2022 Annual Report
Stock Code: 600570 Stock Abbreviation: Hundsun Technologies
Hundsun Technologies Inc.
2022 Annual Report
1 / 2442022 Annual Report
Important Notice
I. The Board and the Supervisory Committee of the Company and the Directors Supervisors and
members of the Senior Management warrant the truthfulness accuracy and completeness of
the contents in this Annual Report and confirm that there are no misrepresentations or
misleading statements contained in or material omissions from this Annual Report and accept
several and joint legal responsibilities.II. All Directors attended the board meeting of the Company to consider and approve the annual
results.III. Pan-China Certified Public Accountants LLP has issued a standard unqualified auditor’s
report for the Company.IV. Liu Shufeng chairman of the Company and Yao Manying Financial Controller and Head of
the Accounting Firm (person in charge of accounting) warrant the truthfulness accuracy and
completeness of the financial statements contained herein.V. Profit distribution plan or capital reserves share capitalization plan during the Reporting
Period upon deliberation at the board meeting.Hundsun Technologies Inc. (hereinafter referred to as "the Company") realized a total net profit (for
the parent company) of RMB1030126214.29 (in RMB the same as below) in 2022. According to the
Company Law the Articles of Association of the Company and the relevant guidelines of the China
Securities Regulatory Commission and the Shanghai Stock Exchange 10% of the statutory reserve fund
shall be withdrawn first plus the profit carry-over from the previous year. According to the actual situation
the Company plans to implement the profit distribution plan in the following order:
1. The Company will withdraw 10% of the statutory reserve fund of RMB103012621.43.
2. The Company will distribute a cash dividend of RMB1.30 (including tax) for every 10 shares
to all shareholders based on 1898681845 shares being 1900006442 shares outstanding less
1324597 shares in the special repurchase account of the Company totaling
RMB246828639.85.
3. The remaining distributable profits will be carried forward to the next year.
If during the period between the disclosure of this profit distribution plan and the record date for
dividend distribution the Company's share capital involved in the profit distribution changes due to
relevant matters the Company plans to maintain the same proportion of profit distribution per share adjust
the total amount of distribution accordingly and announce the details about adjustment separately.
2 / 2442022 Annual Report
VI. Disclaimer of forward-looking statements
√Applicable □Not Applicable
The Company's future strategies and plans contained herein do not constitute substantive
commitments to investors by the Company. Investors and stakeholders should be adequately aware of
risks herein and understand the differences among plans forecasts and commitments.VII. Whether the Controlling Shareholder of the Company or other associates has misappropriated
the Company's funds for purposes other than for business?
No
VIII. Whether the Company has provided external guarantees in violation of any prescribed
decision-making procedures?
No
IX. Whether more than half of the Directors fail to warrant the truthfulness accuracy and
completeness of the contents contained in the annual report disclosed by the Company?
No
X. Reminder of important risks
None
XI. Miscellaneous
□Applicable √Not Applicable
Note:This document is a translated version of the Chinese version 2022 Annual Report (“2022 年年度报告”) and the published announcements in the Chinese version shall prevail. The complete published
Chinese 2022 Annual Report may be obtained at www.sse.com.cn/
3 / 2442022 Annual Report
Contents
Section I Definitions ............................... 5
Section II Company Profile and Key Financial Indic... 6
Section III Management Discussion and Analysis ...... 9
Section IV Corporate Governance .................... 40
Section V Environmental and Social Responsibility .. 57
Section VI Significant Events ...................... 60
Section VII Changes in Shares and Particulars of S.. 68
Section VIII Preferred Shares ...................... 73
Section IX Corporate Bonds ......................... 74
Section X Financial Report ......................... 74
I. Accounting statements signed and sealed by the Chairman Financial Controller and Head of
the Finance Department (person in charge of accounting) of the Company
Documents for II. The original Auditor’s Report sealed by Pan-China Certified Public Accountants LLP and
Inspection sealed and signed by Pan-China's CPAs
III. Originals of all documents and announcements of the Company publicly disclosed in the
newspaper designated by CSRC during the Reporting Period
4 / 2442022 Annual Report
Section I Definitions
I. Definitions
Unless the context otherwise requires the following terms shall have the following meanings in this
report:
Definitions of frequently-used terms
Hundsun means Hundsun Technologies Inc.Hundsun
Technologies or
the Company
Hundsun Group means Hangzhou Hundsun Electronics Group Co. Ltd.UF3.0 means Core Business Operation Platform System Version 3.0 built based on a new
generation of distributed microservice technology base which can realize
accounts funds securities trading credit trading options trading financial
products sales clearing inquiry and other core businesses of brokers.O45 means Investment and trading system built based on a new generation of distributed
microservice technology base of which O refers to OMS and 45 refers to version
4.5
TA system means Transfer Agent Hundsun’s fund registration and transfer system software used
for investor account management in the asset management industry including
funds securities insurance futures and private equity.Light technology means LIGHT a financial digital infrastructure independently developed by Hundsun
platform and a new generation of IT application innovation infrastructure which provides
10 core technical capabilities for the digital transformation of financial business
can meet the demands of the financial industry for cloud-native high-
performance and digital intelligence technologies improve the development
efficiency and operational stability of financial business and enable the rapid
innovation of financial business
AI means Artificial Intelligence abbreviated as AI.LTC means a management process that continuously optimizes customer-focused operations
and management to improve overall operation targets.IPD means Integrated Product Development which is the concept and method for effective
management of product development by integrating various best practices in
product development
CRM means Customer Relationship Management
SAAS means Software-as-a-Service i.e. providing software services over the network
PAAS means Abbreviation of Platform as a Service which means platform as a service
JRES means JRES which provides the underlying technical support operation environment
necessary for business development including JRESPlus-UI (view component)
and JRESPlus-MVC is compatible with mainstream microservice development
specifications and provides enterprise-level microservice operation support and
service governance platform
LDP means LDP a new generation of low-latency distributed and high-availability
technology platform of Hundsun which provides products and solutions such as
rapid trading rapid market quotations and rapid risk control for brokerage
business institutional services asset management and self-operated market-
making of financial institutions thus helping the development of high-
performance scenarios
OBP means Offering Business Plans [or OBPs] namely Annual Business Plan of Product
Package which is developed by the product management team and submitted to
IPMT as a basis for making investment decisions
PB2.0 means A set of products including investment service management system software
investment advisory service platform software overseas institutional investment
service system software institutional agreement transaction service platform
software and OTC derivatives business management system software
5 / 2442022 Annual Report
Section II Company Profile and Key Financial Indicators
I. Company Information
Chinese name of the Company 恒生电子股份有限公司.Chinese abbreviation 恒生电子
English name of the Company Hundsun Technologies Inc.English abbreviation Hundsun
Legal representative of the Company Liu Shufeng
II. Contact Information
Secretary of the Board Representative of Securities Affairs
Name Tu Haiyan Gu Ning
Correspondence address Digital Intelligence Hundsun Center No. Digital Intelligence Hundsun Center
1888 Binxing Road Binjiang District No. 1888 Binxing Road Binjiang
Hangzhou District Hangzhou
Tel. 0571-28829702 0571-28829702
Fax 0571-28829703 0571-28829703
E-mail investor@hundsun.com investor@hundsun.com
III. Basic Information
Registered address Hundsun Tower No. 3588 Jiangnan Avenue Binjiang District
Hangzhou
Historical changes to the registered address None
Principal place of business Digital Intelligence Hundsun Center No. 1888 Binxing Road
Binjiang District Hangzhou
Postal code of principal place of business 310053
Website of the Company www.hundsun.com
E-mail investor@hundsun.com
IV. Information Disclosure and Place for Inspection
Newspapers selected by the Company for China Securities Journal Shanghai Securities News Securities
information disclosure Times and Securities Daily
Website designated by the Shanghai Stock www.sse.com.cn
Exchange for publishing the annual report
Place for inspection of annual reports of theD igital Intelligence Hundsun Center No. 1888 Binxing Road
Company Binjiang District Hangzhou
V. Basic Information of the Company’s Shares
Stock Profile
Class of shares Stock exchange Stock abbreviation Stock code Stock abbreviation
before change
A shares Shanghai Stock Hundsun Technologies 600570
Exchange
VI. Other Relevant Information
Accounting firm Name Pan-China Certified Public Accountants LLP
(domestic) engaged by the Office address Hangzhou China
Company Names of signing Chen Caiqin and Fei Jun
6 / 2442022 Annual Report
accountants
VII. Key Accounting Data and Financial Indicators for the Past Three Years
(I) Key accounting data
Unit: Yuan Currency: RMB
Increase or decrease
for the period over
Key accounting data 2022 2021 the same period of 2020
the previous year
(%)
Revenue 6502387143.49 5496578624.88 18.30 4172645156.56
Net profit attributable
to shareholders of the 1091088379.58 1463538930.14 -25.45 1321735522.48
Company
Net profit attributed to
shareholders of the
listed company net of 1144419161.05 946569672.55 20.90 733590924.61
non-recurring profits
and losses
Net cash flows from
1138192779.96956789306.1418.961397902270.41
operating activities
Increase or decrease
at the end of the
period as compared
End of 2022 At the end of 2021 At the end of 2020
to that of the same
period of the
previous year (%)
Net assets attributable
to shareholders of the 6811761050.50 5695031051.05 19.61 4554029323.59
Company
Total assets 13004578298.67 12079908312.76 7.65 9971144688.34
(II) Key financial indicators
Increase or decrease
for the period over the
Key financial indicators 2022 2021 2020
same period of the
previous year (%)
Basic earnings per share (RMB/share) 0.57 0.77 -25.97 0.70
Diluted earnings per share
0.570.77-25.970.70
(RMB/share)
Basic earnings per share net of non-
recurring profits and losses 0.60 0.50 20.00 0.39
(yuan/share)
Weighted average ROE (%) 17.36 30.11 Decrease by 12.75% 31.57
Weighted mean ROE net of non-
18.21 19.47 Decrease by 1.26% 17.52
recurring profit or loss (%)
Explanation on the key accounting data and financial indicators of the Company for the past three years
before the end of the Reporting Period
□Applicable √Not Applicable
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VIII. Accounting Data Differences Between the PRC GAAP Standards and Foreign Accounting
Standards
(I) Difference arising from the net profit and net assets attributable to shareholders of the
Company in the financial statements disclosed simultaneously pursuant to the International
Accounting Standards and the PRC GAAP Standards
□Applicable √Not Applicable
(II) Difference arising from the net profit and net assets attributable to shareholders of the
Company in the financial statements disclosed simultaneously pursuant to the foreign
accounting standards and the PRC GAAP Standards
□Applicable √Not Applicable
(III) Explanation on the difference between domestic and foreign accounting standards
□Applicable √Not Applicable
IX. Key Financial Data of 2022 By Quarter
Unit: Yuan Currency: RMB
Q4
Q1 Q2 Q3
(October to
(January to March) (April to June) (July to September)
December)
Revenue 973430594.24 1412282460.90 1351375583.85 2765298504.50
Net profit
attributable to
-41295808.72-54501675.29107290903.831079594959.76
shareholders of the
Company
Net profit
attributable to
shareholders of the
15377135.8393823740.61221121955.21814096329.40
Company net of
non-recurring profit
or loss
Net cash flows from
-1072701705.21-6759959.91480811562.151736842882.93
operating activities
Explanation on the difference between quarterly results and information disclosed in periodic reports
□Applicable √Not Applicable
X. Non-Recurring Profits or Losses and Amounts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Note (if Amount for Amount for
Non-recurring profits or losses Amount for 2022
applicable) 2021 2020
Profit or loss from disposal of
5326551.0738436050.92344555568.21
non-current assets
Government grants charged to
the current profit or loss
(excluding those closely Mainly
related to the normal business represented the
of the Company and granted 51728213.87 government 57355855.21 38004499.61
under the national policies and grants for special
continuously enjoyed projects
according to a certain quota of
amount or volume
Profit or loss from changes in Mainly
the fair value generated from represented the
-112295096.37489548525.78244076200.23
the Company's held-for- profit and loss
trading and derivative from the changes
8 / 2442022 Annual Report
financial assets and held-for- in the fair value
trading and derivative generated from
financial liabilities and the Company's
investment income from the held-for-trading
disposal of held-for-trading financial assets
and derivative financial assets and the
held-for-trading and derivative investment
financial liabilities and other income from the
debt investments except for disposal of the
effective hedging business held-for-trading
related to the Company's financial assets
normal business
Reversal of depreciation
reserves of receivables and
contractual assets under 1015200.00
independent impairment
assessment
Other non-operating income
and expenses other than the 615168.56 -770038.19 -2223351.85
above
Other profits or losses that
belong to non-recurring profits -10389612.76
and losses
Less: Effect on income tax 154540.63 56393147.86 8719973.75
Effect on minority
-433722.0311207988.2717158731.82
interests (after-tax)
Total -53330781.47 516969257.59 588144597.87
Reasons shall be given with respect to the Company classifying the non-recurring profit and loss items
defined and listed in the Explanatory Notice on Information Disclosure of Companies with Public Offering
No. 1-Non-recurring Profit and Loss as recurring profit and loss items.□Applicable √Not Applicable
XI. Items Measured at Fair Values
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Change for the Effect on the profit
Item Opening balance Closing balance
period for the period
Held-for-trading
1991523094.741497708252.01-493814842.73-4012833.21
financial assets
Other debt investments 65681018.23 35020859.58 -30660158.65 2131923.49
Other non-current
2981720276.862532458912.37-449261364.49-27344381.67
financial assets
Total 5038924389.83 4065188023.96 -973736365.87 -29225291.39
XII. Others
□Applicable √Not Applicable
Section III Management Discussion and Analysis
I. Discussion and Analysis on Business Operations
(I) Overall operation
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In 2022 the Company actively gained insight into grasped and guided trends in financial industry
development as it underwent accelerated digital transformation and upgrading. At the same time in line
with the modernization of China's financial system and deepening reforms in capital markets the
Company seized upon the trends of technological upgrading and iteration to overcome uncertainty in the
external environment and dynamically adjusted its business strategy to maintain sustained growth thanks
to the persistent efforts of all employees. In addition it also made progress in corporate governance
organizational upgrading and product technology research and development.During the Reporting Period the Company's revenues increased by 18.3% year on year mainly
reflecting its efforts to seize the market opportunities presented by digital transformation and upgrading
in the financial industry. Net profit attributable to the Company’s shareholders decreased by 25.45% year
on year mainly reflecting capital market fluctuations during 2022 which resulted in a significant decrease
in the income from changes in the fair value of financial assets held by the Company compared to the
same period in the previous year. Net profit attributable to the Company’s shareholders after deducting
non-recurring profits and losses increased by 20.90% mainly reflecting the Company’s timely adjustment
of business strategies to suit the external environment and attention to cost control with income growth
continuing to outstrip cost growth.During the Reporting Period the Company maintained overall continuous growth in all its businesses.In terms of revenue structure the Company's big retail IT and big asset management IT businesses remain
its main sources of revenue. Amongst these asset management IT institutional service IT and financial
basic IT have achieved good growth while steady growth was achieved by the operations management IT
and brokerage IT businesses.In terms of core products UF3.0 O45 Wealth Management Sales 5 Comprehensive Wealth
Management 6 and TA6 have expanded by many customers retaining market and technological leadership.In terms of business model upgrading growth in the wealth and asset management cloud businesses
remains steady. In terms of data services the Company is continuing to improve the functionality of its
Insight Smart Eye and Xiaofan terminal products and continuously improving the competitiveness of its
investment research industry chain analysis framework and search reading calculation and writing for
Cloud Investment research. Progress has been made in IT application innovation with over 70 products
compatible.
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(II) R&D and Technology
In recent years the Company is rapidly catching up and narrowing the gap with the leading
international FinTech giants. The Company ranked 24th in the IDC Fintech Rankings 100 in 2022 with
an overall upward trend in ranking.The Company continuously recruits top talents in the industry and has built various sound systems
and dedicated teams for research and development as well as its products. At present the Company has
1067 employees with a master’s degree or above (including a doctor’s degree). In 2022 the Company
invested a total of RMB2.346 billion in R&D accounting for 36.08% of revenue. In 2022 the number of
R&D personnel at 7016 accounted for 52.07% of the Company's total number of employees. The number
of product technicians accounted for 73% of the total number of employees. The Company is at an
industry-leading level in terms of number of R&D personnel and R&D investment.In terms of technology the Company remains committed to the continuous provision of leading
technologies in order to promote the digitalization process of capital markets and the construction of new
financial digital infrastructure fulfilling their needs. In terms of innovation in IT applications while
upholding the four principles of security autonomy controllability and stability the Company is
accelerating the adaptation of its innovative IT application hardware operating systems + databases
middleware and business adaptation products in order ease customers’ IT application innovation burden.Development of the Company's Chinese-made LightDB database based on the open-source PG has
continued and it has passed the CAICT’s three trusted database evaluations. In terms of artificial
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intelligence based on its own engineering and productization practices the Company has been exploring
cutting-edge AI technologies including deep learning data science knowledge graphs NLP computer
vision and AIGC and their applications in the investment advisory investment research marketing
customer service risk operations and other fields so that the innovation can deliver business value to
users and the industry. In terms of low-code development the Company has accelerated the consolidation
of its platform infrastructure helping fulfill the agile development requirements of business personnel via
the construction of low-code development tools and high-quality application model components.(III) M&A and Investment
During the Reporting Period the Company made a moderate adjustment its investment strategy in
response to changes in the external environment to focus mainly upon follow-up management and
integration of M&A projects strengthening product line deployment via the integration of subsidiaries’
businesses and continuing to optimize some subsidiaries’ equity structure. At the same time the Company
set up a phase I industrial fund to expand upstream and downstream deployment in its industry chain and
establish a win-win industrial ecology through cooperation with external capital.(IV) Internal Management System
1. Upgrading and adjustment of organizational structure
In order to improve responsiveness to customer needs and product innovation and to improve the
efficiency of its organizational process management the Company has been continually optimizing its
organizational structure establishing a "distributed" HSR organizational structure and adjusting and
optimizing its areas of business and the organizational structure of its industrial operations. Unlike a green
train that "runs fast but depends entirely on the railway engine" each car of a high speed train has devices
providing motive power; thus these have evolved into EMUs. Similarly under the Company’s guidance
all business teams now have their own momentum to move forward efficiently with increased energy.
2. Management process optimization and digital construction
The Company is continuing to promote digital construction in its planning management operations
management process reform organizational management and other areas. The Company has officially
released its strategic management process and continues to develop tools for market insight strategic
planning and strategy implementation monitoring and has completed its review of strategy
implementation. IPD has been fully implemented with six process-based organizations now in normal
operation and IPD processes including product management requirements management OBP and R&D
project management established and optimized. The LTC process framework has been established and
delivery and sales project processes fully implemented ensuring that all leading customers are equipped
with customer managers solution managers and delivery managers.
3. Team talent building
In terms of construction of the employment position system the Company has iterated over
qualification standards for multiple sequences of positions an inventory of expert positions for
management personnel and experts has been completed and a preliminary position system covering
12 / 2442022 Annual Report
position design statements evaluation and person-position fit has been established. In terms of employee
incentives the Company successfully implemented its 2022 Employee Stock Ownership Scheme and the
Stock Option Incentive Plan.II. Industry Development During the Reporting Period
1. Financial institutions’ technological investment
In recent years financial institutions have continued to grow in terms of asset sizes and revenues
and business innovation has accelerated thus new demands have been imposed upon their IT systems’
performance and functionality. In order to strengthen their competitiveness financial institutions are
continuing to increase their investments in the application of technology and digital transformation and
upgrading.According to the Practice Report and Case Compilation on Securities Companies’ Digital
Transformation (2022) issued by the Securities Association of China in November 2022 brokers'
investments in information technology are continuing to increase. In 2021 securities companies across
the whole industry invested a total of RMB33.82 billion in information technology up 28.7% year on year.The share of this investment made by the top brokers also increased with the top 15 securities companies’
investments accounting for 55.89% of the industry total.According to the annual reports of A-share listed banks these 22 banks invested a total of RMB168.1
billion in information technology during 2021 up 22.93% year on year.
2. Industrial policy and regulation
* FinTech policies
In recent years China has introduced relevant incentives and policies designed to support the digital
economy network security and information-based development core technological breakthroughs cloud
services big data innovation in IT applications and connectivity. The 14th Five-Year Plan for the
Development of Digital Economy issued by the State Council aims to speed up the development of the
network security industrial system establish and improve the governance system for data security and
research improvements into industrial data security management policies.The FinTech Development Plan (2022-2025) issued by the People's Bank of China (PBOC) calls
for adherence to "digitally-driven intelligently serving the people green & low-carbon and fair &
inclusive" development principles of the basis of strengthened application of financial data elements.The Securities Association of China issued a draft of its Three-Year Improvement Plan for Network
and Information Security (2023-2025) which proposes 33 key tasks to brokers for comment. The Plan
encourages brokers that are in a position to do so to invest an average of no less than 8% of their average
net profit or 6% of their average revenues in information technology over the next three years in order
to actively promote the construction of a new generation of core systems and transform and upgrade the
technological architecture of their core systems.
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* Finance industry policies
FinTech is supporting the efficient and orderly development of the finance industry. In 2022 as the
deepening of capital market reform and opening up continued a series of policies including the
comprehensive registration system personal pension-related policies STAR market making and bond
trading optimization were implemented. As always the Company remains firmly committed to
implementing regulatory requirements supporting government agencies’ promotion of financial reform
and innovation and maintaining financial security and the stability of financial development.III. Business Development During the Reporting Period
The Company is a leading provider of FinTech products and services in China. With a focus on the
financial industry the Company mainly serves customers from securities futures public offering trust
insurance private equity banking and industry stock exchanges and emerging industries to provide one-
stop FinTech solutions. Under the background of financial digital transformation and upgrading the
Company has gradually deepened from process digitization to business digitization and continuously
explored the intelligent application of FinTech using advanced technologies such as cloud-native high
performance big data artificial intelligence and blockchain to empower financial institutions to better
manage assets and serve customers and to help customers realize financial digital transformation and
upgrading.The Company categorizes its principal business activities into the following six business segments
based on type of product or service: big retail IT big asset management IT corporate finance & insurance
core & infrastructure IT risk data and platform technology IT Internet innovation and non-financial.* Big Retail IT Business
In 2022 revenues from the big retail IT business were RMB1.535 billion up 9.53% year on year
and accounting for 24% of the Company's total revenue.The big retail IT business mainly consists of securities brokerage IT business and wealth management
IT business. The securities brokerage IT business mainly serves customers from the brokerage business
segment of brokers and the core product therein is the centralized trading system which is mainly
configured to provide account management capital clearing and settlement commission order
management and access services (interaction with exchanges CSDC etc.). The wealth management IT
business mainly serves customers from the marketing sales and customer service business divisions of
various kinds of wealth management institutions including banks brokers and third parties along with
various asset management institutions including funds trusts and insurance asset managers as well as
banks' and brokers' custody and outsourcing business divisions. Its core products include asset allocation
14 / 2442022 Annual Report
product management and wealth management sales & marketing systems. These are mainly configured
to provide wealth planning advice and services for financial product management wealth management
sales transactions investment advisory business operations customer and investor marketing/services.In terms of securities brokerage IT the related businesses grew well thanks to development
opportunities offered due to regulation and industry innovation. In terms of core securities products UF3.0
and some related modules were rolled out to many newly-signed up customers during the year. UF2.0
optimization services were appreciated by customers with significantly improvements in product quality
satisfaction. In terms of core futures products good support was provided for key projects and the futures
operations middle-end platform was launched. In terms of innovative products good momentum was
maintained for the stock option incentive system asset accounting system and trading middle-end
platform.In terms of wealth management IT over 100 new customers in total were added for core products
such as Wealth Management Sales 5 Comprehensive Wealth Management 6 public offering investment
advisory and the customer relationship management (CRM) system representing rapid growth. In terms
of new business development the Company’s personal pension service was successfully rolled out to 7
leading customers; the commercial pension service was rolled out to 5 pilot institutions; Wealth
Management and Asset Allocation 3.0 for securities institutions was rolled out to leading institutions;
CRM5 was rolled out to banks’ wealth management subsidiaries and insurance brokerage services were
rolled out to the securities industry.* Big Asset Management IT Business
In 2022 revenues from the large asset management IT business were RMB2.805 billion up 27.97%
year on year and accounting for 43% of the Company's total revenue.The Company’s big asset management IT business mainly comprises asset management IT
institutional service IT business and operations management IT business. The asset management IT
business mainly serves customers from the investment research investment trading risk management and
other related business segments of securities houses funds insurance companies banks trusts and other
asset management institutions. Its main core products include investment decision-making systems and
investment trading management systems which are mainly configured to assist institutions in developing
sound investment research processes to support fund managers’ investment decisions and to provide a
trading platform for traders. The institutional service IT business mainly serves customers from brokers’
institutional business departments. Its core products include institutional service-related business systems
which are mainly configured to support brokers’ provision of investment transactions compliance risk
control low-latency transactions agency transactions strategy algorithms and other related services to
domestic and foreign institutional customers. The operations management IT business mainly serves
customers from the operations departments of funds broker asset managers banks trusts insurance asset
managers and other asset management institutions. Its core products include transfer registration
15 / 2442022 Annual Report
valuation accounting and capital settlement systems mainly configured to support the operation of
financial institutions’ middle and back-end platforms.In asset management IT business revenue growth has been rapid accompanied by diversification of
revenue sources. O45 products matured further and were rolled out to 16 customers during the year.Preliminary whole-process research and development for the fixed-income functions of Fusion China a
next generation investment management product were completed with new customers signed up
accordingly. Quantitative trading products developed rapidly. In bank capital management the core
Mangos product was promoted in accordance with its progress and Summit services grew steadily.Institutional service IT business grew steadily and the promotion of new products went smoothly.Many new customers were signed up for revenue swap PB2.0 LDP fast transactions and ALGO BUS.In operations management IT business the Company’s next-generation operations solutions have
gradually gained industry recognition with 100 new customers signed up. The Company’s releases of two
new products Operations 3.0 and Fund TA6 improved its product competitiveness.* Risk Data and Platform Technology IT Business
In 2022 revenues from the risk data and platform technology IT business were RMB450 million up
12.49% year on year and accounted for 7% of the Company's total revenue.
The risk data IT business mainly serves customers from various financial institutions’ risk
management and compliance management departments. Its main core products include data middle-end
platform comprehensive risk management and compliance management products. These are mainly
configured to provide data governance risk monitoring compliance reporting process management
information reporting management and anti-money laundering services. The technology platform IT
business mainly serves customers from various financial institutions’ IT departments. Its main products
and functions include the upgrading and transformation of digital intelligence bases including IT
application innovation/adaptation R&D and implementation Internet distributed microservice
architectures (JRES) the LightDB high-performance database and the LDP low-latency distributed
platform.Risk data IT business grew steadily. Risk monitoring products allowing fine-grained management
for existing customers and product modules were rolled out to new customers. Anti-money laundering
products strengthen the performance and engineering capabilities of big data products. In the wealth
management and asset management industries regulatory reporting products provide services supporting
all regulatory reporting for the PBOC CBIRC and CSRC promoting unified database and indicator
design and improving data quality.In platform technology IT business progress was made in IT application innovation with the
adaptation and rollout of most major products completed. The annual goal of lightweight integration of
JRES and O45 was completed and the architecture was reinforced based on customer projects.Development and efficiency improvements were made to the low-code platform. Breakthroughs were
made in LightDB database marketing while LDP maintained industry-leading performance.
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* Corporate Finance Core Insurance and Infrastructure IT Business
In 2022 revenues from the corporate finance core insurance and financial infrastructure IT business
were RMB558 million up 5.05% year on year and accounting for 9% of the Company's total revenue.The main core products of the corporate finance core insurance and infrastructure IT business include
cash management platforms and bill business products core property insurance systems core non-vehicle
systems etc.In enterprise finance IT business human resource control and project management were strengthened
while business growth remained steady. Transaction finance solutions were gradually enriched and
implemented for many customers; promotion of the bill business was successful with 18 new customers
signed up during the year. Industrial and financial integrated solutions were strengthened and several new
customers were signed up.In core insurance IT business first stage rollout of core life insurance projects to key customers was
completed. In the core property insurance system projects non-Hundsun products were replaced with the
Company’s products for the first time. The Company established a digital intelligence innovation team
and added 7 benchmark customers during the year.In financial infrastructure IT business two new national infrastructure customers Guangzhou Futures
Exchange and China Water Rights Exchange were signed up. At the same time the Company won the
bid for the bond credit analysis system of Shanghai Clearing House and achieved multi-point cooperation
with Shanghai Stock Exchange. 24 new local infrastructure customers were signed up. In new business
the trading system for China Beijing Environmental Exchange made steady progress and a number of
new customers were signed up in the digital asset and cultural rights trading fields.* Innovative Business for Internet and Significant Subsidiaries
In 2022 revenues from the Internet innovation business were RMB954 million up 18.64% year on
year and accounting for 15% of the Company's total revenue.Internet innovation business is mainly conducted by a number of subsidiaries focused on innovation
services such as Gildata Hundsun Ayers and Cloudyee Network. Customers are mainly domestic and
foreign funds and securities trusts futures insurance emerging market and other financial institutions.Core products include one-stop cloud service solutions and financial data information services.Gildata: In 2022 Gildata recorded revenues of RMB339 million up 17% year on year. During the
Reporting Period Gildata continued consolidation of its database improving its production and deep data
computing capabilities while creating transaction-level data quality standards using innovative
technologies. It also continued to broaden the breadth of its data and increase business coverage
supporting its customer renewal rate and developing new users to achieve continuous stable growth in
data service revenues. In the investment investment research risk early warning and content services
fields Gildata launched intelligent products such as WarrenQ an intelligent cloud investment research
platform gaining over 120 new customers during the year.
17 / 2442022 Annual Report
Hundsun Ayers: In 2022 Hundsun Ayers recorded revenues of RMB188 million up 10% year on
year. During the Reporting Period Hundsun Ayers’ performance continued to improve with revenues and
market share increasing and 5 new customers were acquired. There were breakthroughs in multiple
products and both the Fusion Invest and ESOP systems gained their first customer. At the same time
through its brokerage business transformation Hundsun Ayers increased its trading of various financial
products. In innovation services it set out plans to construct an information routing platform and create a
financial institution ecosystem in order to adapt to future business development as a broker.Cloudyee Network: In 2022 Cloudyee Network recorded revenues of RMB195 million up 37%
year on year. During the Reporting Period Cloudyee Network focused on products in the institutional
wealth management and wealth terminals fields where it continued to expand its industry share. At the
same time it focused on product and service quality in order to enhance its core competitiveness. In terms
of operations revenues from wealth and asset management SAAS and the scale of asset management grew
steadily expansion of market coverage continued and renewal rates remained high with industry business
capacity significantly improving. In terms of solutions Cloudyee Network explored and made preliminary
achievements in information technology service-based overall service capabilities.IV. Analysis of Core Competitiveness During the Reporting Period
√Applicable □Not Applicable
Leading product technology. The goal of the Company is to become a leading one-stop FinTech
solution provider that develops and implements industry technical standards and quality standards. An
industry leader in product technology the Company’s core trading systems for securities brokerage
services buy-side investment management systems and TA systems are looked upon favorably by
customers. These advantages enable the Company to have a certain scale effect and better marginal returns.Meanwhile the Company is also rapidly acquiring technical capabilities in new fields through mergers
and acquisitions and the establishment of joint ventures entering fields such as bank fund management
systems and core insurance systems in order to improve its data services and allowing it to rapidly achieve
leading technology status in these new businesses.Strong brand influence. The FinTech industry itself has high technical requirements. Compared
with entrants in the industry the Company has 28 years of going concern experience gained knowledge
of customers’ businesses and accumulated capabilities to provide comprehensive services for customers
which enable the Company’s products to be highly recognized by customers. Besides the needs of
financial institutions (for stable safe and long-term high-quality services) also make customers prefer the
products and services provided by leading technology companies in the industry.Outstanding innovation ability. Over the years the Company has maintained industry-leading
levels in terms of number of R&D personnel and R&D investment. In terms of new product development
and iteration the Company is keeping abreast of the changes and technological upgrading of financial
industry services to launch products with industry influence.
18 / 2442022 Annual Report
In terms of innovation incubation the Company has taken pioneering laboratories as a bridge
continually releasing pioneering projects combining technology and business orientations of interest to
the industry. Many of its cooperative projects with financial institutions have won industry awards.In terms of the organization and development of innovative talents the Company has received
approved to establish a national postdoctoral research workstation which will continue the promotion of
in-depth integration of industry academia and research.V. Major Operational Particulars During the Reporting Period
Main operation conditions in the Reporting Period are as follows:
(I) Analysis of Principal Businesses
1. Analysis on Changes of Relevant Items in Statement of Profit or Loss and Statement of Cash
Flows
Unit: Yuan Currency: RMB
Item During the
During the period corresponding period Change (%)
last year
Revenue 6502387143.49 5496578624.88 18.30
Cost of sales 1718949583.55 1484602486.66 15.79
Selling and distribution expenses 617092825.41 557934967.43 10.60
General and administrative expenses 870226221.15 681453467.57 27.70
Finance costs 15894747.75 -906045.34 N/A
R&D expenses 2346280973.22 2139296366.07 9.68
Net cash flows from operating
1138192779.96956789306.1418.96
activities
Net cash flows from investing
286226994.40 -423425969.13 N/A
activities
Net cash flows from financing
-481520619.51 -174082923.91 N/A
activities
The change in the revenue is mainly due to the growth of the Company's business during the period.The change in the cost of sales is mainly due to the increase in the Company's business and labor costs.The change in selling and distribution expenses mainly reflects increases in employees' remuneration and
share-based payments.The change in general and administrative expenses mainly reflects the increased depreciation on fixed
assets used in the Hundsun Cloud Production Base Phase I during the period.The change in finance costs is mainly due to the increase in exchange loss and interest expense during the
period compared with the same period last year.The change in R&D expenses mainly reflects increases in employees' remuneration and share-based
payments.The change in net cash flows from operating activities is mainly due to the increase in collection obtained
by the Company during the period over the same period of the previous year.The change in net cash flows from investing activities is mainly due to the decrease in cash paid by the
Company for construction in progress and investment during the period compared with the same period
last year.The change in net cash flows from financing activities is mainly due to the decrease in bank loans obtained
by the Company during the period.Detailed explanation of major changes in the Company's business type profit composition or profit
source during the period
□Applicable √Not Applicable
19 / 2442022 Annual Report
2. Analysis on Revenue and Costs
√Applicable □Not Applicable
Details of the Company's revenue from and costs of principal businesses are as follows:
(1). Performance of principal businesses by segment by product by region and by sales model
Unit: Yuan Currency: RMB
Revenue from Principal Businesses by Segment
Increase/decrease Increase/decrease in
Increase/decrease
Gross profit in the cost of the gross profit
By segment Revenue Cost of sales in revenue from
margin (%) sales from last margin from last year
last year (%)
year (%) (%)
Big retail IT
1534812936.75 506630138.94 66.99 9.53 -1.15 Increased by 3.56%
business
Big asset
management IT 2804741901.11 405374468.67 85.55 27.97 26.98 Increased by 0.12%
business
Data risk and
platform 450326772.55 174206647.95 61.32 12.49 94.21 Decrease by 16.27%
technology
Corporate
finance core
insurance and 558119431.22 355398444.69 36.32 5.05 -0.68 Increased by 3.67%
infrastructure
IT business
Internet
innovation 953736227.92 231329153.59 75.74 18.64 44.30 Decreased by 4.32%
business
Non-financial
195861842.20 45195253.16 76.92 19.83 1.63 Increased by 4.13%
business
Total 6497599111.75 1718134107.00 73.56 18.31 15.77 Increased by 0.58%
Principal Businesses by Product
Increase/decrease Increase/decrease in
Increase/decrease
Gross profit in the cost of the gross profit
By product Revenue Cost of sales in revenue from
margin (%) sales from last margin from last year
last year (%)
year (%) (%)
Revenue from
6361891835.21 1608072775.25 74.72 17.63 13.21 Increased by 0.98%
software
Revenue from
121222195.71 106725715.15 11.96 81.99 77.02 Increased by 2.48%
hardware
Revenue from
14485080.83 3335616.60 76.97 -15.83 -0.71 Decrease by 3.51%
science park
Total 6497599111.75 1718134107.00 73.56 18.31 15.77 Increased by 0.58%
Principal Businesses by Region
Increase/decrease Increase/decrease in
Increase/decrease
Gross profit in the cost of the gross profit
By region Revenue Cost of sales in revenue from
margin (%) sales from last margin from last year
last year (%)
year (%) (%)
Mainland
6261624358.20 1679118790.60 73.18 18.84 16.55 Increased by 0.52%
China
Overseas 235974753.55 39015316.40 83.47 5.75 -10.08 Increased by 2.91%
Total 6497599111.75 1718134107.00 73.56 18.31 15.77 Increased by 0.58%
20 / 2442022 Annual Report
(2). Analysis Statement of Production and Sales Volume
□Applicable √Not Applicable
(3). Performance of Major Procurement Contracts and Sales Contracts
□Applicable √Not Applicable
(4). Statement of Cost Analysis
Unit: Yuan
Cost by Sector
Change in
the amount
Proportion
Proportion of for the
of amount
amount for the Amount for the current
Cost Amount for the for the same Description
By segment current period same period last period
components current period period last .in total cost year compared
year in total
(%) with the
cost (%)
same period
last year (%)
Big retail IT
Cost of sales 506630138.94 29.49 512516506.00 34.54 -1.15
business
Big asset
management IT Cost of sales 405374468.67 23.59 319250227.95 21.51 26.98
business
Data risk and
platform Cost of sales 174206647.95 10.14 89700129.72 6.04 94.21
technology
Corporate
finance core
insurance and Cost of sales 355398444.69 20.69 357829232.59 24.11 -0.68
infrastructure IT
business
Internet
innovation Cost of sales 231329153.59 13.46 160308152.43 10.80 44.30
business
Non-financial
Cost of sales 45195253.16 2.63 44469792.58 3.00 1.63
business
Total 1718134107.00 100.00 1484074041.27 100.00 15.77
Cost by Product
Change in
the amount
Proportion
Proportion of for the
of amount
amount for the Amount for the current
Cost Amount for the for the same Description
By product current period same period last period
components current period period last .in total cost year compared
year in total
(%) with the
cost (%)
same period
last year (%)
Revenue from
Cost of sales 1608072775.25 93.60 1420423285.41 95.71 13.21
software
Revenue from
Cost of sales 106725715.15 6.21 60291366.47 4.06 77.02
hardware
Revenue from Cost of sales 3335616.60 0.19 3359389.39 0.23 -0.71
21 / 2442022 Annual Report
science park
Total 1718134107.00 100.00 1484074041.27 100.00 15.77
(5). Changes in the Scope of Consolidation due to Changes in the Shareholdings of Major
Subsidiaries during the Reporting Period
□Applicable √Not Applicable
(6). Major Changes or Adjustments in the Company's Business Products or Services during the
Reporting Period
□Applicable √Not Applicable
(7). Key Customers and Key Suppliers
A. Key Customers of the Company
√Applicable □Not Applicable
Sales to the Company's top five customers amounted to RMB348329600 accounting for 5.36% of the
total sales in the year. Among the sales to the top five customers the sales to their affiliates amounted to
RMB0 accounting for 0% of the total sales in the year
During the Reporting Period there were cases in which sales to a single customer exceed 50% of the total
there are new customers among the top five customers or the Company is heavily dependent on a few
customers
□Applicable √Not Applicable
B. Key Suppliers of the Company
√Applicable □Not Applicable
Purchases from the Company's top five suppliers amounted to RMB 158599900 accounting for 22.80%
of the total purchases in the year. Among the purchases to the top five customers the purchases to their
affiliates amounted to RMB45587300 accounting for 6.55% of the total purchases in the year
During the Reporting Period there were cases in which purchases to a single supplier exceed 50% of the
total there are new suppliers among the top five suppliers or the Company is heavily dependent on a
few suppliers
□Applicable √Not Applicable
3. Expense
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount for the
Amount for the
Item same period last Change (%) Reasons for change
current period
year
Selling and Mainly reflects increases in employees'
617092825.41557934967.4310.60
distribution expenses remuneration and share-based payments.General and Mainly reflects the increased depreciation
administrative 870226221.15 681453467.57 27.70 on fixed assets used in the Hundsun Cloud
expenses Production Base Phase I during the period.Mainly reflects increases in employees'
R&D expenses 2346280973.22 2139296366.07 9.68
remuneration and share-based payments.Mainly due to the increase in exchange loss
Finance costs 15894747.75 -906045.34 N/A and interest expense during the period
compared with the same period last year.
4. R&D Investment
(1). Statement of R&D Investment
√Applicable □Not Applicable
22 / 2442022 Annual Report
Unit: Yuan
Expensed R&D investment for the current period 2346280973.22
Capitalized R&D investment for the current period 0
Total R&D investment 2346280973.22
Proportion of total R&D investment in revenue (%) 36.08
Proportion of capitalized R&D investment in total R&D investment (%) 0
(2). R&D Personnel
√Applicable □Not Applicable
Number of R&D personnel 7016
Proportion of the number of R&D personnel in the headcount (%) 52.57
Educational Level of R&D Personnel
Educational level Number
Doctor's Degree 10
Master's Degree 1057
Bachelor's degree 5553
Junior college 395
High school or below 1
Age Composition of R&D Personnel
Age composition Number
Under the age of 30 (excluding 30) 3513
Aged 30-40 (including 30 and excluding 40) 3165
Aged 40-50 (including 40 and excluding 50) 326
Aged 50-60 (including 50 and excluding 60) 11
Aged 60 or above 1
(3). Description
□Applicable √Not Applicable
(4). Reasons for Significant Changes in the Composition of R&D Personnel and Impact on the Company's
Future Development
□Applicable √Not Applicable
5. Cash Flow
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Items in the Amount for the
Amount for the Change
statement of cash same period last Reasons for change
current period (%)
flows year
Mainly due to the increase in cash
Sub-total of cash
received from sales of goods and
inflows from
7055770054.23 6193014080.29 13.93 provision of services during the
operating
period compared to the same
activities
period last year.Sub-total of cash
Mainly reflects increases in cash
outflows for
5917577274.27 5236224774.15 13.01 payments to and on behalf of
operating
employees during the period.activities
Net cash flows
1138192779.96956789306.1418.96
from operating
23 / 2442022 Annual Report
activities
Sub-total of cash Mainly due to the decrease in
inflows from investment returns during the
2899849858.635762984326.05-49.68
investing period compared to the same
activities period last year.Mainly reflects decreased cash
Sub-total of cash
investments in construction in
outflows for
2613622864.23 6186410295.18 -57.75 progress and investment payment
investing
during the period compared to the
activities
same period the previous year.Net cash flows
from investing 286226994.40 -423425969.13 N/A
activities
Sub-total of cash Mainly due to the decrease in
inflows from bank loans during the period
913792377.821923543622.44-52.49
financing compared to the same period last
activities year.Mainly due to the share
Sub-total of cash
repurchase and the decrease in
outflows for
1395312997.33 2097626546.35 -33.48 bank loan repayment during the
financing
period compared to the same
activities
period last year.Net cash flows
from financing -481520619.51 -174082923.91 N/A
activities
Net increase in
cash and cash 937877873.76 353405536.94 165.38
equivalents
(II) Significant Changes in the Profit from Non-Principal Business
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount for the
Amount for the Change
Item same period last Reasons for change
current period (%)
year
Mainly due to the significant
Gain from changes changes in the fair value of the
-165741099.23414401157.02-140.00
in fair value Company’s financial assets at fair
value during the period.Investment income 258537504.13 275837269.79 -6.27 No significant changes
(III) Analysis of Assets and Liabilities
√Applicable □Not Applicable
1. Assets and Liabilities
Unit: Yuan
Proportion Proportion
of amount of amount
at the end at the end Year-
Amount at the Amount at the
of the of the on-year
Item end of the current end of the Description
current previous change
period previous period
period in period in (%)
total assets total assets
(%)(%)
24 / 2442022 Annual Report
Mainly reflects
increased
collections at the
Cash and bank end of the period
2872634365.3622.091727704846.6014.3066.27
balances and decreased
purchases of
financial assets
held for trading.Held-for-
No significant
trading 1497708252.01 11.52 1991523094.74 16.49 -24.80
changes
financial assets
Accounts No significant
922538606.597.09762916207.506.3220.92
receivable changes
No significant
Inventories 541390396.07 4.16 466992190.19 3.87 15.93
changes
Mainly reflects
the partial
Other debt
35020859.58 0.27 65681018.23 0.54 -46.68 redemption of
investments
financial bonds
during the period.Long-term
No significant
equity 1270543073.31 9.77 1110946777.17 9.20 14.37
changes
investments
Other non-
No significant
current 2532458912.37 19.47 2981720276.86 24.68 -15.07
changes
financial assets
Investment No significant
139546030.071.07127524968.931.069.43
properties changes
No significant
Fixed assets 1617839116.41 12.44 1679515491.95 13.90 -3.67
changes
Mainly reflects
the
commencement
Construction of the construction
124123757.950.9526357513.900.22370.92
in progress of Phase II of the
Hundsun Cloud
Production Base
during the period.Mainly reflects an
Right-of-use increase in rented
49359468.890.3832023105.440.2754.14
assets office space
during the period.Intangible No significant
404431043.563.11376460020.433.127.43
assets changes
Mainly reflects an
increase of
goodwill related
to the purchase of
Goodwill 678448513.59 5.22 367492126.98 3.04 84.62
Summit software
by CloudWing
Network during
the period.Deferred
No significant
income tax 193121586.84 1.49 163436491.51 1.35 18.16
changes
assets
Other non- 112816169.61 0.93 -100.00 Mainly reflects
25 / 2442022 Annual Report
current assets the fact that the
advance payment
for Summit’s
software business
by CloudWing
Network in the
previous year
been carried
forward in assets.Mainly reflects
the Company’s
Short-term
54993749.99 0.42 178028314.11 1.47 -69.11 repayment of
borrowings
most bank loans
during the period.Accounts No significant
556386054.844.28503758715.184.1710.45
payable changes
Contract No significant
3022756428.0223.243203414609.6926.52-5.64
liabilities changes
Employee
No significant
compensation 871800229.81 6.70 774996501.71 6.42 12.49
changes
payable
No significant
Taxes payable 235335318.28 1.81 196064942.41 1.62 20.03
changes
No significant
Other payables 177670629.68 1.37 170804176.79 1.41 4.02
changes
Mainly due to the
Current repayment of the
portion of non- current portion of
17061706.540.13154496614.611.28-88.96
current long-term bank
liabilities borrowings during
the period.Other current No significant
305258151.462.35305258151.462.53
liabilities changes
Mainly reflects
the Company’s
Long-term partial repayment
115834519.890.89228454065.701.89-49.30
borrowings of long-term bank
loans during the
period.Mainly due to the
significant
changes in the fair
Deferred
value of the
income tax 45897128.03 0.35 68201491.05 0.56 -32.70
Company’s
liabilities
financial assets at
fair value during
the period.
2. Overseas Assets
√Applicable □Not Applicable
(1) Asset scale
Included therein: overseas assets were 897990848.83 (Unit: Yuan Currency: RMB) accounting for
6.90% of the total assets.
Unit: Yuan Currency: RMB
Specific Reason Asset scale Location Operation Control Revenue Proportion Whether
26 / 2442022 Annual Report
contents of pattern measures to of there is
assets safeguard overseas significant
asset security assets in impairment
total assets risk
(%)
Corporate
governance
financial
Established
Japan Hundsun Autonomous management
by the 58859328.01 Japan -355200.26 0.45 No
Software Inc. operation audit
Company
regulatory
performance
assessment
Corporate
governance
financial
Hundsun Established
Hong Autonomous management
Holdings by the 807552089.98 55508740.45 6.21 No
Kong operation audit
Limited Company
regulatory
performance
assessment
Corporate
governance
Hundsun financial
Established
Intercontinental Hong Autonomous management -
by the 15641585.26 0.12 No
Holdings (HK) Kong operation audit 27888557.02
Company
Limited regulatory
performance
assessment
Corporate
governance
Hundsun IHS
financial
Markit China Established
Hong Autonomous management
(Hong Kong) by the 1155507.06 -282257.62 0.01 No
Kong operation audit
Technologies Company
regulatory
Limited
performance
assessment
Corporate
governance
Business
GenSys financial
combination
Technology Hong Autonomous management
not under 14782338.52 -255537.55 0.11 No
(International) Kong operation audit
common
Limited regulatory
control
performance
assessment
Total 897990848.83 26727188.00 6.90
(2) Notes to the High Proportion of Oversea Assets
□Applicable √Not Applicable
3. Restriction on Major Assets as at the End of the Reporting Period
√Applicable □Not Applicable
Unit: Yuan
Item Ending book value Reason for restriction
Time deposits to be held to maturity
Cash and bank balances 205700000.00
plus interest
Cash and bank balances 5622400.00 Guarantee deposit
Intangible assets 71127264.43 Pledged to secure bank borrowings
Construction in progress 124123757.95 Pledged to secure bank borrowings
Fixed assets 1105319505.95 Pledged to secure bank borrowings
Total 1511892928.33
27 / 2442022 Annual Report
4. Other Description
□Applicable √Not Applicable
(IV) Analysis of the Industry Operation Information
□Applicable √Not Applicable
28 / 2442022 Annual Report
(V) Analysis of Investments
Overall Analysis of External Equity Investments
√Applicable □Not Applicable
During the Reporting Period the Company made a moderate adjustment its investment strategy in response to changes in the external environment to focus
mainly upon follow-up management and integration of M&A projects strengthening product line deployment via the integration of subsidiaries’ businesses and
continuing to optimize some subsidiaries’ equity structure. At the same time the Company set up a phase I industrial fund to expand upstream and downstream
deployment in its industry chain and establish a win-win industrial ecology through cooperation with external capital.
