or general deficiencies
and not detected by the Company's based on the severity of impact. (1)
internal controls during operation; The unscientific nature of the
iv) ineffective supervision of Company's decision-making
internal controls by the Audit process; (2) violation of national
Committee and internal audit laws and regulations such as
function. (2) Signs of important environmental pollution; (3) loss of
Qualitative criteria deficiencies in financial reporting a significant number of managerial
include: i) failure to select and or technical personnel; (4) loss of a
apply accounting policies in significant number of managerial or
accordance with generally accepted technical personnel; (5) failure to
accounting standards; ii) failure to make correction particularly for
establish anti-fraud procedures and significant or important
control measures; iii) lack of deficiencies identified in internal
corresponding control mechanisms control evaluation; (6) lack of
or implementation for the institutional controls or systemic
accounting method of non-routine failure of controls over important
or special transactions without business areas.compensating controls. (3)
Deficiencies other than material and
important deficiencies are
considered general deficiencies.Internal control deficiencies that
may lead to or have led to losses
related to profits are measured by
the operating revenues. If such a
deficiency alone or together with
(1) Material deficiency: Causing
other deficiencies may lead to
direct property loss of over RMB 10
misstatements in financial reporting
million;(2) Important deficiency:
of less than 1% of the operating
Causing direct property loss of
Quantitative criteria revenues it is considered a general
RMB 1-10 million (inclusive)
deficiency; if the resultant
(3) General deficiency: Causing
misstatements exceed 1% but less
direct property loss below RMB 1
than 3% of the operating revenues
million (inclusive).it is considered an important
deficiency; if the resultant
misstatements exceed 3% of the
operating revenues it is considered
a material deficiency. Internal
74Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
control deficiencies that may lead to
or have led to losses related to asset
Management are measured by the
total assets. If such a deficiency
alone or together with other
deficiencies may lead to
misstatements in financial reporting
of less than 1% of the total assets it
is considered a general deficiency;
if the resultant misstatements
exceed 1% but less than 3% of the
total assets it is considered an
important deficiency; if the
resultant misstatements exceed 3%
of the total assets it is considered a
material deficiency.Number of material deficiencies in
0
financial reporting
Number of material deficiencies in
0
non-financial reporting
Number of important deficiencies
0
in financial reporting
Number of important deficiencies
0
in non-financial reporting
2. Internal Control Audit Report
□√ Applicable □ Not Applicable
Review opinion from the Internal Control Audit Report
We believe that GreatStar has maintained effective internal controls over financial reporting in all material aspects
in accordance with the General Regulation for Enterprise Internal Control and relevant regulatory requirements
as of December 31 2023.Disclosure of Internal Control Audit Report Disclosure
Date of disclosing the full text of the Internal Control
April 25 2024
Audit Report
Certified Report on Internal Controls of Hangzhou
Index for disclosing the full text of the Internal Control GreatStar Industrial Co. Ltd. (Pan-China Audited
Audit Report [2024] No.3683) disclosed on cninfo
(http://www.cninfo.com.cn)
Type of opinion on the Internal Control Audit Report Standard unqualified opinion
Existence of material deficiencies in non-financial
No
reporting
The accounting firm gives a non-standard opinion in the Internal Control Audit Report
□ Yes √□ No
Consistency between the accounting firm's opinion in the Internal Control Audit Report with that in the Board of
Directors' Self-Evaluation Report
□Yes □ No
XV. Correction of Issues Identified by Self-Inspection in the Corporate Governance Special Operation for
Listed Companies
N/A.
75Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Section V Environmental and Social Responsibility
I. Major Environmental Protection Issues
Whether the listed Company and its subsidiaries belong to the key pollutant discharge units announced by the
environmental protection department
□ Yes √□ No
Administrative punishment for environmental problems during the reporting period
The impact on
Name of the production Corrective
Punishment
Company or Causes Violations and operation of action of the
result
subsidiary the listed Company
Company
None None None None None None
Refer to other environmental information disclosed by key pollutant discharge units
The Company and its subsidiaries do not belong to the key pollutant discharge units announced by the national
environmental protection department. The Company was subject to no administrative punishment for environmental
problems during the reporting period.Measures taken to reduce its carbon emissions during the reporting period and their effects
□√ Applicable □ Not Applicable
In response to the national call for energy conservation and emission reduction the Company has formulated the
Energy Conservation and Emission Reduction Management System Energy Management Operation Instruction
Regulations on Greenhouse Gas Management and other systems integrating the concept of environmental
protection into the routine operation and development of the Company. Meanwhile the Company actively designs
green products builds green factories promotes the green office concept and makes other efforts to implement the
energy efficiency and low carbon concepts. The Company takes environmental factors into full consideration in the
product design and R&D stage actively launches green products constantly improves the product environmental
protection attributes and continuously develops new environmental protection technology to reduce waste materials
environmental pollution and energy consumption. In order to facilitate the fight against pollution the Company has
developed scientific waste Management and control procedures chemical Management procedures and other
relevant standards to strictly control pollution minimize the impact of its business operations on the environment
and realize green production; In accordance with the principles of low-carbon energy and clean production the
Company promotes the green transformation and upgrading of the factory through the construction of rooftop solar
energy the United States of electric forklift and other measures to achieve green development; Centering on the
concept of green office the Company advocates system upgrading and actively promote the green office awareness
across the whole Company with mutual supports of all departments.Reasons for not disclosing other environmental information
None
II. Social Responsibility
(1) Protection of rights and interests of shareholders and creditors
During the reporting period the Company further strengthened regulations of operations established and improved
its corporate governance structure and regulated the Management of matters such as the convening holding and
deliberation procedures of General Meetings of Shareholders to ensure shareholders' rights to be informed
participate and vote on the Company's major matters. The Company continuously improved its internal control
system and revised the Working Rules of Independent Directors and Rules on Implementation of Audit Committee
according to relevant regulations. It diligently fulfilled its information disclosure obligations ensuring information
disclosures were truthful accurate complete timely and fair without selective disclosure. It strictly implemented
insider registration and confidentiality regulations treated all shareholders and investors impartially strengthened
investor relations Management and communicated with investors through multiple channels like the investor
76Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
relations interactive platform and hotlines to protect the legal rights and interests of all shareholders especially
minority shareholders.
(2) Protection of rights and interests of employees
The Company adheres to a people-oriented philosophy makes the talent strategy a priority for enterprise
development strictly abides by laws and regulations such as the Labor Law and Law on the Protection of Women's
Rights and Interests pays for employees' pensions medical unemployment work-related injury and maternity
insurances on time respects and protects employees' individual rights and interests and attach close attention to
employee health safety and satisfaction. The Company values talent development regularly organizing safety
knowledge training basic skills training for various positions comprehensive quality training for managers etc.allowing employees to effectively enhance their overall specialized qualities and comprehensive abilities beyond
their current roles achieving mutual growth of employees and the Company and building harmonious and stable
labor relations.
(3) Protection of rights and interests of suppliers clients and consumers
The Company has always adhered to the principles of "honesty and trustworthiness mutual benefits and reciprocity
and compliance" in transactions attaches great importance to communication and coordination with all related
parties respects and protects the legitimate rights and interests of suppliers and clients and works to establish
strategic partnership relationships with them. The Company continuously improves its procurement systems and
processes and has established a fair and impartial evaluation system to screen and select qualified suppliers. The
Company insists on putting clients' interests first applies strict controls over product quality continuously improves
service quality and always pays attention to product safety ensuring that the rights and interests of all parties are
properly protected.
(4) Environmental protection
The Company highly values environmental protection efforts treating environmental protection energy
conservation and emission reduction as important tasks. During the reporting period the Company strictly carried
out effective comprehensive treatment of wastewater and exhaust gases in accordance with relevant environmental
regulations and corresponding standards with the normal operation of wastewater and exhaust gas treatment
facilities. To strengthen emission reduction Management and pollution control the Company conducts regular
inspections and ensures that the environmental protection facilities work properly and energy conservation and
emission reduction efforts proceed smoothly.III. Consolidating and Expanding Achievements in Poverty Alleviation and Rural Revitalization
During the reporting period the Company did not participate in the poverty alleviation and rural revitalization work.
77Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Section VI Significant Matters
I. Fulfillment of Commitments
1. Commitments fulfilled being fulfilled and unfulfilled by the actual controller shareholders related parties
acquirers the Company and other relevant parties as of the end of the reporting period
□√ Applicable □ Not Applicable
Type of Subject of Deadline of
Commitment Made by Made on Fulfillment
commitment commitment commitment
1. I and the
companies
under my
control will
reduce
related party
transactions
with the
listed
Company as
much as
possible and
will not seek
treatment
more
favorable
than that
given to other
third parties
in business
cooperation
with the
Commitment Reduction
Qiu Jianping; listed
s made upon and control of Being strictly
Wang Company by June 4 2019 Perpetual
asset related party fulfilled
Lingling taking
restructuring transactions
advantage of
my position
as the actual
controller of
the listed
Company. 2.The
Company
will not seek
preference in
reaching
transactions
with the
listed
Company by
taking
advantage of
its position as
the
controlling
shareholder
of the listed
78Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Company. 3.If any related
party
transaction is
indeed
necessary and
unavoidable
I and the
companies
under my
control will
sign
agreements
with the
listed
Company in
accordance
with the
principles of
equality
fairness and
equal
consideration
perform
legal
procedures
fulfill
information
disclosure
obligations
and relevant
internal
decision-
making and
approval
procedures as
required by
relevant laws
regulations
normative
documents
and the
Company's
Articles of
Association
ensure that
transactions
with the
listed
Company
will not be
conducted
under terms
that are
evidently
unfair
compared to
79Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
market
prices and
refrain from
any acts that
harm the
legitimate
rights and
interests of
the listed
Company and
other
shareholders
through such
transactions.
1. The
Company and
the
companies
under its
control will
reduce
related party
transactions
with the
listed
Company as
much as
possible and
will not seek
treatment
more
favorable
than that
given to other
Commitment Reduction
third parties
s made upon GreatStar and control of Being strictly
in business June 4 2019 Perpetual
asset Group related party fulfilled
cooperation
restructuring transactions
with the
listed
Company by
taking
advantage of
its position as
the
controlling
shareholder
of the listed
Company. 2.The
Company
will not seek
preference in
reaching
transactions
with the
listed
Company by
80Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
taking
advantage of
its position as
the
controlling
shareholder
of the listed
Company. 3.If any related
party
transaction is
indeed
necessary and
unavoidable
I and the
companies
under my
control will
sign
agreements
with the
listed
Company in
accordance
with the
principles of
equality
fairness and
equal
consideration
perform
legal
procedures
fulfill
information
disclosure
obligations
and relevant
internal
decision-
making and
approval
procedures as
required by
relevant laws
regulations
normative
documents
and the
Company's
Articles of
Association
ensure that
transactions
with the
listed
Company
81Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
will not be
conducted
under terms
that are
evidently
unfair
compared to
market
prices and
refrain from
any acts that
harm the
legitimate
rights and
interests of
the listed
Company and
other
shareholders
through such
transactions.
1. I will not
directly or
indirectly
engage in or
participate in
any business
activity that
constitutes
potential
direct or
indirect
competition
with the
business
activities of
the listed
Commitment Company and
Qiu Jianping;
s made upon Horizontal its Being strictly
Wang June 4 2019 Perpetual
asset competition subsidiaries fulfilled
Lingling
restructuring and I will
ensure that
effective
legal
measures are
taken to
prevent other
companies
controlled by
me from
engaging in
or
participating
in any
business
activities that
competes
82Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
with the
business
activities of
the listed
Company and
its
subsidiaries.
2. If the listed
Company
further
expands its
scope of
business I
and other
companies
under my
control will
not compete
with the
listed
Company's
business
activities
under the
expanded
scope. If
there is
potential
competition
with the
listed
Company's
business
activities
under the
expanded
scope I and
other
companies
under my
control will
exit the
competition
with the
listed
Company in
the following
ways: A)
ceasing the
business
activities that
constitute or
may
constitute
competition
with the
listed
83Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Company; B)
integrating
the
competing
business
activities into
the listed
Company's
operations;
C)
transferring
the
competing
business
activities to
an unrelated
third party. 3.If I or other
companies
under my
control have
any
commercial
opportunity
to engage in
or participate
in any
activity that
may compete
with the
listed
Company's
operations I
will
immediately
notify the
listed
Company of
such
commercial
opportunity.If the listed
Company
confirms its
willingness to
take
advantage of
the
opportunity
within the
reasonable
period
specified in
the
notification I
will make all
efforts to
84Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
provide the
commercial
opportunity
to the listed
Company. 4.If I breach the
above
commitments
I am willing
to bear all
liability
arising
therefrom
and fully
indemnify the
listed
Company for
all direct or
indirect
losses.
1. The
Company
will not
directly or
indirectly
engage in or
participate in
any business
activity that
constitutes
potential
direct or
indirect
competition
with the
business
activities of
Commitment
the listed
s made upon GreatStar Horizontal Being strictly
Company and June 4 2019 Perpetual
asset Group competition fulfilled
its
restructuring
subsidiaries
and the
Company
will ensure
that effective
legal
measures are
taken to
prevent other
companies
controlled by
the Company
from
engaging in
or
participating
in any
85Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
business
activities that
competes
with the
business
activities of
the listed
Company and
its
subsidiaries.
2. If the listed
Company
further
expands its
scope of
business the
Company and
other
companies
under its
control will
not compete
with the
listed
Company's
business
activities
under the
expanded
scope. If
there is
potential
competition
with the
listed
Company's
business
activities
under the
expanded
scope the
Company and
other
companies
under its
control will
exit the
competition
with the
listed
Company in
the following
ways: A)
ceasing the
business
activities that
constitute or
86Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
may
constitute
competition
with the
listed
Company; B)
integrating
the
competing
business
activities into
the listed
Company's
operations;
C)
transferring
the
competing
business
activities to
an unrelated
third party. 3.If the
Company or
other
companies
under its
control have
any
commercial
opportunity
to engage in
or participate
in any
activity that
may compete
with the
listed
Company's
operations
the Company
or other
companies
under its
control will
immediately
notify the
listed
Company of
such
commercial
opportunity.If the listed
Company
confirms its
willingness to
take
87Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
advantage of
the
opportunity
within the
reasonable
period
specified in
the
notification
the Company
or other
companies
under its
control will
make all
efforts to
provide the
commercial
opportunity
to the listed
Company. 4.If I breach the
above
commitments
the
Company is
willing to
bear all
liability
arising
therefrom
and fully
indemnify the
listed
Company for
all direct or
indirect
losses.I undertake
that after the
completion of
this
transaction I
will ensure
that the listed
Company
Commitment Maintaining
Qiu Jianping; continues to
s made upon the listed Being strictly
Wang improve its June 4 2019 Perpetual
asset Company's fulfilled
Lingling corporate
restructuring independence
governance
structure and
independent
operating
Management
system in
accordance
with the
88Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
requirements
of relevant
laws
regulations
and its
Articles of
Association
and the listed
Company
will maintain
its
independence
in terms of
business
assets
finance
institutions
staffing and
other aspects
to effectively
protect the
interests of
all
shareholders.The
Company
undertakes
that after the
completion of
this
transaction it
will ensure
that the listed
Company
continues to
improve its
corporate
governance
structure and
Commitment Maintaining
independent
s made upon GreatStar the listed Being strictly
operating June 4 2019 Perpetual
asset Group Company's fulfilled
Management
restructuring independence
system in
accordance
with the
requirements
of relevant
laws
regulations
and its
Articles of
Association
and the listed
Company
will maintain
its
independence
89Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
in terms of
business
assets
finance
institutions
staffing and
other aspects
to effectively
protect the
interests of
all
shareholders.
1. I undertake
not to transfer
benefits to
other entities
or individuals
for free or on
unfair terms
nor will I
damage the
Company's
interests in
any other
way. 2. I
undertake to
restrain my
job-related
consumption.
3. I undertake
not to use the
Company's
assets for
Commitment All directors
investments
s made upon and senior Other Being strictly
or June 4 2019 Perpetual
asset managers of commitments fulfilled
consumption
restructuring the Company
activities
unrelated to
the
fulfillment of
my duties. 4.I undertake
that the
remuneration
system
formulated
by the Board
of Directors
or the
Remuneratio
n and
Evaluation
Committee
will be linked
to the
implementati
on of the
90Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Company's
measures to
supplement
returns. If I
violate the
above
commitments
and cause
losses to the
Company or
shareholders
I shall be held
liable for
indemnificati
on in
accordance
with the law.
1. I will not
overstep
authority to
interfere with
the
Company's
operating and
Management
activities nor
will I infringe
upon the
Company's
interests. 2.The
Company
will make
supplementar
y
Commitment commitments
s made upon GreatStar Other in accordance Being strictly
June 4 2019 Perpetual
asset Group commitments with the fulfilled
restructuring China
Securities
Regulatory
Commission'
s regulations
from the date
of this
commitment
until the
completion of
this
transaction if
the CSRC
issues clear
regulations
on measures
to
supplement
returns and
91Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
related
commitments
and the
above
commitments
cannot meet
such CSRC
regulations.
3. The
Company
will strictly
implement
measures to
supplement
diluted
immediate
returns. If no
such
measures
have been
implemented
the Company
will openly
explain the
specific
reasons for
not
implementin
g the
measures at
the
Company's
General
Meeting of
Shareholders
and apologize
to the
Company's
shareholders
and public
investors.The
Company
will
indemnify
investors in
accordance
with the law
for their
losses in
securities
trading due to
non-
fulfillment of
relevant
commitments. If I violate
92Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
the above
commitments
and cause
losses to the
Company or
shareholders
the Company
shall be held
liable for
indemnificati
on in
accordance
with the law.
1. I will not
overstep
authority to
interfere with
the
Company's
operating and
Management
activities nor
will I infringe
upon the
Company's
interests. 2.The
Company
will make
supplementar
y
commitments
in accordance
Commitment with the
Qiu Jianping;
s made upon Other China Being strictly
Wang June 4 2019 Perpetual
asset commitments Securities fulfilled
Lingling
restructuring Regulatory
Commission'
s regulations
from the date
of this
commitment
until the
completion of
this
transaction if
the CSRC
issues clear
regulations
on measures
to
supplement
returns and
related
commitments
and the
above
93Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
commitments
cannot meet
such CSRC
regulations.
3. I will
strictly
implement
measures to
supplement
diluted
immediate
returns. If no
such
measures
have been
implemented
I will openly
explain the
specific
reasons for
not
implementin
g the
measures at
the
Company's
General
Meeting of
Shareholders
and apologize
to the
Company's
shareholders
and public
investors. I
will
indemnify
investors in
accordance
with the law
for their
losses in
securities
trading due to
non-
fulfillment of
relevant
commitments. If I violate
the above
commitments
and cause
losses to the
Company or
shareholders
I shall be held
liable for
94Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
indemnificati
on in
accordance
with the law.
1.
Undertaking
not to transfer
benefits to
other entities
or individuals
for free or on
unfair terms
or damage
the
Company's
interests in
any other
way. 2.Undertaking
to restrain my
job-related
consumption
by directors
and senior
managers. 3.Undertaking
not to use the
Company's
assets for
Commitment All directors
investments
s made upon and senior Other November Being strictly
or Perpetual
IPO or managers of commitments 23 2018 fulfilled
consumption
refinancing the Company
activities
unrelated to
the
fulfillment of
duties of
oneself. 4.Undertaking
that the
remuneration
system
formulated
by the Board
of Directors
or the
Remuneratio
n and
Evaluation
Committee
will be linked
to the
implementati
on of the
Company's
measures to
supplement
95Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
returns. 5.Undertaking
that the
exercise
conditions of
any future
equity
incentive
plan of the
Company
will be linked
to the
implementati
on of the
Company's
measures to
supplement
returns. As
one of the
responsible
persons for
the measures
to
supplement
returns if I
violate or
refuse to
fulfill the
above
commitments
I agree to
accept
relevant
penalties or
Management
measures
imposed by
the China
Securities
Regulatory
Commission
the Shenzhen
Stock
Exchange
and other
regulatory
authorities in
accordance
with their
relevant
regulations
and rules and
I am willing
to assume the
correspondin
g legal
liability.
96Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Undertaking
not to
overstep
authority to
interfere with
the
Company's
operating and
Management
activities or
infringe upon
the
Company's
interests. As
one of the
responsible
persons for
the measures
to
supplement
returns if the
Company
violates or
refuses to
fulfill the
above
commitments
Commitment
the
s made upon GreatStar Other November Being strictly
Company Perpetual
IPO or Group commitments 23 2018 fulfilled
agrees to
refinancing
accept
relevant
penalties or
Management
measures
imposed by
the China
Securities
Regulatory
Commission
the Shenzhen
Stock
Exchange
and other
regulatory
authorities in
accordance
with their
relevant
regulations
and rules and
the Company
is willing to
assume the
correspondin
g legal
liability.
97Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Undertaking
not to
overstep
authority to
interfere with
the
Company's
operating and
Management
activities or
infringe upon
the
Company's
interests. As
one of the
responsible
persons for
the measures
to
supplement
returns if I
violate or
refuse to
fulfill the
above
Commitment
Qiu Jianping; commitments
s made upon Other November Being strictly
Wang I agree to Perpetual
IPO or commitments 13 2019 fulfilled
Lingling accept
refinancing
relevant
penalties or
Management
measures
imposed by
the China
Securities
Regulatory
Commission
the Shenzhen
Stock
Exchange
and other
regulatory
authorities in
accordance
with their
relevant
regulations
and rules and
I am willing
to assume the
correspondin
g legal
liability.Commitment Commitment During the As
s made upon GreatStar s regarding period when controlling Being strictly
April 5 2009
IPO or Group horizontal it is the shareholder fulfilled
refinancing competition controlling of the
98Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
related party shareholder Company
transactions of the issuer
and GreatStar
misappropria Holding
tion of funds Group Co.Ltd. and
enterprises
that it will
directly or
indirectly
control in the
future will
not engage in
or participate
in any
operations or
activities in
or outside
China in any
form
(including
but not
limited to
investment
acquisition
joint
operation
joint venture
cooperation
partnership
contracting or
leasing
operations or
purchase of
the listed
Company's
shares)
that
constitute or
may
constitute
substantial
competition
with the
issuer's main
business
activities.Nor will they
support any
third parties
other than the
issuer and its
wholly-
owned or
controlled
subsidiaries
to engage in
99Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
or participate
in any
operations or
activities that
constitute or
may
constitute
substantial
competition
with the
issuer's main
business
operations in
or outside
China in any
form.GreatStar
Holding
Group Co.Ltd. will
indemnify the
issuer for all
actual losses
incurred by
the issuer due
to GreatStar's
failure to
fulfill the
commitments
and
warranties
made in the
letter of
commitment.During the
period when
they possess
the actual
control rights
over the
issuer Qiu
Commitment Jianping and
s regarding his wife and
horizontal enterprises
Commitment
Qiu Jianping; competition that they As actual
s made upon Being strictly
Wang related party directly or April 5 2010 controller of
IPO or fulfilled
Lingling transactions indirectly the Company
refinancing
and control other
misappropria than the
tion of funds issuer and its
wholly-
owned or
controlled
subsidiaries
will not
engage in or
participate in
100Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
any
operations or
activities in
or outside
China in any
form
(including
but not
limited to
investment
acquisition
joint
operation
joint venture
cooperation
partnership
contracting or
leasing
operations or
purchase of
the listed
Company's
shares) that
constitute or
may
constitute
substantial
competition
with the
issuer's main
business
activities.Nor will they
support any
third parties
other than the
issuer and its
wholly-
owned or
controlled
subsidiaries
to engage in
or participate
in any
operations or
activities that
constitute or
may
constitute
substantial
competition
with the
issuer's main
business
operations in
or outside
China in any
101Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
form. Qiu
Jianping and
his wife will
indemnify the
issuer for all
actual losses
incurred by
the issuer due
to their
failure to
fulfill the
commitments
and
warranties
made in the
letter of
commitment.Fulfilment of
commitments Yes
as scheduled
2. If the Company's assets or projects are expected to generate revenues in the reporting period the Company
should explain whether the assets or projects have generated revenues as expected and reasons
□ Applicable √ Not Applicable
II. Non-operational funds occupied by controlling shareholders and other related parties of the listed
Company
□ Applicable √ Not Applicable
There was no occupation of non-operational funds of the listed Company by controlling shareholders and other
related parties during the reporting period.III. Illegal external guarantee
□ Applicable √ Not Applicable
There is no illegal external guarantee during the reporting period.IV. Explanation of the Board of Directors on the Last "Non-standard Audit Report"
□ Applicable √ Not Applicable
V. Explanation of the Board of Directors the Board of Supervisors and independent directors (If Any) on the
"Non-standard Audit Report" of the accounting firm in the current reporting period
□ Applicable √ Not Applicable
VI. Notes on changes in accounting policies and accounting estimates and correction of major accounting
Compared to the previous year's financial report
□√ Applicable □ Not Applicable
See Section 10.V "Significant Accounting Policies and Accounting Estimates" and 35. "Changes in material
accounting policies and accounting estimates"
VII. Notes on changes in the scope of consolidated financial statements compared to the previous year's
financial report
□√ Applicable □ Not Applicable
See Section 10.VIII "Changes in the consolidation scope"
102Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
VIII. Employment and dismissal of accounting firm
Currently engaged accounting firm
Pan-China Certified Public Accountants LLP (Special
Accounting firm in China
General Partnership)
Compensation for accounting firm in China (RMB
89.5
10000)
Continuous duration of audit service of accounting firm
15
in China
Name of the CPAs from accounting firm in China Li Deyong and Hu Fujian
Continuous duration of audit service of CPAs from
1
accounting firm in China
Accounting firm outside China (if any) N/A
Continuous duration of service of accounting firm
N/A
outside China (if any)
Name of the CPAs from accounting firm outside China
N/A
(if any)
Continuous duration of audit service of CPAs from
N/A
accounting firm outside China (if any)
Change to accounting firm
□ Yes √□ No
Information on appointment of accounting for internal control audit financial consultant or sponsor
□ Applicable √ Not Applicable
IX. Potential delisting situation after disclosure of annual report
□ Applicable √ Not Applicable
X. Matters related to bankruptcy reorganization
□ Applicable √ Not Applicable
No bankruptcy reorganization related matters occurred during the reporting period.XI. Major litigation and arbitration matters
□√ Applicable □ Not Applicable
Basic
Litigation Enforceme
informatio Amount Whether Progress of
(arbitration nt of
n of involved projected litigation Date of Disclosure
) hearing litigation
litigation (RMB ten liabilities (arbitration disclosure index
results and (arbitration
(arbitration thousand ) are formed )
impacts ) judgments
)
As of For
Summary December litigation
of other 31 2023 matters the
matters not the amount Company
meeting the of money will: 1.disclosure involved in Successful
In
criteria for 352.15 No cases that litigation or
execution
material have been mediation
litigation successfull to recover
(the y arbitrated the funds
Company is RMB involved;
as plaintiff) 1560900 2. Require
that the
103Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
involved in involved
cases that unit and its
have been associated
lost in legal
arbitration person to
is RMB naturally
1208700 provide
that guarantee
involved in for the
cases have execution
been of the debt
appealed in so as to
arbitration guarantee
is RMB the
291300 recovery of
and that the
involved in involved
cases that funds; 3.have been Make
mediated is provision
RMB for bad debt
460600. in
accordance
with
accounting
standards
and
Company
Manageme
nt systems.In
summary
For
litigation
matters the
As of Company
December will: 1.
31 2023 Successful
the amount litigation or
Summary
of money mediation
of other
involved in to recover
matters not
cases that the funds
meeting the
have been involved;
disclosure
successfull 2. Require Enforceme
criteria for
260.66 No y arbitrated the nt
material
is RMB involved concluded
litigation
3000 and unit and its
(the
that associated
Company
involved in legal
as
cases that person to
defendant)
have been naturally
mediated is provide
RMB guarantee
2603600. for the
execution
of the debt
to
104Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
guarantee
the
recovery of
the
involved
funds; 3.Make
provision
for bad debt
in
accordance
with
accounting
standards
and
Company
Manageme
nt systems.In
summary
this
litigation
has no
material
impact on
the
Company.XII. Punishment and rectification
□ Applicable √ Not Applicable
The Company did not invest in any case of punishment or rectification during the reporting period.XIII. Integrity of the Company its controlling shareholders and actual controller
□√ Applicable □ Not Applicable
During the reporting period the Company and its controlling shareholder GreatStar Group and the actual controller
Mr. Qiu Jianping were in good faith and there were no cases of failing to perform court judgments in force or
debts incurred in high amounts that have not been settled by the due date.XIV. Significant Related-party Transactions
1. Related-party transactions relevant to routine operations
□ Applicable √ Not Applicable
The Company has no related-party transactions relevant to routine operations in the reporting period.
2. Related-party transactions arising from acquisition and sale of assets or equity
□ Applicable √ Not Applicable
The Company has no related-party transactions arising from acquisition and sale of assets or equity in the reporting
period.
3. Related-party transactions with joint investments
□ Applicable √ Not Applicable
The Company has no related-party transactions with joint investments in the reporting period.
105Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
4. Credits and liabilities with related parties
□ Applicable √ Not Applicable
The Company has no credits and liabilities with related parties in the reporting period.
5. Transactions with related finance companies
□ Applicable √ Not Applicable
There was no deposit loan credit granting or other financial business between the Company and related finance
companies or parties.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable √ Not Applicable
There was no deposit loan credit granting or other financial business between financial companies controlled by
the Company and related parties.
7. Other significant related-party transactions
□ Applicable √ Not Applicable
The Company has no other significant related-party transactions in the reporting period.XV. Material contracts and their performance
1. Trusteeships Contracts and Leases
(1) Trusteeships
□ Applicable √ Not Applicable
The Company has no trusteeships in the reporting period.
(2) Contracts
□ Applicable √ Not Applicable
The Company has no contracts in the reporting period.
(3) Leases
□ Applicable √ Not Applicable
The Company has no leases in the reporting period.
2. Material guarantee
□√ Applicable □ Not Applicable
Unit: RMB ten thousand
External guarantees of the Company and its subsidiaries (excluding guarantees for subsidiaries)
Disclos
ure date
of Occurr
Counte Perfor Guaran
announ ence Actual
Guaran Guaran Type of Collate r Guaran mance tee for
cement date of guarant
teed tee guarant ral (if guarant tee comple related
relating actual ee
party quota ee any) ee (if period ted or parties
to guarant amount
any) not or not
guarant ee
ee
quota
N/A N/A N/A N/A
106Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
The Company's guarantee to its subsidiaries
Disclos
ure date
of Occurr
Counte Perfor Guaran
announ ence Actual
Guaran Guaran Type of Collate r Guaran mance tee for
cement date of guarant
teed tee guarant ral (if guarant tee comple related
relating actual ee
party quota ee any) ee (if period ted or parties
to guarant amount
any) not or not
guarant ee
ee
quota
GreatSt Genera 2021.1
Decem Decem
ar 27507. 21926.2 l 2.27-
ber 4 ber 27 N/A N/A No Yes
Europe 2 3 guarant 2029.0
20212021
AG ee 6.30
Zhongs
han
Genera
Geelon Septem Novem
l
g ber 24 8400 ber 3 7082.7 N/A N/A 3 years No Yes
guarant
Industr 2022 2022
ee
y Co.Ltd.Arrow Genera
May
Fastene May 9 l
7082.7 17 708.27 N/A N/A 1 year No Yes
r Co. 2023 guarant
2023
LLC ee
Prime Genera
May
Line May 9 5312.0 5312.0 l
17 N/A N/A 1 year No Yes
Product 2023 3 3 guarant
2023
s LLC ee
Shop- GeneraMay
Vac May 9 l
7082.7 17 7082.7 N/A N/A 1 year No Yes
USA 2023 guarant
LLC 2023 ee
Suzhou
Xindad
i Genera
June
Hardw May 9 l
10000 22 6200 N/A N/A 3 years No Yes
are 2023 guarant
2023
Product ee
Co.Ltd
Total guarantee Total guarantee
quota for amount actually
subsidiaries incurred for
29477.4319303
approved in the subsidiaries in the
reporting period reporting period
(B1) (B2)
Total guarantee Total actual
quota approved guarantee balance
for subsidiaries as for subsidiaries as
65384.6348311.92
of the end of the of the end of the
reporting period reporting period
(B3) (B4)
Subsidiaries' guarantee to subsidiaries
Guaran Disclos Guaran Occurr Actual Type of Collate Counte Guaran Perfor Guaran
teed ure date tee ence guarant guarant ral (if r tee mance tee for
107Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
party of quota date of ee ee any) guarant period comple related
announ actual amount ee (if ted or parties
cement guarant any) not or not
relating ee
to
guarant
ee
quota
N/A
Total guarantee Total guarantee
quota for amount actually
subsidiaries incurred for
00
approved in the subsidiaries in the
reporting period reporting period
(C1) (C2)
Total guarantee Total actual
quota approved guarantee balance
for subsidiaries as for subsidiaries as
00
of the end of the of the end of the
reporting period reporting period
(C3) (C4)
The Company's total guarantee amount (i.e. the sum of the first three items)
Total guarantee Total guarantee
quota approved in amount actually
the reporting 29477.43 incurred in the 19303
period reporting period
(A1+B1+C1) (A2+B2+C2)
Total actual
Total guarantee
guarantee balance
quota approved as
during as of the
of the end of the 65384.63 48311.92
end of the
reporting period
reporting period
(A3+B3+C3)
(A4+B4+C4)
Proportion of the actual guarantee
amount (A4+B4+C4) to the Company's 3.25%
net assets
Including:
Guarantee balance for shareholders
actual controller and their related 0
parties (D)
Balance of debt guarantee provided
directly or indirectly to the guaranteed
40520.95
party with an asset-liability ratio of
higher than 70% (E)
Amount in total guarantee amount
0
exceeding 50% of net assets (F)
Total amount of the above three items
40520.95
(D+E+F)
Notes on unexpired guarantee contracts
where guarantee liabilities occurred or
there is evidence indicating potential None
joint liabilities for debt repayment
during the reporting period (if any)
Notes on provision of external
guarantees in violation of stipulated None
procedures (if any)
108Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Description on the specific situation of the composite guarantee
3. Entrusted Management of Cash Assets
(1) Entrusted Wealth Management
□√ Applicable □ Not Applicable
Information on entrusted wealth Management during the reporting Period
Unit: RMB ten thousand
Overdue wealth
Sources of funds Amount of Management
Overdue
for entrusted funds for Balance not yet has been
Type amount not
wealth entrusted wealth due deducted
recovered
Management Management impairment
amount
Bank financial Self-owned
2630010824.4300
products funds
Total 26300 10824.43 0 0
Specific cases of high-risk entrusted wealth Management with substantial amount of money low security and poor
liquidity
□ Applicable √ Not Applicable
Entrusted wealth Management is expected to fail to recover the principal or exist other circumstances that may lead
to impairment
□ Applicable √ Not Applicable
(2) Entrusted loans
□ Applicable √ Not Applicable
The Company had no entrusted loans during the reporting period.
4. Other material contracts
□ Applicable √ Not Applicable
The Company has no other material contracts in the reporting period.XIII. Other Major Issues
□√ Applicable □ Not Applicable
1. During the reporting period the Company has received the "Announcement on the Filing of the High-tech
Enterprises Recognized by Zhejiang Provincial Certification Authority in 2022" issued by the National High-tech
Enterprise Certification Management Leading Group Office and has successfully passed the filing of the high-tech
enterprise certification. High-tech enterprise certificate No.: GR202233005456; Issue date: December 24 2022;
Validity: 3 years.
2. During the reporting period the restricted period for the redemption of the GDRs issued by the Company expired
on March 14 2023 (Swiss time) and the GDRs issued can be converted into the Company's A shares from March
15 2023 onwards. As of the end of the reporting period all GDRs issued have been converted into A shares of the
Company.During the reporting period the Company obtained procurement confirmation from a large retail Company in the
United States the procurement subject is cordless lithium battery power tools and related spare parts the purchase
scope is all the sales and services of this series of products in about 2000 stores in North America in the next three
109Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
years the order amount is expected to be not less than USD 40 million per year exceeding 10% of the revenue of
the Company's 2022 power tool products.
4. The Company received the "Partner of the Year" award from D59 Storage of the key client The Home Depot
Inc. ("Home Depot") again and the "Vendor Partner of the Year" award from the key client Tooling unit of Lowe's
Companies Inc. ("Lowe's") during the reporting period.
5. The Company intended to purchase all TESA Group assets held by Hexagon Smart Solutions AB in cash
including the 100% equity of TESA Precision Measurement Instruments Sarl and related assets of Chinese
American and French companies in a transaction price not more than 40 million euros. As of the date of this report
the above-mentioned assets have been delivered.XIV. Significant Matters of Subsidiaries of the Company
□ Applicable √ Not Applicable
110Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Section VII Changes in Shares and Information about Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before change Increase/decrease (+ -) After change
Convers
ion of
New capital
Proporti Bonus Proporti
Quantity shares reserve Other Subtotal Quantity
on shares on
issued into
share
capital
I.Conditio 495313 194160 194160 514729
4.12%4.28%
nal 04 0 0 04
shares
1. State-
owned
shares
2. Legal
person
shares of
state
3.