1. Major equity investment
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Business
Process Capital has been
Management fully invested and
Hangzhou
& Automation Long-term Self- industrial and
AlphaFlow Capital
(BPM&BPA) No 4500.00 9.5745% No equity owned None None commercial No
Technology increase
Software investments fund registration of
Co. Ltd.R&D and changes
Solutions completed
Provider
Total / / / 4500.00 / / / / / / / / / /
Disclosure index (if any)
Disclosure date (if any)
Lawsuit involved or not
Effect on profit or loss during the
period
Prospective earnings (if any)
Situation as at the balance sheet date
Investment term (if any)
Partner (if applicable)
Source of funds
Statement item (if applicable)
Consolidated or not
Shareholding proportion
Investment
Investment modes
Whether the subject is principally
engaged in investment business
Principal business
Investee2022 Annual Report
2. Major non-equity investment
□Applicable √Not Applicable
3. Financial assets at fair value
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Profits or losses
Accumulated Impairment Purchase amount Sale/redemption
Category of from changes in
Opening balance variance in fair value accrued in the in the current amount during Other changes Closing balance
assets fair value in the
included in equity current period period the period
current period
Stocks 65601.45 6984.64 50019.07 55143.19 57888.70
Trust products 146944.78 -13127.02 11500.00 62351.82 80720.62
Bonds 6568.10 -71.14 2781.97 3502.09
Others 284778.10 -9630.60 130259.49 139764.34 264407.39
Total 503892.43 -15772.98 -71.14 191778.56 260041.32 406518.80
Security investment
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Profits or losses Accumulated Investment
Initial Purchase Sales amount
Type of Securities Source of Beginning from changes in variance in fair profit or loss Ending book Accounting
Stock abbreviation investment amount in the in the current
securities code funds book value fair value in the value included in during the value subject
cost current period period
current period equity period
Other non-
Self-owned
Stocks 300377 YSSTECH 32080.40 55269.16 -10731.46 4379.87 10770.05 1944.54 29162.58 current
fund
financial assets
Other non-
Self-owned
Stocks 002948 Bank of Qingdao 5200.00 9260.00 -3013.35 1920.00 7120.00 1749.65 current
fund
financial assets
Other non-
Self-owned
Stocks 688031 Transwarp-U 1634.28 1634.28 21541.82 23176.10 current
fund
financial assets
Other non-
Self-owned
Stocks 600900 CYPC -59.92 4406.92 4347.00 current
fund
financial assets
30 / 2442022 Annual Report
Other non-
Self-owned
Stocks 603383 Apex Software -323.20 12355.69 12355.69 528.38 current
fund
financial assets
Held-for-
Self-owned
Stocks / Others 869.79 1072.29 -429.23 25322.30 24897.45 -50.02 1203.02 trading
fund
financial assets
Held-for-
Nuoan Juxinbao Currency Self-owned
Funds 001669 9800.00 1.11 9801.11 trading
C fund
financial assets
Held-for-
E Fund 7-10 Year CDB Self-owned
Funds 003358 -25.22 3575.00 14.89 3549.78 trading
Bond Index fund
financial assets
Held-for-
Self-owned
Funds 511990 Hwabao Cash Tianyi A 6999.62 6999.62 3.30 trading
fund
financial assets
BOCOM New Return Held-for-
Self-owned
Funds 519752 Flexible Configuration 1300.00 1303.17 -145.84 3800.00 4957.33 trading
fund
Hybrid A financial assets
Other non-
Bosera CSI Dividend Self-owned
Funds 515890 2042.81 2047.14 -749.95 12038.09 1451.12 12295.27 current
ETF fund
financial assets
BOCOM New Return Held-for-
Self-owned
Funds 519760 Flexible Configuration 2100.00 2106.41 -120.16 2000.00 3986.24 trading
fund
Hybrid C financial assets
Held-for-
Bosera Stable Value Bond Self-owned
Funds 050106 3500.00 3405.83 -720.34 5425.00 2000.00 774.35 6170.19 trading
A fund
financial assets
China Merchants Ruifeng Held-for-
Self-owned
Funds 000314 Flexible Configuration 3600.00 3688.64 -133.37 1500.00 5055.28 trading
fund
Hybrid Initiated Fund A financial assets
China Merchants Fengtuo Held-for-
Self-owned
Funds 004932 Flexible Configuration 3700.00 3791.77 -254.50 99.78 -4.56 3432.02 trading
fund
Hybrid A financial assets
Held-for-
E Fund Yufeng Return Self-owned
Funds 000171 4879.90 3900.90 -144.47 3746.63 trading
Bond Fund A fund
financial assets
Held-for-
Morgan Stanley Shuangli Self-owned
Funds 000025 8300.00 8331.92 93.48 4000.00 7500.00 -5.22 4851.51 trading
Enhanced Bond C fund
financial assets
31 / 2442022 Annual Report
Other non-
China Merchants CSI Self-owned
Funds 515080 9020.31 10060.31 -1040.00 9020.31 196.33 current
Dividend ETF fund
financial assets
Other non-
FIPJIYU Robust Wealth Self-owned
Funds 10000.00 10275.80 -275.80 10000.00 current
Management fund
financial assets
Held-for-
Self-owned
Funds Others 41238.86 41484.74 -1584.80 36961.13 9488.56 843.03 67158.03 trading
fund
financial assets
Ping An Wealth * Huijin Held-for-
Trust Self-owned
Bond Investment Fund 46200.00 46200.00 46200.00 1129.18 trading
products fund
No.3 financial assets
Special Securities
Investment Collective Other non-
Trust Self-owned
Fund Trust Plan of 3000.00 17267.06 -2885.20 14381.86 current
products fund
Shenzhen SDIC Zhuque financial assets
Partnership
Shenzhen SDIC Jinglin
Other non-
Trust Fengshou Securities Self-owned
2000.00 11048.16 -1805.42 9242.74 current
products Investment Collective fund
financial assets
Fund Trust Plan
Other non-
Trust Chang'an Trust-Yunsheng Self-owned
52898.59 65069.47 -7705.45 11500.00 14646.82 3276.97 53527.77 current
products No.1 fund
financial assets
Other non-
Trust Chang'an Trust-Yunsheng Self-owned
3538.65 3870.84 -302.58 3568.26 current
products No.3 fund
financial assets
Other non-
Trust Self-owned
Others 1505.00 3489.24 -428.36 1505.00 current
products fund
financial assets
Industrial Bank Jinxueqiu Held-for-
Self-owned
Others Tianli Express Net Worth 57000.00 57000.00 57000.00 28.13 trading
fund
Financial Products financial assets
Held-for-
China Merchants Bank Self-owned
Others 21270.00 21270.00 28000.00 22040.00 216.42 27230.00 trading
Bubushengjin 8699 fund
financial assets
Held-for-
Fubon Bank (China) Self-owned
Others 3700.00 3700.00 11.53 trading
Yuehuiying fund
financial assets
32 / 2442022 Annual Report
Held-for-
Self-owned
Others Others 600.00 600.00 16.93 8747.32 3430.34 8.71 5933.91 trading
fund
financial assets
Self-owned Other debt
Bonds Others 6321.46 6568.10 -71.14 2781.97 213.19 3502.09
fund investments
Held-for-
Self-owned
Others Others 4685.01 6039.09 -375.09 2451.69 5536.86 106.64 2578.83 trading
fund
financial assets
Total / / 328485.06 / 396054.32 -11601.48 -71.14 188882.63 257092.45 12437.67 302857.55 /
Investments in private funds
√Applicable □Not Applicable
1. Hundsun Digital Intelligence Qiyuan Industrial Fund has been registered as a private fund. See Announcements No. 2022-017 and 2022-087 on www.sse.com.cn
for details;
2. Cross-intelligence Jinna No.1 FOF Private Securities Investment Fund has been registered as a private fund. See Announcements No. 2022-082 and No. 2022-
085 on www.sse.com.cn for details;
3. Private equity share (tentative) of Yangtze River Delta Collaborative Leadership (Shanghai) has not yet been registered as a private investment fund. See
Announcement No. 2022-088 on www.sse.com.cn for details.Derivative investment
□Applicable √Not Applicable
33 / 2442022 Annual Report
4. Specific progress of major asset restructuring and integration during the Reporting Period
□Applicable √Not Applicable
(VI) Disposal of Major Assets and Equity
□Applicable √Not Applicable
(VII) Analysis of Major Companies Controlled and Invested in by the Company
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Full company name Nature of Registered Total assets Net assets Revenue Net profit
business capital
Hangzhou Hundsun
Industrial
Cloud Investment 16500.00 54224.36 22041.85 1326.72 867.60
investment
Holding Co. Ltd.Japan Hundsun
Software JPY 7850.00 5885.93 1686.62 4935.62 -35.52
Software Inc.Hangzhou
Cloudyee Network
Software 10000.00 30235.08 21665.28 19511.35 7505.11
Technology Co.Ltd.Hangzhou
Cloudbroker
Network Software 5176.50 7462.78 4233.77 6275.72 413.88
Technology Co.Ltd.Hangzhou Hundsun
Wengine Network
Software 1250.00 21532.88 13650.62 13241.56 5768.41
Technology Co.Ltd.Hundsun Holdings Investment HKD
80755.2168478.6018805.535550.87
Limited management 10000.00
Hangzhou Xinglu
Investment
Equity Investment 24100.00 9917.19 5771.02 263.85
management
Partnership (L.P.)
Zhejiang Jingteng
Network
Software 5428.58 11612.24 6445.94 11163.83 18.48
Technology Co.Ltd.Wuxi Xinglu
Tiancheng
Investment
Investment 30100.00 2328.80 2328.80 -73.71
management
Management
Partnership (L.P.)
Shanghai Gildata
Software 13778.10 45883.06 25530.44 33943.92 -1787.43
Inc.Business
Intelligence Info.Software 2793.58 7691.04 4326.16 7441.44 1007.16
Tech. (Hangzhou)
Co. Ltd.Shanghai Genus-
Finance
Software 2122.03 11919.51 7912.82 6774.43 808.50
Information
Technology Co.
34 / 2442022 Annual Report
Ltd.Hundsun IHS
Markit China
Software 7000.00 4541.51 4063.97 12.30 -1288.18
Technologies Co.Ltd.Nanjing Xingcheng
Investment
Equity Investment 30300.00 29676.64 29676.64 -104.33
management
Partnership (L.P.)
Hangzhou
Cloudwing
Network Software 46606.11 73383.63 53562.70 11528.94 725.78
Technology Co.Ltd.Hundsun iBontal
(Guangdong)
Software 9907.12 10438.55 4466.57 12041.35 -2112.10
Technology Co.Ltd.Zhejiang Xunchang
Wendao Network
Information Software 5000.00 1823.09 1336.68 503.94 -2269.53
Technology Co.Ltd.Shenzhen
Ricequant
Software 1140.63 2118.56 1595.57 1755.54 -73.04
Technology Co.Ltd.Ant (Hangzhou)
Funds Sales Co. Finance 15562.00 1235214.15 155024.45 1115860.88 54402.14
Ltd.Shenzhen
Tradeblazer
Software 3546.97 14378.22 13598.47 3268.49 776.61
Technology Co.Ltd.Hundsun Cloud
Financing Network
Software 7470.00 15731.09 7998.21 14485.14 114.55
Technology Co.Ltd.(VIII) Status of Structured Entity Controlled by the Company
□Applicable √Not Applicable
VI. Discussion and Analysis of the Future Development of the Company
(I) Industry pattern and trends
√Applicable □Not Applicable
In order to achieve its goals for 2030 the Company is anticipating industry development trends and
making long-term strategic plans. To this end the application of FinTech in the financial sector is evolving
from application on a “tools and platform” basis towards an ecosystem basis a notable trend towards the
integration of technology and business has emerged and the wealth management and asset management
industry chains are undergoing reshaping. As a major supplier of FinTech to the Chinese domestic wealth
and asset management industry Hundsun aims become more open and cooperative in the exploration of
35 / 2442022 Annual Report
cutting-edge technological innovation with customers with the aim of jointly sketching out blueprints for
"Digital-intelligent Finance 2030".Three drivers of industry development
Development in the financial industry is being driven by three main factors:
1. Business: Business is the dominant driver of changes in the markets. China's capital markets are
undergoing transformation from developing markets to developed markets. The construction of multi-tier
capital markets implementation of an overall registration system and changes in asset allocation are set
to drive development and change in finance.
2. Technology: Technology is driving the digital-intelligent transformation leading to a restructuring
of scenarios processes management and productivity. The AI technologies underlying ChatGPT AIGC
Digital Humans etc. have become important scientific and technological variables.
3. Regulation: Finance is a highly regulated industry and the shape pace and path of its market
development will be sketched out by regulation.Three Stages and a Quartet of Data Intelligence
The development of data intelligence can be roughly divided into three stages: "digitalization"
"digital governance" and "digital intelligence". In the "digitalization" stage e-enabling and primary
automation of data is realized mainly during the process of e-enabling manual services constructing
business processes and gathering information on business execution. Characteristics of this stage include
scattered data difficulties with data quality control inadequate value mining software problems
numerous data silos and business process discontinuities. In the "digital governance" stage the focus is
mainly upon the construction of information systems for business management and analysis promoting
centralization of services systems and data and a high degree of automation. This permits centralized
data governance and improvements in quality empowering business and decision-making. In the "digital
intelligence" stage innovation in the financial application of IT will become the foundation for
construction of digital intelligent ecosystems and industries with highly-integrated of services and
technology intelligent automation and profound changes in organizational management and corporate
culture.These three stages — "digitalization" "digital governance" and "digital intelligence" — are apparent
during the process as three overlapping waves converging on the goal of high-quality development in
digital intelligence finance. However the ultimate realization of this goal relies on the "Quartet" —
construction of technological infrastructure business process reengineering training of team talent and
upgrading of cultural concepts — to begin the new chapter.FinTech Business Process Reengineering Under Regulatory Guidance
Reengineering can be viewed from four dimensions; those of the customer investment operations
and risk control:
36 / 2442022 Annual Report
1. Customer: As financial services have developed from sales-driven and product-driven to being
driven on a customer-centered investment advisory basis their closed-loop channel taking products as its
main mode has evolved into a closed-loop ecosystem with content as its main carrier. The construction
of a customer-centered investment advisory service system including customization on the investment
side enables the digital re-engineering of each process in each link of this entire closed loop.
2. Investment: Potential exists to comprehensively improve investment capacity to broaden the
boundaries of asset management business to digitalize investment research logic and to network
investment research content building an investment research ecosystem for buyers and sellers and
forming an industrial ecosystem combining trading data supply and demand and investment research.
3. Operations: Operational patterns are being reinvented from front-end to back-end permitting
automated intelligent and service operation without human intervention with operators focusing on
service operations intelligence innovations resolving problems relating to income cost and control.
4. Risk control: Construction of unified risk management platforms to render risks from passive to
active visible. Through modeling and data-enabled intelligent risk control technology risk management
products are being transformed from merely fulfilling "regulatory compliance" requirements to deliveryof both "regulatory compliance” and “business empowerment".Development trends in new technologies
1. Safety & Controllability: Once databases have been deeply adapted and transformed smooth
migration will become financial industry database transformation’s top priority. As the infrastructure for
IT application innovation is rolled out the construction of an IT application innovation cloud will assist
financial institutions in the completion of their cloud-native low-latency transformation. DBPaaS
management platforms will become critical to improving database application and O&M efficiency.Cross-platform and transcoding technologies will become an effective means via which existing assets
can be quickly reused for customer side IT application innovation. As "development security" is
transformed into "secure development" DevSecOps will become the superior security R&D solution just
as chaos engineering will emerge as an important means for ensuring the stability of financial information
systems.
2. Data & Intelligence: Data Lakehouse and Data Fabric technologies will further unify management
and control of enterprise data assets. The popularization of data processing and data application will
accelerate enterprises’ digital-intelligent transformation and upgrading while the integration of domain
knowledge innovation and deep learning will usher in a new stage in the popularization and generalization
of financial AI. Scenario-driven graph database infrastructure and high-performance large-scale graph
computing will become essential while Digital Humans will become interactive leading to fundamental
improvements in online and offline service experiences.
3. Performance & Experience: Use of in-memory computing to compensate for database-related
performance issues will gradually dominate in core trading systems while the integration of some business
development logic into platforms will emerges as the major trend in high-performance development and
37 / 2442022 Annual Report
hardware/kernel integration of some platform functionality becomes the dominant trend in high-
performance platform development. Hyper-convergence of storage and compute engines will be the next
target for data technology convergence while inclusive digital finance drives the emergence of inclusive
design as a new trend in user experience.
4. Efficiency & Cooperation: Low-code platforms based on enterprise architecture assets will
facilitate enterprise business innovation. Increasing numbers of technologies and components will be
integrated via RPA to form enterprise-level integration platforms. Blockchain and derivative trust
technologies will provide critical support for processes involving the identification and circulation of and
transactions in data elements. The implementation of FinTech will enter a phase of standardized
construction further promoting the development of its industrial ecosystem.(II) Development strategies of the Company
√Applicable □Not Applicable
Vision: To become a world-leading Fintech company. Mission: To make Finance Easy
1. Customer First
With "Customer First" as its top strategic priority the Company is adhering to the value proposition
of "meeting customer expectations and making only first-class products" while resolutely implementing
only "customer-centric and customer value-oriented" organizational and process changes.
2. First-class products
Adhering to a product-oriented strategy The Company is continually promoting the launch of core
next-generation products improving its superior products to enhance its competitiveness and expand the
leading advantages and market influence conferred by its strategic products.
3. Leading in technology
The Company is continuing to enhance its technological capabilities in IT application innovation
LDP JRES low-code platforms digital intelligence platforms LightDB and efficiency platforms. The
Company is committed to continuously providing its leading technologies to promote capital markets’
digitalization process and construct new financial digital infrastructure that fulfills the capital markets’
needs.
4. Data intelligence
The Company is increasing the breadth and depth of its data service applications developing data
and component subscription services promoting upgrades to product intelligence enriching its data assets
improving data quality and emphasizing the development of intelligent investment and research scenarios
as it continues to improve the competitiveness of its investment and research products.
5. Management upgrade
The Company is extending its efforts in DSTE IPD LTC process systems product development
sales delivery and other comprehensive project-based operations as it facilitates the construction of
teams of cadres and experts in order to develop a first-class organizational team. The Company is
developing itself into “Digital Hundsun” improving its level of internal digital management and external
digital service capability.
38 / 2442022 Annual Report
(III) Operation plan
√Applicable □Not Applicable
Based on the Company's new strategic plan and organizational restructuring as well as the outlook
for the market and regulatory policies in 2023 the Company's main business revenue for 2023 is budgeted
to increase by approximately 18% year-over-year while its costs and expenses are budgeted to increase
by approximately 18% year-over-year.(IV) Potential risks
√Applicable □Not Applicable
The main risks faced by the Company are those of talent turnover market competition and
technological innovation at the cutting-edge.In terms of the risk of talent turnover as a technology-driven FinTech company the Company has a
growing need for high-end talent and a “brain drain” of core employees could affect its business. In
response to the above risk the Company has on the one hand formulated a series of talent attraction
policies and is actively engaging in industry-university-research cooperation and training with major
universities while providing an industry-competitive compensation and welfare system. On the other hand
the Company demonstrates its commitment to the retention of key talents via provision of a sound
management system and reasonable incentive measures while continuously expanding its team of high-
quality talents.In terms of risks from market competition the Company mainly faces competition from new industry
players including niche business competitors and traditional financial institutions’ FinTech subsidiaries.Meanwhile the Company is improving its service capability and product quality via adjustment and
optimization of its internal organizational structure. The Company is also remaining open and cooperative
and increasing its investment in product R&D accelerating iteration over and improvement of next-
generation products and working continuously to improve customer satisfaction product engineering
capability and project delivery efficiency. In terms of customer service the Company aims to enrich its
customer interfaces and improve its customer service capability.In terms of cutting-edge technology innovation risks due to the rapid development of emerging
technology trends such as AI blockchain big data and cloud computing the Company needs to keep up
with technology trends and maintain sufficient investment in research and development or it may have to
face the situation of being lagged behind in technology. For many years Hundsun has emphasized and
continuously invested in cutting-edge technological research establishing a three-level R&D architecture
system revolving around the Hundsun Research Institute technology platform headquarters and service
department platform R&D and maintaining high levels of R&D investment.(V) Others
□Applicable √Not Applicable
39 / 2442022 Annual Report
VII. Circumstances of and reasons for the Company fails to disclose in accordance with the relevant
standards due to special reasons such as non-application of the standards state secrets and
trade secrets
□Applicable √Not Applicable
Section IV Corporate Governance
I. Relevant Information of Corporate Governance
√Applicable □Not Applicable
By observing core values of "Customer First Integrity Professionalism Openness Cooperation and
Continuous Growth" and upholding the mission to "Make the Finance Easy" Hundsun is committed to
developing into the world's leading FinTech company. Since its establishment Hundsun has been actively
undertaking social responsibility as a corporate citizen and continuously promoting the sustainable
development of itself and society. In accordance with the relevant national laws and regulations and its
Articles of Association the Company has defined the organizational hierarchy of the Board the
Supervisory Committee the management and internal departments staffing responsibilities and authority
working procedures and related requirements. The Company continues to improve its corporate
governance structure standardize its operations and enhance its corporate governance in strict accordance
with the provisions of the Company Law the Securities Law the Rules Governing the Listing of Stocks on
the Shanghai Stock Exchange and other relevant laws and regulations as well as the requirements of the
Articles of Association the Procedural Rules for Shareholders' General Meetings the Procedural Rules
for Board Meetings the Procedural Rules for Supervisory Committee the Management Rules of Internal
Audit and other rules and regulations.
(1) Shareholders and shareholders' general meetings During the Reporting Period the Company held
four shareholders' general meetings in total. The convening holding and voting procedures of the meetings
were in line with the provisions of the Company Law and the Company's Articles of Association and the
Procedural Rules for Shareholders' General Meetings and the lawyers witnessed the meetings on the spot
and issued a legal opinion to prove the legality. The Company kept communication channels with its
shareholders open treated all shareholders equally and ensured that shareholders can fully exercise their
rights and enjoy their right to be informed and to participate in decision-making on major matters.
(2) Directors and the Board. The number and the member composition of the Company's Board meet
the requirements of laws and regulations and the Directors are all responsible and diligent. There are a
total of 11 directors including four independent directors namely two accountant experts one financial
expert and one legal expert (female). The independent directors do not take office in the Company except
as a director which is in line with relevant regulations. During the Reporting Period the Company held 9
board meetings the convening holding and voting procedures of which were in line with the provisions
of the Company Law and the Company's Articles of Association and the Procedural Rules for Board
Meetings. The Board consists of four special committees namely Strategy and Investment Committee
Audit Committee Nominations Committee and Remuneration and Evaluation Committee and
formulated the terms of reference and implementation rules for each committee to give full play to
40 / 2442022 Annual Report
professional advantages guarantee the legitimacy scientificity and correctness of collective decisions
made by the Board and reduce the operational risks of the Company.Whether there are material differences between corporate governance and the provisions of laws
administrative regulations and CSRC on the governance of listed companies; if so the reasons should be
given
□Applicable √Not Applicable
II. Specific measures taken by the Controlling Shareholder and the Actual Controller to ensure
the independence of the Company's assets personnel finance departments and business as
well as the solutions work schedule and follow-up work plan made to affect the independence
of the Company
□Applicable √Not Applicable
The situation that the Controlling Shareholder the Actual Controller and other companies under their
control are engaged in the same or similar business as the Company the impact of the horizontal
competition or significant changes in the horizontal competition on the Company solutions taken
progress and the follow-up solutions
□Applicable √Not Applicable
III. Introduction to Shareholders' General Meeting
Media in which
Session of Date of
Date resolutions were Resolutions
meeting disclosure
disclosed
The First April 15 www.sse.com.cn April 16 2022 The Proposal on General Election of the Board of Directors and the
Extraordin 2022 Proposal on General Election of the Supervisory Committee were adopted
ary through deliberation. Details of the above resolutions are set out in the
General Company's Announcement No. 2022-026.Meeting in
2022
2021 June 24 www.sse.com.cn June 25 2022 The Full Text and Summary of the 2021 Annual Report the 2021 Annual
Annual 2022 Work Report of the Board the 2021 Annual Work Report of the Supervisory
General Committee the 2021 Annual Final Accounting Report the Self-evaluation
Meeting Report on Internal Control in 2021 the Profit Distribution Plan for 2021
the Proposal on the Further Employment of Pan-China Certified Public
Accountants LLP and its Remuneration and Proposal on the Application for
Comprehensive Credit Line for 2022 were adopted at the meeting through
deliberation. Details of the above resolutions are set out in the Company's
Announcement No. 2022-038.Second July 19 www.sse.com.cn July 20 2022 The Proposal on Hundsun's 2022 Employee Stock Ownership Scheme
Extraordin 2022 (Draft) and its Summary and the Proposal on Hundsun's Management
ary Measures for 2022 Employee Stock Ownership Scheme and the Proposal on
General Requesting the Shareholders' General Meeting to Authorize the Board of
Meeting of Directors to Handle Matters Related to the 2022 Employee Stock Ownership
2022 Scheme were adopted through deliberation. Details of the above resolutions
are set out in the Company's Announcement No. 2022-046.
2022 Third September www.sse.com.cn September 14 Adopted through deliberation the Proposal on Hundsun's 2022 Stock Option
Extraordin 13 2022 2022 Incentive Plan (Draft) and Its Summary the Proposal on the Management
ary Measures for Performance Evaluation under the 2022 Stock Option
General Incentive Plan of Hundsun Technologies Inc. and the Proposal on
Meeting Requesting the Shareholders' General Meeting to Authorize the Board of
Directors to Handle Matters Related to the 2022 Stock Option Incentive
Plan. Details of the above resolutions are set out in the Company's
Announcement No. 2022-065.
41 / 2442022 Annual Report
The preferred shareholders with resumed voting rights request for an extraordinary general meeting
□Applicable √Not Applicable
Information of Shareholders’ General Meetings
□Applicable √Not Applicable
42 / 2442022 Annual Report
IV. Directors Supervisors and Senior Management
(I) Changes in Shareholding and Remuneration of Directors Supervisors and Senior Management Currently in Office and Resigned during the Reporting
Period
√Applicable □Not Applicable
Unit: share
Total pre-tax
remuneration Whether to
Number of Number of Change in received from receive
Date of term Date of term shares held at shares held at shares during the Company compensation
Name Position (Note) Gender Age Reasons
commencement expiration the beginning the end of the the Reporting during the from related
of the year year Period Reporting parties of the
Period (RMB Company
10000)
Equity
Liu distribution of
Chairman Male 53 2022-04-15 2025-04-14 12134409 15774732 3640323 1032.03 No
Shufeng the Company in
2021
Equity
Vice Chairman distribution of
Fan Jingwu Male 52 2022-04-15 2025-04-14 1272080 1653704 381624 750.46 No
and President the Company in
2021
Equity
Peng distribution of
Director Male 54 2022-04-15 2025-04-14 15000000 19500000 4500000 758.71 No
Zhenggang the Company in
2021
Equity
Jiang distribution of
Chief Supervisor Male 52 2022-04-15 2025-04-14 27820528 36166686 8346158 699.67 No
Jiansheng the Company in
2021
Jing
Director Male 51 2019-04-19 2022-04-15
Xiandong
Han Xinyi Director Male 46 2022-04-15 2025-04-14
Ji Gang Director Male 49 2022-04-15 2025-04-14
Zhu Chao Director Male 43 2022-04-15 2025-04-14
43 / 2442022 Annual Report
Yu Bin Director Male 46 2022-04-15 2025-04-14
Wang Independent
Male 66 2022-04-15 2025-04-14 24.00
Xiangyao Director
Liu Independent
Male 51 2022-04-15 2025-04-14 24.00
Xiaolun Director
Independent
Liu Lanyu Female 57 2019-04-19 2022-04-15 7.00
Director
Independent
Ding Wei Male 63 2022-04-15 2025-04-14 24.00
Director
Independent
Zhou Chun Female 35 2022-04-15 2025-04-14 17.00
Director
Huang
Supervisor Male 43 2019-04-19 2022-04-15
Chenli
Chen Zhijie Supervisor Male 41 2022-04-15 2025-04-14
Xie Lijuan Supervisor Female 41 2022-04-15 2025-04-14 74.20 No
Equity
Guan Deputy General distribution of
Male 52 2022-04-15 2025-04-14 2153329 2799328 645999 422.89 No
Xiaolan Manager the Company in
2021
Zhang Deputy General
Male 46 2022-04-15 2025-04-14 382.67 No
Guoqiang Manager
Zhang Deputy General
Male 46 2022-04-15 2025-04-14 423.75 No
Yong Manager
Deputy General
Wang Feng Male 46 2022-04-15 2025-04-14 295.41 No
Manager
Deputy General
Bai Shuo Male 67 2022-04-15 2025-04-14 203.49 No
Manager
Han Deputy General
Male 52 2022-04-15 2025-04-14 180.34 No
Haichao Manager
Fang Deputy General
Male 46 2022-04-15 2025-04-14 308.17 No
Xiaoming Manager
Deputy General
Ni Shouqi Male 50 2022-04-15 2025-04-14 234.85 No
Manager
Deputy General
Zhou Feng Male 60 2022-04-15 2025-04-14 225.06 No
Manager
44 / 2442022 Annual Report
Yao
Head of Finance Female 48 2022-04-15 2025-04-14 127.51 No
Manying
Secretary of the
Tu Haiyan Board of Female 53 2022-04-15 2025-04-14 125.90 No
Directors
Tong Deputy General
Male 51 2019-04-19 2022-04-15 76.41 No
Chenghui Manager
Deputy General
Fu Meiying Female 68 2019-04-19 2022-04-15 189.39 No
Manager
Equity
Zhang Deputy General distribution of
Male 55 2022-04-15 2022-09-09 237 71 308 244.21
Xiaodong Manager the Company in
2021
Total / / / / / 58380583 75894521 17514412 / 6851.12 /
Name Major work experience
Liu Shufeng one of the co-founders who founded the Company in 1995 and currently serves as the Company’s Chairman.Fan Jingwu He joined the Company in 1996 and currently serves as the Vice Chairman and President of the Company.Peng one of the co-founders who founded the Company in 1995 and currently serves as the Company’s Director.Zhenggang
Jiang Jiansheng one of the co-founders who founded the Company in 1995 and currently serves as the Company’s Chief Supervisor.Han Xinyi the Director and CFO of Ant Group Co. Ltd.Ji Gang He serves as the Vice President of Ant Group Co. Ltd.Yu Bin He serves as the General Manager of CTO Digital Technology Division of Ant Group Co. Ltd.Zhu Chao the senior director and head of the Corporate Development Department of Ant Group Co. Ltd.Chen Zhijie the director of the Investment and Corporate Development Department of Ant Group Co. Ltd.Ding Wei Born in 1960 he graduated from the Finance Department of Renmin University of China in 1982 studied for a doctoral degree in the Department of Economics
of the University of Texas at Austin with the Fulbright scholarship from 1984 to 1987 and completed the executive training course at Harvard Business School
in 1998. With extensive experience in banking and finance He worked for the World Bank Deutsche Bank CICC Temasek and other organizations and
institutions and is currently the founder and chairman of Borun Capital.Wang Born in 1957 he is a senior accountant Chinese CPA doctor of economics accounting professor and doctoral supervisor. He has won the first and second
Xiangyao prizes of the Higher Teaching Achievement Award of Zhejiang Province the Outstanding Achievement Award of Philosophy and Social Sciences of Zhejiang
Province and many other awards. He is also the deputy director of the Accounting Standards Professional Committee of the Chinese Accounting Association
an academic member of the Internal Audit Society and an independent director of BeingMate Co. Ltd. and the Company.
45 / 2442022 Annual Report
Liu Xiaolun He has a Ph.D. in Business Management (Corporate Governance) and is currently the executive director of the Institute of Finance of Beijing National
Accounting Institute the professor in charge of the risk management and internal control program/China Financial Industry CRO Training Program and the
supervisor of master students of Beijing National Accounting Institute/Tsinghua University/Ministry of Finance Academy of Finance. He was the senior auditor
and senior experienced auditor of PricewaterhouseCoopers and Andersen * Hua Qiang Certified Public Accountant and the first and second director of the
Institute of Audit and Risk Management of the National Accounting Institute and is also a member of the 7th Committee on Internal Control Standards of China
Accounting Society a member of the 8th Fundamental Accounting Theory Committee of China Accounting Society a non-practicing member of CICPA a
member of the Association of Certified Fraud Examiners (ACFE) and an honorary member of the Institute of Management Accountants (IMA).Zhou Chun Born in 1988 he is currently an Associate Professor at Zhejiang University Guanghua Law School Zhejiang University Guanghua Law School and holds a
Bachelor's degree in Law from Peking University a Master's degree in Law from Columbia University (James Kent Scholar) and a Doctorate in Law from
Peking University. His research interests include corporate law securities law financial regulation comparative corporate governance etc. He is also a council
member of Securities Law Research Association of China Law Society and a council member of Commercial Law Research Association of China.Xie Lijuan joined the Company in 2010 and is currently the Employee Supervisor and director of the audit office of the Company.Guan Xiaolan joined the Company in 1996 and is currently the Deputy General Manager of the Company
Zhang joined the Company in 1999 and is currently the Deputy General Manager of the Company
Guoqiang
Zhang Yong joined the Company in 2004 and is currently the Deputy General Manager of the Company
Wang Feng joined the Company in 2001 and is currently the Deputy General Manager of the Company
Bai Shuo joined the Company in 2021 and is currently the Deputy General Manager of the Company
Han Haichao joined the Company in 2021 and is currently the Deputy General Manager of the Company
Fang Xiaoming joined the Company in 1999 and is currently the Deputy General Manager of the Company
Ni Shouqi joined the Company in 1998 and is currently the Deputy General Manager of the Company
Zhou Feng joined the Company in 1999 and is currently the Deputy General Manager of the Company
Yao Manying joined the Company in 2000 and is currently the Head of Finance of the Company.Tu Haiyan She joined the Company in 2000 and currently serves as the Secretary of the Board of Directors of the Company
Jing Xiandong the Chairman and CEO of Ant Group Co. Ltd.Huang Chenli He serves as the Investment Director of Ant Group Co. Ltd.Other information
□Applicable √Not Applicable
46 / 2442022 Annual Report
(II) Positions of Directors Supervisors and Senior Management Currently in Office and Resigned
during the Reporting Period
1. Position in the Shareholder's Entity
√Applicable □Not Applicable
Name of the Position in the Date of term Date of term
Name of officer
Shareholder's entity Shareholder's entity commencement expiration
Zhu Chao Hangzhou Hundsun Executive Director July 15 2022
Electronics Group Co. (Legal
Ltd. Representative)
Han Xinyi Hangzhou Hundsun Executive Director September 10 2018 July 15 2022
Electronics Group Co. General Manager
Ltd. and Legal
Representative
Explanation on
position in the
shareholder's
entity
(III) Compensation of Directors Supervisors and Senior Management
√Applicable □Not Applicable
Decision-making process of During the Reporting Period the remuneration of Directors Supervisors
compensation of Directors and Senior Management who receive remuneration from the Company is
Supervisors and Senior determined in accordance with the regulations on remuneration
Management assessment established by the Company.Basis for determining the Based on the wage base and appraisal principles determined by the Board
remuneration of Directors annual remuneration is paid based on the results of the annual performance
Supervisors and Senior appraisal.Management
Actual payment of remuneration to Please refer to Section "Changes in Shareholding and Remuneration of
Directors Supervisors and Senior Directors Supervisors and Senior Management Currently in Office and
Management Resigned during the Reporting Period" for details
Total payment of remuneration See notes for details
before tax to Directors Supervisors
and Senior Management as at the
end of the Reporting Period
(IV) Change of Directors Supervisors and Senior Management of the Company
√Applicable □Not Applicable
Name Position Changes Reasons
Liu Shufeng Chairman Elected General election of the
Board of Directors
Liu Shufeng President Resigned Term expires
Fan Jingwu Deputy Chairman Elected General election of the
Board of Directors
Fan Jingwu President Appointment Appointment by the Board
of Directors
Jiang Jiansheng Chief Supervisor Elected General election of the
Supervisory Committee
Jiang Jiansheng Director Resigned Term expires
Peng Zhenggang Chairman Resigned Term expires
Peng Zhenggang Director Elected General election of the
Board of Directors
Huang Chenli Supervisor Resigned Term expires
47 / 2442022 Annual Report
Ji Gang Director Elected General election of the
Board of Directors
Jing Xiandong Director Resigned Term expires
Zhou Chun Independent Director Elected General election of the
Board of Directors
Liu Lanyu Independent Director Resigned Term expires
Bai Shuo Deputy General Manager Appointment Appointment by the Board
of Directors
Han Haichao Deputy General Manager Appointment Appointment by the Board
of Directors
Fang Xiaoming Deputy General Manager Appointment Appointment by the Board
of Directors
Zhang Xiaodong Deputy General Manager Resigned Resignation for personal
reasons
Fu Meiying Deputy General Manager Resigned Term expires
Tong Chenghui Deputy General Manager Resigned Term expires
(V) Details of Fines Imposed by Securities Regulatory Bodies in the Past Three Years
□Applicable √Not Applicable
(VI) Others
□Applicable √Not Applicable
V. Board Meetings Held During the Reporting Period
Session of
Date Resolutions
meeting
22nd meeting February The Proposal on the Repurchase of the Company's Shares through Call Auction
of the 14 2022 Trading was adopted through deliberation. Details of the above resolutions are set
Seventh out in the Company's Announcement No. 2022-002.Board of
Directors
23rd meeting March 29 Adopted through deliberation the Full Text and Summary of the 2021 Annual
of the 2022 Report of the Company the 2021 Work Report of General Manager of the
Seventh Company the 2021 Annual Work Report of the Board of Directors of the
Board of Company the 2021 Annual Final Accounts Report of the Company the 2021
Directors Annual Work Report of the Audit Committee of the Company the 2021 Annual
Work Report of the Remuneration and Evaluation Committee of the Company the
2021 Annual Work Report of the Strategy and Investment Committee of the
Company the 2021 Annual Work Report of the Nomination Committee of the
Company the 2021 Self-evaluation Report on Internal Control of the Company
the Proposal on the Further Appointment of Pan-China Certified Public
Accountants LLP and its Remuneration the Profit Distribution Plan for 2021 the
2021 Social Responsibility Report of the Company the Proposal on the
Application for Comprehensive Credit Line for 2022 the Proposal on the
Company's Expected Related Party Transactions in Relation to Day-to-day
Operation in 2022 the Proposal on the Acquisition of the Equity Interest in the
Controlled Subsidiary Business Intelligence Info. Tech. and Related Party
Transactions the Proposal on Initiation of the Hundsun Phase I Software Industry
Fund and the Proposal on the Requesting the Holding of the Shareholders'
General Meetings for 2021. Details of the above resolutions are set out in the
Company's Announcement No. 2022-011.
24th meeting March 30 Adopted through deliberation the Proposal on the General Election of the Board
of the 2022 of Directors and the Proposal on Requesting the Holding of the First
Seventh Extraordinary General Meeting for 2022. Details of the above resolutions are set
Board of out in the Company's Announcement No. 2022-020.Directors
48 / 2442022 Annual Report
1st meeting of April 15 Elected Mr. Liu Shufeng as the Chairman of the Company and Mr. Fan Jingwu
the Eighth 2022 as the Vice Chairman of the Company proposed to appoint Mr. Fan Jingwu as
Board of the new President of the Company and appointed Ms. Tu Haiyan as the
Directors Secretary of the Board of Directors; appointed all members of the Audit
Committee Remuneration and Evaluation Committee and Strategy and
Investment Committee and Nomination Committee; and appointed Vice
Presidents and the Head of Finance. Details of the above resolutions are set out in
the Company's Announcement No. 2022-027.
2nd meeting of April 26 The First Quarterly Report of 2022 and the Q1 Work Report of the President in
the Eighth 2022 2022 were adopted at the meeting through deliberation. Details of the above
Board of resolutions are set out in the Company's Announcement No. 2022-029.Directors
3rd meeting of July 1 Adopted through deliberation the Proposal on the 2022 Employee Stock
the Eighth 2022 Ownership Scheme (Draft) of Hundsun Technologies Inc. and Its Summary the
Board of Proposal on the Management Measures for 2022 Employee Stock Ownership
Directors Scheme of Hundsun Technologies Inc. the Proposal on Requesting the
Shareholders' General Meeting to Authorize the Board of Directors to Handle
Matters Related to the Employee Stock Ownership Scheme the Proposal on
Revising the Organization and Working Procedures of the President's Office
Meeting of Hundsun Technologies Inc. the Proposal on Revising the Organization
and Working Procedures of the Strategy and Investment Committee of the Board
of Directors of Hundsun Technologies Inc. and the Proposal on the Requesting the
Holding of the Second Extraordinary General Meeting for 2022 . Details of the
above resolutions are set out in the Company's Announcement No. 2022-039.
4th meeting of August 24 Adopted through deliberation the 2022 Semi-Annual Report of the Company the
the Eighth 2022 2022 Semi-Annual Work Report of the President of the Company the Proposal on
Board of the 2022 Stock Option Incentive Plan (Draft) of Hundsun Technologies Inc. and
Directors Its Summary the Proposal on Hundsun Technologies Inc.'s Management
Measures for the Implementation of the 2022 Stock Option Incentive Plan the
Proposal on Requesting the Shareholders' General Meeting to Authorize the Board
of Directors to Handle Matters Related to the 2022 Stock Option Incentive Plan
the Proposal on the Acquisition of the Controlled Subsidiary Shanghai Dworld by
the Controlled Subsidiary Gildata and Related Party Transactions and the
Proposal on Requesting the Holding of the Third Extraordinary General Meeting
for 2022 were adopted through deliberation. Details of the above resolutions are
set out in the Company's Announcement No. 2022-054.
5th meeting of September Adopted through deliberation the Proposal on Adjusting the List of Participants
the Eighth 13 2022 and the Number of Options Granted under the 2022 Stock Option Incentive Plan
Board of and the Proposal on the Initial Granting of Stock Options to the Participants under
Directors the 2022 Stock Option Incentive Plan. Details of the above resolutions are set out
in the Company's Announcement No. 2022-067.
6th meeting of October Adopted through deliberation the Third Quarterly Report of 2022 of the Company
the Eighth 25 2022 the Third Quarterly Work Report of the President of 2022 of the Company and the
Board of Proposal on Applying for Budgeted Funds Required to Repurchase Shares under
Directors Some Employee Stock Ownership Schemes of Innovative Business Subsidiaries.Details of the above resolutions are set out in the Company's Announcement No.
2022-076.
VI. The Performance of Directors' Duties
(I) The Attendance of Directors at Board Meetings and General Meetings
Attendanc
Independen e at
Name of Attendance at Board meetings
t director or general
Director
not meetings
Number Number Number of Number Time(s) Two Number of
49 / 2442022 Annual Report
of Board of meetings attended of of consecutiv general
meetings meetings by way of meetings Absence e Board meetings
to be attended telecommunicatio attended meetings attended
attended in n by proxy not
this year person attended in
person or
not
Liu No 9 9 3 0 0 No 4
Shufeng
Peng No 9 9 3 0 0 No 4
Zhenggan
g
Fan No 6 6 2 0 0 No 4
Jingwu
Han Xinyi No 9 9 3 0 0 No 0
Ji Gang No 6 6 2 0 0 No 0
Zhu Chao No 9 9 3 0 0 No 0
Yu Bin No 9 9 3 0 0 No 0
Ding Wei Yes 9 9 3 0 0 No 0
Wang Yes 9 9 3 0 0 No 1
Xiangyao
Liu Yes 9 9 3 0 0 No 0
Xiaolun
Zhou Yes 6 6 2 0 0 No 3
Chun
Jiang No 3 3 1 0 0 No 4
Jiansheng
Jing No 3 3 1 0 0 No 0
Xiandong
Liu Lanyu Yes 3 3 1 0 0 No 0
Explanation on non-attendance in person by Directors at two consecutive Board meetings
□Applicable √Not Applicable
Number of Board meetings held during the year 9
Including: Number of on-site meetings 0
Number of meetings held by way of 3
telecommunication
Number of meetings held by a combination of on-site 6
and telecommunication
(II) Objection to Related Matters of the Company by Independent Directors
□Applicable √Not Applicable
(III) Others
□Applicable √Not Applicable
VII. Special Committees Under the Board
√Applicable □Not Applicable
(1) Membership of special committees under the Board
Name of special committee Member name
Wang Xiangyao Liu Xiaolun Ding Wei Peng Zhenggang Zhu
Audit Committee
Chao
50 / 2442022 Annual Report
Liu Xiaolun Wang Xiangyao Zhou Chun Liu Shufeng Ji
Nominations Committee
Gang
Remuneration and Evaluation
Ding Wei Liu Xiaolun Zhou Chun Liu Shufeng Han Xinyi
Committee
Peng Zhenggang Liu Shufeng Fan Jingwu Han Xinyi Zhu
Strategy Committee
Chao
(2) The Strategy Committee held one meeting during the Reporting Period
Important comments and
Date Meeting content Other performance of duties
suggestions
March 29 To deliberate the 2021 The attending members adopted None
2022 Annual Work Report of the Proposal through serious
the Strategy and discussion and deliberation and
Investment Committee agreed to submit the Proposals to
the Board for deliberation.
(3) The Remuneration Committee held 4 meetings during the Reporting Period
Important comments and Other performance of
Date Meeting content
suggestions duties
March 29 To deliberate the 2021 Annual Work The attending members None
2022 Report of the Remuneration and adopted the Proposal through
Evaluation Committee serious discussion and
deliberation and agreed to
submit the Proposals to the
Board for deliberation.June 29 Deliberated the Proposal on the 2022 The attending members None
2022 Employee Stock Ownership Scheme adopted the Proposal through
(Draft) of Hundsun Technologies Inc. serious discussion and
and Its Summary the Proposal on the deliberation and agreed to
Management Measures for 2022 submit the Proposals to the
Employee Stock Ownership Scheme of Board for deliberation.Hundsun Technologies Inc. and the
Proposal on Requesting the
Shareholders' General Meeting to
Authorize the Board of Directors to
Handle Matters Related to the Employee
Stock Ownership Scheme
August 19 Deliberated the Proposal on the 2022 The attending members None
2022 Stock Option Incentive Plan (Draft) of adopted the Proposal through
Hundsun Technologies Inc. and Its serious discussion and
Summary the Proposal on the deliberation and agreed to
Management Measures for the 2022 submit the Proposals to the
Stock Option Incentive Plan of Hundsun Board for deliberation.Technologies Inc. and the Proposal on
Requesting the Shareholders' General
Meeting to Authorize the Board of
Directors to Handle Matters Related to
the 2022 Stock Option Incentive Plan
September Deliberated the Proposal on Adjusting The attending members None
13 2022 the List of Participants and the Number of adopted the Proposal through
Options Granted under the 2022 Stock serious discussion and
Option Incentive Plan and the Proposal deliberation and agreed to
on Initially Granting Stock Options to the submit the Proposals to the
Participants under the 2022 Stock Option Board for deliberation.
51 / 2442022 Annual Report
Incentive Plan
(4) The Nominations Committee held one meeting during the Reporting Period
Important comments and Other performance
Date Meeting content
suggestions of duties
March 25 Deliberated the 2021 Annual Work Report of The attending members None
2022 the Nomination Committee and the Proposal adopted the Proposal through
on the General Election of the Board of serious discussion and
Directors of the Company deliberation and agreed to
submit the Proposals to the
Board for deliberation.
(5) The Audit Committee held 7 meetings during the Reporting Period
Important comments and Other performance
Date Meeting content
suggestions of duties
January 5 1. Deliberated the 2021 Annual Audit The attending members None
2022 Plan of Hundsun unanimously adopted the
2021 Annual Audit Plan of
Hundsun upon careful
discussions.March 24 Listened to 1. the Report of Pan-China The attending members 1. None
2022 Certified Public Accountants LLP on the carefully communicated with
Audit Results of Hundsun for 2021; 2. the the accountants about the
2021 Annual Work Summary of Internal problems found in the audit
Audit and the 2022 Annual Work Plan process and put forward
constructive opinions and
suggestions; 2. affirmed the
work of the internal audit in
2021 approved the 2022
Annual Work Plan of the
Internal Audit and put
forward constructive
opinions.March 24 Deliberated 1.the Full Text and Summary The attending members None
2022 of the 2021 Annual Report of the adopted all the proposals
Company; 2. the 2021 Self-evaluation through serious discussion
Report on Internal Control of the and deliberation and agreed
Company; 3. the Proposal on the Further to submit the proposals to the
Appointment of Pan-China Certified Board for deliberation.Public Accountants LLP and its
Remuneration; 4. the Profit Distribution
Plan for 2021; 5. the Proposal on the
Company's Expected Related Party
Transactions in Relation to Day-to-day
Operation in 2022; 6. the Proposal on the
Acquisition of the Equity Interest in the
Controlled Subsidiary Business
Intelligence Info. Tech. and Related Party
Transactions
April 26 1. To deliberate the First Quarterly The attending members None
2022 Report of 2022 adopted the Proposal through
serious discussion and
deliberation and agreed to
52 / 2442022 Annual Report
submit the Proposals to the
Board for deliberation.August 22 Deliberated1. the 2022 Semi-annual The attending members None
2022 Report of the Company; 2. the Proposal adopted the Proposal through
on the Acquisition of the Controlled serious discussion and
Subsidiary Shanghai Dworld by the deliberation and agreed to
Controlled Subsidiary Gildata and submit the Proposals to the
Related Party Transactions Board for deliberation.October 25 Deliberated 1. the Third Quarterly Report The attending members None
2022 of 2022 of the Company; 2. the Proposal adopted the Proposal through
on Applying for Budgeted Funds Required serious discussion and
to Repurchase Shares under Some deliberation and agreed to
Employee Stock Ownership Schemes of submit the Proposals to the
Innovative Business Subsidiaries Board for deliberation.November 1. Listened to the 2022 Annual Pre-audit The attending members None
29 2022 Review Report and Financial and carefully communicated with
Operational Analysis of Hundsun the accountants about the
problems found during the
2022 annual pre-audit review
and put forward specific
requirements.
(6) Details of matters in question
□Applicable √Not Applicable
VIII. Explanation on Existence of Risks Discovered by the Supervisory Committee
□Applicable √Not Applicable
The Supervisory Committee had no objection to the matters supervised during the Reporting Period.IX. Employees of the Parent Company and Main Subsidiaries at the End of the Reporting Period
(I) Employees
Number of employees in the parent company 8690
Number of employees in main subsidiaries 4657
Total number of employees on job 13347
Number of the retired staff with expenses borne by the
parent company and main subsidiaries
Professions
Type of professions Number of employees
On-site implementation 1770
Product technology 9788
Marketing and sales 394
Functional management 622
Customer services 773
Total 13347
Level of education
Level of education Number of employees
Master's degree and above 1636
Bachelor's degree 10687
Junior college and below 1024
Total 13347
53 / 2442022 Annual Report
(II) Remuneration Policy
√Applicable □Not Applicable
The remuneration of the Company’s employees includes salaries bonuses and other benefit plans. In
compliance with relevant PRC laws and regulations the Company implements different remuneration
standards for different employees based on their positions abilities performance and other factors.(III) Training Plan
√Applicable □Not Applicable
The Company focuses on improving the overall quality of the workforce and formulates talents
training plans according to the development needs of various talents so that the Company’s management
level and human resources can be continuously improved.(IV) Labor Outsourcing
√Applicable □Not Applicable
Total hours outsourcing 12801.09 person·month
Total payment for labor outsourcing RMB 226282500
X. Plan for Profit Distribution or Conversion of Common Reserve Fund into Share Capital
(I) Formulation Implementation or Adjustment to the Cash Dividend Policy
√Applicable □Not Applicable
During the Reporting Period the Company implemented the Profit Distribution Plan for 2021. On
August 12 2022 the Company disclosed the Announcement on the Implementation of the Dividend
Distribution Plan for 2021 with a specific distribution plan of a cash dividend of RMB0.1 per share and
0.3 bonus shares per share. As the actual number of shares for profit distribution was 1461486540 the
total cash dividend distributed by the Company was RMB146148654 (including tax) and the number of
bonus shares distributed was 438445962. The Company had 1900006442 shares outstanding after the
share distribution.(II) Special Explanation on Cash Dividend Policy
√Applicable □Not Applicable
Whether it complies with the provisions of the Articles of Association or the √Yes □No
requirements of resolutions of the general meetings
Whether the dividend standard and proportion are well defined and clear √Yes □No
Whether the relevant decision-making procedures and mechanisms are complete and √Yes □No
sound;
Whether the Independent Directors have performed their duties and played their due √Yes □No
roles
Whether the minority shareholders have the opportunity to fully express their √Yes □No
opinions and demands and whether their legitimate rights and interests are fully
protected
(III) If the Company was Profitable during the Reporting Period and the Parent Recorded
Profits Distributable to the Shareholders but No Cash Profit Distribution Plan was Proposed
the Company Shall Disclose in Detail the Reasons for Non-Distribution as Well as the Use and
Future Plans of the Undistributed Profits
□Applicable √Not Applicable
54 / 2442022 Annual Report
(IV) Profit Distribution and Transfer from Capital Reserve to Share Capital during the
Reporting Period
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Number of Bonus Shares Per 10 Shares (share) 3
Number of dividends per 10 shares (RMB) (tax-
1
inclusive)
Number of Transfer per 10 shares (share) 0
Amount of cash dividends (tax included) 146148654
Net profits attributable to common shareholders of
listed companies in consolidated statements in 1463538930.14
dividend-receiving year
Proportion to the net profit attributable to ordinary
shareholders of the Company in the consolidated 9.99
financial statements (%)
Amount of buy-back of share in cash to be included in
682524351.4
the cash bonus
Total of cash dividends (tax included) 828673005.4
Proportion of the total amount of dividends to the net
profit attributable to ordinary shareholders of the 56.62
Company in the consolidated financial statements (%)
XI. The Company's Share Incentive Scheme Employee Stock Ownership Scheme or Other
Employee Incentives and the Impact Thereof
(I) Incentives Disclosed in the Temporary Announcements and without Progress or Changes in
Subsequent Implementation
√Applicable □Not Applicable
Summary of events Enquiry index
2022 Employee Stock Ownership Announcement No. 2022-042 www.sse.com.cn
Scheme (Draft) of the Company
Management Measures for 2022 www.sse.com.cn
Employee Stock Ownership Scheme
of the Company
Announcement on the Completion of Announcement No. 2022-047 www.sse.com.cn
Non-trade Stock Transfer under the
2022 Employee Stock Ownership
Scheme
Announcement on the Resolutions of Announcement No. 2022-051 www.sse.com.cn
the First Meeting of the Holders
under the 2022 Employee Stock
Ownership Scheme
2022 Stock Option Incentive Plan www.sse.com.cn
(Draft) of the Company
Announcement on Adjusting the List Announcement No. 2022-069 www.sse.com.cn
of Participants and the Number of
Options Granted under the 2022
Stock Option Incentive Plan
Announcement on the Initial Announcement No. 2022-070 www.sse.com.cn
Granting of Stock Options to
Participants under the 2022 Stock
Option Incentive Plan
55 / 2442022 Annual Report
Announcement on the Completion of Announcement No. 2022-073 www.sse.com.cn
Registration for Stock Options
Granted under the 2022 Stock Option
Incentive Plan
(II) Incentives Undisclosed in Temporary Announcements or with Progress in Subsequent
Implementation
Share incentives
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
Employee Stock Ownership Scheme
□Applicable √Not Applicable
Other incentives
□Applicable √Not Applicable
(III) Share Incentives Granted to Directors and Senior Management during the Reporting Period
√Applicable □Not Applicable
Unit: share
Shares
Number of
issued Number Market
Number of stock
Exercisable upon Exercise of stock price at
stock options
shares exercise of price of options the end of
options newly
Name Position during the stock stock held at the the
held at the granted
Reporting options options end of the Reporting
beginning during the
Period during the (RMB) Reporting Period
of the year Reporting
Reporting Period (RMB)
Period
Period
Fan Vice Chairman and 0 467000 0 0 34.88 467000 40.46
Jingwu President
Zhang Vice President 0 415000 0 0 34.88 415000 40.46
Yong
Zhang Vice President 0 386000 0 0 34.88 386000 40.46
Guoqiang
Guan Vice President 0 343000 0 0 34.88 343000 40.46
Xiaolan
Wang Vice President 0 281000 0 0 34.88 281000 40.46
Feng
Fang Vice President 0 271000 0 0 34.88 271000 40.46
Xiaoming
Han Vice President 0 187000 0 0 34.88 187000 40.46
Haichao
Bai Shuo Vice President 0 176000 0 0 34.88 176000 40.46
Ni Shouqi Vice President 0 123000 0 0 34.88 123000 40.46
Zhou Vice President 0 97000 0 0 34.88 97000 40.46
Feng
Yao Head of Finance 0 94000 0 0 34.88 94000 40.46
Manying
Tu Haiyan Secretary of the 0 87000 0 0 34.88 87000 40.46
Board of Directors
Total / 0 2927000 0 0 / 2927000 /
56 / 2442022 Annual Report
(IV) Establishment and Implementation of Appraisal Mechanism and Incentive Mechanism for
Senior Management During the Reporting Period
□Applicable √Not Applicable
XII. Establishment and Implementation of Internal Control System during the Reporting period
√Applicable □Not Applicable
For details please refer to the Company's Internal Control Assessment Report 2022 as disclosed on the
website of the Shanghai Stock Exchange at www.sse.com.cn.Explanation on Significant Deficiencies in Internal Control During the Reporting Period
□Applicable √Not Applicable
XIII. Management Control over the Subsidiaries During the Reporting Period
√Applicable □Not Applicable
According to the Company Law the Articles of Association and other relevant laws regulations and
rules as well as the provisions of the Management Rules for Holding Subsidiaries the Company guided
managed and supervised its subsidiaries and explicitly required the subsidiaries to operate in a
standardized manner to make financial management and operation decisions in compliance to extend
their efforts in reporting related party transactions external guarantees foreign investments and other
important matters to the Company in advance and to strengthen the collaborative management of
technology research and development sales and other aspects to jointly safeguard the Company's rights
and interests.XIV. Information on Audit Report of Internal Control
√Applicable □Not Applicable
For details of the report please refer to the website of Shanghai Stock Exchange: www.sse.com.cn
Whether or not to disclose the audit report of internal control: Yes
Type of opinion on the audit report on internal control: Standard unqualified opinion
XV. Rectification of Problems Identified in the Self-Inspection over the Company's Special
Governance Measures
The Company had rectified several problems identified in the self-inspection in a targeted manner.At present there is only the problem of requiring Independent Directors to work on the spot which cannot
be implemented temporarily due to external conditions.XVI. Others
□Applicable √Not Applicable
Section V Environmental and Social Responsibility
I. Environmental Information
Whether any environmental protection-related Yes
mechanisms are in place
Funds invested in environmental protection during the 208.84
Reporting Period (RMB 10000)
(I) Explanation on Environmental Protection of Companies and Their Significant Subsidiaries
Classified as the Key Pollutant Discharging Entities Announced by the Environmental
Protection Department
□Applicable √Not Applicable
57 / 2442022 Annual Report
(II) Environmental Protection of the Companies Other than Key Pollutant Discharging Entities
√Applicable □Not Applicable
1. Administrative penalties imposed for environmental problems
□Applicable √Not Applicable
2. Disclosure of other environmental information with reference to key pollutant discharging
entities
√Applicable □Not Applicable
The Company is mainly engaged in providing software products and services to domestic financial
institutions in which the resources used are mainly human resources and the products produced are
mainly software systems data and various platform services so there is almost no environmental
pollution.
3. Reasons for failure to disclose other environmental information
□Applicable √Not Applicable
(III) Relevant information that is conducive to ecological protection pollution prevention and
environmental responsibility fulfillment
□Applicable √Not Applicable
(V) Measures taken to reduce carbon emissions during the Reporting Period and their effectiveness
Whether any carbon emission reduction Yes
measures are taken
Reduced carbon dioxide equivalent -3411
emissions (tonnes)
Types of carbon emission reduction Digital energy consumption management garbage sorting
measures (e.g. use of clean energy for power paperless office special water-saving measures and special
generation application of carbon emission power-saving measures
reduction technologies during production
R&D and production of new products that
help reduce carbon emissions)
Detailed description
□Applicable √Not Applicable
II. Social Responsibility
(I) Whether the social responsibility report sustainable development report or ESG report is
disclosed separately
√Applicable □Not Applicable
For details please refer to the Environmental Social and Governance (ESG) Report and Corporate
Social Responsibility Report of Hundsun as disclosed on the website of the Shanghai Stock Exchange at
www.sse.com.cn.(II) Social Responsibility
√Applicable □Not Applicable
Charitable donations and public Amount/Content Description
welfare programs
Total investment (RMB 10000) 126.11
58 / 2442022 Annual Report
Including: funds (RMB 10000) Mainly including without limitation the
rehabilitation program for autistic children
the support program for students in poverty
areas the program to promote the quality of
94.72
national education the program to fulfill the
dreams of children from disadvantaged
families and the "Future Financiers"
financial education public welfare class.Monetary value of goods and
31.39
materials (RMB 10000)
Number of beneficiaries 1583
Detailed description
□Applicable √Not Applicable
III. Details on the Company Consolidating and Expanding Its Achievements in Poverty
Alleviation and Rural Revitalization
□Applicable √Not Applicable
Detailed description
□Applicable √Not Applicable
59 / 2442022 Annual Report
Section VI Significant Events
I. Performance of Commitments
(I) Commitments of the Actual Controller Shareholders Related Parties Acquiring Parties of
the Company and the Company and Other Parties Involved During the Reporting Period or
Subsisting to the Reporting Period
□Applicable √Not Applicable
(II) If the Company Has Made a Profit Forecast as to Its Assets or Projects and the Reporting
Period is within the Profit Estimate Period the Company’s Explanation on whether Its Assets
or Projects Meet Its Previous Profit Forecast and the Reasons
□Yes □No √Not Applicable
(III) Fulfillment of the Performance Commitment and Its Impact on the Goodwill Impairment
Test
□Applicable √Not Applicable
II. Funds for Purposes Other Than for Business Misappropriated by the Controlling Shareholders
and Other Related Parties During the Reporting Period
□Applicable √Not Applicable
III. Illegal Guarantee
□Applicable √Not Applicable
IV. The Company's Notes on the "Non-Standard Opinion Audit Report" of Accounting Firms
□Applicable √Not Applicable
V. Analysis and Explanation of the Reasons for and Effects of Changes in the Accounting Policies
and Accounting Estimates of the Company or Remedies for Major Accounting Errors
(I) Explanations of the Company on the Reasons for and Effects of Changes in the Accounting
Policies and Accounting Estimates
□Applicable √Not Applicable
(II) Analysis and Explanation of the Reasons for and Effects of the Company’s Remedies for Major
Accounting Errors
□Applicable √Not Applicable
(III) Communication with Former Accounting Firms
□Applicable √Not Applicable
(IV) Other Notes
□Applicable √Not Applicable
VI. Appointment and Dismissal of Accounting Firms
Unit: 10000 yuan Currency: RMB
Current appointment
Name of domestic accounting firm Pan-China Certified Public Accountants LLP
Remuneration for domestic accounting firm 130
Term of audit by domestic accounting firm 20
Names of CPA of domestic accounting firm Chen Caiqin and Fei Jun
Duration of audit service provided by CPA with 20
60 / 2442022 Annual Report
domestic accounting firm
Name Remuneration
Accounting firm for internal control Pan-China Certified Public 35
audit Accountants LLP
Explanation on Appointment and Dismissal of Accounting Firms
□Applicable √Not Applicable
Change of the accounting firms during the Audit Period
□Applicable √Not Applicable
VII. Facing the Risk of Suspension of Listing
(I) Reasons for Suspension of Listing
□Applicable √Not Applicable
(II) Measures Taken by the Company
□Applicable √Not Applicable
(III) Situation and Reasons for Termination of Listing
□Applicable √Not Applicable
VIII. Matters Related to Bankruptcy Reorganization
□Applicable √Not Applicable
IX. Major Litigation and Arbitration Matters
□ The Company had significant litigations or arbitrations in the current year. √ The Company had no
significant litigations or arbitrations in the current year.X. Penalties on the Company and Its Directors Supervisors Senior Management Controlling
Shareholders and Actual Controller due to Suspected Violation Of Laws and Regulations and
Rectification
□Applicable √Not Applicable
XI. Explanation on the Integrity of the Company and Its Controlling Shareholders and Actual
Controllers During the Reporting Period
□Applicable √Not Applicable
XIII. Major Related Party Transactions
(I) Related Party Transactions Related to Daily Operations
1. Events Disclosed in the Temporary Announcements and without Progress or Changes in
Subsequent Implementation
√Applicable □Not Applicable
Summary of events Enquiry index
The Announcement on Expected Related Party Announcement No. 2022-016 www.sse.com.cn
Transactions Related to Daily Operations in 2022
2. Events Disclosed in the Temporary Announcements but with Progress or Changes in
Subsequent Implementation
□Applicable √Not Applicable
61 / 2442022 Annual Report
3. Events Undisclosed in the Temporary Announcements
□Applicable √Not Applicable
(II) Related Party Transactions from Acquisition and Disposal of Assets or Equity
1. Events Disclosed in the Temporary Announcements and without Progress or Changes in
Subsequent Implementation
√Applicable □Not Applicable
Summary of events Enquiry index
Announcement on the Acquisition of the Controlled Announcement No. 2022-059 www.sse.com.cn
Subsidiary Shanghai Dworld by the Controlled
Subsidiary Gildata and Related Party Transactions
2. Events Disclosed in the Temporary Announcements but with Progress or Changes in
Subsequent Implementation
□Applicable √Not Applicable
3. Events Undisclosed in the Temporary Announcements
□Applicable √Not Applicable
4. The Performance Achievements during the Reporting Period Shall Be Disclosed if
Undertakings on Performance Are Involved
□Applicable √Not Applicable
(III) Material Related Party Transactions involving Joint Foreign Investments
1. Events Disclosed in the Temporary Announcements and without Progress or Changes in
Subsequent Implementation
□Applicable √Not Applicable
2. Events Disclosed in the Temporary Announcements but with Progress or Changes in
Subsequent Implementation
□Applicable √Not Applicable
3. Events Undisclosed in the Temporary Announcements
□Applicable √Not Applicable
(IV) Claims and Liabilities between Related Parties
1. Events Disclosed in the Temporary Announcements and without Progress or Changes in
Subsequent Implementation
□Applicable √Not Applicable
2. Events Disclosed in the Temporary Announcements but with Progress or Changes in
Subsequent Implementation
□Applicable √Not Applicable
3. Events Undisclosed in the Temporary Announcements
□Applicable √Not Applicable
(V) Financial Business between the Company and Related Financial Companies Holding Financial
Companies and Related Parties
□Applicable √Not Applicable
62 / 2442022 Annual Report
(VI) Others
□Applicable √Not Applicable
XI. Material Contracts And Performance
(I) Trust Contracting and Leasing
1. Trust
□Applicable √Not Applicable
2. Contracting
□Applicable √Not Applicable
3. Leasing
□Applicable √Not Applicable
63 / 2442022 Annual Report
(II) Guarantee
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Guarantees provided by the Company and its subsidiaries to subsidiaries
Total guarantee amount to subsidiaries during the Reporting Period 0
Balance of total guarantees to subsidiaries at the end of the Reporting Period 13800
(B)
Total guarantee amount (including guarantees to subsidiaries) provided by the Company
Total guarantee amount (A+B) 13800
Proportion of total guarantee amount in the Company's net assets (%) 2.03
64 / 2442022 Annual Report
(III) Entrustment of Asset Management
1. Entrusted wealth management
(1) Overall entrusted wealth management
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Outstanding Amount overdue but
Type Source of funds Amount incurred
balance uncollected
Bank financing Self-owned fund 40446.49 33146.15
Others Self-owned fund 27413.16 27413.16
Others
□Applicable √Not Applicable
65 / 2442022 Annual Report
(2) Individual entrusted financial management
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Is there any Amount
Type of Actual entrusted withdrawn
Source Remuneration Annual Expected Actual Via legal
The entrusted Entrusted Expiration Capital accounts profits wealth for
Start date of determination yield income recovery procedures
Engineer wealth amount date Investment or management impairment
funds method (if any) condition or not
management losses plan in the provision
future? (if any)
Directly or indirectly investing in bonds on
the Shanghai Stock Exchange and Shenzhen
Stock Exchange and the inter-bank market
(including but not limited to treasury bonds
central bank bills financial bonds enterprise
bonds corporate bonds medium-term notes
short-term commercial papers private
Ping An placement debt financing instruments SME
Ping An Wealth - Self- private placement bonds and asset-backed
Take
Trust Co. Huijin Bond 10000.00 2021-07-14 2022-01-14 owned securities) bond repos money market funds 4.70% 236.93 236.93
back
Ltd. Investment fund bond investment funds bank deposits as well
Fund No.3 as financial instruments whose investment is
limited to the foregoing (including but not
limited to specific customer asset
management plans of fund management
companies and targeted asset management
plans of securities companies) and other
fixed-income products in which trusts are
permitted by laws and regulations to invest.Mainly investing in investments including but
not limited to (1) bank deposits bond repos
money market instruments such as money
Jinxueqiu market funds and other inter-bank and
Tianli exchange-traded financial instruments; (2)
China Self-
Express Net negotiable certificates of deposit treasury Take
Industrial 57000.00 2021-12-30 2022-01-05 owned 3.00% 26.05 28.13
Worth bonds policy-based financial bonds central back
Bank fund
Financial bank bills short-term commercial papers
Product super short-term commercial papers
medium-term notes enterprise bonds
corporate bonds private placement debt
financing instruments asset-backed
66 / 2442022 Annual Report
securities subordinated bonds and other inter-
bank and exchange market bonds and debt
financing instruments and other fixed-
income short-term investment instruments;
(3) other credit assets that meet the regulatory
requirements.Others
□Applicable √Not Applicable
67 / 2442022 Annual Report
(3) Impairment provision for entrusted wealth management
□Applicable √Not Applicable
2. Entrusted loan
(1) Overall entrusted loan
□Applicable √Not Applicable
Others
□Applicable √Not Applicable
(2) Single entrusted loan
□Applicable √Not Applicable
Others
□Applicable √Not Applicable
(3) Impairment provision for entrusted loans
□Applicable √Not Applicable
3. Others
□Applicable √Not Applicable
(IV) Other Material Contracts
□Applicable √Not Applicable
XIV. Other Significant Events that Have a Significant Impact on Investors' Value Judgments and
Investment Decisions
□Applicable √Not Applicable
Section VII Changes in Shares and Particulars of Shareholders
I. Changes in Shareholding of Shares
(I) Statement of Changes in Shares
1. Statement of Changes in Shares
Unit: share
Before this change Increase (+)/decrease (-) in this change After this change
Conversion
Issuance of the
Proportion Bonus Proportion
Number of new reserve Others Sub-total Number
(%) shares (%)
shares funds into
shares
I. Shares not subject
14615604801004384459624384459621900006442100
to selling restrictions
1. RMB-
denominated 1461560480 100 438445962 438445962 1900006442 100
ordinary shares
II. Total number of
14615604801004384459624384459621900006442100
shares
68 / 2442022 Annual Report
2. Particulars of Changes in Shares
√Applicable □Not Applicable
On August 12 2022 the Company disclosed the Announcement on the Implementation of the
Dividend Distribution Plan for 2021 with a specific distribution plan of a cash dividend of RMB0.1 per
share and 0.3 bonus shares per share. As the actual number of shares for profit distribution was
1461486540 the total cash dividend distributed by the Company was RMB146148654 (including tax)
and the number of bonus shares distributed was 438445962. The Company had 1900006442 shares
outstanding after the share distribution.
3. Effect of Changes in Shares on Financial Indicators such as Earnings per Share and Net Assets
per Share for the Recent Year and the Recent Period (if any)
√Applicable □Not Applicable
The Company issued the announcement on the 2021 equity distribution on August 12 2022 and the
Company distributed a cash dividend of RMB1.00 (including tax) for every 10 shares and 3 bonus shares
for every 10 shares to all shareholders based on the shares outstanding registered on the date of registration
of the implementation of the equity distribution less the number of shares in the special securities
repurchase account of the Company. After the completion of the share distribution the Company had
1900006442 shares in total. The effect of the share change on the relevant financial indicators is as
follows.The same period The same period
January to last year (after last year (before
Key financial indicators
September 2022 changes of changes of
shares) shares)
Basic earnings per share (RMB/share) 0.01 0.77 1.0
Diluted earnings per share
0.010.771.0
(RMB/share)
Net assets per share attributable to
shareholders of the Company 3.01 3.0 3.90
(RMB/share)
4. Other Information that the Company Deems Necessary or as Required by Securities Regulators
□Applicable √Not Applicable
(II) Changes in Restricted Shares
□Applicable √Not Applicable
II. Security Issuance and Listing
(I) Security Issuance during the Reporting Period
□Applicable √Not Applicable
Explanation on the issuance of securities during the Reporting Period (please describe bonds with
different interest rates during the duration separately):
□Applicable √Not Applicable
(II) Changes in Number of Shares and Shareholding of the Company’s Shares and the Changes in
Structure of its Balance Sheet
□Applicable √Not Applicable
69 / 2442022 Annual Report
(III) Existing Internal Staff Shares
□Applicable √Not Applicable
III. Shareholders and Actual Controllers
(I) Total Number of Shareholders
Total number of ordinary Shareholders at the end of the 83319
Reporting Period (Nr.)
Total number of ordinary shareholders at the end of last 83370
month before the disclosure date of the Annual Report
(Nr.)
(II) Shareholding of the Top 10 Shareholders and Top 10 Outstanding Shareholders (or Holders of
Unrestricted Shares) at the End of the Reporting Period
Unit: share
Shareholding of the Top 10 Shareholders
Increase or Number of Pledged Marked or Frozen
Number of
Name of Shareholder Decrease during Shares Held At Proportion Shares Nature of
Restricted
(Full Name) the Reporting the End of the (%) Shareholder
Shares Status of Shares Number
Period Period
Domestic
Hangzhou Hundsun
non-state-
Electronics Group Co. 90863789 393743087 20.72 0 None
owned
Ltd.corporate
Hong Kong Securities
Overseas
Clearing Company 36650190 260404626 13.71 0 Unknown
corporate
Limited
Domestic
Jiang Jiansheng 8346158 36166686 1.90 0 None
natural person
Zhou Lin’gen 7767865 33660748 1.77 0 Unknown Unknown
China Securities Finance State-owned
5754732 24937171 1.31 0 Unknown
Corporation Limited corporate
Overseas
Peng Zhenggang 4500000 19500000 1.03 0 None
natural person
Industrial and
Commercial Bank of
China Limited - Guangfa
State-owned
Multi-factor Flexible 4966378 17831685 0.94 0 Unknown
corporate
Allocation Hybrid
Securities Investment
Fund
Domestic
Liu Shufeng 3640323 15774732 0.83 0 None
natural person
Chen Hong 3016697 15025722 0.79 0 Unknown Unknown
Aberdeen Standard
Investments (Asia)
Overseas
Limited -Aberdeen 5658065 13683314 0.72 0 Unknown
corporate
Standard - China A-
Share Fund
Shareholding of the Top 10 Shareholders without Restrictions
Number of Outstanding Shares without Type and Number of Shares
Name of Shareholder
Restrictions Type Number
Hangzhou Hundsun Electronics Group Co. Ordinary shares
393743087393743087
Ltd. denominated in RMB
Hong Kong Securities Clearing Company Ordinary shares
260404626260404626
Limited denominated in RMB
70 / 2442022 Annual Report
Ordinary shares
Jiang Jiansheng 36166686 36166686
denominated in RMB
Ordinary shares
Zhou Lin’gen 33660748 33660748
denominated in RMB
China Securities Finance Corporation Ordinary shares
2493717124937171
Limited denominated in RMB
Ordinary shares
Peng Zhenggang 19500000 19500000
denominated in RMB
Industrial and Commercial Bank of China
Limited - Guangfa Multi-factor Flexible Ordinary shares
1783168517831685
Allocation Hybrid Securities Investment denominated in RMB
Fund
Ordinary shares
Liu Shufeng 15774732 15774732
denominated in RMB
Ordinary shares
Chen Hong 15025722 15025722
denominated in RMB
Aberdeen Standard Investments (Asia)
Ordinary shares
Limited -Aberdeen Standard - China A-Share 13683314 13683314
denominated in RMB
Fund
Special securities repurchase account of the
N/A
top 10 Shareholders
The above Shareholders entrust and waive
their voting rights or are entrusted with the None
voting right
Explanations of relationships between or
concerted actions of the aforementioned Unknown
shareholders
Shareholdings of Top 10 Shareholders with Trading Restrictions and Conditions of Such Restrictions
□Applicable √Not Applicable
(III) Strategic Investors or General Corporations Becoming Top 10 Shareholders Due to the
Placement of New Shares
□Applicable √Not Applicable
IV. Controlling Shareholder and Actual Controller
(I) Controlling Shareholder
1 Corporation
√Applicable □Not Applicable
Name Hangzhou Hundsun Electronics Group Co. Ltd.Person in charge or legal representative Zhu Chao
Incorporation date September 28 1998
Principal Operating Business Services: non-financial technology project investment corporate
financial management consulting technology development of
integrated circuits and communication equipment technical
consulting and transfer of achievements; wholesale and retail:
communication equipment and groceries; import and export of goods
(except for those prohibited by laws and administrative regulations
and those restricted by laws and administrative regulations can be
operated only after obtaining a license). (The items that are subject to
approval according to laws shall be operated only after relevant
approvals are obtained from relevant authorities).Shareholding of other domestic and None
overseas listed companies controlling
and holding shares during the Reporting
Period
71 / 2442022 Annual Report
Others None
2 Natural person
□Applicable √Not Applicable
3 Special explanation on no controlling shareholders of the Company
□Applicable √Not Applicable
4 Changes in controlling shareholders during the Reporting Period
□Applicable √Not Applicable
5 Block diagram of property rights and control relationship between the Company and the
Controlling Shareholder
√Applicable □Not Applicable
(II) Actual Controller
1 Corporation
□Applicable √Not Applicable
2 Natural person
□Applicable √Not Applicable
3 Special explanation on no actual controllers of the Company
√Applicable □Not Applicable
On January 7 2023 Mr. Ma Yun and related parties signed the Agreement on the Termination of
Acting-in-Concert Agreement and other documents to change the upper-level equity structure of Hangzhou
Hundsun Electronics Group Co. Ltd. the controlling shareholder of the Company. Upon completion of
the above change Mr. Ma Yun will no longer be the Actual Controller of the Company and the Company
will have no Actual Controller. The completion of the above change will also be subject to all necessary
governmental approval or filing procedures. For details of the above matters please refer to the
Announcement No. 2023-002 disclosed by the Company on the website of Shanghai Stock Exchange
(www.sse.com.cn).
4 Changes in the Company's control rights during the Reporting Period
□Applicable √Not Applicable
5 Block diagram of property rights and control relationship between the Company and the
Actual Controller
□Applicable √Not Applicable
72 / 2442022 Annual Report
6 Actual Controller controlling the Company by way of trust or other asset management methods
□Applicable √Not Applicable
(III) Summary of Other Facts about the Controlling Shareholder and Actual Controller
√Applicable □Not Applicable
On January 7 2023 Mr. Ma Yun and related parties signed the Agreement on the Termination of
Acting-in-Concert Agreement and other documents to change the upper-level equity structure of Hangzhou
Hundsun Electronics Group Co. Ltd. the controlling shareholder of the Company. Upon completion of
the above change Mr. Ma Yun will no longer be the Actual Controller of the Company and the Company
will have no Actual Controller. The completion of the above change will also be subject to all necessary
governmental approval or filing procedures. For details of the above matters please refer to the
Announcement No. 2023-002 disclosed by the Company on the website of Shanghai Stock Exchange
(www.sse.com.cn).V. The Company's Controlling Shareholder or the First Majority Shareholder and Its Concert
Parties Pledged a Total of 80% or More of Their Shareholdings in the Company
□Applicable √Not Applicable
VI. Other Corporate Shareholders with Over 10% Of Shareholding in the Company
□Applicable √Not Applicable
VII. Details on Restriction on Shareholding Reduction
□Applicable √Not Applicable
VIII. Specific Implementation of Share Repurchase During the Reporting Period
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Name of Share Repurchase Scheme Announcement on the Proposal to Repurchase the Company's Shares
in Call Auction Trading
Date of disclosure February 15 2022
Number of shares to be repurchased and 0.0855-0.1283
the proportion (%) in total shares
outstanding
Proposed amount for repurchase RMB 100 million – 150 million
Proposed repurchase term February 14 2022 – February 13 2023
Repurchase purpose For the stock option incentive plan or employee stock ownership
scheme
Number of shares repurchased (share) 2497957
Number of repurchased shares as a 0
percentage of the underlying shares
under the share incentive scheme (%) (if
any)
Progress of the Company's share N/A
repurchase reduction in call auction
trading
Section VIII Preferred Shares
□Applicable √Not Applicable
73 / 2442022 Annual Report
Section IX Corporate Bonds
I. Enterprise Bonds Corporate Bonds and Debt Financing Instrument of Non-Financial Enterprises
□Applicable √Not Applicable
II. Convertible Corporate Bonds
□Applicable √Not Applicable
Section X Financial Report
I. Auditor's Report
√Applicable □Not Applicable
74 / 2442022 Annual Report
Auditor’s Report
TJS [2023] No. 1208
To all shareholders of Hundsun Technologies Inc.I. OPINION
We have audited the financial statements of Hundsun Technologies Inc. (hereinafter referred to as
Hundsun Technologies) including the consolidated and parent company's balance sheets as of December
31 2022 the consolidated and parent company's income statements cash flow statements and statements
of retained earnings for 2022 and related notes to the financial statements.In our opinion the attached financial statements present fairly in all material respects the
consolidated and parent company's financial position of Hundsun Technologies as of December 31 2022
and the consolidated and the parent company's records of performance and cash flow statements for 2022
prepared in accordance with Accounting Standards for Business Enterprises.II. Basis for Audit Opinion
We have conducted our audit in accordance with the Auditing Standards for Chinese Certified PublicAccountants. The section in the Auditor’s Report titled “CPAs’ Responsibilities for the Audit of theFinancial Statements” further describes our responsibilities under these standards. We are independent of
Hundsun Technologies in accordance with the Code of Ethics for Chinese Certified Public Accountants
and we have fulfilled our other ethical responsibilities of the Code. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment we consider to be most
significant to the audit of the financial statements for the period. These matters are addressed in the context
of the audit of the financial statements as a whole and the formation of an audit opinion and we do not
express an opinion on these matters individually.(I) Revenue Recognition
1. Introduction
The revenue of Hundsun Technologies mainly comes from the provision of overall software solutions
and network services for securities futures funds trusts insurance banks exchanges private equity firms
and other institutions. Hundsun Technologies recorded revenue of RMB6502387100 in 2022 of which
revenue from software product sales and services accounted for 99.72%. As disclosed in the significant
accounting policies and accounting estimates (XXVI) set out in Note III to the financial statements
Hundsun Technologies applies different revenue recognition methods to revenue from sales of self-
75 / 2442022 Annual Report
developed software products revenue from sales of customized software and revenue from software
services. Revenue is one of the key performance indicators of Hundsun Technologies and involves
significant judgment of Hundsun Technologies’ management (hereinafter referred to as Management) and
revenue may be recognized in inappropriate accounting periods thus we considered revenue recognition
as a key audit matter.
2. Audit Response
The audit procedures we implement for revenue recognition mainly include:
(1) Understanding the key internal controls related to revenue recognition evaluating the design of
these controls determining whether these controls are implemented and testing the implementation
effectiveness of related internal controls;
(2) Obtaining Company's sales revenue account analyzing the growth rate of revenue over the same
period identifying whether there are major or abnormal fluctuations at the overall level based on monthly
and product type analysis procedures and finding out the causes of fluctuations;
(3) Sampling sales contracts and related completion orders for which revenues are recognized during
the period and checking whether projects are completed and whether the service term is consistent
according to the completion conditions and service term agreed in the contracts;
(4) Sampling projects for on-the-spot inspection to understand the progress of project implementation;
(5) Implementing confirmation procedures for key customers to confirm information such as
accounts receivable contract assets and debt balances sales revenue for the period project progress and
service terms;
(6) Performing cut-off tests for revenues recognized before and after the balance sheet date to evaluate
whether revenues are recognized in the appropriate period;
(7) Checking whether the information relating to revenue has been properly presented in the financial
statements.(II) Goodwill Impairment Test
1. Introduction
As of December 31 2022 Hundsun Technologies recorded the original carrying value of goodwill
of RMB888619700 and the provision for impairment of RMB210171200 resulting in a carrying value
of RMB678448500. As described in the significant accounting policies and accounting estimates (XIX)
in Note III to the financial statements the Management is required to perform annual impairment tests on
goodwill resulting from business combinations regardless of whether impairment exists and to adjust the
carrying value of goodwill based on the test results. The Management tests goodwill for impairment in
conjunction with the asset group or combination of asset groups related thereto and the recoverable
amount of the related asset group or combination of asset groups is determined based on the present value
of projected future cash flows. Significant judgments and assumptions made by the Management such as
the estimation of the revenue growth rate profit margin appropriate discount rate and other indicators
are considered in the determination of the present value of future cash flows and therefore we considered
76 / 2442022 Annual Report
the goodwill impairment test as a key audit matter.
2. Audit Response
The audit procedures we implement for goodwill impairment tests mainly include:
(1) Understanding the key internal controls related to goodwill impairment tests evaluating the
design of these controls determining whether these controls are implemented and testing the
implementation effectiveness of related internal controls;
(2) Reviewing the Management’s projections of the present value of future cash flows and actual
results of operations for prior years and evaluating the accuracy of the Management's historical projections;
(3) Understanding the historical performance and development plans for each asset group as well as
the macroeconomic and development trends of the industries to which they belong;
(4) Understanding and evaluating the competency professionalism and objectivity of the external
valuation experts engaged by the Management;
(5) Evaluating the reasonableness and consistency of the methods used by Management in the
impairment test;
(6) Reviewing the reasonableness of the level of cash flow projections and the discount rate adopted
including the growth rate of future sales revenue projected profit margin and related expenses of the
corresponding asset group and conducting a comparative analysis with the historical data of the
corresponding asset group and future market trends;
(7) Testing the accuracy of the Management's calculation of the present value of projected future cash
flows;
(8) Checking whether the information relating to goodwill impairment has been properly presented
in the financial statements.IV. Other Information
The Management is responsible for other information. Other information includes the information
covered in the Annual Report but excludes the financial statements and our auditor's report.Our audit opinion on the financial statements does not cover other information and we do not express
an assurance conclusion of any kind on other information
In conjunction with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with or
appears to be materially misstated in the financial statements or what we have learned during the audit.Based on the work we have performed if we determine that other information is materially misstated
we should report that fact. We do not have any matters to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The Management shall be responsible for preparing financial statements that present fairly the data
in accordance with the Accounting Standards for Business Enterprises and for designing implementing
77 / 2442022 Annual Report
and maintaining the internal controls as the Management deems necessary to enable the preparation of
financial statements free from material misstatement whether due to fraud or error.In the preparation of the financial statements the Management is responsible for assessing Hundsun
Technologies' continuing operating capacity disclosing matters relating to continuing operations (if
applicable) and applying the continuing operating assumptions unless there are plans to liquidate Hundsun
Technologies and cease to operate or no realistic alternative is available.Those charged with governance of Hundsun Technologies (hereinafter referred to as the Governance)
is responsible for overseeing the financial reporting process of Hundsun Technologies.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a whole are
free from material misstatement caused by fraud or error and to issue an Auditor’s Report containing our
opinions. Reasonable assurance is high-level assurance but it does not guarantee that a material
misstatement will always be detected in an audit performed in accordance with auditing standards when
it exists. Misstatements can arise from fraud or error and are considered material if individually or in
aggregate they could reasonably be expected to influence the economic decisions users would take on the
basis of the financial statements.We exercise professional judgment and maintain professional skepticism in carrying out our audit in
accordance with the Auditing Standards. At the same time we also:
(I) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain sufficient and
appropriate audit evidence to provide a basis for our audit. The risk of failing to detect a material
misstatement due to fraud is higher than that due to error as fraud may involve collusion forgery
intentional omissions misrepresentations or overriding internal controls.(II) Understand the internal controls related to the audit to formulate appropriate audit procedures.(III) Evaluate the appropriateness of accounting policies adopted by and the reasonableness of
accounting estimates and related disclosures made by the Management.(IV) Draw a conclusion about the appropriateness of the going concern assumption used by the
Management and conclude based on the audit evidence obtained on whether a material uncertainty exists
related to events or conditions that may cast significant doubt on Hundsun Technologies' ability to continue
as a going concern. If we conclude that a material uncertainty exists we are required to pay attention in
our auditor’s report to the related disclosures in the financial statements or if such disclosures are
inadequate to modify our opinion. Our conclusions are based on audit evidence obtained up to the date of
our Auditor’s Report. However future events or conditions may cause Hundsun Technologies to cease.(V) Evaluate the overall presentation structure and content of the financial statements and also
whether the financial statements fairly present the underlying transactions and events.(VI) Obtain sufficient and appropriate audit evidence about the financial information of the entities
or operations in Hundsun Technologies to express our audit opinion on the financial statements. We are
78 / 2442022 Annual Report
responsible for guiding supervising and performing the audit of the Group and assume all responsibilities
for our opinion.We communicate with the Governance regarding among other matters the planned scope and
schedule of the audit and significant audit findings including any internal control deficiencies of concern
that we found during our audit.We also provide the Governance with a statement regarding compliance with ethical requirements
related to independence and communicate with the Governance about all relationships and other matters
that could reasonably be considered to affect our independence as well as related precautions (if
applicable).Among matters about which we had communicated with the Governance we determined which
matters are the most important to audit the current period's financial statements therefore such matters
are key audit matters. We described these matters in our auditor's report except in those cases where public
disclosure of such matters is prohibited by law or regulation or in those rare cases where we determine
not to communicate with the Governance about a matter in our auditor's report if we reasonably expect
that the adverse consequences of communicating about such matter in our auditor's report would outweigh
the benefits in the public interest.Pan-China Certified Public Accountants LLP CPA of China:
(Engagement Partner)
Hangzhou China CPA of China:
March 30 2023
79 / 2442022 Annual Report
II. Financial Statements
Consolidated Balance Sheet
December 31 2022
Prepared by: Hundsun Technologies Inc.Unit: Yuan Currency: RMB
Item Notes December 31 2022 December 31 2021
Current assets:
Cash and bank balances VII.1 2872634365.36 1727704846.60
Balances with clearing
companies
Placements with banks and
other financial institutions
Held-for-trading financial assets VII.2 1497708252.01 1991523094.74
Derivative financial assets
Notes receivable VII.4 297600.00 636600.00
Accounts receivable VII.5 922538606.59 762916207.50
Receivables financing
Prepayments VII.7 13812398.21 11856440.88
Premium receivables
Reinsurance account
receivables
Deposit receivables from
reinsurance contracts
Other receivables VII.8 36136948.65 30706405.33
Including: Interest receivables
Dividend receivables
Financial assets held under
resale agreements
Inventories VII.9 541390396.07 466992190.19
Contract assets VII.10 47104124.57 33668468.37
Held-for-sale assets
Current portion of non-current
assets
Other current assets VII.13 21921311.73 8672321.71
Total current assets 5953544003.19 5034676575.32
Non-current assets:
Loans and advances
Creditor's right investment
Other debt investments VII.15 35020859.58 65681018.23
Long-term receivables
Long-term equity investments VII.17 1270543073.31 1110946777.17
Other equity instrument
investments
Other non-current financial VII.19 2532458912.37 2981720276.86
assets
Investment properties VII.20 139546030.07 127524968.93
Fixed assets VII.21 1617839116.41 1679515491.95
Construction in progress VII.22 124123757.95 26357513.90
Bearer biological assets
Oil and gas assets
Right-of-use assets VII.25 49359468.89 32023105.44
Intangible assets VII.26 404431043.56 376460020.43
Development expenditures
Goodwill VII.28 678448513.59 367492126.98
80 / 2442022 Annual Report
Long-term prepaid expense VII.29 6141932.91 1257776.43
Deferred income tax assets VII.30 193121586.84 163436491.51
Other non-current assets VII.31 112816169.61
Total non-current assets 7051034295.48 7045231737.44
Total assets 13004578298.67 12079908312.76
Current liabilities:
Short-term borrowings VII.32 54993749.99 178028314.11
Borrowings from the central
bank
Placements from banks and
other financial institutions
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable VII.36 556386054.84 503758715.18
Advances from customers VII.37 3982203.88 2283715.48
Contract liabilities VII.38 3022756428.02 3203414609.69
Financial assets sold under
repurchase agreements
Deposits from banks and other
financial institutions
Customer deposits for securities
trading
Customer deposits for securities
underwriting
Employee compensation VII.39 871800229.81 774996501.71
payable
Taxes payable VII.40 235335318.28 196064942.41
Other payables VII.41 177670629.68 170804176.79
Including: interests payable
Dividends payable
Handling charges and
commission payable
Reinsurance accounts payable
Held-for-sale liabilities
Current portion of non-current VII.43 17061706.54 154496614.61
liabilities
Other current liabilities VII.44 305258151.46 305258151.46
Total current liabilities 5245244472.50 5489105741.44
Non-current liabilities:
Deposits for insurance contracts
Long-term borrowings VII.45 115834519.89 228454065.70
Bonds payable
Including: preference shares
Perpetual bonds
Lease liabilities VII.47 34984527.44 23298204.05
Long-term payables 38189757.11
Long-term employee benefits
payable
Provision for liabilities VII.50 20206269.80 17316775.77
Deferred income VII.51 29760409.18 38210906.29
Deferred income tax liabilities VII.30 45897128.03 68201491.05
Other non-current liabilities VII. 52
Total non-current liabilities 284872611.45 375481442.86
81 / 2442022 Annual Report
Total liabilities 5530117083.95 5864587184.30
Owners' equity (or shareholders' equity):
Paid-up capital (or share capital) VII.53 1900006442.00 1461560480.00
Other equity instruments
Including: preference shares
Perpetual bonds
Capital reserve VII.55 442297657.05 272730547.65
Less: Treasury stocks VII.56 79864266.65 39676146.96
Other comprehensive income VII.57 23348050.30 -19063233.86
Special reserves
Surplus reserves VII.59 425444965.19 322432343.76
General risk provision
Undistributed profits VII.60 4100528202.61 3697047060.46
Total equity attributable to
owners (or shareholders) of the 6811761050.50 5695031051.05
parent company
Minority interests 662700164.22 520290077.41
Total owners' equity (or
7474461214.726215321128.46
shareholders' equity)
Total liabilities and
owners' equity (or shareholders' 13004578298.67 12079908312.76
equity)
Head of the Company: Liu Shufeng Financial Controller: Yao Manying Accounting
supervisor: Yao Manying
Balance Sheet of Parent Company
December 31 2022
Prepared by: Hundsun Technologies Inc.Unit: Yuan Currency: RMB
Item Notes December 31 2022 December 31 2021
Current assets:
Cash and bank balances 1884253410.16 908419084.93
Held-for-trading financial assets 407461821.88 1012890244.13
Derivative financial assets
Notes receivable 297600.00 636600.00
Accounts receivable XVII.1 649825192.71 557715998.70
Receivables financing
Prepayments 7854190.25 8933838.72
Other receivables XVII.2 37275271.21 66212431.56
Including: Interest receivables
Dividend receivables
Inventories 508302377.13 427163074.94
Contract assets 43832862.58 27841320.54
Held-for-sale assets
Current portion of non-current
assets
Other current assets
Total current assets 3539102725.92 3009812593.52
Non-current assets:
Creditor's right investment
Other debt investments
Long-term receivables
82 / 2442022 Annual Report
Long-term equity investments XVII.3 3637931321.50 3230955642.19
Other equity instrument
investments
Other non-current financial 2321911227.12 2740664539.46
assets
Investment properties 24840766.52 7736779.02
Fixed assets 1271042044.65 1354919216.28
Construction in progress 124123757.95 25139995.40
Bearer biological assets
Oil and gas assets
Right-of-use assets 19511617.52 24756019.73
Intangible assets 212267650.21 237628836.54
Development expenditures
Goodwill
Long-term prepaid expense 2264055.86 131567.10
Deferred income tax assets 216601869.67 187252839.81
Other non-current assets
Total non-current assets 7830494311.00 7809185435.53
Total assets 11369597036.92 10818998029.05
Current liabilities:
Short-term borrowings 50000000.00 150862784.72
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 520233488.82 528701393.13
Advances from customers
Contract liabilities 2700142546.33 2844015508.61
Employee compensation 694835629.04 606636561.56
payable
Taxes payable 168924134.63 146989441.53
Other payables 84669139.93 89229544.02
Including: interests payable
Dividends payable
Held-for-sale liabilities
Current portion of non-current 6689092.45 149878491.45
liabilities
Other current liabilities
Total current liabilities 4225494031.20 4516313725.02
Non-current liabilities:
Long-term borrowings 32334094.44 148159511.11
Bonds payable
Including: preference shares
Perpetual bonds
Lease liabilities 15965211.45 21129263.20
Long-term payables
Long-term employee benefits
payable
Provision for liabilities 18175644.42 16258263.99
Deferred income 29722089.63 38094994.90
Deferred income tax liabilities 43569707.24 65662318.43
Other non-current liabilities
Total non-current liabilities 139766747.18 289304351.63
Total liabilities 4365260778.38 4805618076.65
Owners' equity (or shareholders' equity):
83 / 2442022 Annual Report
Paid-up capital (or share capital) 1900006442.00 1461560480.00
Other equity instruments
Including: preference shares
Perpetual bonds
Capital reserve 132247680.40 16659761.86
Less: Treasury stocks 48285319.65 39676146.96
Other comprehensive income 346075.73 346075.73
Special reserves
Surplus reserves 774513545.63 671500924.20
Undistributed profits 4245507834.43 3902988857.57
Total owners' equity (or
7004336258.546013379952.40
shareholders' equity)
Total liabilities and
owners' equity (or shareholders' 11369597036.92 10818998029.05
equity)
Head of the Company: Liu Shufeng Financial Controller: Yao Manying Accounting
supervisor: Yao Manying
Consolidated Income Statement
January to December 2022
Unit: Yuan Currency: RMB
Item Notes FY 2022 2021
I. Total revenue VII.61 6502387143.49 5496578624.88
Including: Revenue VII.61 6502387143.49 5496578624.88
Interest income
Premiums earned
Handling charges and commission
income
II. Total cost of sales 5643782118.49 4922774631.17
Including: Cost of sales VII.61 1718949583.55 1484602486.66
Interest expenses
Handling charges and commission
expenses
Payments on surrender
Net claim expenses
Net provision for insurance
contract reserves
Policyholder dividend expenses
Reinsurance costs
Taxes and surcharges VII.62 75337767.41 60393388.78
Selling and distribution expenses VII.63 617092825.41 557934967.43
General and administrative
VII.64 870226221.15 681453467.57
expenses
R&D expenses VII.65 2346280973.22 2139296366.07
Finance costs VII.66 15894747.75 -906045.34
Including: Interest expenses 20893866.14 10507675.01
Interest income -27850713.32 -17150371.61
Add: Other incomes VII.67 288989181.59 289880269.30
Investment income (loss denoted
VII.68 258537504.13 275837269.79
by "-")
Including: Share of results of
116485385.9291328055.87
associates and joint ventures
84 / 2442022 Annual Report
Revenue from derecognize
of financial assets at amortized cost
Exchange gains (loss denoted by "-
")
Gains from net exposure to hedging
(loss denoted by "-")
Gain from changes in fair value
VII.70 -165741099.23 414401157.02
(loss expressed with "-")
Credit impairment Losses (loss
VII.71 -55156430.17 -30961258.63
denoted by "-")
Impairment of assets (loss denoted
VII.72 -58752135.68 -11858839.61
by "-")
Gains from the disposal of assets
VII.73 -2510482.51 -552528.07
(loss to be listed with “-”)
III. Operating profit (loss denoted by "-") 1123971563.13 1510550063.51
Add: Non-operating income VII.74 2509413.82 2491487.26
Less: Non-operating expenses VII.75 1904838.34 3318935.14
IV. Total profit (total loss denoted by "-") 1124576138.61 1509722615.63
Less: Income tax expenses VII.76 4756341.46 19593930.63
V. Net profit (net loss denoted by "-") 1119819797.15 1490128685.00
(I) Classified by the continuity of operations
1. Net profit from continuing
1119819797.151490128685.00
operations (net loss denoted by "-")
2. Net profit from discontinued
operations (net loss denoted by "-")
(II) Classified by attribution of ownership
1. Net profit attributable to
shareholders of the parent company (net 1091088379.58 1463538930.14
loss denoted by "-")
2. Profit and loss of minority
28731417.5726589754.86
shareholders (net loss denoted by "-")
VI. Other comprehensive income net of
44256526.96-13786289.23
tax
(I) Other comprehensive income
attributable to owners of the parent 42411284.16 -11419570.51
company net of tax
1. Other comprehensive income not to
be subsequently reclassified to profit or
loss
(1) Amount of change arising from
remeasurement of the defined benefit plan
(2) Other comprehensive income not to
be reclassified to profit or loss under the
equity method
(3) Changes in fair value of other equity
instrument investments
(4) Changes in fair value attributable to
changes in credit risk
2. Other comprehensive income to be
42411284.16-11419570.51
subsequently reclassified to profit or loss
(1) Other comprehensive income to be
reclassified to profit or loss under the
equity method
(2) Changes in fair value of other debt
-2558936.35-25707.87
investments
85 / 2442022 Annual Report
(3) Amount of financial assets
reclassified and charged to other
comprehensive incomes
(4) Credit loss impairment of other debt
investments
(5) Cash flow hedge reserve
(6) Foreign currency translation
44970220.51-11393862.64
difference in the statements
(7) Others
(II) Other comprehensive income
attributable to minority shareholders net of 1845242.80 -2366718.72
tax
VII. Total comprehensive income 1164076324.11 1476342395.77
(I) Total comprehensive income
attributable to the owners of the parent 1133499663.74 1452119359.63
company
(II) Total comprehensive income
30576660.3724223036.14
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share
0.570.77
(RMB/share)
(II) Diluted earnings per share
0.570.77
(RMB/share)
Head of the Company: Liu Shufeng Financial Controller: Yao Manying Accounting
supervisor: Yao Manying
Income Statement of the Parent Company
January to December 2022
Unit: Yuan Currency: RMB
Item Notes FY 2022 2021
I. Revenue XVII.4 5312062236.34 4540414080.82
Less: Cost of sales XVII.4 1420172411.43 1281192903.55
Taxes and surcharges 63807317.43 48187613.26
Selling and distribution expenses 441564598.80 401894792.45
General and administrative 708798954.38 502017276.69
expenses
R&D expenses 2004931415.46 1811641736.55
Finance costs -390536.15 2316928.82
Including: Interest expenses 15772001.77 9835206.38
Interest income -21614598.07 -13406287.93
Add: Other incomes 262883932.41 271497389.32
Investment income (loss denoted
XVII.5 263511325.27 265504833.35
by "-")
Including: Share of results of
107589749.4790518351.65
associates and joint ventures
Revenue from derecognize
of financial assets at amortized cost
Gains from net exposure to
hedging (loss denoted by "-")
Gain from changes in fair value
-98723815.42419730141.73
(loss expressed with "-")
Credit impairment Losses (loss
-31982856.62-20000010.63
denoted by "-")
86 / 2442022 Annual Report
Impairment of assets (loss
-66138362.21-52631912.66
denoted by "-")
Gains from the disposal of assets
-2539690.93-517980.17
(loss to be listed with “-”)
II. Operating profits (loss denoted by "-") 1000188607.49 1376745290.44
Add: Non-operating income 1145070.88 1727963.18
Less: Non-operating expenses 1602493.80 2578075.83
III. Total profit (total loss denoted by "-") 999731184.57 1375895177.79
Less: Income tax expenses -30395029.72 -3989324.37
IV. Net profit (net loss denoted by "-") 1030126214.29 1379884502.16
(I) Net profit from continuing
1030126214.291379884502.16
operations (net loss denoted by "-")
(II) Net profit from discontinued
operations (net loss denoted by "-")
V. Other comprehensive income net of
tax
(I) Other comprehensive income not to
be subsequently reclassified to profit or
loss
1. Amount of change arising from
remeasurement of the defined benefit
plan
2. Other comprehensive income not
to be reclassified to profit or loss under
the equity method
3. Changes in fair value of other
equity instruments investments
4. Changes in fair value attributable
to changes in credit risk
(II) Other comprehensive income to be
subsequently reclassified to profit or loss
1. Other comprehensive income to
be reclassified to profit or loss under the
equity method
2. Changes in fair value of other
debt investment
3. Amount of financial assets
reclassified and charged to other
comprehensive income
4. Credit loss impairment of other
debt investments
5. Cash flow hedge reserve
6. Foreign currency translation
difference in the statements
7. Others
VI. Total comprehensive income 1030126214.29 1379884502.16
VII. Earnings per share:
(I) Basic earnings per share
(RMB/share)
(II) Diluted earnings per share
(RMB/share)
Head of the Company: Liu Shufeng Financial Controller: Yao Manying Accounting
supervisor: Yao Manying
87 / 2442022 Annual Report
Consolidated Cash Flow Statement
January to December 2022
Unit: Yuan Currency: RMB
Item Notes FY 2022 2021
I. Cash flows from operating activities:
Cash received from sales of goods
6678651178.155844844692.26
or rendering of services
Net increase in deposits from
customers and placements from
banks and other financial institutions
Net increase in borrowings from
the central bank
Net increase in placements from
other financial institutions
Cash received from premiums of
original insurance contracts
Net cash received from
reinsurance operations
Net increase in policyholders'
deposits and investments
Cash received from interest
handling charges and commission
Net increase in placements from
banks and other financial institutions
Net increase in capital for
repurchase
Net cash received from securities
trading agency services
Tax refunds received 234613134.19 227091597.48
Other cash received relating to
VII.78 142505741.89 121077790.55
operating activities
Sub-total of cash inflows from
7055770054.236193014080.29
operating activities
Cash paid for goods and services 429889620.45 429996599.28
Net increase in loans and advances
to customers
Net increase in deposits in the
central bank and other financial
institutions
Cash paid for claims on original
insurance contracts
Net increase in placements with
banks and other financial institutions
Cash paid for interest handling
charges and commission
Cash paid for policyholders'
dividend
Cash paid to and on behalf of
4200921341.883523292673.44
employees
Cash paid for taxes and dues 623615479.40 573426098.40
Cash paid for other operating
VII.78 663150832.54 709509403.03
activities
Sub-total of cash outflows for
5917577274.275236224774.15
operating activities
88 / 2442022 Annual Report
Net cash flows from
1138192779.96956789306.14
operating activities
II. Cash flows from investing activities:
Cash received from recouping
2792999159.885671375826.88
investment
Cash received from investment
106669985.5391272753.60
income
Net cash received from the
disposal of fixed assets intangible 180713.22 335745.57
assets and other long-term assets
Net cash received from the
disposal of subsidiaries and other
operating entities
Cash received from other
investment activities
Sub-total of cash inflows from
2899849858.635762984326.05
investing activities
Cash paid for acquisition and
construction of fixed assets
293696769.67684126691.10
intangible assets and other long-term
assets
Cash paid for investments 2154837977.09 5354401853.32
Net increase in pledged loans
Net cash paid for acquisition of
subsidiaries and other operating 147881750.76
entities
Cash paid for other investing
VII.78 165088117.47
activities
Sub-total of cash outflows for
2613622864.236186410295.18
investing activities
Net cash flows from
286226994.40-423425969.13
investing activities
III. Cash flow from financing activities:
Cash received from capital
220999701.72104148194.52
contributions
Including: Cash received by
subsidiaries from capital
219618947.0092113044.45
contributions of minority
shareholders
Cash received from borrowings 657478926.10 1457773551.92
Cash received from other
VII.78 35313750.00 361621876.00
financing activities
Sub-total of cash inflows from
913792377.821923543622.44
financing activities
Cash paid for repayment of debts 1046495271.75 1154950725.42
Cash paid for distribution of
dividends or profits or settlement of 189152523.05 165693795.60
interest
Including: Dividends and profits
paid by the subsidiaries to non- 23848176.00 40942500.00
controlling interests
Cash paid for other financing
VII.78 159665202.53 776982025.33
activities
Sub-total of cash outflows for
1395312997.332097626546.35
financing activities
89 / 2442022 Annual Report
Net cash flows from
-481520619.51-174082923.91
financing activities
IV. Effect of changes in exchange
-5021281.09-5874876.16
rates on cash and cash equivalents
V. Net increase in cash and cash
937877873.76353405536.94
equivalents
Add: Opening balance of cash and
1723434091.601370028554.66
cash equivalents
VI. Closing balance of cash and
2661311965.361723434091.60
cash equivalents
Head of the Company: Liu Shufeng Financial Controller: Yao Manying Accounting
supervisor: Yao Manying
Cash Flow Statement of the Parent Company
January to December 2022
Unit: Yuan Currency: RMB
Item Notes FY 2022 2021
I. Cash flows from operating activities:
Cash received from sales of goods
5560534292.064888058491.22
or rendering of services
Tax refunds received 224934490.05 215981764.66
Other cash received relating to
191779838.34182379629.26
operating activities
Sub-total of cash inflows from
5977248620.455286419885.14
operating activities
Cash paid for goods and services 702574499.52 712654259.84
Cash paid to and on behalf of
2950582059.862507969694.70
employees
Cash paid for taxes and dues 503808482.94 474127303.70
Cash paid for other operating
753936649.10687191064.00
activities
Sub-total of cash outflows for
4910901691.424381942322.24
operating activities
Net cash flows from operating
1066346929.03904477562.90
activities
II. Cash flows from investing activities:
Cash received from recouping
1932154035.933446679775.75
investment
Cash received from investment
127089105.61125221208.23
income
Net cash received from the
disposal of fixed assets intangible 103871.30 281848.77
assets and other long-term assets
Net cash received from the
disposal of subsidiaries and other
operating entities
Cash received from other
35982027.39189562371.40
investment activities
Sub-total of cash inflows from
2095329040.233761745204.15
investing activities
Cash paid for acquisition and
226907197.08474359557.11
construction of fixed assets
90 / 2442022 Annual Report
intangible assets and other long-term
assets
Cash paid for investments 1299130845.23 3579910798.63
Net cash paid for acquisition of
subsidiaries and other operating
entities
Cash paid for other investing
10000000.00206222100.00
activities
Sub-total of cash outflows for
1536038042.314260492455.74
investing activities
Net cash flows from
559290997.92-498747251.59
investing activities
III. Cash flow from financing activities:
Cash received from capital
contributions
Cash received from borrowings 367300000.00 1338000000.00
Cash received from other
35313750.00561621876.00
financing activities
Sub-total of cash inflows from
402613750.001899621876.00
financing activities
Cash paid for repayment of debts 779140000.00 1016260000.00
Cash paid for distribution of
dividends or profits or settlement of 163023851.38 123094675.57
interest
Cash paid for other financing
102573085.38885804607.30
activities
Sub-total of cash outflows for
1044736936.762025159282.87
financing activities
Net cash flows from
-642123186.76-125537406.87
financing activities
IV. Effect of changes in exchange
-8838059.96-265047.73
rates on cash and cash equivalents
V. Net increase in cash and cash
974676680.23279927856.71
equivalents
Add: Opening balance of cash and
905600929.93625673073.22
cash equivalents
VI. Closing balance of cash and
1880277610.16905600929.93
cash equivalents
Head of the Company: Liu Shufeng Financial Controller: Yao Manying
Accounting supervisor: Yao Manying
91 / 2442022 Annual Report
Consolidated Statement of Retained Earnings
January to December 2022
Unit: Yuan Currency: RMB
FY 2022
Owners' equity attributable to the parent company
Item
Other equity instruments Minority interests Total owners' equity Other General
Paid-up capital (or Less: Treasury Special
Capital reserve comprehensive Surplus reserves risk Undistributed profits Others Sub-total
share capital) Preference Perpetual Others stocks reserves
shares bonds income provision
I. Closing balance of the
1461560480.00272730547.6539676146.96-19063233.86322432343.763697047060.465695031051.05520290077.416215321128.46
previous year
Add: Changes in
accounting policies
Correction of prior
period errors
Business
combination under
common control
Others
II. Opening balance of the
1461560480.00272730547.6539676146.96-19063233.86322432343.763697047060.465695031051.05520290077.416215321128.46
current year
III. Increases/decreases in
the current period 438445962.00 169567109.40 40188119.69 42411284.16 103012621.43 403481142.15 1116729999.45 142410086.81 1259140086.26
(decreases denoted by "-")
(I) Total comprehensive
42411284.161091088379.581133499663.7430576660.371164076324.11
income
(II) Capital contributed
169567109.4040188119.69129378989.71135681602.44265060592.15
and reduced by owners
1. Ordinary shares
219618947.00219618947.00
contributed by owners
2. Capital contributed by
the holders of other equity
instruments
3. Amount of share-based
payments charged to 103381645.79 8609172.69 94772473.10 94772473.10
owners' equity
4. Others 66185463.61 31578947.00 34606516.61 -83937344.56 -49330827.95
(III) Profit distribution 438445962.00 103012621.43 -687607237.43 -146148654.00 -23848176.00 -169996830.00
1. Appropriation to
103012621.43-103012621.43
surplus reserve
2. Appropriation to
general risk provision
92 / 2442022 Annual Report
3. Distribution to owners
438445962.00-584594616.00-146148654.00-23848176.00-169996830.00
(or shareholders)
4. Others
(IV) Internal transfers of
owners' equity
1. Capital (or share
capital) transferred from
capital reserve
2. Capital (or share
capital) transferred from
surplus reserve
3. Recovery of losses by
surplus reserve
4. Retained earnings
transferred from changes
in defined benefit plans
5. Retained earnings
transferred from other
comprehensive income
6. Others
(V) Special reserve
1. Appropriation in the
current period
2. Utilized in the current
period
(VI) Others
IV. Closing balance in the
1900006442.00442297657.0579864266.6523348050.30425444965.194100528202.616811761050.50662700164.227474461214.72
current period
2021
Owners' equity attributable to the parent company
Item
Other General Minority interests Total owners' equity
Paid-up capital (or Other equity instruments Less: Treasury Special
Capital reserve comprehensive Surplus reserves risk Undistributed profits Others Sub-total
share capital) Preference Perpetual Others stocks reserves
shares bonds income provision
I. Closing balance of the
1044090754.00545385635.52117376268.28-7643663.35195947299.772893625565.934554029323.59483731488.145037760811.73
previous year
Add: Changes in
-4502.28-291827.99-296330.27-133878.26-430208.53
accounting policies
Correction of prior
period errors
Business
combination under
common control
Others
93 / 2442022 Annual Report
II. Opening balance of
1044090754.00545385635.52117376268.28-7643663.35195942797.492893333737.944553732993.32483597609.885037330603.20
the current year
III. Increases/decreases in
the current period
417469726.00-272655087.87-77700121.32-11419570.51126489546.27803713322.521141298057.7336692467.531177990525.26
(decreases denoted by "-
")
(I) Total comprehensive
-11419570.511463538930.141452119359.6324223036.141476342395.77
income
(II) Capital contributed
-272655087.87-77700121.32-11498903.95-206453870.5053411931.39-153041939.11
and reduced by owners
1. Ordinary shares
28188068.1828188068.18
contributed by owners
2. Capital contributed by
the holders of other
equity instruments
3. Amount of share-based
payments charged to -289923619.47 -77700121.32 -212223498.15 -212223498.15
owners' equity
4. Others 17268531.60 -11498903.95 5769627.65 25223863.21 30993490.86
(III) Profit distribution 417469726.00 137988450.22 -659825607.62 -104367431.40 -40942500.00 -145309931.40
1. Appropriation to
137988450.22-137988450.22
surplus reserve
2. Appropriation to
general risk provision
3. Distribution to owners
417469726.00-521837157.40-104367431.40-40942500.00-145309931.40
(or shareholders)
4. Others
(IV) Internal transfers of
owners' equity
1. Capital (or share
capital) transferred from
capital reserve
2. Capital (or share
capital) transferred from
surplus reserve
3. Recovery of losses by
surplus reserve
4. Retained earnings
transferred from changes
in defined benefit plans
5. Retained earnings
transferred from other
comprehensive income
6. Others
(V) Special reserve
1. Appropriation in the
current period
2. Utilized in the current
period
94 / 2442022 Annual Report
(VI) Others
IV. Closing balance in
1461560480.00272730547.6539676146.96-19063233.86322432343.763697047060.465695031051.05520290077.416215321128.46
the current period
Head of the Company: Liu Shufeng Financial Controller: Yao Manying Accounting supervisor: Yao Manying
95 / 2442022 Annual Report
Statement of Retained Earnings of the Parent Company
January to December 2022
Unit: Yuan Currency: RMB
FY 2022
Other equity instruments Other
Item Paid-up capital (or Less: Treasury Special Undistributed Total owners'
Capital reserve comprehensive Surplus reserves
share capital) Preference Perpetual Others stocks reserves profits equity
shares bonds income
I. Closing balance
1461560480.0016659761.8639676146.96346075.73671500924.203902988857.576013379952.40
of the previous year
Add: Changes in
accounting policies
Correction of
prior period errors
Others
II. Opening balance
1461560480.0016659761.8639676146.96346075.73671500924.203902988857.576013379952.40
of the current year
III.Increases/decreases
in the current 438445962.00 115587918.54 8609172.69 103012621.43 342518976.86 990956306.14
period (decreases
denoted by "-")
(I) Total
comprehensive 1030126214.29 1030126214.29
income
(II) Capital
contributed and 115587918.54 8609172.69 106978745.85
reduced by owners
1. Ordinary shares
contributed by
owners
2. Capital
contributed by the
holders of other
equity instruments
3. Amount of share-
based payments
102284242.138609172.6993675069.44
charged to owners'
equity
4. Others 13303676.41 13303676.41
96 / 2442022 Annual Report
(III) Profit
438445962.00103012621.43-687607237.43-146148654.00
distribution
1. Appropriation to
103012621.43-103012621.43
surplus reserve
2. Distribution to
owners (or 438445962.00 -584594616.00 -146148654.00
shareholders)
3. Others
(IV) Internal
transfers of owners'
equity
1. Capital (or share
capital) transferred
from capital reserve
2. Capital (or share
capital) transferred
from surplus
reserve
3. Recovery of
losses by surplus
reserve
4. Retained
earnings transferred
from changes in
defined benefit
plans
5. Retained
earnings transferred
from other
comprehensive
income
6. Others
(V) Special reserve
1. Appropriation in
the current period
2. Utilized in the
current period
(VI) Others
IV. Closing balance
in the current 1900006442.00 132247680.40 48285319.65 346075.73 774513545.63 4245507834.43 7004336258.54
period
97 / 2442022 Annual Report
2021
Other equity instruments Other
Item Paid-up capital (or Less: Treasury Special Undistributed Total owners'
Preference Perpetual Capital reserve comprehensive Surplus reserves share capital) Others stocks reserves profits equity
shares bonds income
I. Closing balance
1044090754.00284304968.23117376268.28346075.73533516976.263182970483.594927852989.53
of the previous year
Add: Changes in
-4502.28-40520.56-45022.84
accounting policies
Correction of
prior period errors
Others
II. Opening balance
1044090754.00284304968.23117376268.28346075.73533512473.983182929963.034927807966.69
of the current year
III.Increases/decreases
in the current 417469726.00 -267645206.37 -77700121.32 137988450.22 720058894.54 1085571985.71
period (decreases
denoted by "-")
(I) Total
comprehensive 1379884502.16 1379884502.16
income
(II) Capital
contributed and -267645206.37 -77700121.32 -189945085.05
reduced by owners
1. Ordinary shares
contributed by
owners
2. Capital
contributed by the
holders of other
equity instruments
3. Amount of share-
based payments
-289477689.92-77700121.32-211777568.60
charged to owners'
equity
4. Others 21832483.55 21832483.55
(III) Profit
417469726.00137988450.22-659825607.62-104367431.40
distribution
98 / 2442022 Annual Report
1. Appropriation to
137988450.22-137988450.22
surplus reserve
2. Distribution to
owners (or 417469726.00 -521837157.40 -104367431.40
shareholders)
3. Others
(IV) Internal
transfers of owners'
equity
1. Capital (or share
capital) transferred
from capital reserve
2. Capital (or share
capital) transferred
from surplus
reserve
3. Recovery of
losses by surplus
reserve
4. Retained
earnings transferred
from changes in
defined benefit
plans
5. Retained
earnings transferred
from other
comprehensive
income
6. Others
(V) Special reserve
1. Appropriation in
the current period
2. Utilized in the
current period
(VI) Others
IV. Closing balance
in the current 1461560480.00 16659761.86 39676146.96 346075.73 671500924.20 3902988857.57 6013379952.40
period
Head of the Company: Liu Shufeng Financial Controller: Yao Manying Accounting
supervisor: Yao Manying
99 / 2442022 Annual Report
100 / 2442022 Annual Report
III. General Information of the Company
1. Company Profile
√Applicable □Not Applicable
Hundsun Technologies Inc. (hereafter referred to as the “Company”) is a joint-stock limited company
established by 15 individual shareholders including Hangzhou Hundsun Electronics Group Co. Ltd.China National Investment & Guaranty Co. Ltd. and Huang Dacheng on the basis of the original Hundsun
Technologies Inc. which was registered with the Industrial and Commercial Administration of Zhejiang
Province on December 13 2000 with the approval of the Listing Affair Team of the People’s Government
of Zhejiang Province through the document (ZSS [2000] 48). The Company now holds a business license
with USCI: 913300002539329145 and the registered capital of RMB1900006442 divided into a total
of 1900006442 shares (RMB1 for each share) all of which are outstanding shares without selling
restrictions. The Company's shares were listed on The Shanghai Stock Exchange on December 16 2003.The Company operates in the software and information technology service industry. The Company's
business covers technology development consultancy services and results transfer of computer software;
computer systems integration; design contracting and installation of automation and control engineering;
sales of computers and accessories; production and sales of electronic equipment communication
equipment computer hardware and external devices; leases of self-owned premises; import and export
business. Main products or services provided by the Company cover development and sales of computer
software products and system integration for securities finance transportation and other industries; and
sales of computers and accessories.The financial statements have been approved for publication at the seventh meeting of the Eighth
Session of the Board of the Company on March 30 2023.