Shares
held by 495313 194160 194160 514729
4.12%4.28%
other 04 0 0 04
domesti
c capital
Of
which:
Domesti
c legal
person
shares
Domesti
c natural 495313 194160 194160 514729
4.12%4.28%
person 04 0 0 04
shares
4.
Shares
held by
overseas
capital
Of
which:
Oversea
s legal
person
shares
Oversea
s natural
person
shares
111Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
II.--
Uncondi 115297 115102
95.88%19416019416095.72%
tional 0688 9088
00
shares
1. RMB-
denomin - -
115297115102
ated 95.88% 194160 194160 95.72%
06889088
ordinary 0 0
shares
2.
Foreign
capital
shares
listed in
China
3.
Foreign
capital
stocks
listed
overseas
4.
Others
III. Total
120250100.00120250100.00
number 0 0
1992%1992%
of shares
Reasons for changes in shares
□ Applicable √ Not Applicable
Approval of share changes
□ Applicable √ Not Applicable
Transfer of share ownership
□ Applicable √ Not Applicable
Impacts of share changes on the basic EPS diluted EPS net assets per share attributable to ordinary shareholders
of the Company and other financial indicators for the last year and the last reporting period
□ Applicable √ Not Applicable
Other contents that the Company considers necessary or are required by the securities regulatory authorities to
disclose
□ Applicable √ Not Applicable
2. Changes in restricted shares
□√ Applicable □ Not Applicable
Unit: share
Number of Number of
Number of Number of
additional shares
shares shares
shares discharged
Name of restricted for restricted for Cause for Date of
restricted for from
shareholders sale in the sale in the restriction discharge
sales in the restriction for
beginning of end of the
current sale in the
the period period
period current
112Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
period
25% of the
total number
of shares
discharged
from
Shares locked
Qiu Jianping 36522343 1739100 0 38261443 restricted
for directors
holdings at
the beginning
of each year
within the
tenure
25% of the
total number
of shares
discharged
Shares locked from
Zhou Siyuan 450000 202500 0 652500 for restricted
executives holdings at
the beginning
of each year
within the
tenure
Total 36972343 1941600 0 38913943 -- --
II. Issue and Listing of Securities
1. Securities issuance during the reporting period (excluding preferred shares)
□ Applicable √ Not Applicable
2. Explanation of changes in the total shares of the Company the shareholder structure and the assets-
liabilities structure of the Company
□ Applicable √ Not Applicable
3. Existing internal employee shares
□ Applicable √ Not Applicable
III. Shareholders and the actual controller
1. Total number of shareholders and their shareholdings
Unit: share
Total Total
number number
of of
Total ordinary preferred Total number of
number sharehold sharehold preferred shareholders
of ers at the ers whose whose voting rights
ordinary end of the voting were restored at the
sharehold 31368 previous 33519 rights 0 end of the previous 0
ers at the month were month before the
end of the before the restored disclosure date of the
reporting disclosure at the end annual report (if any)
period date of of the (Note 8)
the reporting
annual period (if
report any)
113Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(Note 8)
Shareholding of shareholders holding more than 5% of the shares or the top 10 shareholders (excluding shares
lent through refinancing)
Number Pledged marked or
of shares Changes Number Number frozen
Name of Nature of Holding
at the end during the of of
sharehold sharehold proportio
of the reporting restricted unrestrict Share
ers er n Quantity
reporting period shares ed shares status
period
Domestic
GreatStar
non-state-
Holding 4637398 1143400 4637398
owned 38.56% 0 N/A 0
Group 64 0 64
legal
Co. Ltd.person
Hong
Kong
Offshore
Securities 5527099 3022637 5527099
legal 4.60% 0 N/A 0
Clearing 5 2 5
entity
Company
Limited
Domestic
Qiu 5101525 3826144 1275381
natural 4.24% 2318800 N/A 0
Jianping 8 3 5
person
Industrial
and
Commerc
ial Bank
of China -
19306801930680
Full goal Other 1.61% 9303400 0 N/A 0
00
Tianhui
Selected
Growth
Fund
(LOF)
National
Social
14752301475230
Security Other 1.23% 3116580 0 N/A 0
00
Fund 418
Portfolio
CITIC
Securities
Company
Limited -
13793211379321
Social Other 1.15% 4032921 0 N/A 0
99
Security
Fund
17052
Portfolio
Domestic
Wang 1295096
natural 1.08% 0 9713220 3237740 N/A 0
Lingling 0
person
National
Social
12800001280000
Security Other 1.06% 500000 0 N/A 0
00
Fund 115
Portfolio
Monetary Offshore 1.01% 1220220 5599876 0 1220220 N/A 0
114Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Authority legal 8 8
of Macao entity
- Own
funds
China
Construct
ion Bank
Corporati
on -
BOCOM
Schroder 1207064 - 1207064
Other 1.00% 0 N/A 0
Economic 7 7288637 7
New
Dynamic
Hybrid
Securities
Investme
nt Fund
Strategic investors or
general legal persons
becoming the top 10
None
shareholders owing to
the placement of new
shares (if any) (Note 3)
Description of the
relationship or GreatStar Group Co. Ltd. Qiu Jianping and Wang Lingling are related and are partiesconcerted action acting in concert as defined in the “Measures for the Administration of Takeovers ofamong the above Listed Companies”.shareholders
Descriptions on
entrusting/entrusted
voting and waiver of
None
voting right by the
above-mentioned
shareholders
Description on the top
10 shareholders with
special repurchase None
accounts (if any) (Note
10)
Shareholding of the top 10 shareholders with unrestricted shares
Type of shares
Number of unrestricted shares at the end of the reporting
Name of shareholders Type of
period Quantity
shares
RMB
GreatStar Holding 4637398
463739864 Ordinary
Group Co. Ltd. 64
Shares
Hong Kong Securities RMB
5527099
Clearing Company 55270995 Ordinary
5
Limited Shares
RMB
5101525
Qiu Jianping 51015258 Ordinary
8
Shares
Industrial and
RMB
Commercial Bank of 1930680
19306800 Ordinary
China - Full goal 0
Shares
Tianhui Selected
115Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Growth Fund (LOF)
National Social RMB
1475230
Security Fund 418 14752300 Ordinary
0
Portfolio Shares
CITIC Securities
RMB
Company Limited - 1379321
13793219 Ordinary
Social Security Fund 9
Shares
17052 Portfolio
RMB
1295096
Wang Lingling 12950960 Ordinary
0
Shares
National Social RMB
1280000
Security Fund 115 12800000 Ordinary
0
Portfolio Shares
RMB
Monetary Authority of 1220220
12202208 Ordinary
Macao - Own funds 8
Shares
China Construction
Bank Corporation -
BOCOM Schroder RMB
1207064
Economic New 12070647 Ordinary
7
Dynamic Hybrid Shares
Securities Investment
Fund
Description on
connected relation or
concerted action
among the top 10
shareholders with
GreatStar Group Co. Ltd. Qiu Jianping and Wang Lingling are related and are parties
outstandingacting in concert as defined in the “Measures for the Administration of Takeovers ofunrestricted shares andListed Companies”.between the top 10
shareholders with
outstanding
unrestricted shares and
the top 10 shareholders
Description of the
participation of the top
10 common
shareholders in the None
financing and
securities loans (if any)
(Note 4)
Description on the top 10 shareholders engaging in lending shares through refinancing
□√ Applicable □ Not Applicable
Unit: share
Description on the top 10 shareholders engaging in lending shares through refinancing
Name of Number of shares held
Number of shares lent Number of shares held Number of shares lent
by common securities through refinancing by common securities through refinancing sharehold
accounts and credit and have not yet accounts and credit and have not yet ers (full
securities accounts at returned at the securities accounts at returned at the end of name)
the beginning of the beginning of the period the end of the period the period
116Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
period
Percentag Percentag Percentag Percentag
e of total e of total e of total e of total
Total Total Total Total
share share share share
number number number number
capital capital capital capital
(%)(%)(%)(%)
GreatStar
Holding 4523058 1143400 4637398
37.61%0.95%38.56%00.00%
Group 64 0 64
Co. Ltd.Monetary
Authority
1220220
of Macao 6602332 0.55% 0 0.00% 1.01% 342600 0.03%
8
- Own
funds
National
Social
12300001280000
Security 1.02% 500000 0.04% 1.06% 0 0.00%
00
Fund 115
Portfolio
The top 10 shareholders have changed from the previous period
□√ Applicable □ Not Applicable
Unit: share
Description on the changes in the top 10 shareholders from the end of the previous period
Number of shares held by common
Number of shares lent through securities accounts and credit
Enter/Slip out of refinancing and have not yet securities accounts and shares lent
Name of
the top 10 returned at the end of the period through refinancing and have not
shareholders
during the yet returned at the end of the period
(full name)
reporting period Percentage of Percentage of
Total number total share Total number total share
capital (%) capital (%)
Citibank
National Slip out of 0 0.00% 0 0.00%
Association
China
Merchants Bank
Corporation -
BOCOM
Schroder
Enter 0 0.00% 0 0.00%
Innovation Pilot
Hybrid
Securities
Investment
Fund
CITIC
Securities
Enter 0 0.00% 0 0.00%
Company
Limited - Social
117Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Security Fund
17052 Portfolio
Monetary
Authority of
Enter 342600 0.03% 12544808 1.04%
Macao - Own
funds
Whether the Company's top 10 common shareholders and top 10 common shareholders unrestricted for sale engaged
in agreed repurchase within the reporting period
□ Yes √□ No
The Company's top 10 common shareholders and top 10 common shareholders unrestricted for sale did not engage
in agreed repurchase within the reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholder: Natural person holding
Type of controlling shareholder: Natural person
Whether to obtain residency
Name of Controlling Shareholder Nationality
permits in other countries or regions
Qiu Jianping China No
Main occupation and position Chairman of the Company Chairman of the GreatStar Group
Hangcha Group Co. Ltd. Stock code: 603298 Stock name: Hangcha
Group; the Company was listed on the Shanghai Stock Exchange on
Shareholdings of other domestic December 27 2016 and is mainly engaged in industrial vehicles such as
and overseas listed companies that forklifts and smart vehicles and related main parts. Zhejiang Xinchai Co.controlled and owned during the Ltd. Stock code: 301032 Stock name: Zhejiang Xinchai; the Company
reporting period was listed on the Shenzhen Stock Exchange on July 22 2021 and is mainly
engaged in the research and development production and sales of non-
road diesel engines and related parts.Changes in controlling shareholders during the reporting period
□ Applicable √ Not Applicable
No change was recorded in the controlling shareholders of the Company during the reporting period.
3. Actual controller of the Company and persons acting in concert
Nature of the actual controller: Domestic natural person
Type of the actual controller: Natural person
Whether to obtain
Name of the actual Relationship with the
Nationality residency permits in other
controller actual controller
countries or regions
Qiu Jianping The actual controller China No
Main occupation and
Chairman of the Company Chairman of the GreatStar Group
position
Overseas listed
Mr. Qiu Jianping is the actual controller of Hangcha Group Co. Ltd. (Stock code:
companies controlled
603298) and Zhejiang Xinchai Co. Ltd. (Stock code: 301032).
over the past decade
Change in actual controllers during the reporting period
□ Applicable √ Not Applicable
No change was recorded in the actual controllers of the Company during the reporting period.Block diagram showing the property rights and control relationships between the Company and the actual controller
118Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
The actual controller controls the Company via asset Management methods such as trust
□ Applicable √ Not Applicable
4. The accumulative number of pledged shares of the Company's controlling shareholder or the largest
shareholder and its persons acting in concert account for more than 80% of the Company's shares held by
them
□ Applicable √ Not Applicable
5. Other legal person shareholders holding more than 10% of the shares
□ Applicable √ Not Applicable
6. Restrictions on shareholding reduction of the controlling shareholder the actual controller the
reorganizing party and other committing entities
□ Applicable √ Not Applicable
IV. Implementation progress of share repurchase during the reporting period
Implementation progress of share repurchase
□ Applicable √ Not Applicable
Implementation progress of reducing share repurchase via centralized bidding transactions
□ Applicable √ Not Applicable
119Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Section VIII Preferred Shares
□ Applicable √ Not Applicable
The Company had no preferred shares during the reporting period.
120Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Section IX Securities
□ Applicable √ Not Applicable
121Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Section X Financial Report
I. Audit Report
Type of audit opinion Standard unqualified opinion
Signing date of the Audit Report April 24 2024
Pan-China Certified Public Accountants LLP (Special
Auditing Firm
General Partnership)
Document No. of the Audit Report Tian Jian Shen〔2024〕 No. 3682
Name of the CPAs Li Deyong and Hu Fujian
Audit Report
All shareholders of Hangzhou GreatStar Industrial Co. Ltd.:
I. Opinion
We have audited the Financial Statements of Hangzhou GreatStar Industrial Co. Ltd. (hereinafter referred to as
"GreatStar") which comprise the consolidated and parent Company's balance sheets at December 31 2023 the
consolidated and parent Company's income statements the consolidated and parent Company's cash flow statements
and the consolidated and parent Company's statements of changes in owner's equity for 2023 and the notes to the
related Financial Statements.In our opinion the Companying Financial Statements in all material respects have been prepared in accordance
with the provisions of Accounting Standards for Business Enterprises presenting fairly the consolidated and parent
Company's financial positions of GreatStar as at December 31 2023 and the consolidated and parent Company's
financial performance and cash flows for 2023.II. Basis for Opinion
We conducted our audit in accordance with the provisions of China CPA Standard on Auditing (CSA). Our
responsibilities under those standards are further described in the CPA's Responsibilities for the Audit of the
Financial Statements section of the Audit Report. We are independent of GreatStar and have fulfilled our other
ethical responsibilities in accordance with the China Code of Ethics for Certified Public Accountants. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.III. Critical Audit Matters
Critical audit matters are those matters that in our professional judgment were of most significance in our audit of
the Financial Statements of the current period. These matters shall be addressed in the context of our audit of the
Financial Statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on
these matters.(I) Revenue recognition
1. Description
Refer to Note V (II)-1 and Note III (XXVI) to these Financial Statements.GreatStar's operating revenues are mainly generated from the Hand Tools Power Tools Laser Measurement and
Storage. GreatStar has achieved the operating revenue of RMB 10929.9928 million in 2023. As operating revenue
is one of the key performance indicators of GreatStar there may be an inherent risk that the Management of
GreatStar (hereinafter referred to as the "Management") may resort to inappropriate revenue recognition to achieve
specific objectives or expectations. Therefore we included revenue recognition as a critical audit matter.
2. Audit response
In response to this critical audit matter we performed the following major audit procedures:
122Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(1) Obtained an understanding of the key internal controls related to revenue recognition evaluated the design of
these controls identified whether they are implemented and tested whether the relevant internal controls function
effectively;
(2) Assessed the sales contract obtained an understanding of the main terms and conditions of contracts and
evaluated whether the revenue recognition method is appropriate;
(3) Analyzed the operating revenues and gross profit margin on a monthly basis by products and by clients to
identify whether there are major or abnormal fluctuations and to identify the reasons for the fluctuations;
(4) For the domestic sales revenue assessed the supporting document of selected items such as sales contracts
orders sales invoices stock-out document and clients' receipts; for the export revenue collected electronic port data
and compared it with accounts and assessed the supporting document of selected items such as sales contracts
export declarations bills of lading clients' receipts and sales invoices;
(5) Issued letters to solicit proof the sales revenues for selected items with the letter proving of accounts receivable
from the major clients;
(6) Performed a cut-off test on the operating revenues to check whether the operating revenues have been recognized
within the appropriate period; and
(7) Assessed whether the information related to the operating revenues has been appropriately presented in the
Financial Statements.(II) Impairment of goodwill
1. Description
Refer to Note III (XXI) and Note V (I)-19 to these Financial Statements.As of December 31 2023 the original carrying value of goodwill of GreatStar was RMB 2750291615.37 and the
provision for impairment was RMB 150679689.23 resulting in a carrying value of RMB 2599611926.14.When conducting the goodwill impairment test the Management has combined goodwill with its related asset group
or combination of asset groups and the recoverable amount of the related asset group or combination of asset groups
is confirmed based on the present value of estimated future cash flows.Considering that the goodwill is of significant value and that the goodwill impairment test may impact critical
Management judgment we included impairment of goodwill as a critical audit matter.
2. Audit response
In response to impairment of goodwill we performed the following major audit procedures:
(1) Obtained an understanding of the key internal controls related to impairment of goodwill evaluated the design
of these controls identified whether they are implemented and tested whether the relevant internal controls function
effectively;
(2) Reviewed the Management's estimation of the present value of future cash flows in previous years or required
the Management to make re-estimation;
(3) Assessed the competence professionalism and objectivity of external valuation experts engaged by the
Management;
(4) Evaluated the suitability and consistency of the methods used by the Management in the impairment test;
(5) Evaluated the suitability of the key assumptions used by the Management in the impairment test and reviewed
whether the relevant assumptions are consistent with the business situation historical experience and approved
budgets;
(6) Assessed the suitability relevance and reliability of the data used by the Management in the impairment test
and reviewed the consistency of the relevant information in the impairment test;
123Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(7) Tested whether the Management's calculation of the present value of estimated future cash flows is accurate;
and
(8) Assessed whether the information related to impairment of goodwill has been appropriately presented in the
Financial Statements.IV. Other information
The Management of the Company are responsible for the other information. The other information comprises all
the information included in the annual report other than the Financial Statements and our Audit Report thereon.Our audit opinion on the Financial Statements does not cover the other information and we do not express any form
of appraisal conclusion thereon.We are responsible for reading the other information based on our audit of the Financial Statements and in doing
so consider whether the other information is materially inconsistent with the Financial Statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated.If we conclude that there is a material misstatement of the other information based on the work we have performed
we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and those charged with governance for the Financial Statements
The Management of the Company is responsible for the preparation of the Financial Statements that give a true and
fair view in accordance with the Accounting Standards for Business Enterprises and for the design implementation
and maintenance of such internal controls so as to ensure that the Financial Statements are free from material
misstatement whether due to fraud or error.The Management is responsible for assessing GreatStar's ability to continue as a going concern disclosing as
applicable matters related to going concern and using assumption of ongoing concern in preparing the Financial
Statements unless the Management either intend to liquidate the Company or to cease operations or have no
realistic alternative but to do so.Those charged with governance at GreatStar (hereinafter referred to as "those charged with governance") are
responsible for overseeing GreatStar's financial reporting process.VI. Responsibilities of the CPAs for the audit of the Financial Statements
We aim to obtain reasonable assurance about whether the Financial Statements are free from material misstatement
whether due to fraud or error and to issue an audit report that includes our audit opinion. Reasonable assurance is
a high level of assurance but is not a guarantee that an audit conducted in accordance with the CSA will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if individually or in the aggregate they could reasonably be expected to influence the economic decisions
of users taken on the basis of these Financial Statements.As part of an audit in accordance with the CSA we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(I) Identify and assess the risks of material misstatement of the Financial Statements whether due to fraud or error
design and perform audit processes responsive to those risks and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. As fraud may involve collusion forgery intentional omissions
misrepresentations or the override of internal control the risk of failing to detect a material misstatement resulting
from fraud is higher than the risk of failing to detect a material misstatement resulting from error.(II) Obtain an understanding of internal controls relevant to the audit in order to design appropriate audit processes.(III) Evaluate the appropriateness of accounting policies used by the Management and the rationality of accounting
estimates and related disclosures made by the Management.
124Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(IV) Conclude on the appropriateness of the Management's use of the assumption of ongoing concern and on
whether a material uncertainty exists related to events or conditions that may cast significant doubt on GreatStar's
ability to continue as a going concern based on the audit evidence obtained. In accordance with the CSA we are
required to draw attention in our audit report to the related disclosures in the Financial Statements if we conclude
that a material uncertainty exists or to issue an audit report containing the modified opinion if such disclosures are
inadequate. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However
future events or conditions may cause GreatStar to cease to continue as a going concern.(V) Evaluate the overall presentation structure and content of the Financial Statements and whether the Financial
Statements give a true and fair view of the underlying transactions and events.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business
activities within GreatStar to issue an audit opinion on the Financial Statements. We are responsible for the direction
supervision and performance of the group audit and we remain solely responsible for our audit opinion.We communicate with those charged with governance regarding matters such as the planned scope and timing of
the audit and significant audit findings including any significant deficiencies in internal control that we identify
during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them on all relationships and other matters that
may reasonably be considered to bear on our independence and relevant preventive measures which are applicable.Based on the matters communicated with those charged with governance we determine the matters that are of most
significance in the audit of the Financial Statements of the current period and are therefore the critical audit matters.We describe such matters in our audit report unless law or regulation precludes public disclosure of the matters or
when in extremely rare circumstances we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.Pan-China Certified Public Accountants LLP (Special General Partnership) China CPA:
(Project Partner)
Hangzhou China CPA:
April 24 2024
125Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
II. Financial Statements
Unit in notes to financial statements: RMB
1. Consolidated balance sheet
Prepared by: Hangzhou GreatStar Industrial Co. Ltd.
31 December 2023
Unit: RMB
Item 31 December 2023 January 1 2023
Current assets:
Monetary assets 5178727811.76 4863206182.40
Settlement funds 0.00 0.00
Loans to other banks 0.00 0.00
Held-for-trading financial assets 122650783.01 70230104.24
Derivative financial assets 0.00 0.00
Notes receivable 18703655.36 18765981.83
Accounts receivable 2101643079.19 1896685590.11
Receivables financing 266675016.64 324557679.71
Advances paid 103522565.06 128254093.87
Premiums receivable 0.00 0.00
Reinsurance accounts receivable 0.00 0.00
Reinsurance reserve receivable 0.00 0.00
Other receivables 66293368.61 58325042.10
Including: Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Financial assets under reverse repo 0.00 0.00
Inventories 2569302478.80 2812572525.68
Contract assets 0.00 0.00
Assets held for sale 0.00 0.00
Non-current assets due within one
108310.3898061.60
year
Other current assets 128790614.47 134130648.58
Total current assets 10556417683.28 10306825910.12
Non-current assets:
Loans and advances 0.00 0.00
Debt investments 0.00 0.00
Other debt investments 0.00 0.00
Long-term receivables 335454.55 2872179.47
Long-term equity investments 2950574477.94 2544523517.55
Other equity instrument
16550000.0016550000.00
investments
Other non-current financial assets 0.00 0.00
Investment property 117273455.37 122158556.01
Fixed assets 1726806882.04 1518902232.96
Construction in progress 270199288.71 304599362.46
Productive biological assets 0.00 0.00
Oil & gas assets 0.00 0.00
Right-of-use assets 378820165.25 417129361.41
Intangible assets 887953084.78 712798866.46
Development expenditures 0.00 0.00
Goodwill 2599611926.14 2436140794.66
Long-term prepayments 33173513.74 29683274.34
Deferred tax assets 92688356.60 109614608.72
126Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Other non-current assets 53392982.77 74507127.95
Total non-current assets 9127379587.89 8289479881.99
Total assets 19683797271.17 18596305792.11
Current liabilities:
Short-term borrowings 1103247899.65 1379062713.11
Central bank loans 0.00 0.00
Loans from other banks 0.00 0.00
Held-for-trading financial liabilities 3227726.23 48413710.29
Derivative financial liabilities 0.00 0.00
Notes payable 18253448.48 21096540.03
Accounts payable 1567046072.54 1366875268.71
Advances received 0.00 0.00
Contractual liabilities 147202549.06 131898420.14
Financial liabilities under repo 0.00 0.00
Absorbing deposit and interbank
0.000.00
deposit
Deposit for agency security
0.000.00
transaction
Deposit for agency security
0.000.00
underwriting
Employee benefits payable 243435045.23 270678187.82
Taxes and rates payable 132452194.11 176943955.53
Other payables 37629238.62 21198376.32
Including: Interest payable 0.00 0.00
Dividend payable 8400000.00 0.00
Handling fee and commission
0.000.00
payable
Reinsurance accounts payable 0.00 0.00
Liabilities held for sale 0.00 0.00
Non-current liabilities due within
978130617.03323296833.40
one year
Other current liabilities 2050790.27 2136266.97
Total current liabilities 4232675581.22 3741600272.32
Non-current liabilities:
Insurance policy reserve 0.00 0.00
Long-term borrowings 708270.00 798604951.84
Bonds payable 0.00 0.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Lease liabilities 283800769.92 318221349.99
Long-term payables 0.00 0.00
Long-term employee benefits
19098027.8719223856.97
payable
Provisions 7702646.75 4548413.90
Deferred income 2518392.49 2364687.74
Deferred tax liabilities 124722086.70 86792014.84
Other non-current liabilities 0.00 0.00
Total non-current liabilities 438550193.73 1229755275.28
Total liabilities 4671225774.95 4971355547.60
Equity:
Share capital 1202501992.00 1202501992.00
Other equity instruments 0.00 0.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Capital reserve 3999886029.16 3950778936.53
Less: Treasury shares 236625962.00 236625962.00
127Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Other comprehensive income 231453437.99 115008916.12
Special reserve 0.00 0.00
Surplus reserve 788960468.06 663843379.04
General risk reserve 0.00 0.00
Undistributed profit 8861804110.41 7702625494.43
Total equity attributable to the
14847980075.6213398132756.12
parent Company
Non-controlling interest 164591420.60 226817488.39
Total equity 15012571496.22 13624950244.51
Total liabilities & equity 19683797271.17 18596305792.11
Legal representative: Qiu Jianping Person in charge of accounting: Ni Shuyi Person in charge of accounting
department: Ni Shuyi
2. Balance sheet of the parent Company
Unit: RMB
Item 31 December 2023 January 1 2023
Current assets:
Monetary assets 2400684069.57 1959109461.78
Held-for-trading financial assets 0.00 0.00
Derivative financial assets 0.00 0.00
Notes receivable 8033890.80 6303252.22
Accounts receivable 1638745287.87 1094304301.40
Receivables financing 262013539.68 321247171.36
Advances paid 11438698.21 11356975.59
Other receivables 1445999317.30 2755900353.60
Including: Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Inventories 101143349.48 67443090.27
Contract assets 0.00 0.00
Assets held for sale 0.00 0.00
Non-current assets due within one
0.000.00
year
Other current assets 66731233.06 56338463.11
Total current assets 5934789385.97 6272003069.33
Non-current assets:
Debt investments 0.00 0.00
Other debt investments 0.00 0.00
Long-term receivables 0.00 0.00
Long-term equity investments 7703097944.18 6646597702.06
Other equity instrument
16550000.0016550000.00
investments
Other non-current financial assets 0.00 0.00
Investment property 117273455.37 122158556.01
Fixed assets 239950369.38 164458168.94
Construction in progress 0.00 32000978.77
Productive biological assets 0.00 0.00
Oil & gas assets 0.00 0.00
Right-of-use assets 0.00 0.00
Intangible assets 26740634.44 21448416.46
Development expenditures 0.00 0.00
Goodwill 0.00 0.00
Long-term prepayments 0.00 0.00
Deferred tax assets 18122919.74 16436967.81
Other non-current assets 932619.13 2422590.14
Total non-current assets 8122667942.24 7022073380.19
128Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Total assets 14057457328.21 13294076449.52
Current liabilities:
Short-term borrowings 450357500.00 656030197.16
Held-for-trading financial liabilities 1167281.60 13075775.62
Derivative financial liabilities 0.00 0.00
Notes payable 0.00 100000000.00
Accounts payable 1238382198.05 1107917284.47
Advances received 0.00 0.00
Contractual liabilities 58701562.32 43237007.23
Employee benefits payable 61070459.75 52247521.65
Taxes and rates payable 32211961.74 35226805.80
Other payables 15986880.08 3392054.12
Including: Interest payable 0.00 0.00
Dividend payable 0.00 0.00
Liabilities held for sale 0.00 0.00
Non-current liabilities due within
875578132.0873583468.23
one year
Other current liabilities 917003.08 604815.09
Total current liabilities 2734372978.70 2085314929.37
Non-current liabilities:
Long-term borrowings 708270.00 792728586.65
Bonds payable 0.00 0.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Lease liabilities 0.00 0.00
Long-term payables 0.00 0.00
Long-term employee benefits
0.000.00
payable
Provisions 0.00 0.00
Deferred income 327332.57 795332.50
Deferred tax liabilities 3375906.47 2413918.11
Other non-current liabilities 0.00 0.00
Total non-current liabilities 4411509.04 795937837.26
Total liabilities 2738784487.74 2881252766.63
Equity:
Share capital 1202501992.00 1202501992.00
Other equity instruments 0.00 0.00
Including: Preferred shares 0.00 0.00
Perpetual bonds 0.00 0.00
Capital reserve 3999622372.57 3958727598.88
Less: Treasury shares 236625962.00 236625962.00
Other comprehensive income -32965723.38 -54066268.84
Special reserve 0.00 0.00
Surplus reserve 785212171.15 660095082.13
Undistributed profit 5600927990.13 4882191240.72
Total equity 11318672840.47 10412823682.89
Total liabilities & equity 14057457328.21 13294076449.52
3. Consolidated income statement
Unit: RMB
Item 2023 2022
I. Total operating revenue 10929992802.32 12610189590.33
Including: Operating income 10929992802.32 12610189590.33
Interest income 0.00 0.00
Premiums earned 0.00 0.00
129Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Revenue from handling charges and
0.000.00
commission
II. Total operating cost 9240335423.72 11041030293.49
Including: Operating cost 7454122092.19 9266922304.75
Interest expenses 0.00 0.00
Handling charges and commission
0.000.00
expenditures
Surrender value 0.00 0.00
Net payment of insurance claims 0.00 0.00
Net provision of insurance reserve 0.00 0.00
Premium bonus expenditures 0.00 0.00
Reinsurance expenses 0.00 0.00
Taxes and surcharges 43711142.65 47328748.68
Selling expenses 851283975.98 757228439.80
Administrative expenses 776183642.34 760961439.86
R&D expenses 322536093.62 319444535.16
Financial expenses -207501523.06 -110855174.76
Including: Interest expense 84769466.12 102114891.52
Interest income 139528683.81 83482441.75
Add: Other earnings 38182241.65 50671622.68
Investment income (or less: losses) 241291566.77 176927540.37
Including: Earnings from the
investment in associated Company 342117235.54 186224854.43
and joint venture
Gains from derecognition of
0.000.00
financial assets at amortized cost
Gains on foreign exchange (losses
0.000.00
presented by “-”)
Gains on net exposure to hedging
0.000.00
risk (or less: losses)
Gains on changes in fair value
50175050.93-50580428.04
(losses presented by “-”)
Credit impairment losses (losses
-3493974.1019113580.83
presented by “-”)
Assets impairment loss (losses
-24884814.56-61324795.37
presented by “-”)
Gains on asset disposal (losses
5810457.76-16894964.73
presented by “-”)
III. Operating profit (or less: losses) 1996737907.05 1687071852.58
Add: Non-operating revenue 2829375.43 1183010.44
Less: Non-operating expenditure 10858078.80 20981657.35
IV. Profit before tax (or less: total
1988709203.681667273205.67
loss)
Less: Income tax expenses 293995290.66 222099594.42
V. Net profit ("-" for net loss) 1694713913.02 1445173611.25
(I) Categorized by the continuity of
operations
1. Net profit from continuing
1694713913.021445173611.25
operations (“-” for net loss)
2. Net profit from discontinuing
0.000.00
operations (“-” for net loss)
(II) Categorized by the portion of
equity ownership
1. Net profit attributable to
1691612756.791419854709.56
shareholders of the parent Company
2. Net profit attributable to non- 3101156.23 25318901.69
130Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
controlling interests
VI. Other comprehensive income
117066457.29345138127.53
after tax
Items attributable to the owners of
116444521.87344782951.32
the parent Company
(I) Not to be reclassified
-5844140.40-57181824.00
subsequently to profit or loss
1. Remeasurement profits or losses
-5844140.40-57181824.00
of a defined benefit plan
2. Other comprehensive income
using the equity method that will 0.00 0.00
not be reclassified to profit or loss
3. Changes in fair value of other
0.000.00
equity instrument investments
4. Changes in fair value of
0.000.00
enterprise’s own credit risk
5. Others 0.00 0.00
(II) To be reclassified subsequently
122288662.27401964775.32
to profit or loss
1. Other comprehensive income
that can be reclassified to profit or 21100545.46 30873368.37
loss in equity method
2. Changes in fair value of other
0.000.00
debt investments
3. Amount of financial assets
reclassified into other 0.00 0.00
comprehensive income
4. Provision for credit impairment
0.000.00
of other debt investments
5. Cash flow hedging reserves 0.00 0.00
6. Exchange differences on
translation of foreign currency 101188116.81 371091406.95
financial statements
7. Others 0.00 0.00
Items attributable to non-
621935.42355176.21
controlling shareholders
VII. Total comprehensive income 1811780370.31 1790311738.78
Total comprehensive income
attributable to owners of the parent 1808057278.66 1764637660.88
Company
Total comprehensive income
attributable to non-controlling 3723091.65 25674077.90
interests
VIII. Earnings per share
(I) Basic EPS (yuan per share) 1.4162 1.2446
(II) Diluted EPS (yuan per share) 1.4162 1.2446
If a combination of enterprises under common control occurs during the current period the net profit realized by
the combined Company before the combination: RMB net profit realized by the combined Company in the prior
period: RMB
Legal representative: Qiu Jianping Person in charge of accounting: Ni Shuyi Person in charge of accounting
department: Ni Shuyi
4. Income statement of parent Company
Unit: RMB
Item 2023 2022
131Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
I. Business revenue 5100581314.29 4823927494.05
Less: Business cost 3792527183.47 3916985810.07
Taxes and surcharges 7715724.52 7125272.26
Selling expenses 173392838.87 157616107.21
Administrative expenses 166179737.65 158154677.59
R&D expenses 187893193.78 172795285.87
Financial expenses -143455738.47 -118107418.16
Including: Interest expense 46016538.72 61350280.13
Interest income 108657184.31 81159347.99
Add: Other earnings 17451841.60 26535450.88
Investment income (or less: losses) 445995857.81 212798675.79
Including: Earnings from the
investment in associated Company 343264489.19 185125266.05
and joint venture
Gains on derecognition of financial
assets measured at amortized cost 0.00 0.00
("-"for loss)
Gains on net exposure to hedging
0.000.00
risk (or less: losses)
Gains on changes in fair value
11908494.02-15881175.62
(losses presented by “-”)
Credit impairment losses (losses
-4822719.73-19083749.36
presented by “-”)
Assets impairment loss (losses
-1720872.69-766503.26
presented by “-”)
Gains on asset disposal (losses
-2578.2070451.00
presented by “-”)
II. Operating profit (“-” for loss) 1385138397.28 733030908.64
Add: Non-operating revenue 21839.75 624.86
Less: Non-operating expenditure 1221834.95 118114.79
III. Total profit (“-” for loss) 1383938402.08 732913418.71
Less: Income tax expenses 132767511.86 79911394.57
IV. Net profit (“-” for net loss) 1251170890.22 653002024.14
(I) Net profit from continuing
1251170890.22653002024.14
operations (“-” for net loss)
(II) Net profit from discontinued
0.000.00
operations (“-” for net loss)
V. Other comprehensive income
21100545.4630873368.37
after tax
(I) Not to be reclassified
0.000.00
subsequently to profit or loss
1. Remeasurement profits or losses
0.000.00
of a defined benefit plan
2. Other comprehensive income
using the equity method that will 0.00 0.00
not be reclassified to profit or loss
3. Changes in fair value of other
0.000.00
equity instrument investments
4. Changes in fair value of
0.000.00
enterprise’s own credit risk
5. Others 0.00 0.00
(II) To be reclassified subsequently
21100545.4630873368.37
to profit or loss
1. Other comprehensive income
that can be reclassified to profit or 21100545.46 30873368.37
loss in equity method
2. Changes in fair value of other 0.00 0.00
132Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
debt investments
3. Amount of financial assets
reclassified into other 0.00 0.00
comprehensive income
4. Provision for credit impairment
0.000.00
of other debt investments
5. Cash flow hedging reserves 0.00 0.00
6. Exchange differences on
translation of foreign currency 0.00 0.00
financial statements
7. Others 0.00 0.00
VI. Total comprehensive income 1272271435.68 683875392.51
VII. Income per share
(I) Basic EPS (yuan per share)
(II) Diluted EPS (yuan per share)
5. Consolidated statement of cash flows
Unit: RMB
Item 2023 2022
I. Cash flows from operating
activities:
Cash receipts from sales of goods or
11048006862.6712910612353.48
rendering of services
Net increase of client deposit and
0.000.00
interbank deposit
Net increase of central bank loans 0.00 0.00
Net increase of loans from other
0.000.00
financial institutions
Cash receipts from original
0.000.00
insurance contract premium
Net cash receipts from reinsurance 0.00 0.00
Net increase of policy-holder
0.000.00
deposit and investment
Cash receipts from interest
0.000.00
handling charges and commission
Net increase of loans from others 0.00 0.00
Net increase of repurchase 0.00 0.00
Net cash receipts from agency
0.000.00
security transaction
Receipts of tax refund 583201648.50 767676772.01
Other cash receipts related to
208205906.01172081769.11
operating activities
Subtotal of cash inflows from
11839414417.1813850370894.60
operating activities
Cash payments for goods purchased
5989741586.478589229524.03
and services received
Net increase of loans and advances
0.000.00
to clients
Net increase of central bank deposit
0.000.00
and interbank deposit
Cash payments for insurance
indemnities of original insurance 0.00 0.00
contracts
Net increase of loans to others 0.00 0.00
Cash payments for interest
0.000.00
handling charges and commission
133Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Cash payments for policy bonus 0.00 0.00
Cash paid to and on behalf of
2120346828.582037598678.58
employees
Cash payments for taxes and rates 452373215.20 419820083.63
Other cash payments related to
1151097861.281171885965.97
operating activities
Subtotal of cash outflows from
9713559491.5312218534252.21
operating activities
Net cash flows from operating
2125854925.651631836642.39
activities
II. Cash flows from investing
activities:
Cash receipts from withdrawal of
215228000.00167680415.22
investments
Cash receipts from investment
2073898.6967654596.08
income
Net cash receipts from the disposal
of fixed assets intangible assets and 23946188.31 40203072.92
other long-term assets
Net cash receipts from the disposal
of subsidiaries & other business 0.00 0.00
units
Other cash receipts related to
33448671.7470195704.98
investing activities
Subtotal of cash inflows from
274696758.74345733789.20
investing activities
Cash payments for the acquisition
of fixed assets intangible assets and 437785839.58 432498640.04
other long-term assets
Cash payments for investments 264938405.70 221000000.00
Net increase of pledged borrowings 0.00 0.00
Net cash payments for the
acquisition of subsidiaries & other 127498351.89 76724758.42
business units
Other cash payments related to
106497712.80129876712.70
investing activities
Subtotal of cash outflows from
936720309.97860100111.16
investing activities
Net cash flows from investing
-662023551.23-514366321.96
activities
III. Cash flows from financing
activities:
Cash receipts from absorbing
0.001087601650.11
investments
Including: Cash received by
subsidiaries from non-controlling 0.00 0.00
shareholders as investments
Cash receipts from borrowings 2366725718.44 3498929736.98
Other cash receipts related to
219062966.67104266666.67
financing activities
Subtotal of cash inflows from
2585788685.114690798053.76
financing activities
Cash payments for repayment of
3007635287.444431592234.99
borrowings
Cash payments for distribution of
dividends or profits and for interest 485345579.38 84667826.94
expenses
134Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Including: Cash paid by
subsidiaries to non-controlling 3661540.00 13170580.97
shareholders as dividend or profit
Other cash payments related to
324405035.75784289697.86
financing activities
Subtotal of cash outflows from
3817385902.575300549759.79
financing activities
Net cash flows from financing
-1231597217.46-609751706.03
activities
IV. Effect of foreign exchange rate
-41681587.83284522324.89
changes on cash & cash equivalents
V. Net increase in cash and cash
190552569.13792240939.29
equivalents
Add: Opening balance of cash and
4793427180.474001186241.18
cash equivalents
VI. Closing balance of cash and
4983979749.604793427180.47
cash equivalents
6. Cash flow of parent Company
Unit: RMB
Item 2023 2022
I. Cash flows from operating
activities:
Cash receipts from sales of goods or
4835766166.564918593279.27
rendering of services
Receipts of tax refund 430347044.12 478049259.74
Other cash receipts related to
120761810.0091105691.64
operating activities
Subtotal of cash inflows from
5386875020.685487748230.65
operating activities
Cash payments for goods purchased
4225129108.583482411796.27
and services received
Cash paid to and on behalf of
336593149.20316096416.76
employees
Cash payments for taxes and rates 144878031.37 135425402.10
Other cash payments related to
300115796.73274272238.19
operating activities
Subtotal of cash outflows from
5006716085.884208205853.32
operating activities
Net cash flows from operating
380158934.801279542377.33
activities
II. Cash flows from investing
activities:
Cash receipts from withdrawal of
79878183.33119399.32
investments
Cash receipts from investment
137938460.0078605425.60
income
Net cash receipts from the disposal
of fixed assets intangible assets and 30597.86 731000.00
other long-term assets
Net cash receipts from the disposal
of subsidiaries & other business 0.00 0.00
units
Other cash receipts related to
1500029015.02103688450.77
investing activities
Subtotal of cash inflows from 1717876256.21 183144275.69
135Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
investing activities
Cash payments for the acquisition
of fixed assets intangible assets and 55045787.35 39019508.60
other long-term assets
Cash payments for investments 617551952.54 154755189.04
Net cash payments for the
acquisition of subsidiaries & other 0.00 0.00
business units
Other cash payments related to
260731453.451360257082.16
investing activities
Subtotal of cash outflows from
933329193.341554031779.80
investing activities
Net cash flows from investing
784547062.87-1370887504.11
activities
III. Cash flows from financing
activities:
Cash receipts from absorbing
0.001087601650.11
investments
Cash receipts from borrowings 1989119500.00 2986019388.00
Other cash receipts related to
0.0018857097.90
financing activities
Subtotal of cash inflows from
1989119500.004092478136.01
financing activities
Cash payments for repayment of
2190236500.003637460412.39
borrowings
Cash payments for distribution of
dividends or profits and for interest 454071750.47 42758384.71
expenses
Other cash payments related to
17897921.26676660516.57
financing activities
Subtotal of cash outflows from
2662206171.734356879313.67
financing activities
Net cash flows from financing
-673086671.73-264401177.66
activities
IV. Effect of foreign exchange rate
-50071484.72108079052.78
changes on cash & cash equivalents
V. Net increase in cash and cash
441547841.22-247667251.66
equivalents
Add: Opening balance of cash and
1957673368.782205340620.44
cash equivalents
VI. Closing balance of cash and
2399221210.001957673368.78
cash equivalents
7. Consolidated statement of changes in owners' equity
Amount for the current period
Unit: RMB
2023
Owners' equity attributable to the parent Company
Non
Other equity Oth
Less Und -
instruments er Gen Tota
Shar Cap : Spe Sur istri cont
Item Pref Perp com eral l
e ital Trea cial plus bute Oth Subt rolli
erre etua preh risk equi
capi Oth rese sury rese rese d er otal ng
d l ensi rese ty
tal er rve shar rve rve prof inter
shar bon ve rve
es it est
es ds inco
136Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
me
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the 2.00 6.53 00 12 04 4.43 39
21
curr
ent
year
III.Am
ount
of
incr
ease
-
/dec 491 116 125 115 144 138
622
reas 070 444 117 917 984 762
0.000.000.000.000.000.000.000.00260
e 92.6 521. 089. 861 731 125
67.7
with 3 87 02 5.98 9.50 1.71
9
in
the
curr
ent
peri
od
137Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
("-"
for
less)
(I)
Tota
l
116169180181
com 372
444161805178
preh 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 309
521.275727037
ensi 1.65
876.798.660.31
ve
inco
me
(II)
Ow
ners
'
inve
stm
ent
0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
and
redu
ctio
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in
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tal
1.