2. Scope of the Consolidated Financial Statements
√Applicable □Not Applicable
The subsidiaries included in the Company’s consolidated financial statements for the current period are
shown below please refer to Notes VIII and IX to these financial statements for details.S/N Full company name Abbreviation Remark
Hangzhou Hundsun Cloud Investment Holding
1 Cloud Investment Holding subsidiary
Co. Ltd.Hangzhou Hundsun Science Park Development Subsidiary of Cloud
1-1 Hundsun Science Park
Co. Ltd. Investment
Nanjing Hundsun Science Park Operation Subsidiary of Hundsun
1-1-1 Nanjing Hundsun
Management Co. Ltd. Science Park
Shaoxing Keqiao Henghui Phoenix Science Park Subsidiary of Hundsun
1-1-2 Shaoxing Henghui
Operation Management Co. Ltd. Science Park
Wuxi Henghua Technology Development Co.
2 Wuxi Henghua Wholly-owned subsidiary
Ltd.Hangzhou Hundsun Data Security Technology
3 Data Security Holding subsidiary
Co. Ltd.
4 Jinrui Software Technology (Hangzhou) Co. Ltd. Jinrui Software Wholly-owned subsidiary
5 Beijing Qiantang Hundsun Technology Co. Ltd. Beijing Qiantang Wholly-owned subsidiary
6 Shanghai Yirui Management Consulting Co. Ltd. Shanghai Yirui Holding subsidiary
7 Japan Hundsun Software Inc. Japan Hundsun Holding subsidiary
7-1 Hangzhou Beiying Technology Co. Ltd. Hangzhou Beiying Subsidiary of Japan
101 / 2442022 Annual Report
Hundsun
Hundsun International Technologies Holding Hundsun International
8 Holding subsidiary
Limited Technologies
9 Hundsun Holdings Limited Hundsun Holdings Holding subsidiary
Subsidiary of Hundsun
9-1 Hundsun Ayers Technologies Limited Hundsun Ayers
Holdings
Ayers Technologies Subsidiary of Hundsun
9-2 Ayers Technologies(Singapore) Private Limited
(Singapore) Ayers
Subsidiary of Hundsun
9-3 Hundsun.Com Co. Limited Hundsun HK
Ayers
Subsidiary of Hundsun
9-4 Shenzhen Yungang Technology Co. Ltd. Shenzhen Yungang
Ayers
10 Shanghai Liming Technology Co. Ltd. Shanghai Liming Wholly-owned subsidiary
11 Shanghai Gildata Inc. Shanghai Gildata Holding subsidiary
Hangzhou Gildata Information Technology Co. Subsidiary of Shanghai
11-1 Hangzhou Gildata
Ltd. Gildata
Changsha Hundsun Gildata Information Subsidiary of Shanghai
11-2 Changsha Gildata
Technology Co. Ltd. Gildata
Subsidiary of Shanghai
11-3 Shanghai Dworld AI Tech Co. Ltd. Shanghai Dworld
Gildata
Subsidiary of Shanghai
11-4 Changsha Dworld AI Technology Co. Ltd. Changsha Dworld
Dworld
Hangzhou Yunhui Investment Management Co.
12 Hangzhou Yunhui Wholly-owned subsidiary
Ltd.Hangzhou Cloudwing Network Technology Co.
13 Cloudwing Network Holding subsidiary
Ltd.Subsidiary of Cloudwing
13-1 Hangzhou Hundsun Lirong Software Co. Ltd. Hundsun Lirong
Network
Beijing Hengying Yunchuang Technology Co. Subsidiary of Cloudwing
13-2 Beijing Hengying
Ltd. Network
Shanghai Cloudwing Zhichuang Technology Co. Subsidiary of Cloudwing
13-3 Shanghai Cloudwing
Ltd. Network
Hangzhou Securities Investment Network Securities Investment
14 Holding subsidiary
Technology Co. Ltd. Network
Hangzhou Cloudyee Network Technology Co.
15 Cloudyee Network Holding subsidiary
Ltd.Hangzhou Yunyong Network Technology Co.
16 Yunyong Network Holding subsidiary
Ltd.Hangzhou Cloudbroker Network Technology Co.
17 Cloudbroker Network Holding subsidiary
Ltd.
18 Hangzhou Yunlian Network Technology Co. Ltd. Yunlian Network Holding subsidiary
Hangzhou Shanshang Network Technology Co.
19 Shanshang Network Holding subsidiary
Ltd. [Note 1]
Hangzhou Yima Investment Management Co.
20 Hangzhou Yima Wholly-owned subsidiary
Ltd.Hangzhou Yihe Management Consulting Subsidiary of Hangzhou
20-1 Hangzhou Yihe
Partnership (Limited Partnership) Yima
Hangzhou Hundsun Wengine Network
21 Wengine Network Holding subsidiary
Technology Co. Ltd.Intercontinental
22 Hundsun Intercontinental Holdings (HK) Limited Wholly-owned subsidiary
Holdings
Subsidiary of
22-1 Hundsun Global Services Inc. Hundsun U.S.
Intercontinental Holdings
Subsidiary of
22-2 Chain Next Technologies Limited Chain Next
Intercontinental Holdings
22-3 Hundsun International (PTC) Ltd Hundsun International Subsidiary of
102 / 2442022 Annual Report
Intercontinental Holdings
Guangdong Yuecai Greater Bay Area Financial Guangdong Institute of
23 Holding subsidiary
Research Institute [Note 2] Finance
Hangzhou Xinglu Equity Investment Partnership
24 Hangzhou Xinglu Holding subsidiary
(L.P.)
Business Intelligence Info. Tech. (Hangzhou) Co. Hangzhou Business
25 Holding subsidiary
Ltd. Intelligence
Shanghai Hundsun Shengtian Network
26 Shengtian Network Wholly-owned subsidiary
Technology Co. Ltd.
27 Hangzhou Zhigu Network Technology Co. Ltd. Zhigu Network Holding subsidiary
28 Zhejiang Jingteng Network Technology Co. Ltd. Jingteng Network Holding subsidiary
Wuxi Xinglu Tiancheng Investment Management
29 Wuxi Xinglu Holding subsidiary
Partnership (L.P.)
Hundsun IHS Markit China Technologies Co.
30 IHS Markit Holding subsidiary
Ltd.Hundsun IHS Markit China (Hong Kong) IHS Markit (Hong
30-1 Subsidiary of IHS Markit
Technologies Limited Kong)
31 BusinessMatrix Software Technology Ltd. BusinessMatrix Holding subsidiary
Nanjing Xingcheng Equity Investment Partnership
32 Nanjing Xingcheng Holding subsidiary
(L.P.)
Shanghai Genus-Finance Information Technology
33 Shanghai Genus Holding subsidiary
Co. Ltd.Subsidiary of Shanghai
33-1 GenSys Technology (International) Limited GenSys Technology
Genus
Hundsun iBontal (Guangdong) Technology Co.
34 Hundsun iBontal Holding subsidiary
Ltd.Zhejiang Xunchang Wendao Network Information
35 Xunchang Wendao Holding subsidiary
Technology Co. Ltd.Nanjing Xingding Equity Investment Partnership
36 Nanjing Xingding Holding subsidiary
(L.P.)
Hangzhou Hengshu Jinrencai Technology Co.
37 Hangzhou Hengshu Holding subsidiary
Ltd.Hangzhou Hundsun Digital Intelligence Qiyuan
Digital Intelligence
38 Equity Investment Partnership (Limited Holding subsidiary
Qiyuan
Partnership)
Nanjing Hundsun Jiaocha Information
39 Jiaocha Information Holding subsidiary
Technology Co. Ltd.[Note 1] Shanshang Network completed the deregistration procedures with the industrial and commercial
authority on May 31 2022
[Note 2] Guangdong Institute of Finance has not been included in the consolidation scope since December
272022
IV. Basis of Preparation of Financial Statements
1. Basis of Preparation
The financial statements of the Company are presented on a continuing operation basis.
2. Continuing Operation
√Applicable □Not Applicable
There were no events or circumstances that would give rise to material doubt about the Company's
ability to continue as a going concern during 12 months from the Reporting Period.
103 / 2442022 Annual Report
V. Major Accounting Policies and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
√Applicable □Not Applicable
The Company has formulated specific accounting policies and accounting estimates for transactions or
events such as impairment of financial instruments depreciation of fixed assets depreciation of right-to-
use assets amortization of intangible assets and recognition of income according to the actual production
and operation characteristics.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company are prepared in accordance with the requirements of the
Accounting Standards for Business Enterprises and truly and fully present the information such as the
financial position business performance changes in shareholders' equity and cash flows of the
Company.
2. Accounting Period
The accounting year of the Company is from January 1 to December 31.
3. Operating Cycle
√Applicable □Not Applicable
The Company adopts 12 months to identify the current nature of assets and liabilities since the operating
cycle is too short for the Company's business.
4. Functional Currency
The Company and its domestic subsidiaries adopt RMB as their functional currency and its overseas
subsidiaries such as Japan Hundsun Hundsun International Technologies Hundsun Holdings Hundsun
Ayers Hundsun HK Ayers Technologies (Singapore) Intercontinental Holdings Hundsun U.S. Chain
Next Hundsun International Hundsun Holdings IHS Markit (Hong Kong) and GenSys Technology
which engaged in overseas operations adopt the currency of their specific economic environments as their
functional currency.
5. Accounting Methods for Business Combination under and Not under Common Control
√Applicable □Not Applicable
(1) Accounting method for business combination under common control
Assets and liabilities obtained by the Company in the business combination are recognized at their
carrying amounts at the combination date as recorded by the acquiree. The Company adjusts its capital
reserves by the difference between the carrying amount of the owners' equity in the acquiree accounted
for in the consolidated financial statements of the ultimate controlling party and the carrying amount of
the consideration paid for the business combination (or aggregate carrying amount of the shares issued).If the balance of the capital reserve is insufficient for the written-off the retained profits will be adjusted
accordingly.
(2) Accounting method for business combination not under common control
Where the combination cost exceeds the fair value of the acquirees’ identifiable net assets on the
combination date in the business combination the difference is recognized as goodwill. Where the
combination cost is less than the fair value of the acquiree’s identifiable net assets in the business
combination the measurement of the fair value of various identifiable assets liabilities and contingent
liabilities acquired from the acquirees and the combination cost will be reviewed first and the difference
is charged to the current profit or loss in the event the combination cost by the acquirer is still less than
the fair value of the acquiree's identifiable net assets in the business combination after review.
6. Preparation of Consolidated Financial Statements
√Applicable □Not Applicable
The parent company shall include all of its subsidiaries in the consolidation scope of consolidated
financial statements. Consolidated financial statements are prepared in accordance with Accounting
104 / 2442022 Annual Report
Standard for Business Enterprise No. 33-Consolidated Financial Statements and based on financial
statements of the parent Company and its subsidiaries and other related information.
7. Classification of Joint Arrangement and Accounting Method for Joint Operation
√Applicable □Not Applicable
(1) A joint arrangement is divided into joint operation and joint venture.
(2) When the Company is a party of a joint operation the following items associated with the interest
share of the joint operation will be recognized:
1) Recognizing the assets held solely and the assets held jointly identified as per its shares;
2) Recognizing the liabilities borne solely and the liabilities borne jointly identified as per its shares;
3) The Company shall identify the income generated from the sale of shares in joint operation;
4) The revenue arising from the disposal of assets of the joint operation recognized according to the
holding shares of the Company;
5) The Company shall identify the expenses incurred alone and the expenses incurred from joint
operation according to the Company's share.
8. Recognition Standards for Cash and Cash Equivalents
Cash equivalents represent the enterprises' short-term (generally maturing within three months from the
date of purchase) and highly liquid investments that are readily convertible to known amounts of cash
and subject to an insignificant risk of changes in value.
9. Translation of Foreign Currency Operations and Foreign Currency Statements
√Applicable □Not Applicable
(1) Foreign currency transaction conversion
Upon initial recognition foreign currency transactions are translated into amounts in RMB at
exchange rates that approximate the spot exchange rates on the dates of transactions. On the balance sheet
date foreign currency monetary items are translated at the spot exchange rate on the balance sheet date.The translation differences arising from different exchange rates except those relating to the principle of
and interests on the foreign currency borrowings for the acquisition construction or production of assets
eligible for capitalization are charged to the current profit or loss. Also on the balance sheet date foreign
currency non-monetary items measured at historical cost continue to be translated at the rates that
approximate the spot exchange rates on the dates of transactions and it does not change its carrying amount
in RMB. Foreign currency non-monetary items measured at fair value are translated at the spot exchange
rate on the fair value recognition date. The differences arising from the above translations are charged to
the current profit or loss or other comprehensive income for the current period.
(2) Foreign currency translation in the statements
The asset and liability items in the balance sheet shall be translated at the spot exchange rate on the
balance sheet date; the owner’s equity items except for the items of “undistributed profit” shall be
translated at the spot exchange rate on the transaction date; the income and expenditure items in the profit
statement shall be translated at the similar rate of the spot exchange rate on the transaction date. The
foreign currency translation differences in the statements arising from the above translations are charged
to other comprehensive income.
10. Financial Instruments
√Applicable □Not Applicable
(1) Classification of financial assets and financial liabilities
The Company classifies its financial assets into the following three categories at initial recognition:
1) financial assets at amortized cost; 2) financial assets at fair value through other comprehensive income;
3) financial assets at fair value through profit or loss (FVTPL).
The Company classifies its financial liabilities into the following four categories at initial recognition:
1) financial liabilities at FVTPL; 2) financial liabilities arising from the transfer of financial assets which
did not qualify for derecognition or continuing involvement in the transferred financial assets; 3) financial
guarantee contracts not classified as those specified in the above item 1) or 2) and loan commitment for
loans to be granted at an interest rate below the market rate which is not classified as those specified in
the above item 1); 4) financial liabilities at amortized cost.
105 / 2442022 Annual Report
(2) Recognition measurement and derecognition of financial assets and financial liabilities
1) Basis of recognition and initial measurement method of financial assets and financial liabilities
The Company recognizes a financial asset or a financial liability when being one party to a financial
instrument contract. Financial assets or financial liabilities are initially recognized at fair value. For
financial assets or financial liabilities at FVTPL the relevant transaction costs are directly recognized in
profit or loss for the period; for other financial assets or financial liabilities the relevant transaction costs
are recognized in their initial recognition amount. However accounts receivable without a significant
financing component initially recognized by the Company or financing components not considered by
the Company in a contract valid for less than one year are initially measured at transaction price as defined
in the Accounting Standards for Business Enterprises No.14 - Revenue.
2) Subsequent measurement of financial assets
* Financial assets at amortized cost
These financial assets are subsequently measured at amortized cost using the effective interest
method. Any gains or losses on financial assets at amortized cost which are not part of the hedging
relationship are charged to the current profit or loss at derecognition reclassification amortization using
the effective interest method or recognition of impairment.* Debt instrument investments at fair value through other comprehensive income
These debt instrument investments are subsequently measured at fair value. Interest impairment
losses or gains and exchange gains or losses calculated using the effective interest method are charged to
the current profit or loss while other gains or losses are charged to other comprehensive income. At
derecognition cumulative gains or losses previously charged to other comprehensive income are
transferred from other comprehensive income and charged to the current profit or loss.* Equity instrument investments at fair value through other comprehensive income
These debt instrument investments are subsequently measured at fair value. Dividends obtained
(excluding those obtained as investment costs recovered) are charged to the current profit or loss while
other gains or losses are charged to other comprehensive income. At derecognition cumulative gains or
losses previously charged to other comprehensive income are transferred from other comprehensive
income and charged to retained earnings.* Financial assets at FVTPL
These financial assets are subsequently measured at fair value and any gains or losses therefrom
(including interest and dividend incomes) are charged to the current profit or loss unless such financial
assets are part of the hedging relationship
3) Subsequent measurement of financial liabilities
* Financial liabilities at FVTPL
These financial liabilities include held-for-trading liabilities (including derivative instruments
classified as financial liabilities) and financial liabilities designated as at FVTPL. Such financial liabilities
are subsequently measured at fair value. Changes in the fair value of financial liabilities designated at
FVTPL as a result of changes in the Company’s own credit risk are charged to other comprehensive
income unless this approach creates or enlarges an accounting mismatch in the profit or loss. Other gains
or losses on such financial liabilities (including interest expenses and changes in fair value other than as a
result of changes in the Company’s own credit risk) are charged to the current profit or loss unless such
financial liabilities are part of the hedging relationship. At derecognition cumulative gains or losses
previously charged to other comprehensive income are transferred from other comprehensive income and
charged to retained earnings.* Financial liabilities arising from the transfer of financial assets which did not qualify for
derecognition or continuing involvement in the transferred financial assets are measured in accordance
with the Accounting Standards for Business Enterprises No. 23 -Transfer of Financial Assets.* Financial guarantee contracts not classified as those specified in the above item * or * and
loan commitment for loans to be granted at an interest rate below the market rate which is not classified
as those specified in the above item *
After initial recognition the amounts in the above two cases are subsequently measured at the higher
of I) provisions for losses determined according to requirements on the impairment of financial
instruments; II) the initially recognized amount less accumulated amortization determined according to
Accounting Standards for Business Enterprises No. 14 - Revenue.* Financial liabilities at amortized cost
106 / 2442022 Annual Report
These financial liabilities are measured at amortized cost using the effective interest method. Any
gains or losses on financial liabilities at amortized cost and not part of any hedging relationship are charged
to the current profit or loss at derecognition or amortization using the effective interest method.
4) Derecognition of financial assets and financial liabilities
* Financial assets are derecognized when:
I) the contractual rights to the cash flows from the financial assets expire;
II) the financial assets have been transferred and such transfer meets the requirements of the
Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets on the derecognition
of financial assets.* Financial liabilities (or part thereof) are derecognized if present obligations for the financial
liabilities (or part thereof) are released.
(3) Recognition basis and measurement for transfer of financial assets
When transferring substantially all the risks and rewards of ownership of the financial assets the
Company shall derecognize the financial assets and recognize separately as assets or liabilities any rights
and obligations created or retained in the transfer. When retaining substantially all the risks and rewards
of ownership of the financial assets the Company shall continue to recognize the financial assets. If the
Company neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset and (1) if the Company has not retained control of the financial asset it shall derecognize the
financial assets and recognize any rights and obligations created or retained in the transfer separately as
assets or liabilities; (2) if the Company has retained control of the financial asset it shall continue to
recognize the financial asset to the extent of its continuing involvement in the financial asset and relevant
liabilities accordingly.If a transfer of financial assets in their entirety qualifies for derecognition the difference between the
following two items shall be charged to the current profit or loss: (1) the carrying amount of the transferred
financial assets at the date of derecognition; (2) the sum of the consideration received for the transfer of
financial assets and the portion of accumulated fair value adjustments previously charged to other
comprehensive income which is derecognized (with the transferred assets being debt instrument
investments at fair value through other comprehensive income). If a part of the financial assets is
transferred and such transferred portion qualifies for derecognition in its entirety the carrying amount of
the financial asset prior to the transfer is allocated between the portion derecognized and the portion
retained at their respective relative fair values on the date of transfer and the difference between the
following two items is charged to the current profit or loss: (1) the carrying amount of the portion
derecognized; (2) the sum of the consideration of the portion derecognized and the portion of accumulated
fair value adjustments previously charged to other comprehensive income which is derecognized (with the
transferred assets being debt instrument investments at fair value through other comprehensive income).
(4) Determination of fair value of financial assets and financial liabilities
The Company recognizes the fair values of relevant financial assets and financial liabilities by
adopting valuation techniques that are currently applicable and have sufficient data available and other
information support. The Company categorizes inputs of the valuation techniques into the following levels:
1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities
available for entities on the measurement date;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for
the relevant asset or liability either directly or indirectly; including similar quoted prices of assets and
liabilities in active markets the same or similar quoted prices of assets and liabilities in non-active markets
other significant inputs other than quoted prices such as observable interest rate curves and return curves
in the normal quoting intervals and the inputs verified by the markets;
3) Level 3 inputs are unobservable inputs for the relevant asset or liability including interest rate
volatility in equity prices future cash flows in respect of the abandoned obligations committed in the
business combination and financial predictions using own data which cannot be directly observed or
verified by observable market data.
(5) Impairment of financial instruments
1) Measurement of and accounting for impairment of financial instruments
Based on expected credit losses the Company accounts for the impairment of and recognizes
provisions for losses on financial assets at amortized cost debt instrument investments at fair value
through other comprehensive income contract assets lease receivables loan commitment not classified
as financial liabilities at fair value through profit or loss and financial guarantee contracts not classified
107 / 2442022 Annual Report
as financial liabilities at fair value through profit or loss or financial liabilities arising from the transfer of
financial assets not qualify for derecognition or continuing involvement in the transferred financial assets.The expected credit loss refers to the weighted average of the credit losses of financial instruments
that are weighted by the risk of default. Credit loss refers to the difference between all contractual cash
flows receivable from the contract and all cash flows expected to be received by the Company at the
original effective interest rate namely the present value of all cash shortages. Among them purchased or
originated credit-impaired financial assets shall be discounted at the adjusted effective interest rate of the
financial assets.For purchased or originated credit-impaired financial assets the Company recognizes as loss reserves
on the balance sheet date only the cumulative changes in lifetime expected credit losses from initial
recognition.For lease receivables and receivables and contract assets arising from a transaction under the
Accounting Standards for Business Enterprises No. 14 - Revenue the Company calculates the loss reserves
based on the lifetime expected credit loss using a simplified measurement method.In addition to financial assets in respect of which the aforesaid measurement approaches are adopted
the Company assesses whether there has been a significant increase in its credit risk on each balance sheet
date. If there has been a significant increase in the credit risk since initial recognition the loss reserves are
measured at the lifetime expected credit loss. If there has not been a significant increase in the credit risk
since initial recognition the loss reserves are measured at the 12-month expected credit loss.Whether there has been a significant increase in the credit risk on a financial instrument since initial
recognition is determined using available reasonable and supportable information including forward-
looking information and by comparing the risk of default on the financial instrument on the balance sheet
date with that on the date of initial recognition.The Company assumes that there has not been a significant increase in the credit risk if a financial
instrument is determined to have a low credit risk on the balance sheet date.The Company assesses the expected credit risk and measures the expected credit losses on the basis
of an individual financial instrument or a portfolio of financial instruments. When conducting an
assessment and measurement based on a portfolio of financial instruments the Company categorizes
financial instruments into various groups based on common characteristics of risks.Expected credit losses are remeasured on each balance sheet date and any increase or reversal of loss
reserves arising therefrom is charged to the current profit or loss as impairment losses or gains. For a
financial asset at amortized cost the loss reserve reduces the carrying amount of the financial asset as
presented in the balance sheet. For a debt instrument investment at fair value through other comprehensive
income the loss reverse is recognized in other comprehensive income without reducing the carrying
amount of the financial asset.
(6) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are presented separately from each other in the balance sheet
and are not offset. However financial assets and financial liabilities are offset and the net amount is
presented in the balance sheet when both of the following conditions are met: 1) the Company has a legal
right to set off the recognized amounts and the legal right is currently enforceable; 2) the Company intends
either to settle on a net basis or to realize the financial assets and settle the financial liabilities
simultaneously.When the transfer of financial assets fails to meet the derecognition conditions the Company shall
not offset such transferred financial assets with the relevant liabilities.
11. Notes receivable
Determination Method and Accounting Method of Expected Credit Loss of Bills Receivable
√Applicable □Not Applicable
Item Grouping basis Expected credit loss calculation method
The expected credit loss is calculated with
Bank acceptance bill receivable reference to historical credit loss experience
Bill Type in consideration of current conditions and
Commercial acceptance bill expectation of future economic conditions
receivable and based on the default risk exposure and
108 / 2442022 Annual Report
lifetime expected credit loss rate.
12. Accounts receivable
Determination Method and Accounting Method of Expected Credit Loss of Accounts Receivable
√Applicable □Not Applicable
Item Grouping basis Expected credit loss calculation method
A table of aging of accounts receivable and
lifetime expected credit loss rates is
prepared and the expected credit loss is
Accounts receivable - grouped by
Aging calculated with reference to historical credit
aging
loss experience in consideration of current
conditions and expectations of future
economic conditions.The expected credit loss is calculated with
reference to historical credit loss experience
Accounts receivable - grouped by
in consideration of current conditions and
related party transactions in the Nature
expectation of future economic conditions
consolidation scope
and based on the default risk exposure and
lifetime expected credit loss rate.Accounts Receivable - A Table of Aging of Accounts Receivable and Lifetime Expected Credit Loss
Rates Grouped by Aging
Aging Expected credit loss rate of accounts receivable (%)
Within 1 year (inclusive the same below) 5.00
1-2 years 10.00
2-3 years 30.00
Over 3 years 100.00
13. Receivables financing
□Applicable √Not Applicable
14. Other receivables
Determination Method and Accounting Method of Expected Credit Loss of Other Receivables
√Applicable □Not Applicable
Item Grouping basis Expected credit loss calculation method
Other receivables - grouped by The expected credit loss is calculated with
related party transactions in the Nature reference to historical credit loss experience
consolidation scope in consideration of current conditions and
expectation of future economic conditions
Other receivables - grouped by and based on the default risk exposure and
Aging
aging 12-month or lifetime expected credit loss
rate.
15. Inventories
√Applicable □Not Applicable
(1) Classification
109 / 2442022 Annual Report
Inventories are finished goods or merchandise held for sale in the ordinary course of business
products in production or materials or supplies to be consumed in production or in the rendering of
services.
(2) Valuation method for dispatched inventories
The cost of inventories transferred out is determined using the individual pricing method.
(3) Basis for determining the net realizable value of inventories
On the balance sheet date inventories are carried at the cost or net realizable value (whichever is
lower). Any excess of the cost over the net realizable value of each item/class of inventories is recognized
as a provision for diminution in the value of inventories. For inventories directly for sale net realizable
value is determined based on the estimated selling price in the ordinary course of business less the
estimated costs necessary to make the sale and relevant taxes. For inventories that need processing net
realizable value is determined based on the estimated selling price of finished goods in the ordinary course
of business less the estimated costs of completion and the estimated costs necessary to make the sale and
relevant taxes. On the balance sheet date for an item of inventories where a portion is subject to contractual
price while the remainder is not their net realizable values are determined and compared with their
corresponding costs respectively to recognize the amount of provision or reversal of provision for
diminution in the value of inventories.
(4) Inventory system
The Company maintains a perpetual inventory system.
(5) Amortization method of low value consumables and packaging materials
1) Low-value consumables
Low-value consumables are amortized in full when received for use.
2) Packing materials
Low-value consumables are amortized in full when received for use.
16. Contract assets
(1). Recognition methods and standards of contract assets
√Applicable □Not Applicable
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Company will present the net
amount after offsetting the contract assets with the contract liabilities under the same contract.The Company presents its right to receive consideration from customers unconditionally (i.e. only
depending on the passage of time) as receivables and the right to receive consideration for the transfer of
goods to customers (which depends on other factors other than the passage of time) as a contract asset.
(2). Determination method and accounting method of expected credit loss of contract assets
√Applicable □Not Applicable
Item Grouping basis Expected credit loss calculation method
The expected credit loss is calculated with
reference to historical credit loss experience
in consideration of current conditions and
Contract assets – grouped by aging Aging
expectation of future economic conditions
and based on the default risk exposure and
lifetime expected credit loss rate.The expected credit loss is calculated with
reference to historical credit loss experience
Contract assets – grouped by related
in consideration of current conditions and
party transactions in the Nature
expectation of future economic conditions
consolidation scope
and based on the default risk exposure and
lifetime expected credit loss rate.
17. Held-for-sale assets
□Applicable √Not Applicable
110 / 2442022 Annual Report
18. Creditor's right investment
(1). Determination method and accounting method of expected credit loss of debt investments
□Applicable √Not Applicable
19. Other debt investments
(1). Recognition method and accounting method of expected credit losses of other debt investments
√Applicable □Not Applicable
Item Grouping basis Expected credit loss calculation method
Other debt investments - grouped by The expected credit loss is calculated with
government debts reference to historical credit loss experience
Other debt investments - grouped by in consideration of current conditions and
Type of debts
financial debts expectation of future economic conditions
Other debt investments - grouped by and based on the default risk exposure and 12-
enterprise debts month or lifetime expected credit loss rate.
20. Long-term receivables
(1). Recognition method and accounting method of expected credit losses of long-term receivables
□Applicable √Not Applicable
21. Long-term equity investments
√Applicable □Not Applicable
(1) Judgement on joint control and significant influence
Joint control is recognized as control held for a certain arrangement under the relevant agreement
the relevant activity of which should be unanimously agreed by the parties sharing the control. The
influence is deemed as significant if there involves the power of participating in decision-making on the
financial and operational policies of the investee but the power cannot control or jointly control with other
parties the formulation of the policies.
(2) Recognition of investment costs
1) If formed through a business combination under joint control and the consideration for such
combination is settled by cash payment transfer of non-cash assets debt obligation and issuance of equity
securities by the acquirer the initial investment cost shall be the Company's share of the carrying amount
of shareholders' equity of the acquiree presented in the consolidated financial statement of the equities
under common control on the combination date. The difference between the initial investment cost of
long-term equity investment and the carrying value of the paid combination consideration or total par
value of issued shares adjusts the capital reserve. Retained earnings shall be adjusted if the capital reserve
is not sufficient for offset.The Company realizes long-term equity investment formed through business combination under joint
control by trading step by step and judges whether the transaction is categorized as a "package deal" or
not. If so all transactions will be treated as control transactions in accounting. If not the initial investment
cost shall be the share of the carrying amount presented in the consolidated financial statement of the
equities under common control based on the net assets of the acquiree after combination on the
combination date. The difference between the initial investment cost of long-term equity investment on
the combination date and the carrying amount of the long-term equity investment before combination plus
the carrying amount of new share consideration further obtained on the combination date shall be adjusted
to capital reserve. Retained earnings shall be adjusted if the capital reserve is not sufficient for offset.
2) If formed through a business combination under common control the initial investment cost is the
fair value of the consideration given for combination at the combination date.As for business combinations that involve enterprises not under common control and are carried out
in stages the separate financial statements and the consolidated financial statements shall be treated
separately in accounting:
111 / 2442022 Annual Report
* In the separate financial statements the initial investment cost accounted for using the newly
adopted cost method is the sum of the carrying value of equity investment originally held and the addition
of investment cost.* The Company judges whether the transaction is categorized as a "package deal" for the purpose
of the consolidated financial statements. If so all transactions will be treated as control transactions in
accounting. If it is not “A Package Deal” acquiree’s equity held before the acquisition date shall be re-
measured at its fair value at the acquisition date and the balance between fair value and book value shall
be included in investment income of current period. For acquiree’s equity held before the acquisition date
involving other comprehensive income calculated by the equity method the related other comprehensive
income shall be converted into income on investment at the acquisition date. However other
comprehensive benefits arising from the re-measurement of the net liabilities or net assets of the defined
benefit plan by the investee are excluded.
3) The initial investment cost acquired otherwise than through a business combination is initially
recognized at the actual consideration paid if the investment is acquired by cash or at the fair value of the
equity securities issued if the investment is acquired by issuing equity securities. The initial investment
costs acquired through debt restructuring are recognized pursuant to the Accounting Standard for Business
Enterprises No.12 - Debt Restructuring. The initial investment costs acquired through the exchange of
non-monetary assets are recognized pursuant to the Accounting Standard for Business Enterprises No. 7 -
Exchange of Non-monetary Assets.
(3) Subsequent measurement and determining method of profit or loss
When the Company controls the investee the cost method is adopted for long-term equity investment
while the equity method is adopted for long-term equity investment of associates and joint ventures in
accounting.
(4) Step-by-step disposal of investment in subsidiaries through a series of transactions to loss of
control
1) Separate financial statements
For the disposal of equity the difference between the carrying amount and the actual consideration
obtained is charged to the current profit or loss. The equity method is adopted for the remaining equities
that have a significant influence on the investee or perform joint control with other parties in accounting.The remaining equities that do not control jointly control or have a significant influence on the investee
shall be calculated according to the Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments.
2) Consolidated financial statements
* For the disposal of investment in a subsidiary to loss of its right to control in stages through a
series of transactions that are not categorized as a "package deal"
Prior to the loss of the right to control the capital reserve (capital premium) is adjusted with the
difference between the consideration of the disposal and the entitled share of the net assets of the
subsidiary that would have been entitled to by the disposal of long-term equity investment and
continuously accounted for from the acquisition date or combination date. If the balance of the capital
premium is insufficient for the written-off then the retained earnings will be written off accordingly.When the right to control the former subsidiary is lost the remaining equities are re-measured at fair
value on the date when the right to control is lost. The sum of the consideration obtained from disposal
and the fair value of the remaining equities less the share of the net assets of the subsidiary that would
have been entitled to and continuously accounted for according to the original shareholding percentage
from the acquisition date or combination date is charged to the investment income for the period covering
the date of loss of control offsetting the goodwill at the same time. Other comprehensive income related
to the equity investment in the former subsidiary shall be transferred to the investment income for the
period covering the date of loss of control.* For the disposal of investment in a subsidiary to loss of its right to control in stages through
various transactions that are categorized as a "package deal"
The transactions are treated as one single transaction of disposal of a subsidiary and loss of the right
to control. However prior to the loss of the right to control the difference between each of the
consideration of disposal and the share of net assets of that subsidiary that would have been entitled to by
the disposal of investment is recognized in other comprehensive income in the consolidated financial
statements and transferred to profit or loss for the period covering the date of loss of control.
112 / 2442022 Annual Report
22. Investment properties
(1). If the cost method is adopted:
Depreciation or amortization method
Investment properties are depreciated or amortized using a method similar to that for fixed assets
and intangible assets.
23. Fixed assets
(1). Recognition condition
√Applicable □Not Applicable
Fixed assets refer to tangible assets held for the purpose of producing commodities providing labor
services leasing or operation and management with an age exceeding one fiscal year. Fixed assets are
recognized when economic benefits are likely to flow in and costs can be measured reliably.
(2). Depreciation method
√Applicable □Not Applicable
Depreciable life Annual depreciation
Class Depreciation method Residual ratio
(years) rate
Buildings Straight-line 5-50 5.00% 1.90%-19.00%
depreciation
Electronic Straight-line 3-5 5.00% 19.00%-31.67%
equipment depreciation
Vehicles Straight-line 5 5.00% 19.00%
depreciation
Other equipment Straight-line 3-12 5.00% 7.92%-31.67%
depreciation
(3). Appraisal Basis Pricing and Depreciation Method of the Financing Leased Fixed Assets
□Applicable √Not Applicable
24. Construction in progress
√Applicable □Not Applicable
(1) Construction in progress is recognized when economic benefits are likely to flow in and costs can
be measured reliably. The construction in progress shall be measured at the actual cost incurred before the
assets under construction become ready for intended use.
(2) Construction-in-progress is transferred into fixed assets at the actual cost when it is ready for its
intended use. For a completed project ready for its intended use but the final accounts for completion have
not been made the asset is transferred into fixed assets at an estimated value. After the final accounts for
completion have been made the previously estimated value is adjusted at the actual cost but there is no
need to adjust the depreciation retrospectively.
25. Borrowing Costs
√Applicable □Not Applicable
(1) Recognition principle for capitalization of borrowing costs
The borrowing costs of the Company which can be assigned to acquisition and construction or
production of assets in compliance with capitalization conditions shall be capitalized and charged to
relevant asset costs; other borrowing costs shall be recognized as expenses when they are incurred and
shall be charged to current profits and losses.
(2) Capitalization period of borrowing costs
1) Borrowing costs shall be capitalized when: * capital expenditures have been incurred; *
borrowing costs have been incurred; * activities relating to the acquisition construction or origination
of assets necessary to make the asset ready for its intended use or sale have commenced.
2) Capitalization of borrowing costs should be suspended during periods in which abnormal
interruption has lasted for more than three months in the acquisition construction or origination of assets
113 / 2442022 Annual Report
qualified for capitalization. The borrowing costs incurred during interruption are recognized as current
expenses until the acquisition construction or origination activities resume.
3) The capitalization of borrowing costs ceases when the acquired constructed or originated assets
qualified for capitalization are ready for their intended use or sale.
(3) Capitalization rate and amount of borrowing costs
For specific borrowings used to acquire construct or originate assets qualified for capitalization the
amount of interest costs (including amortization of discount or premium determined by the effective
interest method) actually incurred on such borrowings for the period shall be capitalized after deducting
any interest earned from depositing the unused borrowings in the bank or any investment income arising
from the temporary investment of those borrowings. For general borrowings used to acquire construct or
originate assets qualified for capitalization the capitalized amount of interests on general borrowings shall
be determined by multiplying the weighted average (of the excess of cumulative assets expenditures over
the specific borrowings) by the capitalization rate (of used general borrowings).
26. Biological assets
□Applicable √Not Applicable
27. Oil and gas assets
□Applicable √Not Applicable
28. Right-of-use assets
√Applicable □Not Applicable
The right-of-use shall be initially measured at costs including 1) the initial measured amount of lease
liabilities; 2) the lease amount paid on or before the commencement date of the lease term (in case of lease
incentives the amount related to the lease incentives already enjoyed shall be deducted); 3) the initial and
direct costs borne by the lessee; 4) costs expected to incur from the lessee's dismantling and removing the
leased assets recovering the original site of the leased assets or restoring the leased assets to the state as
specified in the lease provisions.The Company depreciates the right-to-use assets by the straight-line method. Where the ownership
of the leased assets can be reasonably determined at the end of the lease term the Company shall depreciate
the leased assets during the remaining life of such assets. In case of a failure to determine the ownership
of the leased assets reasonably at the end of the lease term the Company shall depreciate the leased assets
within the lease term or the remaining life of such assets whichever is shorter.
29. Intangible assets
(1). Pricing method life and impairment test
√Applicable □Not Applicable
1) Intangible assets including land use rights patent rights and non-patented technologies are
initially measured at cost.
2) Intangible assets with a definite life are systematically and reasonably amortized during the life in
accordance with the expected realization of economic benefits related to the intangible assets. Intangible
assets whose economic benefits realization cannot be reliably determined are amortized on a straight-line
basis during the following life: The specific period is shown as follows:
Item Amortization life (years)
Land use rights 40-50
Trademark rights 10
Management software and copyright 5-10
Patent technology and non-patent technology 5-10
Product management right 20
(2). Accounting policy of internal research and development expenditure
√Applicable □Not Applicable
114 / 2442022 Annual Report
Expenditures for internal research and development activities are charged to the current profit and
loss when incurred. The expenditures in development stage of the internal research & development project
can be recognized as intangible assets if they satisfy all the conditions below: (1) it is technically feasible
to make the intangible assets available for use or sale; (2) it is intended to finish and use or sell the
intangible assets; (3) the model of economic benefits generated by operating the intangible assets can
demonstrate that there is a market for the products manufactured with the intangible assets or for the assets
themselves and the assets used internally can prove serviceable; (4) there are sufficient technical financial
and other resources to support the development and usage or sale of the intangible assets; (5) the
expenditures in development stage of the intangible assets can be reliably measured.Specific criteria for the Company to distinguish the expenditures in the research stage from the
development stage of a research and development project: the research stage involves activities carried
out for planned investigation for acquiring new technology and knowledge and the preparation of
information and related aspects for further development activities with great uncertainty about whether it
will be transferred to development in the future and whether it will form intangible assets after
development. The development stage as opposed to the research stage involves activities completed in
the research stage to a large extent that the basic conditions for the formation of a new product or
technology are in place.
30. Long-term asset impairment
√Applicable □Not Applicable
The recoverable amount of long-term assets such as long-term equity investments investment
property measured at cost fixed assets construction in progress and intangible assets with a finite life is
estimated where there is evidence of impairment on the balance sheet date. An annual impairment test
shall be carried out on goodwill arising from business combination and intangible assets with an indefinite
life whether where there is evidence of impairment. An impairment test is carried out on goodwill together
with its relevant asset group or portfolio of asset groups.When the recoverable amount of such long-term assets is less than the carrying amount thereof the
difference is recognized as the asset impairment reserve and charged to the current profit or loss.
31. Long-term prepaid expense
√Applicable □Not Applicable
Long-term deferred expenses are expenses that have been recognized with an amortization period
over one year (excluding one year). These expenses are recorded as actually incurred and amortized
evenly over the benefit period or specified period. If the long-term deferred expenses fail to benefit the
future accounting period their amortized values are all included in the current profit or loss.
32. Contract liabilities
(1). Recognition method of contract liabilities
√Applicable □Not Applicable
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Company will present the net
amount after offsetting the contract assets with the contract liabilities under the same contract.The Company presents as a contract liability the obligation to transfer goods to customers for
consideration received or receivable from customers.
33. Employee compensation
(1). Accounting method for short-term remuneration
√Applicable □Not Applicable
During the accounting period when employees provide services to the Company the actual short-
term remuneration is recognized as liabilities and charged to the current profit or loss or the cost of related
assets.
(2). Accounting method for post-employment benefits
√Applicable □Not Applicable
115 / 2442022 Annual Report
Post-employment benefits are divided into the defined contribution plan and the defined benefit plan.
1) During the accounting period when an employee provides services for the Company the Company
should recognize the amount payable to a defined contribution plan as a liability and include it in current
profit or loss or relevant asset cost.
2) The accounting method in the defined benefit plan generally includes the following procedures:
* According to the projected unit credit method the unbiased and mutually agreed actuarial
assumptions are adopted by the Company to estimate the relevant demographic variables and financial
variables calculate the obligations arising from the defined benefit plan and determine the period of
relevant obligations belonging thereto. Meanwhile the obligation arising from the defined benefit plan is
discounted to determine the present value of such obligation under the defined benefit plan and the service
cost for the current period;
* Where there are assets in the defined benefit plan the deficit or surplus from the present value of
the defined benefit plan less the fair value of the defined benefit plan is recognized as a net debt or asset
of a defined benefit plan. Where there is a surplus in the defined benefit plan the surplus of the defined
benefit plan and the upper limit of the assets (whichever is lower) will be adopted to calculate the net
assets of the defined benefit plan;
* At the end of the period the cost of employee compensation under the defined benefit plan will
be recognized as the service cost the net interest on the net assets or net debts under the defined benefit
plan and the changes arising from the remeasurement of the net assets or net debts under the defined
benefit plan. The service cost and the net interest on the net assets or net debts under the defined benefit
plan will be recognized in the current profit or loss or relevant assets cost. The changes arising from the
remeasurement of the net assets or net debts under the defined benefit plan will be recognized in other
comprehensive income and shall not be reversed to the profit or less in subsequent accounting periods but
the amounts recognized in other comprehensive income can be transferred within the scope of interests.
(3). Accounting method for dismission benefits
√Applicable □Not Applicable
When there is a plan to provide dismission benefits to employees the employee compensation debts
arising from the recognition of dismission benefits will be recognized in the current profit or loss at the
earlier of: (1) when the Company cannot unilaterally withdraw the dismission benefits for the release of
the labor relationship or the dismission proposal; (2) when the Company recognized relevant costs or
expenses associated with the reorganization of the payment of the dismission benefits.
(4). Accounting method for other long-term benefits
√Applicable □Not Applicable
Other long-term benefits provided by the Company to employees when meeting the conditions of
the defined contribution plan will be subjected to accounting under the defined contribution plan. Other
long-term benefits other than the above benefits will be subjected to accounting under the defined benefit
plan. To simplify corresponding accounting methods the employee compensation costs incurred are
recognized as the service cost and the total net amount of the components such as net interest amount of
net liabilities or net assets in terms of other long-term employees' benefits and changes arising from re-
measuring the net liabilities or net assets in terms of other long-term employees' benefits are recognized
in the current profit or loss or relevant cost of assets.
34. Lease liabilities
√Applicable □Not Applicable
On the inception date of the lease term the Company will recognize the present value of the
outstanding lease payments as lease liabilities. In the process of calculating the present value of lease
payments the interest rate set out in the lease contract is taken as the discount rate. If such an interest rate
is not available the incremental borrowing rate shall be adopted. The difference between the lease
payments and their present value is recognized as an unrecognized financing expense and the interest
expense is recognized at the discount rate of the present value of the recognized lease payments during
each period of the lease term and is charged to the current profit or loss. Variable lease payments not
considered in the measurement of lease liabilities are charged to the current profit or loss when actually
incurred.