Co
mm
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es 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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sted
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r
equi
ty
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ume
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3.
0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
Am
138Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
ount
of
shar
e-
base
d
pay
men
ts
reco
gniz
ed
in
own
ers'
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ty
4.
Oth 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ers
(III)
----
Prof 125
532407120419
it 117
0.000.000.000.000.000.000.000.000.004340.00317615378
distr 089.
140.051.40.0591.
ibuti 02
8179079
on
1.
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wal 125
117
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089.
surp 089.
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2.
Pro
visi
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0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
gen
eral
risk
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rve
3.
Dist
ribu
tion
----
to
407407120419
own
0.000.000.000.000.000.000.000.000.000.003170.00317615378
ers
051.051.40.0591.
(or
7979079
shar
ehol
ders
)
139Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
4.
Oth 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ers
(IV)
Inte
rnal
carr
y-
for
0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
war
d of
own
ers'
equi
ty
1.
Cap
ital
surp
lus
tran
sferr
ed
to
0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
paid
-in
capi
tal
(or
shar
e
capi
tal)
2.
Sur
plus
rese
rve
tran
sferr
ed
to
0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
paid
-in
capi
tal
(or
shar
e
capi
tal)
3.
Sur
plus
0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
rese
rve
to
140Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
cov
er
loss
es
4.
Cha
nges
in
defi
ned
ben
efit
plan
0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
s
carri
ed
over
to
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ned
earn
ings
5.
Oth
er
com
preh
ensi
ve
inco
me 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
carri
ed
over
to
retai
ned
earn
ings
6.
Oth 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ers
(V)
Spe
cial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
rese
rve
1.
Wit
hdra
wn
for
0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
the
curr
ent
peri
od
141Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2.
Use
d
for
the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
curr
ent
peri
od
-
491491-
(VI) 538
070070478
Oth 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 876
92.692.6052
ers 19.4
336.81
4
IV.End
ing
bala 148 150
120399236231788886164
nce 479 125
250988625453960180591
of 0.00 0.00 0.00 0.00 0.00 0.00 800 714
199602962.437.468.411420.
the 75.6 96.2
2.009.160099060.4160
curr 2 2
ent
peri
od
Amount in the previous period
Unit: RMB
2022
Owners' equity attributable to the parent Company
Other equity Oth Non
instruments Less er Und -
Gen Tota
Shar Cap : com Spe Sur istri cont
Item Pref Perp eral l
e ital Trea preh cial plus bute Oth Subt rolli
erre etua risk equi
capi Oth rese sury ensi rese rese d er otal ng
d l rese ty
tal er rve shar ve rve rve prof inter
shar bon rve
es inco it est
es ds
me
I.End
ing
-105108
bala 114 292 186 598 634 214
229988132
nce 343 495 441 543 817 393
0.000.000.007740.000.00967897
of 849 184 914. 176. 933 044.
189.46.790.8
the 2.00 4.93 48 63 6.72 14
1004
prev
ious
year
Add
:
Cha - - -
nges 153. 108 108 647. 107
0.000.000.000.000.000.000.000.000.00
in 9 349. 195. 73 547.acco 44 54 81
unti
ng
142Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
poli
cies
Corr
ecti
on
for
0.000.000.000.000.000.000.000.000.000.000.000.000.000.00
prev
ious
erro
rs
Oth
0.000.000.000.000.000.000.000.000.000.000.000.000.000.00
er
II.Ope
ning
-105108
bala 114 292 186 598 634 214
229987131
nce 343 495 441 543 807 393
0.000.000.007740.000.00885822
for 849 184 914. 176. 098 691.
035.51.143.0
the 2.00 4.93 48 63 7.28 87
2063
curr
ent
year
Am
ount
of
incr
ease
/dec
reas
e 590 102 501 344 653 135 279 124 281
with 635 582 840 782 002 455 934 237 176
0.000.000.000.000.00
in 00.0 709 47.5 951. 02.4 450 420 96.5 800
the 0 1.60 2 32 1 7.15 4.96 2 1.48
curr
ent
peri
od
("-"
for
less)
(I)
Tota
l
344141176256179
com
782985463740031
preh 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
951.47076677.9173
ensi
329.560.8808.78
ve
inco
me
(II)
Ow
ners 590 101 107 107
'635226132132
0.000.000.000.000.000.000.000.000.000.00
inve 00.0 479 829 829
stm 0 6.24 6.24 6.24
ent
and
143Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
redu
ctio
ns
in
capi
tal
1.
Co
mm
on
590101107107
shar
635226132132
es 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
00.0479829829
inve
06.246.246.24
sted
by
own
ers
2.
Cap
ital
cont
ribu
tion
fro
m
hold
0.000.000.000.000.000.000.000.000.000.000.000.000.000.00
ers
of
othe
r
equi
ty
instr
ume
nts
3.
Am
ount
of
shar
e-
base
d
pay
men 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ts
reco
gniz
ed
in
own
ers'
equi
ty
4.
Oth 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ers
144Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(III)
---
Prof 653
653131131
it 002
0.000.000.000.000.000.000.000.000.000020.00705705
distr 02.4
02.480.980.9
ibuti 1
177
on
1.
Wit
hdra -
653
wal 653
002
of 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 002 0.00 0.00 0.00
02.4
surp 02.4
1
lus 1
rese
rve
2.
Pro
visi
on
for
0.000.000.000.000.000.000.000.000.000.000.000.000.000.00
gen
eral
risk
rese
rve
3.
Dist
ribu
tion
--
to
131131
own
0.000.000.000.000.000.000.000.000.000.000.000.00705705
ers
80.980.9
(or
77
shar
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ders
)
4.
Oth 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ers
(IV)
Inte
rnal
carr
y-
for
0.000.000.000.000.000.000.000.000.000.000.000.000.000.00
war
d of
own
ers'
equi
ty
1.
Cap
ital 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
surp
lus
145Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
tran
sferr
ed
to
paid
-in
capi
tal
(or
shar
e
capi
tal)
2.
Sur
plus
rese
rve
tran
sferr
ed
to
0.000.000.000.000.000.000.000.000.000.000.000.000.000.00
paid
-in
capi
tal
(or
shar
e
capi
tal)
3.
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plus
rese
rve
0.000.000.000.000.000.000.000.000.000.000.000.000.000.00
to
cov
er
loss
es
4.
Cha
nges
in
defi
ned
ben
efit
0.000.000.000.000.000.000.000.000.000.000.000.000.000.00
plan
s
carri
ed
over
to
retai
ned
146Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
earn
ings
5.
Oth
er
com
preh
ensi
ve
inco
me 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
carri
ed
over
to
retai
ned
earn
ings
6.
Oth 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
ers
(V)
Spe
cial 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
rese
rve
1.
Wit
hdra
wn
for
0.000.000.000.000.000.000.000.000.000.000.000.000.000.00
the
curr
ent
peri
od
2.
Use
d
for
the 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
curr
ent
peri
od
--
135501-
(VI) 366 367
622840797
Oth 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 217 014
95.347.500.4
ers 52.1 52.5
621
67
IV.
133136
End 120 395 236 115 663 770 226
981249
ing 250 077 625 008 843 262 817
0.000.000.000.000.00327502
bala 199 893 962. 916. 379. 549 488.
56.144.5
nce 2.00 6.53 00 12 04 4.43 39
21
of
147Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
the
curr
ent
peri
od
8. Statement of changes in owners' equity of the parent Company
Amount for the current period
Unit: RMB
2023
Other equity Other
instruments Capit Less: comp Speci Surpl Undis
Share
Item al Treas rehen al us tribut Total
capita Prefer Perpe Other
reserv ury sive reserv reserv ed equity
l red tual Other
e shares incom e e profit
shares bonds
e
I.Endin
g
-1041
balan 1202 3958 2366 6600 4882
54062823
ce of 5019 0.00 0.00 0.00 7275 2596 0.00 9508 1912 0.00
6268.682.8
the 92.00 98.88 2.00 2.13 40.72
849
previ
ous
year
Add:
Chan
ges in
accou 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
nting
polici
es
Corre
ction
for
0.000.000.000.000.000.000.000.000.000.000.000.00
previ
ous
errors
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II.Openi
ng
-1041
balan 1202 3958 2366 6600 4882
54062823
ce for 5019 0.00 0.00 0.00 7275 2596 0.00 9508 1912 0.00
6268.682.8
the 92.00 98.88 2.00 2.13 40.72
849
curre
nt
year
Amou
nt of
increa 4089 2110 1251 7187 9058
se/dec 0.00 0.00 0.00 0.00 4773. 0.00 0545. 0.00 1708 3674 0.00 4915
rease 69 46 9.02 9.41 7.58
withi
n the
148Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
curre
nt
perio
d ("-"
for
less)
(I)
Total
comp 2110 1251 1272
rehen 0.00 0.00 0.00 0.00 0.00 0.00 0545. 0.00 0.00 1708 0.00 2714
sive 46 90.22 35.68
incom
e
(II)
Owne
rs'
invest
ment
and 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reduct
ions
in
capita
l
1.
Com
mon
shares
0.000.000.000.000.000.000.000.000.000.000.000.00
invest
ed by
owner
s
2.
Capit
al
contri
butio
n
from 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
holde
rs of
other
equity
instru
ments
3.
Amou
nt of
share-
based
paym
0.000.000.000.000.000.000.000.000.000.000.000.00
ents
recog
nized
in
owner
s'
149Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
equity
4.
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
s
(III)
--
Profit 1251
53244073
distri 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1708 0.00
34141705
butio 9.02
0.811.79
n
1.
Withd
rawal -
1251
of 1251
0.000.000.000.000.000.000.000.0017080.000.00
surplu 1708
9.02
s 9.02
reserv
e
2.
Distri
butio
--
n to
40734073
owner 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
17051705
s (or
1.791.79
share
holde
rs)
3.
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
s
(IV)
Intern
al
carry-
forwa 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
rd of
owner
s'
equity
1.
Capit
al
surplu
s
transf
erred
to 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
paid-
in
capita
l (or
share
capita
l)
2.
Surpl
0.000.000.000.000.000.000.000.000.000.000.000.00
us
reserv
150Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
e
transf
erred
to
paid-
in
capita
l (or
share
capita
l)
3.
Surpl
us
reserv 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
e to
cover
losses
4.
Chan
ges in
define
d
benefi
t
plans 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
carrie
d over
to
retain
ed
earnin
gs
5.
Other
comp
rehen
sive
incom
e
0.000.000.000.000.000.000.000.000.000.000.000.00
carrie
d over
to
retain
ed
earnin
gs
6.
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
s
(V)
Speci
al 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
reserv
e
1.
0.000.000.000.000.000.000.000.000.000.000.000.00
Withd
151Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
rawn
for
the
curre
nt
perio
d
2.
Used
for
the
0.000.000.000.000.000.000.000.000.000.000.000.00
curre
nt
perio
d
(VI) 4089 4089
Other 0.00 0.00 0.00 0.00 4773. 0.00 0.00 0.00 0.00 0.00 0.00 4773.s 69 69
IV.Endin
g
balan - 1131
12023999236678525600
ce of 3296 8672
50190.000.000.00622325960.00121792790.00
the 5723. 840.4
92.0072.572.001.1590.13
curre 38 7
nt
perio
d
Amount in the previous period
Unit: RMB
2022
Other equity Other
instruments Capit Less: comp Speci Surpl Undis
Share
Item al Treas rehen al us tribut Total
capita Prefer Perpe Other
reserv ury sive reserv reserv ed equity
l red tual Other
e shares incom e e profit
shares bonds
e
I.Endin
g
-
balan 1143 2930 1864 5947 4298 8696
8493
ce of 4384 0.00 0.00 0.00 6575 4191 0.00 9487 5606 0699
9637.
the 92.00 01.76 4.48 9.72 64.99 86.78
21
previ
ous
year
Add:
Chan
ges in
accou 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
nting
polici
es
Corre
0.000.000.000.000.000.000.000.000.000.000.00
ction
152Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
for
previ
ous
errors
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
II.Openi
ng
-
balan 1143 2930 1864 5947 4298 8696
8493
ce for 4384 0.00 0.00 0.00 6575 4191 0.00 9487 5606 0699
9637.
the 92.00 01.76 4.48 9.72 64.99 86.78
21
curre
nt
year
Amou
nt of
increa
se/dec
rease
withi 5906 1028 5018 3087 6530 5836 1716
n the 3500. 0.00 0.00 0.00 0700 4047. 3368. 0.00 0202. 3057 7536
curre 00 97.12 52 37 41 5.73 96.11
nt
perio
d ("-"
for
less)
(I)
Total
comp 3087 6530 6838
rehen 0.00 0.00 0.00 0.00 0.00 0.00 3368. 0.00 0.00 0202 7539
sive 37 4.14 2.51
incom
e
(II)
Owne
rs'
invest
ment 5906 1012 1071
and 3500. 0.00 0.00 0.00 2647 0.00 0.00 0.00 0.00 0.00 3282
reduct 00 96.24 96.24
ions
in
capita
l
1.
Com
mon
590610121071
shares
3500.0.000.000.0026470.000.000.000.000.003282
invest
0096.2496.24
ed by
owner
s
2.
Capit
0.000.000.000.000.000.000.000.000.000.000.00
al
contri
153Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
butio
n
from
holde
rs of
other
equity
instru
ments
3.
Amou
nt of
share-
based
paym
ents 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
recog
nized
in
owner
s'
equity
4.
Other 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
s
(III)
-
Profit 6530
6530
distri 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0202. 0.00
0202.
butio 41
41
n
1.
Withd
rawal -
6530
of 6530
0.000.000.000.000.000.000.000.000202.0.00
surplu 0202.
41
s 41
reserv
e
2.
Distri
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154Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
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155Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
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III. Basic Information of the Company
Jointly established by natural persons Qiu Jianping Wang Lingling Li Zheng Wang Weiyi and Wang Min
Hangzhou GreatStar Industrial Co. Ltd. (hereinafter referred to "Company" or the "Company") was approved by
the Hangzhou Administration for Industry and Commerce and registered with the Hangzhou Administration for
Industry and Commerce headquartered in Hangzhou Zhejiang on August 9 2001. The Company holds the business
license and its Unified Social Credit Code is 91330000731506099D with registered capital of RMB
156Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
1202501992.00 and a total of 1202501992 shares (par value of RMB 1 per share) including 51472904
outstanding A-shares restricted for sale and 1151029088 outstanding A-shares unrestricted for sale. The
Company's shares have been listed for trading on July 13 2010 on the Shenzhen Stock Exchange.The Company is a player under the hardware industry mainly engaged in the research and development production
and sale of hand tools power tools laser measurement tools storage cabinets.The Financial Statements have been authorized for issuance with the approval of the 6th Meeting of the 6th Board
of Directors on April 24 2024.IV. Basis for Preparing the Financial Statements
1. Basis for preparation
These Financial Statements of the Company are prepared on a going concern basis.
2. Going concern
There are no matter or circumstance that results in any significant doubt about the Company's ability to continue as
a going concern for a period of 12 months from the end of the reporting period.V. Significant Accounting Policies and Accounting Estimates
Reminder to specific accounting policies and accounting estimates:
Important Notes: The Company formulated specific accounting policies and estimates for transactions or matters
such as impairment of financial instruments inventory depreciation of fixed assets construction in progress
intangible assets and revenue recognition.
1. Statement of compliance with accounting standards for business enterprises
These Financial Statements prepared by the Company comply with the requirements of the Accounting Standards
for Business Enterprises and give an authentic and complete picture of the Company's financial position results of
operations and cash flows and other relevant information.
2. Accounting period
The fiscal year starts from January 1 to December 31 on Gregorian calendar.
3. Business cycle
The Company features a short period of business operations with 12 months as the standard for the liquidity of its
assets and liabilities.
4. Recording currency
The Company and its domestic subsidiaries take Renminbi (RMB) as recording currency. Hong Kong GreatStar
International Co. Ltd. GreatStar Tools USA Inc GreatStar Europe AG and other overseas subsidiaries which are
engaged in foreign operations select the currency of the principal economic environments in which they operate as
the recording currency.
5. Determination method and selection basis of materiality standard
□√ Applicable □ Not Applicable
Item Materiality standard
The Company recognizes the construction in progress
Important construction in progress whose amount exceeds 0.5% of the total assets as an
important construction in progress
The Company recognizes the combination of asset
groups whose original book value of goodwill exceeds
Important goodwill
10% of the total original book value of the Group's
goodwill as an important goodwill
The Company recognizes the cash flow from investing
Important cash flow from investing activities
activity exceeding 5% of the total assets as an important
157Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
cash flow from investment activities
The Company recognizes overseas operating entities
Important overseas operating entity whose total revenue exceeds 5% of the Group's total
revenue as important overseas operating entities
The Company recognizes subsidiaries whose total
revenue exceeds 15% of the Group's total revenue as
Important subsidiary and non-wholly owned subsidiary
important subsidiaries and important non-wholly
owned subsidiaries
The Company recognizes joint ventures whose total
Important joint venture revenue exceeds 15% of the Group's total revenue as
important joint ventures
The Company recognizes the commitment whose
Important commitments amount exceeds 0.5% of the total assets as an important
commitment
The Company recognizes the contingent event whose
Important contingencies amount exceeds 0.5% of the total assets as an important
contingent event
The Company recognizes the event subsequent to the
balance sheet date whose amount exceeds 0.5% of the
Important events subsequent to the balance sheet date
total assets as an important event subsequent to the
balance sheet date
6. Accounting method for consolidation of enterprises under or not under the joint control
1. Accounting methods for consolidation of enterprises under the joint control
Assets and liabilities acquired by the Company in a consolidation are measured at the book value of the party being
consolidated in the consolidated financial statements of ultimate controlling party at the date of consolidation. The
Company adjusts capital surplus by the difference between the share of the book value of the owners' equity of the
party being consolidated in the consolidated financial statements of the ultimate controlling party and the book value
of the consideration paid for the consolidation or the total nominal value of the shares issued. If capital surplus is
insufficient for write-down the retained earnings shall be adjusted.
2. Accounting methods for consolidation of enterprises not under the joint control
The Company recognizes the difference of the cost of consolidation minus the share of fair value of the identifiable
net assets of the acquiree acquired in the consolidation at the date of purchase as the goodwill. If the cost of
consolidation is less than the share of fair value of the identifiable net assets of the acquiree acquired in the
consolidation the Company firstly reviews the fair value of each of identifiable assets liabilities and contingent
liabilities acquired from the acquiree as well as the measurement of consolidation cost; and if the cost of
consolidation remains less than the share of fair value of the identifiable net assets of the acquiree acquired in the
consolidation upon review the difference is recognized in the current profits or losses.
7. Criteria for joint control and methods for preparing consolidated financial statements
1. Recognition of control
Control is recognized if one entity has the power over the invested entity enjoying variable returns through
participating in related activities of the invested entity and has the ability to use the power over the invested entity
to influence its variable return amount.
2. Method of preparing consolidated financial statements
The parent company includes all its controlled subsidiaries in the scope of the consolidated financial statements.The consolidated financial statements are based on the financial statements of the parent company and its
subsidiaries and other relevant data and are prepared by the parent company in accordance with Accounting
Standards for Business Enterprises No. 33 - Consolidated Financial Statements.
8. Classification of joint venture arrangements and accounting method for joint operations
1. Joint venture arrangements are divided into joint operation and joint venture.
158Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2. Where the Company is a joint party in a joint operation the following items related to the share of interest in the
joint operation shall be recognized:
(1) To recognize the assets held assumed solely by the Company and the assets held assumed jointly as per the
shares of the Company;
(2) To recognize the liabilities held assumed solely by the Company and the assets held assumed jointly as per the
shares of the Company;
(3) To recognize revenue from disposal of the share of joint operations of the Company to be sold;
(4) To recognize revenue from joint operations arising from the sale of assets based on the shares held by the
Company; and
(5) To recognize fees solely occurred by Company and recognize fees from joint operations in appropriation to the
share of the Company.
9. Recognition criteria of cash and cash equivalents
Cash set out in the cash flow statement refers to stock cash and bank deposits that can be used for payment at any
time. Cash equivalent refers to investment that is held for a short period highly mobile easily convertible into given
amount of cash and unlikely to change in value.
10. Translation of foreign-currency transactions and foreign-currency financial statements
1. Translation of foreign-currency transactions
In the initial recognition of foreign currency transactions amounts in foreign currency are translated into amounts
in RMB at the spot exchange rate on the transaction date. Foreign-currency monetary items at the balance sheet date
are translated with the spot exchange rate on the same date and the exchange differences arising from different
exchange rates except for the exchange differences on the principal of and interest on special foreign-currency
borrowings relating to the acquisition and setup of assets eligible for capitalization are recognized in current
gains/losses; foreign currency non-monetary items measured with historical cost are still converted based on the
spot exchange rate on the transaction date without changing its RMB amount; and for the foreign currency non-
monetary items measured with fair value conversion is made as per the spot exchange rate on the date when the
fair value is defined with the different stated as the current profits or losses or other comprehensive income.
2. Translation of foreign-currency financial statements
The asset items and liability items in the balance sheet adopt the exchange rate of the balance sheet date for
translation; the owners' equity items adopt the exchange rate of date when the transactions occurred except for the
items of “undistributed profit”; and the revenues and expenses items in the income statements are translated by the
rate similar to the spot rate on the date of transaction. Differences in translation of foreign-currency financial
statements arising from the foregoing are stated as other comprehensive income.
11. Financial instruments
1. Classification of financial assets and financial liabilities
Financial assets are classified into the three categories at initial recognition: (1) Financial assets measured at
amortized cost; (2) financial assets measured at fair value through other comprehensive income; and (3) financial
assets measured at fair value through current gains/losses.Financial liabilities are classified into four categories at initial recognition: (1) Financial liabilities measured at fair
value through current gains/losses; (2) financial liabilities resulting from unqualified transfer of financial assets on
derecognition or from continued involvement in the transferred financial assets; (3) financial guarantee contracts
that do not fall under (1) or (2) above and loan commitments that fall out of (1) above and that are loaned out at a
lower-than-market interest rate; and (4) financial liabilities measured at amortized cost.
2. Basis of recognition measurement method and derecognition conditions of financial assets and financial
liabilities
(1) Basis of recognition and initial measurement of financial assets and financial liabilities
159Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
The Company recognizes an item of financial asset or financial liability at the time when it becomes one party to a
contract of the financial instruments. On initial recognition a financial asset or financial liability is measured at fair
value; for financial assets and financial liabilities at fair value through current profits or losses the related
transaction costs are recognized directly in the current profits or losses; for other categories of financial assets or
financial liabilities relevant transaction costs are included in the amount of initial recognition. However if the
receivables initially recognized by the Company exclude significant financing components or if the Company does
not consider any financing component in a contract of less than a year the Company initially measures the
receivables in accordance with the transaction price as defined in Accounting Standards for Business Enterprises
No. 14 -Revenue.
(2) Subsequent measurement of financial assets
1) Financial assets measured at amortized cost
Such financial liabilities are measured subsequently at amortized cost by the actual interest rate method. Profits or
losses arising from financial assets measured at amortized cost that are not part of any hedging relationship are
recognized in the current profits or losses when they are derecognized reclassified amortized by the effective
interest rate method or recognized as impairment.
2) Investment in debt instruments measured at fair value through other comprehensive income
Such financial asset is measured subsequently at fair value. Interest impairment losses or gains and exchange
gains/losses calculated using the method of effective interest rate are recognized in the current profits or losses for
the period. Upon derecognition the cumulative profits or losses previously recognized in other comprehensive
income is transferred out and recognized in current gains/losses.
3) Investment in equity instruments at fair value through other comprehensive income
Such financial asset is measured subsequently at fair value. Dividends received (except for those attributable to the
investment costs recovered) are recognized in current gains/losses and other profits or losses are recognized in other
comprehensive income. Upon derecognition the cumulative profits or losses previously recognized in other
comprehensive income is transferred therefrom to retained earnings.
4) Financial assets measured at fair value through current gains/losses
Profits or losses arising from subsequent measurement at fair value including interest and dividend income are
stated as current gains/losses unless the financial assets are part of a hedging relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through current gains/losses
Such financial liabilities comprise those held for trading (including derivatives that are financial liabilities) and
those designated for measurement at fair value through current gains/losses. Such financial liabilities are measured
subsequently at fair value. The amount of changes in the fair value of financial liabilities designated for
measurement at fair value through current gains/losses arising from changes in the Company's credit risk is
recognized in other comprehensive income unless such disposal would create or enlarge the accounting mismatch
in gains/losses. Other profits or losses arising from such financial liabilities (including interest cost and changes in
fair value other than those arising from changes in the Company's credit risk) are recognized in current gains/losses
unless the financial liabilities are part of a hedging relationship. Upon derecognition the cumulative profits or losses
previously recognized in other comprehensive income is transferred therefrom to retained earnings.
2) Financial liabilities resulting from unqualified transfer of financial assets on derecognition or from continued
involvement in the transferred financial assets
Such financial liabilities are measured in accordance with Accounting Standards for Business Enterprises No.23 -
Transfer of Financial Assets.
3) Financial guarantee contracts that do not fall under (1) or (2) above and loan commitments that fall out of (1)
above and that are loaned out at a lower-than-market interest rate
Subsequent measurement after initial recognition is based on whichever is higher: (i) The amount of the provision
for losses determined in accordance with the regulations on impairment of financial instruments; or (ii) difference
160Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
between the amount initially recognized minus the amount of cumulative amortization defined in accordance with
Accounting Standards for Business Enterprises No. 14 - Revenue.
4) Financial liabilities measured at amortized cost
Such financial liabilities are measured at amortized cost using the effective interest method. Profits or losses arising
from financial liabilities measured at amortized cost and not part of any hedging relationship are recognized in the
current gains/losses at the time of derecognition and amortized by effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized if one of the following conditions is satisfied:
(i) The contractual right to receive cash flows from financial assets is terminated;
(ii) The financial asset is transferred and such transfer satisfies the regulations on derecognition of financial assets
under Accounting Standards for Business Enterprises No.23 - Transfer of Financial Assets.
2) Where a financial liability (or a portion thereof) is discharged from a present obligation such financial liability
(or such portion thereof) is derecognized accordingly.
3. Basis of recognition and measurement methods of financial assets
If the Company transfers nearly all the risks and rewards of ownership of a financial asset such financial asset is
derecognized and the right and obligation arising from or retained in the transfer is recognized as an asset or a
liability; if nearly all the risks and rewards on the ownership of a financial asset are retained the transferred financial
asset continues to be recognized. If the Company neither transfers nor retains nearly all risks and rewards on the
ownership of a financial asset the Company shall: (1) derecognize the financial asset and recognize the right and
obligation arising from or retained in the transfer if it has no control over the asset; and (2) recognize the relevant
financial asset and relevant financial liability by the extent of its continued involvement in the transferred financial
asset if it has control over the said financial asset.If the overall transfer of a financial asset satisfies the conditions for derecognition the difference between (1) the
book value of the transferred financial asset on the date of derecognition; and (2) the sum of the consideration from
the transfer of the financial asset and the amount of derecognized portion in the accumulated changes of fair value
originally stated as other comprehensive income (the financial asset involved in transfer is an investment in a debt
instrument measured at fair value through other comprehensive income) is recognized in current gains/losses.Should a portion of a financial asset be transferred and such transferred portion as a whole is qualified for
derecognition the book value of such financial asset as a whole before the transfer is apportioned between the
derecognized portion and the portion for continued recognition based on their respective fair value on the date of
transfer; and the difference between (1) the book value of the derecognized portion and (2) the sum of the
consideration for the derecognized portion and the amount of derecognized portion in the accumulated changes of
fair value originally stated as other comprehensive income (the financial asset involved in transfer is an investment
in a debt instrument measured at fair value through other comprehensive income) is recognized in current
gains/losses.
4. Methods for determining the fair value of financial assets and financial liabilities
The Company employs the appraisal technique that is applicable in current period and is supported by sufficient
available data and other information to determine the fair value of financial assets and financial liabilities. The
Company categorizes the inputs used in the valuation technique in the following levels and applies such inputs in a
certain order:
(1) Level-1 inputs are unadjusted offers in any active market for identical assets or liabilities that are available on
the measurement date;
(2) Level-2 inputs are those other than the Level-1 inputs and observable for underlying assets or liabilities directly
or indirectly including offers for similar assets or liabilities in any active market; offers for identical or similar
assets or liabilities in any inactive market; observable inputs other than offers (e.g. interest rates and yield curves
observable in normal intervals of offering; and market-validated inputs;
161Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(3) Level-3 inputs are unobservable inputs for the underlying assets or liabilities including interest rates that are
not directly observable or cannot be verified with observable market data stock volatility future cash flows
assuming retirement obligations in a business consolidation and financial projections with self-owned data.
5. Impairment of financial instruments
The Company impairs and recognizes provisions for loss based on expected credit losses on financial assets
measured at amortized cost investments in debt instruments at fair value through other comprehensive income
contract assets receivables from leasing loan commitments other than those classified as financial liabilities
measured at fair value through current gains/losses and financial guarantee contracts that are not classified as
financial liabilities measured at fair value through current gains/losses or financial liabilities resulting from
unqualified transfer of financial assets on derecognition or from continued involvement in the transferred financial
assets.Expected credit loss refers to the weighted average of credit loss of financial instruments weighted by the risk of
default. Credit loss represents the difference between all contractual cash flows discounted at the original effective
interest rate and receivable under the contract and all cash flows expected to be collected i.e. the present value of
the entire cash shortfall. In particular for any financial asset purchased or originated by the Company with credit
impaired such asset is discounted at effective interest rate upon credit adjustment.For any financial asset purchased or originated by the Company with credit impaired the Company recognizes only
the cumulative changes in expected credit losses over the entire period of existence from initial recognition as the
provision for losses on the balance sheet date.For the receivables and contract assets that result from transactions governed by Accounting Standards for Business
Enterprises No. 14 -Revenue and do not contain any significant financing component or for which the Company
does not consider a financing component in any contract of no more than a year the Company applies a simplified
measurement method to measure the provision for losses at an amount equivalent to the expected credit losses over
the entire period of existence.For any financial asset other than those measured by the above-mentioned methods the Company evaluates on each
balance sheet date whether the credit risk of such asset sees significant increase after initial recognition. If the credit
risk has increased significantly since initial recognition the Company measures the provision for losses based on
the amount of expected credit losses over the entire period of existence; if not the Company measures the provision
for losses based on the amount of expected credit losses of such financial instrument over the next 12 months.The Company uses reasonably available and supportable information including forward-looking information to
determine whether the credit risk of a financial instrument sees significant increase after initial recognition by
comparing the risk of default of the said financial instrument on the balance sheet date with the risk of default on
the date of initial recognition.On the balance sheet date if the Company believes that a financial instrument features a low credit risk it shall be
assumed that its credit risk has not increased significantly since initial recognition.The Company evaluates expected credit risks and measures expected credit losses based on a single financial
instrument or a portfolio of financial instruments. Where a portfolio of financial instruments is applied the Company
classifies financial instruments into portfolios based on common risk features.The Company remeasures expected credit losses on each balance sheet date from which the amount increased or
reversed from the provision for losses resulted is recognized as impairment profits or losses in current gains/losses.For any financial asset measured at amortized cost the provision for losses is offset against the book value of such
financial asset as stated in the balance sheet; for any debt investment measured at fair value through other
comprehensive income the Company recognizes its provision for losses in other comprehensive income without
offsetting the book value of the financial asset.
6. Offset between financial assets and financial liabilities
Financial assets and financial liabilities are presented separately in the balance sheet and are not mutually offset.However where both of the following conditions are met the financial assets and financial liabilities will be
presented in the balance sheet with the net amount after mutual offset: (1) The Company has the legal right to offset
the recognized amount which is executable for; and (2) the Company plans to make settlement in net amount or
realizes the financial assets and settles the financial liabilities simultaneously.
162Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
When a financial asset is transferred without satisfying the conditions for derecognition the Company does offset
such transferred financial asset and related liabilities.
12. Notes receivable
The Company refers to the historical credit loss and combines the current situation and the projections of future
economic situation in a bid to calculate the expected credit loss based on the default risk exposure and the expected
credit loss rate of the whole duration.
13. Accounts receivables
1. Accounts receivable and contract assets with expected credit losses measured on a portfolio basis
Basis for portfolio
Category Methods to measure expected credit losses
determination
The Company refers to the historical credit
loss combines the current situation and the
projections of future economic situation and
Receivables - Ageing combination Ageing prepares a comparison table between the
ageing of accounts receivables and expected
credit loss rate in a bid to calculate the
expected credit loss
The Company refers to the historical credit
loss combines the current situation and the
projections of future economic situation and
Other receivables - Ageing
Ageing prepares a comparison table between the
combination
ageing of other receivables and expected credit
loss rate in a bid to calculate the expected
credit loss
The Company calculates expected credit losses
Receivables from and
by reference to historical credit loss taking into
Other receivables - Portfolio of payables to connected
current conditions and projections of future
receivables from connected parties parties
economic conditions through default exposures
with consolidated scope within the
and expected credit loss rate over the entire
consolidation scope
period of existence.The Company refers to the historical credit
loss combines the current situation and the
projections of future economic situation and
Prepayments - Ageing combination Ageing prepares a comparison table between the
ageing of prepayments and expected credit loss
rate in a bid to calculate the expected credit
loss
2. The comparison table between the ageing of accounts receivables and expected credit loss rate
Accounts receivable Other receivables Advances paid
Ageing Expected credit loss Expected credit loss Expected credit loss
rate (%) rate (%) rate (%)
Within one year (inclusive the same
555
below)
1-2 years 10 10 10
2-3 years 20 20 20
3-4 years 30 30 30
4-5 years 50 50 50
163Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Accounts receivable Other receivables Advances paid
Ageing Expected credit loss Expected credit loss Expected credit loss
rate (%) rate (%) rate (%)
More than 5 years 100 100 100
The aging of accounts receivable/other receivables/prepayments starts from the month in which the payment
actually occurs.
3. Identification standards for accounts receivable and contract assets with expected credit losses measured on a
single item basis
For accounts receivable and contract assets whose credit risk is significantly different from the portfolio credit risk
the Company measures expected credit losses on a single item basis.
14. Contract assets
The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between
the fulfillment of performance obligations and clients' payment. The contractual assets and liabilities under the same
contract are shown on a net basis after mutual offset.The Company presents the right to receive consideration from a client that it owns unconditionally (i.e. depending
only on the passage of time) as a receivable and the right to receive consideration for a commodity transferred to a
client (depending on any factor other than the passage of time) as a contract asset.
15. Inventory
1. Category of inventories
Inventories include finished products or commodities held for sale in daily operations or work in progress or
materials and supplies to be consumed in production or provision of labor.
2. Method for appraising outgoing inventories
The Company appraises outgoing inventories with weighted-average system at the end of the month.
3. Stocktaking system of inventories
Stocktaking is based on perpetual inventory system.
4. Amortization of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized by lump sum.
(2) Packages
Low-value consumables are amortized by lump sum.
5. Provision for decline in value of inventories
Recognition criteria and accrual method for provision for decline in value of inventories
Inventories are valued at lower of cost and NRV (net realizable value) at the balance sheet date and the provision
for decline in value of inventories are made based on the difference between cost and NRV. The net realizable value
of an inventory directly for sale is determined in the normal production and operation by its estimated selling price
minus estimated selling expense(s) and related tax (es); and that of an inventory requiring processing is determined
in normal production and operation by the estimated selling price of the finished product minus estimated cost(s) to
incur by the time of completion estimated selling expense (s) and related tax (es). In case the price of part of an
inventory is specified in the contract but that of the other parts is not specified in the contract by the balance sheet
date their net realizable values are determined separately and compared with their corresponding costs in order to
determine the amount for withdrawal or reversal of provision for inventory depreciation.
164Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
16. Assets held for sale
1. Classification of non-current assets or disposal groups held for sale
The Company classifies non-current assets or disposal groups as held for sale where both of the following conditions
are satisfied: (1) The sale is imminent under current conditions based on the common practice of selling such assets
or disposal groups in similar transactions; and (2) the sale is highly possible i.e. the Company has resolved on a
plan for the sale and obtained a firm commitment to purchase and the sale is expected to be completed within one
year.Non-current assets or disposal groups acquired by the Company for the sole purpose of resale are classified as held
for sale on the date of acquisition if on the date of acquisition the condition that "the sale is expected to be
completed within one year" is satisfied and other conditions for classification as held for sale are also likely to be
satisfied within a short period of time (normally three months).If any transaction between or among unconnected parties fails to be completed within one year for any of the
following reasons beyond the control of the Company and the Company remains committed to selling the non-
current assets or disposal groups such assets or groups will continue to be classified as held for sale: (1) The buyer
or any other party unexpectedly sets conditions that result in a delay in the sale and the Company has acted on those
conditions in a timely manner and expects to successfully resolve the delay within one year upon the setting; (2)
any rare event occurs that causes the sale of the non-current assets or disposal groups held for sale not to be
completed within one year and the Company has addressed such event within the initial year for which the
conditions for classification of those held for sale have been satisfied.
2. Accounting method for non-current assets or disposal groups held for sale
(1) Initial measurement and subsequent measurement
At the initial measurement of and remeasurement on balance sheet date of non-current assets or disposal groups
held for sale if the book value is higher than the fair value less costs to sell the book value is written down to a net
amount of fair value less costs to sell and the amount of write-down is stated as an impairment loss on the assets
through current gains/losses and a provision for impairment of the assets held for sale is withdrawn.Non-current assets or disposal groups classified as held for sale on the date of acquisition measured at whichever is
lower amount of initial measurement that would have been determined assuming that they were not classified as
held for sale or the net amount of fair value less costs to sell. Except for the non-current assets or disposal groups
acquired in a business consolidation the difference arising from the initial measurement of a non-current asset or
disposal group at fair value less costs to sell is recognized in current gains/losses.The amount of asset impairment loss recognized for a disposal group held for sale is offset against the book value
of goodwill in the disposal group and then against the book value of each non-current asset on a pro rata basis by
its proportion in the disposal group.Non-current assets held for sale or in the disposal groups shall not be depreciated or amortized and interest and
other expenses of liabilities in the disposal groups held for sale shall be recognized.
(2) Accounting method for reversal of assets impairment loss
If the net amount of the fair value of non-current assets held for sale after subtracting the selling expense increases
at subsequent balance sheet dates the amount previously written down shall be restored. Moreover the amount of
assets impairment loss recognized after non-current assets are classified as held for sale shall be reversed and
recorded in profit or loss for the current period. The assets impairment loss recognized before non-current assets are
classified as held for sale shall not be reversed.If the net amount of the fair value of disposal groups held for sale after subtracting the selling expense increases at
subsequent balance sheet dates the amount previously written down shall be restored. Moreover the amount of
assets impairment loss recognized after non-current assets are classified as held for sale shall be reversed and
recorded in profit or loss for the current period. The book value of goodwill that has been written off and the assets
impairment loss recognized before non-current assets are classified as held for sale shall not be reversed.
165Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
For the subsequently reversed amount of the asset impairment loss recognized on disposal groups held for sale the
book value shall be increased based on the proportion of the book value of each non-current asset except goodwill
in the disposal group.
(3) Discontinued classification as held for sale and derecognition
When non-current assets or disposal groups are no longer classified as held for sale because they do not meet the
corresponding conditions or non-current assets are removed from disposal groups held for sale they shall be
measured at the lower of the following: 1) the book value before being classified as held for sale adjusted for
depreciation amortization or impairment that would have been recognized had they not been classified as held for
sale; 2) the recoverable amount.At the time of derecognition of non-current assets or disposal groups held for sale the unrecognized profits or losses
shall be recorded in profit or loss for the current period.
3. Recognition criteria for discontinued operations
A separately distinguishable component that has been disposed of or is held for sale and meets one of the following
conditions is recognized as a discontinued operation:
(1) The component represents an independent main business or an independent main business area;
(2) The component is part of a plan concerning the proposed disposal of an independent main business or an
independent main business area;
(3) This component is a subsidiary acquired exclusively for resale.
4. Presentation method for discontinued operations
The Company presents the profit or loss from continuing operations and the profit or loss from discontinued
operations separately in the income statement. Operating profit or loss and profit or loss from disposal such as the
impairment loss and the reversed amount from discontinued operations are reported as profit or loss from
discontinued operations. For the discontinued operations reported in the current period the data originally presented
as the profit or loss from continuing operations shall be re-presented as the profit or loss from discontinued
operations for the comparable period in the current financial statements. If the discontinued operation no longer
meets the criteria to be classified as held for sale the data originally presented as the profit or loss from discontinued
operations shall be re-presented as the profit or loss from continuing operations for the comparable period in the
current financial statements.
17. Long-term equity investments
1. Recognition of joint control and significant influence
Joint control refers to the shared control over an arrangement regarding which activities can be decided on only
with the unanimous consent of the parties sharing control as agreed upon. Significant influence refers to the power
to participate in decision-making on the financial and operating policies of the investee but with no control or joint
control over the formulation of these policies.
2. Determination of investment cost
(1) For business combination under common control where long-term equity investments are obtained by cash paid
non-Monetary funds paid assumed liabilities or equity securities issued as consideration by the combining party
on the combination date the initial investment cost shall be taken as the share of the owner's equity of the combined
party at book value in the final control party's consolidated financial statements. According to the difference between
the initial investment cost of long-term equity investments and the book value of the consideration paid or the
aggregate nominal value of shares issued capital reserve shall be written down. If the capital reserve is not sufficient
to be written down then the retained earnings shall be written down.For long-term equity investments resulting from business combinations involving entities under common control
which are achieved step by step in multiple transactions the Company will assess whether these transactions
constitute a "package deal". Each of these transactions shall be accounted for as a transaction for acquisition of
control if they constitute a "package deal". Otherwise the initial investment cost shall be recognized on the
combination date according to the share of the combined party's net assets to be acquired after combination at book
166Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
value in the final control party's consolidated financial statements. According to the difference between the initial
investment cost of long-term equity investments on the combination date and the sum of the book value of long-
term equity investments before combination plus the book value of the consideration paid for further acquisition of
shares on the combination date capital reserve shall be written down. If the capital reserve is not sufficient to be
written down then the retained earnings shall be written down.
(2) For business combination not under common control on the combination date the initial investment cost of
long-term equity investments shall be taken as the fair value of the consideration paid.For long-term equity investments resulting from business combinations involving entities not under common control
which are achieved step by step in multiple transactions different approaches in accounting method are adopted for
individual financial statements and consolidated financial statements as follows:
1) For individual financial statements the initial investment cost is calculated as the sum of the book value of
investments in equity originally held plus the additional investment cost using the cost method.
2) For consolidated financial statements whether these transactions constitute a "package deal" will be assessed.
Each of these transactions shall be accounted for as a transaction for acquisition of control if they constitute a
"package deal". For transactions do not constitute a "package deal" the target entity's equity held before the purchase
date shall be remeasured at the fair value of the equity on the purchase date and the difference between the fair
value and book value of the equity shall be recorded in investment income for the current period; if the target entity's
equity held before the purchase date involves other comprehensive income accounted with the equity method other
comprehensive income associated except when arising from the changes due to remeasurement of net liabilities or
net assets of defined benefit plan by the investor shall be transferred to income for the current period on the purchase
date.
(3) Other long-term equity investments not resulting from business combination: For long-term equity investments
obtained by cash paid the initial investment cost shall be the amount actually paid. For those obtained by equity
securities issued the initial investment cost shall be the fair value of equity securities issued. For those obtained by
debt restructuring the initial investment cost shall be recognized according to Accounting Standards for Business
Enterprises No. 12 - Debt Restructuring. For those obtained by the exchange of non-Monetary funds the initial
investment cost shall be recognized according to Accounting Standards for Business Enterprises No. 7 Exchange of
Non-Monetary funds.
3. Subsequent measurement and recognition of profit or loss
Where the Company is able to exercise control over an investee long-term equity investments are accounted for
using the cost method. Long-term equity investments in associates and joint ventures are accounted for using the
equity method.
4. Accounting method for disposal of investments in subsidiaries step by step in multiple transactions and loss of
control
(1) Judgment principles of whether the transactions constitute a "package deal"
Where the equity investment in a subsidiary is disposed of step by step through multiple transactions until it loses
control the Company shall judge whether the transactions constitute a "package deal" based on information
including the terms of the transaction agreement the consideration of disposal obtained the object of the sale of the
equity the method of disposal and the time of disposal for each step of the step-by-step transaction. The multiple
transactions constitute a "package deal" when the terms conditions and economic impacts of the multiple
transactions meet the following one or more conditions:
1) These transactions are entered into at the same time or after considering their impacts on each other;
2) These transactions as a whole may reach a complete business result;
3) The occurrence of a transaction depends on at least the occurrence of another transaction;
4) An individual transaction is not deemed as economic but is deemed as economic when considered with other
transactions.
(2) Accounting methods do not constitute a "package deal"
167Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(1) Individual financial statements
For the equity to be disposed of the difference between its book value and the actual acquisition price shall be
recorded in profit or loss for the current period. The residual equity which still has a significant influence on the
investee or for which joint control is exercised over the investee shall be accounted for using the equity method. If
no control or joint control is exercised over the investee or there is no significant influence on the investee the
accounting method shall be subject to Accounting Standards for Business Enterprises No. 22 Recognition and
Measurement of Financial Instruments.
(2) Consolidated financial statements
Prior to the loss of control according to the difference between the disposal price and the share of long-term equity
investments disposed of in the net assets of subsidiaries to be held and continuously calculated from the combination
date capital reserve (capital premium) shall be written down. If the capital reserve is not sufficient to be written
down then the retained earnings shall be written down.For the loss of control over former subsidiaries the residual equity shall be remeasured at the fair value on the date
of such loss. The difference between the sum of the consideration received from the disposal of the equity plus the
fair value of the residual equity and the share of former subsidiaries' net assets to be held and continuously calculated
from the combination date based on the shareholding ratio shall be recorded in investment income for the current
period in which the loss of control occurs and goodwill shall be written down. Other comprehensive income related
to equity investments in former subsidiaries shall be transferred to investment income for the current period at the
time of the loss of control.
(3) Accounting methods constitute a "package deal"
(1) Individual financial statements
Each of these transactions shall be accounted for as a transaction relating to disposal of investments in subsidiaries
and loss of control. However the difference between the disposal price and the book value of the long-term equity
investment corresponding to the disposal investment shall be recognized as other comprehensive income in
individual financial statements prior to the loss of control and at the time of the loss of control transferred to profit
or loss for the current period in which the loss of control occurs.
(2) Consolidated financial statements
Each of these transactions shall be accounted for as a transaction relating to disposal of investments in subsidiaries
and loss of control. However the difference between the disposal price and the share of investments disposed of in
the net assets of subsidiaries to be held shall be recognized as other comprehensive income in consolidated financial
statements prior to the loss of control and at the time of the loss of control transferred to profit or loss for the
current period in which the loss of control occurs.
18. Investment properties
Measurement model of investment properties
Cost model
Method of depreciation or amortization
1. Investment properties include land use rights leased out land use rights held and to be transferred after
appreciation and buildings leased out.
2. Investment properties are measured initially at cost and subsequently using the cost model and depreciated or
amortized in the same way as fixed assets and intangible assets.
19. Fixed assets
(1) Recognition criteria
Fixed assets refer to tangible assets held for the purpose of commodity production services rendering renting or
business administration with useful lives exceeding one accounting year. Fixed assets shall be recognized when
economic benefits are likely to flow in and costs can be measured reliably.
168Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(2) Depreciation method
Depreciation Annual depreciation
Category Depreciable life Residual rate
method rate
Straight-line
Buildings 20-25 years 0% 5% 5.00%-3.80%
method
Straight-line
General equipment 3-10 years 0% 10% 33.33%-9.00%
method
Straight-line
Special equipment 5-15 years 0% 10% 20.00%-6.00%
method
Transportation Straight-line
4-10 years 5% 10% 23.75%-9.00%
facilities method
20. Construction in progress
1. The construction in progress shall be recognized when the economic benefits are likely to flow to the Company
and the cost can be measured reliably. The construction in progress is measured at the actual cost incurred before it
is ready for its intended use.
2. The construction in progress shall be transferred to fixed assets at actual cost when it is ready for its intended use.
It shall be transferred to fixed assets at estimated value when it is ready for its intended use but the final settlement
of account has not been finished. The estimated value shall be adjusted according to the actual cost after the final
settlement of account while the accrued depreciation shall not be adjusted.The standard and time node for the construction in progress to be transferred to fixed
Category
assets
Machinery and The machinery and equipment meet the design requirements or the standards stipulated
equipment in the contract
(1) The substantial construction including installation has been finished completely or
substantially; (2) The amount of continuing disbursements for the houses and buildings
under acquisition and construction is very small or nearly no such disbursement incurs;
(3) The houses and buildings under acquisition and construction have met the design
Buildings or contract requirements or are basically in compliance with the design or contract
requirements; (4) If the final settlement of account has not been completed while the
construction project reaching the designed usable conditions the construction project
shall be transferred to fixed assets using estimated value based on the actual cost of the
project from the date of reaching the expected usable state
21. Borrowing costs
1. Recognition criteria for capitalization of borrowing costs
Borrowing costs are capitalized when they are directly attributable to the acquisition construction or production of
a qualifying asset and included in the cost of related assets. Other borrowing costs are recognized as expenses and
recorded in profit or loss for the current period when incurred.
2. Capitalization period of borrowing costs
(1) Borrowing costs can only begin to be capitalized if the following three conditions are all met simultaneously: 1)
The expenditures to acquire assets have been incurred; 2) The borrowing costs have been incurred; 3) The
acquisition construction or production activities to make the asset ready for its intended use or sale have begun.
(2) If the acquisition construction or production of assets that meet the conditions for capitalization is suspended
abnormally and the suspension lasts for more than 3 months the capitalization of borrowing costs will be suspended.The borrowing costs incurred during the suspension period will be recognized as current expenses until the
acquisition construction or production of such assets is resumed.
169Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(3) When the acquired constructed or produced asset that meets the conditions for capitalization is ready for its
intended use or sale the capitalization of borrowing costs will be stopped.
3. Capitalization rate and capitalized amount of borrowing costs
If a special loan is borrowed for the acquisition construction or production of assets that meet the capitalization
conditions the amount of interest expenses (including amortization of discounts or premiums determined using the
effective interest method) actually incurred in the current period of the special loan shall be recognized as the interest
amount to be capitalized after deduction of the interest income obtained by depositing the unused loan funds in the
bank or the income from temporary investment. If general borrowings are occupied for the purpose of acquisition
construction or production of assets that meet the capitalization conditions the Company shall calculate and
determine the amount of interest of general borrowings to be capitalized based on the weighted average value of
asset expenditures over which the accumulated asset expenditure exceeds the special borrowings multiplied by the
capitalization rate of the occupied general borrowings.
22. Intangible assets
(1) Useful life and the basis for determination estimates amortization method or review process thereof
1. Intangible assets include land ownership land use rights patent rights trademark rights proprietary technologies
Management software and emission rights and are initially measured at cost.
2. Intangible assets with limited useful lives shall be systematically and reasonably amortized during their useful
lives according to the expected realization mode of economic benefits relating to such assets and where the expected
realization mode cannot be reliably determined the assets shall be amortized using the straight-line method. The
details are listed below:
Item Useful life and basis for determination Amortization method
50 or 30 years referring to the years of land available for
Land use rights Straight Line Method
use
10 years referring to the years that it can bring economic
Patent rights Straight Line Method
benefits to the Company
10 years referring to the years that it can bring economic
Trademark rights Straight Line Method
benefits to the Company
5 years referring to the years that it can bring economic
Proprietary technologies Straight Line Method
benefits to the Company
3-10 years referring to the years that it can bring economic
Management software Straight Line Method
benefits to the Company
10 years referring to the years that it can bring economic
Emission rights Straight Line Method
benefits to the Company
The Company does not amortize intangible assets with indefinite useful lives and the Company reviews the United
States lives of these intangible assets in each accounting period. For intangible assets with indefinite useful life the
assessment basis for indefinite useful life is that the period to bring future economic benefits to the Company is
unforeseeable. The Company's intangible assets with indefinite useful life are land ownership.
(2) Adscription ranges of expenditures on research and development and relevant accounting method
(1) Personnel and labor costs
Personnel and labor costs cover the wages and salaries of the Company's R&D personnel basic endowment
insurance premiums basic medical insurance premiums unemployment insurance premiums work-related injury
insurance premiums maternity insurance premiums and housing provident funds as well as labor costs for external
R&D personnel.For R&D personnel serving multiple R&D projects at the same time the labor costs are confirmed based on the
working hours records of the R&D personnel of each R&D project provided by the Management department of the
Company and are distributed among different R&D projects on a proportional basis.
170Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
For personnel directly engaged in R&D activities and external R&D personnel engaged in non-R&D activities at
the same time the Company will distribute the actual personnel and labor costs incurred among R&D expenses and
production and operation expenses based on working hours records of R&D personnel in different positions by
adopting reasonable methods such as the proportion of actual working hours.
(2) Direct investment costs
Direct investment costs refer to the relevant expenses actually incurred by the Company for the implementation of
R&D activities including: 1) the cost of materials fuel and power directly consumed; 2) the development and
manufacturing cost of molds and process equipment for intermediate testing and trial production the purchase cost
of samples prototypes and general testing methods that do not constitute fixed assets and the inspection cost of
trial products; 3) the operation and maintenance adjustment inspection testing and overhaul of instruments and
equipment for R&D activities.
(3) Depreciation expense and long-term deferred expenses
Depreciation expense represents the depreciation expense of instruments equipment and buildings in use used in
R&D activities.For instruments equipment and buildings in use used both in R&D activities and non-R&D activities the necessary
records shall be kept on the United States of such instruments equipment and buildings in use and the actual
depreciation expense incurred is allocated between R&D expenses and production and operating expenses by
reasonable methods with reference to factors such as actual working hours and usable area.Long-term deferred expenses represent the long-term deferred expenses in the process of reconstruction
modification decoration and repair of R&D facilities which are aggregated according to actual expenditures and
amortized in equal instalments over a specified period of time.
(4) Amortization expense of intangible assets
Amortization expense of intangible assets represents the amortization expense of software intellectual property
rights and non-patented technologies (proprietary technology licenses designs computational methods etc.) used
in R&D activities.
(5) Design expense
Design expense refers to expense incurred in the conception development and manufacture of new products and
processes and design of processes technical specifications protocols operational characteristics etc. including
costs related to creative design activities carried out for developing innovative creative and breakthrough products.
(6) Commissioning expense and test expense of equipment
Commissioning expense refers to expense incurred for R&D activities in the preparation of tooling process
including expense incurred for activities such as the development of special and dedicated production machines
changes in production and quality control procedures or the formulation of new methods and standards.Expense incurred for routine preparation for the tooling process and industrial engineering for large-scale batch
production and commercial production are not included in the aggregation scope.Test expense includes clinical trial expense for the development of new drugs field test expense for exploration and
development technologies and field trial expense.
(7) Expense for commissioned external R&D
Expense for commissioned external R&D refers to expenses incurred by the Company for R&D activities entrusted
to other organizations or individuals inside or outside the country (the results of the R&D activities are owned by
the Company and are closely related to the Company's main business).
(8) Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to the R&D activities
including information costs for technical books data translation fees expert consultation fees high-tech research
and development insurance premiums search demonstration review appraisal and acceptance fees of R&D results
171Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
intellectual property rights application fees registration fees agency fees conference fees travel costs
communication fees etc.
4. Expenditures for the research phase of internal R&D projects are recognized in the profit and loss for the current
period when incurred. Expenditures incurred during the development phase of internal research and development
projects shall be recognized as intangible assets if the following conditions are all met simultaneously: (1) It is
technically feasible to complete the intangible asset so that it can be used or sold; (2) There is intention to complete
the intangible asset for use or sales; (3) The methods for intangible assets to generate economic benefits are useful
and there is a potential market for the products manufactured by applying the intangible assets or for the intangible
assets themselves (for intangible assets to be used internally the usefulness can be proved); (4) Adequate technical
financial and other resources are available to finish the development of the intangible assets and use or sell the
intangible assets; (5) The expenditure attributable to the intangible asset during its development phase can be
measured reliably.
23. Long-term assets impairment
For long-term equity investments investment properties measured using the cost model fixed assets construction
in progress right-of-use assets intangible assets with limited useful lives and other long-term assets where there
are indications of impairment at the balance sheet date the recoverable amount shall be estimated. For goodwill
arising from a business combination or intangible assets with indefinite useful lives regardless of whether there are
indications of impairment an impairment test shall be conducted every year. Goodwill shall together with the
related asset group or combination of asset groups be subject to the impairment test.If the recoverable amount of any of the above-mentioned long-term assets is lower than its book value the provision
for assets impairment shall be recognized according to the difference and recorded in profit or loss for the current
period.
24. Long-term deferred expenses
Long-term amortized expenses refer to expenses that have been paid and whose amortization period is more than 1
year (excluding 1 year). Long-term amortized expenses are recorded at the actual amounts incurred and amortized
evenly over the benefit period or specified period. If a long-term amortized expense item does not bring benefits
over the subsequent accounting periods the amortized value of the item that has not been amortized shall be fully
transferred to profit or loss for the current period.
25. Contractual liabilities
The obligation to transfer goods to a client for which consideration has been received or is receivable from the
client is shown as a contractual liability.
26. Employee benefits
(1) Accounting method of short-term employee benefits
In the accounting period in which employees have rendered services the Company recognizes the short-term
employee benefits actually incurred as a liability and charges to profit or loss for the current period or the cost of
related assets.
(2) Accounting method of post-employment benefits
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) During the accounting period in which employees have rendered services the Company recognizes the
contributions to be paid according to the defined contribution plans as a liability and charges to profit or loss for the
current period or the cost of related assets.
(2) The accounting method of defined benefit plans generally covers the following steps:
1) It is necessary to use unbiased and mutually compatible actuarial assumptions based on the projected unit credit
method to estimate related demographic variables and financial variables measure the obligations under the defined
benefit plans and determine the periods to which the obligations are attributable. Furthermore the obligations under
the defined benefit plans shall be discounted to determine the present value of the defined benefit plan obligations
and the current service cost;
172Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2) When a defined benefit plan has assets the deficit or surplus by deducting the present value of the defined benefit
plan obligations from the fair value of the defined benefit plan assets shall be recognized as a net liability or net
asset of the defined benefit plan. The net asset of the defined benefit plan shall be measured at the lower of the
surplus in the defined benefit plan and the asset ceiling.
3) At the end of the period the employee benefit costs arising from defined benefit plans shall be recognized as the
cost of service the net interest on net liabilities or assets of defined benefit plans and the changes resulting from the
remeasurement of net liabilities or assets of defined benefit plans. The cost of service and the net interest on net
liabilities or assets of defined benefit plans are recorded in profit or loss for the current period or the cost of related
assets while the changes resulting from the remeasurement of net liabilities or assets of defined benefit plans are
included in other comprehensive income and shall not be transferred back to profit or loss in subsequent accounting
periods. However the amounts recognized as other comprehensive income may be transferred within the scope of
equity.
(3) Accounting method of termination benefits
Termination benefits provided to employees are recognized as an employee benefit liability and charged to profit
or loss for the current period at the earlier of the following dates: (1) The Company cannot unilaterally withdraw
the offer of termination benefits because of an employment termination plan or a curtailment proposal; (2) The
Company recognizes costs or expenses related to the reconstructing that involves the payment of termination
benefits.
(4) Accounting method of other long-term employee benefits
Other long-term employee benefits provided to employees are accounted for in accordance with the requirements
relating to defined contribution plans if the conditions for classifying as a defined contribution plan are met and
otherwise are accounted for in accordance with the requirements relating to defined benefit plans. To simplify the
relevant accounting method process the employee benefit costs incurred are recognized as the cost of service the
net interest on net liabilities or assets of other long-term employee benefits and the changes resulting from the
remeasurement of net liabilities or assets of other long-term employee benefits. The total net amount is included in
profit or loss for the current period or the cost of related assets.
27. Estimated liabilities
1. The Company recognizes an obligation arising from the provision of external guarantees litigation matters
product quality assurance loss contract and other contingencies as a present obligation of the Company when it is
probable that the performance of the obligation will result in an outflow of economic benefits from the Company
and the amount of the obligation can be measured reliably as a provision for liabilities.
2. The Company initially measures the provision for liabilities based on the best estimate of the expenditures
required to meet the relevant present obligations and reviews the carrying amount of the provision for liabilities at
the balance sheet date.
28. Share-based payment
1. Types of share-based payments
Include equity-settled share-based payments and cash-settled share-based payments.
2. Accounting for the implementation modification and termination of share-based payment plans
(1) Equity-settled share-based payments
Equity-settled share-based payments in exchange for staff services that are immediately available upon grant are
included in the related costs or expenses at the fair value of the equity instruments at the date of grant with a
corresponding adjustment to the capital reserve. Equity-settled share-based payments in exchange for staff services
that are contingent upon completion of services in the waiting period or satisfaction of specified performance
conditions the services received in the present period are included in the related costs or expenses at fair value on
the date of grant of the equity instruments based on the best estimate of the number of contingent equity instruments
at each balance sheet date in the waiting period with a corresponding adjustment to the capital reserve.Equity-settled share-based payments in exchange for services rendered by other parties if the fair value of the
services rendered by the other parties can be measured reliably is measured at the fair value of the services rendered
173Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
by the other party at the acquisition date; If the fair value of the services provided by other parties cannot be reliably
measured but the fair value of the equity instrument can be reliably measured it is measured at the fair value of the
equity instrument at the date when the services are obtained and included in the related cost or expense with a
corresponding increase in owner's equity.
(2) Cash-settled share-based payments
Cash-settled share-based payments in exchange for staff services that are immediately available after the grant are
included in the related costs or expenses at the date of grant at the fair value of the liability assumed by the Company
with a corresponding increase in the liability. Cash-settled share-based payments in exchange for staff services that
are contingent upon the completion of services in the waiting period or satisfaction of specified performance
conditions are included in the related costs or expenses and the corresponding liabilities for services rendered in
the present period at the fair value of the liabilities assumed by the Company on the basis of the best estimate of the
right to perform at each balance sheet date during the waiting period.
(3) Amending or terminating the Share-based Payment Plan
If the modification increases the fair value of the equity instruments granted the Company recognizes an increase
in services received in response to the increase in fair value of the equity instruments; If the modification increases
the number of equity instruments granted the Company recognizes the fair value of the increased equity instruments
as an increase in access to services accordingly; If the Company modifies the vesting conditions in a manner
beneficial to the employees the Company considers the modified vesting conditions when dealing with the vesting
conditions.If the modification reduces the fair value of the equity instruments granted the Company continues to recognize the
amount of services received based on the fair value of the equity instruments at the date of grant irrespective of the
decrease in fair value of the equity instruments; If the modification reduces the number of equity instruments granted
the Company treats the reduction as a cancellation of the equity instruments granted; If the vesting condition is
modified in a manner detrimental to the employees the modified vesting condition is not considered when dealing
with the vesting condition.If the Company cancels an equity instrument granted or settles an equity instrument granted within the waiting
period (unless canceled because the vesting condition is not met) the cancellation or settlement is treated as an
accelerated vesting immediately recognizing the amount that would have been recognized within the remaining
waiting period.
29. Revenue
Disclosure of accounting policies used in revenue recognition and measurement by business type
1. Revenue recognition principle
At the commencement date of a contract the Company performs an assessment of the contract identifies the
individual performance obligation contained in the contract and determines whether the individual performance
obligation is performed within a certain period of time or at a certain point in time.A performance obligation is satisfied within a certain period of time when one of the following conditions is met;
otherwise the performance obligation is satisfied at a certain point in time: (1) the client obtains and consumes the
economic benefits brought by the performance of the Company while the Company performs; (2) the client is able
to control the goods under construction during the performance of the Company; (3) Commodities produced in the
course of the Company's performance have an irreplaceable use and the Company is entitled to collect payments
for the part of performance that has been completed so far during the entire contract period.For performance obligations performed over a period of time the Company recognizes revenue based on the
progress of the performance over that period of time. When the performance progress cannot be reasonably
determined if the costs incurred are expected to be compensated revenue is recognized based on the amount of
costs incurred until the performance progress can be reasonably determined. For performance obligations performed
at a certain point in time revenue is recognized at the point in time when the client obtains control of the related
goods or services. In determining whether the client has obtained control of the commodity the Company considers
the following indicators: (1) the Company has a present collection right in respect of the commodity i.e. the client
has a present payment obligation in respect of the commodity; (2) the Company has transferred the legal ownership
of the commodity to the client i.e. the client has owned the legal ownership of the commodity; (3) The Company
174Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
has physically transferred the commodity to the client i.e. the client has physically occupied the commodity; (4)
the Company has transferred the principal risks and rewards of ownership of the commodity to the client i.e. the
client has obtained the principal risks and rewards of ownership of the commodity; (5) the client has accepted the
commodity; (6) Other indicators that the client has obtained control of the commodity.
2. Revenue measurement principles
(1) The Company measures revenue at the transaction price allocated to the individual performance obligation. The
transaction price is the amount of consideration to which the Company is expected to be entitled to collect for the
transfer of goods or services to the client excluding amounts received on behalf of third parties and amounts
expected to be returned to the client.
(2) Where there is a variable consideration in the contract the Company determines the best estimate of the variable
consideration based on the expected value or the amount that is most likely to occur but the transaction price that
contains the variable consideration does not exceed the amount by which it is highly probable that a significant
reversal of the cumulative revenue recognized will not occur when the relevant uncertainty is eliminated.
(3) Where there is a significant financing component in the contract the Company determines the transaction price
based on the amount payable that is assumed to be paid in cash when the client obtains control of the goods or
services. The difference between the transaction price and the contract consideration is amortized using the effective
interest method over the contract period. At the commencement date of the contract if the Company expects the
client to obtain control of the goods or services within one year of the customer paying the price it does not consider
the significant financing component in the contract.
(4) If the contract contains two or more performance obligations the Company shall on the commencement date
of the contract allocate the transaction price to the individual performance obligation based on the relative
proportion of the individual selling prices of the commodities promised by the individual performance obligation.