116 / 2442022 Annual Report
In case of any changes in the amount of substantive fixed payments the amount expected to be
payable for the residual guarantee the index or rate used to determine the lease payments or the evaluation
result or actual exercise of the call option renewal option or termination option after the inception date of
the lease term the Company will remeasure the lease liabilities at the present value of the changed lease
payments and adjust the carrying amount of the right-of-use assets accordingly. If the carrying amount of
the right-of-use assets is reduced to zero but the lease liabilities still need to be further reduced the
remaining amount is recognized in the current profit or loss.
35. Provision for liabilities
√Applicable □Not Applicable
(1) Where the Company has a present obligation as a result of contingencies such as the provision of
external guarantee litigation product quality warranty and loss-making contract the performance of the
obligations may result in the outflow of economic benefits and the amount of the obligations can be
measured reliably such obligation is recognized as the provisions for liabilities.
(2) Provisions are initially measured at the best estimate of the expenditure required for performing
the present obligation. Carrying amounts of all provisions for liabilities will be reviewed on the balance
sheet date.
36. Share-based payment
√Applicable □Not Applicable
(1) Types of share-based payment
The share-based payments shall consist of equity-settled share-based payments and cash-settled
share-based payments。
(2) Accounting method for implementation modification and termination of share-based payment
1) Equity-settled share-based payment
As to an equity-settled share-based payment in return for services of employees if the right may be
exercised immediately after the grant the fair value of the equity instruments shall on the date of the grant
be charged to the relevant cost or expense and the capital reserves shall be adjusted accordingly. As to an
equity-settled share-based payment in return for employee services if the right cannot be exercised until
the vesting period comes to an end or until the prescribed performance conditions are met then on each
balance sheet date within the vesting period the services obtained in the current period shall based on the
best estimate of the number of vested equity instruments be charged to the relevant costs or expenses at
the fair value of the equities instruments on the date of the grant and the capital reserves shall be adjusted
accordingly.Equity-settled share-based payments in return for services rendered by other parties are measured at
the fair value of the services rendered by other parties on the receiving date if such fair value can be
reliably measured. If the fair value of the services rendered by other parties cannot be reliably measured
equity-settled share-based payments in return for services rendered by other parties are measured at the
fair value of equity instruments on the date of receiving services and charged to relevant costs or expenses
and shareholders' equity is credited accordingly provided that the fair value of equity instruments can be
reliably measured.
2) Cash-settled share-based payments
As to a cash-settled share-based payment instruments in return for services of employee if the right
may be exercised immediately after the grant the fair value of the liability undertaken by the Company
shall on the date of the grant be charged to the relevant costs or expenses and the liabilities shall be
increased accordingly. As to a cash-settled share-based payment in return for services of employee if the
right may not be exercised until the vesting period comes to an end or until the specified performance
conditions are met on each balance sheet date with in the vesting period the services obtained in the
current period shall based on the best estimate of the information about the vesting conditions be charged
to the relevant costs or expenses and the corresponding liabilities at the fair value of the liability
undertaken by the Company.
3) Share-based payment plan modification and termination
When the Company modifies the share-based payment plan if the fair value of the distributed equity
instrument is increased due to the modification the increment of the obtained services shall be recognized
accordingly; if the quantity of the distributed equity instrument is increased due to the modification the
increment of obtained services shall be recognized accordingly. If the Company modifies the vesting
117 / 2442022 Annual Report
conditions on terms favorable to its employees it will consider the vesting conditions after modification
when dealing with the conditions.If the modification decreases the fair value of equity instruments granted the Company continues to
recognize the value of service obtained based on the equity instruments' fair value on the grant date without
any consideration of the decrease on equity instrument's fair value. If the modification decreases the
quantity of equity instruments the Company records the decrease in conformity with the cancellation of
equity instruments granted. If the Company modifies the vesting conditions on terms not favorable to its
employees it will not consider the vesting conditions after modification when dealing with the conditions.If the granted equity instruments are canceled or settled within the vesting period (except that
canceled due to failure to meet the vesting conditions) the Company shall regard the canceling or
settlement as acceleration of the vest and immediately recognize the amount supposed to be recognized
within the residual vesting period.
37. Other financial instruments including preferred shares and perpetual bonds
□Applicable √Not Applicable
38. Revenue
(1). Accounting policies for revenue recognition and measurement
√Applicable □Not Applicable
1) Revenue recognition principles
The Company will evaluate a contract on the effective date of the contract identify all performance
obligations contained in the contract and determine whether the performance obligations are to be
performed within a certain period of time or at a certain time point.A performance obligation is satisfied within a certain period of time if one of the following criteria
is met otherwise it is satisfied at a certain time point: * the customer simultaneously receives and
consumes the benefits provided by the Company's performance as the Company performs; * the
Company's performance creates goods or services that the customer controls as the goods are created; *
the Company's performance does not create an asset with an alternative use to the Company and the
Company has an enforceable right to payment for performance completed to date during the term of the
contract.In the case of an obligation satisfied within a certain period of time the Company shall recognize
revenue the revenue within that period according to the performance progress. If the Company fails to do
so reasonably and expects to recover the costs incurred the revenue is recognized in line with cost incurred
until the performance progress can be reasonably determined. In the case of a performance obligation
satisfied at a certain time point the revenue is recognized at a certain time point when a customer obtains
control of relevant goods or services. To determine the time point at which a customer obtains control of
goods the Company considers the following indicators: * the Company has a present right to payment
for the goods or the customer has the present obligation to pay for the goods; * the Company has
transferred the legal title to the goods to the customer or the customer has legal title to the goods; * the
Company has transferred physical possession of the goods to the customer or the customer has physical
possession of the goods; * the Company has transferred the significant risks and rewards of ownership
of the goods to the customer or the customer has the significant risks and rewards of ownership of the
asset; * the customer has accepted the goods; * other indicators that the customer obtains control of
the goods.
2) Revenue measurement principles
* The Company recognizes revenue at the transaction price apportioned to each individual
performance obligation. Transaction price is the amount of consideration in a contract to which the
Company expects to be entitled in exchange for transferring goods or services to a customer excluding
amounts collected on behalf of third parties or expected to be refunded to a customer.* If a contract has variable consideration the Company determines the appropriate estimate based
on the expected value or the most likely amount provided that a transaction price including variable
consideration shall not exceed the amount of cumulative revenue recognized which is highly unlikely to
be subject to significant reversal when the uncertainty associated with the variable consideration is
subsequently resolved.
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* If a contract contains a significant financing component the Company determines the transaction
price based on the amount that a customer would have paid when it obtains control of goods or services.The difference between the transaction price and the contract consideration is amortized during the term
of the contract using the effective interest method. By the commence date of the contract if the Company
estimates that the interval between customer's control rights of goods or services and the payments of the
customer is not more than one year the significant financing components existing in the contract shall not
be considered.* If there are two or more performance obligations under a contract the Company shall at contract
inception apportion the transaction price to each performance obligation in proportion to the stand-alone
selling prices of goods underlying each performance obligation.
3) Specific methods for revenue recognition
* Revenue from sales of self-developed software products
The Company recognizes revenue when the software product is delivered to the customer and the
customer obtains control over the product as a performance obligation to be performed at a certain time
point usually after taking into account the following factors: I) the Company has a present right to payment
for the goods; II) the Company has transferred the significant risks and rewards of ownership of the goods
to the customer; III) the Company has transferred the legal title to the goods to the customer; IV) the
Company has transferred physical possession of the goods to the customer; V) the customer has accepted
the goods.For the software products within the warranty period stipulated in the contract the Company shall
accrue the software maintenance cost at 0.5% of revenue while recognizing revenue.* Revenue from sales of customized software
The Company recognizes revenue when the software product is delivered to the customer and the
customer obtains control over the product as a performance obligation to be performed at a certain time
point usually after taking into account the following factors: I) the Company has a present right to payment
for the goods; II) the Company has transferred the significant risks and rewards of ownership of the goods
to the customer; III) the Company has transferred the legal title to the goods to the customer; IV) the
Company has transferred physical possession of the goods to the customer; V) the customer has accepted
the goods.For the software products within the warranty period stipulated in the contract the Company shall
accrue the software maintenance cost at 0.5% of revenue while recognizing revenue.* Revenue from software services
For software service contracts where I) the customer simultaneously receives and consumes the
benefits provided by the Company's performance as the Company performs; II) or the customer can control
the goods or services in progress during the Company's performance; III) or the software services provided
by the Company during the Company's performance have alternative use and the Company has an
enforceable right to payment for performance completed to date the Company recognizes revenue as a
performance obligation to be performed within a period of time in accordance with the progress of
performance except when the progress of the performance cannot be reasonably determined. The
Company determines the progress of the performance of services provided in accordance with the input
method based on the costs incurred or the time schedule. When the progress of the performance cannot
be reasonably determined and the costs incurred by the Company are expected to be compensated the
revenue will be recognized based on the amount of costs incurred until the progress of the performance
can be reasonably determined. For services that do not meet the above requirements for revenue
recognition according to the performance progress the Company recognizes revenue when the services
have been provided the price has been received or evidence of collection has been obtained.* Revenue from sales of outsourced goods
Outsourced goods include outsourced software and hardware goods. The Company recognizes
revenue as a performance obligation to be performed at a certain time point usually when the outsourced
goods are delivered to the customer and the customer obtains control over the goods taking into account
the following factors: I) the Company has a present right to payment for the goods; II) the Company has
transferred the significant risks and rewards of ownership of the goods to the customer; III) the Company
has transferred the legal title to the goods to the customer; IV) the Company has transferred physical
possession of the goods to the customer; V) the customer has accepted the goods.* Revenue from property management of science park
119 / 2442022 Annual Report
The Company's provision of property management services is a performance obligation to be
performed within a certain period of time. The Company determines the progress of the performance of
the service provided based on the proportion of costs incurred to the estimated total costs and recognizes
revenue based on the progress of the performance. When the progress of the performance cannot be
reasonably determined and the costs incurred by the Company are expected to be compensated the
revenue will be recognized based on the amount of costs incurred until the progress of the performance
can be reasonably determined.* Revenue from property rental
The Company's principles for recognizing the revenue from property rental are detailed in Note V.42
to the financial statements.* Revenue from other businesses
The performance obligations under contracts are fulfilled in accordance with the relevant contracts
and agreements i.e. revenue is recognized when the customer obtains the right to control the relevant
goods.
(2). Differences in accounting policies for revenue recognition due to different business models for
the same type of business
□Applicable √Not Applicable
39. Contract costs
√Applicable □Not Applicable
Assets related to contract costs include contract acquisition costs and contract performance costs.If the incremental cost incurred by the Company in obtaining the contract can be expected to be
recovered the contract acquisition cost shall be recognized as an asset. The contract acquisition cost with
an amortization period not exceeding one year is directly charged to the current profit or loss when incurred.The costs incurred by the Company for the performance of the contract which does not fall under the
scope of the standards relating to inventories fixed assets and intangible assets are recognized as an asset
as contract performance costs when the following conditions are met:
(1) Such cost is directly related to a current or expected contract including direct labor direct
materials manufacturing costs (or similar costs) costs clearly borne by the customer and other costs
incurred solely due to the contract;
(2) Such cost increases the resources of the Company to fulfill its performance obligations in the
future;
(3) Such cost is expected to be recovered.
The Company will amortize assets related to the cost of the contract are amortized on the same basis
as the revenue recognition of the goods or services related to the asset and charged the cost to the current
profit or loss when incurred.If the fair value of assets related to contract costs exceeds the remaining consideration expected to be
obtained due to the transfer of goods or services related to the assets less estimated costs to be incurred a
provision for impairment is made for the excess which is recognized as impairment losses on assets. If
the remaining consideration expected to be obtained due to the transfer of goods or services related to the
assets less estimated costs to be incurred exceeds the fair value of assets due to subsequent changes in
impairment conditions existing in prior periods the provision previously made for impairment of the assets
is reversed and recorded in the current profit or loss provided that the carrying amount of the assets after
the reversal is not more than the carrying amount of the assets which would have been recorded at the date
of reversal if the provision for impairment had not been made.
40. Government grants
√Applicable □Not Applicable
(1) The government grants are recognized when 1) the Company is able to comply with the conditions
attaching to the government grants; 2) the Company is able to receive the government grants. Government
grants which are monetary assets are measured at the amount received or receivable. Government grants
which are non-monetary assets are measured at fair value or at nominal amount if the fair value cannot
be reliably measured.
(2) Judgment basis and accounting methods for government grants related to assets
120 / 2442022 Annual Report
Government grants which shall be used for constructing or otherwise forming long-term assets as
specified in government documents are classified as government grants related to assets. In the absence of
specific requirements in government documents the determination is made according to basic conditions
for obtaining the grants; if constructing or otherwise forming long-term assets is treated as a basic
condition the grants are classified as government grants related to assets. Government grants relating to
assets are offset against the carrying amount of such assets or recognized as deferred income. Government
grants relating to assets recognized as deferred income are charged to the profit or loss on a reasonable
and systematic basis over the useful lives of the relevant assets. Government grants measured at notional
amount are directly charged to the current profit or loss. For assets sold transferred disposed or damaged
prior to the end of their useful lives balance of undistributed deferred income is transferred to the current
profit or loss from assert disposal.
(3) Judgment basis and accounting methods for the government grants related to revenue
Other than government grants related to assets other government grants are government grants
related to revenue. The Company classifies government grants that contain both assets-related and
revenue-related portion or those that are difficult to distinguish as the ones related to revenue on an entire
basis. Government grants related to revenue and applied to the reimbursement of related costs or losses in
subsequent periods are recognized as deferred income and charged to the current profit or loss or offset
against the related costs for the period in which the related costs or losses are recognized. Government
grants applied to the reimbursement of related costs or losses already incurred are directly charged to the
current profit or loss or offset against the related costs.
(4) Government grants related to the Company's daily operations are charged to other income or
offset against relevant expenses according to the economic nature of the business. Government grants not
related to the Company's daily operations are charged to the non-operating income or expenses.
(5) Accounting treatment of policy-based loans with favorable terms and discounted interest
Where the finance directly allocates the discount fund to the Company the Company will use the
corresponding discount to offset relevant borrowing costs.
41. Deferred tax assets / deferred tax liabilities
√Applicable □Not Applicable
(1) Deferred tax assets or deferred tax liabilities are recognized based on the difference between the
carrying amounts of the assets or liabilities and their tax bases (or for an item not recognized as assets or
liabilities but whose tax base can be determined under tax laws the difference between the tax base and
the carrying amount) and are calculated at the tax rates expected to apply to the period in which the assets
are recovered or the liabilities are settled.
(2) Deferred tax assets are recognized for all deductible temporary differences to the extent that it is
probable that taxable profit will be available against which the deductible temporary differences can be
utilized. On the balance sheet date deferred tax assets unrecognized in prior periods are recognized to the
extent that there is obvious evidence that it has become probable that sufficient taxable profit will be
available in subsequent periods against which the deductible temporary differences can be utilized.
(3) The carrying amount of deferred tax assets is reviewed on the balance sheet date and written down
to the extent that it is no longer probable that sufficient taxable profit will be available against which the
deferred tax asset can be utilized. Such amount is written back to the extent that it has become probable
that sufficient taxable profit will be available.
(4) The Company's current and deferred income taxes are charged to the current profit or loss as tax
expense or profit excluding income tax arising from 1) the business combination and 2) transactions or
items directly recognized in equity.
42. Leases
(1). Accounting method for operating leases
□Applicable √Not Applicable
(2). Accounting method for finance leases
□Applicable √Not Applicable
121 / 2442022 Annual Report
(3). Lease recognition and accounting methods under the new lease standards
√Applicable □Not Applicable
1) The Company as the leasee
On the commencement date of the lease term the Company recognizes leases with a lease term of
not more than 12 months and without a purchase option as short-term leases and leases with a lower value
when the single leased asset is a brand-new asset as leases of low-value assets. Where the Company
subleases or intends to sublease the leased asset the original lease shall not be recognized as a lease of
low-value assets.For all short-term leases and leases of low-value assets the Company charges lease payments on a
straight-line basis over the respective periods of the lease term to the cost of the related assets or to the
current profit or loss.Except for the above short-term leases and leases of low-value assets that are simplified the Company
recognizes right-of-use assets and lease liabilities for leases at the beginning of the lease term.* Right-of-use assets
The right-of-use shall be initially measured at costs including I) the initial measured amount of lease
liabilities; II) the lease amount paid on or before the commencement date of the lease term (in case of
lease incentives the amount related to the lease incentives already enjoyed shall be deducted); III) the
initial and direct costs borne by the lessee; IV) costs expected to incur from the lessee's dismantling and
removing the leased assets recovering the original site of the leased assets or restoring the leased assets
to the state as specified in the lease provisions.The Company depreciates the right-to-use assets by the straight-line method. Where the ownership
of the leased assets can be reasonably determined at the end of the lease term the Company shall depreciate
the leased assets during the remaining life of such assets. In case of a failure to determine the ownership
of the leased assets reasonably at the end of the lease term the Company shall depreciate the leased assets
within the lease term or the remaining life of such assets whichever is shorter.* Lease liabilities
On the inception date of the lease term the Company will recognize the present value of the
outstanding lease payments as lease liabilities. In the process of calculating the present value of lease
payments the interest rate set out in the lease contract is taken as the discount rate. If such an interest rate
is not available the incremental borrowing rate shall be adopted. The difference between the lease
payments and their present value is recognized as an unrecognized financing expense and the interest
expense is recognized at the discount rate of the present value of the recognized lease payments during
each period of the lease term and is charged to the current profit or loss. Variable lease payments not
considered in the measurement of lease liabilities are charged to the current profit or loss when actually
incurred.In case of any changes in the amount of substantive fixed payments the amount expected to be
payable for the residual guarantee the index or rate used to determine the lease payments or the evaluation
result or actual exercise of the call option renewal option or termination option after the inception date of
the lease term the Company will remeasure the lease liabilities at the present value of the changed lease
payments and adjust the carrying amount of the right-of-use assets accordingly. If the carrying amount of
the right-of-use assets is reduced to zero but the lease liabilities still need to be further reduced the
remaining amount is recognized in the current profit or loss.
2) The Company as the leaser
On the commencement date of the lease term the Company recognizes a lease that transfers
substantially all the risks and rewards associated with the ownership of the leased asset as a finance lease
except for those that are recognized as operating leases.* Operating leases
During each period of the lease term the Company recognizes lease receipts as rental income on a
straight-line basis and capitalizes and apportions the initial direct costs incurred on the same basis as
rental income which shall be charged to the current profit or loss. The variable lease receipts obtained by
the Company related to operating leases and not charged to the lease receipts shall be charged to the current
profit and loss when actually incurred.* Finance leases
On the commencement date of the lease term the Company recognizes finance lease receipts at the
net lease investment (the sum of the unguaranteed residual value and the present value of the lease receipts
not yet received on the commencement date of the lease term discounted at the interest rate of the lease)
122 / 2442022 Annual Report
and derecognizes the finance lease assets. During each period of the lease term the Company calculates
and recognizes interest income at the interest rate of the lease.Variable lease payments obtained by the Company but not considered in the measurement of net
investment in leases are recognized in the current profit or loss when actually incurred.
3) Leaseback
* The Company as the lessee
The Company assesses and determines whether the transfer of assets in leaseback transactions can
be recognized as sales in accordance with the provisions of the Accounting Standards for Business
Enterprises No. 14 - Revenue.If so the Company measures the right-of-use assets from the leaseback at the portion of the original
asset's carrying amount related to the right of use acquired by the leaseback and recognizes gains or losses
related to the right transferred to the lessor only.If not the Company continues to recognize the transferred assets as well as a financial liability equal
to the transfer proceeds and carries out accounting on the financial liability in accordance with the
Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments.* The Company as the leaser
The Company assesses and determines whether the transfer of assets in leaseback transactions can
be recognized as sales in accordance with the provisions of the Accounting Standards for Business
Enterprises No. 14 - Revenue.If so the Company carries out accounting on the purchase of assets in accordance with other
applicable ASBEs and on the lease of assets in accordance with the Accounting Standards for Business
Enterprises No. 21 - Leases.If not the Company does not recognize the transferred assets but recognizes a financial asset equal
to the transfer proceeds and carries out accounting on the financial asset in accordance with the ASBE No.
22 - Recognition and Measurement of Financial Instruments.
43. Other significant accounting policies and accounting estimates
√Applicable □Not Applicable
(1) Accounting method for maintenance funds
According to the relevant provisions at the location of the developed projects the maintenance funds
should be withdrawn from the purchaser and stated by the Company as development costs of relevant
developed projects at the time of sale (presale) of the developed projects and uniformly turned in to the
maintenance fund management department.
(2) Accounting method for quality assurance funds
The quality assurance funds should be deducted from the project funds for the construction contractor
according to the construction contracts. Maintenance expenses incurred in the warranty period of the
developed projects should be written down by the quality assurance funds. The balance of the quality
assurance funds should be returned to the construction contractor upon the expiry of the specified warranty
period in the development of products.
(3) Segment reporting
The Company determines the operating segments on the basis of the internal organizational structure
management requirements and internal reporting system. The operating segment of the Company refers
to the component that meets all of the following conditions:
1) The component can generate incomes and incur expenses in daily activities;
2) The management can regularly evaluate the operating results of the component to determine the
allocation of resources and assess its performance;
3) The financial position operating results cash flow and other relevant accounting information of
the component can be obtained through analysis.
(4) Accounting method related to repurchase of the Company’s shares
If the Company’s shares are repurchased due to a reduction in registered capital or reward for
employees the amount actually paid should be regarded as treasury shares and registered for reference. If
the shares repurchased are canceled the capital reserve will be written down by the difference between
the total par value of shares calculated from the par value and the number of the canceled shares and the
amount actually paid for repurchase. If the capital reserve is insufficient to be written down retained
123 / 2442022 Annual Report
earnings shall be written down. If the repurchased shares are awarded to the Company's employees as
equity-settled share payment the cost of treasury shares delivered to the employees and the accumulative
amount of capital reserve (other capital reserves) during the vesting period should be written off when the
employees receive the payment for purchasing the shares of the Company through the exercise of their
rights. Meanwhile the capital reserve (equity premium) is adjusted based on the difference.
44. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
□Applicable √Not Applicable
(2). Changes in significant accounting estimates
□Applicable √Not Applicable
(3). The initial application of new accounting standards or their interpretations in 2022 involves the
adjustments to the financial statements at the beginning of the year of such application
□Applicable √Not Applicable
45. Others
√Applicable □Not Applicable
Change of accounting policy resulting from change of accounting standard for enterprises
(1) Since January 1 2022 the Company has applied the provisions on "Accounting for the Sales of
Products or By-products Produced by Enterprises before the Fixed Assets Reach the Intended Usable State
or in the Process of Research and Development" of the Interpretation No. 15 of the Accounting Standards
for Business Enterprises issued by the Ministry of Finance. Such an accounting policy change has no
impact on the Company's financial statements.
(2) Since January 1 2022 the Company has applied the provisions on "Judgment on Loss-making
Contracts" of the Interpretation No. 15 of the Accounting Standards for Business Enterprises issued by
the Ministry of Finance to any contracts in which all obligations had not been fulfilled by January 1 2022.Such an accounting policy change has no impact on the Company's financial statements.
(3) Since November 30 2022 the Company has applied the provisions on "Accounting for the
Income Tax Effect of Dividends from Financial Instruments Classified as Equity Instruments by Issuers"
in the Interpretation No. 16 of the Accounting Standards for Business Enterprises issued by the Ministry
of Finance. In accordance with such provisions the Company made adjustments to recognized dividends
payable for financial instruments classified as equity instruments under such provisions arising between
January 1 2022 and November 30 2022. In accordance with such provisions the Company made
retrospective adjustments to recognized dividends payable for financial instruments classified as equity
instruments under such provisions arising before January 1 2022 when relevant financial instruments were
not derecognized on January 1 2022. Such an accounting policy change has no impact on the Company's
financial statements.
(4) Since November 30 2022 the Company has applied the provisions on "Accounting for Equity-
settled Share-based Payments Enterprises Use to Replace Cash-settled Share-based Payments" in the
Interpretation No. 16 of the Accounting Standards for Business Enterprises issued by the Ministry of
Finance. In accordance with such provisions the Company made adjustments to new transactions arising
between January 1 2022 and November 30 2022. In accordance with such provisions the Company made
adjustments to transactions arising before January 1 2022 by adjusting retained earnings and other related
financial statement items as of January 1 2022 according to cumulative effects and not adjusting
information for comparable periods. The changes in this accounting policy have no effect on the
Company's statements.
124 / 2442022 Annual Report
VI. Taxes
1. Main taxes and rates
Main taxes and rates
√Applicable □Not Applicable
Tax category Taxation basis Tax rate
The output VAT is calculated from
the revenue from sales of goods or
rendering of services in accordance
Value-added tax
with the tax law net of the input VAT 1% 3% 5% 6% 9% 13%
(VAT)
that is allowed to be deducted in the
current period the difference is VAT
payable
Urban maintenance
Turnover tax actually paid 1% 5% 7%
and construction tax
Educational
Turnover tax actually paid 3%
surcharge
Local educational
Turnover tax actually paid 2%
surcharges
For details please refer to the description of
Enterprise income tax Taxable income income tax rates for taxpayers subject to
different corporate income tax rates
According to the document GSF [2010] No. 53
issued by the State Taxation Administration
and the relevant regulations of local tax bureaus
Appreciation tax resulting from the
where real estate projects are developed
paid transfer of use right of state-
subsidiaries engaged in real estate development
Land appreciation tax owned land and property right of
accrue and prepay land appreciation tax based
above-ground structures and other
on a certain percentage of real estate sales
attachments
revenue and advance receipts and apply to the
tax authorities for liquidation after the projects
are fully completed and sales target is achieved.For ad valorem collection1.2% of the
remaining value after 30% of the
Property tax original value of the property is 1.2% 12%
deducted by lump sum; for rent-based
collection 12% of the rental income
Disclosure statement of taxable entities with different corporate income tax rates
√Applicable □Not Applicable
Name of taxable entity Income tax rate (%)
The Company 10%
Shaoxing Henghui Wuxi Henghua Shanghai Yirui
Subject to prescribed tax rate for small and micro
Shanghai Liming Hangzhou Yunhui Yunlian
enterprises
Network and Guangdong Institute of Finance
Data Security Shanghai Gildata Hangzhou Gildata
Yunyong Network Cloudbroker Network Jingteng
Network Shanghai Genus Hundsun iBontal 15%
Hangzhou Business Intelligence and Changsha
Dworld
Cloudyee Network and Wengine Network 12.5%
Hangzhou Yihe Hangzhou Xinglu Wuxi Xinglu
These subsidiaries are partnership enterprises not
Nanjing Xingcheng Nanjing Xingding and Digital
subject to any income tax rate.Intelligence Qiyuan
Overseas subsidiaries Japan Hundsun Hundsun Subject to tax rates prescribed by the jurisdictions in
International Technologies Hundsun Ayers Hundsun which they operate
125 / 2442022 Annual Report
HK Ayers Technologies (Singapore) Hundsun U.S.Intercontinental Holdings Chain Next Hundsun
International Hundsun Holdings Hundsun IHS Markit
(Hong Kong) and GenSys
Other taxable entities other than the above 25%
2. Tax preferences
√Applicable □Not Applicable
(1) In accordance with the requirements of the document (CS [2011] No. 100) issued by the Ministry
of Finance and the State Taxation Administration the taxes of sales of software products (sales of self-
developed and produced software products and not accompanied by a transfer of copyrights and ownership)
of the Company and its subsidiaries and software service revenue (version upgrade services) shall be paid
at a rate of 13% and the refund policies will be applied for the excess of the actual tax burden over 3%
upon verification by the competent tax authorities.
(2) As certified by Zhejiang Provincial Development and Reform Commission the Company is a key
software enterprise within the national planning layout. In accordance with the relevant provisions of the
Notice on Issues Concerning Preferential Policies on Corporate Income Tax for Software and Integrated
Circuit Industry (CS [2016] No. 49) issued by the Ministry of Finance and the State Taxation
Administration the Company is entitled to the preferential income tax policy for key software and
integrated circuit design enterprises within the national planning layout. The corporate income tax was
paid at a rate of 10% in the current period.
(3) In accordance with the relevant provisions of the Measures for the Administration of the
Identification of High-tech Enterprises (GKFH [2016] No. 32) and the Guidelines for the Identification
and Management of High-tech Enterprises (GKFH [2016] No. 195) issued by the Ministry of Science and
Technology the Ministry of Finance and the State Taxation Administration Data Security Yunyong
Network Cloudbroker Network and Hangzhou Business Intelligence had been identified as high-tech
enterprises since 2018 for a period of three years the Company's application for the review of their status
was approved in 2021 and thus these subsidiaries paid their corporate income taxes at a rate of 15% during
the Reporting Period; Shanghai Gildata and Shanghai Genus had been identified as high-tech enterprises
since 2019 for a period of three years the Company's application for the review of their status was
approved in 2022 and thus these subsidiaries paid their corporate income taxes at a rate of 15% during the
Reporting Period; Hangzhou Gildata and Jingteng Network have been identified as high-tech enterprises
since 2020 for a period of three years and thus paid their corporate income taxes at a rate of 15% during
the Reporting Period; Changsha Dworld has been identified as a high-tech enterprise since 2021 for a
period of three years and thus paid its corporate income tax at a rate of 15% during the Reporting Period.
(4) In accordance with the Notice on the Implementation of Preferential Income Tax Policies for
Small and Micro Enterprises (CS[2019] No. 13) the Announcement on Matters Relating to the
Implementation of Preferential Income Tax Policies to Support the Development of Small Low-profit
Enterprises and Self-employed Individuals (SAT Announcement 2021 No. 8 ) and the Announcement on
Further Implementing Preferential Income Tax Policies for Small and Micro Enterprises (SAT
126 / 2442022 Annual Report
Announcement 2022 No.13) issued by the Ministry of Finance and the State Administration of Taxation
Shaoxing Henghui Wuxi Henghua Shanghai Yirui Shanghai Liming Hangzhou Yunhui Yunlian
Network and Guangdong Institute of Finance qualified as small low-profit enterprises during the
Reporting Period. Small low-profit enterprises with an annual taxable income not exceeding RMB1
million shall reduce their taxable income by 12.5% and be subject to a corporate income tax at a rate of
20%. Those with an annual taxable income exceeding RMB1 million but not exceeding RMB3 million
shall reduce their taxable income by 50% and be subject to a corporate income tax at a rate of 20%.
(5) In accordance with the provisions of the Announcement on Corporate Income Tax Policies for
Integrated Circuit Design and Software Industries [2019 No. 68] issued by the Ministry of Finance and
State Taxation Administration software enterprises established in accordance with the law and eligible
for the preferential period calculated from the profit-making year before December 31 2018 shall be
exempt from corporate income tax from the first year to the second year and pay corporate income tax at
a reduced statutory tax rate of 25% from the third year to the fifth year. The current period is the fourth
profit-making year of Wengine Network so this subsidiary pays half of its income tax. The current period
is the fifth profit-making year of Cloudyee Network so this subsidiary pays half of its income tax.
(6) The Notice on Continuing the Preferential Income Tax Policies for Enterprises in Qianhai
Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (CS [2021] No. 30) issued by the
Ministry of Finance and the State Administration of Taxation requires corporate income tax to be imposed
on qualified enterprises in Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone at
a reduced rate of 15% from January 1 2021 to December 31 2025. Therefore Hundsun iBontal were
entitled to a 10% tax credit and paid its corporate income tax at a reduced rate of 15% during the Reporting
Period.
3. Others
□Applicable √Not Applicable
VII. Notes on the Main Items in the Consolidated Financial Statements
1. Cash and bank balances
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cash on hand 310575.66 365020.30
Bank deposits 2801114991.80 1707660259.64
Other cash and bank
71208797.9019679566.66
balances
Total 2872634365.36 1727704846.60
Including: total amount
172022885.49112690519.32
deposited abroad
Other Description
Of other cash and bank balances at the end of the Reporting Period funds subject to use restrictions
included RMB5622400.00 in guarantee deposits and RMB205700000.00 in fixed certificates of
deposits and interest accrued thereon.
127 / 2442022 Annual Report
2. Held-for-trading financial assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Financial assets at fair value through profit
1497708252.011991523094.74
or loss
Including:
Equity instrument investment 12030217.80 23523040.35
Short-term bank wealth
1485678034.211968000054.39
management products and fund trust etc.Total 1497708252.01 1991523094.74
Other notes:
□Applicable √Not Applicable
3. Derivative financial assets
□Applicable √Not Applicable
4. Notes receivable
(1). Bills receivable by category
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Commercial acceptance bills 297600.00 636600.00
Total 297600.00 636600.00
(2). Pledged bills receivable by the Company as at the end of the period
□Applicable √Not Applicable
(3). Bills receivable endorsed or discounted by the Company at the end of the period and not yet due
on the balance sheet date
□Applicable √Not Applicable
(4). Bills receivable transferred to accounts receivable by the Company due to non-performance by
the drawer at the end of the period
□Applicable √Not Applicable
(5). Disclosure by categories by means of allowance for bad debts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Allowance for Allowance for
Book balance Book balance
Class bad debts Carrying bad debts Carrying
Proporti Amou Proporti value Proporti Amou Proporti value
Amount Amount
on (%) nt on (%) on (%) nt on (%)
Allowanc
e for bad
debts 297600.0 297600.0 636600.0 636600.
100.00100.00
made on a 0 0 0 00
collective
basis
Including:
Commerc
ial
297600.297600.636600.636600.
acceptanc 100.00 100.00
00000000
e bill
receivable
128 / 2442022 Annual Report
297600.//297600.636600.//636600.
Total
00000000
Provision for bad debts is accrued on an individual basis:
□Applicable √Not Applicable
Allowance for bad debts made on a collective basis:
√Applicable □Not Applicable
Item for which allowance was made on a collective basis: commercial acceptance bills receivable
Unit: Yuan Currency: RMB
Closing balance
Name
Notes receivable Allowance for bad debts Provision (%)
Commercial acceptance 297600.00
bill receivable
Total 297600.00
Recognition criteria and description of allowance for bad debts made on a collective basis
√Applicable □Not Applicable
The expected credit loss is calculated with reference to historical credit loss experience in
consideration of current conditions and expectation of future economic conditions and based on the
default risk exposure and lifetime expected credit loss rate.If bad debt reserves are accrued according to the general model of expected credit losses please refer to
other receivables for disclosure:
□Applicable √Not Applicable
(6). Allowance for bad debts
□Applicable √Not Applicable
(7). Actual write-off of bills receivable in the current period
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
5. Accounts receivable
(1). Disclosure by aging
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Aging Closing book balance
Within 1 year
Including: Sub-items within 1 year
Within 1 year 722053319.54
Sub-total within 1 year 722053319.54
1-2 years 206520060.37
2-3 years 83511732.29
Over 3 years 150028945.72
Total 1162114057.92
129 / 2442022 Annual Report
(2). Disclosure by category by means of allowance for bad debts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Book balance Allowance for bad debts Book balance Allowance for bad debts
Class
Proportion Proportion Carrying value Proportion Proportion Carrying value
Amount Amount Amount Amount
(%)(%)(%)(%)
Allowance for
bad debts made
62162700.405.3562162700.40100.0052964932.395.6052964932.39100.00
on an individual
basis
Including:
Amount of other
62162700.405.3562162700.40100.0052964932.395.6052964932.39100.00
software services
Allowance for
bad debts made
1099951357.5294.65177412750.9316.13922538606.59892755469.6394.40129839262.1314.54762916207.50
on a collective
basis
Including:
Aging portfolio 1099951357.52 94.65 177412750.93 16.13 922538606.59 892755469.63 94.40 129839262.13 14.54 762916207.50
Total 1162114057.92 / 239575451.33 / 922538606.59 945720402.02 / 182804194.52 / 762916207.50
Provision for bad debts is accrued on an individual basis:
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance
Name
Book balance Allowance for bad debts Provision (%) Reasons
Amount of other software services 62162700.40 62162700.40 100 Expected difficulty in collection
Total 62162700.40 62162700.40 100 /
Allowance for bad debts made on an individual basis:
□Applicable √Not Applicable
130 / 2442022 Annual Report
Allowance for bad debts made on a collective basis:
√Applicable □Not Applicable
Item for which allowance was made on a collective basis: grouped by aging
Unit: Yuan Currency: RMB
Closing balance
Name
Accounts receivable Allowance for bad debts Provision (%)
Within 1 year 722008425.10 36099766.29 5.00
1-2 years 204431683.03 20443168.31 10.00
2-3 years 75202047.25 22560614.19 30.00
Over 3 years 98309202.14 98309202.14 100.00
Total 1099951357.52 177412750.93 16.13
Recognition criteria and description of allowance for bad debts made on a collective basis:
√Applicable □Not Applicable
A table of aging of accounts receivable and lifetime expected credit loss rates is prepared and the
expected credit loss is calculated with reference to historical credit loss experience in consideration of
current conditions and expectations of future economic conditions.If bad debt reserves are accrued according to the general model of expected credit losses please refer to
other receivables for disclosure:
□Applicable √Not Applicable
(3). Allowance for bad debts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Change during the current period
Opening
Class Recovered or Write-off or Other Closing balance
balance Provision
reversed cancellation changes
Allowance
for bad
debts made
52964932.3911443462.01-2245694.0062162700.40
on an
individual
basis
Allowance
for bad
debts made
129839262.1347784299.62-210810.82177412750.93
on a
collective
basis
Total 182804194.52 59227761.63 -2245694.00 -210810.82 239575451.33
The significant amount of provision reversal and recovery of bad debts in the current period:
□Applicable √Not Applicable
(4). Actual accounts receivable written off in the current period
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Write-off
Actual accounts receivable written off 210810.82
Write-off of significant account receivables
131 / 2442022 Annual Report
□Applicable √Not Applicable
Notes on write-off of accounts receivable:
□Applicable √Not Applicable
(5). Top five account receivables according to closing balances grouped by the debtor
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Proportion in the total
Closing balance of
Company name Closing balance closing balance of
allowance for bad debts
accounts receivable (%)
Customer 1 21816554.23 1.88 2433843.40
Customer 2 20235305.95 1.74 2182008.84
Customer 3 17868443.96 1.54 918845.93
Customer 4 15277013.63 1.31 2183572.19
Customer 5 13880742.50 1.19 694037.13
Total 89078060.27 7.66 8412307.49
(6). Accounts receivable derecognized due to the transfer of financial assets
□Applicable √Not Applicable
(7). Amount of assets or liabilities due to the transfer of accounts receivable and continuing
involvement
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
6. Receivables financing
□Applicable √Not Applicable
7. Prepayments
(1). Disclosure by aging
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 13398180.42 97.00 11098252.30 93.61
1-2 years 389785.93 2.82 747155.77 6.30
2-3 years 13399.05 0.10 11032.81 0.09
Over 3 years 11032.81 0.08
Total 13812398.21 100.00 11856440.88 100.00
(2). Top five prepayments according to closing balances grouped by prepayers
√Applicable □Not Applicable
Proportion in the total closing
Company name Closing balance
balance of prepayments (%)
Entity 1 2594339.64 18.78
Entity 2 2139499.59 15.49
Entity 3 745283.02 5.40
Entity 4 575221.28 4.16
Entity 5 457840.00 3.31
Total 6512183.53 47.14
132 / 2442022 Annual Report
Other Description
□Applicable √Not Applicable
8. Other receivables
Items
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Other receivables 36136948.65 30706405.33
Total 36136948.65 30706405.33
Other notes:
□Applicable √Not Applicable
Interest receivable
(1). Classification of interest receivable
□Applicable √Not Applicable
(2). Significant overdue interest
□Applicable √Not Applicable
(3). Allowance for bad debts
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
Dividend receivables
(1). Dividend receivables
□Applicable √Not Applicable
(2). Significant dividends receivable with the aging over 1 year
□Applicable √Not Applicable
(3). Allowance for bad debts
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
Other receivables
(1). Disclosure by aging
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Aging Closing book balance
Within 1 year
Including: Sub-items within 1 year
Within 1 year 30343192.27
Sub-total within 1 year 30343192.27
1-2 years 6933696.11
133 / 2442022 Annual Report
2-3 years 1629427.51
Over 3 years 16253041.12
Total 55159357.01
(2). Other receivables by nature
√Applicable □Not Applicable
Unit: Yuan Currency:
RMB
Nature Closing book balance Opening book balance
Deposits 39149535.32 35970661.72
Imprest fund 12447838.97 13371823.96
Others 3561982.72 1239032.93
Total 55159357.01 50581518.61
(3). Allowance for bad debts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss
Allowance for bad Expected credit
within the whole within the whole Total
debts losses for the
duration (not credit- duration (credit-
next 12 months
impaired) impaired)
Balance on January
1240744.26435932.7218198436.3019875113.28
12022
Balance as at
January 1 2022 is in
the current period.- Be transferred to
-346684.81346684.81
Stage 2
- Be transferred to
-252942.75252942.75
Stage 3
- Be transferred back
to Stage 2
- Be transferred back
to Stage 1
Provision in the
623100.92163703.83-2612442.21-1825637.46
current period
Reversal in the
current period
Write-off in the
current period
Cancellation in the
57333.3357333.33
current period
Other changes -1030265.87 -1030265.87
Balance as at
1517160.37693378.6116811869.3819022408.36
December 31 2022
Notes on significant changes in the carrying amount of other receivables for which changes in the
allowance for losses occurred during the current period:
□Applicable √Not Applicable
Amount of allowance for bad debts for the current period and basis for evaluating whether the credit risk
of financial instruments increases significantly:
□Applicable √Not Applicable
134 / 2442022 Annual Report
(4). Allowance for bad debts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Change during the current period
Opening
Class Recovered Write-off or Other Closing balance
balance Provision
or reversed cancellation changes
Allowance
for bad
debts made
483333.33483333.33
on an
individual
basis
Allowance
for bad
debts made
19391779.95-1825637.46-57333.331030265.8718539075.03
on a
collective
basis
Total 19875113.28 -1825637.46 -57333.33 1030265.87 19022408.36
The significant transfers or reversals with allowance for bad debts during the current period:
□Applicable √Not Applicable
(5). Other receivables actually written off in the period
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Write-off
Other receivables actually written off 57333.33
Write-off of significant other receivables:
□Applicable √Not Applicable
Notes on write-off of other receivables:
□Applicable √Not Applicable
(6). Top five other receivables according to closing balances grouped by the debtor
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Proportion in the
Closing balance
Company total closing
Nature Closing balance Aging of allowance for
name balance of other
bad debts
receivables (%)
Entity 1 Deposits 7771000.00 Over 3 years 14.09 7771000.00
Entity 2 Deposits 1711300.41 1-2 years 3.10 171130.04
Entity 3 Deposits 1595431.41 Within 1 year 2.89 79771.57
Entity 4 Deposits 1250000.00 Within 1 year 2.27 62500.00
Including
RMB415000.00
with an age of 1 year
Entity 5 Deposits 673000.00 and 1.22 46550.00
RMB258000.00
within an age of 1-2
years
Total / 13000731.82 / 23.57 8130951.61
135 / 2442022 Annual Report
(7). Receivables involving government grants
□Applicable √Not Applicable
(8). Other receivables derecognized due to the transfer of financial assets
□Applicable √Not Applicable
(9). Amount of assets or liabilities due to the transfer of other receivables and continuing
involvement
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
9. Inventories
(1). Classification of inventories
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Provision for price Provision for price
reduction of reduction of
Item Book inventories/impair Carrying Book inventories/impair Carrying
balance ment provision for value balance ment provision for value
contract contract
performance cost performance cost
Raw
29080.185816.0323264.1552630.1814565.0038065.18
materials
Finished 28574007. 26291296. 46678737.8 44371213.
2282710.822307524.53
goods 47 65 7 34
Contract
529789710514996587425709305.422472335
performan 14793122.70 3236969.83.29.5922.39
ce costs
Consigne
d
processin 99059.60 19811.92 79247.68 124488.30 13912.02 110576.28
g
materials
Total 558491857 541390396 472565161. 466992190
17101461.475572971.38.54.0757.19
(2). Provision for price reduction of inventories and impairment provision for contract
performance cost
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase in the current Decrease in the
period current period
Item Opening balance Closing balance
Reversal or write-
Provision
off
Raw materials 14565.00 1777.08 10526.05 5816.03
Finished goods 2307524.53 380596.77 405410.48 2282710.82
Contract performance 3236969.83 15507202.68 3951049.81 14793122.70
costs
136 / 2442022 Annual Report
Consigned processing 13912.02 30797.56 24897.66 19811.92
materials
Total 5572971.38 15920374.09 4391884.00 17101461.47
(3). Amount of capitalized borrowing costs included in the closing balance of inventories
□Applicable √Not Applicable
(4). Amortization amount of contract performance cost in the current period
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Opening Increase in the Amortization in Impairment Closing balance
balance current period the period provision in the
period [Note 3]
Employee 263570284.94 937994815.74 855713858.61 11556152.87 334295089.20
compensation
Travel 62460425.85 127806980.25 107690988.58 82576417.52
expenses
Consulting fee 93460544.84 60837393.06 59698160.74 94599777.16
for special
items
Others 2981079.76 5534673.85 4990449.90 3525303.71
Sub-total 422472335.39 1132173862.90 1028093457.83 11556152.87 514996587.59
[Note 3] It is the amount of impairment provision for each item of contract performance cost
Other Description
□Applicable √Not Applicable
10. Contract assets
(1). Contract assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Retention 51369546.21 4265421.64 47104124.57 36392215.79 2723747.42 33668468.37
receivables
Total 51369546.21 4265421.64 47104124.57 36392215.79 2723747.42 33668468.37
(2). Amount and reasons for significant changes in carrying value during the Reporting Period
□Applicable √Not Applicable
(3). Provision for impairment of contract assets in the current period
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Reversal in the Cancellation
Provision in the
Item current period /write-off in the Reason
current period
current period
Provision for impairment 1541674.22
made on a collective basis
Total 1541674.22 /
If bad debt reserves are accrued according to the general model of expected credit losses please refer to
other receivables for disclosure:
137 / 2442022 Annual Report
□Applicable √Not Applicable
Other notes:
√Applicable □Not Applicable
Contract assets with impairment provision made on a collective basis:
Unit: Yuan Currency: RMB
Closing balance
Item
Book balance Impairment provision Proportion (%)
Aging portfolio
Including: within 1 year 34536310.42 1726815.52 5.00
1-2 years 12640823.09 1264082.31 10.00
2-3 years 4168412.70 1250523.81 30.00
Over 3 years 24000.00 24000.00 100.00
Sub-total 51369546.21 4265421.64 8.30
11. Held-for-sale assets
□Applicable √Not Applicable
12. Current portion of non-current assets
□Applicable √Not Applicable
Significant debt investments and other debt investments as at the end of the period:
□Applicable √Not Applicable
13. Other current assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Prepaid taxes 1370571.90 2194044.75
Input VAT to be deducted 20550739.83 6478276.96
Total 21921311.73 8672321.71
14. Creditor's right investment
(1). Debt investments
□Applicable √Not Applicable
(2). Significant debt investments at the end of the period
□Applicable √Not Applicable
(3). Provision for impairment
□Applicable √Not Applicable
Amount of provision for impairment for the current period and basis for evaluating whether credit risk of
financial instruments increase significantly
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
138 / 2442022 Annual Report
15. Other debt investments
(1). Other debt investments
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Accumulated
allowance for
Changes in fair Accumulated losses
Interest Accrued
Item Opening balance value in the Closing balance Cost changes in fair recognized in Remark
adjustment interest
current period value other
comprehensive
income
Financial 65681018.23 -4257.15 341624.35 -2897944.85 35020859.58 35394930.48 -711438.10
bonds
Total 65681018.23 -4257.15 341624.35 -2897944.85 35020859.58 35394930.48 -711438.10 /
All other debt investments in the current period are financial bonds purchased from UBS Switzerland
AG (UBS) by Hundsun Ayers. As of December 31 2022 the carrying value of bonds held by Hundsun
Ayers in a leased status amounted to RMB5483229.58.
(2). Significant other debt investments at the end of the period
□Applicable √Not Applicable
(3). Provision for impairment
□Applicable √Not Applicable
Amount of provision for impairment for the current period and basis for evaluating whether credit risk of
financial instruments increase significantly
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
16. Long-term receivables
(1). Long-term receivables
□Applicable √Not Applicable
(2). Allowance for bad debts
□Applicable √Not Applicable
Amount of allowance for bad debts for the current period and basis for evaluating whether the credit risk
of financial instruments increases significantly
□Applicable √Not Applicable
(3). Long-term receivables derecognized due to the transfer of financial assets
□Applicable √Not Applicable
(4). Amount of assets or liabilities due to the transfer of long-term receivables
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
139 / 2442022 Annual Report
17. Long-term equity investments
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Changes in the current period
Investment Closing
Other Cash
Opening profit or loss Other balance of
Investee Increase in Decrease in comprehen dividends Impairment Closing balance
balance recognized changes in Others impairment
investment investment sive income and profits provision
by equity equity provision
adjustments declared
method
I. Joint ventures
Sub-total
II. Associates
Ant (Hangzhou) Funds
25650.6613219.5320.2438890.43
Sales Co. Ltd.Hangzhou Baiyong Shiji
3554.162450.00310.101414.26
Technology Co. Ltd.Shenzhen Tradeblazer
4582.84194.33448.324328.854132.51
Technology Co. Ltd.Hangzhou Rongdu
Science & Technology 698.02 -242.79 -6.28 448.95 1647.27
Co. Ltd.Zhejiang Santan
1324.75-1102.50-59.99162.26
Technology Co. Ltd.Hangzhou Hundsun
Yuntai Network 2194.45 -1882.63 933.24 1245.06
Technology Co. Ltd.Guangdong Yuecai
Internet Finance Co. 471.30 6.42 477.72
Ltd.Beijing Hongtian
Rongda Information 235.09
Technology Co. Ltd.
140 / 2442022 Annual Report
Golden State Investment
3168.81197.813366.62
Services Co. Ltd.Shenzhen Ricequant
1823.20-59.591763.614765.12
Technology Co. Ltd.Fujian Trading Market
Registration and
733.36-36.35697.01
Settlement Center Co.Ltd.Hundsun Cloud
Financing Network 2398.77 189.42 733.86 3322.05
Technology Co. Ltd.Hangzhou Fupu Gongjin
Investment Partnership 2742.64 -22.31 2720.33
(L.P.)
Hangzhou HISOME
Digital Equipment 3050.08 642.64 -15.46 314.20 3363.06
Technology Co. Ltd.Jiangxi Lianjiaoyun
Registration and
174.47-0.3354.00120.14
Settlement Center Co.Ltd.Guangdong Yuecai Net
Small Loan 2195.60 99.22 2294.82
Microfinance Co. Ltd.Shanghai Leanwork
Financial Information 635.48 1275.00 -1148.60 -509.08
Service Co. Ltd.Hangzhou Wanming
Digital Technology Co. 488.05 375.00 2.02 -115.07
Ltd.Beijing Hezhi Xingtu
5669.295669.29
Technology Co. Ltd.Hangzhou Eceyes
Internet Financial Co. 6653.11 411.69 7064.80
Ltd.
141 / 2442022 Annual Report
Zhejiang Zhongjin
Xinzhi Investment 605.81 574.38 395.82 784.37
Management Co. Ltd.Beijing Yuntu Hanxing
Information Technology 404.56 -1.98 402.58 661.00
Co. Ltd.Zhejiang Baiying
2562.10259.642821.74
Technology Co. Ltd.Hangzhou National
Software Industry Base 231.96 -23.65 208.31
Co. Ltd.Zhejiang Institute of
Modern Capital and 2.89 2.89
Industry
Beijing Tongchuang
Yongyi Technology 4613.39 -229.17 4384.22
Development Co. Ltd.Shanghai Qianyun
Information Technology 2790.07 -88.07 2702.00
Co. Ltd.Databaker (Beijing)
3195.85-324.38420.443291.91
Technology Co. Ltd.N2N CONNECT
15499.46137.84198.821431.8016870.28
BERHAD
Shanghai Yitongtou
1311.13-319.933.18994.38
Technology Co. Ltd.Nanjing Pengxi Equity
11668.43-397.80126.7711397.40
Investment Center (L.P.)
Hangzhou Hundsun
Yiyun Park Management 210.00 134.97 344.97
Co. Ltd.Hangzhou PQCTECH
1000.001000.00
Co. Ltd.Hangzhou AlphaFlow
4500.004500.00
Technology Co. Ltd.