3. Specific methods of revenue recognition
Sales of products such as the Company's Hand Tools Power Tools Laser Measurement and Storage are
performance obligations performed at a certain point in time and revenue from domestic sales is recognized when
the Company delivers the product to the contractually agreed place of delivery and the client confirms acceptance
has received the price or has the right to receive the payment and the related economic benefits are likely to flow in.Export revenue is recognized when the Company has declared the product in accordance with the contract obtained
a bill of lading or arrived at the destination specified by the client and the client confirms the acceptance has
received the payment for goods or has obtained the right to receive payment and the related economic benefits are
likely to flow in.Similar businesses adopt different business models and involve different revenue recognition and measurement
methods
30. Contract cost
Incremental costs of the Company to acquire a contract that are expected to be recovered are recognized as an asset
as contract acquisition cost. If contract acquisition cost is amortized over a period not exceeding one year such
costs are recognized directly in current gains/losses when incurred.Costs of the Company for the performance of a contract which fall out of the scope of regulation on standards about
inventories fixed assets or intangible assets and fall in the following conditions are recognized as an asset as
contract performance cost:
1. Such cost is directly related to a current contract or a contract expected to be awarded including the cost on direct
labor direct materials manufacturing expense (or similar cost) cost explicitly attributable to a client and any other
cost incurred solely as a result of contract;
2. Such cost increases the resources available to the Company to fulfil its performance obligations in the future; and
3. Such cost is expected to be recovered.
175Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
The Company amortizes assets related to contract costs on the same basis as income recognition for the commodities
or services to which the asset connects through current gains/losses.If the book value of an asset related to contract costs is greater than the remaining consideration expected to be
received for the transfer of commodities or services related to the asset less estimated costs estimated to be incurred
the Company withdraws a provision for impairment and recognizes an asset impairment loss for the excess. If as a
result of subsequent changes to the factors to impair the asset in a previous period the residual consideration
expected to be received for the transfer of the commodities or services on the asset less estimated costs to be
incurred is greater than the book value of the asset the original provision for impairment of the asset is reversed
and stated as current gains/losses provided that the book value of the asset after the reversal is no greater than what
the asset would have been had no provision for impairment been withdrawn by the date of the reversal.
31. Government grants
1. A government grant is recognized when both of the following conditions are met: (1) the Company is able to
meet the conditions attached to the government grant; (2) The Company is able to receive government grants. Where
government grants are monetary funds they are measured at the amount received or receivable. Government grants
that are non-Monetary funds are measured at fair value; Where the fair value cannot be reliably obtained it is
measured at the nominal amount.
2. Basis for judging government grants related to assets and accounting methods
Government documents provide that government grants used to purchase build or otherwise forming long-term
assets are classified as government grants related to the assets. If the government documents are not clear the
judgment shall be based on the basic conditions necessary to obtain the grant and the government grant whose basic
conditions are to purchase build or otherwise form long-term assets shall be deemed as the government grant related
to the asset. Government grants relating to assets offset against the carrying amount of the related assets or are
recognized as deferred income. Where government grants relating to assets are recognized as deferred income they
are credited to profit or loss over the United States life of the relevant assets in a reasonable and systematic manner.Government grants measured at nominal amounts are credited directly to profit or loss for the current period. Where
the relevant asset is sold transferred scrapped or damaged before the end of its useful life the undistributed balance
of the relevant deferred income is transferred to the profit or loss of the current period in which the asset is disposed
of.
3. Basis for judging government grants related to income and accounting method
Government grants other than those relating to assets are classified as income-related government grants. For
government grants that contain both asset-related and revenue-related components those that are difficult to
distinguish between asset-related and income-related are classified as income-related government grants in their
entirety. Government grants relating to income that compensate for related costs expenses or losses in subsequent
periods are recognized as deferred income and are credited to profit or loss or reduced to related costs in the current
period in which the related costs expenses or losses are recognized; Those used to compensate the related costs or
losses incurred are directly included in the current profit or loss or offset against the related costs.
4. Government grants relating to the Company's daily operating activities are included in other revenue or offset
against related costs and expenses in accordance with the substance of the economic business. Government grants
that are not related to the Company's daily activities are included in the non-operating revenue and expenses.
32. Deferred tax assets/deferred tax liabilities
1. A deferred income tax asset or a deferred income tax liability is recognized based on the difference between the
carrying amount of an asset or liability and its tax basis (or the difference between the carrying amount of an item
that is not recognized as an asset or liability and the tax basis if its tax basis can be determined in accordance with
the provisions of the tax law) at the tax rates applicable in the period in which the asset is expected to be recovered
or the liability is settled.
2. Deferred income tax assets are recognized to the extent of the amount of the taxable income that is likely to be
obtained and deducted from deductible temporary difference. On the balance sheet date deferred income tax assets
that have not been recognized in previous accounting periods shall be recognized if there is conclusive evidence
that sufficient taxable income is likely to be obtained in the future period to offset deductible temporary differences.
176Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
3. On the balance sheet date the carrying value of deferred income tax assets is reviewed and if it is probable that
sufficient taxable income will not be available in future periods to offset the benefits of the deferred income tax
assets the carrying value of the deferred income tax assets is written down. The amount written down is reversed
when it is probable that sufficient taxable income will be available.
4. The current corporate income tax and deferred income tax are included in the current profit or loss as income tax
expense or earnings but do not include income tax arising from (1) business combination; (2) Transactions or events
recognized directly in owner's equity.
5. The Company will list the deferred tax assets and deferred tax liabilities as the net amounts upon offsetting where
all the following conditions are met: (1) It has the statutory right to offset current tax assets against current tax
liabilities; (2) The deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax
administration department on the same taxpayer or related to different taxpayers but during any future period in
which important deferred tax assets or liabilities are reversed the taxpayers involved have the intention to offset the
current tax assets against the current tax liabilities or acquire assets and settle liabilities concurrently.
33. Lease
(1) Accounting method for lease as lessee
At the commencement date of the lease term the Company considers a lease that has a lease term of not more than
12 months and does not contain a purchase option as a short-term lease; Leases that have a lower value when the
individual leased asset is an entirely new asset are considered to be leases of low-value assets. Where the Company
subleases or expects to sublease the leased asset the original lease is not deemed as a lease of low-value assets.For all short-term leases and leases of low-value assets the Company includes the amount of lease payments into
the relevant asset cost or current profit and loss according to the straight-line method during each period of the lease
term.In addition to the short-term leases and leases of low-value assets with simplified treatment described above the
Company recognizes right-of-use assets and lease liabilities for leases at the commencement date of the lease term.
(1) Right-of-use assets
Right-of-use assets are initially measured at cost which includes: 1) the amount initially measured for the lease
liability; 2) the amount of lease payments paid on or before the commencement date of the lease term if there is a
lease incentive less the amount of the lease incentive already enjoyed; 3) initial direct costs incurred by the lessee;
4) the costs that the lessee expects to incur to dismantle and remove the leased asset restore the site on which the
leased asset is located or restore the leased asset to the condition agreed upon in the lease terms.The Company depreciates the right-of-use assets on a straight-line basis. If it is reasonably certain that the ownership
of assets leased will be obtained at the end of the lease term the Company conducts depreciation during the
remaining useful life of the leased assets. Otherwise depreciation is conducted during the lease term or the
remaining useful life of the leased assets whichever is shorter.
(2) Lease liabilities
At the commencement date of the lease term the Company recognizes the present value of the unpaid lease
payments as the lease liabilities. The present value of lease payments is calculated using the interest rate implicit in
the lease as the discount rate. If the interest rate implicit in the lease cannot be determined the corporate incremental
borrowing rate is used as the discount rate. The difference between the lease payments and their present value is
treated as an unrecognized finance charge. Interest expense is recognized in profit or loss for each lease term period
at the discount rate used to recognize the present value of the lease payments. Variable lease payments that are not
included in the measurement of lease liabilities are included in current profit or loss when they actually occur.After the commencement date of the lease term when there is a change in the amount of substantially fixed
payments a change in the amount expected to be payable for the remaining value of the guarantee a change in the
index or rate used to determine the amount of the lease payments a change in the outcome of an assessment of a
purchase option a renewal option or a termination option or a change in the actual exercise the Company
remeasures the lease liability based on the present value of the changed lease payments and adjusts the carrying
value of the right-of-use asset accordingly. If the carrying value of the right-of-use asset has been reduced to zero
but the lease liability still needs to be further reduced the remaining amount is included in the current profit or loss.
177Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2. The Company as lessor
At the commencement date of a lease the Company classifies a lease as a finance lease in which substantially all
the risks and rewards associated with ownership of the leased asset are transferred with the exception of an operating
lease.
(1) Operating leases
The Company recognizes lease receipts as rental income on a straight-line basis over each period of the lease term
capitalizes the initial direct costs incurred and allocates them on the same basis as rental income recognition and is
credited to profit or loss in installments. Variable lease payments relating to operating leases obtained by the
Company that are not included in the lease receipts are included in profit or loss as they actually occur.
(2) Finance lease
At the commencement date of the lease term the Company recognizes the finance lease payments receivable based
on the net investment in the lease (the sum of the unguaranteed residual value and the present value of the lease
receipts outstanding at the commencement date discounted at the interest rate implicit in the lease) and derecognizes
the finance lease asset. The Company calculates and recognizes interest income at the interest rate implicit in the
lease for each period of the lease term.Variable lease payments received by the Company that are not included in the measurement of net lease investment
are included in profit or loss as they actually occur.
3. Sale and leaseback
(1) The Company operates as a lessee
The Company assesses whether the transfer of assets in a sale-and-leaseback transaction is a sale in accordance with
the provisions of Accounting Standards for Business Enterprises No. 14 - Revenues.If the transfer of an asset in a sale-and-leaseback transaction is a sale the Company measures the right-of-use asset
resulting from the sale-and-leaseback at the portion of the original asset's carrying value that relates to the right-of-
use acquired through the leaseback and recognizes a gain or loss related to the right transferred to the lessor only.If the transfer of an asset in a sale-and-leaseback transaction is not a sale the Company continues to recognize the
transferred asset and at the same time recognizes a financial liability equal to the transfer proceeds and accounts
for the financial liability in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments.
(2) Accounting method for lease as lessor
The Company assesses whether the transfer of assets in a sale-and-leaseback transaction is a sale in accordance with
the provisions of Accounting Standards for Business Enterprises No. 14 - Revenues.If the transfer of an asset in a sale-and-leaseback transaction is a sale the Company accounts for the purchase of
assets in accordance with other applicable Accounting Standards for Business Enterprises and accounts for the lease
of assets in accordance with Accounting Standards for Business Enterprises No. 21 - Leases.If the transfer of an asset in a sale-and-leaseback transaction is not a sale the Company does not recognize the
transferred asset but recognizes a financial asset equal to the transfer proceeds and accounts for the financial asset
in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
Financial Instruments.
34. Other significant accounting policies and accounting estimates
1. Segment report
The Company determines its operating segment based on its internal organizational structure Management
requirements and internal reporting system. An operating segment is a component of the Company that satisfies all
the following conditions:
(1) The component is able to generate revenues and incur expenses in daily operations;
178Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(2) The operating results of the component are able to be regularly reviewed by the Management to determine
resources to be allocated to the segment and to assess its performance; and
(3) The information on financial position operating results and cash flows of the segment is available to the
Company via analysis.
35. Changes in significant accounting policies and accounting estimates
Since January 1 2023 the Company has implemented the provision of "Accounting Treatment of No Application
of Initial Recognition Exemption to Deferred Income Tax Related to Assets and Liabilities from Individual
Transactions" in the Accounting Standards for Business Enterprises Interpretation No. 16 issued by the Ministry of
Finance and made adjustments to individual transactions to which the provision applies from the beginning of the
earliest reporting period appearing on the financial statements to which the provision applies to the first date on
which the provision was applied. For lease liabilities and right-of-use assets recognized from individual transactions
to which the provision applies to at the beginning of the earliest reporting period appearing on the financial
statements to which the provision applies and the estimated liabilities related to asset retirement obligations and
corresponding related assets the Company has made adjustment to the opening retained earnings and other relevant
financial statement items of the earliest reporting period appearing on the financial statements to which the provision
applies with the cumulative effects in the case of occurrence of taxable and deductible temporary differences in
accordance with the provision and the Accounting Standards for Business Enterprises No. 18 - Income Taxes. The
major changes are as follows:
Report items significantly affected Amount affected Remarks
Items of the balance sheet for December 31 2022
Deferred tax assets 16750995.34
Deferred tax liabilities 16329987.59
Other comprehensive income -1640.73
Undistributed profit 186853.02
Non-controlling interest 235795.46
Items of the 2022 Income Statement
Income tax expenses -530186.38
VI. Taxes
1. Major taxes and tax rates
Taxes Tax basis Tax rate
The output tax is calculated based on the income
from sales of goods and taxable services calculated
in accordance with the provisions of the tax law.Value-added tax 13% 6%
After deducting the deductible input tax for the
current period the difference is the value-added
tax payable.If levied on an ad valorem basis calculated and
paid at 1.2% of the residual value after deducting
Property tax 30% from the original value of the property; If 1.2% 12%
levied on the rental calculated and paid at 12% of
the rental income
179Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Urban maintenance
Actual turnover tax paid 7% 5% 1%
and construction tax
Education surcharge Actual turnover tax paid 3%
Local education
Actual turnover tax paid 2%
surcharge
For details please refer to the
description of the business
Business income tax Taxable amount of income
income tax rates of the taxpayers
with different tax rates.Description of the business income tax rates of the taxpayers with different tax rates
Name of tax payer Income tax rate
The company
15%
Hong Kong GreatStar International Co. Ltd.
16.50%
Prim' Tools Limited
16.50%
Hong Kong Goldblatt Industrial Co. Ltd
16.50%
Hong Kong International Huada Kejie Opto-Electro Instruments Co.
16.50%
Ltd.Hongkong Shop-Vac International Co. Limited 16.50%
Geelong Sales Company International (HK) Limited 16.50%
Changzhou Huada Kejie Opto-Electro Instrument Co. Ltd.
15%
Hangzhou Lianhe Electric Manufacturing Co. Ltd.
15%
Dongguan Ouda Electronics Co. Ltd.
15%
Hangzhou Lianhe Tools Manufacturing Co. Ltd.
15%
Hangzhou Liansheng Tools Manufacturing Co. Ltd.
20%
Zhejiang Yiyang Tool Manufacturing Co. Ltd.
15%
Suzhou Xindadi Hardware Product Co. Ltd 15%
Zhongshan Geelong Industry Co. Ltd. 15%
Ningbo Fenghua GreatStar Tools Co. Ltd. 15%
Geelong Investment Holding Limited 15%
13.42%19%19.41%20.60%21%
GreatStar Europe AG and its subsidiaries 22% 23.50% 24% 25% 27.90%
29.13%30%
23.50%
GreatStar United Kingdom Ltd and its subsidiaries
20%
Zhejiang Guoxin Tools Co. Ltd.
20%
Haining GreatStar Hardware Tools Co. Ltd.
180Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
20%
Hangzhou GreatStar Craftsman Tools Co. Ltd.
20%
Hangzhou GreatStar Sheffield Trading Co. Ltd.
20%
Ningbo Fenghua GreatStar Tools Co. Ltd.
20%
Yiyang Tools Manufacturing Co. Ltd
20%
PREXISO Laser Measurement Tool (Hangzhou) Co. Ltd
20%
Shanghai Endura Tools Co. Ltd.
20%
Changzhou Huada Kejie Construction Machinery Co. Ltd.
20%
GreatStar Vietnam Co. Ltd
20%
Vietnam United Co. Ltd
20%
TGH (Cambodia) Industrial Co. LTD
20%
Geelong (Thailand) Co. Ltd
20%
GreatStar Industrial Vietnam Co. Ltd
21%
XDD Products (USA) LLC
GreatStar Tools USA Inc and its subsidiaries 25.1745% according to the regulations
of Internal Revenue Code of the United
States GreatStar Industrial USA LLC
Arrow Fastener Co. LLC Prime-Line
Products LLC 4900 Highlands
Parkway LLC Shop-Vac USA LLC
and SK Hand Tool LLC as LLC are not
required to report and pay business
income tax and the taxpayer is GreatStar
Tools USA Inc
GreatStar Japan Co. Ltd Corporate tax is payable at progressive
rates
GreatStar International Holdings Limited Is a company incorporated in the British
Virgin Islands. There is no need to pay
business income tax under the British
Virgin Islands tax regime .Is a company incorporated in the British
Cayman Islands. There is no need to pay
Geelong Orchid Holding Limited
business income tax under the British
Cayman Islands tax regime.Is a company incorporated in the British
Cayman Islands. There is no need to pay
Geelong Holdings Limited
business income tax under the British
Cayman Islands tax regime.Other taxpayers other than those mentioned above
25%
181Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2. Tax incentives
1. In accordance with the relevant provisions of the Administrative Measures for the Identification of High-tech
Enterprises (Guo Ke Fa Huo [2016] No.32) and the Administrative Work Guide for the Identification of High-tech
Enterprises (Guo Ke Fa Huo [2016] No.195) the Company was identified as a high-tech enterprise and obtained
the High-tech Enterprise Certificate numbered GR202233005456 which was valid for 3 years (2022 to 2024) and
was subject to business income tax at the rate of 15% in the year of 2023.
2. In accordance with the relevant provisions of the Administrative Measures for the Identification of High-tech
Enterprises (Guo Ke Fa Huo [2016] No.32) and the Administrative Work Guide for the Identification of High-tech
Enterprises (Guo Ke Fa Huo [2016] No.195) the subsidiary Changzhou Huada Kejie Opto-Electronic Instruments
Co. Ltd. was identified as a high-tech enterprise and obtained the High-tech Enterprise Certificate numbered
GR202332000640 which was valid for 3 years (2023 to 2025) and was subject to business income tax at a rate of
15% in the of 2023.
3. In accordance with the relevant provisions of the Administrative Measures for the Identification of High-tech
Enterprises (Guo Ke Fa Huo [2016] No.32) and the Administrative Work Guide for the Identification of High-tech
Enterprises (Guo Ke Fa Huo [2016] No.195) the subsidiary Hangzhou Lianhe Electric Manufacturing Co. Ltd.was identified as a high-tech enterprise and obtained the High-tech Enterprise Certificate numbered
GR202233010022 which was valid for 3 years (2022 to 2024) and was subject to business income tax at a rate of
15% in the of 2023.
4. According to the relevant provisions of the Administrative Measures for the Identification of High-tech
Enterprises (Guo Ke Fa Huo [2016] No.32) and the Administrative Work Guide for the Identification of High-tech
Enterprises (Guo Ke Fa Huo [2016] No.195) the subsidiary Dongguan Ouda Electronics Co. Ltd. was identified
as a high-tech enterprise and obtained the High-tech Enterprise Certificate numbered GR202144002851 which was
valid for 3 years (2021-2023) and was subject to business income tax at the rate of 15% for the year of 2023.
5. According to the "Reply on the Record of High-tech Enterprises in Zhejiang Province in 2020" (Guo Ke Huo Zi
[2020] No. 251) issued by the Leading Group of National New High-tech Enterprise Certification & Management
the subsidiary Hangzhou Lianhe Tool Manufacturing Co. Ltd has been accredited as a high-tech enterprise and
obtained the "High-tech Enterprise Certificate" with the number of GR202133002795 which is valid for 3 years
(2021-2023) and was subject to business income tax at a rate of 15% in the of 2023.
6. In accordance with the relevant provisions of the Administrative Measures for the Accreditation of High and New
Technology (Guo Ke Fa Huo [2016] No. 32) and the Guidelines for Administrative Measures for the Accreditation
of High and New Technology (Guo Ke Fa Huo [2016] No. 195) the sub-subsidiary Zhejiang Yiyang Tools
Manufacturing Co. Ltd. has been accredited as a high-tech enterprise and has obtained High-tech Enterprise
Certificate with the number of GR202233007785 which is valid for 3 years (from 2022 to 2024) and was subject
to business income tax at the rate of 15% for the year of 2023.
7. In accordance with the relevant provisions of the Administrative Measures for the Accreditation of High and New
Technology (Guo Ke Fa Huo [2016] No. 32) and the Guidelines for Administrative Measures for the Accreditation
of High and New Technology (Guo Ke Fa Huo [2016] No. 195) the subsidiary Suzhou Xindadi Hardware Product
Co. Ltd has been accredited as a high-tech enterprise and has obtained the High-tech Enterprise Certificate with
the number of GR202132006099 which is valid for 3 years (from 2021 to 2023) and was subject to business income
tax at a rate of 15% in the of 2023.
8. In accordance with the relevant provisions of the Administrative Measures for the Accreditation of High and New
Technology (Guo Ke Fa Huo [2016] No. 32) and the Guidelines for Administrative Measures for the Accreditation
of High and New Technology (Guo Ke Fa Huo [2016] No. 195) the sub-subsidiary Zhongshan Geelong Industry
Co. Ltd has been accredited as a high-tech enterprise and has obtained the High-tech Enterprise Certificate with the
number ofGR202244011605 which is valid for 3 years (from 2022 to 2024) and was subject to business income
tax at the rate of 15% for the year of 2023.
9. In accordance with the relevant provisions of the Administrative Measures for the Accreditation of High and New
Technology (Guo Ke Fa Huo [2016] No. 32) and the Guidelines for Administrative Measures for the Accreditation
of High and New Technology (Guo Ke Fa Huo [2016] No. 195) the subsidiary Ningbo Fenghua Juxing Tools Co.Ltd has been accredited as a high-tech enterprise and has obtained the High-tech Enterprise Certificate with the
182Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
number of GR202233100274 which is valid for 3 years (from 2022 to 2024) and was subject to business income
tax at the rate of 15% for the year of 2023.
10. In accordance with the Notice on Issuing Administrative Measures on Preferential Policies on Value-added Tax
for Promoting the Employment of Persons with Disabilities (Cai Shui [2016] No. 52) issued by the Ministry of
Finance and State Taxation Administration the subsidiary Company Longyou Hugong Forging Three Tools Co.Ltd which accommodated persons with disabilities for employment is entitled to enjoy preferential policies on
immediate withdrawal of value-added tax (VAT) quota in the current period after the filing for the competent tax
authorities.
11. According to the document "Announcement on Preferential Policies on Income Tax for Small and Micro-
Enterprises" (Announcement No. 6 of the Ministry of Finance and the Taxation Administration 2022) of the
Ministry of Finance and the Taxation Administration during the period from January 1 2023 to December 31 2024
the portion of the annual taxable income of small and micro-enterprises that does not exceed 1 million is to be
included in the taxable income at a reduced rate of 25.00% and the enterprise income tax shall be paid at a rate of
20%. From January 1 2023 to December 31 2023 Hangzhou Liansheng Tool Manufacturing Co. Ltd. Zhejiang
Guoxin Tools Co. Ltd. Haining GreatStar Hardware Tools Co. Ltd. Hangzhou GreatStar Craftsman Tools Co.Ltd. Hangzhou Juxing Sheffield Trading Co. Ltd. Longyou Yiyang Forging Co. Ltd. PREXISO Laser
Measurement Tool (Hangzhou) Co. Ltd. Shanghai Endura Tools Co. Ltd. and Changzhou Huada Kejie
Engineering Machinery Co. Ltd. are eligible for this income tax preferential policy and are subject to a corporate
income tax rate of 20%.
(1) Other debt investments due within one year
3. Right-of-use assets
VII. Notes to the Consolidated Financial Statements Items
(I) Notes to the consolidated balance sheet items
1. Monetary capital
(1) Detailed information
Item Closing balance Opening balance
Cash on hand 700564.56 4328053.84
Bank deposits 4982842025.49 4788725570.94
Other monetary capital 195185221.71 70152557.62
Total 5178727811.76 4863206182.40
Of which: Total amount of funds deposited beyond China 1695139084.93 1073586253.48
(2) Other notes
Other monetary capital at the end of the period included short-term loan deposits of RMB 144071225.10 forward
exchange settlement deposits of RMB 21496066.60 letter of credit deposits of RMB 16290210.00 bank
acceptance deposits of RMB 6388901.19 credit card deposits of RMB 3541350.00 customs duty bond deposits
of RMB 1416859.57 rent deposits of RMB 1494449.70 deposits held in Alipay of RMB 437159.55 and ETC
deposit of RMB 49000.00. Other monetary capital at the beginning of the period included forward exchange
settlement deposits of RMB 33448671.74 short-term loan deposits of RMB 20893800.00 letter of credit deposits
of RMB 6616370.00 bank acceptance deposits of RMB 7384067.19 customs duty bond deposits of RMB
1393093.00 deposits held in Alipay of RMB 373555.69 and ETC deposit of RMB 43000.00.
2. Financial assets for trading
183Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Item Closing balance Opening balance
Financial assets measured at fair value and the changes
122650783.0170230104.24
thereof are included in current profits and losses
including: derivative financial assets 14406531.52 10230104.24
Bank financial products 108244251.49 60000000.00
Total 122650783.01 70230104.24
3. Notes receivable
(1) Detailed information
Item Closing balance Opening balance
Bankers' acceptance bill 18203655.36 18765981.83
Commercial acceptance bill 500000.00
Total 18703655.36 18765981.83
(2) Provision for bad debts
1) Detailed information in category
Closing balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision made on a portfolio
18703655.36100.0018703655.36
basis
including: Bankers' acceptance
18203655.3697.3318203655.36
bill
Commercial acceptance bill 500000.00 2.67 500000.00
Total 18703655.36 100.00 18703655.36
(Continued)
Opening balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision made on a portfolio
18765981.83100.0018765981.83
basis
184Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Opening balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
including: Bankers' acceptance
18765981.83100.0018765981.83
bill
Commercial acceptance bill
Total 18765981.83 100.00 18765981.83
2) Notes receivable with bad debt provision by combination
Closing balance
Item
Book balance Provision for bad debts Percentage of Provision (%)
Bankers' acceptance
18203655.36
bill as a combination
Commercial
acceptance bill as a 500000.00
combination
Subtotal 18703655.36
4. Accounts receivables
(1) Information on ageing
Ageing Closing book balance Opening book balance
Within 1 year 2176117907.81 1970425386.97
1-2 years 23191769.49 25344201.58
2-3 years 13428736.08 5830575.46
3-4 years 3543090.14 696290.54
4-5 years 470644.20 454657.11
More than 5 years 1070863.59 972453.32
Total 2217823011.31 2003723564.98
(2) Provision for bad debts
1) Detailed information in category
185Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Closing balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision for
Individual bad debt
Provision made on a
2217823011.31100.00116179932.125.242101643079.19
portfolio basis
Total 2217823011.31 100.00 116179932.12 5.24 2101643079.19
(Continued)
Opening balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision for
3780753.570.193780753.57100.00
Individual bad debt
Provision made on a
1999942811.4199.81103257221.305.161896685590.11
portfolio basis
Total 2003723564.98 100.00 107037974.87 5.34 1896685590.11
2) Accounts receivable with bad debt provision by ageing combination
Closing balance
Ageing
Book balance Provision for bad debts Percentage of Provision (%)
Within 1 year 2176117907.81 108805895.17 5.00
1-2 years 23191769.49 2319176.96 10.00
2-3 years 13428736.08 2685747.22 20.00
3-4 years 3543090.14 1062927.05 30.00
4-5 years 470644.20 235322.13 50.00
More than 5 years 1070863.59 1070863.59 100.00
Subtotal 2217823011.31 116179932.12 5.24
(3) Change of provision for bad debts
186Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Amount of change during the period
Opening Closing
Item Recovery
balance Make balance
or Write-offs Other
provision
reversal
Provision
for
3780753.5796458.503684295.07
Individual
bad debt
Provision
made on a
103257221.3011105061.48394047.932211697.27116179932.12
portfolio
basis
Total 107037974.87 11105061.48 96458.50 4078343.00 2211697.27 116179932.12
4. The accounts receivable actually written off during the period was RMB 4078343.00.
5. Top five accounts receivable
The aggregate amount of top five accounts receivable and contractual assets at the end of the period was RMB
168601296.68 accounting for 52.69% of the aggregate amount of accounts receivable and contractual assets at
the end of the period and the aggregate amount of corresponding provision for bad debts and that for contractual
assets was RMB 58430541.96.
5. Receivables financing
(1) Detailed information
Item Closing balance Opening balance
Bankers' acceptance bill 4661476.96 3310508.35
Accounts receivable 262013539.68 321247171.36
Total 266675016.64 324557679.71
(2) Provision for impairment
1) Detailed information in category
Closing balance
Cumulative confirmed
Cost provision for credit
Type impairment
Percentage Book value
Percentage of
Amount Amount
(%) Provision
(%)
Provision for impairment
280465202.94100.0013790186.304.92266675016.64
by combination
including: Bankers'
4661476.961.664661476.96
acceptance bill
Accounts receivable 275803725.98 98.34 13790186.30 5.00 262013539.68
187Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Closing balance
Cumulative confirmed
Cost provision for credit
Type impairment
Percentage Book value
Percentage of
Amount Amount
(%) Provision
(%)
Total 280465202.94 100.00 13790186.30 4.92 266675016.64
(Continued)
Opening balance
Cumulative confirmed
Cost provision for credit
Type impairment
Make Book value
Proportion provision
Amount Amount
(%) Percentage
(%)
Provision for impairment
341465425.57100.0016907745.864.95324557679.71
by combination
including: Bankers'
3310508.350.973310508.35
acceptance bill
Accounts receivable 338154917.22 99.03 16907745.86 5.00 321247171.36
Total 341465425.57 100.00 16907745.86 4.95 324557679.71
2) Receivables financing with provision for impairment by combination
Closing balance
Item Cumulative confirmed
Percentage of
Cost provision for credit
Provision (%)
impairment
Bankers' acceptance bill as
4661476.96
a combination
Receivables - Ageing
275803725.9813790186.305.00
combination
Subtotal 280465202.94 13790186.30 4.92
(3) Change of provision for credit impairment
Amount of change during the period
Opening
Item Closing balance
balance Make Recovery or Write-
Other
provision reversal offs
Provision for
-
impairment by 16907745.86 13790186.30
3117559.56
combination
-
Total 16907745.86 13790186.30
3117559.56
188Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(4) Receivables financing endorsed or discounted by the Company at the end of the period and not yet due at the
balance sheet date
Item Amounts derecognized at the end of the period
Bankers' acceptance bill 13808004.57
Subtotal 13808004.57
The acceptors of bankers' acceptance bills are commercial banks with a high credit standing. The Company
derecognizes such bankers' acceptance bills that have been endorsed or discounted as the commercial banks have
a high level of creditworthiness and the likelihood of non-payment of bankers' acceptance bill at maturity is low.However if such bills are not paid at maturity the Company will still be jointly and severally liable to the bearer in
accordance with the provisions of the Bills of Exchange Act.
(5) Accounts receivable of which recognition is terminated due to transfer of financial assets
Gain or loss related Method of transferring
Item Amounts derecognized
to derecognition financial assets
1913440543.28 Assignment in receivables
Loans -17897921.26
[Note] financing without recourse
Subtotal 1913440543.28 -17897921.26
[Note]: Of which the US dollar amount of assignment in receivables financing without recourse were
USD264804135.43. The US dollar amount of assignment in receivables financing without recourse translated into
RMB at the closing exchange rate was RMB1875528250.01.
6. Prepayments
(1) Ageing analysis
Closing balance Opening balance
Agei Provision Provision
ng Book Percent for Book Percent for
Book value Book value
balance age (%) impairme balance age (%) impairme
nt nt
Withi
1066112253305611012806612963479648173912315305
n 1 97.48 95.02
5.38.493.897.70.867.84
year
1816906.81.66181690.61635216.24204728.63.08420472.83784255.8
years
880972
617246.800.56123449.3493797.441011134.90.74202226.9808907.98
years
679
78182.890.0754728.03608856.380.45182656.9426199.47
years 23454.86
1
116319.010.1158159.50163345.530.1281672.76
years 58159.51 81672.77
More
than
126013.320.12126013.3811464.850.59811464.8
5
25
years
1093658958433291035225613643432818023412825409
Total 100.00 100.00
4.28.225.068.12.253.87
189Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(2) The provision for bad debts in the period was RMB -1814906.71 with an increase of RMB 163409.68 to the
provision for bad debts due to exchange rate fluctuations.
(3) The actual prepaid amount written off in the period was RMB 685408.00.
(4) Top five prepayments
The aggregate amount of prepayments in the top 5 at the end of the period was RMB36117972.97 accounting for
33.02% of the aggregate amount of prepayments at the end of the period.
7. Other receivables
(1) Classification by nature
Nature of payment Closing book balance Opening book balance
Deposit Guarantee 25769009.71 30880521.21
Export tax refund receivable 36262490.59 24697312.44
Temporary payments receivable 9062266.44 5617725.38
Other 2406414.47 2327676.34
Employee reserves 516688.29 1529914.18
Total 74016869.50 65053149.55
(2) Information on ageing
Ageing Closing book balance Opening book balance
Within 1 year 60333551.96 52430223.89
1-2 years 4497031.02 1990783.43
2-3 years 1406745.06 7755521.23
3-4 years 5173757.51 588931.41
4-5 years 364280.00 215910.64
More than 5 years 2241503.95 2071778.95
Total 74016869.50 65053149.55
(3) Provision for bad debts
1) Detailed information in category
190Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Closing balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision for Individual
bad debt
Provision made on a
74016869.50100.007723500.8910.4366293368.61
portfolio basis
Total 74016869.50 100.00 7723500.89 10.43 66293368.61
(Continued)
Opening balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision for Individual
bad debt
Provision made on a
65053149.55100.006728107.4510.3458325042.10
portfolio basis
Total 65053149.55 100.00 6728107.45 10.34 58325042.10
2) Other receivables with bad debt provision by combination
Closing balance
Name of combination
Provision for bad Percentage of
Book balance
debts Provision (%)
Ageing combination 74016869.50 7723500.89 10.43
Including: within 1 year 60333551.96 3016677.58 5.00
1-2 years 4497031.02 449703.10 10.00
2-3 years 1406745.06 281349.01 20.00
3-4 years 5173757.51 1552127.25 30.00
4-5 years 364280.00 182140.00 50.00
More than 5 years 2241503.95 2241503.95 100.00
Total 74016869.50 7723500.89 10.43
(4) Change of provision for bad debts
191Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Phase I Phase II Phase III
Expected credit
Expected credit
Item Next 12 months losses for the Total
losses for the entire
Expected credit entire duration
duration (no credit
losses (credit impairment
impairment)
occurred)
Opening balance 2621511.17 199078.34 3907517.94 6728107.45
Opening balance
——————
during the period
-- Transferred to
-224851.55224851.55
Phase II
--Transferred to
-140674.51140674.51
Phase III
-- Reversed to Phase
II
-- Reversed to Phase I
Provision during the
-3053996.59166447.72208927.76-2678621.11
period
Recovery or reversal
during the period
Write-offs during the
period
Impact of exchange
3674014.553674014.55
rate changes
Closing balance 3016677.58 449703.10 4257120.21 7723500.89
Percentage of
Provision for bad 5.00 10.00 46.34 10.43
debts at end of period
The basis for phase division: a period of less than one year represents that the credit risk failed to increase
significantly after initial recognition (Phase I); a period of 1-2 years represents that the credit risk increased
significantly after initial recognition (Phase II) but did not result in credit impairment; a period of over 2 years
represents that credit impairment occurred after initial recognition (Phase III).
(5) Top five other receivables
Percentage of Provision for bad
Nature of Closing book
Unit name Ageing balance of other debts at end of
payment balance
receivables (%) period
Export tax
Export tax refund Within 1
refund 36262490.59 48.99 1813124.53
receivable year
receivable
C?ng ty c? ph?n
Deposit
T??ng Viên 3075787.51 3-4 years 4.16 922736.25
Guarantee
Grand Park
Administrative Over 5
1908000.002.581908000.00
Committee of years
Deposit
Hangzhou
Guarantee
Qiantang Smart 1007000.00 3-4 years 1.36 302100.00
City
Contribution to Temporary
Within 1
employee's social payments 2502296.97 3.38 125114.85
year
insurance receivable
192Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Percentage of Provision for bad
Nature of Closing book
Unit name Ageing balance of other debts at end of
payment balance
receivables (%) period
premium and
housing
provident funds
China
Construction
Deposit Within 1
Electronic 2150000.00 2.90 107500.00
Guarantee year
Commerce Co.Ltd
Subtotal 46905575.07 63.37 5178575.63
8. Inventories
(1) Detailed information
Closing balance
Item
Book balance Provision for decline Book value
Raw materials 669059988.90 8495823.44 660564165.46
Work in
274146569.34274146569.34
progress
Inventory 1651616654.30 34234466.08 1617382188.22
Commissioned
processing 14520201.78 14520201.78
materials
Low-value
2689354.002689354.00
consumables
Total 2612032768.32 42730289.52 2569302478.80
(Continued)
Opening balance
Item
Book balance Provision for decline Book value
Raw materials 763015426.57 11758583.43 751256843.14
Work in progress 346179403.66 346179403.66
Inventory 1769035629.25 72251465.32 1696784163.93
Commissioned
16699727.5416699727.54
processing materials
Low-value
1652387.411652387.41
consumables
Total 2896582574.43 84010048.75 2812572525.68
(2) Provision for decline in value of inventories
1) Detailed information
193Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Increase for the period Decrease for the period
Opening Impact of
Item Closing balance
balance Make exchange
Write off Write-offs
provision rate
changes
Raw
11758583.434049820.796328.086638914.64679994.228495823.44
materials
Inventory 72251465.32 19167146.71 440942.42 57625088.37 34234466.08
Total 84010048.75 23216967.50 447270.50 64264003.01 679994.22 42730289.52
2) Specific basis for determining net realizable value and the reason for provision for reversal or inventory write-
off during the period
Reasons for
reversal of Reasons for write off of
Specific basis provision for provision for decline in value of
Item
For determining net realizable value decline in value of inventory
inventories
Net realizable value is determined as the
Consumption of inventories for
estimated selling price of the relevant
Raw which provision for decline in
finished goods less costs estimated to be
materials value of inventories has been
incurred to completion estimated selling
made during the period
expenses and related taxes
Part of the inventories for which
provision for decline in value of
Net realizable value is determined as the
inventories had been made were
estimated selling price of the relevant
Inventory sold or scrapped and the
finished goods less estimated selling
corresponding provision for
expenses and related taxes.decline in value of inventories
had been written off
9. Non-current assets due within one year
Closing balance Opening balance
Item Provision Provision
Book
Book balance for Book value for Book value
balance
impairment impairment
Finance lease
payments 108310.38 108310.38 98061.60 98061.60
receivable
Total 108310.38 108310.38 98061.60 98061.60
10. Other current assets
194Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Closing balance Opening balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Retained
95585442.3995585442.39114913836.33114913836.33
VAT
Prepaid
enterprise 11454011.78 11454011.78 4945994.21 4945994.21
income tax
Amortized
1409020.541409020.543832917.833832917.83
expenses
Interest on
fixed 20342139.76 20342139.76 10437900.21 10437900.21
deposits
Total 128790614.47 128790614.47 134130648.58 134130648.58
11. Long-term receivables
Closing balance Opening balance
Discount
Item Provision Provision rate
Book Book Book
for bad for bad Book value range
balance value balance
debts debts
Finance lease
335454.55335454.55299568.31299568.310.75%
payments
Of which:
unrealized -3685.91 -3685.91 -4002.95 -4002.95
financing gains
Land lease
2572611.162572611.16
deposits
Total 335454.55 335454.55 2872179.47 2872179.47
12. Long-term equity investments
(1) Classification
Closing balance Opening balance
Provision Provision
Item
for for
Book balance Book value Book balance Book value
impairme impairme
nt nt
Investme
2950574477.2950574477.2544523517.2544523517.
nt in joint
94945555
ventures
2950574477.2950574477.2544523517.2544523517.
Total
94945555
(2) Detailed information
195Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Opening balance Increase and decrease during the period
Provision Gains and Adjustment to
Invested for Decrease losses on other
units Impairmen Additional in investments comprehensiv
Book value
t investments investment recognized e income
Individual s under the comprehensiv
bad debt equity method e income
Joint
ventures
Hangzhou
Zhongce
Haichao 1387637932.1 259947378.3
17435798.12
Enterprise 7 8
Management
Co. Ltd.Zhejiang
Hangcha 138739441.5
797869729.352817986.16
Holding Co. 1
Ltd
Zhejiang
Guozi
62379261.25-72548870.44-101852.77
Robotics
Co. Ltd.Ningbo
Donghai
201743081.348680923.63948892.18
Bank Co.Ltd.Changzhou
Stabila Laser
1938405.7
Instrument 2973263.38 -1147253.65
0
Company
Limited
Hangzhou
Weina
91920250.068445616.11-278.23
Technologie
s Co. Ltd.
2544523517.51938405.7342117235.5
Total 21100545.46
504
(Continued)
Increase and decrease during the period Closing balance
Declaration of
Invested units Provision Provision
Other changes in issuing cash
for accrual Other Book value for
equity dividends or
impairment impairment
profits
Joint ventures
Hangzhou
Zhongce
Haichao
5380273.501670401382.17
Enterprise
Management
Co. Ltd.
196Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Increase and decrease during the period Closing balance
Declaration of
Invested units Provision Provision
Other changes in issuing cash
for accrual Other Book value for
equity dividends or
impairment impairment
profits
Zhejiang
Hangcha
21082359.51960509516.53
Holding Co.Ltd
Zhejiang
Guozi
14432140.684160678.72
Robotics Co.Ltd.Ningbo
Donghai Bank 211372897.15
Co. Ltd.Changzhou
Stabila Laser
Instrument 3764415.43
Company
Limited
Hangzhou
Weina
100365587.94
Technologies
Co. Ltd.Total 40894773.69 2950574477.94
13. Investment in other equity instruments
Increase and decrease during the period
Gains and losses
recognized in
Item Opening balance Additional Decrease in other
Other
investments investments comprehensive
income for
current period
Hangzhou Haibang Xinhu
Talent Venture Capital
16550000.00
Partnership (limited
partnership)
Total 16550000.00
(Continued)
Cumulative gains and losses
Dividend income
recognized in other
Item Closing balance recognized for
comprehensive income at the
current period
end of the period
Hangzhou Haibang Xinhu Talent
Venture Capital Partnership 16550000.00
(limited partnership)
Total 16550000.00
197Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
14. Investment property
Item Buildings Land use rights Total
Original book value
Opening balance 118165047.78 16928850.24 135093898.02
Amount of increase during the
period
Amount of decrease during the
period
Closing balance 118165047.78 16928850.24 135093898.02
Accumulated depreciation and
accumulated amortization
Opening balance 10621732.55 2313609.46 12935342.01
Amount of increase during the
4546523.64338577.004885100.64
period
(1) Accrual or amortization 4546523.64 338577.00 4885100.64
Amount of decrease during the
period
Closing balance 15168256.19 2652186.46 17820442.65
Book value
Book value at the end of the period 102996791.59 14276663.78 117273455.37
Book value at the beginning of the
107543315.2314615240.78122158556.01
period
15. Fixed assets
(1) Detailed information
General Special Transportation
Item Buildings Total
equipment equipment facilities
Original book
value
Opening
1308659311.34251943918.561370067468.8744757332.912975428031.68
balance
Amount of
increase during 284514444.08 49679407.73 137530885.77 5366443.41 477091180.99
the period
1) Acquisitions 23796017.69 74338313.55 4068940.77 102203272.01
2) Transfer
from
269346652.9214395990.0320395700.04304138342.99
construction in
progress
3) Impact of
exchange rate 15167791.16 11487400.01 42796872.18 1297502.64 70749565.99
changes
198Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
General Special Transportation
Item Buildings Total
equipment equipment facilities
Amount of
decrease during 6721170.16 7203580.29 41945663.18 3743403.86 59613817.49
the period
1) Disposal or
6721170.167203580.2941945663.183743403.8659613817.49
retirement
Closing balance 1586452585.26 294419746.00 1465652691.46 46380372.46 3392905395.18
Accumulated
depreciation
Opening
435285918.07160367019.73821945421.3034826115.061452424474.16
balance
Amount of
increase during 74512180.80 31858098.36 142051286.22 3732680.02 252154245.40
the period
1) Accrual 70462039.75 28422903.39 107304963.53 3615057.42 209804964.09
2) Impact of
exchange rate 4050141.05 3435194.97 34746322.69 117622.60 42349281.31
changes
Amount of
decrease during 1160795.74 6577869.25 31014695.82 3395023.67 42148384.48
the period
1) Disposal or
1160795.746577869.2531014695.823395023.6742148384.48
retirement
Closing balance 508637303.13 185647248.84 932982011.70 35163771.41 1662430335.08
Provision for
impairment
Opening
4101324.564101324.56
balance
Amount of
increase during 54264.94 54264.94
the period
1) Impact of
exchange rate 54264.94 54264.94
changes
Amount of
decrease during 487411.44 487411.44
the period
1) Disposal or
487411.44487411.44
retirement
Closing balance 3668178.06 3668178.06
Book value
Book value at
the end of the 1077815282.13 108772497.16 529002501.70 11216601.05 1726806882.04
period
Book value at
the beginning of 873373393.27 91576898.83 544020723.01 9931217.85 1518902232.96
the period
(2) Fixed assets under operating leases
199Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Item Book value at the end of the period
Buildings 36465996.45
Subtotal 36465996.45
(3) Fixed assets with pending ownership certificates
Reason of ownership certificates being
Item Book value
pending
GreatStar e-Commerce Building 72609255.49 Being applied for
Laser Building of Hangzhou GreatStar
57741935.01 Being applied for
Tools Co. Ltd.Plant Buildings 1 and 2 of Viet Nam Documents being collected for
87647906.42
GreatStar Intelligence Co. Ltd. application
Subtotal 217999096.92
16. Construction in progress
(1) Detailed information
Closing balance Opening balance
Provision Provision
Item
for for
Book balance Book value Book balance Book value
impairmen impairmen
t t
Annual
output of
550000 sets
1865865.071865865.07
of laser sensor
modules
project
Phase I Plant
Construction
Project of
22619555.2922619555.2995185314.9495185314.94
Vietnam
Intelligent
Co. Ltd
Phase II Plant
Construction
Project of
22994368.4122994368.41
Vietnam
Intelligent
Co. Ltd
Phase II Plant
Construction
21017425.1321017425.13
Project in
Cambodia
Phase III
Plant 19576510.61 19576510.61
Construction
200Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Closing balance Opening balance
Provision Provision
Item
for for
Book balance Book value Book balance Book value
impairmen impairmen
t t
Project in
Cambodia
Phase II
Project with
Annual
Output of 1.5 5438938.06 5438938.06 9141619.68 9141619.68
Million Mesh
Technical
Reform
Intelligent
Factory
Project with
an Annual 121305866.4 121305866.4
19200447.5619200447.56
Output of 1 8 8
Million Sets
of New Power
Tools
Hangzhou
GreatStar
headquarter 28297770.43 28297770.43
transformatio
n projects
Thailand tool
box cabinet
production
11842636.0311842636.03
base
construction
project
Vietnam Joint
Plant
219966.85219966.851348331.571348331.57
Equipment
Installation
Drawer
production
line 28596859.65 28596859.65
construction
project
GreatStar
Energy
industrial 24054355.41 24054355.41
building
project
Sporadic
73566238.2173566238.2168526581.7968526581.79
project
270199288.7270199288.7304599362.4304599362.4
Total
1166
(2) Changes in significant construction-in-progress projects during the period
201Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Impact
Budgete
of
d number Other
Name of Opening Increase for Transfer to exchang Closing
(in ten decrease
project balance the period Fixed assets e balance
thousand s
rate
yuan)
changes
Intelligen
t Factory
Project
with an
Annual
13300.019200447.5103963826.01858407.0121305866.4
Output of
06088
1 Million
Sets of
New
Power
Tools
13300.019200447.5103963826.01858407.0121305866.4
Subtotal
06088
(Continued)
The proportion Interests
Progress Accumulated Interest
of cumulative capitalization
of interest capitalization Source of
Name of project investment in amounts for
Works capitalization rate for the funds
the project to the period
(%) amounts period (%)
the budget (%) for the period
Intelligent
Factory Project
with an Annual Raised and
92.6095.00
Output of 1 own funds
Million Sets of
New Power Tools
Subtotal
17. Right-of-use assets
General Special Transportation
Item Buildings Total
equipment equipment facilities
Original
book value
Opening
597080299.434212281.9718107197.67619399779.07
balance
Amount of
increase
86136933.35375999.424122094.6512223425.62102858453.04
during the
period
(1) Leased-in 41602288.16 3856604.80 11659509.20 57118402.16
(2) Effect of
exchange 44534645.19 375999.42 265489.85 563916.42 45740050.88
rate changes
Amount of
42972960.107372123.2050345083.30
decrease
202Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
during the
period
(1) Lease
42972960.107372123.2050345083.30
expiration
Closing
640244272.684588281.394122094.6522958500.09671913148.81
balance
Accumulated
depreciation
Opening
190981143.461823239.269466034.94202270417.66
balance
Amount of
increase
127441138.09549335.502879790.017734714.61138604978.21
during the
period
(1) Accrual 104888766.10 388102.31 2694312.71 5416600.26 113387781.38
(2) Effect of
exchange 22552371.99 161233.19 185477.30 2318114.35 25217196.83
rate changes
Amount of
decrease
40410289.117372123.2047782412.31
during the
period
(1) Lease
40410289.117372123.2047782412.31
expiration
Closing
278011992.442372574.762879790.019828626.35293092983.56
balance
Book value
Book value
at the end of 362232280.24 2215706.63 1242304.64 13129873.74 378820165.25
the period
Book value
at the
406099155.972389042.718641162.73417129361.41
beginning of
the period
18. Intangible assets
Land Trademark
Item ownership Land use rights Patent rights rights
Original book value
255109422.9
135014576.185407650.57326422582.83
Opening balance 1
22783086.4
6087114.9368535948.15104110028.30
Amount of increase during the period 9
68292268.06397322.89
(1) Acquisitions
21859366.0
78979761.00
(2) Increase due to consolidation 0
6087114.93243680.09526397.6025130267.30
(3) Effect of exchange rate changes
2727072.90
Amount of decrease during the period
203Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2727072.90
(1) Disposal
323645371.028190737.0
138374618.21430532611.13
Closing balance 6 6
Accumulated amortization
45272589.303149553.8710082454.18
Opening balance
10244714.171176857.157774802.46
Amount of increase during the period
(1) Accrual 10266051.73 1156405.39 7508421.85
(2) Effect of exchange rate changes -21337.56 20451.76 266380.61
Amount of decrease during the period
(1) Disposal
55517303.474326411.0217857256.64
Closing balance
Book value
268128067.523864326.0
138374618.21412675354.49
Book value at the end of the period 9 4
Book value at the beginning of the 209836833.6
135014576.182258096.70316340128.65
period 1
(Continued)
Proprietary Management
Item technologies software Emission rights Total
Original book value
18478820.35162902092.412648543.69905983688.94
Opening balance
Amount of increase
23799376.78225315554.65
during the period
7510588.3676200179.31
(1) Acquisitions
(2) Increase due to
100839127.00
consolidation
(3) Effect of exchange
16288788.4248276248.34
rate changes
Amount of decrease
2020718.104747791.00
during the period
2020718.104747791.00
(1) Disposal
18478820.35184680751.092648543.691126551452.59
Closing balance
Accumulated
amortization
13019868.82120711294.71949061.60193184822.48
Opening balance
Amount of increase
1755487.9324905521.12264854.4046122237.23
during the period
(1) Accrual 1755487.93 16893466.43 264854.40 37844687.73
204Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(2) Effect of exchange
8012054.698277549.50
rate changes
Amount of decrease
708691.90708691.90
during the period
708691.90708691.90
(1) Disposal
14775356.75144908123.931213916.00238598367.81
Closing balance
Book value
Book value at the end of
3703463.6039772627.161434627.69887953084.78
the period
Book value at the
5458951.5342190797.701699482.09712798866.46
beginning of the period
19. Goodwill
(1) Detailed information
Name of
Closing balance Opening balance
investee or
matters
Provision for Provision for
forming Book balance Book value Book balance Book value
impairment impairment
goodwill
Lista 1189377366 70398887. 1118978478 1065726426 70398887. 995327538.7
Holding AG .10 67 .43 .39 67 2
Geelong
Orchid 568037859.1 2455041.6 565582817.5 568037859.1 1573951.5 566463907.5
Holdings 1 1 0 1 9 2
Ltd
Arrow
653931525.6653931525.6643027588.8643027588.8
Fastener
0000
Co. LLC
Changzhou
Huada
Kejie Opto- 118076677.0 58591956. 118076677.0 58591956.
59484720.0559484720.05
Electro 1 96 1 96
Instrument
Co. Ltd.Prim' Tools
69957952.7169957952.7168791443.5868791443.58
Limited
Suzhou
Xindadi
Hardware 42288608.30 42288608.30 42288608.30 42288608.30
Product
Co. Ltd
Prexiso AG 38079740.04 38079740.04 34120865.62 34120865.62
Prime-Line
3311657.93311657.9
Products 30455610.00 27143952.07 29947780.00 26636122.07
33
LLC
Workwear
and labor
protection 24973059.72 808928.28 24164131.44
equipment-
related asset
205Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
group
purchased
by Scruffs
Workwear
Ltd
Longyou
Hugong
8072738.28072738.2
Forging 8072738.29 8072738.29
99
Three Tools
Co. Ltd
Shanghai
Endura 5677361.8 5677361.8
5677361.845677361.84
Tools Co. 4 4
Ltd.Hangzhou
Shibeide
Cutting 884415.32 884415.32 884415.32 884415.32
Tools Co.Ltd
Zhejiang
Guoxin
308667.41308667.41308667.41308667.41
Tools Co.Ltd.Yiyang
Tools
170033.92170033.92170033.92170033.92
Manufacturi
ng Co. Ltd
2750291615150679689259961192625851304651489896702436140794
Total.37.23.14.59.93.66
(2) Original book value of goodwill
Name of Resulting Decrease for the
Impact of
investee or from business period
Opening balance exchange rate Closing balance
matters forming combination
changes Disposals Other
goodwill in the period
Lista Holding
1065726426.39123650939.711189377366.10
AG
Geelong Orchid
568037859.11568037859.11
Holdings Ltd
Arrow Fastener
643027588.8010903936.80653931525.60
Co. LLC
Changzhou
Huada Kejie
Opto-Electro 118076677.01 118076677.01
Instrument Co.Ltd.Prim' Tools
68791443.581166509.1369957952.71
Limited
Suzhou Xindadi
Hardware
42288608.3042288608.30
Product Co.Ltd
Prexiso AG 34120865.62 3958874.42 38079740.04
Prime-Line
29947780.00507830.0030455610.00
Products LLC
206Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Name of Resulting Decrease for the
Impact of
investee or from business period
Opening balance exchange rate Closing balance
matters forming combination
changes Disposals Other
goodwill in the period
Workwear and
labor protection
equipment-
related asset
24385822.23587237.4924973059.72
group
purchased by
Scruffs
Workwear Ltd
Longyou
Hugong
8072738.298072738.29
Forging Three
Tools Co. Ltd
Shanghai
Endura Tools 5677361.84 5677361.84
Co. Ltd.Hangzhou
Shibeide
884415.32884415.32
Cutting Tools
Co. Ltd
Zhejiang
Guoxin Tools 308667.41 308667.41
Co. Ltd.Yiyang Tools
Manufacturing 170033.92 170033.92
Co. Ltd
Total 2585130465.59 24385822.23 140775327.55 2750291615.37
(3) Provision for impairment of goodwill
Name of
Increase for the period Decrease for the period
investee or Opening Closing
matters forming balance Make balance
Other Disposals Other
goodwill provision
Lista Holding
70398887.6770398887.67
AG
Geelong Orchid
1573951.59881090.022455041.61
Holdings Ltd
Changzhou
Huada Kejie
Opto-Electro 58591956.96 58591956.96
Instrument Co.Ltd.Prime-Line
3311657.933311657.93
Products LLC
Workwear and
labor protection
equipment-
related asset 808928.28 808928.28
group purchased
by Scruffs
Workwear Ltd
207Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Name of
Increase for the period Decrease for the period
investee or Opening Closing
matters forming balance Make balance
Other Disposals Other
goodwill provision
Longyou
Hugong Forging
8072738.298072738.29
Three Tools Co.Ltd
Shanghai
Endura Tools 5677361.84 5677361.84
Co. Ltd.Hangzhou
Shibeide
884415.32884415.32
Cutting Tools
Co. Ltd
Zhejiang
Guoxin Tools 308667.41 308667.41
Co. Ltd.Yiyang Tools
Manufacturing 170033.92 170033.92
Co. Ltd
Total 148989670.93 1690018.30 150679689.23
[Note] Goodwill arose from the recognition of deferred income tax liabilities for the relevant asset group of Geelong
Orchid Holdings Ltd and workwear and labor protection equipment-related asset group purchased by Scruffs
Workwear Ltd. A provision of RMB 881090.02 and a provision of RMB 808928.28 for impairment of goodwill
have been made due to the reversal of deferred income tax liabilities in the current period.
(4) Information about the asset group or combination of asset groups in which main goodwill is located
Whether the asset group or
Composition and basis of combination of asset groups was
Name of asset group
asset group or Operating segment and consistent with that determined
or combination of
combination of asset its basis on the purchase date and when the
asset groups
groups previous-year goodwill
impairment test was made
The operational assets The asset group
and liabilities relating to containing goodwill in
tool storage business in Lista Holding AG is its
Lista Holding AG Lista Holding AG asset asset group of tool Yes
group can generate storage D&R
independent cash production and
inflows marketing business
Different from that determined on
the purchase date and consistent
The operational assets with that determined when a
The asset group
and liabilities relating to goodwill impairment test was
containing goodwill in
tool storage business in made in 2022 The difference from
Geelong Orchid
Geelong Orchid Geelong Orchid that on the purchase date was
Holdings Ltd is its asset
Holdings Ltd Holdings Ltd asset mainly due to the adjustment of
group of tool storage
group which can internal business and equity
D&R production and
generate independent structure and Geelong (Thailand)
marketing business
cash inflows Co Ltd was introduced into
Geelong Orchid Holdings Ltd
asset group since 2022
208Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Whether the asset group or
Composition and basis of combination of asset groups was
Name of asset group
asset group or Operating segment and consistent with that determined
or combination of
combination of asset its basis on the purchase date and when the
asset groups
groups previous-year goodwill
impairment test was made
The operational assets
The asset group
and liabilities relating to
containing goodwill in
tools business in Arrow
Arrow Fastener Co. Arrow Fastener Co.Fastener Co. LLC asset Yes
LLC LLC is its asset group of
group can generate
tools D&R production
independent cash
and marketing business
inflows
(5) Specific method for determining recoverable amount of major goodwill
The recoverable amount was determined based on the present value of expected future cash flows
Book value of the asset
group or combination of Provision for Impairment
Item Recoverable amount
asset groups containing in the current period
goodwill
Lista Holding AG 1623529995.17 1967380000.00
Geelong Orchid
1043440203.221153042000.00
Holdings Ltd
Arrow Fastener Co.
1061688865.871064104848.00
LLC
(Continued)
Growth rate and
Revenue growth rate profit other parameters
Years of Discount rate and
margin and other parameters over over the
Item forecast its determination
the forecast period and their stabilization period
period basis
determination basis and their
determination basis
Based on historical experience
and market development
forecasts the Company has The pre-tax
determined that during the interest rate for the
forecast period (2024-2028) the time value of
revenue growth rate is -2.24% - market currency
Lista Holding AG 5.93% the gross profit margin and specific risks
(excluding depreciation and The growth rate of related asset
amortization) 27.13%-30.59% reaches stability in groups with a
5-year
and the profit margin before the fifth year of the discount rate of
period for
interest taxes depreciation and forecast period and 10.59%
detailed
amortization 17.24%-20.70% 0 growth in the sixth
forecasts
respectively year and perpetuity
Based on historical experience period
The pre-tax
and market development
interest rate for the
forecasts the Company has
time value of
Geelong Orchid determined that during the
market currency
Holdings Ltd forecast period (2024-2028) the
and specific risks
revenue growth rate is 3.81%-
of related asset
52.49% the gross profit margin
groups with a
18.32%-18.87% and the profit
209Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Growth rate and
Revenue growth rate profit other parameters
Years of Discount rate and
margin and other parameters over over the
Item forecast its determination
the forecast period and their stabilization period
period basis
determination basis and their
determination basis
margin before interest and taxes discount rate of
11.21%-12.42% respectively 12.68%
Based on historical experience
The pre-tax
and market development
interest rate for the
forecasts the Company has
time value of
determined that during the
market currency
Arrow Fastener forecast period (2024-2028) the
and specific risks
Co. LLC revenue growth rate is 5.00%-
of related asset
10.00% the gross profit margin
groups with a
23.63%-29.54% and the profit
discount rate of
margin before interest and taxes
11.65%
8.74%-14.73% respectively
20. Long-term amortized expenses
Impact of
Opening Increase for the Amortization
Item exchange rate Closing balance
balance period for the period
changes
Expenditure on
leasehold
6735976.6453905.291930160.511734.404861455.82
improvements
of fixed assets
Renovation
10874395.675023237.676855182.72-110899.478931551.15
expense
Mold costs 10234156.01 12100259.24 8569429.44 -7354.67 13757631.14
Other 1838746.02 5075498.97 1310952.50 19583.14 5622875.63
Total 29683274.34 22252901.17 18665725.17 -96936.60 33173513.74
21. Deferred income tax assets/deferred income tax liabilities
(1) Deferred tax liabilities without offsetting
Closing balance Opening balance
Item Deductible Deferred Deductible Deferred
temporary income tax assets temporary income tax assets
differences differences
Provision for bad
114342356.8220739142.3375037482.0319562336.87
debts
Provision for decline
51824082.1911178964.8194747478.7420983892.60
in value of inventories
Lease liabilities 153978306.34 29296516.80 195295175.16 39349672.33
Changes in fair value
1305491.60195823.7413075775.601961366.34
of financial
210Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
instruments held for
trading
Accrued expenses 115214300.28 29368943.84 87802250.40 26072370.12
Deferred income 327332.57 49099.89 795332.50 119299.88
Distribution of
12399101.261859865.1910437803.871565670.58
partnership profits
Total
449390971.0692688356.60477191298.30109614608.72
(2) Deferred tax liabilities without offsetting
Closing balance Opening balance
Item
Taxable Deferred Taxable Deferred
temporary differences income tax liabilities temporary differences income tax liabilities
Changes in
fair value of
financial
472251.4970837.72216822.7932523.42
instruments
held for
trading
Interest
20342139.763081934.2510354688.661553203.30
receivable
Depreciation
of fixed 156961011.90 35286769.43 60487407.12 10661582.63
assets
Appraisal of
appreciation
of assets in
non-
200326710.6744293429.84130493175.4122637189.13
identically
controlled
business
combinations
Other 63126203.66 12905251.70 59993435.24 12273663.16
Right-of-use
151808469.7129083863.76188537708.5839633853.20
assets
Total 593036787.19 124722086.70 450083237.80 86792014.84
(3) Breakdown of unrecognized deferred tax assets
Item Closing balance Opening balance
Deductible losses 308577922.52 291942202.73
Total
308577922.52291942202.73
(4) The deductible losses for which no deferred income tax assets have been recognized will expire in the following
years
Years Closing balance Opening balance
2023
12521147.05
211Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
2024
32427712.4532951460.64
2025
34160783.6334819578.42
2026
49388642.2669022589.38
2027
49038971.2250649136.49
2028
59949715.4126243099.31
2029
7438617.587438617.58
2030
13508002.1813508002.18
2031
27932795.5832348426.72
2032
10717366.5312440144.96
2033
24015315.68
Total
308577922.52291942202.73
22. Other non-current assets
Closing balance Opening balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Prepayment
for
39173724.8339173724.8357883798.8157883798.81
acquisition of
land
Prepayments
13667157.9413667157.9414558437.0014558437.00
for equipment
Prepayments
for
acquisition of 552100.00 552100.00 2064892.14 2064892.14
intangible
assets
Total 53392982.77 53392982.77 74507127.95 74507127.95
23. Assets subject to ownership or use restrictions
(1) Restricted assets as of the end of the period
Closing book Book value at the Types of
Item Reason for restriction
balance end of the period restrictions
Guarantee deposit for
Monetary assets 144071225.10 144071225.10 Pledged
short-term loan
Pledged Guarantee deposit for
Monetary assets 21496066.60 21496066.60 forward settlement of
exchange and sale
212Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Closing book Book value at the Types of
Item Reason for restriction
balance end of the period restrictions
Pledged
Monetary assets 16290210.00 16290210.00 Deposits for letter of credit
Pledged Guarantee deposit for bank
Monetary assets 6388901.19 6388901.19
acceptance
Pledged
Monetary assets 3541350.00 3541350.00 Deposits for credit card
Pledged Deposits for customs
Monetary assets 1416859.57 1416859.57
guarantees
Pledged
Monetary assets 1494449.70 1494449.70 Premium for lease
Pledged Guarantee deposit for
Monetary assets 49000.00 49000.00
ETC
Mortgage for bank
Fixed assets 40901325.49 25832626.15 Mortgaged
acceptance
Fixed assets 20789909.21 9133057.17 Mortgaged Mortgage for bank loan
Mortgage for bank
Intangible assets 3198505.51 1982663.42 Mortgaged
acceptance
Intangible assets 2451822.91 1336350.05 Mortgaged Mortgage for bank loan
Total 262089625.28 233032758.95
(2) Restricted assets as of the end of the period
Book value at the
Opening book Types of
Item beginning of the Reason for restriction
balance restrictions
period
Pledged Guarantee deposit for
Monetary assets 33448671.74 33448671.74 forward settlement of
exchange and sale
Pledged Guarantee deposit for
Monetary assets 20893800.00 20893800.00
short-term loan
Pledged
Monetary assets 6616370.00 6616370.00 Deposits for letter of credit
Pledged Guarantee deposit for bank
Monetary assets 7384067.19 7384067.19
acceptance
Pledged Deposits for customs
Monetary assets 1393093.00 1393093.00
guarantees
Pledged
Monetary assets 43000.00 43000.00 Guarantee deposit for ETC
Mortgage for bank
Fixed assets 40901325.49 27776638.39 Mortgaged
acceptance
Fixed assets 20789909.21 10003152.72 Mortgaged Mortgage for bank loan
Mortgage for bank
Intangible assets 3198505.51 2046633.50 Mortgaged
acceptance
Intangible assets 2451822.91 1385386.53 Mortgaged Mortgage for bank loan
100% shares of
Arrow Fastener —— 481723419.57 Pledge Pledge for bank loan
Co. LLC [Note]
Total 137120565.05 592714232.64
[Note] 100.00% shares of Arrow Fastener Co. LLC is the net book assets at the beginning of the period
213Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
24. Short-term borrowings
Item Closing balance Opening balance
Credit borrowing 884391813.12 1199414617.82
Mortgage 10000000.00 10000000.00
Pledge and guaranteed borrowing 70827000.00
Guaranteed borrowing 62000000.00 145646000.00
Pledge borrowing 75565506.84 20924304.95
Interest payable not yet due for accrual 463579.69 3077790.34
Total 1103247899.65 1379062713.11
25. Held-for-trading financial liabilities
Impact of
Opening Increase for the Decrease for the Closing
Item exchange rate
balance period period balance
changes
Held-for-trading financial
48413710.293126803.2948830280.43517493.083227726.23
liabilities
including: derivative
48413710.293126803.2948830280.43517493.083227726.23
financial liabilities
Total 48413710.29 3126803.29 48830280.43 517493.08 3227726.23
26. Notes payable
Item Closing balance Opening balance
Bankers' acceptance bill 18253448.48 21096540.03
Total 18253448.48 21096540.03
27. Accounts payable
Item Closing balance Opening balance
Payables for materials procurement 1330757594.65 1150990191.95
Payable expenses 161043215.61 165627875.06
Payables for project equipment 75245262.28 50257201.70
Total 1567046072.54 1366875268.71
214Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
28. Contractual liabilities
Item Closing balance Opening balance
Loans 147202549.06 131898420.14
Total 147202549.06 131898420.14
29. Employee benefits payable
(1) Detailed information
Increase for the period
Opening Decrease for the Closing
Item Impact of
balance Accrual for the period balance
exchange rate
current period
changes
Short-term
258307029.371952473977.705591567.551987287670.21229084904.41
remuneration
Post-
employment
benefits - defined 12371158.45 109774105.92 509781.93 108304905.48 14350140.82
contribution
plans
Total 270678187.82 2062248083.62 6101349.48 2095592575.69 243435045.23
(2) Detailed information on Short-term compensation
Increase for the period
Opening Decrease for the Closing
Item Accrual for the Impact of
balance period balance
current period exchange rate
changes
Wages bonuses
allowances and 253037098.02 1766204283.78 5470546.38 1802353632.09 222358296.09
subsidies
Employee
59063981.5260472.0757865508.301258945.29
welfare expenses
Social insurance
3983299.7389775181.3663052.9489641993.684179540.35
premium
Including:
Medical
3678123.2482468963.7362766.0582525590.173684262.85
insurance
premiums
Work injury
compensation
301310.416689077.65286.896504504.82486170.13
insurance
premiums
Maternity
insurance 3866.08 617139.98 611898.69 9107.37
premiums
Housing
345149.5627166147.643249.4527187487.81327058.84
provident funds
Labor union
941482.0610264383.40-5753.2910239048.33961063.84
funds and
215Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Increase for the period
Opening Decrease for the Closing
Item Accrual for the Impact of
balance period balance
current period exchange rate
changes
employee
education funds
Subtotal 258307029.37 1952473977.70 5591567.55 1987287670.21 229084904.41
(3) Details on defined contribution plans
Increase for the period
Opening Decrease for the Closing
Item Accrual for the Impact of
balance period balance
current period exchange rate
changes
Basic pension
12188772.9198798377.11348171.8199739026.6011596295.23
insurance
Unemployment
insurance 182385.54 10975728.81 161610.12 8565878.88 2753845.59
premiums
Subtotal 12371158.45 109774105.92 509781.93 108304905.48 14350140.82
30. Taxes and rates payable
Item Closing balance Opening balance
Business income tax 97187904.30 128337935.70
Value-added tax 15175202.82 25628212.44
Property tax 8004245.12 6855195.19
Stamp duty 1823901.04 2116945.92
Withheld individual income tax 2756689.72 3844249.01
Land use tax 3360603.50 2072352.53
Urban maintenance and construction tax 561518.74 1356721.18
Education surcharge 322147.54 682263.36
Local education surcharge 214765.00 462433.69
Environmental protection tax 1974.70 1442.26
Disabled person's protection fund 66367.44 61129.65
Withheld consumption tax 2251893.93 4646613.97
Withheld VAT 582131.10 494411.75
Withheld enterprise income tax 142849.16 384048.88
216Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Item Closing balance Opening balance
Total 132452194.11 176943955.53
31. Other payables
(1) Detailed information
Item Closing balance Opening balance
Dividend payable 8400000.00
Other payables 29229238.62 21198376.32
Total 37629238.62 21198376.32
(2) Dividend payable
Item Closing balance Opening balance
Dividend payable to non-controlling shareholders 8400000.00
Subtotal 8400000.00
(3) Other payables
Item Closing balance Opening balance
Temporary receipts payable 4920331.64 8050261.29
Borrowed funds 5055791.67
Deposit Guarantee 6717780.30 2453772.95
Accrued expenses 1829256.00 1447150.53
Payables for share acquisition 13219688.93
Other 2542181.75 4191399.88
Total 29229238.62 21198376.32
32. Non-current liabilities due within one year
Item Closing balance Opening balance
Long-term borrowings due within one year 874962000.00 233875782.07
including: pledge borrowings 73520000.00
Credit borrowing 874962000.00 26402268.47
217Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Item Closing balance Opening balance
Guaranteed borrowing 133953513.60
Lease liabilities due within one year 102552484.95 88367583.10
Interest payable on long-term borrowing not yet due for
616132.081053468.23
accrual
Total 978130617.03 323296833.40
33. Other current liabilities
Item Closing balance Opening balance
Output tax amount to be forwarded 2050790.27 2136266.97
Total 2050790.27 2136266.97
34. Long-term borrowings
Item Closing balance Opening balance
Credit borrowing 708270.00 724448825.19
Pledge borrowing 73600000.00
Interest payable on long-term borrowing not yet due for
556126.65
accrual
Total 708270.00 798604951.84
35. Lease liabilities
Item Closing balance Opening balance
Outstanding lease payments 298113358.92 324601077.37
Less: unrecognized financing costs 14312589.00 6379727.38
Total 283800769.92 318221349.99
36. Long-term employee benefits payable
Item Closing balance Opening balance
Benefits upon severance 19098027.87 19223856.97
Total 19098027.87 19223856.97
218Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
37. Estimated liabilities
Item Closing balance Opening balance
Soil remediation costs 2601750.88 2036528.30
Product quality warranty 5100895.87 2511885.60
Total 7702646.75 4548413.90
38. Deferred income
Opening Increase for Decrease for Closing
Item Reason for formation
balance the period the period balance
Government grants 2364687.74 1120500.00 966795.25 2518392.49 Special subsidization
Total 2364687.74 1120500.00 966795.25 2518392.49
39. Share capital
Increase/decrease within the current period ("-" for
less)
Conversion
Closing
Item Opening balance New of capital
Bonus balance
shares reserve Other Subtotal
shares
issued into share
capital
Total number of
12025019921202501992
shares
40. Capital reserve
(1) Detailed information
Increase for the Decrease for the
Item Opening balance Closing balance
period period
Capital premium (share
3732447073.6612832066.784619747.843740659392.60
premium)
Other capital reserves 218331862.87 40894773.69 259226636.56
Total 3950778936.53 53726840.47 4619747.84 3999886029.16
(2) Other notes
1) Notes on changes in Capital reserve - share capital premium)
(i) Increase for the period
The Company acquired 16.286% 28.00% and 18.00% interests in Hangzhou Lianhe Electric Manufacturing Co.Ltd Hangzhou Liansheng Tools Manufacturing Co. Ltd and Longyou Hugong Forging Three Tools Co. Ltd held
by their minority shareholders respectively with a value of RMB 12818462.70 RMB 5056837.80 and RMB
20097475.51. When preparing the consolidated financial statements the differences of RMB 5754208.97 RMB
64162.19 and RMB 7013695.62 between the long-term equity investment acquired by acquiring minority interests
219Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
and the share of net assets of the above companies that should be held by the Company from the consolidation date
based on the new shareholding percentage were included into the capital reserve.(ii) Decrease for the period
The Company acquired 3.00% and 8.085% interests in Hangzhou Ole-Systems Co. Ltd and Yiyang Tools
Manufacturing Co. Ltd held by their minority shareholders respectively with a value of RMB 800000.00 and RMB
6902524.49. When preparing the consolidated financial statements the differences of RMB 1899591.38 and
RMB 2720156.46 between the long-term equity investment acquired by acquiring minority interests and the share
of net assets of the above companies that should be held by the Company from the consolidation date based on the
new shareholding percentage wrote down the capital reserve.