142 / 2442022 Annual Report
Sub-total 111094.69 5710.00 4100.00 11648.53 2156.00 1411.16 -1148.60 807.65 127054.31 11440.99
Total 111094.69 5710.00 4100.00 11648.53 2156.00 1411.16 -1148.60 807.65 127054.31 11440.99
143 / 2442022 Annual Report
18. Other equity instrument investments
(1). Investments in other equity instruments
□Applicable √Not Applicable
(2). Investments in non-trading equity instruments
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
19. Other non-current financial assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Financial assets at FVTPL 2532458912.37 2981720276.86
Including: Investments in equity
1603469382.791740015513.31
instruments
Trust plans other funds etc. 928989529.58 1241704763.55
Total 2532458912.37 2981720276.86
Other notes:
□Applicable √Not Applicable
20. Investment properties
Measurement model of investment properties
(1). Investment properties measured at cost
Unit: Yuan Currency: RMB
Item Houses and buildings Land use rights Total
I. Original carrying value
1. Opening balance 146988660.48 213096.60 147201757.08
2. Increase in the current period 26893383.72 2577604.16 29470987.88
(1) Transferred from intangible
26893383.722577604.1629470987.88
assets/fixed assets/construction in progress
3. Decrease in the current period 1690637.18 1690637.18
(1) Transferred to fixed
1690637.181690637.18
assets/intangible assets
4. Closing balance 172191407.02 2790700.76 174982107.78
II. Accumulated depreciation and accumulated amortization
1. Opening balance 19592817.60 83970.55 19676788.15
2. Increase in the current period 15478868.97 733005.06 16211874.03
(1) Provision or amortization 2927014.03 733005.06 3660019.09
(2) Transferred from intangible
12551854.9412551854.94
assets/fixed assets/construction in progress
3. Decrease in the current period 452584.47 452584.47
(1) Transferred to fixed
452584.47452584.47
assets/intangible assets
4. Closing balance 34619102.10 816975.61 35436077.71
IV. Carrying value
1. Ending carrying amount 137572304.92 1973725.15 139546030.07
2. Opening carrying value 127395842.88 129126.05 127524968.93
[Note 4] Houses and buildings include land use rights that have been leased but cannot be measured
separately
144 / 2442022 Annual Report
(2). Investment properties without the title certificates
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
21. Fixed assets
Items
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Fixed assets 1617839116.41 1679515491.95
Total 1617839116.41 1679515491.95
Other notes:
□Applicable √Not Applicable
Fixed assets
(1). Fixed assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Electronic Other
Item Buildings Vehicles Total
equipment equipment
I. Original carrying value:
1. Opening
1536833995.60329366436.7212529498.61160245519.212038975450.14
balance
2. Increase in
28244501.1544087994.281002725.9873335221.41
the current period
(1) Purchase 43336895.42 700187.98 44037083.40
(2)
Transferred from
construction in 2927491.43 2927491.43
progress/investment
properties
(3) Effects
from translation of
25317009.72751098.86302538.0026370646.58
financial statements
in foreign currency
3. Decrease in
35452317.6118201015.257571804.4361225137.29
the current period
(1) Disposal
7980082.2118201015.257571804.4333752901.89
or retirement
(2)
Transferred to
investment
26797516.0826797516.08
properties\long-
term prepaid
expense
(3) Effects
from translation of
674719.32674719.32
financial statements
in foreign currency
4. Closing
1529626179.14355253415.7512529498.61153676440.762051085534.26
balance
II. Accumulated depreciation
145 / 2442022 Annual Report
1. Opening
108673230.66193570996.137905473.0049310004.39359459704.18
balance
2. Increase in
51283631.2448546251.221058053.5015036941.14115924877.10
the current period
(1)
48507540.0747937616.551058053.5014957010.06112460220.18
Provision
(2) Transfer
from investment 452584.47 452584.47
properties
(3) Effects
from translation of
2323506.70608634.6779931.083012072.45
financial statements
in foreign currency
3. Decrease in
18743975.9217395984.955998456.5742138417.44
the current period
(1) Disposal
6192120.9817395984.955998456.5729586562.50
or retirement
(2) Transfer
to investment 12551854.94 12551854.94
properties
4. Closing
141212885.98224721262.408963526.5058348488.96433246163.84
balance
III. Provision for impairment
1. Opening
254.01254.01
balance
2. Increase in
the current period
(1)
Provision
3. Decrease in
the current period
(1) Disposal
or retirement
4. Closing
254.01254.01
balance
IV. Carrying value
1. Ending
1388413293.16130532153.353565972.1195327697.791617839116.41
carrying amount
2. Opening
1428160764.94135795440.594624025.61110935260.811679515491.95
carrying value
[Note 5] Houses and buildings include land use rights that cannot be measured separately
(2). Temporary idle fixed assets
□Applicable √Not Applicable
(3). Fixed assets rented in through financing lease
□Applicable √Not Applicable
(4). Fixed assets rented out through operating lease
□Applicable √Not Applicable
(5). Fixed assets without the title certificate
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Carrying value Reason
Hundsun Cloud Production Base Phase II project is still under
817478368.23
(Phase I) construction
146 / 2442022 Annual Report
Sub-total 817478368.23
Other notes:
□Applicable √Not Applicable
Disposal of fixed assets
□Applicable √Not Applicable
22. Construction in progress
Items
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Construction in progress 124123757.95 26357513.90
Total 124123757.95 26357513.90
Other notes:
□Applicable √Not Applicable
Construction in progress
(1). Construction in progress
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Hundsun
Cloud
Production 124123757.95 124123757.95 25139995.40 25139995.40
Base (Phase
II)
Sporadic
1217518.501217518.50
projects
Total 124123757.95 124123757.95 26357513.90 26357513.90
(2). Significant changes in CIP during the period
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Proportio Including
Fixed n of : Amount
Other Accumulate Capitalizatio
Increas assets Closin cumulativ of
Openin decrease d amount of n rate of
Budge e in the transferre g e project Constructio capitalize Source of
Item g s during interest interest in
t current d into the balanc investmen n progress d interest funds
balance the capitalizatio the current
period current e t in in the
period n period (%)
period budget current
(%) period
Own
Hundsun funds and
Cloud loans
Productio 79930.00 2514.00 9898.38 12412.38 15.53 15.53% 45.00 45.00 3.82 from
n Base financial
(Phase II) institution
s
147 / 2442022 Annual Report
Sporadic 121.75 121.33 148.44 94.64
projects
Total 79930.00 2635.75 10019.71 148.44 94.64 12412.38 / / 45.00 45.00 / /
(3). Provision for impairment of CIP during the period
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
Construction materials
(1). Construction materials
□Applicable √Not Applicable
23. Bearer biological assets
(1). Productive biological assets measured at cost
□Applicable √Not Applicable
(2). Productive biological assets measured at fair value
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
24. Oil and gas assets
□Applicable √Not Applicable
25. Right-of-use assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Buildings Total
I. Original carrying value
1. Opening balance 55368124.28 55368124.28
2. Increase in the current period 35239626.23 35239626.23
(1) Rent 35239626.23 35239626.23
3. Decrease in the current period 16665902.19 16665902.19
(1) Disposal 16665902.19 16665902.19
4. Closing balance 73941848.32 73941848.32
II. Accumulated depreciation
1. Opening balance 23345018.84 23345018.84
2. Increase in the current period 17593002.69 17593002.69
(1) Provision 17593002.69 17593002.69
3. Decrease in the current period 16355642.10 16355642.10
(1) Disposal 16355642.10 16355642.10
4. Closing balance 24582379.43 24582379.43
III. Provision for impairment
148 / 2442022 Annual Report
1. Opening balance
2. Increase in the current period
(1) Provision
3. Decrease in the current period
(1) Disposal
4. Closing balance
IV. Carrying value
1. Ending carrying amount 49359468.89 49359468.89
2. Opening carrying value 32023105.44 32023105.44
26. Intangible assets
(1). Intangible assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Patent
Management
technology and Product
Item Land use rights Trademark rights software and Total
non-patent management right
copyright
technology
I. Original carrying value
1. Opening balance 87062404.13 6946400.00 7600000.00 403633609.86 505242413.99
2. Increase in
247509.9815389997.4549329330.1515848585.0380815422.61
the current period
(1) Purchase 15389997.45 49329330.15 12809101.55 77528429.15
(2) Transfer
from investment 247509.98 247509.98
properties
(3) Effects
from translation of
3039483.483039483.48
financial statements
in foreign currency
3. Decrease in the
2131965.362131965.36
current period
(1) Disposal 404928.00 404928.00
(2) Transfer
to investment 1727037.36 1727037.36
properties
4. Closing balance 85177948.75 22336397.45 7600000.00 49329330.15 419482194.89 583925871.24
II. Accumulated amortization
1. Opening
10093498.076946400.004671666.53100513807.63122225372.23
balance
2. Increase in
1189043.961155523.37151666.6414178825.0231224186.5547899245.54
the current period
(1)
1189043.961155523.37151666.6414178825.0229820036.4246495095.41
Provision
(2) Effects
1404150.131404150.13
from translation of
149 / 2442022 Annual Report
financial statements
in foreign currency
3. Decrease in
the current period
4. Closing
11282542.038101923.374823333.1714178825.02131737994.18170124617.77
balance
III. Provision for impairment
1. Opening
2776666.833780354.506557021.33
balance
2. Increase in
2813188.582813188.58
the current period
(1)
2813188.582813188.58
Provision
3. Decrease in
the current period
4. Closing
2776666.836593543.089370209.91
balance
IV. Carrying value
1. Ending carrying
73895406.7214234474.0835150505.13281150657.63404431043.56
amount
2. Opening carrying
76968906.06151666.64299339447.73376460020.43
value
(2). Land use rights without the title certificates
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
27. Development expenditures
□Applicable √Not Applicable
28. Goodwill
(1). Original carrying value of goodwill
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase in the Decrease in the
current period current period
Investees or items that
Opening balance Arising from Closing balance
generate goodwill
business Disposal
combination
Hundsun Global
1110721.191110721.19
Services Inc.Hangzhou Business
14091467.3114091467.31
Intelligence
Hundsun Holdings 340974202.26 340974202.26
Hundsun Baichuan 9156921.06 9156921.06
BusinessMatrix 67765537.97 67765537.97
Shanghai Genus 50754368.23 50754368.23
Hundsun Lirong 12242732.96 12242732.96
Shanghai Dworld 33547864.43 33547864.43
Hundsun iBontal 9542639.09 9542639.09
150 / 2442022 Annual Report
Summit business [Note
349433285.40349433285.40
6]
Total 539186454.50 349433285.40 888619739.90
[Note 6] For details please refer to Note VIII (1) to the financial statements.
(2). Provision for impairment of goodwill
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase in the Decrease in the
Investees or items that
Opening balance current period current period Closing balance
generate goodwill
Provision Disposal
Hundsun Global Services
1110721.191110721.19
Inc.Hundsun Holdings 132138046.09 132138046.09
Hundsun Baichuan 9156921.06 9156921.06
BusinessMatrix 29288639.18 38476898.79 67765537.97
Total 171694327.52 38476898.79 210171226.31
(3). Information on asset groups or combination of asset groups including goodwill
√Applicable □Not Applicable
1) Combination of asset groups of Hangzhou Business Intelligence
Unit: Yuan Currency: RMB
Composition of asset groups or combination of asset Goodwill assets and liabilities of Hangzhou Business
groups Intelligence
Carrying value of asset groups or combination of asset
4229728.64
groups
Carrying value and allocation method of goodwill
45456346.15
allocated to asset groups or combination of asset groups
Carrying value of asset groups or combination of asset
49686074.79
groups including goodwill
Are asset groups or combination of asset groups
consistent with those determined in the goodwill
Yes
impairment test on the acquisition date in the previous
year
2) Combination of asset groups of Hundsun Holdings
Unit: Yuan Currency: RMB
Composition of asset groups or combination of asset
Goodwill assets and liabilities of Hundsun Holdings
groups
Carrying value of asset groups or combination of asset
330610826.09
groups
Carrying value and allocation method of goodwill
381783721.43
allocated to asset groups or combination of asset groups
Carrying value of asset groups or combination of asset
712394547.52
groups including goodwill
Are asset groups or combination of asset groups
consistent with those determined in the goodwill
Yes
impairment test on the acquisition date in the previous
year
3) Combination of asset groups of BusinessMatrix
Unit: Yuan Currency: RMB
151 / 2442022 Annual Report
Composition of asset groups or combination of asset
Goodwill assets and liabilities of BusinessMatrix
groups
Carrying value of asset groups or combination of asset
21910358.90
groups
Carrying value and allocation method of goodwill
45266939.76
allocated to asset groups or combination of asset groups
Carrying value of asset groups or combination of asset
67177298.66
groups including goodwill
Are asset groups or combination of asset groups
consistent with those determined in the goodwill
Yes
impairment test on the acquisition date in the previous
year
4) Combination of asset groups of Shanghai Genus
Unit: Yuan Currency: RMB
Composition of asset groups or combination of asset
Goodwill assets and liabilities of Shanghai Genus
groups
Carrying value of asset groups or combination of asset
19555243.71
groups
Carrying value and allocation method of goodwill
88408241.19
allocated to asset groups or combination of asset groups
Carrying value of asset groups or combination of asset
107963484.90
groups including goodwill
Are asset groups or combination of asset groups
consistent with those determined in the goodwill
Yes
impairment test on the acquisition date in the previous
year
5) Combination of asset groups of Hundsun Lirong
Unit: Yuan Currency: RMB
Composition of asset groups or combination of asset
Goodwill assets and liabilities of Hundsun Lirong
groups
Carrying value of asset groups or combination of asset
85969892.96
groups
Carrying value and allocation method of goodwill
12242732.96
allocated to asset groups or combination of asset groups
Carrying value of asset groups or combination of asset
98212625.92
groups including goodwill
Are asset groups or combination of asset groups
consistent with those determined in the goodwill
Yes
impairment test on the acquisition date in the previous
year
6) Combination of asset groups of Shanghai Dworld
Unit: Yuan Currency: RMB
Composition of asset groups or combination of asset
Goodwill assets and liabilities of Shanghai Dworld
groups
Carrying value of asset groups or combination of asset
6133284.29
groups
Carrying value and allocation method of goodwill
51275146.70
allocated to asset groups or combination of asset groups
Carrying value of asset groups or combination of asset
57408430.99
groups including goodwill
152 / 2442022 Annual Report
Are asset groups or combination of asset groups
consistent with those determined in the goodwill
Yes
impairment test on the acquisition date in the previous
year
7) Combination of asset groups of Hundsun iBontal
Unit: Yuan Currency: RMB
Composition of asset groups or combination of asset
Goodwill assets and liabilities of Hundsun iBontal
groups
Carrying value of asset groups or combination of asset
40138477.91
groups
Carrying value and allocation method of goodwill
10905873.25
allocated to asset groups or combination of asset groups
Carrying value of asset groups or combination of asset
51044351.16
groups including goodwill
Are asset groups or combination of asset groups
consistent with those determined in the goodwill
Yes
impairment test on the acquisition date in the previous
year
8) Combination of asset groups of Summit business
Unit: Yuan Currency: RMB
Composition of asset groups or combination of asset
Goodwill assets and liabilities of Summit business
groups
Carrying value of asset groups or combination of asset
87315870.03
groups
Carrying value and allocation method of goodwill
349433285.40
allocated to asset groups or combination of asset groups
Carrying value of asset groups or combination of asset
436749155.43
groups including goodwill
Are asset groups or combination of asset groups
consistent with those determined in the goodwill
Yes
impairment test on the acquisition date in the previous
year
(4). Note on the process of goodwill impairment test key parameters (such as forecast growth rate
steady growth rate profit margin discount rate forecast period (if applicable) in estimating
the present value of future cash flow) and recognition method of impairment loss on goodwill
√Applicable □Not Applicable
1) Combination of asset groups of Hangzhou Business Intelligence
The recoverable amount of asset groups or combination of asset groups including goodwill is
calculated by the present value of the expected future cash flow. The expected cash flows are based on the
cash flow forecast for the five-year detailed forecast period approved by the Company. The discount rate
used in the cash flow forecast is 11.23% which is basically approximate to the discount rates adopted by
companies in the same industry.Other key data used in the impairment test include software sales revenue staff costs and other related
expenses. The Company determines the above key data based on historical experience and market
153 / 2442022 Annual Report
development forecast. The discount rate adopted by the Company is the pretax rate reflecting the time
value of the current market currency and the specific risk of the relevant asset group.The recoverable amount of the asset group or combination of asset groups including goodwill was
tested to be higher than the carrying value and there was no impairment loss on goodwill.
2) Combination of asset groups of Hundsun Holdings
The recoverable amount of asset groups or combination of asset groups including goodwill is
calculated by the present value of the expected future cash flow. The expected cash flows are based on the
cash flow forecast for the five-year detailed forecast period approved by the Company. The discount rate
used in the cash flow forecast is 12.86% which is basically approximate to the discount rates adopted by
companies in the same industry.Other key data used in the impairment test include software sales revenue staff costs and other related
expenses. The Company determines the above key data based on historical experience and market
development forecast. The discount rate adopted by the Company is the pretax rate reflecting the time
value of the current market currency and the specific risk of the relevant asset group.The recoverable amount of the asset group or combination of asset groups including goodwill was
tested to be higher than the carrying value and there was no impairment loss on goodwill.
3) Combination of asset groups of BusinessMatrix
The recoverable amount of asset groups or combination of asset groups including goodwill is
calculated by the present value of the expected future cash flow. The expected cash flows are based on the
cash flow forecast for the five-year detailed forecast period approved by the Company. The discount rate
used in the cash flow forecast is 12.65% which is basically approximate to the discount rates adopted by
companies in the same industry.Other key data used in the impairment test include software sales revenue staff costs and other related
expenses. The Company determines the above key data based on historical experience and market
development forecast. The discount rate adopted by the Company is the pretax rate reflecting the time
value of the current market currency and the specific risk of the relevant asset group.According to the Asset Appraisal Report (KYPB [2023] No. 163) from Canwin Appraisal Co. Ltd.(hereinafter referred to as Canwin Appraisal) engaged by the Company the recoverable amount of the
asset groups or combination of asset groups including goodwill was RMB21536100.00 which was
RMB67177298.66 lower than the carrying amount of the asset groups including goodwill. The Company
recognized a goodwill impairment loss of RMB38476898.79 based on the share of goodwill attributable
to the Company at the time of acquisition.
4) Combination of asset groups of Shanghai Genus
The recoverable amount of asset groups or combination of asset groups including goodwill is
calculated by the present value of the expected future cash flow. The expected cash flows are based on the
cash flow forecast for the five-year detailed forecast period approved by the Company. The discount rate
used in the cash flow forecast is 11.91% which is basically approximate to the discount rates adopted by
companies in the same industry.
154 / 2442022 Annual Report
Other key data used in the impairment test include software sales revenue staff costs and other related
expenses. The Company determines the above key data based on historical experience and market
development forecast. The discount rate adopted by the Company is the pretax rate reflecting the time
value of the current market currency and the specific risk of the relevant asset group.The recoverable amount of the asset group or combination of asset groups including goodwill was
tested to be higher than the carrying value and there was no impairment loss on goodwill.
5) Combination of asset groups of Hundsun Lirong
The recoverable amount of asset groups or combination of asset groups including goodwill is
calculated by the present value of the expected future cash flow. The expected cash flows are based on the
cash flow forecast for the five-year detailed forecast period approved by the Company. The discount rate
used in the cash flow forecast is 14.95% which is basically approximate to the discount rates adopted by
companies in the same industry.Other key data used in the impairment test include software sales revenue staff costs and other related
expenses. The Company determines the above key data based on historical experience and market
development forecast. The discount rate adopted by the Company is the pretax rate reflecting the time
value of the current market currency and the specific risk of the relevant asset group.The recoverable amount of the asset group or combination of asset groups including goodwill was
tested to be higher than the carrying value and there was no impairment loss on goodwill.
6) Combination of asset groups of Shanghai Dworld
The recoverable amount of asset groups or combination of asset groups including goodwill is
calculated by the present value of the expected future cash flow. The expected cash flows are based on the
cash flow forecast for the five-year detailed forecast period approved by the Company. The discount rate
used in the cash flow forecast is 11.65% which is basically approximate to the discount rates adopted by
companies in the same industry.Other key data used in the impairment test include software sales revenue staff costs and other related
expenses. The Company determines the above key data based on historical experience and market
development forecast. The discount rate adopted by the Company is the pretax rate reflecting the time
value of the current market currency and the specific risk of the relevant asset group.The recoverable amount of the asset group or combination of asset groups including goodwill was
tested to be higher than the carrying value and there was no impairment loss on goodwill.
7) Combination of asset groups of Hundsun iBontal
The recoverable amount of asset groups or combination of asset groups including goodwill is
calculated by the present value of the expected future cash flow. The expected cash flows are based on the
cash flow forecast for the five-year detailed forecast period approved by the Company. The discount rate
used in the cash flow forecast is 12.54% which is basically approximate to the discount rates adopted by
companies in the same industry.Other key data used in the impairment test include software sales revenue staff costs and other related
expenses. The Company determines the above key data based on historical experience and market
155 / 2442022 Annual Report
development forecast. The discount rate adopted by the Company is the pretax rate reflecting the time
value of the current market currency and the specific risk of the relevant asset group.The recoverable amount of the asset group or combination of asset groups including goodwill was
tested to be higher than the carrying value and there was no impairment loss on goodwill.
8) Combination of asset groups of Summit business
The recoverable amount of asset groups or combination of asset groups including goodwill is
calculated by the present value of the expected future cash flow. The expected cash flows are based on the
cash flow forecast for the five-year detailed forecast period approved by the Company. The discount rate
used in the cash flow forecast is 13.20% which is basically approximate to the discount rates adopted by
companies in the same industry.Other key data used in the impairment test include software sales revenue staff costs and other related
expenses. The Company determines the above key data based on historical experience and market
development forecast. The discount rate adopted by the Company is the pretax rate reflecting the time
value of the current market currency and the specific risk of the relevant asset group.The recoverable amount of the asset group or combination of asset groups including goodwill was
tested to be higher than the carrying value and there was no impairment loss on goodwill.
(5). Effect of goodwill impairment test
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
29. Long-term prepaid expense
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Opening balance Increase in the Amortization in Other decreases Closing balance
current period the current period
Renovation
expense of
1257776.435869368.44985211.966141932.91
leased fixed
assets
Total 1257776.43 5869368.44 985211.96 6141932.91
30. Deferred tax assets/deferred tax liabilities
(1). Deferred tax assets before offset
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Deductible Deductible Deferred income Deferred income
temporary temporary
tax assets tax assets
differences differences
Provision for asset
303253005.9331244398.95265075656.7726992920.46
impairment
Deferred income 29722089.63 2972208.96 38094994.90 3809499.49
156 / 2442022 Annual Report
Accrued expenses 47901048.45 4819560.66 55298353.65 5588772.82
Provision for
18546129.301864119.2616523860.931665818.79
liabilities
Share-based
128263526.8613401587.35123794153.2312487113.82
payments
Software
development tax 1360555030.05 136055503.00 1122853556.52 112285355.65
difference [Note 7]
Changes in fair value
of held-for-trading 16998769.47 2764208.66 3762656.15 607010.48
financial assets
Total 1905239599.69 193121586.84 1625403232.15 163436491.51
[Note 7] The difference was due to the fact that the Company's software development projects were
performance obligations to be performed at a certain time point in accordance with the new revenue
standards. The revenue is recognized upon completion and acceptance of the projects while the tax
revenue is recognized in accordance with the progress of project development so the difference is the
difference in the amount of revenue under the two standards.
(2). Deferred tax liabilities before offset
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
Changes in fair value of
711438.10117387.282186506.75360773.61
other debt investments
Changes in fair value of
held-for-trading financial 457481062.44 45779740.75 678407174.31 67840717.44
assets
Total 458192500.54 45897128.03 680593681.06 68201491.05
(3). Deferred tax assets or liabilities presented in the net amount after offset
□Applicable √Not Applicable
(4). Breakdown of unrecognized deferred tax assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Deductible temporary differences 350283264.37 269295856.20
Deductible losses 1156586952.80 735174456.32
Total 1506870217.17 1004470312.52
(5). Deductible losses of unrecognized deferred income tax assets due in the following year
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
31. Other non-current assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
157 / 2442022 Annual Report
Book Impairment Carrying Book balance Impairment
Carrying value
balance provision value provision
Prepayment for
112816169.61112816169.61
acquisition
Total 112816169.61 112816169.61
32. Short-term borrowings
(1). Classification of short-term borrowings
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Mortgage loans 27165529.39
Loans in credit 54993749.99 150862784.72
Total 54993749.99 178028314.11
(2). Short-term loans overdue and outstanding
□Applicable √Not Applicable
The short-term loans overdue and outstanding are as follows:
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
33. Trading financial liabilities
□Applicable √Not Applicable
34. Derivative financial liabilities
□Applicable √Not Applicable
35. Notes payable
(1). Breakdown of bills payable
□Applicable √Not Applicable
36. Accounts payable
(1). Breakdown of accounts payable
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Cost and expense payments 142923685.69 169917406.73
Accounts payable for long-term 413462369.15 333841308.45
asset acquisition
Total 556386054.84 503758715.18
(2). Significant accounts payable with the aging over one year
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
158 / 2442022 Annual Report
37. Advances from customers
(1). Breakdown of advances from customers
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Advances from house leases 3982203.88 2283715.48
Total 3982203.88 2283715.48
(2). Significant advances from customers with the aging over one year
□Applicable √Not Applicable
Other Description
□Applicable √Not Applicable
38. Contract liabilities
(1). Contract liabilities
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Payments for software sales and 3022756428.02 3203414609.69
services
Total 3022756428.02 3203414609.69
(2). Amount and reasons for significant changes in carrying value during the Reporting Period
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
39. Employee compensation payable
(1). Breakdown of employee remuneration payable
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I. Short-term
740254891.144138586164.224059509651.24819331404.12
compensation
II. Post-employment
benefits-defined 5637458.13 129591011.17 122294607.15 12933862.15
contribution plans
III. Termination
20759340.2920517129.21242211.08
benefits
IV. Share-based 29104152.44 15541197.66 5376057.64 39269292.46
payment
V. Others 2163058.90 2139598.90 23460.00
Total 774996501.71 4306640772.24 4209837044.14 871800229.81
(2). Breakdown of short-term compensation
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
159 / 2442022 Annual Report
I. Wages bonuses
allowances and 608773623.14 3716427581.04 3629604385.73 695596818.45
subsidies
II. Employee
39942791.4139054465.84888325.57
benefits
III. Social insurance
3886594.6885021292.3288222104.46685782.54
premiums
Including: Medical
3806105.7282418109.7985550115.43674100.08
insurance
Work-related
79880.002071718.842140453.3011145.54
injury insurance
Maternity
608.96531463.69531535.73536.92
insurance
IV. Housing
451174.78283496137.47283760046.29187265.96
provident fund
V. Trade union
funds and staff 127143498.54 13698361.98 18868648.92 121973211.60
education funds
Total 740254891.14 4138586164.22 4059509651.24 819331404.12
(3). Details of defined contribution plan
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
1. Basic endowment 5445789.58 125305853.58 117841509.16 12910134.00
insurance
2. Unemployment 191668.55 4285157.59 4453097.99 23728.15
insurance
Total 5637458.13 129591011.17 122294607.15 12933862.15
Other notes:
□Applicable √Not Applicable
40. Taxes payable
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Value-added tax (VAT) 152209743.81 119462002.58
Enterprise income tax 33158279.80 26806846.66
Individual income tax 25274877.21 18287729.35
Urban maintenance and 6844625.74 15514925.91
construction tax
Educational surcharge 2950763.38 6666440.13
Property tax 10299565.29 2634194.57
Land use tax 968527.77 1192807.59
Local educational surcharges 1919710.24 4396774.09
Stamp duty 1416520.83 1098117.24
Disabled security fund 3044.75 3044.75
Local water conservancy fund 6185.74 2059.54
Land appreciation tax 203998.00
Withholding income tax 79475.72
Total 235335318.28 196064942.41
160 / 2442022 Annual Report
41. Other payables
Items
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Other payables 177670629.68 170804176.79
Total 177670629.68 170804176.79
Other notes:
□Applicable √Not Applicable
Interests payable
(1). Details of classification
□Applicable √Not Applicable
Dividends payable
(1). Details of classification
□Applicable √Not Applicable
Other payables
(1). Other accounts payable by nature of payment
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Temporary receipts payable 41509991.24 21204885.84
Deposits and construction quality 26872402.97 41226333.93
guarantee deposit
Outstanding operating expenses 50887052.42 41592644.51
settled
Equity transfer payable [Note 8] 53437521.87 60751425.87
Others 4963661.18 6028886.64
Total 177670629.68 170804176.79
[Note 8] RMB4875937.00 represents the outstanding equity transfer from the original shareholders
of BusinessMatrix RMB41461706.00 represents the payment for equity acquisition that has not met the
delivery conditions and the remaining RMB7099878.87 represents the outstanding equity transfer from
the employees of the shareholding platform. The outstanding amount of equity transfer from the
employees of the shareholding platform of RMB7099878.87 is detailed in Note XIV. 2 (1) to the financial
statements.
(2). Other significant accounts payable with the aging over one year
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
42. Held-for-sale liabilities
□Applicable √Not Applicable
43. Current portion of non-current liabilities
√Applicable □Not Applicable
161 / 2442022 Annual Report
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Current portion of long-term 145804947.56
borrowings
Current portion of lease liabilities 17061706.54 8691667.05
Total 17061706.54 154496614.61
44. Other current liabilities
Other current liabilities
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Withholding of land 305258151.46 305258151.46
appreciation tax
Total 305258151.46 305258151.46
Changes in short-term bonds payable:
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
45. Long-term borrowings
(1). Classification of long-term borrowings
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Mortgage loans 113216619.89 77523804.59
Guaranteed loan 2617900.00 2770750.00
Loans in credit 148159511.11
Total 115834519.89 228454065.70
Other notes including the interest rate collar:
□Applicable √Not Applicable
46. Bonds payable
(1). Bonds payable
□Applicable √Not Applicable
(2). Changes in bonds payable: (excluding preference shares perpetual bonds and other financial
instruments classified as financial liabilities)
□Applicable √Not Applicable
(3). Conditions and timing of conversion for convertible bonds
□Applicable √Not Applicable
(4). Other financial instruments classified as financial liabilities
Basic information on preferred shares perpetual bonds and other financial instruments outstanding at the
end of the period
□Applicable √Not Applicable
Changes in preferred shares perpetual bonds and other financial instruments outstanding at the end of
period
□Applicable √Not Applicable
162 / 2442022 Annual Report
Basis for classifying other financial instruments as financial liabilities:
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
47. Lease liabilities
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Outstanding lease payments 38225299.40 24699694.62
Unrecognized financing charges -3240771.96 -1401490.57
Total 34984527.44 23298204.05
48. Long-term payables
Items
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Long-term payables 38189757.11
Total 38189757.11
Other notes:
□Applicable √Not Applicable
Long-term payables
(1). Long-term accounts payable by nature
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Accounts payable for long-term asset 5216994.87
acquisition
Repurchase obligation [Note 9] 32972762.24
[Note 9] For details please refer to Note VII (56) to the financial statements.Specific accounts payable
(1). Specific accounts payable by nature
□Applicable √Not Applicable
49. Long-term employee benefits payable
□Applicable √Not Applicable
163 / 2442022 Annual Report
50. Provision for liabilities
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Opening balance Closing balance Reason
It is due to the provision of software
maintenance expense at 0.5% of
software revenue (measured based on
Product quality actual historical data) in accordance with
15685038.4618364532.49
assurance the terms of the software sales contract
signed between the Company and the
customer regarding the commitment of
free maintenance.Recovery fee 1631737.31 1841737.31
Total 17316775.77 20206269.80 /
51. Deferred income
Deferred income
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Opening Increase in the Decrease in the
Item Closing balance Reason
balance current period current period
Government 38210906.29 5954367.84 14404864.95 29760409.18
grants
Total 38210906.29 5954367.84 14404864.95 29760409.18 /
Items related to government grants:
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount Asset-
Increase in
Opening charged to Other Closing related /
Liability item grants for the
balance other income changes balance Revenue-
period
for the period related
Research institute
development project Asset-
10000000.008992842.531007157.47
of provincial key related
enterprise
Software
development and
industrialization
Asset-
project of tool set 187516.08 187516.08
related
based on financial
industry information
knowledge base
Financial cloud
computing service
platform and
Asset-
financial big data 407013.02 291744.19 115268.83
related
support platform
development and
application project
Financial big data Asset-
840166.55567762.61272403.94
infrastructure project related
164 / 2442022 Annual Report
Hundsun Cloud Asset-
16710000.005954367.84566609.2022097758.64
Production Base related
Crossover service
Asset-
design methods and 700000.00 368890.80 331109.20
related
key technologies
Crossover service
Asset-
integration methods 670000.00 343577.59 326422.41
related
and support carriers
Major big data-based
intelligent Asset-
741065.53434145.16306920.37
investment advisory related
service platform
Intelligent service
Asset-
adaptation theory 700000.00 700000.00
related
and key technologies
Full process supply
chain and enterprise
Asset-
service platform 2780000.00 1376334.51 1403665.49
related
development and
application project
Innovation and
application projects
Asset-
of key information 4359233.72 1197850.44 3161383.28
related
infrastructure in
securities industry
Support the
construction of
Lujiazui internet
emerging financial
gathering platform - Asset-
115911.3977591.8438319.55
Lujiazui hedge fund related
quantitative
algorithmic trading
service platform
project
Total 38210906.29 5954367.84 14404864.95 29760409.18
Other notes:
□Applicable √Not Applicable
52. Other non-current liabilities
□Applicable √Not Applicable
53. Share capital
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase (+)/decrease (-) for the period
Conversio
Issuance n of the
Opening balance Closing balance
of new Bonus shares reserve Others Sub-total
shares funds into
shares
Total 1461560480.0 438445962.0 438445962.0 1900006442.0
shares 0 0 0 0
165 / 2442022 Annual Report
Other notes:
According to the profit distribution plan adopted at the Company's 2021 annual general meeting on
June 24 2022 the Company intends to distribute a cash dividend of RMB1.00 (including tax) for every
10 shares and 3 bonus shares for every 10 shares to all shareholders based on the shares outstanding
registered on the date of registration of the implementation of the equity distribution less the number of
shares in the special securities repurchase account of the Company. As of August 18 2022 the Company
distributed a cash dividend of RMB1.00 (including tax) for every 10 shares and 3 bonus shares for every
10 shares to all shareholders based on the shares outstanding registered on the date (August 17 2022) of
registration of the implementation of the equity distribution less the number of shares in the special
securities repurchase account of the Company with a total cash dividend of RMB146156048.00
(including tax) and 438445962 bonus shares distributed. The above transfer was audited by Pan-China
Certified Public Accountants LLP which issued the Capital Verification Report (TJY [2022] No. 440).
54. Other equity instruments
(1). Basic information on preferred shares perpetual bonds and other financial instruments
outstanding at the end of the period
□Applicable √Not Applicable
(2). Changes in preferred shares perpetual bonds and other financial instruments outstanding at
the end of period
□Applicable √Not Applicable
Changes in other equity instruments during the period the reasons for the changes and the basis for the
related accounting:
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
55. Capital reserve
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Capital premium
131425939.20131425939.20
(share premium)
Other capital
272730547.65229445323.38191304153.18310871717.85
reserves
Total 272730547.65 360871262.58 191304153.18 442297657.05
Other notes including changes in the current period and reasons for the changes:
Increase for the period:
(1) Share-based payment:
According to the Investment and Management Measures of Hundsun's Key Employees Subscribing
Shares of Hundsun's Innovative Business Subsidiaries adopted through deliberation at the Company's 21st
meeting of the Fifth Session of the Board on February 12 2015 the Company granted the corresponding
equity interests in the subsidiary to the key employees of its subsidiaries Shanghai Gildata Hundsun
iBontal and Hundsun Ayers. The above equity-settled share-based payment amounted to
166 / 2442022 Annual Report
RMB4531478.65 calculated in proportion to the Company’s shareholding increasing the capital reserve-
other capital reserve.According to the Proposal on the 2020 Employee Stock Ownership Scheme (Draft) of Hundsun
Technologies Inc. and Its Summary the Proposal on the Management Measures for 2020 Employee Stock
Ownership Scheme of Hundsun Technologies Inc. the Proposal on the 2022 Employee Stock Ownership
Scheme (Draft) of Hundsun Technologies Inc. and Its Summary the Proposal on the Management
Measures for 2022 Employee Stock Ownership Scheme of Hundsun Technologies Inc. the Proposal on
the 2022 Stock Option Incentive Plan (Draft) of Hundsun Technologies Inc. and Its Summary and the
Proposal on the Management Measures for Performance Evaluation under the 2022 Stock Option
Incentive Plan of Hundsun Technologies Inc. adopted by the Company through deliberation the above
equity-settled share-based payment amounted to RMB152724167.14 calculated in proportion to the
Company’s shareholding increasing the capital reserve-other capital reserve.On June 28 2022 the performance evaluation indicators under the 2020 Employee Stock Ownership
Scheme met the conditions for releasing the first restricted shares from restrictions and the corresponding
incentive cost of RMB131425939.20 was carried forward to share premium under capital reserve-share
premium.
(2) The Company's share of other changes in owners’ equity arising from associates other than net
profit or loss and profit distribution amounted to RMB20203417.71 calculated in proportion to the
Company's shareholding increasing capital reserve - other capital reserve.
3) The Company's share of other changes held by Company’s shareholding platform in the ownership
interests of subsidiaries within the scope of the Company’s consolidation for the period other than net
profit or loss and profit distribution amounted to RMB22202726.28 in the consolidated statements of
income through cross-shareholding in subsidiaries increasing capital reserve - other capital reserve.
(4) The difference of RMB29783533.60 between the purchase cost/disposal consideration and the
share of net assets of subsidiaries based on the percentage of shares acquired/disposed due to additional
capital contribution additional investment and purchase of minority interests by external investors of
Cloudwing Network Shanghai Gildata Hundsun iBontal Hangzhou Business Intelligence and Shanghai
Genus was added to other capital reserve under capital reserve.Decrease for the period:
(1) Other decrease in capital reserve of RMB53874000.00 is described in Note VII. 56 to the
financial statements.
(2) The reason for a decrease of RMB6004213.98 in others under capital reserve was that other
changes in owners' equity originally recognized other than net profit and loss and profit distribution were
carried forward to profit and loss when the joint venture was disposed of.
(3) The reason for a decrease of RMB131425939.20 in others under capital reserve was that the
performance appraisal indicators under the 2020 Employee Stock Ownership Scheme met the conditions
for releasing the first restricted shares from restrictions and the corresponding incentive cost of
RMB131425939.20 was carried forward to share premium under capital reserve-stock premium.
167 / 2442022 Annual Report
56. Treasury shares
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Share repurchase 39676146.96 97796922.69 89187750.00 48285319.65
Repurchase 31578947.00 31578947.00
obligation
Total 39676146.96 129375869.69 89187750.00 79864266.65
Other notes including changes in the current period and reasons for the changes:
(1) Changes in share repurchase during the Reporting Period:
According to the Company's Employee Stock Ownership Scheme the Company proposed to
repurchase some shares of the public with its own funds through call auction trading for its Employee
Stock Ownership Scheme. During the Reporting Period the Company paid RMB97796922.69 for the
repurchase of 2497957 shares and transferred 1642500 repurchased shares other than through trading
at a transfer price of RMB21.50 per share to the account under the Employee Stock Ownership Scheme
according to grant arrangements under the Employee Stock Ownership Scheme. The Company received
a total of RMB35313750.00 in share subscription payment from the participants under the Stock Option
Incentive Plan carried forward treasury shares of RMB89187750.00 at the average repurchase price
before the date of grant and accordingly decreased other capital reserve under capital reserve by
RMB53874000.00. As of December 31 2022 the Company retained 1271897 shares in its special
securities repurchase account.
(2) Changes in repurchase obligations during the Reporting Period:
According to the Shareholder Agreement signed by and between Hundsun iBontal a subsidiary of
the Company as one party and Trust Mutual Life Insurance Company Lingshui (Shanghai) Science and
Technology Center (L.P.) and Ningbo High-tech Zone Yunhan Equity Investment Management
Partnership (L.P.) as the other party Hundsun iBontal is not allowed to unconditionally avoid its
contractual obligation to repurchase its own equity instruments in cash. Therefore the additional capital
contribution received during the Reporting Period was recognized as treasury shares of
RMB31578947.00 resulting in an increase of RMB 32972762.24 in long-term accounts payable.
168 / 2442022 Annual Report
57. Other comprehensive income
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the current period
Less: Amount Less: Amount
included in included in
other other
Attributable to
Amount incurred comprehensive comprehensive Attributable to
the minority
Item Opening balance before income income in the income in the Less: Income the parent Closing balance
shareholders -
tax in the current previous period previous period tax expenses company - net of
net of income
period and transferred and transferred income tax
tax
to profit and to retained
loss in the income in the
current period current period
II. Other
comprehensive
income to be
-19063233.8644256526.9642411284.161845242.8023348050.30
subsequently
reclassified into profit
or loss
Including: Other
comprehensive
income to be
1248972.791248972.79
reclassified into profit
or loss by the equity
method
Changes in fair
value of other debt 1775888.01 -2653122.19 -2558936.35 -94185.84 -783048.34
investments
Differences arising
from translation of
-22088094.6646909649.1544970220.511939428.6422882125.85
foreign currency
financial statements
169 / 2442022 Annual Report
Total other
comprehensive -19063233.86 44256526.96 42411284.16 1845242.80 23348050.30
income
170 / 2442022 Annual Report
58. Special reserves
□Applicable √Not Applicable
59. Surplus reserves
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Opening balance Increase in the current Decrease in the current Closing balance
period period
Statutory surplus 322432343.76 103012621.43 425444965.19
reserve
Total 322432343.76 103012621.43 425444965.19
Note on surplus reserves including changes (increase or decrease) during the current period and reasons
for such changes:
According to the Articles of Association of the Company 10% of the Company's net profit for 2022
in the amount of RMB103012621.43 was contributed to the statutory surplus reserve.
60. Undistributed profits
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Current period Previous period
Undistributed profits at the end of the
3697047060.462893625565.93
previous period before adjustment
Total amount of undistributed profits at
the beginning of the period (adjustment -291827.99
+/-)
Undistributed profits at the beginning of
3697047060.462893333737.94
the period after adjustment
Add: Net profit attributable to owners of
1091088379.581463538930.14
the parent company in the current period
Less: Withdrawal of statutory surplus
103012621.43137988450.22
reserve
Ordinary share dividends payable 146148654.00 104367431.40
Ordinary shares dividends
438445962.00417469726.00
transferred to share capital
Undistributed profits at the end of the
4100528202.613697047060.46
period
According to the Profit Distribution Plan for 2021 adopted at the 2021 Annual Shareholders' General
Meeting RMB146148654.00 were distributed as cash dividends based on a cash dividend of RMB1 (tax
included) per 10 shares; at the same time RMB438445962.00 were distributed as share dividends based
on a share dividend of 3 bonus shares per 10 shares.
61. Revenue and cost of sales
(1). Revenue and cost of sales
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
171 / 2442022 Annual Report
Main business 6497599111.75 1718134107.00 5492012267.44 1484074041.27
Other 4788031.74 815476.55 4566357.44 528445.39
businesses
Total 6502387143.49 1718949583.55 5496578624.88 1484602486.66
172 / 2442022 Annual Report
(2). Revenue from contracts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Classification of contract Segment Total
By type of product
Software 6483879967.45 6483879967.45
Property management of science park 14485080.83 14485080.83
By operating regions
Domestic 6262390294.73 6262390294.73
Overseas 235974753.55 235974753.55
By time of transfer of goods
Revenue recognized at a certain time 4395914634.97 4395914634.97
point
Revenue recognized within a certain 2102450413.31 2102450413.31
period of time
Total 6498365048.28 6498365048.28
Breakdown of revenue from contracts:
□Applicable √Not Applicable
(3). Contract performance obligations
√Applicable □Not Applicable
The Company's revenue mainly comes from sales of self-made and customized software software
services and outsourced goods as well as property management in the science park. Sales of self-made
and customized software and outsourced goods are performance obligations to be performed at a certain
time point and the revenue shall be recognized when the products are delivered to the customer and the
customer obtains control of the products. Software services and property management in the science park
are performance obligations to be performed within a certain time period and the revenue shall be
recognized in accordance with the performance progress.
(4). Apportionment to remaining performance obligations
□Applicable √Not Applicable
Other notes:
The revenue recognized in the opening carrying value of contract liabilities during the current period
was RMB2110624968.08.
62. Taxes and surcharges
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
Urban maintenance and 34308687.68 28527494.06
construction tax
Educational surcharge 14703928.67 12182314.06
Local educational surcharges 9829645.30 8121542.84
Property tax 11490274.30 5452932.31
Consumption tax in Japan 1668505.59 1628529.47
Stamp duty 2874136.68 3720809.02
Land use tax 153965.07 729325.55
173 / 2442022 Annual Report
Land appreciation tax 285044.12 4571.47
Vehicle and vessel tax 23580.00 25870.00
Total 75337767.41 60393388.78
63. Selling and distribution expenses
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
Employee compensation 503694532.72 444391580.88
Share-based payment 22680517.53 19704377.96
Travel expenses 27990595.30 34511742.58
Consulting fee for special items 37760439.08 30657327.35
Marketing and promotion expenses 10600589.76 14775781.58
Communication expenses 4184153.61 897106.94
Office expenses 3899312.37 6785409.66
Depreciation and amortization 2797031.35 2133005.47
Vehicle expenses 2417410.06 3021727.32
Others 1068243.63 1056907.69
Total 617092825.41 557934967.43
64. General and administrative expenses
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Employee compensation 441785911.91 324789305.66
Share-based payment 57263965.59 28633427.21
Office expenses 67061050.04 75040330.93
Business expenses 85587925.01 91028682.21
Depreciation and amortization 133072033.23 72829790.22
Consulting fee for special items 42273679.89 48770432.11
Communication expenses 7627250.62 7740488.59
Intermediary fees 9039945.57 8593720.23
Travel expenses 8514498.34 8847865.25
Vehicle expenses 9664659.03 8533686.99
Taxes and dues 7999662.29 6314399.80
Others 335639.63 331338.37
Total 870226221.15 681453467.57
65. R&D expenses
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Employee compensation 2063062040.12 1774143884.49
Share-based payment 63895985.95 51150543.46
Technology development costs 98270811.25 125425990.49
Travel expenses 40023539.62 61614651.88
Communication expenses 37369365.08 84448221.60
174 / 2442022 Annual Report
Depreciation and amortization 34231563.96 28998005.21
Vehicle expenses 4173036.39 4615782.70
Office expenses 3992855.58 7839989.02
Intermediary fees 1178124.90 725072.46
Business expenses 83650.37 334224.76
Total 2346280973.22 2139296366.07
66. Finance costs
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the Amount incurred in the
current period previous period
Interest expenses 20893866.14 10507675.01
Interest income -27850713.32 -17150371.61
Net foreign exchange gain or loss 21836546.38 4365039.81
Others 1015048.55 1371611.45
Total 15894747.75 -906045.34
67. Other income
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the previous
period period
Asset-related government grants 14404864.95 8818442.18
Revenue-related government grants 271589437.42 275629010.51
Refund of handling charges for 713020.17 3623437.38
withholding individual income tax
VAT additional deduction 2281859.05 1809379.23
Total 288989181.59 289880269.30
68. Investment income
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the current Amount incurred in the
Item
period previous period
Income from long-term equity investments
116485385.9291328055.87
calculated by the equity method
Investment income from the disposal of
7847626.6639045988.68
long-term equity investments
Investment income from holding held-for-
86592632.3671473085.31
trading financial assets
Investment income from holding other debt
2177172.622963365.04
investments
Investment income from disposal of held-
39779935.7071330011.84
for-trading financial assets
Investment income from disposal of other
-45249.13-303236.95
debt investments
Investment income during the holding
5700000.00
period of fixed certificates of deposit
Total 258537504.13 275837269.79
175 / 2442022 Annual Report
69. Gain from Net Exposure to Hedging
□Applicable √Not Applicable
70. Gain from changes in fair value
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Source of gain from changes in fair Amount incurred in the current Amount incurred in the previous
value period period
Held-for-trading financial assets -157729782.94 418521750.89
Gain from changes in fair value
of cash-settled share-based payment -8011316.29 -4120593.87
liabilities
Total -165741099.23 414401157.02
71. Credit impairment losses
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the current Amount incurred in the
Item
period previous period
Loss on bad debts of accounts receivable -56982067.63 -31125551.48
Loss on bad debts of other receivables 1825637.46 164292.85
Total -55156430.17 -30961258.63
72. Asset impairment losses
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the Amount incurred in the previous
Item
current period period
II. Loss on diminution in value of
inventories and impairment loss on -15920374.09 -3738572.25
contract performance cost
III. Impairment loss on long-term equity
-7620000.00
investments
X. Impairment loss on intangible assets -2813188.58
XI. Impairment loss on goodwill -38476898.79
XIII. Impairment loss on contract assets -1541674.22 -500267.36
Total -58752135.68 -11858839.61
73. Gain from disposal of assets
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the previous
period period
Gain from disposal of fixed assets -2524536.28 -552528.07
176 / 2442022 Annual Report
Revenue from disposal of right-to- 14053.77
use assets
Total -2510482.51 -552528.07
74. Non-operating income
Non-operating income
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the Amount incurred in the Amount charged to non-
Item
current period previous period recurring profit or loss
Gains from destruction
and retirement of non- 14418.39 82710.62 14418.39
current assets
Waiver of accounts
8216.0093751.008216.00
payable
Income from
compensation and 569755.39 332526.79 569755.39
penalty
Others 1917024.04 1982498.85 1917024.04
Total 2509413.82 2491487.26 2509413.82
Government grants charged to the current profit or loss
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
75. Non-operating expenses
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the Amount incurred in the Amount charged to non-
Item
current period previous period recurring profit or loss
Donation 1171177.66 2425000.00 1171177.66
Loss of retirement of
25011.47140120.3125011.47
non-current assets
Compensation and
2261.3979653.382261.39
penalty
Indemnities 520206.00 75424.13 520206.00
Local water
3851.332439.613851.33
conservancy fund
Others 182330.49 596297.71 182330.49
Total 1904838.34 3318935.14 1904838.34
76. Income tax expenses
(1). Income tax expenses
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the current Amount incurred in the previous
Item
period period
Current income tax expenses 55908242.53 85888485.20
177 / 2442022 Annual Report
Deferred income tax expenses -51151901.07 -66294554.57
Total 4756341.46 19593930.63
(2). Process of adjusting accounting profit and income tax expense
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the current period
Total profit 1124576138.61
Income tax expenses based on statutory/applicable
112457613.86
tax rate
Effect of different tax rates applicable to subsidiaries 3999776.83
Effect from adjustment of income tax in the
9784986.65
previous period
Effects of non-taxable income -15145736.73
Effect of cost expense and loss nondeductible 8663722.96
Effect of deductible loss of deferred income tax
-7274220.35
assets unrecognized in the previous period
Effect of deductible temporary difference or
deductible loss arising from deferred income tax 68711875.29
assets unrecognized during the period
Effect of weighted deduction on R&D expenses and
-176441677.05
salaries of disabled employees
Income tax expenses 4756341.46
Other notes:
□Applicable √Not Applicable
77. Other comprehensive income
√Applicable □Not Applicable
See notes for details
78. Items in the statement of cash flows
(1). Cash received from other operating activities
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the previous
period period
Temporary receipts payable 23504673.35 1310239.45
Security deposit received 32338083.02 49245279.78
Government grants 43277716.76 39325041.86
Guarantee deposit received 635500.00 2508515.00
Cash received from rental properties 3570225.79 3836914.23
Interest income 27402656.43 17096437.51
Others 11776886.54 7755362.72
Total 142505741.89 121077790.55
(2). Cash paid for other operating activities
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
178 / 2442022 Annual Report
Item Amount incurred in the current Amount incurred in the previous
period period
Administration expenses paid by cash 268856650.10 235290504.46
R&D expenses paid by cash 205753353.70 309100150.16
Selling expenses paid by cash 121035073.65 99380929.65
Security deposit paid 54575890.17 50448072.97
Temporary receipts payable 2227803.40 3704922.27
Guarantee deposit paid 1987145.00 2163955.00
Others 8714916.52 9420868.52
Total 663150832.54 709509403.03
(3). Cash received from other investing activities
□Applicable √Not Applicable
(4). Cash paid for other investing activities
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Payment for acquisition of Summit
business 164207584.96
Net cash outflow from disposal of
subsidiaries 880532.51
Total 165088117.47
(5). Cash received from other financing activities
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Contributions received under the 361621876.00
Employee Stock Ownership Scheme 35313750.00
Total 35313750.00 361621876.00
(6). Cash paid for other financing activities
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the
period previous period
Share repurchase 97796922.69 682624959.25
Payment by subsidiaries to minority 63504870.16
interests for capital contribution 1508857.98
Acquisition of minority interests 43620668.30 19366414.00
Payment for lease of right-to-use assets 16501795.24 11485781.92
Handling charge for financing 236958.32
Total 159665202.53 776982025.33
179 / 2442022 Annual Report
79. Supplementary information of the cash flow statement
(1). Supplementary information of the cash flow statement
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Supplementary information Amount for the current period Amount in the previous period
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 1119819797.15 1490128685.00
Add: Asset impairment provision 58752135.68 11858839.61
Credit impairment losses 55156430.17 30961258.63
Depreciation of fixed assets oil and gas
115387234.2171444261.19
assets and productive biological assets
Amortization of right-of-use assets 17593002.69 12627203.76
Amortization of intangible assets 47228100.47 27995252.05
Amortization of long-term prepaid
985211.962723406.19
expenses
Losses on the disposal of fixed assets
intangible assets and other long-term 2510482.51 552528.07
assets (gain denoted by "-")
Losses on write-off of fixed assets (gain
10078.0857409.69
denoted by "-")
Loss on changes in fair value (gain
165741099.23-414401157.02
denoted by "-")
Financial expenses (gain denoted by "-") 42967366.63 14872714.82
Investment losses (gain denoted by "-") -258537504.13 -275837269.79
Decrease in deferred income tax assets
-29685095.33-92025790.23
(increase denoted by "-")
Increases in deferred income tax
-22327369.9825731235.65
liabilities (decrease denoted by "-")
Decrease in inventories (increase denoted
-90318579.97-108500758.56
by "-")
Decrease in operating receivables
-280125597.46-211237984.73
(increase denoted by "-")
Increase in operating items payable
32829827.08257247872.00
(decrease denoted by "-")
Others 160206160.97 112591599.81
Net cash flows from operating activities 1138192779.96 956789306.14
2. Major investing and financing activities not involving cash receipts and payments:
Transfer of debt into capital
Current portion of convertible corporate
bonds
Fixed assets acquired under financial
lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 2661311965.36 1723434091.60
Less: Opening balance of cash 1723434091.60 1370028554.66
Add: Closing balance of cash equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash equivalents 937877873.76 353405536.94
[Note 10]: Others represent the amount of equity-settled share-based payments in exchange for
employee services
180 / 2442022 Annual Report
(2). Net cash paid for acquisition of subsidiaries in the current period
□Applicable √Not Applicable
(3). Net cash received from the disposal of subsidiaries during the current period
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount
Cash and cash equivalents received in the current period from disposal
of subsidiaries in the current period
Including: Guangdong Institute of Finance
Less: Cash and cash equivalents held by subsidiaries on the loss-control 880532.51
date
Including: Guangdong Institute of Finance 880532.51
Add: cash or cash equivalents received in the current period from
subsidiary disposal in the previous periods
Net cash received from disposal of subsidiaries -880532.51
Other notes:
During the Reporting Period the net cash received from the disposal of the subsidiary Guangdong
Institute of Finance was negative and included in other cash payments related to investing activities.