2) Notes on changes in Capital reserve - Other capital reserves
The share of changes in owners' equity other than net profit/loss other comprehensive income and profit
distribution of Zhejiang Guozi Robotics Co. Ltd. Zhejiang Hangcha Holding Co. Ltd. and Hangzhou Zhongce
Haichao Enterprise Management Co. Ltd. that should be held by the Company based on shareholding percentage
was adjusted to increase the Long-term equity investments and Capital reserve - Other capital reserve by RMB
14432140.68 RMB 21082359.51 and RMB 5380273.50 respectively.
41. Treasury shares
(1) Detailed information
Increase for the Decrease for the
Item Opening balance Closing balance
period period
Treasury shares 236625962.00 236625962.00
Total 236625962.00 236625962.00
(2) Other notes
By resolution of the 11th session of the Company's 5th Board of Directors meeting the Company has agreed to buy
back part of the Company's shares by means of centralized bidding with its own funds of not less than RMB 180
million and not more than RMB 360 million. The repurchase price of shares shall not exceed RMB 36 per share
and the repurchase period shall not exceed 12 months from the date of approval by the board of directors. As of the
end of the period the Company's special account for share repurchase has cumulatively repurchased 8023810
shares and paid a total price of RMB 236625962.00 therefor.
42. Other comprehensive income
Jan.-Sept. 2022
Less:
Other comprehensive income after tax
Amounts
Less: of
Amounts After- transferri
of tax ng from
Opening Accrued transferri After-tax amount other Closing
Item Less:
balance amount ng from amount attributa comprehe balance
Income
before other attributabl ble to nsive
tax
income comprehe e to the non- income
expense
tax in the nsive parent controlli recognize
s
period income Company ng d in
recognize sharehol previous
d in ders periods to
previous retained
220Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
periods to earnings
gains and in the
losses in period
the period (After-tax
amount
attributab
le to the
parent
Company
)
Not to be
reclassified - - - - -
subsequent 8873946 7080703 123656 5844140 9458360
ly to profit 1.08 .80 3.40 .40 1.48
or loss
Including:
Remeasure
ments of - - - - -
the net 8873946 7080703 123656 5844140 9458360
defined 1.08 .80 3.40 .40 1.48
benefit
plan
To be
reclassified
2037483122288612228866219353260370
subsequent
77.2062.2762.27.4239.47
ly to profit
or loss
Including:
Items
under
equity - -
21100542110054
method 5406626 3296572
5.465.46
that may be 8.84 3.38
reclassified
to profit or
loss
Translation 2578146 1011881 1011881 621935 3590027
reserve 46.04 16.81 16.81 .42 62.85
Total of
other -
1150089115207911644456219352314534
comprehen 123656
16.1258.4721.87.4237.99
sive 3.40
income
43. Surplus reserve
(1) Detailed information
Increase for the Decrease for
Item Opening balance Closing balance
period the period
Statutory surplus reserve 663843379.04 125117089.02 788960468.06
Total 663843379.04 125117089.02 788960468.06
(2) Other notes
221Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
According to the provisions of the Company's articles of association a statutory surplus reserve of 10% shall be
withdrawn from the net profit realized by the parent Company in the period.
44. Undistributed profit
(1) Detailed information
Current period Preceding period
Item
cumulative comparative
Undistributed profits at the beginning of the period 7702625494.43 6348070987.28
Add: Net profits attributable to owners of the parent
1691612756.791419854709.56
Company
Less: Provision of statutory surplus reserve 125117089.02 65300202.41
Dividends payable for common shares 407317051.79
Undistributed profits at the end of the period 8861804110.41 7702625494.43
(2) Other information
According to the resolutions of the second meeting of the sixth Board of Directors and the third temporary General
Meetings of Shareholders in 2023 of the Company the Company distributed rights for the first three quarter of 2023.In December 2023 the Company distributed RMB 1.75 (tax included) per 10 shares to all shareholders based on
the total of 1194478182 shares (i.e. total share capital of 1202501992 shares excluding repurchased 8023810
shares) and cash dividends of RMB 209033681.85 were distributed in total.According to the resolutions of the thirtieth meeting of the fifth Board of Directors and the General Meetings of
Shareholders in 2022 of the Company the Company distributed rights for the year of 2022. In June 2023 the
Company distributed RMB 1.66 (tax included) per 10 shares to all shareholders based on the total of 1194478182
shares (i.e. total share capital of 1202501992 shares excluding repurchased 8023810 shares) and cash dividends
of RMB 198283372.94 were distributed in total.(II) Notes to the Consolidated income statement Items
1. Operating revenues / operating costs
(1) Detailed information
Current period cumulative Preceding period comparative
Item
Revenue Cost Revenue Cost
Main business income 10865309434.63 7423231250.13 12545286576.78 9244404166.19
Other income 64683367.69 30890842.06 64903013.55 22518138.56
Total 10929992802.32 7454122092.19 12610189590.33 9266922304.75
including: revenue
generated from the
10905014276.297448115357.7712586390194.729261882586.65
contracts with the
clients
(2) Breakdown information of the revenue generated from contracts with clients by major categories
222Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
1) The breakdown information of operating revenue by products or service types is detailed in Note XVI "Other
significant matters".
2) The revenue generated from contracts with clients is broken down by the time of transfer of goods or service
Preceding period
Item Current period cumulative
comparative
Revenue is recognized at a point in time 10905014276.29 12586390194.72
Subtotal 10905014276.29 12586390194.72
(3) The revenue recognized in the period and included in the opening book value of contractual liabilities is RMB
131898420.14.
2. Taxes and surcharges
Current period Preceding period
Item
cumulative comparative
Property tax 19937301.79 16912104.43
Urban maintenance and construction tax 7241177.65 11571038.85
Stamp duty 7168194.80 8040968.45
Education surcharge 3574975.46 5189547.92
Land use tax 3341880.06 2084005.49
Local education surcharge 2383316.95 3459698.53
Vehicle and vessel tax 50150.66 58382.49
Environmental protection tax 14145.28 13002.52
Total 43711142.65 47328748.68
3. Selling expenses
Current period Preceding period
Item
cumulative comparative
Employee benefits expenses 418565790.97 398662746.55
Advertising and promotional expenses 259757461.00 234815034.42
Office expenses 77260165.18 53295831.67
Depreciation and amortization 26148085.42 16451396.81
Consulting fees 19448345.84 14737583.22
Travel expenses 11266789.56 6520356.14
Housing rent 9659563.96 8096364.87
223Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Current period Preceding period
Item
cumulative comparative
Employee benefits expenses 418565790.97 398662746.55
Commodity inspection fees 6518131.28 5278754.56
Insurance premiums 7255364.16 4133914.99
Other 15404278.61 15236456.57
Total 851283975.98 757228439.80
4. Administrative expenses
Current period Preceding period
Item
cumulative comparative
Employee benefits expenses 473117714.26 474556828.40
Office expenses 101251279.49 97032204.35
Depreciation and amortization 83879427.97 77866531.84
Consulting fees 72053321.84 64751668.35
Travel expenses 17686407.52 17871137.28
Business entertainment expenses 3794559.90 3874433.78
Taxes and rates 2690241.29 2793774.11
Greening expenses 2273011.25 2976006.64
Other 19437678.82 19238855.11
Total 776183642.34 760961439.86
5. R&D expenses
Current period Preceding period
Item
cumulative comparative
Employee benefits expenses 191340299.56 198631442.97
Direct input 95403069.21 83802929.10
Depreciation and amortization 13275762.42 15283842.90
Other 22516962.43 21726320.19
Total 322536093.62 319444535.16
6. Financial expenses
224Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Current period Preceding period
Item
cumulative comparative
Interest expenses 84769466.12 102114891.52
Interest income -139528683.81 -83482441.75
Profits or losses on foreign exchange -163005391.80 -146152161.07
Bank charges 10263086.43 16664536.54
Total -207501523.06 -110855174.76
7. Other income
Amounts included in
Current period Preceding period non-recurring gains
Item
cumulative comparative and losses of the
period
Government grants related to assets 866795.25 1110756.89 866795.25
Government grants related to income 33110021.82 49227280.96 29344791.58
Refund of handling fees for
650837.62333584.83
withholding personal income tax
Additional deduction of value-added
3554586.96
tax
Total 38182241.65 50671622.68 30211586.83
8. Investment income
Preceding period
Item Current period cumulative
comparative
Income from long-term equity investments recognized
342117235.54186224854.43
under the equity method
Investment income from disposal of long-term equity
70248.49
investments
Discounting loss on receivables financing -17897921.26 -7931415.18
Investment income from disposal of held-for-trading
-82927747.51-13836147.37
financial assets
Including: derivative financial instruments -84843046.20 -25565069.36
Bank financial products 1915298.69 2368356.03
Investment in equity instruments 9360565.96
Dividend income from investments in other equity
12400000.00
instruments during the holding period
Total 241291566.77 176927540.37
9. Gains on changes in fair value
225Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Current period Preceding period
Item
cumulative comparative
Held-for-trading financial assets 50175050.93 -41392762.63
Including: Gains on changes in fair value from derivative
49702799.44-41392762.63
financial liabilities
including: financial products 472251.49
Gains on changes in fair value of other equity instrument
-9187665.41
investments
Total 50175050.93 -50580428.04
10. Credit impairment loss
Current period Preceding period
Item
cumulative comparative
Loss due to bad debt -3493974.10 19113580.83
Total -3493974.10 19113580.83
11. Assets impairment loss
Current period Preceding period
Item
cumulative comparative
Loss from decline in value of inventories -23216967.50 -43189938.27
Fixed assets impairment loss -3305922.73
Goodwill impairment losses -1667847.06 -14828934.37
Total -24884814.56 -61324795.37
12. Gains on asset disposal
Amounts included in
Current period Preceding period non-recurring
Item
cumulative comparative gains and losses of the
period
Gains on disposal of fixed assets 5561483.02 -15154452.66 5561483.02
Gains on disposal of intangible
-20689.66-1816371.00-20689.66
assets
Gains on disposal of right-of-use
269664.4075858.93269664.40
assets
Total 5810457.76 -16894964.73 5810457.76
13. Non-operating revenue
226Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Amounts included in
Current period Preceding period non-recurring
Item
cumulative comparative gains and losses of the
period
Income from compensation 1614376.69 142321.59 1614376.69
Accounts unable to be paid 968138.29 927736.08 968138.29
Gains from damage and scrapping
38194.24245.3838194.24
of non-current assets
Other 208666.21 112707.39 208666.21
Total 2829375.43 1183010.44 2829375.43
14. Non-operating expenditures
Amounts included in
Current period Preceding period non-recurring
Item
cumulative comparative gains and losses of the
period
Expenditure for compensation 3042379.23 9616939.96 3042379.23
Outward donations 2730011.37 2381483.86 2730011.37
Losses from damage and scrapping
4193427.447507908.934193427.44
of non-current assets
Fines 307807.49 846535.48 307807.49
Other 584453.27 628789.12 584453.27
Total 10858078.80 20981657.35 10858078.80
15. Income tax expenses
(1) Detailed information
Current period Preceding period
Item
cumulative comparative
Current income tax expenses 261599598.13 273828973.28
Deferred income tax expenses 32395692.53 -51729378.86
Total 293995290.66 222099594.42
(2) Accounting adjustment process for profits and income tax expenses
Current period Preceding period
Item
cumulative comparative
Total profits 1988709203.68 1667273205.67
Income tax expenses calculated based on applicable tax rates
298306380.55250090980.85
to the parent Company
227Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Impact of different tax rates applicable to subsidiaries 27889299.65 16972963.30
Impact of adjusting income tax expenses in previous periods 8651068.49 23824878.53
Impact of non-taxable income -3691860.64 -7509723.61
Impact of non-deductible costs expenses and losses 3759418.30 7280854.51
Impact of applying deductible losses for which no deferred
-21053086.14-20962995.36
income tax assets have been recognized in previous periods
Impact of investment income from long-term equity
-51553276.20-28150792.19
investments recognized under the equity method
Impact of deductible temporary differences or deductible
losses for which no deferred income tax assets have been 67702780.72 17778857.42
recognized in the current period
Impact of additional deduction for technical development
-36015434.07-37225429.03
expenses and disabled person's wages
Income tax expenses 293995290.66 222099594.42
16. Other comprehensive income after tax
Other comprehensive income after tax is detailed in Note 43 of (I) "Notes to the consolidated balance sheet items"
under VII. "Notes to the Consolidated Financial Statements Items".(III) Notes to the Consolidated cash flow statement Items
1. Cash receipts or payments related to important investment activities
Net cash payments for the acquisition of subsidiaries & other business units
Current period Preceding period
Item
cumulative comparative
Cash or cash equivalents paid in the current period for
127498351.8976724758.42
business combination occurring in the current period
including: workwear and labor protection equipment-related
127498351.89
asset group purchased by Scruffs Workwear Ltd
Geelong Orchid Holding Limited 47973954.65
BeA Company 28750803.77
Net cash payments for the acquisition of subsidiaries 127498351.89 76724758.42
2. Other cash receipts or payments related to operating investment and financing activities
(1) Other cash receipts related to operating activities
Current period Preceding period
Item
cumulative comparative
Recovered deposits for bankers' acceptance bills and letters
14000437.1927725700.00
of credit
Interest income 129624444.26 76728216.03
Income from government grants 34230521.82 46029953.90
228Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Operating lease income 24978526.03 20667575.93
Recovered deposits for customs guarantees 700000.00
Other 5371976.71 230323.25
Total 208205906.01 172081769.11
2. Other cash payments related to operating activities
Current period Preceding period
Item
cumulative comparative
Current operating costs 1118626858.56 1146808817.06
Payments for deposits for bankers' acceptance bills and
26220461.1914000437.19
letters of credit and credit cards
Other 6250541.53 11076711.72
Total 1151097861.28 1171885965.97
3. Other cash receipts related to investing activities
Current period Preceding period
Item
cumulative comparative
Recovered deposits for purchasing forward settlement and
33448671.7469702798.00
sale of foreign exchange
Recovered deposits for project performance 492906.98
Total 33448671.74 70195704.98
4. Other cash payments related to investing activities
Current period Preceding period
Item
cumulative comparative
Deposits for purchasing forward settlement and sale of
21496066.60100856217.74
foreign exchange
Loss on investment in forward settlement and sale of foreign
85001646.2029020494.96
exchange
Total 106497712.80 129876712.70
5. Other cash receipts related to financing activities
Current period Preceding period
Item
cumulative comparative
Recovered deposits for bank loans 20893800.00
Received discount payments for bills issued within the scope
198169166.6799266666.67
of consolidation
Receipt of Borrowed funds 5000000.00
Total 219062966.67 104266666.67
6. Other cash payments related to financing activities
229Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Current period Preceding period
Item
cumulative comparative
Funds paid for share repurchase 50184047.52
Funds paid for acquiring non-controlling interests 32455611.57
Repayment of Borrowed funds and their interests 5197708.36 602271700.00
Repayment of lease liabilities and interests 123288119.76 86735381.29
Handling fees for financing guarantees and receivables
17897921.267931415.18
financing transfers
Payment of deposits for bank loans 144071225.10 20893800.00
Payment of deposits for lease of right-of-use assets 1494449.70
Payment for stock issue 16273353.87
Total 324405035.75 784289697.86
3. Additional information on cash flow statement
Current period Preceding period
Additional information
cumulative comparative
(1) Adjustment of net profits to cash flows from operating
activities:
Net profit 1694713913.02 1445173611.25
Add: Provision for impairment of assets 28378788.66 42211214.54
Depreciation of fixed assets depletion of oil and gas assets
214351487.73181387033.50
and depreciation of productive biological assets
Depreciation of right-of-use assets 113387781.38 98348716.39
Amortization of intangible assets 38183264.73 32283200.07
Amortization of long-term amortized expenses 18665725.17 16566519.35
Loss on disposal of fixed assets intangible assets and other
-5810457.7616894964.73
long-term assets (or less: income)
Loss on scrapping of fixed assets (or less: income) 4155233.20 7507663.55
Loss from changes in fair value (or less: income) -50175050.93 50580428.04
Financial expenses (or less: income) -78235925.68 -44037269.55
Investment losses (or less: income) -241291566.77 -176927540.37
Decrease in deferred income tax assets (or less: increase) 16926252.12 -29523941.16
Increase in deferred income tax liabilities (or less: decrease) 37930071.86 -26001565.70
Decrease in inventory (or less: increase) 219605808.88 -24001558.52
Decrease in operating receivables (or less: increase) -21476546.56 313928739.58
230Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Current period Preceding period
Additional information
cumulative comparative
Increase in operating payables (or less: decrease) 136546146.60 -272553573.31
Other
Net cash flows from operating activities 2125854925.65 1631836642.39
(2) Major investment and financing activities involving no
cash receipts and payments:
Debt converted to capital
Convertible corporate bonds maturing within one year
Financial lease of fixed assets
(3) Net changes in cash and cash equivalents:
Closing balance of cash 4983979749.60 4793427180.47
Less: Opening balance of cash 4793427180.47 4001186241.18
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 190552569.13 792240939.29
4. Composition of cash and cash equivalents
(1) Detailed information
Item Closing balance Opening balance
1) Cash 4983979749.60 4793427180.47
including: cash on hand 700564.56 4328053.84
Bank deposits readily available for payment 4982842025.49 4788725570.94
Other monetary fund readily available for payment 437159.55 373555.69
Central bank deposit available for payment
Deposit from the same trade
Call loan to the same trade
2) Cash equivalents
including: bond investment maturing within three months
3) Closing balance of cash and cash equivalents 4983979749.60 4793427180.47
including: cash and cash equivalents for limited use by parent
Company
or subsidiaries within the group
231Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(2) Cash and cash equivalents held by the Company for limited use
Reasons for their limited use and
Item Closing balance Opening balance for their use as cash and cash
equivalents
For limited use
Raised funds 115301372.56 259919361.39
but being readily available
Subtotal 115301372.56 259919361.39
(3) Monetary fund not belonging to cash and cash equivalents
Reasons for not belonging to cash
Item Closing balance Opening balance
and cash equivalents
Guarantee deposit for
forward settlement of 21496066.60 33448671.74 Not readily available
exchange and sale
Guarantee deposit for short-
144071225.10 20893800.00 Not readily available
term loan
Deposits for letter of credit 16290210.00 6616370.00 Not readily available
Guarantee deposit for bank
6388901.19 7384067.19 Not readily available
acceptance
Deposits for credit card 3541350.00 Not readily available
Premium for lease 1494449.70 Not readily available
Deposits for customs
1416859.57 1393093.00 Not readily available
guarantees
Guarantee deposit for ETC 49000.00 43000.00 Not readily available
Subtotal 194748062.16 69779001.93
5. Changes of liabilities related to financing activities
Increase for the period Decrease for the period
Opening Closing
Item
balance Non-cash Non-cash balance
Cash Change Cash Change
change change
Short-
term 1379062713. 2366725718. 112068452. 2754608984. 1103247899.borrowin 11 44 45 35 65
gs
Long-
term
borrowin
gs
1033534202.170145490.327393290.6876286402.0
(includin
146288
g those
due
within
one year)
Lease
liabilities
406588933.0103831552.121326898.42740332.386353254.8
(includin
9560387
g those
due
232Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Increase for the period Decrease for the period
Opening Closing
Item
balance Non-cash Non-cash balance
Cash Change Cash Change
change change
within
one year)
2819185848.2366725718.386045495.3203329173.2740332.2365887556.
Subtotal
344463433860
(2) Major activities involving no cash receipts and payments
Amount transferred through commercial bill endorsement involving no cash receipts and payments
Current period Preceding period
Item
cumulative comparative
Amount of commercial bills transferred through
22963797.2018854235.67
endorsement
including: payment for goods 22474502.07 18023192.60
Payment for acquisition of fixed assets and other long-term
489295.13831043.07
assets
(IV) Others
1. Monetary items in foreign currencies
(1) Detailed information
233Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Exchange
Closing balance of
Item rate for Closing balance in RMB after translation
foreign currencies
translation
Monetary assets 2729050133.86
Including: USD 283638365.93 7.0827 2008925454.37
EUR 35891676.59 7.8592 282079864.66
HKD 16054387.26 0.9062 14548485.74
CHF 2882267.55 8.4184 24264081.14
GBP 40967826.29 9.0411 370394214.27
CAD 7498.20 5.3673 40245.09
AUD 365798.81 4.8484 1773538.95
NZD 46.98 4.4998 211.40
THB 12090649.50 0.2074 2507600.71
JPY 109425.00 0.0502 5493.14
VND 61162031163.00 0.00029207 17863594.44
Mexican peso 48790.00 0.4181 20399.10
Riel 4016920.00 0.0017 6828.76
CZK 10217807.30 0.3193 3262545.87
DKK 1911227.09 1.0536 2013668.86
SEK 1470735.93 0.7110 1045693.25
NOK 428283.94 0.6963 298214.11
Accounts
2033380391.40
receivable
Including: USD 245075271.83 7.0827 1735794627.79
EUR 31455655.93 7.8592 247216291.09
HKD 48125.18 0.9062 43611.04
CHF 918668.71 8.4184 7733720.67
GBP 3470278.31 9.0411 31375133.23
VND 419666860.68 0.00029207 122572.10
CZK 18687041.62 0.3193 5966772.39
DKK 1994443.14 1.0536 2101345.29
234Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
SEK 262658.69 0.7110 186750.33
NOK 1083126.78 0.6963 754181.18
AUD 430118.45 4.8484 2085386.29
Receivables
202966744.21
financing
Including: USD 28656690.84 7.0827 202966744.21
Long-term
335454.55
receivables
Including: CHF 39847.78 8.4184 335454.55
Short-term
581387930.81
borrowings
Including: USD 20029200.00 7.0827 141860814.84
EUR 31968826.53 7.8592 251249401.46
CHF 22314866.89 8.4184 187855475.43
GBP 46702.18 9.0411 422239.08
Accounts payable 562857026.53
Including: USD 47870102.26 7.0827 339049573.28
EUR 14863906.17 7.8592 116818411.37
HKD 2408224.42 0.9062 2182332.97
CHF 3078763.12 8.4184 25918259.45
GBP 99544.82 9.0411 899994.67
AUD 219713.71 4.8484 1065259.95
JPY 66139778.54 0.0502 3320216.88
THB 64406570.64 0.2074 13357922.75
VND 181413623558.20 0.00029207 52985477.03
CZK 19623072.75 0.3193 6265647.13
DKK 16218.19 1.0536 17087.48
SEK 693947.67 0.7110 493396.79
NOK 694308.17 0.6963 483446.78
Non-current
liabilities due 498074049.44
within one year
Including: USD 62890640.00 7.0827 445435535.93
235Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
EUR 1634740.37 7.8592 12847751.52
HKD 138403.40 0.9062 125421.16
CHF 3603977.27 8.4184 30339722.25
VND 31929395619.42 0.00029207 9325618.58
Long-term
708270.00
borrowings
Including: USD 100000.00 7.0827 708270.00
Lease liabilities 238759985.48
Including: USD 211847.00 7.0827 1500448.75
EUR 3505841.92 7.8592 27553112.82
CHF 24631151.80 8.4184 207354888.31
VND 8051274000.00 0.00029207 2351535.60
(2) Description of overseas operating entities
Item Principal operating locations Bookkeeping currency
Germany Austria Australia France
Czech Republic United States
EUR AUD USD CHF GBP
BeA GmbH and its subsidiaries Norway Sweden Switzerland
CZK SEK and NOK
Slovakia Spain Italy and United
Kingdom
GreatStar Tools USA INC. and its
The US USD
subsidiaries
Switzerland Austria Germany
Lista Holding AG and its
France Spain Italy United CHF EUR GBP and CZK
subsidiaries
Kingdom and Czech Republic
Hong Kong GreatStar International
Hong Kong USD
Co. Ltd.
2. Lease
(1) The Company operates as a lessee
1) The information on right-of-use assets is detailed in Note 17 of (I) under VII. "Notes to the Consolidated Financial
Statements Items"..
2) The accounting policy of the Company related to short-term leases and leases of low-value assets is detailed in
Note 31 under V. "Significant Accounting Policies and Accounting Estimates". The expenses for short-term leases
and leases of low-value assets recognized in current profits and losses are as follows:
236Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Current period Preceding period
Item
cumulative comparative
Expenses for short-term lease 15101440.22 41007534.99
The expenses for lease of low-value assets (excluding short-
1471965.78640296.62
term lease)
Total 16573406.00 41647831.61
3) Current profits and losses and cash flow related to leasing
Current period Preceding period
Item
cumulative comparative
Interest expense for lease liabilities 9930569.77 10349638.07
Income obtained from subleasing right-of-use assets 1974154.92
Total cash outflow related to leasing 140625880.63 128383212.90
4) The analysis of the maturity period of lease liabilities and corresponding liquidity risk Management are detailed
in Note (II) under XI. "Risks Related to Financial Instruments".
(2) The Company as lessor
1) Operating leases
(i) Lease income
Current period Preceding period
Item
cumulative comparative
Lease income 24978526.03 23799395.61
(ii) Operating lease assets
Item Closing balance Opening balance
Fixed assets 36465996.45 10845503.63
Investment property 117273455.37 122158556.01
Subtotal 153739451.82 133004059.64
Fixed assets under operating leases are detailed in Note 15 of (I) under VII. "Notes to the Consolidated Financial
Statements Items".(iii) the amount of undiscounted lease receipts in the future from an irrevocable lease under the lease contract with
the lessee
Remaining period Closing balance Opening balance
Within 1 year 18883203.89 17223063.97
More than 1 year 111517578.57 110837023.47
Total 130400782.46 128060087.44
2) Finance lease
237Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(i) Current profits and losses related to finance lease
Current period Preceding period
Item
cumulative comparative
Financing income from net leasing investment 102390.60 84672.00
(ii) Reconciliation table of undiscounted lease receipts and net leasing investment
Item Closing balance Opening balance
Undiscounted lease receipts 447450.84 401632.86
less: unrealized financing gains related to lease receipts 3685.91 4002.95
Net leasing investment 443764.93 397629.91
(iii) the amount of undiscounted lease receipts in the future from an irrevocable lease under the lease contract with
the lessee
Remaining period Closing balance Opening balance
Within 1 year 108310.38 98061.60
1-2 years 109439.20 78321.04
2-3 years 109439.20 78321.04
3-4 years 101020.80 78321.04
4-5 years 19241.26 68608.14
Total 447450.84 401632.86
8. Changes in the scope of consolidations
(I) Consolidations of businesses not under common control
1. Consolidations of businesses not under common control in the period
(1) General information
Acquisition Acquisition Acquisition Date of
Target entity
point of time Cost method purchase
Workwear and
labor protection
equipment-
September 25 Agreement September 25
related asset 127498351.89
2023 transfer 2023
group purchased
by Scruffs
Workwear Ltd
(Continued)
238Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Cash flow of target entity from date of
Net profits
Revenues of purchase to end of period
Basis of of target
target entity Cash
recognizing entity from Cash inflows
Target entity from date of inflows Cash inflows
date of date of from
purchase to from from financing
purchase purchase to operating
end of period investing activities
end of period activities
activities
Workwear and
labor protection
equipment-
related asset Transfer of - -
32150809.22140146091.10
group control 1132059.10 24035583.04
purchased by
Scruffs
Workwear Ltd
2. Consolidation costs and goodwill
(1) Detailed information
Workwear and labor protection equipment-
Item related asset group purchased by Scruffs
Workwear Ltd
Consolidation costs
Cash 127498351.89
Total consolidation costs 127498351.89
Less: Share in fair value of identifiable net assets obtained 103112529.66
Goodwill 24385822.23
(2) Notes on methods for determining the fair value of consolidation costs contingent considerations and their
changes
3. Identifiable assets and liabilities of target entities on dates of purchase
(1) Detailed information
Workwear and labor protection equipment-related asset group
purchased by Scruffs Workwear Ltd
Item
Date of purchase Date of purchase
Fair value Book value
Assets
Inventories 55952873.55 55952873.55
Intangible assets 100839127.00
Liabilities
Payables 29982276.04 29982276.04
Deferred tax liability 23697194.85
Net assets 103112529.66 25970597.51
239Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Workwear and labor protection equipment-related asset group
purchased by Scruffs Workwear Ltd
Item
Date of purchase Date of purchase
Fair value Book value
Less: Non-controlling interests
Acquired net assets 103112529.66 25970597.51
(2) Method for determining the fair value of identifiable assets and liabilities
Determined with reference to the fair value of each of identifiable assets and liabilities after being appraised by an
asset appraisal agency in an asset-based method.(II) Changes in the scope of consolidation due to other reasons
1. Increase of the scope of consolidation
Method of
Date of equity Proportion of
Company name equity Contribution
acquisition contribution
acquisition
GreatStar Tools Germany
Established April 13 2023 EUR 25000.00 100.00%
GmbH
GreatStar United
Established June 12 2023 GBP 55000200.00 100.00%
Kingdom Ltd
Scruffs Workwear Ltd Established August 7 2023 GBP 100.00 100.00%
Lista Eastern Europe
Established October 18 2023 Czech Krone 3 million 100.00%
spol. s.r.o
Changzhou Huada Kejie No contributions made
Opto-Electro Instrument Established October 20 2023 as of December 31 100.00%
Co. Ltd (HDKJ) 2023
2. Decrease of the scope of consolidation
From the beginning
Method of
Point of time of equity Net assets at the date of the period until
Company name equity
disposal of disposal the date of disposal
disposal
Net profit
Geelong Sales
(Macau Commercial) Cancelled May 9 2023 57874309.08 2387724.46
Limited
Guangdong Shiwanke
Electrical Appliance Cancelled July 26 2023 6605345.92 1176240.13
Co. Ltd.Shenzhen Workpro
Cancelled June 29 2023 -3414.52 5215.08
Technology Co. Ltd.Newland. LLC Cancelled June 28 2023 1034009.91 2043398.90
IX. Interests in other entities
1. Equity in subsidiaries
(I) Composition of the business group
1. The Company incorporated 92 subsidiaries including Zhejiang GreatStar Tools Co. Ltd into the consolidated
financial statements.
240Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
(2) General information on major subsidiaries
Principal Holding proportion
operating (%)
Registered Nature of Method of
Subsidiary location and
capital business acquisition
registration Direct Indirect
place
Zhejiang Haining
RMB 464.80
GreatStar Zhejiang Manufacturing 100.00 Established
million
Tools Co. Ltd. province
2. Transactions where the controlling interests in subsidiaries are maintained even after the share of owner's
equity changes
1. Notes on changes in the share of owner's equity in subsidiaries
Holding proportion Holding proportion after
Subsidiary Date of change
before change change
Hangzhou Lianhe Electric
September 2023 83.714% 100.00%
Manufacturing Co. Ltd.Hangzhou Liansheng
Tools Manufacturing Co. August 2023 72.00% 100.00%
Ltd.Hangzhou Ole-Systems
August 2023 48.00% 51.00%
Co. Ltd.Yiyang Tools
May 2023 91.915% 100.00%
Manufacturing Co. Ltd
Longyou Hugong Forging
May 2023 82.00% 100.00%
Three Tools Co. Ltd
2. Impact of transactions on non-controlling shareholders' equity and owner's equity attributable to the parent
Company
Hangzhou Lianhe
Hangzhou Liansheng
Electric Hangzhou Ole-
Item Tools Manufacturing
Manufacturing Co. Systems Co. Ltd.Co. Ltd.Ltd.Purchase cost
Cash 12818462.70 5056837.80 800000.00
Total purchase cost 12818462.70 5056837.80 800000.00
Less: Share of net assets of
subsidiaries calculated based on the 18572671.67 5120999.99 -1099591.38
proportion of equity acquired
Difference -5754208.97 -64162.19 1899591.38
Including: Adjustment to the
5754208.9764162.19-1899591.38
capital reserve
Adjustment to the surplus reserve
Adjustment to the undistributed
profits
(Continued)
241Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Yiyang Tools Manufacturing Longyou Hugong Forging
Item
Co. Ltd Three Tools Co. Ltd
Purchase cost
Cash 6902524.49 20097475.51
Total purchase cost 6902524.49 20097475.51
Less: Share of net assets of subsidiaries
calculated based on the proportion of equity 4182368.03 27111171.13
acquired
Difference 2720156.46 -7013695.62
Including: Adjustment to the capital reserve -2720156.46 7013695.62
Adjustment to the surplus reserve
Adjustment to the undistributed profits
3. Equity in joint ventures
1. Major joint ventures
(1) General information
Holding Accounting treatment
Principal
Name of joint Place of Nature of proportion (%) method
business
venture registration business Direct Indirect applied to investment in
location
the joint venture
Hangzhou
Hangzhou Hangzhou
Zhongce Haichao
Zhejiang Zhejiang
Enterprise Service 27.8571 Equity method accounting
Province Province
Management Co.Hangzhou Hangzhou
Ltd.Hangzhou Hangzhou
Zhejiang Hangcha Zhejiang Zhejiang
Manufacturing 20.00 Equity method accounting
Holding Co. Ltd Province Province
Hangzhou Hangzhou
Hangzhou Hangzhou
Zhejiang Guozi Zhejiang Zhejiang
Manufacturing 18.76 Equity method accounting
Robotics Co. Ltd. Province Province
Hangzhou Hangzhou
Ningbo Ningbo
Ningbo Donghai Hangzhou Hangzhou
Finance 19.00 Equity method accounting
Bank Co. Ltd. Zhejiang Zhejiang
Province Province
Changzhou Changzhou
Changzhou City City
Stabila Laser Jiangsu Jiangsu 31.85
Manufacturing Equity method accounting
Instrument Province Province [Note]
Company Limited Jiangsu Jiangsu
Province Province
Hangzhou Weina Hangzhou Hangzhou
Technologies Co. Zhejiang Zhejiang Manufacturing 32.53 Equity method accounting
Ltd. Province Province
242Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Hangzhou Hangzhou
[Note] the Company holds a 31.85% equity interest in Changzhou Stabila Laser Instrument Company Limited
through Changzhou Huada Kejie Opto-Electronic Instruments Co. Ltd; on June 2023 Changzhou Huada Kejie
Opto-Electronic Instruments Co. Ltd transferred its 40% equity interest in Shanghai Lainuo Optoelectronics
Technology Co. Ltd which is no longer a joint venture of the Company
(2) Basis for the ability to impose significant influence while holding a voting right of less than 20%
The Company holds 19.00% equity in Ningbo Donghai Bank Co. Ltd. and 18.76% equity of Zhejiang Guozi
Robotics Co. Ltd. The Company has representatives on these two company's boards of directors who have the
power to participate in decision-making regarding its financial and operational policies.