(4). Composition of cash and cash equivalents
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
I. Cash 2661311965.36 1723434091.60
Including: Cash on hand 310575.66 365020.30
Bank deposit available for payments at
2595414991.801707660259.64
any time
Other cash and bank balances readily
65586397.9015408811.66
available for payment
II. Cash equivalents
Including: Bond investment due within
3 months
III. Ending balance of cash and cash
2661311965.361723434091.60
equivalents
Including: Restricted cash and cash
equivalents used by parent company or
subsidiaries under the Group
Other notes:
√Applicable □Not Applicable
The closing balance of cash and cash equivalents on the consolidated cash flow statement was
RMB2661311965.36 and the closing cash and bank balances on the balance sheet was
RMB2872634365.36. The difference was due to the deduction of the guarantee deposit of
RMB5622400.00 and fixed certificates of deposit and interest of RMB205700000.00 which did not
181 / 2442022 Annual Report
meet the standard of cash and cash equivalents from the closing balance of cash and cash equivalents on
the cash flow statement.The Item "opening balance of cash and cash equivalents" in the consolidated cash flow statement was
RMB1723434091.60 and the Item "opening cash and bank balances" in the balance sheet was
RMB1727704846.60. The difference was due to the deduction of the guarantee deposit of
RMB4270755.00 not meeting the standard of cash and cash equivalents from the "closing balance of
cash and cash equivalents" in the Company's cash flow statement.
80. Notes to items in the Statement of Retained Earnings
Explanation of the name of the Item "others" that adjusted the closing balance of the previous year and
the amount of adjustment:
□Applicable √Not Applicable
81. Assets with restricted ownership or right-of-use
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Ending book value Reason for restriction
Cash and bank balances 5622400.00 Guarantee deposit
Cash and bank balances 205700000.00 Time deposits to be held to maturity
plus interest
Fixed assets 1105319505.95 Pledged to secure bank borrowings
Intangible assets 71127264.43 Pledged to secure bank borrowings
Construction in progress 124123757.95 Pledged to secure bank borrowings
Total 1511892928.33 /
82. Foreign currency monetary items
(1). Foreign currency monetary items
√Applicable □Not Applicable
Unit: Yuan
Ending foreign Conversion exchange Ending balance of
Item
currency balance rate converted RMB
Cash and bank balances - -
Including: USD 972228.46 6.9646 6771182.33
JPY 1035448275.84 0.0524 54257489.65
HKD 91164211.77 0.89327 81434255.45
SGD 377894.75 5.1831 1958666.28
MYR 8590184.29 1.5772 13548095.05
Accounts receivable - -
Including: USD 1110597.15 6.9646 7734864.91
JPY 67326234.92 0.0524 3527894.71
HKD 59489949.53 0.89327 53140587.22
Other receivables - -
Including: JPY 64991005.15 0.0524 3405528.67
HKD 721095.42 0.89327 644132.91
Accounts payable
Including: USD 22275000.00 6.9646 155136465.00
JPY 83077778.17 0.0524 4353275.58
HKD 800727.66 0.89327 715266.00
182 / 2442022 Annual Report
Other payables
Including: JPY 642051098.28 0.0524 33643477.55
HKD 2859152.53 0.89327 2553995.18
Long-term borrowings - -
Including: HKD 90546559.77 0.89327 80882525.45
JPY 49959923.66 0.0524 2617900.00
(2). Information of overseas operating entities in which main business location recording currency
and basis of selection shall be disclosed for significant overseas operating entities and the
reason shall be disclosed in case of changes in recording currency
√Applicable □Not Applicable
Company name Principal place of Functional Currency Basis of selection
business
Japan Hundsun Tokyo Japan JPY Common currency of the
place of business
Hundsun International Hong Kong HKD Common currency of the
Technologies place of business
Hundsun Ayers Hong Kong HKD Common currency of the
place of business
Hundsun HK Hong Kong HKD Common currency of the
place of business
Ayers Technologies Singapore SGD Common currency of the
(Singapore) place of business
Intercontinental Holdings Hong Kong HKD Common currency of the
place of business
Hundsun U.S. Delaware USA USD Common currency of the
place of business
Chain Next Hong Kong HKD Common currency of the
place of business
Hundsun International British Virgin Islands USD Common currency of the
place of business
Hundsun Holdings Hong Kong HKD Common currency of the
place of business
IHS Markit (Hong Kong) Hong Kong HKD Common currency of the
place of business
GenSys Technology Hong Kong HKD Common currency of the
place of business
83. Hedging
□Applicable √Not Applicable
84. Government grants
(1). Basic information of government grants
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount charged to the
Type Amount Item presented
current profit or loss
Asset-related government
29760409.18 Deferred income 14404864.95
grants
Revenue-related government 271589437.42 Other income 271589437.42
183 / 2442022 Annual Report
grants used to compensate
the Company for related
costs or losses incurred
(2). Refund of government grants
□Applicable √Not Applicable
85. Others
□Applicable √Not Applicable
VIII. Changes in the Scope of Consolidation
1. Business combination not under common control
√Applicable □Not Applicable
(1). Business combinations not under common control in the current period
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Income of the Net profits of
Shareholding Determination acquiree from acquiree from
Name of Acquisition Acquisition Acquisition Purchase
percentage basis of the purchase the purchase
acquiree date cost method date
(%) purchase date date to the end date to the end
of the period of the period
Summit
Acquisition of
business 2022.4.11 414152613.00 2022.4.11 64117946.10 34384820.77
control
[Note 11]
Other notes:
[Note 11] The purchase of Summit software-related business by Cloudwing Network constituted a
business combination and was thus subject to the provisions of business combination not under common
control.
(2). Consolidated cost and goodwill
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Consolidated cost Summit business
--Cash 414152613.00
Total consolidated cost 414152613.00
Less: Fair value of net identifiable assets acquired 64719327.60
Amount of goodwill/consolidated cost less than the fair
349433285.40
value of identifiable net assets acquired
Recognition method of the fair value of consolidated cost or contingent consideration and change
thereof:
According to the Summit Agreement entered into between Cloudwing Network and Finastra
International Limited (hereinafter referred to as Finastra) in November 2021 Cloudwing Network
proposed to invest USD65 million to acquire the Summit software-related business owned by Finastra.The transaction price was determined based on the Asset Group Valuation Program on the Summit
Business Owned by Finastra International Limited to be Acquired by Hangzhou Cloudwing Network
Technology Co. Ltd. (KYPBZ [2021] No. 752) issued by Canwin Appraisal with the base date of
appraisal being September 30 2021.
184 / 2442022 Annual Report
(3). Identifiable assets and liabilities of the acquiree on the purchase date
□Applicable √Not Applicable
(4). Gains or losses arising from the remeasurement at the fair value of shares held before the
purchase date
Whether there are multiple transactions that realize business combination step by step and acquire
control in the Reporting Period
□Applicable √Not Applicable
(5). Notes related to the inability to reasonably determine the merger consideration or the fair value
of the acquiree's identifiable assets and liabilities on the purchase date or at the end of the
period of the merger
□Applicable √Not Applicable
(6). Other Description
□Applicable √Not Applicable
2. Business combination under common control
□Applicable √Not Applicable
3. Counter purchase
□Applicable √Not Applicable
185 / 2442022 Annual Report
4. Disposal of subsidiaries
Is there any circumstance that the control is lost due to the disposal of subsidiaries in investment?
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Difference
between the
Profit or loss on
consideration
Determining investment
received and Proportion
Carrying Profit or loss method and transferred
the of
Basis for amount of Fair value of caused by main from other
corresponding remaining
Time point determining remaining remaining recalculation assumptions comprehensive
Name of proportion of equity on
for loss of time point equity on equity on the of remaining of remaining incomes in
subsidiary the the date of
control for loss of the date of date of loss equity equity fair connection
subsidiary’s loss of
control loss of of control according to value on the with equity
net assets in control
control fair value date of loss investment of
the (%)
of control the original
consolidated
subsidiary
financial
statements
Guangdong
Institute of Transfer of
2022.12.2760475637.29475637.29
Finance control
[Note 12]
[Note 12] According to the resolution of the Board of Governors of Guangdong Institute of Finance on
December 27 2022 the Company will no longer appoint members of the Board of Governors.Other notes:
□Applicable √Not Applicable
5. Changes in the scope of consolidation due to other reasons
Changes in the scope of consolidation due to other reasons (such as establishing new subsidiaries
liquidating subsidiaries) and related information:
√Applicable □Not Applicable
(1) Expanded scope of consolidation
Unit: Yuan Currency: RMB
Company name Acquisition method Acquisition date Amount of Proportion of
contribution contribution
Hangzhou Hengshu Established by 2022.5.30 1000000.00 100.00%
investment
Digital Intelligence Established by 2021.12.1 70000000.00 43.70%
Qiyuan investment
Jiaocha Information Established by 2022.5.7 3600000.00 70.00%
investment
Beijing Hengying Established by 2022.1.1 1000000.00 100.00%
investment
Shanghai Established by 2022.1.1 3000000.00 100.00%
Cloudwing investment
Hangzhou Yihe Established by 2022.1.1 964000.00 60.10%
investment
(2) Narrowed scope of consolidation
Unit: Yuan Currency: RMB
Net profit from the
Share disposal Net assets as of the beginning of the
Company name Date of disposal
method disposal date period to the
disposal date
Shanshang Network Cancellation 2022.5.31 -17227855.04 -4802.88
Share disposal method
Disposal proportion of equity (%)
Disposal price of equity2022 Annual Report
6. Others
□Applicable √Not Applicable
187 / 2442022 Annual Report
IX. Equity in Other Entities
1. Equity in subsidiaries
(1). Composition of the Group
√Applicable □Not Applicable
Principal Shareholding proportion (%)
Name of Place of Nature of Acquisition
place of
subsidiary registration business Direct Indirect method
business
Cloud Hangzhou Hangzhou Industrial 69.70 Establishment
Investment Zhejiang Zhejiang investment
Wuxi Henghua Wuxi Wuxi Real estate 100.00 Establishment
Jiangsu Jiangsu
Data Security Hangzhou Hangzhou Software 87.70 Establishment
Zhejiang Zhejiang
Jinrui Software Hangzhou Hangzhou Software 100.00 Establishment
Zhejiang Zhejiang
Beijing Beijing Beijing Software 94.00 6.00 Establishment
Qiantang
Shanghai Yirui Shanghai Shanghai Management 70.00 Establishment
consulting
Japan Hundsun Tokyo Japan Tokyo Japan Software 48.95 Establishment
Business
Hundsun combination
Investment
International Hong Kong Hong Kong 96.45 1.33 not under
management
Technologies common
control
Business
combination
Shanghai
Shanghai Shanghai Software 100.00 not under
Liming
common
control
Business
combination
Shanghai
Shanghai Shanghai Software 59.10 5.86 not under
Gildata
common
control
Hangzhou Hangzhou Hangzhou Investment
100.00 Establishment
Yunhui Zhejiang Zhejiang management
Cloudwing Hangzhou Hangzhou Software 97.84 1.13 Establishment
Network Zhejiang Zhejiang
Securities Hangzhou Hangzhou Software 60.00 13.39 Establishment
Investment Zhejiang Zhejiang
Network
Cloudyee Hangzhou Hangzhou Software 56.43 11.72 Establishment
Network Zhejiang Zhejiang
Yunyong Hangzhou Hangzhou Software 60.00 13.12 Establishment
Network Zhejiang Zhejiang
Cloudbroker Hangzhou Hangzhou Software 57.93 10.64 Establishment
Network Zhejiang Zhejiang
Yunlian Hangzhou Hangzhou Software 60.00 23.57 Establishment
Network Zhejiang Zhejiang
Wengine Hangzhou Hangzhou Software 70.00 Establishment
Network Zhejiang Zhejiang
Hangzhou Hangzhou Hangzhou Investment 100.00 Establishment
Yima Zhejiang Zhejiang management
188 / 2442022 Annual Report
Intercontinental Hong Kong Hong Kong Investment 100.00 Establishment
Holdings management
Hangzhou Hangzhou Hangzhou Investment 75.10 Establishment
Xinglu Zhejiang Zhejiang management
Business
Hangzhou combination
Hangzhou Hangzhou
Business Software 78.17 4.94 not under
Zhejiang Zhejiang
Intelligence common
control
Shengtian Shanghai Shanghai Software 100.00 Establishment
Network
Zhigu Network Hangzhou Hangzhou Software 60.00 12.62 Establishment
Zhejiang Zhejiang
Jingteng Hangzhou Hangzhou Software 59.21 12.12 Establishment
Network Zhejiang Zhejiang
Wuxi Xinglu Wuxi Wuxi Investment 60.13 Establishment
Jiangsu Jiangsu management
IHS Markit Hangzhou Hangzhou Software 67.00 Establishment
Zhejiang Zhejiang
Nanjing Nanjing Nanjing Investment 59.41 0.99 Establishment
Xingcheng Jiangsu Jiangsu management
Hundsun Hong Kong Hong Kong Investment 96.45 1.33 Establishment
Holdings management
Business
combination
Guangzhou Guangzhou
BusinessMatrix Software 85.00 not under
Guangdong Guangdong
common
control
Business
combination
Shanghai
Shanghai Shanghai Software 57.93 17.54 not under
Genus
common
control
Business
combination
Hundsun Shenzhen Shenzhen
Software 73.61 3.43 not under
iBontal Guangdong Guangdong
common
control
Xunchang Hangzhou Hangzhou
Software 70.00 Establishment
Wendao Zhejiang Zhejiang
Nanjing Nanjing Nanjing Investment
58.33 2.09 Establishment
Xingding Jiangsu Jiangsu management
Hangzhou Hangzhou Hangzhou Service
100 Establishment
Hengshu Zhejiang Zhejiang industry
Digital
Hangzhou Hangzhou Investment
Intelligence 43.70 Establishment
Zhejiang Zhejiang management
Qiyuan
Jiaocha Nanjing Nanjing
Software 70 Establishment
Information Jiangsu Jiangsu
The basis for the Company's control over the investee when holding half or less of the voting rights and
the Company's control over the investee when holding more than half of the voting rights:
The Company holding 48.95% of the shares of Japan Hundsun is the largest shareholder of this
subsidiary. The Board of Japan Hundsun has three Directors among which two are appointed by the
189 / 2442022 Annual Report
Company thus the Company has substantial control over this subsidiary. Therefore Japan Hundsun is
incorporated into the scope of the consolidated financial statements
The Company has substantial control over Digital Intelligence Qiyuan by holding 43.70% of the
partnership interests in Digital Intelligence Qiyuan and having its subsidiaries Hangzhou Yima and
Hangzhou Yihe as the Fund Manager and the Executive Partner of Digital Intelligence Qiyuan respectively.Therefore Digital Intelligence Qiyuan has been included in the scope of consolidated financial statements.
(2). Significant non-wholly owned subsidiaries
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Shareholding Profit or loss
Dividends declared to Balance of minority
Name of percentage of attributable to
minority shareholders interests at the end
subsidiary minority minority shareholders
in the current period of the period
shareholders in the current period
Cloud Investment 30.30% 2155392.79 3030000.00 59262846.08
Japan Hundsun 51.05% -181329.73 924426.00 8610200.29
Cloudyee 31.85% 23907097.72 10893750.00 69013534.42
Network
Cloudbroker 31.43% 1300824.03 12814181.13
Network
Wengine 30.00% 17305244.79 9000000.00 40951858.48
Network
Hangzhou Xinglu 24.90% 656877.45 14367674.99
Jingteng Network 28.67% 52981.35 18478355.52
Wuxi Xinglu 39.87% -293848.51 9284262.61
Shanghai Gildata 35.04% -1657973.62 76312936.51
Hangzhou 16.89% 515896.08 7239777.85
Business
Intelligence
Shanghai Genus 24.53% 2012365.09 17916661.29
IHS Markit 33.00% -4250981.96 13411093.60
Nanjing 39.60% -413183.12 117531241.00
Xingcheng
Cloudwing 1.03% 65198.12 5342170.76
Network
Hundsun 2.22% 1232922.08 15050310.44
Holdings
Hundsun iBontal 22.96% -2276140.27 17506500.38
Xunchang 30.00% -6808591.78 4010028.07
Wendao
Notes on the difference between the shareholding percentage of minority shareholders of subsidiaries
and the voting rights ratio:
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
190 / 2442022 Annual Report
(3). Main financial information of significant non-wholly owned subsidiaries
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Closing balance Opening balance
Name of
Current Non-current Current Non-current Total Current Non-current Current Non-current Total
subsidiary Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
Cloud 40384 13841 54225 32302
321833218340695137555445032302
Investment
Japan 5855 31 5886 2285
3938262420042664343092008277
Hundsun
Cloudyee 29772 463 30235 7155
8570857023177386235637155
Network
Cloudbroker 7235 228 7463 4004
3228132297289389767840031
Network
Wengine 21307 225 21532 9905
78463678822061816920787987926
Network
Hangzhou 106 9811 4146
99174146414612210438105604146
Xinglu
Jingteng 8680 2933 5796
1161351085851668571335611927576531
Network
Wuxi Xinglu 77 2252 2329 77 2325 2402
Shanghai 37354 8529 16591
4588318498185520353240172395264121653061
Gildata
Hangzhou 7667 24 4586
Business 7691 3308 57 3365 7810 40 7850 4557 29
Intelligence
Shanghai 9387 2532 2637
119193990174007663127239354262512
Genus
IHS Markit 4518 24 4542 478 478 5425 28 5453 182 182
Nanjing 123 29553
296761242940929533
Xingcheng
Cloudwing 20377 53007 6300
7338419806151982115326244103973662937
Network
191 / 2442022 Annual Report
Hundsun 17966 62789 14539
80755417181061227710401622627266367487791
Holdings
Hundsun 9030 1408 2464
10438266033125972700319788981239272
iBontal
Xunchang 1549 274 595
182348648637784244202487108
Wendao
192 / 2442022 Annual Report
Unit: 10000 yuan Currency: RMB
Amount incurred in the current period Amount incurred in the previous period
Total Total Cash flow from
Name of subsidiary Cash flow from
Revenue Net profit comprehensive Revenue Net profit comprehensive operating
operating activities
income income activities
Cloud Investment 1327 868 868 448 1655 851 851 -85
Japan Hundsun 4936 -36 -36 1936 5189 -214 -214 -447
Cloudyee Network 19511 7505 7505 8712 14207 6005 6005 5440
Cloudbroker Network 6276 414 414 -87 4811 -236 -236 525
Wengine Network 13242 5768 5768 3512 9243 5266 5266 3872
Hangzhou Xinglu 264 264 -16 -423 -423 -2
Jingteng Network 11164 18 18 -1297 11792 148 148 -765
Wuxi Xinglu -74 -74 -348 -348 -2
Shanghai Gildata 33944 -1787 -1787 -2317 29062 852 852 3046
Hangzhou Business
744110071007-62074636565-680
Intelligence
Shanghai Genus 6774 808 808 1989 5159 484 484 338
IHS Markit 12 -1288 -1288 -899 21 -1025 -1025 -1191
Nanjing Xingcheng -104 -104 -951 -951 -300
Cloudwing Network 11529 726 726 1857 2929 -1144 -1144 -1278
Hundsun Holdings 18806 5551 5551 6447 17160 5428 5428 5586
Hundsun iBontal 12041 -2112 -2112 -1794 8092 -3393 -3393 -1664
Xunchang Wendao 504 -2270 -2270 -2159 440 -1394 -1394 -1118
193 / 2442022 Annual Report
(4). Substantial restriction on the usage of assets or the settlement of liabilities of the Group
□Applicable √Not Applicable
(5). Financial support or other support provided to structured entities within the scope of the
consolidated financial statement
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
2. Transactions in which the owners' equity in a subsidiary has changed and the subsidiary is still
under control
√Applicable □Not Applicable
(1). Changes in the owners' equity in subsidiaries
√Applicable □Not Applicable
Name of subsidiary Date of change Shareholding percentage Shareholding percentage
before change after change
Cloudwing Network 2022.1 2022.4 96.56% 97.84%
Hangzhou Business 2022.7 60.49% 78.17%
Intelligence
Hundsun iBontal 2022.9 91.16% 73.61%
Shanghai Gildata 2022.10 2022.12 63.19% 59.10%
GenSys Technology 2022.1 34.76% 44.63%
[Note 13] All are direct shareholding percentages
(2). Effect of transactions on minority equity and owners' equity attributable to the parent
company
□Applicable □Not Applicable
Unit: Yuan Currency: RMB
Hangzhou
Cloudwing GenSys
Business Hundsun iBontal Shanghai Gildata
Network Technology
Intelligence
Acquisition
cost/disposal
consideration
--Cash 194000000.00 43620668.31 3272960.00
-- Fair value of
non-cash assets
Total acquisition
cost/disposal 194000000.00 43620668.31 3272960.00
consideration
Less: Share of net
assets of
subsidiaries based
193740512.114514070.9414987089.6754986344.682449144.51
on the percentage
of shares
acquired/disposed
Difference 259487.89 39106597.37 -14987089.67 -54986344.68 823815.49
Including:
Adjustment to -259487.89 -39106597.37 14987089.67 54986344.68 -823815.49
capital reserves
194 / 2442022 Annual Report
Adjustment
to surplus reserves
Adjustment
to undistributed
profits
Other Description
□Applicable √Not Applicable
3. Equity in joint ventures or associates
√Applicable □Not Applicable
(1). Significant joint ventures or associates
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Shareholding Accounting
Principal proportion (%) methods for the
Name of joint venture or Place of Nature of
place of investment in
associate registration business
business Direct Indirect joint ventures or
associates
Shenzhen Ricequant
Technology Co. Ltd.Shenzhen Shenzhen Software 17.25 4.38 Equity method
(hereinafter referred to as
Shenzhen Ricequant)
Ant (Hangzhou) Fund Sales
Hangzhou Hangzhou
Co. Ltd. (hereinafter referred Finance 24.10 Equity method
Zhejiang Zhejiang
to as Ant Fund)
Shenzhen Tradeblazer
Technology Co. Ltd.Shenzhen Shenzhen Software 28.02 6.99 Equity method
(hereinafter referred to as
Shenzhen Tradeblazer)
Hundsun Cloud Financing
Network Technology Co. Hangzhou Hangzhou
Software 20.05 4.83 Equity method
Ltd. (hereinafter referred to Zhejiang Zhejiang
as Cloud Financing Network)
(2). Main financial information of significant joint ventures
□Applicable √Not Applicable
195 / 2442022 Annual Report
(3). Main financial information of significant associates
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance / amount in the current period Opening balance/ amount in the previous period
Shenzhen Shenzhen Cloud Financing Shenzhen Shenzhen Cloud Financing
Ant Fund Ant Fund
Ricequant Tradeblazer Network Ricequant Tradeblazer Network
Current assets 15600030.22 12164473586.58 137853803.92 152006017.35 14911118.64 10750923413.25 147521500.53 106082067.43
Non-current assets 5585535.76 187667911.22 5928379.70 5304901.26 6038494.06 97591983.00 3461210.46 1720873.97
Total assets 21185565.98 12352141497.80 143782183.62 157310918.61 20949612.70 10848515396.25 150982710.99 107802941.40
Current liabilities 5229820.43 10798267086.56 7797439.56 73943952.91 2238896.79 9846261484.40 7758112.00 64273940.02
Non-current
3629869.203384886.181442220.19336275.73
liabilities
Total liabilities 5229820.43 10801896955.76 7797439.56 77328839.09 2238896.79 9847703704.59 7758112.00 64610215.75
Minority interests -8375.99 -23393.07
Equity attributable
to shareholders of 15955745.55 1550244542.04 135993120.05 79982079.52 18710715.91 1000811691.66 143247992.06 43192725.65
the parent company
Shares of net assets
at the shareholding 3451412.24 373564903.78 47611152.28 19895280.54 4047344.18 241167192.12 50151063.08 11500352.55
percentage
Adjustments 61835817.56 15339388.62 37002476.34 13325305.49 61835817.56 15339388.62 37002476.34 12487431.15
--Goodwill 61816357.91 45757024.16 15803266.37 61816357.91 45757024.16 15803266.37
--Unrealized profit
of internal
transaction
--Others 19459.65 15339388.62 -8754547.82 -2477960.88 19459.65 15339388.62 -8754547.82 -3315835.22
Impairment
47651170.7641325091.0047651170.7641325091.00
provision
Carrying value of
equity investments 17636059.04 388904292.40 43288537.62 33220586.03 18231990.97 256506580.74 45828448.42 23987783.70
in associates
196 / 2442022 Annual Report
Fair value of equity
investments in
associates with a
public offer
Revenue 17555361.21 11158608790.98 32684873.75 144851406.39 14092679.89 12124218535.44 33938385.54 114616067.68
Net profit -730360.72 544021357.59 7766077.89 1145478.79 -8631748.25 503863782.59 17328596.23 -29296546.84
Net profit from
discontinued
operations
Other
comprehensive
income
Total
comprehensive -730360.72 544021357.59 7766077.89 1145478.79 -8631748.25 503863782.59 17328596.23 -29296546.84
income
Dividends received
from associates in 4483200.00 8966400.00
the current year
(4). Summarized financial information of insignificant joint ventures and associates
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance / amount in the current period Opening balance/ amount in the previous period
Associates:
Total carrying amount of investments 787493598.22 766391973.34
Total amount of the following items at the shareholding percentage
-- Net profit -23505782.78 -156306553.89
-- Other comprehensive income
-- Total comprehensive income -23505782.78 -156306553.89
197 / 2442022 Annual Report
(5). Significant restrictions on joint ventures or associates transferring funds to the Company
□Applicable √Not Applicable
(6). Excess loss incurred by joint ventures or associates
□Applicable √Not Applicable
(7). Unrecognized commitments related to investment in joint ventures
□Applicable √Not Applicable
(8). Contingent liabilities related to investment in joint ventures or associate
□Applicable √Not Applicable
4. Significant joint venture
□Applicable √Not Applicable
5. Equity in structured entities not included in the consolidated financial statement
Information of structured entities not included in the financial statements:
□Applicable √Not Applicable
6. Others
□Applicable √Not Applicable
X. Risks Related to Financial Instruments
√Applicable □Not Applicable
With an objective of achieving a balance between risk and revenue through risk management the
Company minimizes the negative impact of risk on its operating results to maximize the interest of its
Shareholders and other equity investors. According to the objective set for risk management the basic
strategy of the Company's risk management is to identify and analyze the Company's exposures to risk
establish appropriate tolerance thresholds for risks and implement risk management. In addition the
Company supervises various risks in a timely and reliable manner to keep risks within limits.During the daily operation the main risks arising from the Company's financial instruments include
credit risk liquidity risk and market risk. The Management has reviewed and approved policies for
managing all risks and summarized below.(I) Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations
resulting in financial losses to the other party.
1. Credit risk management practices
(1) Credit risk assessment method
The Company assesses whether the credit risk of the relevant financial instrument has increased
significantly since the initial recognition on each balance sheet date. In determining whether the credit risk
has increased significantly since initial recognition the Company considers reasonable and supportable
198 / 2442022 Annual Report
information that can be obtained without unnecessary additional costs or efforts including qualitative and
quantitative analysis based on historical data external credit risk ratings and forward-looking information.Based on a single financial instrument or a combination of financial instruments with similar credit risk
characteristics the Company determines the changes in the risk of default of the financial instrument
during the expected life of the instrument by comparing the risk of default on the financial instrument on
the balance sheet date with that on the date of initial recognition.The Company considers a financial instrument to have experienced a significant increase in credit
risk when one or more of the following quantitative or qualitative criteria have been met:
1) Quantitative criteria mainly refer to the probability of default for the remaining life on the balance
sheet date increasing by more than a certain percentage from the initial recognition;
2) Qualitative criteria mainly refer to the significant adverse change in debtor’s operation or financial
position existing or anticipated changes in the technological market economic or legal environment that
will have a material adverse effect on the debtors’ abilities to repay loans to the Company.
(2) Definition of default and credit-impaired asset
When a financial instrument meets one or more of the following conditions the Company defines a
financial asset as a default asset which is consistent with the definition of credit-impaired asset:
1) The debtor has major financial difficulties;
2) The debtor violates the provisions of the contract binding thereon;
3) The debtor is likely to go bankrupt or undergo financial restructuring;
4) The creditor for economic or contractual reasons relating to the debtor’s financial difficulty grants
the debtor concessions that would not have been made in any other circumstances.
2. ECL measurement
The key parameters of ECL measurement include probabilities of default (PD) losses given default
(LGD) and exposures at default (EAD). The Company takes into account the quantitative analysis of
historical statistics (such as ratings of the counterparty manners of guarantees and types of collateral and
repayments) and forward-looking information in order to establish a model of PD LGD and EAD.
3. The reconciliation of the opening balance and the closing balance of the allowance for losses on
financial instruments is detailed in Note VII.4 5 8 10 and 15 to the financial statements.
4. Credit risk exposure and credit risk concentration
Credit risks of the Company arise primarily from cash and bank balances and accounts receivable. In
order to control the relevant risks above the Company takes the following measures respectively.
(1) Cash and bank balances
The Company keeps bank deposits and other cash and bank balances in financial institutions at higher
credit ratings so their credit risks are low.
(2) Accounts receivable
The Company regularly conducts credit assessments on customers who trade on credit terms. Based
on the assessment results the Company chooses to trade with recognized and creditworthy customers and
199 / 2442022 Annual Report
monitors their accounts receivable balances to ensure that the Company will not be exposed to significant
bad debt risk.As the Company's exposure to accounts receivable is spread across multiple partners and multiple
customers 7.66% (December 31 2021: 7.9%) of the Company’s accounts receivable arose from the top
five customers with balances as of December 31 2022 and the Company did not have significant credit
concentration risk.The maximum credit risk exposure of the Company was the carrying amount of each financial asset
on the balance sheet.(II) Liquidity risk
Liquidity risk refers to the risk of shortage of funds arising from the performance of the Company's
obligations to settle by delivery of cash or other financial assets. Liquidity risk may arise from the inability
to sell financial assets at fair value as quickly as possible or from the failure of the other party to repay its
contractual obligations or from debts maturing early or from the failure to generate the desired cash flow.In order to control this risk the Company maintains a balance between continuity of funding and
flexibility using several financing methods such as notes settlement and bank borrowings and by
optimizing the financing structure through the combination of long and short-term financing. The
Company has obtained bank lines of credit from a number of commercial banks to meet working capital
requirements and capital expenditure.Classification of financial assets by the remaining maturity
Unit: Yuan Currency: RMB
Closing balance
Item Carrying value Contract amount Within 1 year 1-3 years Over 3 years
before discount
Bank
170828269.88176315671.7562098649.6116677856.8997539165.25
borrowings
Accounts
556386054.84552714631.66552714631.66
payable
Other payables 177670629.68 177641845.59 177641845.59
Current portion
of non-current 17061706.54 18601479.95 18601479.95
liabilities
Lease
34984527.4438225299.3931652781.536572517.86
liabilities
Long-term
38189757.1153168420.503600000.0049568420.50
payables
Sub-total 995120945.49 1016667348.84 814656606.81 48330638.42 153680103.61
(Continued)
Closing balance of the previous year
Item Carrying value Contract amount Within 1 year 1-3 years Over 3 years
before discount
Bank
406482379.81423546817.44194009340.75163120828.1266416648.57
borrowings
Accounts
503758715.18503758715.18503758715.18
payable
Other
170804176.79170804176.79170804176.79
payables
200 / 2442022 Annual Report
Current
portion of
154496614.61160966349.12160966349.12
non-current
liabilities
Lease
23298204.0524699694.6217191767.517507927.11
liabilities
Sub-total 1258840090.44 1283775753.15 1029538581.84 180312595.63 73924575.68
(III) Market risk
Market risk is the risk that the fair value or the future cash flows of a financial instrument will
fluctuate due to changes in market prices. Market risk mainly includes interest rate risk and foreign
exchange risk.
1. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate due to changes in market interest rates. Interest-bearing financial instruments with a fixed interest
rate expose the Company to fair value interest risk while interest-bearing financial instruments with
variable interest rates expose the Company to cash flow interest rate. The Company determines the
proportion of fixed-rate and variable-rate financial instruments based on market conditions and maintains
an appropriate portfolio of financial instruments through regular review and monitoring. The Company's
cash flow interest risk is primarily related to its bank borrowings at variable interest rates.As of December 31 2022 the Company's bank borrowings at floating interest rates amounted to
RMB113182525.5 (as of December 31 2021: RMB371163804.59). Assuming that other variables
remain constant a 50 bps change in the interest rate will not have a material impact on the Company's
total profit and shareholders' equity.
2. Foreign exchange risk
Foreign exchange risk is the risk that the fair value or the future cash flows of a financial instrument
will fluctuate due to changes in exchange rates. The Company's foreign currency risk is primarily related
to monetary assets and liabilities in foreign currencies. When a short-term imbalance between foreign
currency assets and liabilities the Company may trade foreign currency at the market exchange rate when
necessary to keep the net risk exposure at an acceptable level.The Company’s monetary assets and liabilities in foreign currencies at the end of the period are
detailed in Note VII.82 to the financial statements.XI. Disclosure of Fair Value
1. Closing fair values of assets and liabilities at fair value
□Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing fair value
Level I Level II Level III
Item
measurement at measurement at measurement at Total
fair value fair value fair value
I. Continuous fair value
measurement
201 / 2442022 Annual Report
(I) Held-for-trading
1473209825.721520344691.511036612647.154030167164.38
financial assets
1. Financial assets
1473209825.721520344691.511036612647.154030167164.38
measured at FVTPL
(1) Debt instrument
investments
(2) Equity instrument
347125985.80231760967.641036612647.151615499600.59
investments
(3) Derivative financial
assets
(4) Others 1126083839.92 1288583723.87 2414667563.79
(II) Other debt
35020859.5835020859.58
investments
Total assets
continuously measured 1508230685.30 1520344691.51 1036612647.15 4065188023.96
at fair value
2. Basis for recognition of market prices for continuous and non-continuous level I measurement
items at fair value
√Applicable □Not Applicable
The Company recognizes the fair value based on unadjusted quoted prices in active markets for
identical assets or liabilities that are available on the measurement date.
3. Qualitative and quantitative information on the valuation techniques and significant
parameters used for continuous and non-continuous level II measurement items at fair value
√Applicable □Not Applicable
The Company recognizes the fair value based on similar quoted prices of assets and liabilities in
active markets the same or similar quoted prices of assets and liabilities in non-active markets and
observable interest rate curves and return curves during the normal quoting intervals.
4. Qualitative and quantitative information on the valuation techniques and significant
parameters used for continuous and non-continuous level III measurement items at fair value
√Applicable □Not Applicable
The Company recognizes the fair value by specific valuation techniques on the measurement date
and the important parameters adopted include interest rates that cannot be directly observed or verified by
observable market data.
5. Reconciliation information between opening and closing carrying amounts and sensitivity
analysis of unobservable parameters for continuous level III measurement items at fair value
□Applicable √Not Applicable
6. Reasons for conversion and policy for determining the timing of conversion for items that are
continuously measured at fair value and converted between levels during the period
□Applicable √Not Applicable
7. Changes in valuation techniques during the period and reasons
□Applicable √Not Applicable
202 / 2442022 Annual Report
8. Fair value of financial assets and financial liabilities not measured at fair value
□Applicable √Not Applicable
9. Others
□Applicable √Not Applicable
XII. Related Party and Related Party Transactions
1. Information of the parent company
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Shareholding Voting right
Name of parent Place of Nature of Registered percentage of the percentage of the
company registration business capital parent company in parent company in
the Company (%) the Company (%)
Hangzhou Hundsun
Industrial
Electronics Group Hangzhou 5000 20.72 20.72
investment
Co. Ltd. [Note 14]
Information of the parent company
[Note 14] For details of the ultimate controlling party of the Company please refer to Note XV 4(1) to
the financial statements.
2. Subsidiaries of the Company
The information on the Company's subsidiaries is detailed in the Notes.√Applicable □Not Applicable
For details of subsidiaries of the Company please refer to Note IX to the financial statements.
3. Joint ventures and associates of the Company
The information on the Company's significant joint ventures and associates is detailed in the Notes.√Applicable □Not Applicable
Other joint ventures or associates with which the Company had related party transactions during the
period or in prior periods that resulted in balances are as follows:
√Applicable □Not Applicable
Name of joint ventures or associates Relationship with the Company
Databaker (Beijing) Technology Co. Ltd. (hereinafter referred to
Associate
as Databaker Technology)
Jiangxi Lianjiaoyun Registration and Settlement Center Co. Ltd.Associate
(hereinafter referred to as Jiangxi Lianjiaoyun)
Zhejiang Baiying Technology Co. Ltd. (hereinafter referred to as
Associate
Baiying Technology)
Zhejiang Santan Technology Co. Ltd. (hereinafter referred to as
Associate
Santan Technology)
Golden State Investment Services Co. Ltd.(hereinafter referred to
Associate
as Golden State Investment)
Fujian Trading Market Registration and Settlement Center Co.Ltd. Associate
(hereinafter referred to as Fujian Settlement Center)
Hangzhou Hundsun Yuntai Network Technology Co. Ltd.Associate
(hereinafter referred to as Hundsun Yuntai)
Hangzhou Baiyong Shiji Technology Co. Ltd (hereinafter
Associate
referred to as Hangzhou Baiyong)
Hangzhou Wanming Digital Technology Co. Ltd.(hereinafter
Associate
referred to as Wanming Technology)
Shanghai Yitongtou Technology Co. Ltd. (hereinafter referred to
Associate
as Shanghai Yitong)
Cloud Financing Network Associate
203 / 2442022 Annual Report
Shenzhen Ricequant Associate
Hangzhou HISOME Digital Equipment Technology Co. Ltd.Associate
(hereinafter referred to as Hangzhou HISOME Digital)
Hangzhou Rongdu Science & Technology Co. Ltd. (hereinafter
Associate
referred to as Rongdu Science & Technology)
Other Description
□Applicable √Not Applicable
4. Other related parties
√Applicable □Not Applicable
Name of other related parties Relationship with the Company
Ant Group Co. Ltd. [Note 15] Others
Alibaba Cloud Computing Co. Ltd. (hereinafter referred to as Alibaba
Others
Cloud) [Note 16]
Alibaba (China) Network Technology Co. Ltd.Others
(hereinafter referred to as Alibaba (China)) [Note 16]
Taobao (China) Software Co. Ltd. (hereinafter referred to as Taobao
Others
Software) [Note 16]
Alibaba Cloud (Singapore) Private Limited
Others
(hereinafter referred to as Alibaba Cloud (Singapore)) [Note 16]
Ant Fortune (Shanghai) Financial Information Services Co. Ltd.Others
(hereinafter referred to as Ant Fortune (Shanghai)) [Note 17]
Ant Yunchuang Digital Technology (Beijing) Co. Ltd.Others
(hereinafter referred to as Ant Yunchuang) [Note 17]
Ant Blockchain Technology (Shanghai) Co. Ltd.Others
(hereinafter referred to as Ant Blockchain) [Note 17]
Alipay (China) Network Technology Co. Ltd.Others
(hereinafter referred to as Alipay (China)) [Note 17]
Tianhong Asset Management Co. Ltd. (hereinafter referred to as
Others
Tianhong Asset) [Note 17]
Hangzhou Ant Shangshu information technology Co. Ltd.Others
(hereinafter referred to as Ant Shangshu) [Note 17]
Beijing OceanBase Technology Co. Ltd.Others
(hereinafter referred to as OceanBase) [Note 17]
Ant Rongxin (Chengdu) Network Technology Co. Ltd.Others
(hereinafter referred to as Ant Rongxin) [Note 17]
Ant Lemaibao (Shanghai) Information Technology Co. Ltd.Others
(hereinafter referred to as Ant Lemaibao) [Note 17]
E-Capital Transfer Co. Ltd. (hereinafter referred to as E-Capital
Others
Transfer) [Note 18]
China Securities Credit Investment Co. Ltd. (hereinafter referred to as
Others
China Securities Credit) [Note 18]
Daocloud Internet Technology Co. Ltd. (hereinafter referred to as
Others
Daocloud Internet) [Note 18]
Xinghuan Information Technology (Shanghai) Stock Co. Ltd.Others
(hereinafter referred to as Xinghuan Information) [Note 18]
Hangzhou Utry Technology Co. Ltd. (hereinafter referred to as
Others
Hangzhou Utry) [Note 18]
Zhejiang E-Commerce Bank Co. Ltd. (hereinafter referred to as E-
Others
Commerce Bank) [Note 19]
Tianjin Financial Assets Exchange Co. Ltd.Others
(hereinafter referred to as Tianjin Financial Assets Exchange) [Note 19]
ZhongAn Online P&C Insurance Co. Ltd.Others
(hereinafter referred to as ZhongAn Online) [Note 19]
204 / 2442022 Annual Report
Cathay Insurance Company Limited (hereinafter referred to as Cathay
Others
Insurance) [Note 19]
Trust Mutual Life Insurance Company (hereinafter referred to as Trust
Others
Mutual Life) [Note 19]
Hangzhou Tiangu Information Technology Co. Ltd. (hereinafter
Others
referred to as Hangzhou Tiangu) [Note 20]
Shanghai Suntime Information Technology Co. Ltd.(hereinafter
Others
referred to as Shanghai Suntime) [Note 21]
Golden Beta Network Fintech (Shenzhen) Co. Ltd.(hereinafter referred
Others
to as Golden Beta) [Note 22]
Ping An Bank Co. Ltd. (hereinafter referred to as Ping An Bank) [Note
Others
23]
Jiang Jiansheng Chen Zhijie Peng Zhenggang Liu Shufeng Wang
Xiangyao Liu Xiaolun Ding Wei Zhou Chun Han Xinyi Zhu Chao
Ji Gang Yu Bin Xie Lijuan Fan Jingwu Guan Xiaolan Ni Shouqi Others
Zhang Guoqiang Zhang Yong Wang Feng Zhou Feng Yao Manying
Tu Haiyan Bai Shuo Han Haichao and Fang Xiaoming [Note 24]
[Note 15] The largest shareholder indirectly holding shares of the Company
[Note 16] An entity having a significant influence on the largest shareholder indirectly holding shares of
the Company
[Note 17] A company controlled by the largest shareholder indirectly holding shares of the Company
[Note 18] A company holding non-controlling interests in the Company
[Note 19] A company of which Han Xinyi is a director including Tianjin Financial Assets Exchange
where Han Xinyi served as a director during the Reporting Period.[Note 20] Ji Gang served as Director or Senior Executive
[Note 21] Zhu Chao served as Director or Senior Executive
[Note 22] Chen Zhijie serves as Director
[Note 23] Guo Tianyong the former independent director served as the independent director
[Note 24] Directors Supervisors and Senior Management
5. Related party transactions
(1). Related party transactions for the purchase and sale of goods and provision and receipt of
services
Purchase of goods / receipt of services
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Whether
Approved
Amount exceed the Amount
Content of related transaction
Related parties incurred in the transaction incurred in the
party transaction limits (if
current period limits (if previous period
applicable)
applicable)
Alibaba Cloud Purchase of goods and 45587349.71 35976749.11
receipt of services
Daocloud Internet Purchase of goods and 1058498.50 1118584.08
receipt of services
Trust Mutual Life Purchase of goods 1321698.10
Baijin Technology Purchase of goods and 639150.94
receipt of services
Alibaba (China) Receipt of services 338314.82 611877.93
Databaker Purchase of goods 246460.18 200547.67
Technology
Cloud Financing Purchase of goods 75221.24 2903092.06
Network
E-Capital Transfer Receipt of services 10377.36
205 / 2442022 Annual Report
Ant Yunchuang Purchase of goods and -182771.87
receipt of services
Rongdu Science & Purchase of goods and 76839.90
Technology receipt of services
Ant Blockchain Purchase of goods 60411.99
Xinghuan Receipt of services 94339.62
Information
Hangzhou Utry Receipt of services 45480.00
Alibaba Cloud Receipt of services 227559.86
(Singapore)
Sub-total 49277070.85 41132710.35
Sale of goods and provision of services
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Content of related party Amount incurred in the Amount incurred in the
Related parties
transaction current period previous period
Tianhong Asset Software services 22066465.39 20946411.80
Ant Fortune (Shanghai) Software services 11773867.78 7573967.78
E-Capital Transfer Software services 3323773.59
Shanghai Yitong Software services 2706401.23
Ant Blockchain Software services 4984083.99 13988679.25
Golden Beta Software services 1886792.36
Ant Fund Software services 1548720.61
ZhongAn Online Software services 1518706.65 1860505.27
Golden State Investment Software services 1174708.43 3981614.06
Jiangxi Lianjiaoyun Software services 1014749.14 2156653.79
Ant Shangshu Software services 924528.28 688806.03
Ant Rongxin Software services 1014150.94
Alibaba Cloud Software services 719105.36 3258406.61
Shenzhen Ricequant Software services 601364.98 573704.19
Trust Mutual Life Software services 496607.58 3472851.58
Cathay Insurance Software services 433962.30 264498.08
E-Commerce Bank Software services 437055.11 4148406.24
Shanghai Suntime Software services 408804.93
Santan Technology Software services 225818.76 1178108.04
Ant Lemaibao Software services 158490.56 713207.56
Hundsun Yuntai Software services 123250.12 18259.28
Taobao (China) Software Software services 23584.90 308018.80
Hangzhou Tiangu Software services 23584.90
Shenzhen Tradeblazer Workplace and property 9433.96 94339.62
management fee etc.Hangzhou HISOME Software services 4528.30
Digital
Cloud Financing Network Software services 952.29 282352.53
Alipay (China) Software services and sales 5040898.42
of outsourced goods
Fujian Settlement Center Software services -35575.23
China Securities Credit Software services 352915.26
Tianjin Financial Assets Software services 396226.41
Exchange
Ant Yunchuang Software services 1179490.45
Hangzhou Baiyong Workplace and property 68389.86
management fee etc.Ping An Bank Software services 9779663.21
206 / 2442022 Annual Report
Baijin Technology Software services 9539.17
OceanBase Software services 283018.87
Hangzhou Utry Software services 64655.17
Sub-total 57603492.44 82648012.10
Related party transactions for the purchase and sale of goods and provision and receipt of services
□Applicable √Not Applicable
(2). Related entrusted management/contracting and entrusting management/outsourcing
The Company's Entrusted management/contracting:
□Applicable √Not Applicable
Related entrusting/contracting
□Applicable √Not Applicable
The Company's entrusting management/outsourcing
□Applicable √Not Applicable
Related management/outsourcing
□Applicable √Not Applicable
(3). Related party leases
The Company as the lessor:
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Lease income recognized Lease income recognized in
Name of lessee Type of asset leased
in the current period the previous period
Santan Technology Buildings 1248648.65 1559633.03
Hangzhou HISOME
Buildings 251146.79
Digital
Hundsun Electronics
Buildings 66055.05 66055.05
Charity Foundation
The Company as the lessee:
□Applicable √Not Applicable
Related party leases
□Applicable √Not Applicable
207 / 2442022 Annual Report
(4). Related party guarantees
The Company as the guarantor
□Applicable √Not Applicable
The Company as the guarantee
□Applicable √Not Applicable
Related party guarantees
□Applicable √Not Applicable
(5). Loans and borrowings from/to related parties
□Applicable √Not Applicable
(6). Asset transfer and debt restructuring of related parties
□Applicable √Not Applicable
(7). Remuneration of key management personnel
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Amount incurred in the
Item Amount incurred in the current period
previous period
Remuneration of key management 6534.03 4569.88
personnel
[Note 25] The remuneration of Senior Management in 2022 was RMB68068319.90 and the
difference between the annual bonus of Senior Management accrued in 2021 after adjustment and the
actual amount paid was RMB2728000.00.
(8). Other related party transactions
□Applicable √Not Applicable
6. Receivables and payables of related parties
(1). Receivables
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Related parties Allowance for Allowance for
Book balance Book balance
bad debts bad debts
Accounts Ant Fortune 4546300.00 227315.00 465406.00 23270.30
receivable (Shanghai)
Accounts Santan Technology 1407849.21 89488.76 536587.87 72088.13
receivable
Accounts Jiangxi Lianjiaoyun 1065476.29 53273.81 230404.73 11520.24
receivable
Accounts Cloud Financing 292131.08 290162.64 291121.64 87056.08
receivable Network
Accounts Tianjin Financial 757000.00 380727.46 715000.00 118393.56
receivable Assets Exchange
Accounts Ant Fund 488369.95 258808.30 246726.11 246726.11
receivable
Accounts Alibaba Cloud 2788550.00 242837.80 2068205.91 103410.30
receivable
Accounts Alipay (China) 967002.69 48350.13 3206936.84 340601.84
receivable
Accounts Ant Blockchain 5925129.04 402246.45 6159800.00 307990.00
receivable
208 / 2442022 Annual Report
Accounts Tianhong Asset 3178465.60 434848.12 1928184.07 370579.20
receivable
Accounts E-Capital Transfer 1352000.00 1352000.00 1352000.00 1352000.00
receivable
Accounts Ping An Bank 3688522.22 244570.40
receivable
Accounts Ant Shangshu 200134.41 10006.72 400134.41 20006.72
receivable
Accounts OceanBase 50000.00 2500.00
receivable
Accounts Trust Mutual Life 67612.18 3380.61
receivable
Accounts ZhongAn Online 643064.59 32153.23 385411.90 19270.60
receivable
Accounts Ant Lemaibao 192000.00 9600.00
receivable
Accounts Golden State 475342.47 23767.12
receivable Investment
Accounts Ant Rongxin 645000.00 32250.00
receivable
Accounts Alibaba (China) 30579.00 30579.00
receivable
Accounts E-Commerce Bank 163548.40 8177.42
receivable
Prepayments Alibaba Cloud 298022.08 298022.08
Prepayments Ant Yunchuang 12679.84
Prepayments Alibaba (China) 366172.31
Other Ant Fund 112950.80 112950.80
receivables
Other Ant Yunchuang 50.00 5.00
receivables
Other Alibaba Cloud 365289.17 33678.92 353669.73 19583.49
receivables
Other Alipay (China) 2.08 0.10 2.75 0.14
receivables
Other Baijin Technology 50000.00 5000.00
receivables
Other Alibaba (China) 428481.48 42848.15 428481.48 21424.07
receivables
Contract assets Ant Blockchain 637000.00 31850.00
Contract assets Ping An Bank 145000.00 14500.00
Tianjin Financial 42000.00 2100.00
Contract assets
Assets Exchange
Contract assets Alibaba Cloud 270000.00 13500.00
Contract assets E-Commerce Bank 259840.00 12992.00
Sub-total 26654737.54 4025369.13 24322922.87 3535019.59
(2). Payables
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Related parties Closing book balance Opening book balance
Accounts payable Alibaba Cloud 10038724.67 5776721.11
Cloud Financing 1332364.33 1332364.33
Accounts payable
Network
209 / 2442022 Annual Report
Accounts payable Ant Yunchuang 53445.93 53445.93
Rongdu Science & 76839.90
Accounts payable
Technology
Accounts payable Xinghuan Information 76000.00
Accounts payable E-Capital Transfer 72000.00 154734.01
Accounts payable Databaker Technology 351430.00 153385.00
Accounts payable Daocloud Internet 1981966.94 2449552.94
Accounts payable Ant Blockchain 102603.77 60411.99
Accounts payable Baijin Technology 54000.00
Accounts payable Santan Technology
Accounts payable Alibaba (China) 402891.84
Contract liabilities Tianhong Asset 9985182.53 11959504.82
Golden State 2344774.82 326316.66
Contract liabilities
Investment
Contract liabilities E-Capital Transfer 3233977.13
Contract liabilities China Securities Credit 148918.38
Contract liabilities Shenzhen Ricequant 342823.84 307585.39
Contract liabilities Santan Technology 67944.92 69302.13
Tianjin Financial Assets 1825603.61 1862070.28
Contract liabilities
Exchange
Contract liabilities Ant Blockchain 1542139.62 1113189.60
Contract liabilities Jiangxi Lianjiaoyun 1309.05 1387.59
Contract liabilities ZhongAn Online 60294.65
Contract liabilities Ping An Bank 2311314.79
Taobao (China) 23584.91
Contract liabilities
Software
Contract liabilities Ant Rongxin 304245.28
Contract liabilities Wanming Technology 38339.06
Contract liabilities Alibaba Cloud 2968681.46 1976625.33
Contract liabilities Hundsun Yuntai 18462.57 138751.74
Contract liabilities Shanghai Yitong 23970.63 1835.82
Contract liabilities Trust Mutual Life 197547.68 281071.25
Contract liabilities Alipay (China) 275254.87
Contract liabilities Cathay Insurance 305292.14
Contract liabilities E-Commerce Bank 1025923.35
Contract liabilities Shanghai Suntime 49528.30
Contract liabilities Golden Beta 664434.97
Other payables Alibaba Cloud 49235.99
Hangzhou HISOME 182500.00
Other payables
Digital
Advances from Hangzhou HISOME 255675.09
customers Digital
Sub-total 36251516.71 34555966.23
7. Commitments by related parties
□Applicable √Not Applicable
8. Others
□Applicable √Not Applicable
XIII. Share-based payment
1. Share-based payment
√Applicable □Not Applicable
210 / 2442022 Annual Report
Unit: Yuan Currency: RMB
Ownership Scheme for Key Employees
Item Subscribing Shares of Innovative Stock options in 2022
Business Subsidiaries
Total number of various equity 7521400 16660000
instruments of the Company granted
in the current period
Total number of various equity 4137687
instruments of the Company
exercised in the current period
Total number of various equity 496240
instruments of the Company lapsed
in the current period
Scope of the exercise price of the The exercise price of Yunhan's stock The grant price was RMB
outstanding share options of the options would be the cost plus the 34.88/share. The vesting
Company with the remaining term of annualized interest rate with them being periods for the initial grant
the contract at the end of the period exercisable over three to four years from from the date of grant to the
the date of grant; the exercise price of vesting date of the stock
Shanghai Gildata's stock options would options would be 12 months
be RMB1.95 initially RMB2.73 from 24 months and 36 months
the first grant to the third grant and respectively. The vesting
RMB4.905 between the fifth grant and periods for reserved stock
sixth grant with them being exercisable options would be 12 months
over three years from the date of grant; and 24 months respectively
the exercise price of Hangzhou Business from the date of granting the
Intelligence's stock options would be reserved stock options
RMB2.65 initially with them being
exercisable over three years from the date
of grant; the exercise price of Hundsun
iBontal's stock options would be
RMB1.2375 with them being
exercisable over three years from the date
of granting; the exercise price of
Hundsun Holdings' stock options would
be HK$5.34 with them being exercisable
over three years from the date of grant;
the exercise price of Xunchang Wendao's
stock options is RMB1 with them being
exercisable over three years from the date
of grant.Scope of exercise Price of other The exercise price of Yunhan stock
outstanding equity instruments of the appreciation rights (SAR) is RMB1 per
Company and remaining term of the share which shall be exercised in three to
contract at the end of the period five years from the grant date right. The
exercise price of Shanghai Gildata's
initial SARs is RMB1.95 and that of
other SARs is RMB2.73 and the exercise
price of the fifth vesting period and sixth
vesting period is RMB8.829 which shall
be exercised in three years from the grant
date.Unit: share Currency: RMB
Item Employee Stock Ownership Scheme
Total number of various equity instruments of the 1642500
Company granted in the current period
211 / 2442022 Annual Report
Total number of various equity instruments of the 3123240
Company exercised in the current period
Total number of various equity instruments of the 269200
Company lapsed in the current period
Scope of the exercise price of the outstanding share
options of the Company with the remaining term of the
contract at the end of the period
Scope of exercise Price of other outstanding equity 2020 Employee Stock Ownership Scheme: The grant
instruments of the Company and remaining term of the price is RMB45.32 per share which will be unlocked
contract at the end of the period 12 months 24 months and 36 months from the date
when the last underlying shares are transferred to the
Employee Stock Ownership Scheme as announced by
the Company.