2. Key financial information of significant joint ventures
Closing balance/current period balance Opening balance/balance in the same
(in ten thousand yuan) period of the previous year (in ten
thousand yuan)
Hangzhou
Hangzhou
Item Zhongce
Zhongce Haichao
Zhejiang Hangcha Zhejiang Hangcha Haichao
Enterprise
Holding Co. Ltd Holding Co. Ltd Enterprise
Management Co.Management
Ltd.Co. Ltd.Current assets 968562.05 1855834.93 827744.11 1830890.82
Non-current assets 514443.03 2323629.66 413129.27 2207297.75
Total assets 1483005.08 4179464.59 1240873.38 4038188.57
Current liabilities 451672.29 2092263.42 374026.60 2127236.37
Non-current liabilities 22228.12 554730.87 115335.16 614652.99
Total liabilities 473900.41 2646994.29 489361.76 2741889.36
Non-controlling
583339.75932838.10407066.59798172.02
interest
Owners' equity
attributable to the 425764.92 599632.19 344445.03 498127.20
parent Company
Share of net assets
calculated based on the 85152.98 167040.14 68889.00 138763.79
holding proportion
Adjustments
Difference between fair
10897.9710897.97
value and book value
Book value of equity
investment in 96050.95 167040.14 79786.97 138763.79
associated enterprises
Fair value of equity
investments in
associated enterprises
with publicly quoted
prices
Operating income 1627541.52 3525225.46 1441624.45 3188885.32
243Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Net profit 180723.23 242747.40 111075.28 102303.93
Net profits of
discontinued operations
Other comprehensive
1380.0615236.051824.2224718.29
income
Total comprehensive
182103.29257983.45112899.50127022.22
income
Dividends from joint
ventures received in the 4000.00
period
3. Summary of financial information on insignificant joint ventures
Item Opening balance/balance
Closing balance/current in the same period of the
period previous year (in ten
(in ten thousand yuan) thousand yuan)
Joint ventures
Total book value of investment
31966.3635901.59
Total of following items calculated by based on the
holding proportion
Net profit
-5656.96607.12
Other comprehensive income
84.68-106.21
Total comprehensive income
-5572.28500.91
X. Government Grants
(I) Increase of government grants in the period
Item Increase amounts in grants during the period
Government grants related to assets 1120500.00
including: recognized in deferred income 1120500.00
Government grants related to income 33110021.82
including: recognized in other income 33110021.82
Total 34230521.82
(II) Projects involving government grants
Amount included
Increase amounts Amounts charged
in non-operating
Items presented in in grants during the to other gains for
Opening balance income for the
financial statements period the period
period
Deferred income 2264687.74 1120500.00 866795.25
244Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Amount included
Increase amounts Amounts charged
in non-operating
Items presented in in grants during the to other gains for
Opening balance income for the
financial statements period the period
period
Deferred income 100000.00
Subtotal 2364687.74 1120500.00 866795.25
(Continued)
Items presented in Costs offset Assets offset in Related to
Other changes Closing balance
financial statements in the period the period assets/income
Related to
Deferred income 2518392.49
assets
Related to
Deferred income 100000.00
income
Subtotal 100000.00 2518392.49
(III) Government grants included in current gains and losses:
Current period Preceding period
Item
cumulative comparative
Other government grants included in other income 33976817.07 50338037.85
Government grants for offsetting research and development
100000.00200000.00
expenses
Total 34076817.07 50538037.85
XI. Risks Related to Financial Instruments
The Company's objective for managing risks associated with financial instruments is to balance risk and return
minimize the negative impact of risks on the Company's operating results and maximize returns for shareholders
and other equity investors. According to the risk Management objective the Company has developed a basic risk
Management strategy to identify and analyze the various risks faced by the Company establish appropriate risk
tolerance thresholds and risk controls and monitor risks in a timely and reliable manner keeping them within
predefined limits.In its daily activities the Company faces various risks associated with financial instruments primarily including
credit liquidity and market risks. The Management has reviewed and approved policies for managing these risks
summarized below.(I) Credit risks
Credit risk refers the risk that one party to a financial instrument will cause a financial loss for the other party by
failing to discharge an obligation.
1. Credit risk Management practices
(1) Credit risk evaluation methods
The Company evaluates at each balance sheet date whether the credit risks of relevant financial instruments have
increased significantly since their initial recognition. When determining whether credit risks have increased
significantly since their initial recognition the Company considers reasonable and supported information that is
available without unnecessary extra cost or effort including qualitative and quantitative analyses based on historical
data external credit risk ratings and forward-looking information. The Company evaluates financial instruments
245Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
either individually or collectively under similar credit risk characteristics by comparing the risk of default occurring
at the balance sheet date with the risk of default at initial recognition to determine changes in the risk of default
over the expected life of the financial instrument.The Company considers that the credit risk of a financial instrument has increased significantly when one or more
of the following quantitative or qualitative criteria are triggered:
1) As the main quantitative criterion the probability of default in the remaining term on the balance sheet date has
increased by over a certain percentage compared to that in the initial recognition;
2) As the main qualitative criteria significant adverse changes appear in the operational or financial situation of
debtors or existing or anticipated changes in the technological market economic or legal environment would have
a significant adverse effect on debtors' ability to meet their obligations to the Company etc.
(2) Definition of default and credit-impaired assets
The Company defines a financial asset as in default when one or more of the following conditions are met which
are consistent with the definition of credit-impaired assets:
1) The debtor faces significant financial difficulty;
2) The debtor breaches contractual covenants binding on the debtor;
3) It is very likely that the debtor will enter bankruptcy or other financial reorganization;
4) the creditor of the debtor for economic or contractual reasons relating to the debtor's financial difficulty having
granted to the debtor a concession(s) that the creditor would not otherwise consider.
2. Measurement of expected credit losses
The key factors in the measurement of expected credit loss include the probability of default loss rate of default
and exposure to default risk. The Company develops a model of the probability of default loss rate of default and
exposure to default risk on the basis of quantitative analysis of historical data (e.g. counterparty rating guarantee
measures and collateral type payment method etc.) and forward-looking information.
3. Please refer to section VII (I)- 4 VII (I)-5 VII (I)-6 and VII (I)-7 under VII. "Notes to the Consolidated Financial
Statements Items for details on the reconciliation table of opening balance and closing balance of provision for
losses of financial instrument.
4. Exposure to credit risk and concentration of credit risk
The Company's credit risk is primarily attributable to monetary funds and receivables. In order to control such risks
the Company has taken the following measures.
(1) Monetary funds
The Company deposits its bank balances and other monetary funds in financial institutions with a relatively high
credit rating and therefore its credit risk is relatively low.
2. Receivables
The Company performs credit assessment on customers using credit settlement on a continuous basis. The Company
selects credible and well-reputed customers based on credit assessment result and conducts ongoing monitoring on
balance of receivables to avoid significant risks in bad debts.Since the Company's risk points of accounts receivable are distributed among multiple partners and clients as of
December 31 2023 the Company has certain concentration of credit risk and 52.69% (versus 37.03% on December
31 2022:) of the total accounts receivable was due from the five largest clients of the Company. The Company held
no collateral or other credit enhancement on balance of receivables.The maximum amount of exposure to credit risk of the Company is the carrying amount of each financial asset at
the balance sheet.(II) Liquidity risk
246Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations associated
with cash or other financial assets settlement. Liquidity risk is possibly attributable to failure in selling financial
assets at fair value on a timely basis or failure in collecting liabilities from counterparties of contracts or early
redemption of debts or failure in achieving estimated cash flows.In order to control such risk the Company comprehensively utilized financing tools such as notes settlement bank
borrowings etc. and adopts long-term and short-term financing methods to optimize financing structures and finally
maintains a balance between financing sustainability and flexibility. The Company has obtained credit limit from
several commercial banks to meet working capital requirements and expenditures.Financial liabilities classified based on remaining time period till maturity
Closing balance
Item Contract amount
More than 3
Book value not yet Within 1 year 1-3 year(s)
years
discounted
Bank
1979534301.732013990884.232013195731.04795153.19
borrowings
Held-for-
trading
3227726.233227726.233227726.23
financial
liabilities
Notes payable 18253448.48 18253448.48 18253448.48
Accounts
1567046072.541567046072.541567046072.54
payable
Other
37629238.6237629238.6237629238.62
payables
Lease
386353254.87408466278.75110352919.83126407678.23171705680.69
liabilities
Subtotal 3992044042.47 4048613648.85 3749705136.74 126407678.23 172500833.88
(Continued)
Opening balance
Item
Contract amount
Book value Within 1 year 1-3 year(s) More than 3 years
not yet discounted
Bank borrowings 2412596915.25 2479666840.77 1653566564.54 825295053.98 805222.25
Held-for-trading
financial 48413710.29 48413710.29 48413710.29
liabilities
Notes payable 21096540.03 21096540.03 21096540.03
Accounts payable 1366875268.71 1366875268.71 1366875268.71
Other payables 21198376.32 21198376.32 21198376.32
Lease liabilities 406588933.09 413037311.70 88436234.33 134252177.05 190348900.32
Subtotal 4276769743.69 4350288047.82 3199586694.22 959547231.03 191154122.57
(III) Market risk
247Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of financial
instruments due to changes in market price. Market risk mainly includes interest risk and foreign currency risk.
1. Interest risk
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of financial
instruments due to changes in market interest. The Company's fair value interest risks arise from fixed-rate financial
instruments while the cash flow interest risks arise from floating-rate financial instruments. The Company
determines the proportion of fixed-rate financial instruments and floating-rate financial instruments based on the
market environment and maintains a proper financial instruments portfolio through regular review and monitoring.The Company's interest risk in cash flows relates mainly to bank borrowings with floating interest rate.As of December 31 2023 balance of borrowings with interest accrued at floating interest rate totaled RMB
456526439.62 (December 31 2022: RMB 713120304.41). If interest rates had been 50 basis points higher/lower
and all other variables were held constant the Company's gross profit and equity will not be significantly affected.
2. Foreign currency risk
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial instrument
resulted from changes in exchange rate. The Company's foreign currency risk relates mainly to foreign currency
monetary funds and liabilities. When short-term imbalance occurred to foreign currency assets and liabilities the
Company may trade foreign currency at market exchange rates when necessary to maintain the net risk exposure
within an acceptable level.XII. Fair Value Disclosure
(I) Detailed information on fair value of assets and liabilities measured at fair value at the balance sheet date
Fair value as of the balance sheet date
Level 1 fair Level 2 fair
Item Level 3 fair
value value
value Total
measurement measurement
measurement
Continuing fair value measurement
1. Financial assets for trading 122650783.01 122650783.01
Financial assets measured at fair
value and the changes thereof are 122650783.01 122650783.01
included in current profits and losses
Bank financial products 108244251.49 108244251.49
Derivative financial assets 14406531.52 14406531.52
2. Receivables financing 266675016.64 266675016.64
3. Investment in other equity
16550000.0016550000.00
instruments
Total assets continuously measured
122650783.01283225016.64405875799.65
at fair value
4. Held-for-trading financial
3227726.233227726.23
liabilities
Derivative financial liabilities 3227726.23 3227726.23
Total liabilities measured at fair
3227726.233227726.23
value on a continuing basis
(II). Qualitative and quantitative information of valuation technique(s) and key input(s) for level 2 fair value at
recurring and non-recurring fair measurement
248Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Bank financial products derivative financial assets and derivative financial liabilities are measured using valuation
notices provided by banks and securities companies as a reasonable estimate of fair value .(III). Qualitative and quantitative information of valuation technique(s) and key input(s) for level 3 fair value at
recurring and non-recurring fair measurement
1. As receivables financing is within 1 year whose time value has no significant impact on the fair value it is
recognized that the fair value of receivables financing mentioned above is approximately equal to its carrying
amount.
2. Other equity instrument investments (Hangzhou Haibang Xinhu Talent Venture Capital Investment Partnership
(LP)) are measured using investment cost as a reasonable estimate of fair value
XIII. Related Party Relationships and Transactions
(I) Related parties
1. Information on Parent Company
(1) Parent Company
Holding Voting right
proportion proportion
Place of Nature of Registered
Parent Company over the over the
registration business capital
Company Company
(%)(%)
Industrial 100 million
GreatStar Holding Group Co. Ltd. Hangzhou 38.56 38.56
investment yuan
(2) The Company’s ultimate controlling party is Qiu Jianping.
2. The information on the Company's subsidiaries and joint ventures is detailed in IX. "Interests in other entities".
3. The information on the Company's other related parties
Other related parties Relationships with the Company
Hangzhou GreatStar Precision Machinery Co. Ltd Controlled by the same actual controller
Controlled by the Company's associate Zhejiang
Hangcha Group Co. Ltd. and its affiliated companies Hangcha Holding Co. Ltd. and under common control
by the actual controller
Controlled by the Company's associate Hangzhou
Zhongce Rubber Group Company Limited. and its
Zhongce Haichao Enterprise Management Co. Ltd.affiliated companies
and under common control by the actual controller
Zhou Siyuan Senior management member of the Company
(II) Related party transactions
1. Related party transactions for purchase and sale of goods rendering and acceptance of labor services
(1) Related party transactions for purchase of goods and acceptance of labor service
Preceding period
Related parties Content of transaction Current period cumulative
comparative
Zhongce Rubber Group
Tier products and
Company Limited. and its 44380282.86 57766301.68
maintenance costs
affiliated companies
Automatic library 26548672.57
249Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Preceding period
Related parties Content of transaction Current period cumulative
comparative
Hangcha Group Co. Ltd.Forklift spare parts and
and its affiliated 3743555.68 16577579.13
maintenance
companies
Zhejiang Guozi Robotics
Intelligent logistics robots
Co. Ltd and its affiliated 2258835.96 9276973.76
and services
companies
Changzhou Stabila Laser
Instrument Company Material 389429.96 95066.86
Limited
(2) Related party transactions for sales of goods and rendition of labor service
Current period Preceding period
Related parties Content of transaction
cumulative comparative
Laser measurement
1859443.118430267.36
product
Changzhou Stabila Laser
Instrument Company Consulting service fee 1297169.82 3476428.09
Limited
Utilities 148176.00 134416.80
Hand tools and spare parts 15643976.65 13943429.18
Hangcha Group Co. Ltd.and its affiliated Lidar sensors 2148008.87
companies
Operating service 1086566.24 2903893.36
Lidar sensors 5333946.90
Zhejiang Guozi Robotics
Co. Ltd and its affiliated Hand tools and spare parts 354282.65 11977029.04
companies
Maintenance costs 442.48
GreatStar Holding Group
Hand tools and spare parts 25432.22
Co. Ltd.Shanghai Lainuo
Optoelectronics Sale of goods 3010.31 3043.54
Technology Co. Ltd.Hangzhou GreatStar
Precision Machinery Co. Hand tools 1269.94 2807.12
Ltd
Zhejiang Hangcha
Hand tools 594.69
Holding Co. Ltd
2. Related party lease
(2) The Company as lessor
Lease income recognized
Lease income recognized
over the same period of
Lessees Types of assets leased for current period
the previous year
Lease income
Lease income
Changzhou Stabila Laser
Instrument Company Buildings 222264.00 201625.20
Limited
(2) The Company as lessee
250Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Current period cumulative
Simplified rental
Lease of recognized right-of-use assets
Types of expenses for short-
assets term lease and low- Paid rental (not
Lessor Increased
leased value asset lease and including variable
principal Recognized
variable lease lease payment not
amount interest
payment not adopted adopted in the
of lease expenses
in the measurement measurement of lease
liabilities
of lease liabilities liabilities)
Hangzhou GreatStar
Precision Machinery Buildings 1383389.91
Co. Ltd
Hangcha Group Co.Ltd's affiliated Company Transport
7244.20
Shanghai Hangcha equipment
Forklift Sales Co. Ltd
Hangcha Group Co.Ltd's affiliated Company Transport
Guangzhou Hangcha equipment
Forklift Leasing Co. Ltd
(Continued)
Preceding period comparative
Simplified rental
Lease of recognized right-of-use assets
expenses for short-
Types of
term lease and low- Paid rental (not
Lessor assets Increased
value asset lease and including variable
leased principal Recognized
variable lease lease payment not
amount interest
payment not adopted adopted in the
of lease expenses
in the measurement measurement of lease
liabilities
of lease liabilities liabilities)
Hangzhou GreatStar
Precision Machinery Buildings 1342542.86
Co. Ltd
Hangcha Group Co.Ltd's affiliated Company Transport
Shanghai Hangcha equipment
Forklift Sales Co. Ltd
Hangcha Group Co.Ltd's affiliated Company Transport
154024.82
Guangzhou Hangcha equipment
Forklift Leasing Co. Ltd
3. Assets transfer between related parties
In July 2023 according to the resolution of the shareholders' meeting of Hangzhou Ole-Systems Co. Ltd. Zhou
Siyuan was authorized to transfer the shares held by him equal to 2% equity of Hangzhou Ole-Systems Co. Ltd. at
the consideration of RMB 400000 to Changzhou Huada Kejie Opto-Electro Instrument Co. Ltd. The commercial
and industrial registration for the aforesaid transaction was completed in August 2023.
4. Key Management’s emoluments
251Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Item Current period cumulative Preceding period comparative
Key Management’s emoluments RMB 14.3663 million RMB 13.2279 million
(III) Balance due to or from related parties
1. Balance due from related parties
Closing balance Opening balance
Project Name Related parties Provision
Provision for
Book balance for bad Book balance
bad debts
debts
Zhejiang Guozi Robotics
Accounts
Co. Ltd and its affiliated 3206165.06 160308.25 19380071.99 1220477.10
receivable
companies
Changzhou Stabila Laser
Instrument Company 1832009.43 91600.47 2886966.26 144348.31
Limited
Shanghai Lainuo
Optoelectronics 3780753.57 3780753.57
Technology Co. Ltd.Hangcha Group Co. Ltd.and its affiliated 2133051.03 106652.55 2302883.58 115144.18
companies
Hangzhou GreatStar
Precision Machinery Co. 472.05 23.60
Ltd
Zhejiang Hangcha
672.0033.60672.0033.60
Holding Co. Ltd
Subtotal 7171897.52 358594.87 28351819.45 5260780.36
Notes Zhejiang Guozi Robotics
500000.002300000.00
receivable Co. Ltd.Subtotal 500000.00 2300000.00
Hangcha Group Co. Ltd.Advances paid and its affiliated 3352500.00 167625.00 37000.00 1850.00
companies
Subtotal 3352500.00 167625.00 37000.00 1850.00
Changzhou Stabila Laser
Other
Instrument Company 86250.78 4312.54 103556.95 5177.85
receivables
Limited
Subtotal 86250.78 4312.54 103556.95 5177.85
2. Balance due to related parties
Project Name Related parties Closing balance Opening balance
Accounts Hangcha Group Co. Ltd. and its affiliated
1339665.542557004.00
payable companies
Zhejiang Guozi Robotics Co. Ltd and its
5998323.141589938.36
affiliated companies
Zhongce Rubber Group Company
2808809.517567269.62
Limited. and its affiliated companies
252Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Project Name Related parties Closing balance Opening balance
Hangzhou GreatStar Precision Machinery
512360.9536500.00
Co. Ltd
Subtotal 10659159.14 11750711.98
Contract Zhejiang Guozi Robotics Co. Ltd and its
4227186.77
liabilities affiliated companies
Subtotal 4227186.77
Zhejiang Guozi Robotics Co. Ltd and its
Other payables 7285.00
affiliated companies
Subtotal 7285.00
XIV. Commitments and contingencies
1. Important commitments
Significant commitments on balance sheet date
As of the approved issuing date of this report the Company has no significant commitments to be disclosed.
2. Contingencies
(1) Important contingent matters as at the balance sheet date
As of the approved issuing date of this report the Company has no significant contingencies to be disclosed.
(2) If the Company has no important contingent matters to disclose a statement thereof shall be made
No significant contingent matters to be disclosed.XV. Events after the balance sheet date
1. Distribution of profits
Cash dividends proposed to be distributed for every 10
1
shares (RMB)
On April 24 2024 the Proposal on the Profit
distribution plan for 2023 was deliberated and adopted
at the 6th Meeting of the 6th Board of Directors of the
Company. The Company proposed that with a base of
1194478182 shares that is the Company's total share
capital of 1202501992 shares as of December 31
2023 less 8023810 shares held in the Company's
special securities account for repurchased shares a
Profit distribution plan cash dividend of RMB 1 (including tax) will be paid to
all shareholders for every 10 shares. The total amount
of cash dividends is estimated to be RMB
119447818.20. The remaining undistributed profits
are carried forward to the next year. No bonus shares
will be issued nor will the capital reserve be converted
into share capital. The above distribution plan is still
subject to consideration and approval by the
Company's general meeting.
253Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
XVI. Other significant matters
1. Segment information
1. Considerations for determining reporting segments
Reportable segments are identified according to the structure of the Company's internal organization Management
requirements and internal reporting system and based on product segments. The assets and liabilities shared with
different segments are allocated among segments proportionate to their respective sizes.
2. Financial information of reporting segments
Unit: ten thousand RMB
Power Tools and Laser
Item Hand Tools & Storage Other Total
Measurement
Operating
806615.08279915.876468.331092999.28
income
Operating
521873.48220449.643089.09745412.21
cost
Total assets 1576761.89 379890.49 11727.35 1968379.73
Total
387545.2276812.942764.42467122.58
liabilities
2. Other important transactions and matters that can affect investor decision - making
On December 18 2023 the third session of the Company's 5th Board of Directors meeting deliberated and passed
the Proposal on Acquisition of TESA Group Assets agreeing that the Company would purchase all TESA Group
assets held by Hexagon Smart Solutions AB in cash including the 100% equity of TESA Precision Measurement
Instruments Sarl and related assets of Chinese American and French companies in a transaction price not more
than 40 million euros. As of December 31 2023 the relevant asset acquisition matters have not been completed yet.XVII. Notes to the Principal Items in the Financial Statements of the Parent Company
(I) Notes to the balance sheet Items of the parent Company
1. Accounts receivables
(1) Information on ageing
Opening book
Ageing Closing book balance
balance
Within 1 year 1694000248.98 1129025055.05
1-2 years 19461035.02 15584716.05
2-3 years 12778077.46 4726442.38
3-4 years 2436939.79 3922817.49
4-5 years 3600.00 2354257.02
More than 5 years 92426.99 4694396.09
Total 1728772328.24 1160307684.08
(2) Provision for bad debts
1) Detailed information in category
254Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Closing balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision for Individual bad
debt
Provision made on a
1728772328.24100.0090027040.375.211638745287.87
portfolio basis
Total 1728772328.24 100.00 90027040.37 5.21 1638745287.87
(Continued)
Opening balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision for Individual bad
debt
Provision made on a
1160307684.08100.0066003382.685.691094304301.40
portfolio basis
Total 1160307684.08 100.00 66003382.68 5.69 1094304301.40
2) Accounts receivable with bad debt provision by ageing combination
Closing balance
Ageing
Book balance Provision for bad debts Percentage of Provision (%)
Within 1 year 1694000248.98 84700012.44 5.00
1-2 years 19461035.02 1946103.51 10.00
2-3 years 12778077.46 2555615.50 20.00
3-4 years 2436939.79 731081.93 30.00
4-5 years 3600.00 1800.00 50.00
More than 5 years 92426.99 92426.99 100.00
Subtotal 1728772328.24 90027040.37 5.21
(3) Change of provision for bad debts
255Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Amount of change during the period
Opening Closing
Item
balance Make Recovery or balance
Write-offs Other
provision reversal
Provision for
Individual bad
debt
Provision made
on a portfolio 66003382.68 24119346.19 95688.50 90027040.37
basis
Total 66003382.68 24119346.19 95688.50 90027040.37
(4) Top five accounts receivable and contract assets
The aggregate amount of top five accounts receivable at the end of the period was RMB 1289472377.70
accounting for 74.59% of the aggregate amount of accounts receivable and contractual assets at the end of the period
and the aggregate amount of corresponding provision for bad debts was RMB 64473618.89
2 Other receivables
(1) Classification by nature
Nature of payment Closing book balance Opening book balance
Accounts receivable from related parties within the scope of
1510290450.292841560502.29
the consolidation
Export tax refund receivable 21753209.85 15408984.91
Deposit Guarantee 6855020.74 7280560.36
Temporary payments receivable 1354256.48 1762196.83
Employee reserves 107575.00 178008.90
Total 1540360512.36 2866190253.29
(2) Information on ageing
Ageing Closing book balance Opening book balance
Within 1 year 1508399514.57 2835493076.60
1-2 years 1809061.25 1124531.56
2-3 years 1005531.25 1317279.20
3-4 years 1068525.00 6345509.32
4-5 years 6214209.32 816868.00
More than 5 years 21863670.97 21092988.61
Subtotal 1540360512.36 2866190253.29
(3) Provision for bad debts
256Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
1) Detailed information in category
Closing balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision for Individual
bad debt
Provision made on a
1540360512.36100.0094361195.066.131445999317.30
portfolio basis
Total 1540360512.36 100.00 94361195.06 6.13 1445999317.30
(Continued)
Opening balance
Book balance Provision for bad debts
Type
Make
Book value
Percentage provision
Amount Amount
(%) Percentage
(%)
Provision for Individual
bad debt
Provision made on a
2866190253.29100.00110289899.693.852755900353.60
portfolio basis
Total 2866190253.29 100.00 110289899.69 3.85 2755900353.60
2) Other receivables with bad debt provision by combination
Closing balance
Name of combination
Provision for bad Percentage of
Book balance
debts Provision (%)
Portfolio of receivables from
related parties within the
1510290450.2990687305.486.00
consolidation scope
Ageing combination 30070062.07 3673889.58 12.22
Including: within 1 year 26359402.49 1317970.13 5.00
1-2 years 1068061.25 106806.12 10.00
2-3 years 145500.00 29100.00 20.00
3-4 years 161550.00 48465.00 30.00
4-5 years 328000.00 164000.00 50.00
More than 5 years 2007548.33 2007548.33 100.00
257Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Subtotal 1540360512.36 94361195.06 6.13
4) Change of provision for bad debts
(i) Detailed information
Phase I Phase II Phase III
Expected credit
Expected credit
Item Next 12 months losses for the Subtotal
losses for the entire
Expected credit entire duration
duration (no credit
losses (credit impairment
impairment)
occurred)
Opening balance 86508915.28 112453.16 23668531.25 110289899.69
Opening balance
——————
during the period
-- Transferred to
-90453.0690453.06
Phase II
--Transferred to
-100553.13100553.13
Phase III
-- Reversed to Phase
II
-- Reversed to Phase I
Provision during the
-17730612.6678553.031723355.00-15928704.63
period
Recovery or reversal
during the period
Write-offs during the
period
Other changes
Closing balance 68687849.56 180906.12 25492439.38 94361195.06
Percentage of
Provision for bad 4.55 10.00 84.55 6.13
debts at end of period
The basis for phase division: a period of less than one year represents that the credit risk failed to increase
significantly after initial recognition (Phase I); a period of 1-2 years represents that the credit risk increased
significantly after initial recognition (Phase II) but did not result in credit impairment; a period of over 2 years
represents that credit impairment occurred after initial recognition (Phase III).
(5) Top five other receivables
Percentage of Provision for bad
Nature of Closing book
Unit name Ageing balance of other debts at end of
payment balance
receivables (%) period
Receivables
from related
GreatStar Tools parties Within 1
701078592.1745.5135053929.61
USA Inc. within the year
consolidation
scope
Hong Kong Receivables Within 1
235977382.8515.325066742.97
GreatStar from related year
258Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
International Co. parties
Ltd within the
consolidation
scope
Receivables
Geelong Sales from related
Company parties Within 1
205398300.0013.3310269915.00
International (HK) within the year
Limited consolidation
scope
Receivables
Haining GreatStar from related
Intelligent parties Within 1
166000000.0010.788300000.00
Equipment Co. within the year
Ltd. consolidation
scope
Receivables
from related
Hangzhou Ole- parties Within 1
48600672.233.162430033.61
Systems Co. Ltd. within the year
consolidation
scope
Subtotal 1357054947.25 88.10 61120621.19
3. Long-term equity investments
(1) Detailed information
Closing balance Opening balance
Provision Provision
for for
Item
Impairme Book value Impairme
Book balance Book balance Book value
nt nt
Individual Individual
bad debt bad debt
Investmen
t in 4756287881. 4105047447. 4105047447.
4756287881.
subsidiarie 67 89 89
67
s
Investmen
2946810062.2946810062.2541550254.2541550254.
t in joint
51511717
ventures
7703097944.7703097944.6646597702.6646597702.
Total
18180606
(2) Investment in subsidiaries
Opening balance Increase and decrease during the period Closing balance
Additional
Provisio
Provisio investment Decrease Provisio
Invested units n for
Book value n for s in Oth Book value n for
accrual
Impair in investmen er Impair
impair
ment investment ts ment
ment
s
259Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Individu Individu
al bad al bad
debt debt
Changzhou
Huada Kejie
200864082200864082
Opto-Electro.56.56
Instrument
Co. Ltd.Guangdong
Shiwanke
50000000.5000000
Electrical
000.00
Appliance
Co. Ltd.Haining
GreatStar
2000000.02000000.0
Hardware
00
Tools Co.Ltd.Hangzhou
GreatStar
Electrical
Tools Co.Ltd.Hangzhou
GreatStar
4250000.04250000.0
Craftsman
00
Tools Co.Ltd.Hangzhou
GreatStar 63772246. 63772246.Tools Co. 86 86
Ltd.Hangzhou
GreatStar
3406500.03406500.0
Hardware
00
Tools Co.Ltd.Hangzhou
GreatStar
5000000.05000000.0
Sheffield
00
Trading Co.Ltd.Hangzhou
GreatStar
22000000.20000002000000.0
Intelligent
000.000
Technology
Co. Ltd.Hangzhou
120000000120000000
United Tools.00.00
Co. Ltd.Hangzhou
Lianhe
21185561.1281846234004024.
Electric
86.7056
Manufacturin
g Co. Ltd.
260Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Hangzhou
Lianhe Tools 12804728. 12804728.Manufacturin 00 00
g Co. Ltd.Lista Holding
AG
Hangzhou
Liansheng
10030288.5056837.15087126.
Tools
268006
Manufacturin
g Co. Ltd.Hangzhou
9600000.09600000.0
Ole-Systems
00
Co. Ltd.Longyou
Hugong
10461215327000000131612153
Forging.88.00.88
Three Tools
Co. Ltd
Yiyang Tools
48437846.330500045132846.
Manufacturin
12.0012
g Co. Ltd
Ningbo
Fenghua
22558141.22558141.
GreatStar
6565
Tools Co.Ltd.PREXISO
Laser
Measurement 3920000.0 3920000.0
Tool 0 0
(Hangzhou)
Co. Ltd
Suzhou
Xindadi
60000000.60000000.
Hardware
0000
Product Co.Ltd
Zhejiang
25750000.25750000.
Guoxin Tools
0000
Co. Ltd.Zhejiang
GreatStar 464800000 464800000
Tools Co. .00 .00
Ltd.Zhejiang
Shiwanke
10000000.4000000050000000.
Electrical
00.0000
Appliance
Co. Ltd.Geelong(Thai
land) Co. Ltd
GreatStar
955660000955660000
Tools USA.00.00
Inc
261Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
GreatStar 794984104 794984104
Europe AG .04 .04
GreatStar
Industrial 110499800 12618826 236688062
Vietnam Co. .00 2.90 .90
Ltd
Hong Kong
GreatStar 978911994 978911994
International .66 .66
Co. Ltd.GREATSTA
R UNITED 51348187 513481870
KINGDOM 0.38 .38
LTD
4105047472454543733050047562878
Subtotal
47.893.780.0081.67
(3) Investment in joint ventures
Opening balance Increase and decrease during the period
Gains and Adjustment to
Provision
Invested losses on other
for Decrease
units Additional investments comprehensive
Book value Impairment in
investments recognized income
Individual investments
under the comprehensive
bad debt
equity method income
Joint
ventures
Hangzhou
Zhongce
Haichao
1387637932.17259947378.3817435798.12
Enterprise
Management
Co. Ltd.Zhejiang
Hangcha
797869729.35138739441.512817986.16
Holding Co.Ltd
Zhejiang
Guozi
62379261.25-72548870.44-101852.77
Robotics Co.Ltd.Ningbo
Donghai
201743081.348680923.63948892.18
Bank Co.Ltd.Hangzhou
Weina
91920250.068445616.11-278.23
Technologies
Co. Ltd.Total 2541550254.17 343264489.19 21100545.46
(Continued)
262Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Increase and decrease during the period Closing balance
Declaration of
Invested units Provision Provision
Other changes in issuing cash
for accrual Other Book value for
equity dividends or
impairment impairment
profits
Joint ventures
Hangzhou
Zhongce
Haichao
5380273.501670401382.17
Enterprise
Management
Co. Ltd.Zhejiang
Hangcha
21082359.51960509516.53
Holding Co.Ltd
Zhejiang
Guozi
14432140.684160678.72
Robotics Co.Ltd.Ningbo
Donghai Bank 211372897.15
Co. Ltd.Hangzhou
Weina
100365587.94
Technologies
Co. Ltd.Total 40894773.69 2946810062.51
(II) Notes to the income statement items of the parent Company
1. Operating revenues / operating costs
(1) Detailed information
Current period cumulative Preceding period comparative
Item
Revenue Cost Revenue Cost
Main business
5058479654.253766003062.814800335671.963904877757.04
income
Other income 42101660.04 26524120.66 23591822.09 12108053.03
Total 5100581314.29 3792527183.47 4823927494.05 3916985810.07
including: revenue
generated from the
5084611479.373787642082.834818508234.873915359557.23
contracts with the
clients
(2) The revenue is broken down by the time of transfer of goods or service
263Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Current period Preceding period
Item
cumulative comparative
Revenue is recognized at a point in time 5084611479.37 4818508234.87
Subtotal 5084611479.37 4818508234.87
(3) The revenue recognized in the period and included in the opening book value of contractual liabilities is RMB
43237007.23.
2. Investment income
Current period Preceding period
Item
cumulative comparative
Income from long-term equity investments recognized under
343264489.19185125266.05
the equity method
Income from long-term equity investments accounted for
137938460.0022750000.00
under the cost method
Investment income from disposal of long-term equity
6573183.33-3000600.68
investments
Discounting loss on receivables financing -17897921.26 -7931415.18
Investment income from disposal of held-for-trading
-23882353.453455425.60
financial assets
Including: derivative financial instruments -23882353.45 3455425.60
Dividend income from investments in other equity
12400000.00
instruments during the holding period
Total 445995857.81 212798675.79
XVIII. Supplementary Information
1. Current non-recurring profit and loss statement
□√ Applicable □ Not Applicable
Unit: RMB
Item Amount Note
Profit or loss from disposal of non-
1655224.56
current assets
Government grants included in
profit or loss (excluding those
closely related to operating
activities of the Company and
30311586.83
granted constantly affecting the
Company's gains or losses in
accordance with certain standards
based on state policies)
Profits or losses from changes in
fair value of value and disposal of
financial assets and liabilities held
-34667995.27
by non-financial enterprises
excluding those arising from
hedging business related to the
264Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Company's normal operating
activities
Profit or loss on entrusted
1915298.69
investment or management of assets
Reversal of impairment provision
for accounts receivable subject to 96458.50
separate impairment testing
Other non-operating revenue or
-3873470.17
expenditures
Less: Effect of income tax -1142001.28
Non-controlling interest affected
2457334.74
(after tax)
Total -5878230.32 --
Details of gain or loss items that fall into the category of non-recurring gains and losses:
□ Applicable √ Not Applicable
The Company has no other gain or loss items that fall into the category of non-recurring gains and losses.Notes for the situation that the non-recurring gain or loss items as illustrated in the Explanatory Announcement No.1
on Information Disclosure for Companies Offering Their Securities to the Public – Non-recurring Profits or losses
are defined as recurring profits or losses
□ Applicable √ Not Applicable
2. Return on equity and earnings per share
Earnings per share (RMB/ share)
Profit for the reporting
Weighted average ROE Basic earnings per share Diluted earnings per share
period
(RMB/share) (RMB/share)
Net profit attributable to
ordinary shareholders of 11.89% 1.4162 1.4162
the Company
Net profit attributable to
ordinary shareholders of
the Company after 11.93% 1.4211 1.4211
deduction of non-
recurring gains and losses
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets in financial reports disclosed simultaneously under IAS and under
PRC GAAP
□ Applicable √ Not Applicable
(2) Differences in net profit and net assets between financial reports disclosed in accordance with foreign
accounting standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable √ Not Applicable
(3) Explanation of the reasons for differences in accounting data under domestic and foreign accounting
standards and the name of the foreign institution should be indicated if the data that has been audited by
the foreign auditor has been reconciled for differences
4. Others
The impacts caused by implementation of the Explanatory Announcement No.1 on Information Disclosure for
Companies Offering Their Securities to the Public – Non-recurring Profits or losses (revised in 2023) on recurring
profits or losses for 2022
265Full text of Hangzhou Great Star Industrial Co. Ltd. 2023 Annual Report
Item Amount
Net non-recurring gains and losses for 2022 attributable to the parent Company
-34824547.27
owners
Net non-recurring gains and losses for 2022 attributable to the parent Company
owners as calculated according to the requirements of the Explanatory
-35095904.08
Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public – Non-recurring Profits or losses (revised in 2023)
Difference 271356.81
266