2022 Employee Stock Ownership Scheme: The grant
price is RMB21.5 per share which will be unlocked 12
months 24 months and 36 months from the date when
the last underlying shares are transferred to the
Employee Stock Ownership Scheme as announced by
the Company.Other Description
(1) Ownership Scheme for Key Employees Subscribing Shares of Innovative Business Subsidiaries
According to the Investment and Management Measures of Hundsun's Key Employees Subscribing
Shares of Innovative Business Subsidiaries adopted through deliberation at the 10th meeting of the Fifth
Session of the Board held by the Company on January 27 2014 the Company determined to jointly
establish a "limited partnership" enterprise by the Company and its authorized representatives to manage
and exercise the shares of the innovative business subsidiaries. The different "partnership enterprises" are
required to be set up by "key employees" of different innovation business subsidiaries (full-time key
employees responsible for the management technology and business in innovation subsidiaries) for
making unified investments in subsidiaries while a unified "partnership enterprise" is required to be set
up by the "Key Management" of the Company (including the senior management team and other key
persons working at the headquarters of the Company) for making unified investments in innovative
business subsidiaries. According to the Proposal on Revising the Investment and Management Measures
above adopted through deliberation at the 13th and 21st meetings of the Fifth Session of the Board held
by the Company on July 17 2014 and February 12 2015 respectively the Company determined that there
are three types of employee stock ownership schemes namely share subscription in cash by employees
(contribution by employees to establish partnership enterprises) investment share option and SAR.According to the resolution of the 13th meeting of the Fifth Session of the Board held by the Company
on July 17 2014 the Company and its "Key Management" and "key employees of subsidiaries" jointly
invested in the establishment of Yunhan Yunxia Yunyin Yunjin Yunqin Yunming Yuntang Yunwei
Yunshu Yunwu and Yunsong. According to the Resolution on the Establishment of Eight New Employee
Stock Ownership Platforms (Hundsun Executive Committee 2016 No. 011) issued by the Company's
Executive Committee of Stock Ownership Plan Management in August 2016 the Company and Hangzhou
Yunhui a wholly-owned subsidiary established Yunchu Yunliao Yunqi Yuncao Yunhan Yunzhou
Yunliang and Yunzheng. According to the resolution of the 12th meeting of the Sixth Session of the Board
212 / 2442022 Annual Report
on April 25 2017 the Company and Hangzhou Yunhui a wholly-owned subsidiary established Shanyi
Shandu Shangui Shanying (formerly known as Shanyu) Shanzhao Shanlu Shanyu Shanlun and Shanru
(as of December 31 2022 Shanyi Shandu and Shanru had not completed the registration procedures for
industrial and commercial establishment). According to the resolutions of the 5th 15th and 18th meetings
of the Sixth Session of the Board the Company and Hangzhou Yunhui a wholly-owned subsidiary
established Yunyue Shanzhi and Shanjing. With the advancement of the Employee Stock Ownership
Scheme the shares held by the Company in the above employee stock ownership platforms had been
transferred to relevant employees gradually.
(2) 2020 Employee Stock Ownership Scheme
According to the Proposal on Hundsun's 2020 Employee Stock Ownership Scheme (Draft) and its
Summary and the Proposal on Hundsun's Management Measures for 2020 Employee Stock Ownership
Scheme adopted through deliberation at the Company's 15th board meeting of the Fifth Session of the
Board held on December 8 2020 and the third extraordinary general meeting of 2020 held on December
25 2020 Company the Company proposed to repurchase some shares of the public with its own funds
through call auction trading for its Employee Stock Ownership Scheme. As of June 25 2021 the Company
had transferred 7979300 shares to its account under the 2020 Employee Stock Ownership Scheme
through non-trade transfer at a price of RMB45.32 per share. At this point the Company completed the
non-trading transfer of all shares under the 2020 Employee Stock Ownership Scheme. According to the
provisions of the 2020 Employee Stock Ownership Scheme (Draft) of Hundsun Technologies Inc. the
underlying shares acquired under the Scheme would be released from restrictions during three periods
i.e. 12 months 24 months and 36 months from the date of transfer of the last underlying shares announced
by the Company to the Scheme; the proportion of underlying shares released from restrictions during each
period would be 40% 30% and 30% respectively.Under the 2020 Employee Stock Ownership Scheme the Company will conduct individual
performance appraisal based on its own performance appraisal system from 2021 to 2023 and determine
the final number of underlying shares to be unlocked for the shareholder based on the results of individual
performance appraisal as follows.Appraisal results A B C D
Individual unlocking
100%100%50%0%
factor
The actual number of shares for individuals are unlocked based on the appraisal results of the previous
year. Based on the shareholder's individual appraisal results the actual number of shares to be unlocked
in the current period = the number of shares granted for the current period × individual unlocking factor.The underlying shares corresponding to the actual number of shares to be unlocked in the current period
shall be sold collectively by the Management Committee in a proper manner at its discretion after the
expiration of the lock-up period and the remaining earnings from the sale of shares net of relevant taxes
and fees shall be distributed to the shareholders in accordance with the provisions of the Scheme.If the individual appraisal result in the first or second year is Grade C the shareholder's shares to be
unlocked in the current period will be deferred to the next year accordingly and will be unlocked in the
213 / 2442022 Annual Report
next year when the individual appraisal result reaches Grade B or above in corresponding proportion. If
the individual appraisal result in the next year is still Grade C the shareholder's shares that cannot be
unlocked will be recovered by the Management Committee of the Employee Stock Ownership Scheme in
accordance with appropriate provisions. If the individual appraisal result in the third year is Grade C the
shareholder's share that cannot be unlocked in the current period shall be recovered by the Management
Committee of the Employee Stock Ownership Scheme in accordance with appropriate provisions. If the
individual appraisal result is Grade D the shareholder's share that cannot be unlocked in the current period
shall be recovered by the Management Committee of the Employee Stock Ownership Scheme in
accordance with appropriate provisions. The Management Committee has the right to recover the unlocked
interests and shares under the Scheme at a price determined by the original contribution amount or the net
value (whichever is lower) of the underlying shares to which the shares correspond.On June 28 2022 performance appraisal indicators under the 2020 Employee Stock Ownership
Scheme met the conditions for releasing the first restricted shares from restrictions and during the
Reporting Period 40% of the first restricted shares so released by the Company were exercised.
(3) 2022 Employee Stock Ownership Scheme
According to the Proposal on the 2022 Employee Stock Ownership Scheme (Draft) of Hundsun
Technologies Inc. and Its Summary the Proposal on the Management Measures for 2022 Employee Stock
Ownership Scheme of Hundsun Technologies Inc. and other proposals adopted through deliberation at the
3rd meeting of the Eighth Board of Directors held by the Company on July 1 2022 and the Second
Extraordinary Shareholders' General Meeting for 2022 held on July 19 2022 the Company intended to
use the shares repurchased by the special securities repurchase account for the Scheme. As of July 27
2022 the Company had transferred 1642500 shares to its account under the 2022 Employee Stock
Ownership Scheme through non-trade transfer at a price of RMB21.50 per share. At this point the
Company completed the non-trading transfer of all shares under the 2022 Employee Stock Ownership
Scheme. According to the provisions of the 2022 Employee Stock Ownership Scheme (Draft) of Hundsun
Technologies Inc. the underlying shares acquired under the Scheme would be released from restrictions
during three periods i.e. 12 months 24 months and 36 months from the date of transfer of the last
underlying shares announced by the Company to the Scheme; the proportion of underlying shares released
from restrictions during each period would be 30% 30% and 40% respectively.Under the 2022 Employee Stock Ownership Scheme the Company will conduct individual
performance appraisal based on its own performance appraisal system from 2022 to 2024 and determine
the final number of underlying shares to be unlocked for the shareholder based on the results of individual
performance appraisal as follows.Appraisal results A B C D
Individual unlocking 100% 100% 50% 0%
factor
The actual number of shares for individuals are unlocked based on the appraisal results of the previous
year. Based on the shareholder's individual appraisal results the actual number of shares to be unlocked
in the current period = the number of shares granted × unlocked proportion in the current period ×
214 / 2442022 Annual Report
individual unlocking factor. The underlying shares corresponding to the actual number of shares to be
unlocked in the current period shall be sold collectively by the Management Committee in a proper manner
at its discretion after the expiration of the lock-up period and the remaining earnings from the sale of
shares net of relevant taxes and fees shall be distributed to the shareholders in accordance with the
provisions of the Scheme. If the individual appraisal result in the first or second year is Grade C the
shareholder's shares to be unlocked in the current period will be deferred to the next year accordingly and
will be unlocked in the next year when the individual appraisal result reaches Grade B or above in
corresponding proportion. If the individual appraisal result in the next year is still Grade C the
shareholder's shares that cannot be unlocked will be recovered by the Management Committee of the
Employee Stock Ownership Scheme in accordance with appropriate provisions. If the individual appraisal
result in the third year is Grade C the shareholder's share that cannot be unlocked in the current period
shall be recovered by the Management Committee of the Employee Stock Ownership Scheme in
accordance with appropriate provisions. If the individual appraisal result is Grade D the shareholder's
share that cannot be unlocked in the current period shall be recovered by the Management Committee of
the Employee Stock Ownership Scheme in accordance with appropriate provisions. The Management
Committee has the right to recover the unreleased interests and shares under the Scheme at a price
determined by the original contribution amount of the underlying shares corresponding to the shares or
the corresponding value after the Management Committee actually disposes of (or sells) the underlying
shares corresponding to the shares (whichever is lower).
(4) 2022 Employee Stock Option Plan
According to the Proposal on the 2022 Stock Option Incentive Plan (Draft) of Hundsun Technologies
Inc. and Its Summary and the Proposal on the Assessment and Management Measures for Performance
Evaluation under the 2022 Stock Option Incentive Plan of Hundsun Technologies Inc. and other related
proposals adopted through deliberation at the 4th meeting of the Eighth Board of Directors held by the
Company on August 24 2022 and the Third Extraordinary Shareholders' General Meeting for 2022 held
on September 13 2022 the Company intended to issue A-share ordinary shares to the participants under
the Plan with an exercise price of RMB34.88 per share.
1) Stock options initially granted
As of October 12 2022 the Company had completed the registration of 16660000 stock options
initially granted under the Plan. According to the provisions of the 2022 Stock Option Incentive Plan
(Draft) of Hundsun Technologies Inc. the vesting periods for stock options initially granted under the Plan
would be 12 months 24 months and 36 months from the date of grant to the vesting date of the stock
options; the proportion of underlying shares released from restrictions during each vesting period would
be 30% 30% and 40% respectively.The stock options initially granted will be subject to performance evaluation once every fiscal year
from 2022 to 2024. The annual performance evaluation targets for the stock options initially granted are
shown in the following table:
Exercise period Assessment year Based on the Company's revenue in the previous performance
215 / 2442022 Annual Report
evaluation year
Growth rate of operating revenue (A) as performance evaluation
value
Target (Am) Median (An) Trigger (Ao)
First exercise period 2022 15% 8% 0%
Second exercise
202315%8%0%
period
Third exercise
202415%8%0%
period
According to the completion of the performance evaluation at the Company level the exercise ratio
at the Company level is shown in the following table:
Completion of A≥Am Am>A≥An An>A>Ao A≤Ao
performance evaluation
(A)
Company-level exercise 100% 85% 70% 0%
ratio (X)
The individual incentive performance of the participants under the Plan will be graded as A B C+
C C- and D. The performance evaluation form will be applicable to the individuals whose performance
will be evaluated. The exercise ratio of the plan participants will then be determined in accordance with
the following table:
Incentive performance A B C+ C C- D
grade
Individual-level exercise 100% 100% 70% 50% 30% 0%
ratio (Y)
Individual's actual exercise limit in the current year = company-level exercise ratio (X) × individual-
level exercise ratio (Y) × individual's planned exercise limit in the current year. The participants under the
Plan will exercise options according to the actual exercise limit in the current year and the stock options
that cannot be exercised in the performance evaluation year will be canceled by the Company.
2) Stock options reserved for grant
As of December 31 2022 the reserved share options had not been granted. According to the
provisions of the 2022 Stock Option Incentive Plan (Draft) of Hundsun Technologies Inc. the vesting
periods for the reserved stock options granted under the Plan would be 12 months and 24 months from the
date of grant to the vesting date of the stock options; the proportion of underlying shares released from
restrictions during each vesting period would be 50% and 50% respectively.The stock options reserved for grant will be subject to once every fiscal year from 2023 to 2024. The
annual performance evaluation targets for the stock options reserved for grants are shown in the following
table:
Based on the Company's revenue in the previous performance
evaluation year
Exercise period Assessment year Growth rate of operating revenue (A) as performance evaluation
value
Target (Am) Median (An) Trigger (Ao)
First exercise period 2023 15% 8% 0%
Second exercise
202415%8%0%
period
216 / 2442022 Annual Report
According to the completion of the performance evaluation at the Company level the exercise ratio
at the Company level is shown in the following table:
Completion of performance A≥Am Am>A≥An An>A>Ao A≤Ao
evaluation (A)
Company-level exercise ratio 100% 85% 70% 0%
(X)
The individual incentive performance of the participants under the Plan will be graded as A B C+
C C- and D. The performance evaluation form will be applicable to the individuals whose performance
will be evaluated. The exercise ratio of the plan participants will then be determined in accordance with
the following table:
Incentive performance A B C+ C C- D
grade
Individual-level exercise 100% 100% 70% 50% 30% 0%
ratio (Y)
Individual's actual exercise limit in the current year = company-level exercise ratio (X) × individual-
level exercise ratio (Y) × individual's planned exercise limit in the current year. The participants under the
Plan will exercise options according to the actual exercise limit in the current year and the stock options
that cannot be exercised in the performance evaluation year will be canceled by the Company.
2. Equity-settled share-based payment
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Key Employees
Participating in Employee
Stock Ownership Employee Stock
Stock options in 2022
Schemes Ownership Scheme
of Innovative Business
Subsidiaries
When there are external
investors at the time of
Recognition method for the grant the investment price
Share price on the
fair value of equity shall be adopted and the Black-Scholes Model
grant date
instruments on the grant date fair price is calculated
when there are no external
investors
Based on the limit of Based on the number Based on the number of
warrants granted the of shares granted the shares granted the number
Company number of exercisable of exercisable equity
comprehensively equity instruments is instruments is determined
Basis for determining the considers the number of determined by taking by taking into account the
number of exercisable equity employees with vesting into account the changes in the number of
instruments conditions on each changes in the number employees with vesting
balance sheet date its of employees with conditions on each balance
performance appraisal vesting conditions on sheet date the performance
indicators and the each balance sheet date in the overall Company
individual performance and the individual and the individual
217 / 2442022 Annual Report
appraisal results of each performance appraisal performance appraisal
grantee in each year with results in each year results in each year with
vesting conditions with vesting vesting conditions
conditions
Reasons for significant
differences between current
estimates and previous
estimates
Aggregate amount of equity-
settled share-based payment 80632683.19 250181787.60 11221356.80
charged to the capital reserve
Total expenses recognized by
equity-settled share-based 4047919.41 144776186.21 11382055.32
payment in the current period
3. Cash-settled share-based payment
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Recognition method for the fair value of liabilities
assumed by the enterprise and calculated and Appraisal price
recognized based on shares or other equity instruments
Aggregate liabilities arising from cash-settled share-
39269292.46
based payments in liabilities
Total expenses recognized for cash-settled share-based
4204640.71
payments in the current period
Gain from changes in the fair value recognized for
-8011316.29
cash-settled share-based payment liabilities
Other Description
(1) According to the relevant provisions of the Accounting Standard for Business Enterprises No. 22
- Recognition and Measurement of Financial Instruments regarding the recognition of fair value the
Company will measure the fair value of share appreciation rights granted under the share incentive scheme
at the appraisal price on each balance sheet date.
(2) The Company's ASRs are exercised in the form of installment cash dividends and repurchases.
When the ASRs are exercised in the form of cash dividends the probability of dividends is estimated to
be 20% based on the future cash inflow of each shareholding platform in the recognition of the fair value
of the liabilities for the Yunhan ASRs.
4. Modification and termination of share-based payment
□Applicable √Not Applicable
5. Others
□Applicable √Not Applicable
XIV. Commitment and Contingencies
1. Significant commitments
√Applicable □Not Applicable
Significant external commitments on the balance sheet date and their nature and amount
218 / 2442022 Annual Report
(1) The Company participated as a limited partner of Costone in the investment in Nanjing Pengxi
Equity Investment Center (L.P.) (hereinafter referred to as Nanjing Pengxi) and proposed to invest
RMB200 million under the partnership contract. Nanjing Pengxi completed the procedures for industrial
and commercial registration of changes on December 24 2020. As of December 31 2022 the Company
had paid RMB120 million for the investment.
(2) Upon discussions at the 23rd meeting of the Seventh Board of Directors of the Company on March
29 2022 the subsidiary Hangzhou Yima as the manager initiated the establishment of the Hundsun Phase
I Software Industrial Fund (i.e. Digital Intelligence Qiyuan). Positioned as a private equity investment
fund mainly investing in growth enterprises in enterprise service software the Industrial Fund aimed to
raise funds of not more than RMB1.2 billion and the Company intended to subscribe for the units of the
fund of not more than RMB350 million. Digital Intelligence Qiyuan completed the establishment
procedures with the industrial and commercial authority on December 1 2021. As of December 31 2022
the Company had paid RMB70 million for the investment.
(3) As a limited partner the Company participated and invested in the Yangtze River Delta Fund
managed by Shanghai Growth-FOF Co. Ltd. as the manager. According to the Limited Partnership
Agreement the Company will subscribe for the units of the Yangtze River Delta Fund of not more than
RMB100 million. The Yangtze River Delta Fund completed the establishment procedures with the
industrial and commercial authority on January 11 2023 and the Company made the investment payment
of RMB25 million in March 2023.
2. Contingencies
(1). Important contingencies on the balance sheet date
√Applicable □Not Applicable
* According to the resolution of the 21st meeting of the Sixth Session of the Board held by the
Company on July 11 2018 the Company dismissed Liao Zhangyong its former Senior Vice President
and Shen Zhiwei its former Vice President and terminated the labor relations with Xu Binshan its
employee on July 16 2018. According to the Notice of Delisting and Employee Stock Ownership Scheme
issued by the Company and the employee stock ownership platforms in August 2018 the Company
decided to delist the above three persons from the employee stock ownership platforms repurchased their
property shares in the employee stock ownership platforms at a net asset price and charged the payment
of RMB7148090.87 for repurchasing the above property shares to other payables. The Company
completed the procedures for industrial and commercial registration of changes for the repurchase in
September 2018 and the outstanding payment for repurchase was RMB7099878.87 as of December 31
2022.
Liao Zhang Yong applied for labor arbitration with Hangzhou Labor and Personnel Dispute
Arbitration Commission on August 5 2019 requiring the Company to pay compensation for the illegal
termination of the labor contract and wage arrears in the amount of RMB1718100. In February 2023 a
civil judgment ([2022] Z01MZ No. 8671) issued by Hangzhou Intermediate People's Court of Zhejiang
Province dismissed all the arbitration claims of Liao Zhangyong.
219 / 2442022 Annual Report
* As of December 31 2022 the balance of the Company's outstanding guarantee was
RMB5622400.00.
(2). A situation statement shall be made in case of no significant contingencies to be disclosed:
□Applicable √Not Applicable
3. Others
□Applicable √Not Applicable
XV. Events After the Balance Sheet Date
1. Important non-adjusting events
□Applicable √Not Applicable
2. Profit distribution
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Profit or dividend to be distributed
According to the Profit Distribution Plan for 2022 adopted at the
7th meeting of the Eighth Board of Directors of the Company on
March 30 2023 the Company proposed to distribute a cash
Profit or dividend declared after approval
dividend of RMB1.30 (tax included) per 10 shares to all
through deliberation
shareholders based on 1898681845 shares which is derived by
subtracting 1324597 shares in the special repurchase account of
the Company from the outstanding 1900006442 shares.
3. Sales return
□Applicable √Not Applicable
4. Notes on other events after the balance sheet date
√Applicable □Not Applicable
(1) On January 7 2023 Mr. Ma Yun and related parties signed the Agreement on the Termination of
Acting-in-Concert Agreement and other documents respectively through which Mr. Ma Yun will no
longer be the Actual Controller and the Company will have no Actual Controller. Before the above equity
change the Actual Controller of the Company was Mr. Ma Yun.
(2) According to the Proposal on Investment in the Establishment of Wholly-owned Subsidiary for
Land Auction and Project Construction and Development adopted at the 7th Meeting of the Eighth Board
of Directors on March 30 2023 the Company intends to invest in the establishment of a wholly-owned
subsidiary (hereinafter referred to as the project company) with a registered capital of no less than
RMB200 million to participate in the auction of land and carry out project construction and development
for the construction and development of the (proposed) project of the Company's headquarters in Jiangsu.The investment amount of the project will be RMB620 million. During the construction and development
of the project company the Company will consider inviting partners such as CDH Fund to participate in
the project and opening more than 20% of equity interest in the project company to such partners.
220 / 2442022 Annual Report
(3) As of the approval date of the financial statements the Company and its subsidiaries have not yet
completed the final settlement and payment of income taxes for 2022.XVI. Other Significant Events
1. Correction of accounting errors in the previous period
(1). Retrospective restatement
□Applicable √Not Applicable
(2). Prospective application
□Applicable √Not Applicable
2. Debt restructuring
□Applicable √Not Applicable
3. Asset replacement
(1). Exchange of non-monetary assets
□Applicable √Not Applicable
(2). Exchange of other assets
□Applicable √Not Applicable
4. Annuity plan
□Applicable √Not Applicable
5. Discontinued operations
□Applicable √Not Applicable
6. Segment information
(1). Basis for determining reporting segments and accounting policies
√Applicable □Not Applicable
The Company determines the reporting segment based on its internal organizational structure
management requirements and internal reporting system and takes the industry segment as the basis to
determine the reporting segment. The operating performance of software business commercial business
property management in the science park and commercial service business shall be assessed respectively.Assets and liabilities commonly used in all segments are distributed among different segments according
to the scale.The Company determines the reporting segments based on the regional segments. The revenue from
and cost of principal businesses are divided by the place where the sales are finally realized and the assets
and liabilities are divided by the place where the operating entity is located.
(2). Financial information of reportable segments
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Mainland China Overseas Inter-segment Total
offset
221 / 2442022 Annual Report
Revenue from 6261624358.20 235974753.55 6497599111.75
principal businesses
Cost of principal 1679118790.60 39015316.40 1718134107.00
businesses
Total assets 12062693994.15 941884304.52 13004578298.67
Total liabilities 5359406676.49 170710407.46 5530117083.95
Industry division
Unit: Yuan Currency: RMB
Property Inter-
Investment
Item Software management of segment Total
management
science park offset
Revenue from 6483114030.92 14485080.83 6497599111.75
principal
businesses
Cost of 1714798490.40 3335616.60 1718134107.00
principal
businesses
Total assets 11405784630.99 544624843.57 1054168824.11 13004578298.67
Total 4842477471.51 323457762.86 364181849.58 5530117083.95
liabilities
(3). Explanation shall be given if the Company has no reportable segments or cannot disclose total
assets and total liabilities of reportable segments
□Applicable √Not Applicable
(4). Other Description
□Applicable √Not Applicable
7. Other significant transactions and events affecting investors' decisions
√Applicable □Not Applicable
According to the relevant provisions of the Provisional Regulations of the People’s Republic of China
on Land Appreciation Tax the land appreciation tax shall be paid at four-level progressive rates i.e. the
tax rate is 30% when the appreciation volume is less than 50% of the amount deducted; the tax rate is 40%
when the appreciation volume is more than 50% and less than 100% of the amount deducted; the tax rate
is 50% when the appreciation volume is more than 100% and less than 200% of the amount deducted; the
tax rate is 60% when the appreciation volume is more than 200% of the amount deducted. The sale of
ordinary standard residential buildings with an appreciation volume not exceeding 20% of the amount
deducted is exempt from the land appreciation tax.In addition to paying the land appreciation tax calculated at a withholding rate prescribed by the local
tax bureau Hundsun Science Park a subsidiary of the Company accrued real estate development projects
that have met the relevant prescribed liquidation conditions but have not yet been liquidated as well as
real estate development projects for which sales revenue has been recognized but have not met the relevant
prescribed liquidation conditions based on the difference between the land appreciation tax payable and
that actually paid. As of December 31 2022 the accumulated difference of land appreciation tax accrued
by Hundsun Science Park was RMB305258151.46.
222 / 2442022 Annual Report
8. Others
√Applicable □Not Applicable
Leases
1. The Company as the lessee
(1) Information related to the right-to-use assets is detailed in Note VII.25 to the financial statements;
(2) The Company's accounting policies for short-term leases and leases of low-value assets are
detailed in Note V.42 to the financial statements. The amount of expenses for short-term leases and low-
value asset leases charged to the current profit or loss is as follows:
Unit: Yuan Currency: RMB
Item During the period During the corresponding period
last year
Short-term lease expenses 31096459.86 35696783.16
Total 31096459.86 35696783.16
(3) Current profit or loss and cash flow related to leases
Unit: Yuan Currency: RMB
Item During the period During the corresponding period
last year
Interest expenses on lease liabilities 1948604.73 637194.89
Variable lease payments not
charged to the measurement of lease
liabilities but to the current profit
and loss
Income from subletting the right-to-
use assets
Total cash outflows related to leases 47471924.09 47182565.08
Profit and loss related to sale and
leaseback transactions
(4) The maturity analysis of lease liabilities and the corresponding liquidity risk management are
detailed in Note X to the financial statements.
2. The Company as the leaser
Operating lease
(1) Lease income
Unit: Yuan Currency: RMB
During the corresponding period
Item During the period
last year
Lease income 4022095.21 3349682.46
(2) Operating lease assets
Unit: Yuan Currency: RMB
Item Closing balance Closing balance of the previous
year
Investment properties 139546030.07 127524968.93
Sub-total 139546030.07 127524968.93
223 / 2442022 Annual Report
XVII. NOTES TO MAIN ITEMS IN THE PARENT COMPANY'S FINANCIAL STATEMENTS
1. Accounts receivable
(1). Disclosure by aging
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Aging Closing book balance
Within 1 year
Including: Sub-items within 1 year
Within 1 year 483502928.36
Sub-total within 1 year 483502928.36
1-2 years 161834598.94
2-3 years 58582279.63
Over 3 years 124617538.81
Total 828537345.74
224 / 2442022 Annual Report
(2). Disclosure by category by means of allowance for bad debts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Book balance Allowance for bad debts Book balance Allowance for bad debts
Class
Proportion Proportion Carrying value Proportion Proportion Carrying value
Amount Amount Amount Amount
(%)(%)(%)(%)
Allowance for
bad debts made
36890350.004.4536890350.00100.0039136044.005.5539136044.00100.00
on an
individual basis
Including:
Amount of
other software 36890350.00 4.45 36890350.00 100.00 39136044.00 5.55 39136044.00 100.00
services
Allowance for
bad debts made
791646995.7495.55141821803.0317.91649825192.71666101565.0594.45108385566.3516.27557715998.70
on a collective
basis
Including:
Aging portfolio 740966745.48 89.43 141821803.03 19.14 599144942.45 645337176.00 91.51 108385566.35 16.80 536951609.65
Grouped by
related party
transactions in
50680250.266.1250680250.2620764389.052.9420764389.05
the
consolidation
scope
Total 828537345.74 / 178712153.03 / 649825192.71 705237609.05 / 147521610.35 / 557715998.70
Provision for bad debts is accrued on an individual basis:
√Applicable □Not Applicable
Unit: RMB Currency: RMB
Closing balance
Name
Book balance Allowance for bad debts Provision (%) Reasons
225 / 2442022 Annual Report
Amount of other software services 36890350.00 36890350.00 100 Expected difficulty in collection
Total 36890350.00 36890350.00 100 /
Allowance for bad debts made on an individual basis:
□Applicable √Not Applicable
226 / 2442022 Annual Report
Allowance for bad debts made on a collective basis:
√Applicable □Not Applicable
Item for which allowance was made on a collective basis: grouped by aging
Unit: Yuan Currency: RMB
Closing balance
Name
Accounts receivable Allowance for bad debts Provision (%)
Within 1 year 451802636.70 22590131.84 5.00
1-2 years 143479598.06 14347959.81 10.00
2-3 years 58286856.20 17486056.86 30.00
Over 3 years 87397654.52 87397654.52 100.00
Total 740966745.48 141821803.03 19.14
Recognition criteria and description of allowance for bad debts made on a collective basis:
√Applicable □Not Applicable
Item Grouping basis Expected credit loss calculation method
A table of aging of accounts receivable and lifetime
expected credit loss rates is prepared and the expected
Accounts receivable - credit loss is calculated with reference to historical
Aging
grouped by aging credit loss experience in consideration of current
conditions and expectations of future economic
conditions.Item for which allowance was made on a collective basis: Grouped by related party transactions in the
consolidation scope
Unit: Yuan Currency: RMB
Closing balance
Name
Accounts receivable Allowance for bad debts Provision (%)
Shanghai Genus 22000000.00
Hundsun Ayers 7508815.80
Cloudyee Network 5571014.91
Shanghai Gildata 5447725.42
Jinrui Software 5448754.74
Hangzhou Business 2839999.93
Intelligence
Hundsun iBontal 605645.16
Hundsun HK 392500.49
Jingteng Network 344414.40
Yunyong Network 326208.04
Cloudbroker Network 132007.20
Hangzhou Beiying 20000.00
Hundsun Science Park 13100.00
Japan Hundsun 30064.17
Total 50680250.26
Recognition criteria and description of allowance for bad debts made on a collective basis:
√Applicable □Not Applicable
Item Grouping basis Expected credit loss calculation method
The expected credit loss is calculated with reference to
Accounts receivable - grouped historical credit loss experience in consideration of
by related party transactions in Nature current conditions and expectation of future economic
the consolidation scope conditions and based on the default risk exposure and
lifetime expected credit loss rate.
227 / 2442022 Annual Report
If bad debt reserves are accrued according to the general model of expected credit losses please refer to
other receivables for disclosure:
□Applicable √Not Applicable
(3). Allowance for bad debts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Change during the current period
Opening
Class Recovered or Write-off or Other Closing balance
balance Provision
reversed cancellation changes
Allowance
for bad
debts made
39136044.00-2245694.0036890350.00
on an
individual
basis
Allowance
for bad
debts made
108385566.3533436236.68141821803.03
on a
collective
basis
Total 147521610.35 33436236.68 -2245694.00 178712153.03
The significant amount of provision reversal and recovery of bad debts in the current period:
□Applicable √Not Applicable
(4). Actual accounts receivable written off in the current period
□Applicable √Not Applicable
Write-off of significant account receivables
□Applicable √Not Applicable
(5). Top five account receivables according to closing balances grouped by the debtor
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Proportion in the total
Closing balance of
Company name Closing balance closing balance of
allowance for bad debts
accounts receivable (%)
Customer 1 22000000.00 2.66
Customer 2 19815305.95 2.39 2150508.84
Customer 3 19463060.99 2.35 2013722.05
Customer 4 15277013.63 1.84 2183572.19
Customer 5 10681417.62 1.29 629070.88
Total 87236798.19 10.53 6976873.96
(6). Accounts receivable derecognized due to the transfer of financial assets
□Applicable √Not Applicable
228 / 2442022 Annual Report
(7). Amount of assets or liabilities due to the transfer of accounts receivable and continuing
involvement
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
2. Other receivables
Items
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Closing balance Opening balance
Other receivables 37275271.21 66212431.56
Total 37275271.21 66212431.56
Other notes:
□Applicable √Not Applicable
Interest receivable
(1). Classification of interest receivable
□Applicable √Not Applicable
(2). Significant overdue interest
□Applicable √Not Applicable
(3). Allowance for bad debts
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
Dividend receivables
(1). Dividend receivables
□Applicable √Not Applicable
(2). Significant dividends receivable with the aging over 1 year
□Applicable √Not Applicable
(3). Allowance for bad debts
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
Other receivables
(1). Disclosure by aging
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Aging Closing book balance
Within 1 year
Including: Sub-items within 1 year
Within 1 year 26374222.97
Sub-total within 1 year 26374222.97
1-2 years 9052914.60
229 / 2442022 Annual Report
2-3 years 2236878.85
Over 3 years 13133815.35
Total 50797831.77
(2). Classified by nature of accounts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Nature Closing book balance Opening book balance
Deposits 27852394.94 24757254.20
Current and settlement accounts 10511345.71 45472539.58
Imprest fund 9884433.98 8584754.80
Others 2549657.14 128129.60
Total 50797831.77 78942678.18
(3). Provision for bad debts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Stage 1 Stage 2 Stage 3
Expected credit loss Expected credit loss
Expected credit
Allowance for bad debts within the whole within the whole Total
losses for the
duration (not credit- duration (credit-
next 12 months
impaired) impaired)
Balance on January 1 2022 900212.53 286464.33 11543569.76 12730246.62
Balance as at January 1
2022 is in the current
period.- Be transferred to Stage 2 -271215.88 271215.88
- Be transferred to Stage 3 -56901.93 56901.93
- Be transferred back to
Stage 2
- Be transferred back to
Stage 1
Provision in the current
534721.1441653.47215939.33792313.94
period
Reversal in the current
period
Write-off in the current
period
Cancellation in the current
period
Other changes
Balance as at December
1163717.79542431.7511816411.0213522560.56
312022
Notes on significant changes in the carrying amount of other receivables for which changes in the
allowance for losses occurred during the current period:
□Applicable √Not Applicable
Amount of allowance for bad debts for the current period and basis for evaluating whether the credit risk
of financial instruments increases significantly:
□Applicable √Not Applicable
230 / 2442022 Annual Report
(4). Provision for bad debts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Change during the current period
Opening Closing
Class Recovered Write-off or Other
balance Provision balance
or reversed cancellation changes
Allowance for bad
debts made on a 12730246.62 792313.94 13522560.56
collective basis
Total 12730246.62 792313.94 13522560.56
The significant transfers or reversals with allowance for bad debts during the current period:
□Applicable √Not Applicable
(5). Other receivables written off in the current period
□Applicable √Not Applicable
(6). Other receivables with top five closing balances collected as per the borrowers
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Proportion in
the total
closing Closing balance
Company
Nature Closing balance Aging balance of of allowance
name
other for bad debts
receivables
(%)
Entity 1 Deposits 7771000.00 Over 3 years 15.30 7771000.00
Including
RMB1303618.44 with an
age of 1 year
RMB364868.48 with an
Settlement
Entity 2 3744601.41 age of 1 to 2 years 7.37
accounts
RMB1027082.66 with an
age of 2 to 3 years and
RMB1049031.83 with an
age of over 3 years
Entity 3 Deposits 1711300.41 Over 3 years 3.37 1711300.41
Settlement
Entity 4 2685827.15 1-2 years 5.29
accounts
Entity 5 Deposits 1250000.00 Over 3 years 2.46 1250000.00
Total / 17162728.97 / 33.79 10732300.41
(7). Accounts receivable involving government subsidies
□Applicable √Not Applicable
(8). Other receivables derecognized due to transfer of financial assets
□Applicable √Not Applicable
(9). Assets and liabilities formed by other accounts receivable transfers and continuous involvement
□Applicable √Not Applicable
Other notes:
□Applicable √Not Applicable
231 / 2442022 Annual Report
3. Long-term equity investments
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Carrying value Book balance Carrying value
provision provision
Investment in
3123351629.21303280284.412820071344.802758321839.55262249246.662496072592.89
subsidiaries
Investment in
associates
910564590.7492704614.04817859976.70839073663.56104190614.26734883049.30
and joint
ventures
Total 4033916219.95 395984898.45 3637931321.50 3597395503.11 366439860.92 3230955642.19
232 / 2442022 Annual Report
(1). Investments in subsidiaries
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Provision for
Increase in the current Decrease in the current Closing balance of
Investee Opening balance Closing balance impairment during the
period period impairment provision
period
Cloud 115198302.00 115198302.00
Investment
Wuxi Henghua 15814000.00 15814000.00
Data Security 10383589.00 10383589.00
Jinrui Software 50401551.20 50335998.38 100737549.58
Beijing 12371794.80 3813823.69 16185618.49
Qiantang
Shanghai Yirui 700000.00 700000.00
Japan Hundsun 2960123.04 2960123.04
Shanghai 47547500.00 47547500.00 41169916.78
Liming
Shanghai 92978556.73 50590548.64 143569105.37
Gildata
Hangzhou 20000000.00 20000000.00
Yunhui
Cloudwing 312000000.00 194000000.00 506000000.00
Network
Securities 30000000.00 30000000.00 23072212.58
Investment
Network
Cloudyee 28788820.80 2518438.01 31307258.81
Network
Yunyong 12000000.00 12000000.00
Network
Cloudbroker 43260013.60 1459779.45 44719793.05
Network
Yunlian 12600000.00 12600000.00 6947361.53
Network
233 / 2442022 Annual Report
Shanshang 12600000.00 12600000.00
Network
Wengine 8750000.00 8750000.00
Network
Hangzhou 10088894.00 107880.29 10196774.29
Yima
Intercontinental 53194000.00 53194000.00
Holdings
Guangdong 300000.00 300000.00
Institute of
Finance
Hangzhou 62025389.51 62025389.51
Xinglu
Hangzhou 67083948.28 44173295.30 111257243.58
Business
Intelligence
Hundsun 853678200.00 853678200.00 164489250.55
International
Technologies
Hundsun 154790717.70 154790717.70
Holdings
Shengtian 2342983.20 2284102.69 4627085.89
Network
Zhigu Network 18723460.40 18723460.40 6473762.09
Jingteng 62104736.40 2955812.78 65060549.18
Network
Wuxi Xinglu 15059296.20 15059296.20
IHS Markit 47481230.00 757357.66 48238587.66
Hundsun 22184900.00 256570.18 22441470.18
Science Park
Nanjing 180000000.00 180000000.00
Xingcheng
BusinessMatrix 79556543.95 259987.49 79816531.44 51591478.88 61127780.88
Shanghai 88161983.84 88161983.84
Genus
234 / 2442022 Annual Report
Xunchang 35000000.00 35000000.00
Wendao
Hundsun 100052500.00 100052500.00
iBontal
Shanghai 50183804.90 50183804.90
Dworld
Nanjing 27955000.00 27955000.00
Xingding
Hangzhou 1000000.00 1000000.00
Hengshu
Digital 70000000.00 70000000.00
Intelligence
Qiyuan
Jiaocha 3600000.00 3600000.00
Information
Total 2758321839.55 428113594.56 63083804.90 3123351629.21 51591478.88 303280284.41
(2). Investments in associates and joint ventures
√Applicable □Not Applicable
Unit: 10000 yuan Currency: RMB
Changes in the current period
Investment
Closing
profit or Other Cash
Opening Decrease Other Closing balance of
Investor Increase in loss comprehensive dividends Impairment
balance in changes in Others balance impairment
investment recognized income and profits provision
investment equity provision
by equity adjustments declared
method
I. Joint ventures
Sub-total
II. Associates
235 / 2442022 Annual Report
Ant (Hangzhou)
Funds Sales Co. 25650.66 13219.53 20.24 38890.43
Ltd.Hangzhou Baiyong
Shiji Technology 3554.16 2450.00 310.10 1414.26
Co. Ltd.Shenzhen
Tradeblazer
4456.71245.05448.324253.444132.51
Technology Co.Ltd.Hangzhou Rongdu
Science &
698.02-242.79-6.28448.951647.27
Technology Co.Ltd.Zhejiang Santan
Technology Co. 1152.49 -852.78 299.71
Ltd.Hangzhou
Hundsun Yuntai
Network 2194.45 -1882.63 933.24 1245.06
Technology Co.Ltd.Guangdong Yuecai
Internet Finance 471.30 6.42 477.72
Co. Ltd.Beijing Hongtian
Rongda
Information 235.09
Technology Co.Ltd.Golden State
Investment 2873.41 158.30 3031.71
Services Co. Ltd.Shenzhen
1458.92-47.531411.393255.59
Ricequant
236 / 2442022 Annual Report
Technology Co.Ltd.Fujian Trading
Market Registration
733.36-36.35697.01
and Settlement
Center Co. Ltd.Hundsun Cloud
Financing Network
941.56-129.32791.251603.49
Technology Co.Ltd.Hangzhou Fupu
Gongjin Investment 2742.64 -22.31 2720.33
Partnership (L.P.)
Hangzhou
HISOME Digital
Equipment 3050.08 642.64 -15.46 314.20 3363.06
Technology Co.Ltd.Jiangxi Lianjiaoyun
Registration and
155.1815.9454.00117.12
Settlement Center
Co. Ltd.Guangdong Yuecai
Net Small Loan
2195.6099.222294.82
Microfinance Co.Ltd.Shanghai
Leanwork
Financial 635.48 1275.00 -1148.60 -509.08
Information Service
Co. Ltd.Hangzhou
Wanming Digital
488.05375.002.02-115.07
Technology Co.Ltd.
237 / 2442022 Annual Report
Beijing Hezhi
Xingtu Technology 1835.01 1835.01
Co. Ltd.Hangzhou Eceyes
Internet Financial 2573.25 158.34 2731.59
Co. Ltd.Hangzhou National
Software Industry 231.96 -23.65 208.31
Base Co. Ltd.Zhejiang Institute
of Modern Capital 2.89 2.89
and Industry
Beijing
Tongchuang
Yongyi
1384.02-68.751315.27
Technology
Development Co.Ltd.Shanghai Qianyun
Information
465.01-14.68450.33
Technology Co.Ltd.Databaker (Beijing)
Technology Co. 564.54 -60.08 77.85 582.31
Ltd.Shanghai
Yitongtou
1311.13-319.933.18994.38
Technology Co.Ltd.Nanjing Pengxi
Equity Investment 11668.43 -397.80 126.77 11397.40
Center (L.P.)
Sub-total 73488.31 4100.00 10758.96 1930.79 816.52 -1148.60 -624.15 81785.99 9270.46
Total 73488.31 4100.00 10758.96 1930.79 816.52 -1148.60 -624.15 81785.99 9270.46
238 / 2442022 Annual Report
4. Revenue and cost of sales
(1). Revenue and cost of sales
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Amount incurred in the current Amount incurred in the previous
Item period period
Revenue Cost Revenue Cost
Main business 5282764182.96 1419387363.28 4519733092.73 1280745652.91
Other businesses 29298053.38 785048.15 20680988.09 447250.64
Total 5312062236.34 1420172411.43 4540414080.82 1281192903.55
(2). Revenue from contracts
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Classification of contract Segment Total
By type of product
Software 5308492010.55 5308492010.55
By operating regions
Domestic 5308492010.55 5308492010.55
By time of transfer of goods
Revenue recognized at a certain time 3925687761.04 3925687761.04
point
Revenue recognized within a certain 1382804249.51 1382804249.51
period of time
Total 5308492010.55 5308492010.55
Breakdown of revenue from contracts:
□Applicable √Not Applicable
(3). Contract performance obligations
√Applicable □Not Applicable
The Company's revenue mainly comes from sales of self-made and customized software software
services and outsourced goods as well as property management in the science park. Sales of self-made
and customized software and outsourced goods are performance obligations to be performed at a certain
time point and the revenue shall be recognized when the products are delivered to the customer and the
customer obtains control of the products. Software services and property management in the science park
are performance obligations to be performed within a certain time period and the revenue shall be
recognized in accordance with the performance progress.
(4). Apportionment to remaining performance obligations
□Applicable √Not Applicable
Other notes:
The revenue recognized in the opening carrying value of contract liabilities during the current period
was RMB1910242170.81.
5. Investment income
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
239 / 2442022 Annual Report
Amount incurred in the current Amount incurred in the
Item
period previous period
Income from long-term equity investments
42962648.6860497500.00
calculated by the cost method
Income from long-term equity investments
107589749.4790518351.65
calculated by the equity method
Investment income from the disposal of
7190947.9420732708.91
long-term equity investments
Investment income from holding held-for-
72466627.7756045308.23
trading financial assets
Investment income from disposal of held-
33301351.4137710964.56
for-trading financial assets
Total 263511325.27 265504833.35
6. Others
√Applicable □Not Applicable
R&D expenses
Unit: Yuan Currency: RMB
Item Amount incurred in the current Amount incurred in the previous
period period
Employee compensation 1673921614.90 1432390117.14
Share-based payment 57262604.26 48176369.19
Technology development costs 155004049.15 187488105.20
Communication expenses 45484055.68 54732886.58
Travel expenses 33663353.04 51359608.68
Depreciation and amortization 33612154.15 27768520.46
Vehicle expenses 3811311.35 4249187.86
Office expenses 1160159.41 4522430.16
Intermediary fees 954767.21 657361.05
Business expenses 57346.31 297150.23
Total 2004931415.46 1811641736.55
XVIII. Supplementary information
1. Breakdown of current non-recurring profit or loss
√Applicable □Not Applicable
Unit: Yuan Currency: RMB
Item Amount .Profit or loss from disposal of non-current assets 5326551.07
Tax return or relief under ultra vires approval or
without formal approval documents
Government grants charged to the current profit
Mainly represented the
or loss (other than those closely related to
51728213.87 government grants for
corporate business and granted based on a fixed
special projects
amount or a fixed quantity unified by the state)
Payment for the use of state funds included in
the current profit and loss and collected from
non-financial business
Income arising from the fair value of net
identifiable assets of the investee the enterprise
should enjoy when the cost of investment it
acquired from the subsidiaries associates and
joint ventures was less than the investment it
obtained
240 / 2442022 Annual Report
Non-monetary assets exchange profit and loss
Profits and losses on the assets by entrusting
others to invest or manage
Each provision for the impairment of assets
withdrawn due to force majeure factor say
suffering from a natural disaster
Debt restructuring profits and losses
Enterprise restructuring charges such as the
staffing expenditures and integrating expenses
Profit and loss of the part exceeding the fair
value arising from the transaction with the
bargain price losing fairness
Net current profit and loss of the subsidiary
acquired in business combination involving
entities under common control from the
beginning of the period to the combination date
Profits and losses arising from contingencies
irrelevant to the Company’s normal business
operation
Profit or loss from changes in the fair value
generated from the Company's held-for-trading Mainly represented the profit
and derivative financial assets and held-for- and loss from the changes in
trading and derivative financial liabilities and the fair value generated from
investment income from the disposal of held- the Company's held-for-
-112295096.37
for-trading and derivative financial assets held- trading financial assets and
for-trading and derivative financial liabilities the investment income from
and other debt investments except for effective the disposal of the held-for-
hedging business related to the Company's trading financial assets
normal business
Reversal of depreciation reserves of receivables
and contractual assets under independent 1015200.00
impairment assessment
Profits and losses acquired from externally
entrusted loans
Profits and losses arising from changes in the
fair value of investment real estates by using the
fair value model for subsequent measurement
Influence made by the one-off adjustment of the
current profit and loss according to requirements
of tax revenue and accounting laws and
regulations on the current profit and loss
Trustee fee income achieved from the entrusted
management
Other non-operating income and expenses other
615168.56
than the above
Other profits or losses that belong to non-
recurring profits and losses
Less: Effect on income tax 154540.63
Effect on minority interests -433722.03
Total -53330781.47
Reasons shall be given with respect to the Company classifying the non-recurring profit and loss items
defined and listed in the Explanatory Notice on Information Disclosure of Companies with Public
Offering No. 1-Non-recurring Profit and Loss as recurring profit and loss items.□Applicable √Not Applicable
241 / 2442022 Annual Report
2. Return on net assets and earnings per share
√Applicable □Not Applicable
Weighted average Earnings per share
Profit during the Reporting Period
ROE (%) Basic EPS Diluted EPS
Net profit attributed to ordinary
17.360.570.57
shareholders of the Company
Net profit attributed to ordinary
share holders of the Company
18.210.600.60
after deducting non-recurring
profits and losses
3. Differences in accounting data between domestic and overseas accounting standards
□Applicable √Not Applicable
4. Others
√Applicable □Not Applicable
1. Calculation of weighted average ROE
Unit: Yuan Currency: RMB
Item S/N During the period
Net profit attributed to ordinary shareholders of the Company A 1091088379.58
Non-recurring profit and loss B -53330781.47
Net profit attributable to shareholders of ordinary shares net of non-
C=A-B 1144419161.05
recurring profit or loss
Opening net assets attributable to shareholders of ordinary shares of the
D 5695031051.05
Company
Net assets attributable to shareholders of ordinary shares of the
Company increased due to offering of new shares or conversion of debts E
into shares
Number of months from the next month following the increase up to the
F
end of the Reporting Period
Net assets attributable to shareholders of ordinary shares of the
G 146148654.00
Company decreased due to share repurchase or reduced cash dividends
Number of months from the month following the decrease in net assets
H 4
up to the end of the Reporting Period
Other changes in owners' equity arising from associates
I1 14199203.73
other than net profit or loss and profit distribution
Number of months from the month following the
increase or decrease in net assets up to the end of the J1 2、6
Reporting Period
Others - Other changes held by Company’s
shareholding platform in the ownership interests of
subsidiaries within the scope of the Company’s I2 22202726.28
consolidation for the period other than net profit or loss
Others
and profit distribution
Number of months from the month following the
increase or decrease in net assets up to the end of the J2 6
Reporting Period
Others - Changes in treasury shares arising from
I3 -31578947.00
repurchase obligations
Number of months from the month following the
increase or decrease in net assets up to the end of the J3
Reporting Period
242 / 2442022 Annual Report
Other-Changes in owner's equity arising from share-
I4 157255645.79
based payments
Number of months from the month following the
increase or decrease in net assets up to the end of the J4 6
Reporting Period
Other-Share repurchase under the Employee Stock
I5 -97796922.70
Ownership Scheme
Number of months from the month following the
increase or decrease in net assets up to the end of the J5 0、2、3、6、7、8
Reporting Period
Others-Contributions by employees under the
J6 35313750.00
Employee Stock Ownership Scheme
Number of months from the month following the
increase or decrease in net assets up to the end of the I6 4、5
Reporting Period
Others-Changes arising from changes in owners' equity
J6 29783533.60
shares of subsidiaries but still controlling subsidiaries
Number of months from the month following the
increase or decrease in net assets up to the end of the I7 0、2、3、5、8、11
Reporting Period
Others-Changes in the fair value of other debt
J7 -2558936.35
investments
Number of months from the month following the
increase or decrease in net assets up to the end of the I8 6
Reporting Period
Including: Foreign currency translation difference in
I9 44970220.51
the statements
Number of months from the month following the
increase or decrease in net assets up to the end of the J9 6
Reporting Period
Number of months during the Reporting Period K 12
L= D+A/2+ E×F/K-
Weighted average net assets 6285348987.11
G×H/K±I×J/K
Weighted average ROE M=A/L 17.36%
Weighted average ROE net of non-recurring profit and loss N=C/L 18.21%
2. Calculation of basic earnings per share and diluted earnings per share
Unit: Yuan Currency: RMB
243 / 2442022 Annual Report
Item S/N During the period
Net profit attributed to ordinary shareholders of the Company A 1091088379.58
Non-recurring profit and loss B -53330781.47
Net profit attributable to shareholders of ordinary shares net of non-
C=A-B 1144419161.05
recurring profit or loss
Total number of shares at the beginning of the period D 1461144040
Number of shares increased due to the capitalization of capital
E 438445962
reserves or the distribution of shares and dividends
Number of shares increased due to new shares issuance or conversion
F 1642500
of debt to capital
Number of months from the month following the increase of shares
G 4
to the end of the Reporting Period
Decrease in the number of shares due to repurchase H 2497957
Number of months from the month following the increase in shares
I 0、2、3、6、7、8
up to the end of the Reporting Period
Decrease in the number of shares during the Reporting Period J
Number of months during the Reporting Period K 12
Weighted average number of outstanding ordinary shares L=D+E+F×G/K-H×I/K-J 1899342387.75
Basic EPS M=A/L 0.57
Basic earnings per share net of non-recurring profit and loss N=C/L 0.60
The calculation of diluted earnings per share is the same as that of basic earnings per share.Chairman: Liu Shufeng
Submission date for approval of the Board: March 30 2023
Revision Information
□Applicable √Not Applicable
□Applicable √Not Applicable
